Managing the Networked Enterprise MBA 501 WEEK 4: February 2. The role and importance of BIS and IT management in the enterprise

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1 Managing the Networked Enterprise MBA 501 WEEK 4: February 2 The role and importance of BIS and IT management in the enterprise

2 LECTURE PLAN FEBRUARY 2 Recap last week BIS Management in Today s Enterprise WestJet Case Study February Outcomes Learning outcomes and class dates

3 Where does BIS management fit in the organization and what kind of leaders are needed?

4 What Leaders Need to Consider From marketplace to marketspace Internet for commercial activity over 25 years ago, we ve steadily moved from physical marketplace to the virtual marketspace. Ranges from basic business transactions such as ordering and invoicing to utilizing sophisticated B2B, C2C exchanges and digitalization Social commerce - critically important as businesses are visible in real time. TRUST IS THE NEW CASH!

5 Move from push to pull economy As products, buildings, roads and assets of all types are connected - Internet of Things - IS will be able to make decisions, or at least suggest answers, for us. The modern car, for example, with its inbuilt diagnostic software, can detect when a component needs to be replaced or a maintenance service is required and thus can automatically book an appointment with a garage. With analytics, organizations are able to predict which customers are likely to demand particular products and services. Rather than waiting for an approach from the customer, they seek to influence their demand.

6 Development of open standards Open standards make the interchange and flow of data both easy to achieve technically and seamless to users. While establishing proprietary standards was once a competitive strategy, customer backlash and the negative impact on overall industry growth have confined it to some niche areas. Even competitors are more likely to work together to develop standards for interconnection as they recognize that they too can benefit with market expansion the so called network effects.

7 External, not internal, focus: looking at customers, competitors, suppliers, even other industries and what is happening in the outside world both business and social. Traditionally IS/IT was focused on internal processes and issues. Adding value, not cost reduction: although cost reductions may accrue due to business expansion at reduced marginal costs, doing it better, not cheaper seems to be the maxim.

8 Sharing the benefits: For instance, the introduction of debit cards to replace cheques depended for its success on banks sharing some of the reduced processing costs with the retailers and consumers, since the benefits, mainly cost savings for the banks, depended on the acceptance by retailers and use by consumers. Understanding customers and what they do with the product or service: How they obtain value from it, and the problems they may encounter in gaining that value.

9 Business driven innovation, not technology driven: the pressures of the marketplace drove developments in most cases. On first read, this factor might cast doubt on the idea of competitive advantage from IT but, in practice, it means that new or existing IT provides or enables a business opportunity or idea to be converted into reality. The priority for the business issue to be resolved is paramount: why take two risks at the same time that is, a new way of doing business based on new technology?

10 Incremental development, not the total application vision turned into reality. Many examples show a stepped approach doing one thing and building on and extending the success by a further development. This approach is akin to an agile rather than traditional waterfall approach to application development, which involves clarifying all requirements, defining all boundaries and agreeing the total deliverables of the system before embarking on the expensive process of design and construction, freezing the requirements at each stage. Prototyping applications and piloting their introduction to test how well they perform are integral aspects of agile development approaches and have a key role to play here.

11 Using the information gained from the systems to develop the business. Many online and conventional retailers segment their customers very accurately based on their purchasing patterns and then target promotions and special offers personally, so called mass customization. Product sales and market analysis plus market research information can be merged with customer sentiment data from social media, then recut in many different ways to identify more precise market segments, their shopping patterns and the effectiveness of promotions and new product introductions.

12 Leading Organizations in an Information Age

13 Another aspect of IS/IT in Org s: Culture

14 Checking employee attendance ing the boss Working Looking at Financials Lost signal!

15 Consideration for Managers The networked enterprise is meant to make us more efficient but Does it, or are we just hyper connected and overly informed? Are we moving away from fact based decision models to speculation? What does this mean for our world of work? Works happens between communications Organizations are made up of PEOPLE. Are we becoming alone, together Discussion: What should we think about as emerging managers and leaders when we look at technological integration/ IS in the organization?

16 WestJet Airlines Case Group Discussion

17 Friday February 9 Class Go to website: Review readings, etc. See you next week

18 Reference Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a digital strategy. John Wiley & Sons. Ranjan, P. (2017). Human Resource Management and Organizational Behaviour. Journal of HR, Organizational Behaviour & Entrepreneurship Development, 1(1), 8-12.