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Six IT Decisions Your IT People Shouldn’t Make Team KBS Dwight Abouhalkah Kathy Copeland Aaron Lian Tim Stout Pete Wilhe

Six IT Decisions Your IT People Shouldn’t Make Team KBS Dwight Abouhalkah Kathy Copeland Aaron Lian Tim Stout Pete Wilhelm. April 22, 2006. Adapted from the article written by Jeanne W. Ross and Peter Weill, HBR, November 2002. Senior Management’s Six IT Responsibilities. Strategic

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Six IT Decisions Your IT People Shouldn’t Make Team KBS Dwight Abouhalkah Kathy Copeland Aaron Lian Tim Stout Pete Wilhe

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  1. Six IT Decisions Your IT People Shouldn’t Make Team KBS • Dwight Abouhalkah • Kathy Copeland • Aaron Lian • Tim Stout • Pete Wilhelm April 22, 2006 Adapted from the article written by Jeanne W. Ross and Peter Weill, HBR, November 2002

  2. Senior Management’s Six IT Responsibilities • Strategic • How much should we spend on IT? • Which business processes should receive our IT dollars? • Which capabilities need to be company-wide? • Execution • How good do our IT services need to be? • What security and privacy risks will we accept? • Whom do we blame if an IT initiative fails?

  3. What is the business value of IT? • Many executives don’t know. • Inherent disconnect between executives and IT. • “I can’t manage what I don’t understand.” • In successful firms: executives assure that business strategy drives the level of IT required.

  4. #1How Much Should We Spend on IT? • How much is enough? Does benchmarking help? The 3% rule. • Define the business strategy. • Define the strategic role IT will play in the organization. • Spend the resources required to fulfill the objective. • Red Cross NBCS: Delivering on individual projects…but with no strategic platform.

  5. #2Which Business Processes Should Receive our IT Dollars? • Prioritize initiatives and projects • Consider the strategic significance • Implement simultaneously • Sequence projects • Hershey Foods • Delta Airlines • Tosoh Quartz ERP System

  6. #3Which IT Capabilities Need to be Company-Wide? • What should be centralized and standardized? • Company culture • Specific needs • Cost control • Business unit autonomy • Trade-offs • OHSU – Electronic Medical Records (EMR)

  7. #4How Good do our IT Services Really Need to be? • Cadillac or Buick? • Do we really need gold-plated functionality? • Unused features • Total cost of ownership • Initial cost • Annual operating cost • Lost revenue • OHSU - EMR

  8. #5What Security and Privacy Risks will We Accept? • What level of protection or openness do you want? • What are you willing to spend? • Will it limit functionality or convenience? • Hassle factor! • Yale Privacy Example • ESCO Security Examples

  9. #6Whom do We Blame if an IT Initiative Fails? • Finger pointing • Where’s the real problem? • IT group • The non-IT executive’s management of IT-enabled change • Sponsorship • Ownership of outcomes

  10. Summary • Senior executives can’t abdicate responsibility for these six IT decisions • Collaborate – Involve the right people • BOISE (PeopleSoft & MAXIMO) • The executive suite

  11. Questions ??? Comments ….. Arguments @#*& Conclusions !!!

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