Babson College

Department of Math and Science

MIS 7550 - Deploying Information Technology Strategically

Profs. Cyrus F. Gibson and Robert H. Reck

Fall 1998 - Ver. 1.5 (As of 10/27/98)

Instructor: Cyrus F. Gibson [Lead faculty for course]
Office Address: NA
(Best Phone) = NA
Fax = same number.
E-mail:gibsonassc@aol.com

Instructor: Robert H. Reck
Office Address: Kendall Consulting Group
268 Highland Road, Andover, MA 01810
(Best Phone) = 978-474-9109 or 941-366-1774
E-mail: reck@babson.edu

Class Meets: Mondays, 6:30pm-9:00pm, Olin Hall

Course Website http://www.kendall-consulting.com/babson/babhome.html

Course Summary

"Deploying Information Technology Strategically" addresses the central importance of information and its management for competitive success. Frameworks, cases, presentations and numerous visitors address the alignment of IT with business strategy, emerging business processes enabled by IT, scenarios of the future direction of IT offerings by the vendor industry, and such current issues as ERP implementation, e-commerce, infrastructure investment projects, technology-driven organizational change, involvement of senior and line management, and the positioning and managing of the IT function. A heavy emphasis is placed on class participation.

Audience

The course is aimed at those aspiring to management careers in business, particularly those with an interest in the role of IT as a means to achieve strategic advantage. There are no technological prerequisites, but an undergraduate major in business or at least two years’ business experience are strongly recommended.

Course Objectives

Class Approach and Student Evaluation

Classroom participation and four papers are the basis for the course grade. Participation will be evaluated on the basis of reflecting assigned readings, contributing to insight on analysis and action recommendations for the case or topic being discussed, and taking into account others’ inputs. Papers are to be an analysis and recommendations for a class, due one week after the class discussion. The papers are to take into account not only the assignment materials for the class, but all relevant material in the course prior to that class, the conclusions reached in the class itself, and further insights reached after the class. Students are encouraged to discuss material for classes and papers, but are individually responsible for the final products. Class participation will be 40% of the final grade, and each paper 15%.

Course Materials

In addition to the course packet, numerous materials will be assigned on the web, available on the course website and others.

Instructors’ CV’s

Detailed biographical sketches and resumes of the course faculty are available by clicking on the indicated links below:

Course Contents And Assigned Readings

Module A: Overview and Frameworks

1. Sept. 7: Introduction

The course, class and faculty will be introduced. Presentation of some of the following key frameworks for the course: Historical Macro-eras and Adoption, IT Value, Benefit-Beneficiary Matrix, IT Infrastructure "Iceberg", Principles and Maxims for Executive Alignment, IT Strategic Planning and Alignment, IT Organization and Governance, IT Implementation and Change Management. Discussion of IT trends and issues, how they fit the frameworks and when they will be addressed in the course.

[No readings or assignment.]

2. Sept. 14: IT and Business Strategy

The evolution of all businesses toward information businesses. Some leading examples in financial services. Continuation and use of key frameworks.

Visitor: Executive from State Street Boston Corporation

1) Case study: "State Street Boston Corporation: Leading With Information Technology", Harvard Business School # 9-195-135
2) Hopper, M., "Rattling SABRE - New Ways to Compete on Information", HBR, May-Jun 1990, pp 118-125, reprint 90307
3) Caldwell, B., " We Are the Business", Information Week, Oct., 1996, 36-50 CMP Publications
4) Evans, P.B. & Wurster, T.S., " Strategy and the New Economics of Information," HBR, Sept-Oct, 1997, pp 70-83. Reprint # 97504

Module B: Technologies and Business Processes 3. Sept. 21: "Enterprise Resource Planning"

Internal horizontal business processes: transaction processing, the supply chain, and the role of IT. What ERP’s promise to do. Why they are so popular. The implementation of and change problems around ERP’s. Potential problems and approaches for the future.

1) Davenport, T.H., "Putting the Enterprise Into the Enterprise System", HBR, Jul-Aug 1998, pp 121-133. Reprint # 98401
2) Ostroff, F. & Smith, D., "The Horizontal Organization," The McKinsey Quarterly, 1992, No. 1, pp 148-168
3) Xenakis, J.J., "Taming SAP," CFO, Mar 1996, 12:3, pp 23-30
4) White, J.B., Clark, D. & Ascarelli, S. "Program of Pain: This German Software Is Complex, Expensivem and Wildly Popular", Wall Street Journal, March 14, 1997, p. 1

4. Sept. 28: E-Commerce

Extension of horizontal processes to the firm’s environment. Electronic commerce in relation to established IT architecture and practice. Net- and Web-based businesses and new "business models".

1) "In Search of the Perfect Market," The Economist Electronic Commerce Survey, The Economist, May 10, 1997
2) Read assigned readings on the net.

5. Oct. 5: Knowledge Management

Continued discussion of E-Commerce.

Vertical and decision-support processes and systems. Uses of "intranets". The promise and issues with Knowledge Management. Performance measurement systems. The Critical Success Factors technique for identifying decision-support and other applications needs.

Visitor: George Hathaway, VP IT E-Commerce, Fidelity Investments, Inc.

1) Drucker, Peter, "The Coming of the New Organization", HBR, Jan-Feb 1988, 45-53. Reprint #88105.
2) Rockart, J.F., "Chief Executives Define Their Own Data Needs," HBR, Mar-Apr 1979, 57:2, pp 81-93, reprint #79209
3) Kaplan, R.S. & Norton, D.P., "The Balanced Scorecard — Measures that Drive Performance", HBR, Jan-Feb 1992, 71-79. Reprint # 92105.
4) Angus, J. Patel, J., & Harty, J., "Knowledge Management: Great Concept, But What Is It?", Information Week, March 16, 1998, 58-70.

6. Oct. 12: The IT Industry and Scenario Planning

The changing structure of the IT industry over the macro-eras: from vertical integration to horizontal integration to today’s mixture. Planning for IT under uncertainty: the scenario planning approach.

1) "The Computer Industry," The Economist, Feb. 17, 1993, special section pp 3-18.
2) Anderson, "A World Gone Soft: A Survey of the Software Industry," The Economist, May 25, 1996, vol 339 no 7967. The Economist Newspaper Group, Inc.
3) Kirkpatrick, E. Brown, M. Warner, M. H. Martin, D. Stipp, "Ten Tech Trends to Bet on: The Computing Revolution is Roiling Every Industry in Sight. Here’s How Investors Can Make Sense of the Turmoil", Fortune, November 10, 1997, 98- 112.
4) Schwartz, P. The Art of the Long View, "Appendix: Steps to Developing Scenarios", 241-248, New York, Bantam Doubleday Dell, 1991.

Module C: Issues

7. Oct. 19: Executive Perspectives and Involvement

The changing role of senior and top management in the management of IT. Ways to achieve executive leadership in different company cultures, different businesses, and different management styles.

Visitor: Joe Stokes, CFO, Life Technologies, Inc.

1) Case study: Life Technologies Inc. [to be distributed separately]
2) Gibson, C. & Ball, L. "Executive Mindscapes and Information Technology.", Indications (CSC Index), 6:6, Nov-Dec 1989
3) "The End of Delegation? Information Technology and the CEO", HBR, Sep-Oct 1995, 73:5, pp 161-172, reprint #95505

8. Oct. 26: Reengineering

Reengineering as driven by customer needs. Finding true customer needs and supporting those needs with the right "business diamond." Value disciplines, business strategy determination, and the role of technology in support of operational strategies.

1) "How Greyhound Lines Reengineered Itself Right Into a Deep Hole",WSJ, Oct. 10, 1994, p1.
2) Hammer, M. "Reengineering Work: Don’t Automate, Obliterate," HBR, Jul-Aug 1990, pp 104-112, reprint #90406
3) White, J.B., "‘The Next Big Thing’: Reengineering Gurus Take Steps to Remodel Their Stalling Vehicles," WSJ, Nov 26, 1996, p 1
4) Reck, R. & Reck, V., "Managing Change: A Proven Path to Business Success," Innovations, vol. 4, No. 1, Kendall Consulting Group, 1997.
5) Reck, R. & Reck, V., "Value Disciplines: What Are They? Do You Need Them? How Do You Use Them?," Innovations, Kendall Consulting Group, 1996.
6) Optional Reading: R. Reck & V. Reck, "The Role of Information Systems Strategy in the Making of Market Leaders," Journal of Information Strategy, 1997.

9. Nov 2: Infrastructure and its Implementation

Distinction between infrastructure and applications. The problem of cost-justification of infrastructure and how to deal with it. Investment vs. expenditure and IT as part of a long-term and strategic approach to running the business.

1) Case study: Ross, J.W., "Johnson & Johnson: Building an Infrastructure to Support Global Operations," MIT Sloan School, Center for Information Systems Research, 1995
2) Ross, J.W., Beath, C.M., and Goodhue, D.L., "Develop Long- Term Cmpetitivenes through IT Assets", SMR, Fall 1996, 31-42. Reprint 3813.
3) Broadbent & Weill (1997). Management by Maxim: How Business & IT Managers Can Create IT Infrastructures, SMR, Spring , reprint 3836, 77-92

10. Nov. 9: Outsourcing

The attractions and pitfalls of outsourcing and "outtasking" for IT. Importance of partnership development with vendors. New roles for the IT staff under conditions of outsourcing.

1) Case study: "Xerox: Outsourcing Global Information Technology Resources," HBS # 9-195-158 (revised 9/5/96).
2) Lacity, M.C., Willcocks, L.P., & Feeny, D., "The Value of Selective IT Sourcing," SMR, Spring 1996, 37:3, pp 13-25, reprint #3731
3) Earl, M.J. "The Risks of Outsourcing IT," SMR, Spring 1996, 37:3, 26-32, reprint #3732
4) Reck, R. & Reck, V., "Internal Consultants: Maximizing Value and Building Capability," Innovations, Kendall Consulting Group, 1996.

11. Nov. 16: The IT Function: Planning and Governance

Strategic planning for the IT function, involvement of senior management in IT strategy, and the continuing need for adjustment in priorities while operating under a strategic mission. Federalism as applied to organizational placement and responsibilities for IT in the multi-divisional corporation.

Visitor: John McCabe , VP of IT, Teradyne

1) Case study: "Teradyne, Inc.: The Information Systems Steering Committee", CIMS Working Paper Series #95-05, June 1995, Center for Information Management Studies, Babson College.
2) Hodgkinson, S.L. "The Role of the Corporate IT Function in the Federal IT Organization," chapter 12 in Information Management: The Organisational Dimension, M.J. Earl, ed.; Oxford U. Press, 1996, pp 247-270
3) Feeny, D.E. & Willcocks, L.P., "Core IS Capabilities for Exploiting Information Technology," SMR, Spring 1998, 9-21.

Module D: Summary and Wrap-up: Technologies and Business Processes

12. Nov. 30: Organizational Change and Project Management

The problem of planning and executing large, complex IT-based projects. Project management from a senior management perspective. The issues of organizational structure change and behavioral change in relation to IT implementations, and how to address them.

Visitor: Executive from Lifeline Systems, Inc.

1) Case: Lifeline Systems, Inc. (to be written by CFG - copies will be available over the web)
2) Orlikowski, W.J. & Hofman, J.D., " An Improvisational Model for Change Management: The Case of Groupware Technologies,"SMR, Winter, 1997, 11-21, reprint 3821.
3) Wysocki, B. Jr., "Some Firms, Let Down by Costly Computers, Opt to ‘De-engineer,’ WSJ, April 30, 1998, p. 1
4) "Project Management: "School for Learning," Catalyst of Change," Innovations, vol. 4, No. 1, Kendall Consulting Group, 1997.

13. Dec. 7: Multiple Issues and Corporate Mobilization

Overview of the course in light of a current company situation illustrating many of the issues covered.

Visitor(s): Executives from Dow Corning Corporation

1) Case study: Ross, J.W. "Dow Corning Corporation (A): Busines Processes and Information Technology," Center for Information Systems Research, Sloan School of Management, MIT, 1997.
2) Case study: Ross, J.W. "Dow Corning Corporation (B): Busines Processes and Information Technology," Center for Information Systems Research, Sloan School of Management, MIT, 1997.
3) Earl, J.J., and Feeny, D.F., "Is Your CIO Adding Value?" SMR, Spring 1994, 35:3, pp. 11-20, reprint #3531

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