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Information systems
    and strategy




   User imperative (add p.11)

 Each information technology has dynamic
 properties determined by how people use it
 It is people’s use of IT, and not IT itself which
 shapes society and organizations
 Those in power can shape interpretive
 schemes, but not technology use directly
 IT is a resource for improvisation
User imperative and tech. (add p.11)


 IT designers build capabilities into their
 hardware and software
 These capabilities are turned into features as
 users draw on them in their everyday work
 These features are crystallized as others used the
 outputs of technology for their own practices




User imperative and org’s (add p.11)
    IT is a resource that people use as they
    address the everyday challenges of
    organizational life
    ‘Consequences of IT’ is a misnomer : Instead,
    the focus is on the uses of IT
    The same technology can be used
       by the same people
       in different ways
The ISS Triangle
                      Biz strategy



 Org’l strategy                        IS strategy




    analysis
                        Biz strategy



    Org’l strategy                       IS strategy


                                                *What imperative is this?




How does IT matter?
     Radical                         Radical
  organizational                      market
     changes                         changes




                       IT as
                  a core element
                    in strategy



                                                                            6
IT is a major corporate
         investment




                              7




Growth in IT spending spans
          borders




                              8
SO... IT is an important startegic parameter




                                               9




  However, these investments
     have not delivered




                                               10
Is this surprising?

 !
 ! What strategic advantage does IT look
   like?




                                           11




                                           12
Taking advantages of
    infrastructural technologies
  Getting there first
     Factories installed next to electricity
     plants
  Insightful early uses
     Replace pulleys and steam engines


  Serve emerging market needs
                                                 13




As technologies spread this
advantage disappears
  Strategic advantage coms from scarce, not
  from abundant resources
  IT is increasingly ubiquitous hence it is
  decreasingly strategic
  IT is becoming a cost that all must bear but
  that no one can profit from

                                                 14
If IT doesn’t matter, what
are the next steps?
  Minimize your IT costs
    Focus on efficiency, not effectiveness


  Minimize your IT risks
    Focus on system continuity

                                             15




 The user imperative critique...



                   ?
               ?
               !
                       ?
Addressing this conundrum...
   IT does not provide competitive
   advantage directly, but it is of strategic
   consequence


   IT matters strategically
     Market pull: Punctuated change
     Organizational push: Continuous change
                                                18
IT and market pull

IT changes mean different relationships with
customers
IT changes mean new and nimbler
competitors
IT changes mean new production (incl
strategy production) processes

                                                  19




IT and organizational push
   As employees use IT in organizations...
      changes to underlying structure and startegy are
      likely to unfold

   Managers use IT to...
  ... As an opportunity to apply pet solutions
  ... As an opportunity to advance politically


   IT is co-opted in strategic power struggles    20
The ISS Triangle, really
                                        Biz strategy



                   Org’l strategy                      IS strategy




analysis                                        Implementation
                 Biz strategy                                        Biz strategy



Org’l strategy                  IS strategy     Org’l strategy                      IS strategy

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IS Undergrads Class 5

  • 1. Information systems and strategy User imperative (add p.11) Each information technology has dynamic properties determined by how people use it It is people’s use of IT, and not IT itself which shapes society and organizations Those in power can shape interpretive schemes, but not technology use directly IT is a resource for improvisation
  • 2. User imperative and tech. (add p.11) IT designers build capabilities into their hardware and software These capabilities are turned into features as users draw on them in their everyday work These features are crystallized as others used the outputs of technology for their own practices User imperative and org’s (add p.11) IT is a resource that people use as they address the everyday challenges of organizational life ‘Consequences of IT’ is a misnomer : Instead, the focus is on the uses of IT The same technology can be used by the same people in different ways
  • 3. The ISS Triangle Biz strategy Org’l strategy IS strategy analysis Biz strategy Org’l strategy IS strategy *What imperative is this? How does IT matter? Radical Radical organizational market changes changes IT as a core element in strategy 6
  • 4. IT is a major corporate investment 7 Growth in IT spending spans borders 8
  • 5. SO... IT is an important startegic parameter 9 However, these investments have not delivered 10
  • 6. Is this surprising? ! ! What strategic advantage does IT look like? 11 12
  • 7. Taking advantages of infrastructural technologies Getting there first Factories installed next to electricity plants Insightful early uses Replace pulleys and steam engines Serve emerging market needs 13 As technologies spread this advantage disappears Strategic advantage coms from scarce, not from abundant resources IT is increasingly ubiquitous hence it is decreasingly strategic IT is becoming a cost that all must bear but that no one can profit from 14
  • 8. If IT doesn’t matter, what are the next steps? Minimize your IT costs Focus on efficiency, not effectiveness Minimize your IT risks Focus on system continuity 15 The user imperative critique... ? ? ! ?
  • 9. Addressing this conundrum... IT does not provide competitive advantage directly, but it is of strategic consequence IT matters strategically Market pull: Punctuated change Organizational push: Continuous change 18
  • 10. IT and market pull IT changes mean different relationships with customers IT changes mean new and nimbler competitors IT changes mean new production (incl strategy production) processes 19 IT and organizational push As employees use IT in organizations... changes to underlying structure and startegy are likely to unfold Managers use IT to... ... As an opportunity to apply pet solutions ... As an opportunity to advance politically IT is co-opted in strategic power struggles 20
  • 11. The ISS Triangle, really Biz strategy Org’l strategy IS strategy analysis Implementation Biz strategy Biz strategy Org’l strategy IS strategy Org’l strategy IS strategy