IT Strategy Challenges
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The document discusses the transformative role of information technology (IT) in various sectors, particularly highlighting its impact on the automotive industry, where vehicles are becoming 'computers on wheels.' It emphasizes the need for organizations to shift their focus from merely managing IT as a cost center to recognizing it as a crucial driver of innovation and business transformation. The authors argue that successful integration of IT requires a balanced approach to innovation and implementation, fostering shared responsibility between business and IT leaders.
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IT Strategy Challenges
- 1. Winning with Information Technology in the Network EraProfessor N. VenkatVenkatramanDavid J. McGrath Jr. Professor of ManagementOctober 19, 2009
- 2. Discussion Overview2©2009: N. Venkatraman1324
- 3. IT is everywhere© 2009: N. Venkatraman3
- 4. And could influence even more in the future….© 2009: N. Venkatraman4
- 5. And change the geography of work© 2009: N. Venkatraman5
- 7. Why am I so bullish on IT?© 2009: N. Venkatraman7
- 8. Take the three I.T. ‘laws’ together..© 2009: N. Venkatraman8
- 9. The Scope of IT extends beyond processes© 2009: N. Venkatraman9
- 10. A working framework to understand the scope of IT© 2009: N. Venkatraman10BandwidthLawMetcalfe’sLawTechnologyDomainMoore’sLawProcessProductServiceBusinessDomain
- 11. Discussion Overview11© 2009: N. Venkatraman1324
- 12. Focus of IT Strategy© 2009: N. Venkatraman12
- 13. Accelerated Pace of Innovation© 2009: N. Venkatraman13
- 14. Sketching out the possibilities…© 2009: N. Venkatraman14IBM, 2005
- 15. Sketching out the possibilities…© 2009: N. Venkatraman15IBM, 2005
- 16. Sketching out the possibilities…© 2009: N. Venkatraman16IBM, 2005
- 17. Sketching out the possibilities…© 2009: N. Venkatraman17IBM, 2005
- 18. Sketching out the possibilities…© 2009: N. Venkatraman18IBM, 2005
- 19. Sketching out the possibilities…© 2009: N. Venkatraman19IBM, 2005
- 20. Sketching out the possibilities…© 2009: N. Venkatraman20IBM, 2005
- 21. Sketching out the possibilities…© 2009: N. Venkatraman21IBM, 2005
- 22. Sketching out the possibilities…© 2009: N. Venkatraman22IBM, 2005
- 23. Sketching out the possibilities…© 2009: N. Venkatraman23IBM, 2005
- 24. GM OnStar© 2009: N. Venkatraman24
- 25. Business Implications:Auto Sector as a Case in Point© 2009: N. Venkatraman25
- 26. IT Strategy in the Auto Sector© 2009: N. Venkatraman26
- 27. Automobile– “computers on wheels”© 2009: N. Venkatraman27“Cost of electronicsin cars” (~20--50%)
- 28. Automobile– “computers on wheels”© 2009: N. Venkatraman28‘Black Box’Lines of Software Code
- 29. OnStar’s impact is broader than the core service domain© 2009: N. Venkatraman29
- 30. Microsoft’s Role in Automotive30© 2009: N. Venkatraman
- 31. Ford (and Microsoft): Sync© 2009: N. Venkatraman31
- 32. Business transformation underway…© 2009: N. Venkatraman32Source: GM
- 33. Management ideas for network era20th Century21st Century33© 2009: N. Venkatraman
- 34. Computer industry [circa 1980]Source: Bill Gates Testimony Source: Bill Gates Testimony34© 2009: N. Venkatraman
- 35. Computer industry [circa 2002]Source: Bill Gates Testimony 35© 2009: N. Venkatraman
- 36. We can apply the same logic in many sectors…..© 2009: N. Venkatraman36
- 37. Discussion Overview© 2009: N. Venkatraman132437
- 38. Value from IT ResourcesInnovationStrategicFocusCostCenterImplementationBusinessIT/ISLeadership Responsibility38© 2009: N. Venkatraman
- 39. Cost Center© 2009: N. Venkatraman39
- 40. Value from IT ResourcesInnovationStrategicFocusCostCenterProfitCenterImplementationBusinessIT/ISLeadership Responsibility40© 2009: N. Venkatraman
- 41. Profit Center41© 2009: N. Venkatraman
- 42. Value from IT ResourcesInnovationGrowthCenterStrategicFocusCostCenterProfitCenterImplementationBusinessIT/ISLeadership Responsibility42© 2009: N. Venkatraman
- 43. Growth Center43© 2009: N. Venkatraman
- 44. Value from IT ResourcesInnovationGrowthCenterInvestmentCenterStrategicFocusCostCenterProfitCenterImplementationBusinessIT/ISLeadership Responsibility44© 2009: N. Venkatraman
- 45. Investment Center45© 2009: N. Venkatraman
- 46. Managing their relative emphasis;and dynamic shiftsInnovationGrowthCenterInvestmentCenterStrategicFocusCostCenterProfitCenterImplementationBusinessIT/ISLeadership Responsibility46© 2009: N. Venkatraman
- 47. There are significant gaps in reality..1TodayDesiredIT Capital for InnovationIT Capital for Implementation47© 2009: N. Venkatraman
- 48. There are significant gaps in reality..2TodayDesiredIT competence for InnovationIT competence for Implementation48© 2009: N. Venkatraman
- 49. There are significant gaps in reality..3TodayDesiredIT Sourcing for InnovationIT Sourcing for Implementation49© 2009: N. Venkatraman
- 50. There are significant gaps in reality..4TodayDesiredIT Performance for InnovationIT Performance for Implementation50© 2009: N. Venkatraman
- 51. There are significant gaps in reality..5TodayDesiredIT Mandate for InnovationIT Mandate for Implementation51© 2009: N. Venkatraman
- 52. Discussion Overview52©2009: N. Venkatraman1324
- 53. Leadership challengesWe say innovation… but we manage for implementationWe say future… but we manage for today (and yesterday)We say business value.. But we get bogged down with IT costsWe say shared business-IT responsibility but we blame IT for the problems© 2009: N. Venkatraman53
- 54. Winning with ITValue creation for today & tomorrowNo business innovations without IT“You”54© 2009: N. Venkatraman
- 55. So….in conclusionIT’s impact beyond traditional process domainWe are in the early stages of transformation with ITBusiness models built on and with IT functionalityBusiness organizations architected with ITContinuous balancing of innovation and implementationMore diffused but coordinated responsibility for IT55© 2009: N. Venkatraman
- 56. © 2009: N. Venkatraman56Winning with IT:Can you make it happen?Thanks very much….