the information opportunity
DESCRIPTION
Lec . 2 April 1, 2010 ISM 158. The Information Opportunity. Instructor: Pankaj Mehra Teaching Assistant: Raghav Gautam. Assignment 1 (due April 1). Review Chapter 1 ( The Importance of Information ) from CapGemini’s The Information Opportunity report (2008) Be ready for the quiz! - PowerPoint PPT PresentationTRANSCRIPT
The Information Opportunity
Instructor: Pankaj MehraTeaching Assistant: Raghav Gautam
Lec. 2April 1, 2010
ISM 158
Assignment 1 (due April 1)
• Review Chapter 1 (The Importance of Information) from CapGemini’s The Information Opportunity report (2008)– Be ready for the quiz!
• Think about:– Do businesses view information as an asset?– Are all industry segments on board with this view?– What should a CRM system do?
QUIZ 1
4
Ensuring the right information is available to users when needed is the highest business priority for large companies in 2009….
… yet, confidence in the accuracy and accessibility of information is low (less than half are very confident)
Information for competitive advantage
Reducing operating costs
Improving document-intensive processes
Ensuring legal and regulatory compliance
Improving the supply chain
Reducing capital expenditure
Reducing IT costs
Improving collaboration, reducing duplication
Insight and content into operational processes
Ensuring the right information is available
Attracting, retaining, growing customers
Improving information risk management
88
85
74
63
61
61
60
54
52
47
46
63
Business Priorities% High priority
HP/Ronin research study Feb 2009: 142 IT and LOB decision makers in companies with over 10,000 employeesin US, UK, Australia and Singapore
Total IT LOB
46 47 45
41 44 39
4 71
9 315
Confidence Information % ratings
Low
Very
Neutral
Somewhat
Survey 1: Large Global Enterprises
Survey 2: UK FTSE 350, Public
• Over 80% consider information exploitation critical to business performance
• Project an average 29% improvement in business performance from better use of information
The size of information opportunity varies by sector and function
Utilities
Central Government
Local Public Services
Financial Services
Average all sectors
Manfacturing & logistics
Retail & Consumer Goods
Media & Entertainment
0% 20% 40% 60%
% improvement
ProcurementManufacturing
Logistics/Supply chainHuman Resources
MarketingGeneral Management
SalesFinance
ITCustomer Management
0% 10%
20%
30%
40%
50%
% improvement
Factors motivating betteruse of information
• Strong linkage between business information and the ability to conduct business effectively and efficiently
• Better management of information is also seen as a direct goal
• Also driven by customer expectations and market forces
Partner/supplierExecutive vision
Industry dynamicReputation protection
Legal obligationsCompetitor strategiesStatutory obligations
Risk reductionCustomer expectations
Cost reductionBusiness effectiveness
0% 10%
20%
30%
40%
50%
% respondents
AN IT OPPORTUNITY?
The Challenges of Managing in a Network Economy
IT is a source of opportunity and advantage but also uncertainty & risk
Chasm between viewpointsBusiness executives: View IT with apprehensionTechnical executives: Business leaders lack vision
What is undeniable is the rapidity of changeIn system architecture and interfacesIn businessIn work and the workforce
The Embedding of IT
• IT now embedded in:– Definition and execution of strategy– Organization and leadership of businesses– Definitions of unique value propositions
• Every business definition is morphing before our eyes– Markets– Industries– Strategies– Firm designs
• Information is now a major economic good
Key Themes
1. Putting the “I” back in “IT”– No longer just people, process and infrastructure– Information-Centric Enterprises
2. Managing information by quality and by business value– Dimensions of IQ– Dimensions of BVI
3. How much information, and how much technology?– Taming the information explosion– Maturity model– iT vs It
Key Themes (cont.)4. Information as an asset
– Insights from data; analytics5. Information as a liability
– Governance, risk management and compliance (GRC)6. Information aaS (as a service)
– Information worth paying for– SOA and data services
7. Building information services– Understanding and delivering affordances– Is the Information Service Provider market a preview of
things to come?
IT’s new jobs
• Information Architects, Enterprise Data Architects, CSOs, Compliance Officers
• Even as …– No librarians (physical libraries giving way to
electronic collections)– Failing newspapers (will there be automated
editorialization?)
IT’s old nemeses, all apply• Technology Adoption
– The time required for successful organization learning and assimilation of rapidly changing technologies limits practical speed of change
• Build vs Buy– External industry, internal organizational, and
technological changes are increasing pressure on organizations to buy rather than to make IT applications and services
• Complexity– Proliferating information infrastructure
IT’s old nemeses• Ability to ensure high levels of security, privacy,
reliability, and availability is a core capability that determines organization’s ultimate success and survival
In the next lecture …
• Meet the barriers to better information use in business up close
• Begin to comprehend strategies for overcoming these barriers
Reading Assignment (for April 6)
• Review Chapters 2 & 3 (Overcoming the failures and Three opportunity areas) from CapGemini’s The Information Opportunity report (2008)
• Think about:– What are some dimensions of information quality?– How can lack of trust be an issue in making better
use of information?– What sort of policies, procedures and mechanisms
would enable information sharing among business silos toward a single view of customer?
Questions?
•
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