IT Strategy Challenges

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Published on October 16, 2009

Author: Venkat101

Source: slideshare.net

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An update of my presentation on IT Strategy Challenges. This is the deck I will use at a Boston University Executive Program on October 19, 2009.

Winning with Information Technology in the Network Era Professor N. VenkatVenkatramanDavid J. McGrath Jr. Professor of Management October 19, 2009

Discussion Overview 2 ©2009: N. Venkatraman 1 3 2 4

IT is everywhere © 2009: N. Venkatraman 3

And could influence even more in the future…. © 2009: N. Venkatraman 4

And change the geography of work © 2009: N. Venkatraman 5

(c) Venkatraman, 2009 Transact 6 Learn Live Innovate Play Consume Connect Work

Why am I so bullish on IT? © 2009: N. Venkatraman 7

Take the three I.T. ‘laws’ together.. © 2009: N. Venkatraman 8

The Scope of IT extends beyond processes © 2009: N. Venkatraman 9

A working framework to understand the scope of IT © 2009: N. Venkatraman 10 BandwidthLaw Metcalfe’sLaw Technology Domain Moore’sLaw Process Product Service Business Domain

Discussion Overview 11 © 2009: N. Venkatraman 1 3 2 4

Focus of IT Strategy © 2009: N. Venkatraman 12

Accelerated Pace of Innovation © 2009: N. Venkatraman 13

Sketching out the possibilities… © 2009: N. Venkatraman 14 IBM, 2005

Sketching out the possibilities… © 2009: N. Venkatraman 15 IBM, 2005

Sketching out the possibilities… © 2009: N. Venkatraman 16 IBM, 2005

Sketching out the possibilities… © 2009: N. Venkatraman 17 IBM, 2005

Sketching out the possibilities… © 2009: N. Venkatraman 18 IBM, 2005

Sketching out the possibilities… © 2009: N. Venkatraman 19 IBM, 2005

Sketching out the possibilities… © 2009: N. Venkatraman 20 IBM, 2005

Sketching out the possibilities… © 2009: N. Venkatraman 21 IBM, 2005

Sketching out the possibilities… © 2009: N. Venkatraman 22 IBM, 2005

Sketching out the possibilities… © 2009: N. Venkatraman 23 IBM, 2005

GM OnStar © 2009: N. Venkatraman 24

Business Implications:Auto Sector as a Case in Point © 2009: N. Venkatraman 25

IT Strategy in the Auto Sector © 2009: N. Venkatraman 26

Automobile– “computers on wheels” © 2009: N. Venkatraman 27 “Cost of electronics in cars” (~20--50%)

Automobile– “computers on wheels” © 2009: N. Venkatraman 28 ‘Black Box’ Lines of Software Code

OnStar’s impact is broader than the core service domain © 2009: N. Venkatraman 29

Microsoft’s Role in Automotive 30 © 2009: N. Venkatraman

Ford (and Microsoft): Sync © 2009: N. Venkatraman 31

Business transformation underway… © 2009: N. Venkatraman 32 Source: GM

Management ideas for network era 20th Century 21st Century 33 © 2009: N. Venkatraman

Computer industry [circa 1980] Source: Bill Gates Testimony Source: Bill Gates Testimony 34 © 2009: N. Venkatraman

Computer industry [circa 2002] Source: Bill Gates Testimony 35 © 2009: N. Venkatraman

We can apply the same logic in many sectors….. © 2009: N. Venkatraman 36

Discussion Overview © 2009: N. Venkatraman 1 3 2 4 37

Value from IT Resources Innovation StrategicFocus CostCenter Implementation Business IT/IS Leadership Responsibility 38 © 2009: N. Venkatraman

Cost Center © 2009: N. Venkatraman 39

Value from IT Resources Innovation StrategicFocus CostCenter ProfitCenter Implementation Business IT/IS Leadership Responsibility 40 © 2009: N. Venkatraman

Profit Center 41 © 2009: N. Venkatraman

Value from IT Resources Innovation GrowthCenter StrategicFocus CostCenter ProfitCenter Implementation Business IT/IS Leadership Responsibility 42 © 2009: N. Venkatraman

Growth Center 43 © 2009: N. Venkatraman

Value from IT Resources Innovation GrowthCenter InvestmentCenter StrategicFocus CostCenter ProfitCenter Implementation Business IT/IS Leadership Responsibility 44 © 2009: N. Venkatraman

Investment Center 45 © 2009: N. Venkatraman

Managing their relative emphasis;and dynamic shifts Innovation GrowthCenter InvestmentCenter StrategicFocus CostCenter ProfitCenter Implementation Business IT/IS Leadership Responsibility 46 © 2009: N. Venkatraman

There are significant gaps in reality.. 1 Today Desired IT Capital for Innovation IT Capital for Implementation 47 © 2009: N. Venkatraman

There are significant gaps in reality.. 2 Today Desired IT competence for Innovation IT competence for Implementation 48 © 2009: N. Venkatraman

There are significant gaps in reality.. 3 Today Desired IT Sourcing for Innovation IT Sourcing for Implementation 49 © 2009: N. Venkatraman

There are significant gaps in reality.. 4 Today Desired IT Performance for Innovation IT Performance for Implementation 50 © 2009: N. Venkatraman

There are significant gaps in reality.. 5 Today Desired IT Mandate for Innovation IT Mandate for Implementation 51 © 2009: N. Venkatraman

Discussion Overview 52 ©2009: N. Venkatraman 1 3 2 4

Leadership challenges We say innovation… but we manage for implementation We say future… but we manage for today (and yesterday) We say business value.. But we get bogged down with IT costs We say shared business-IT responsibility but we blame IT for the problems © 2009: N. Venkatraman 53

Winning with IT Value creation for today & tomorrow No business innovations without IT “You” 54 © 2009: N. Venkatraman

So….in conclusion IT’s impact beyond traditional process domain We are in the early stages of transformation with IT Business models built on and with IT functionality Business organizations architected with IT Continuous balancing of innovation and implementation More diffused but coordinated responsibility for IT 55 © 2009: N. Venkatraman

© 2009: N. Venkatraman 56 Winning with IT:Can you make it happen? Thanks very much….

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