Learning Objectives

• Data – Information – Knowledge – Wisdom

• Characteristics of Information Systems
• Systems Concept: Components, Feedback,
Control, Closed/Open
• Information Technology – Information Systems
• FIT – NIT – EIT
• Why IS/IT Fails? Does IT matters?
• CCR Model
• Selection-Adoption-Exploitation
 IT Projects & Results
• Corporate IT projects- underwhelming results
or been outright failures.
• Catastrophes
• Frustration, delay, and disappointment are all
too common.
 2005 Survey
• By IT consultancy CSC and the Financial
Executives Research Foundation
• 782 American executives responsible for IT
• 50% of the respondents admitted that –
aligning business and IT strategy - was a major
problem.
• The researchers found that 51% of large-scale
IT efforts finished later than expected and ran
over budget.
 2005 Survey…
• Only 10% of companies believed they were
getting high returns from IT investments; 47%
felt that returns were low, negative, or
unknown.
 Discussion
• His main point, is that failure to understand or
appreciate technology is unacceptable.

• Executives need to stop looking at IT projects

as technology installations and start looking at
them as periods of organizational change that
they have a responsibility to manage.
• ….. and
• But managers who distance themselves from
IT abdicate a critical responsibility
….. and
• executives usually operate without a
comprehensive model of what IT does for
companies, how it can affect organizations,
and what managers must do to ensure that IT
initiatives succeed.
 CCR Model
• Capability
• Complementary
• Responsibility
 Enterprise IT has the following
primary capabilities
• Redesigning business processes. Because CVS
employees couldn’t fill prescriptions until they
had completed the two checks in the new
sequence, the revamped fulfillment process
wasn’t just a good idea in theory—CVS
employees had to execute the process in that
particular sequence. EIT gives managers
confidence that employees will execute
processes correctly.
 Enterprise IT….
• Standardizing work flows. Once companies
identify a complementary business process,
they can implement it widely and reliably
along with the EIT. CVS rolled out its new
process in 4,000 outlets across the United
States in less than a year.
 Enterprise IT….
• Monitoring activities and events efficiently.
EITs can allow managers to get an accurate
and up-to-date picture of what’s happening
throughout the enterprise, often in something
close to real time. CVS’s software lets
executives know how many prescriptions are
filled every day in each location, how long it
takes to fill each prescription, and what kinds
of fulfillment problems employees had to
tackle.
 Across the three IT categories, executives have three
tasks

• IT Selection
• IT Adoption
• IT Exploitation
• IT Selection
• IT Implementation: Buy/ Build
• IT Adoption
• IT Acceptance
• IT Exploitation
 IT selection
• The discussion centres on the importance of
clearly understanding the business
requirement first, then the technology
requirement will be clearer.
– Once the company’s business needs are clear, the
technologies it requires will come into focus
 IT adoption
• The biggest mistake business leaders make is
to underestimate resistance when they
impose changes in the ways people work.
 IT exploitation
• A business leader’s third IT-related
responsibility is to extract the maximum
benefit from technologies once they are in
place
• Its all good stuff, and forms the basis of a
model to have an intelligent conversation with
the IT groups.