BUS 590K-Course Schedule

Strategic IT

Fall, 2000

Revised: Nov 20, 2000

Module I:  Frameworks and Models

Monday, August 21

Topic: Student Placement, Course Introduction, and Preliminary Discussion

Student/Instructor Introductions

Information Technology, Past, Present and Future

General Course Overview:  Objectives, Requirements, Schedule, Process and Procedures

Visuals

Monday, August 28

Topic:  Beginning To Think About Organizational Applications of IT

Read:

"High Tech Plunge: A Tough Bank Boss Takes on Computers, With Real Trepidation." WSJ, July 25, 1996

Discussion Questions:

1. Would you take McColl’s approach on being on the leading edge of using information technology, or would you do what Mr. Williams of SunTrust Banks suggests, hold back in order to avoid, "losing your you-know-what?"

2. Do you agree or disagree with the notion that Nations Bank’s most severe competition in the future may come from industry sectors other than banking? If so, how might this happen?

Read:

1. "When Things Go Wrong" WSJ, November, 18, 1996

2. "How New Technology Was Oxford’s Nemesis," WSJ, December 11, 1997

Discussion Questions:

These articles both relate to "big" IT projects. Looking at the graph at the end of the "When Things Go Wrong" article, you can see that such miserable failures of the application of IT are not that uncommon. Lots of money (and careers) can go down the drain.

  1. Why is this happening with such frequency?
  2. What can be done to avoid these failures?
  3. Was the Fox-Meyer failure caused by technology or by management?
  4. What was the root cause of the Oxford problem?

Read:

"When Technology Fails: The Triple Crown Transportation Corporation"

Discussion Questions:

1. Does this case represent a "strategic" employment of information technology? Why or why not?

2. This case is set 28 years in the future, is it just science fiction or could this really happen?

3. What, in your opinion, are the five major causes of the disaster that occurred when the system failed?

4. How long do you think the causes of failure such as these have been around regarding the application of technology? Has it been tens of years, twenty, fifty, a hundred, several hundred, or more? If you go back a long time, can you think of an example?

Assignment Due: ***Paper #1 ***

Monday, September 4

***No Class Meeting--University Holiday***

Monday, September 11

Topic: IT for Strategic and Competitive Advantage

Discussion of IT Strategy and Its Relationship to the Course

Read

1.   "Strategy and the New Economics of Information,"  P. Evans and T. Wurster, Harvard Business Review, September-October, 1997

Discussion Questions:

1.  Think about Encyclopedia Britannica and its history.  How do you think IT has affected this organization?

2.  Can you think of a couple of other industries (enterprises) which you think will be greatly affected in the future by IT?  Be prepared to share these with the class (and justify your reasoning).

3.  Identify several major theses in this article.  Take a couple and apply them (and their consequences) to an industry you choose as an example.

Visuals

Read:

    1. "Eight Imperatives for the New IT Organization," J. F. Rockart, M. J. Earl, and J. W. Ross, Sloan Management Review, Fall, 1996

Discussion Questions:

1.  Can you rank order the "Eight Imperatives" in order of their importance?

2.  Be able to explain Fig. 3 and its consequences for the organizational location and functions of an IT organization.

3.  With those of you who are working (or who have worked in a mid to large organization), how does your experience stack up with Fig. 4?

Visuals

Module II:  Practice Using Case Analysis

Topic: Understanding Perspectives

Read:

1.  "The IT System That Couldn’t Deliver," Harvard Busniess Review, May-June, 1997

Discussion Questions:

1. Does the Lifeexpress system represent a stategic application of IT? Why or why not?

2. Identify 3 factors that caused the Lifexpress system to fail

3. Who is the most guilty party in the failure?

LifeExpress Takeaways

Monday, September 18

Topic: Strategic IT in Action

Read:

Profiling at National Mutual (A)

Profiling at National Mutual (B)

Discussion Questions:

  1. What were the problems faced by National Mutual?
  2. How did the Profiling System address these problems (relate to the NM strategy?)
  3. What do you think of the way NM justified the expenditure on the Profiling System (deciding to go ahead and make a substantial investment?)
  4. Consider the following- -

From the case, there is the following quotation:

"We won’t know for four more years if Profiling is a success or not. I won’t entertain a review of the Profiling decision for at least three years. We are going to do Profiling because it is central to our strategy. Cultural change takes years and we are going to have a go at it."

Full scale national rollout began in October, 1989. In that month, 200 profiles were submitted by agents. Based upon the case, draw a graph of profiles over time. Begin in Oct. 1989 and project the number of profiles submitted monthly until, say, two years later (Sept. 1991).

A couple of things to keep in mind. First, Client Profiling was determined by National Mutual’s top management to be a perfect fit with their future company goals. Second the use of the system in a company in Great Britain was a great success. In the latter case, the number of profiles grew from about 200 the first month of its national introduction to over 4000 profiles two years later

Having drawn your graph, classify the Profiling system (two years out) as: (1) A great success, (2) A modest success, (3) A modest failure, or (4) a complete and utter failure.

Submit a copy of your graph and your classification under the 1 to 4 scoring system above (note: integer ratings only, please).  Note, the score and the graph constitute the 'short hand-in' noted below.

Assignment Due: ***Short Hand-In***

Topic: A Model for IT Justification: Environmental Assessment, Economics and Controlling Project Risk

At this point, a general model will be presented for assessing the application of IT. Further, CSFs for IT success will be introduced. Finally, a facilitating mechanism, the Strategic Analysis Sheet (SAS) will be introduced and discussed. The use of the model will be facilitated using the Profiling at National Mutual Case.

Model for Implementation Analysis

National Mutual Illustrative Analysis

Monday, September 25

Topic: A Look at Outcomes of Investment in IT

Read:

1.  "Beyond Outsourcing: Managing IT Resources as a Value Center," N. Venkatraman, Sloan Management Review, Spring, 1997

Discussion Questions:

1.  What relationship, if any, does this article have to do with the one you read previously by Rockart, Earl, and Ross?

2.  If you can, take an organization you are familiar with and try to do a quick analysis based on how they would be rated on the dimensions presented in Fig. 4.

Several other useful frameworks will also be presented and discussed including:

  1. The application of the Porter Model to IT
  2. The Strategic Grid

This session will be lecture/discussion devoted to providing background regarding strategic/competitive applications of IT. In order that everyone share some well-known examples, some specific instances will be presented such as: The Apollo and Sabre systems, American Hospital Supply, et. al.

Visuals

Read:

1. Frito-Lay: A Strategic Transition (A)

2. Frito-Lay: A Strategic Transition (B)

Discussion Questions:

1. Would you make the investment in the Hand Held Computer Project?

(What is the magnitude of the investment? What are the benefits? What is the ROI? What risk factors should be considered in addition to the economic evaluation?)

2. Do you think the HHC project was successful? Why, what led to this outcome?

Assignment Due: ***SAS1***

Note: For this session, only consider the HHC, not the future that might be possible because of the ability to do micro-marketing. The HHC does a lot of good things and does "facilitate" the ability to micro-market, but the ability to do this is in the future and will require additional investment. The nature of the Strategic Analysis Sheets (SAS) was discussed in the previous class session and are also briefly described in the course syllabus.  Experience has shown that it will take a few iterations until you will be proficient in doing the SAS analysis and filling out the sheets.  To get as good a start as possible, think about what was presented following the National Mutual case and look at the course syllabus for guidelines.

This session will also include an overview of the IT investment decision from the economic, technical and operational perspective.  Regarding the economic view, we will use the Frito-Lay HHC application to review ROI in the IT context.

Frito-Lay Takeaways

Generic SAS Form (for those who I have indicated may wish to use it)

Monday, October 2

Topic: Making the IT Investment Decision

Read:

1.  "IT-Enabled Business Transformation: From Automation to Business Scope Redefinition," N. Venkatraman, Sloan Management Review, Winter, 1994

Discussion Questions:

1.  Can you understand and explain Table 4?

Read:

1. Burlington Northern: The ARES Decision (A)

2. Burlington Northern: The ARES Decision (B)

3. Burlington Northern Strategic Repositioning

Note: This looks like a lot of reading, but the Strategic Repositioning case is an update and much of the background information you will already have.

Discussion Questions:

  1. If you were an outside consultant would you recommend BN go ahead with ARES? Justify your position. (Based on A & B cases).
  2. If you were our old friend, Charlie Feld, would you take up Grinstein on his offer (simply Yes or No but prepared to justify your decision)

Assignment Due: ***SAS2***

ARES Takeaways

Monday, October 9

Topic: Further Analysis of IT Strategic Application

Read:

1.  "Unlocking the Computer's Profit Potential,"  McKinsey Quarterly, Fall, 1968

Discussion Questions:

1.  This report was written over 30 years ago.  Are you satisfied with the progress we've made in this time in dealing with the issues identified in the report?

2.  What in this old report is still true (useful) and what has been overtaken by events?

3.  Do you think this old McKinsey report still has any value for understanding the successful application of organizational IT?  If so how?

Read:

A case to be handed out (with discussion questions) during the previous class session

BN Back on Track Takeaways

                                                  Assignment Due: ***SAS3***

Monday, October 16

***No Class--Fall Break***

Monday, October 23

Topic: Successful Application of Strategic IT

Read:

1. Singapore Tradenet: A Tale of One City

Discussion Questions:

  1. Early on, would you have predicted that the Singapore Tradenet would have been successful? Why or why not (what were the risk factors and how risky were they?)
  2. The system actually was a smashing success. How did this happen?

 

Assignment Due: ***SAS4***

Monday, October 30

Read:

1.  "Implementing New Technology," D. Leonard-Barton and W. Kraus, Harvard Business Review,       November-December, 1985

Discussion Questions:

1.  Can you differentiate between the sales and the marketing approach to IT application development?

2.  How does their suggested approach to implementation of technology differ from what is traditionally done and the approach taken to do it?

2.  "Are You Gambling on a Magic Bullet?" M. L. Markus and R. Benjamin," ComputerWorld, October 20, 1997 (3:10)

Discussion Questions:

1.  What is a "magic bullet," and what assumptions lay behind these?

2.  What does all this mean for IT implementation?

3.  If IT is considered a "magic bullet," what use is a "silver bullet"? A wooden stake?

Visuals

Topic: Developing a Strategic IT Implementation Plan

Read:

1.  XenoTec (A)

Discussion Questions:

1. How likely do you think it is that the marketing information system will be successful?

2. What are the factors in favor of success? Failure?

XenoTec (A) - Part II

In class, we will take the problems with the XenoTec system that were identified in class in class and see if we can develop ways of dealing with them.

Hand out XenoTec (B)

XenoTec (A) Takeaways

                                           Assignment Due: ***SAS5***                                             

Monday, November 6

***Attend COM Graduate Symposium***

(No Class This Night)

The COM Graduate Symposium is on the morning of Friday, November 3. For those absolutely unable to attend, an alternative assignment will be made available. Note: See the assignment for Paper #4 before you attend the symposium. You will need to pay attention and take notes carefully to write this paper which is due later in the course.

Monday, November 13

Topic: Developing a Strategic IT Implementation Plan-2

Read:

1. XenoTec (B)

In class, we will see how XenoTech handled its systems development and implementation.  Did they do a good job?  What do you think they did well?  Poorly?

Assignment Due: ***Paper #2***

Monday, November 20

Topic: Strategic Application of IT

Read:

1.  International Multifoods-A Case

2.  International Multifoods-B Case

Discussion Questions:

See questions for A Case (pg. 7), B Case (pg. 5)

Assignment Due: ***Paper #3***

International Multifoods Takeaways

International Multifoods Epilog

Module III:  Practicum Presentations

Monday, November 27

Practicum Presentations-1

Note:   Students should be prepared to make practicum reports on any of the following dates.  Thus, your practicum presentations must be ready for presentation by November 27 even though they may not actually be given until December 4. 

***Paper #4 Due*** (Graduate Symposium Assignment)

Monday, December 4

Practicum Presentation-2

Monday, December 11

***Final Examination Period***

Take Home Final Examination Due



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