InformationTechnologyManagementLecture3Strategy,PlanningandebusinessInformationSystemsManagementInPractice5E(McNurlin&Sprague)Chapter3&4Introduction“Strategicuse”ofITisdefinedas“havingasignificant,long-termimpactonafirm’sgrowthrate,industry,andrevenue.”Historically,thestrategicuseofIThasfollowedanevolutionfromimprovinginternalprocessesandstructuresofafirm,toimprovingtheproducts,services,andrelationshipswithitscustomers,andthenwithitspartners.Theseevolutionstagesarecharacterizedas:LookinginwardLookingoutwardLookingacrossStrategicUsesofInformationSystemsInternalsystemstoimproveProcessesandStructureIT-BasedproductsandServicesLinkstootherorganisationsLookinginwardLookingforwardLookingacrossIntroductionWhatise-business?Theuseoftelecommunicationsnetworks,particularlytheInternet,toconductbusinesstransactions.Threecategoriesofe-business(seeFigure3.2):Business-to-employee:Intranet-basedapplicationsinternaltoafirmBusiness-to-consumer:Internet-basedapplicationsforafirm’scustomersBusiness-to-business:Extranet-basedapplicationsforafirm’sbusinesspartnersE-BusinessDriversKeyComponentsthathaveacceleratedtheacceptanceofe-business:WideaccesstoapublicnetworkStandardcommunicationprotocolStandarduserinterfaceE-businessapplicationsrunovertheInternet,drasticallyreducingaccessandcommunicationscosts.Withstandardizedcommunicationprotocolsanduserinterfaces,implementationandtrainingcostsarefarlower.Asaresult,amuchbroadersetofusersandfirmshasaccesstothesystems,allowingrapidgrowth.LookingInward:Business-to-EmployeeIntranetsIntranetsareprivatecompanynetworksthatuseInternettechnologiesandprotocols,andpossiblytheInternetitself.BenefitsofusingintranetsWideraccesstocompanyinformationMoreefficientandlessexpensivesystemsdevelopmentDecreasedtrainingManagingIntranetsManagerialconcernsHowtointegratelegacysystemsintotheintranetDecidinghowmuchcontrolofthesystemsshouldbedecentralizedProposedsolutionsCreateacorporateportaltoactasthegatewaytothefirm’sinternalresources,information,andInternetservices.Developseparatedepartmentalordivisionalportals,suchassales,HR,operations,andfinanceportals.LookingOutward:Business-to-ConsumerTheE-BusinessModelRedefiningCustomerValue“Demandingon-demand”:reducesthetimeittakestorespondtocustomerrequestsConvenience:allowsgatheringandmanagingcustomerinformationAccesstoawiderangeofcompetitivepricesandsellersforproductsLookingOutward:Business-to-ConsumerRedesigningRelationshipswithBusinessPartnersE-businessallows:“disintermediation”:bypassingintermediariesbydirectlylinkingcustomerstothemanufacturer.thedevelopmentof“virtualorganizations,”whereafirmdoesnotownpartsofthevaluechain,butrathercontrolsthecoordinationofotherfirmstoappearasasinglefirm.LookingAcross:Business-to-BusinessIThasbeenusedtoreducecostsandtimeofinterorganizationaltransactions,forexample:InterorganizationalSystems(IOS)Reservationsystems,electronicfundstransfersystems,ElectronicDataInterchangeSystems(EDI)ElectronicDataInterchangeSystems(EDI)Transmission,instandardsyntax,ofdataforbusinesstransactionsbetweencomputersofindependentorganizationSupplyChainIntegrationSupplychainincludesprocessessuchas:logistics,procurement,production,anddistributionStrategicoptionsBuild-to-ordermodeofoperationEliminationofintermediariesRedesigntheprocurementprocessIntegrationwithBack-EndSystemsChallengeVarietyofplatformsIncompatibleApproachDatabaseManagementSystems(DBMS)ERPSystemsExtranetTechnicalConsiderationsA.EvolutionoftheInternet:QualityofServiceNextGenerationInternet(NGI)ResearchanddevelopadvancednetworktechnologiesDeployhigh-speedtestbednetworksDevelopanddemonstraterevolutionaryapplicationsthatdemandhigh-speednetworksnotcurrentlyavailableontoday’sinternetUniversityConsortiumforAdvancedInternet(UCAID)Internet2(advancedacademicnetwork)Abilene(supportthedemandsoftheadvancedresearchapplicationsoftheUCAID)TechnicalConsiderationsB.Security-ranksasoneofthetopmanagementandconsumerconcernsC.Dividedintothreecategories:1.Sniffing:interceptionandreadingofelectronicmessagesastheytraveloverthecommunicationnetworksProtection:Encryption(DES,RSA)2.Spoofing:assumptionofafalseidentityandtheexecutionoffraudulenttransactionsProtection:Authentication(RSA)3.Hacking:unauthorizedaccesstoahostcomputerProtection:FirewallLegalandEthicalConsiderationsPrivacyIntellectualPropertyRightsCopyrightsPatentsTrademarksTradeSecretsLegalJurisdictionContentRegulationITStrategyITisastrategicassetthatcanbeusedto:LookoutwardtoincorporateproductsandservicesLookinwardtore-designandcreatenewbusinessprocessesLookacrosstolinkwithotherorganizationsmakepermanentchangesinthenatureofbusinesswithe-businessWhyStrategicIssuesAreImportantAdvancesininformationaffectorganisationmorethananyothertechnicaladvancesInformationtechnologyshiftspowerandinfluencefromgovernmentstoindividualsIToffersgreatopportunityforinnovationinorganisationandbusinessoperationInformationtechnologyispervasiveinmostfirmsPrecedentsareabundantandobvious—organisationsmustnotfallbehindTheCha