ITG&SS - Terminology Flashcards
1
Q
Key IT Decisions
A
IT principles IT Architecture IT Infrastructure strategies Business Application needs IT Investment & prioritization
2
Q
Governance Archetypes
A
Business Monarchy IT Monarchy Feudal Federal IT Duopoly Anarchy
3
Q
IT Principles
A
High level statements about how IT is used
4
Q
IT Architecture
A
Technical choices to guide to organization in satisfying business needs. A set of policies and rules
5
Q
IT Infrastructure strategies
A
Strategies for the base foundation of budgeted-for IT Capability (technical & human)
6
Q
Business application needs
A
Specifying the business need for purchased or develop IT application
7
Q
IT Investment and prioritization
A
Decisions about how much and where to invest including project approval and justification techniques
8
Q
IT Governance formal definition (Alan Calder & Steve Watkins, 2005)
A
The framework for leadership, organizational structures, business processes, standards and compliance, which ensures that the organization’s information systems support and enable the achievement of its strategies and objectives.
9
Q
Course definition IT
A
Specifying the framework for decision rights and accountabilities to encourage desirable behavior in the use of IT
10
Q
IT Governance is important because
A
It influences the benefits received from IT investments
11
Q
Does IT Matter? (Carr, 2003)
A
IT has become a commododity, as a result this means that IT will no longer provide a sustainable competitive advantage.
IT has become a qualifier, it is no longer a differentiator
12
Q
Business Monarchy
A
C-suite (including CIO) is responsible for all five major IT decision. IT executives may NOT act independently
13
Q
IT Monarchy
A
CIO and IT executives make all five major IT decision types
14
Q
Feudal
A
Business units make all major decision types
15
Q
Federal
A
Decisions are made involving two different levels (e.g. BU leader + CxO). IT executives may be part of it. Not common
16
Q
IT Duopoly
A
BU leader or CxO + IT executives make decisions
17
Q
Anarchy
A
Not very common, not truly a governance form
18
Q
Most common pattern for firms regarding governance Archetypes
A
Federal for input across all major decision types. Decision mostly comes from Duopoly/ Federal/ IT Monarchy
19
Q
IT Governance three questions
A
What decisions must be made to ensure effective management and use of IT?
Who should make these decisions?
How will these decisions be made and monitored?
20
Q
Strategic Alignment
A
The same strategic decisions/goals for IT as well as the Business
21
Q
Factors dictating variations
A
- Strategic and performance goals
- Organizational structure
- Governance experience
- Size and diversity
- Industry and regional differences
22
Q
Four aspect affecting governance performance
A
- Cost effective use of IT
- Effective use of IT for asset utilization
- Effective use of IT for growth - Effective use of IT for business profit
23
Q
Effective Governance Patterns
A
- For enterprises with lot of synergy. IT finely tuned to business, with strong trust.
- For enterprise with few synergies. Duopoly for app. needs, because less need to coordinate across BUs
- Very centralized. Used in firms with single BU or where profitability or cost control is big issue.
24
Q
Governance pattern 1
A
Principles - Duopoly Architecture - IT Monarch. Infrastructure - IT Monarch. B. App. needs - Federal Investment & prioritization - Duopoly
25
Governance pattern 2
```
Principles - Duopoly
Architecture - IT Monarch.
Infrastructure - IT Monarch.
B. App. needs - Duopoly
Investment & prioritization - B. monarch.
```
26
Governance pattern 3
```
Principles - B. monarch.
Architecture - B. monarch.
Infrastructure - B. monarch.
B. App. needs - Federal
Investment & prioritization - B. monarch.
```
27
28
Governance Critical Success Factors
- Transparency
- simplicity
- aligned incentives
- education about IT governance.
29
Dealing with uncertainty (lenses)
- Environmental Dynamism
- Dynamic Capabilities
- Organizational resilience
30
Environmental Dynamism
Model by Ansoff and McDonnel, detailing five levels of turbulence. Stages are:
- Repetitive
- Expanding
- Changing
- Discontinuous
- Surprising
31
Repetitive turbulence level
Level 1
- National economic
- Familiar events
- Slower change than response
- Recurring future
32
Expanding turbulence level
Level 2
- Events are extrapolable
- Future is forecastable
33
Changing turbulence level
Level 3
- Regional technological
- Change comparable to response
- Predictable future
34
Discontinuous turbulence level
Level 4
- Global sociopolitical
- Disc./Novel events
- Faster change than response
- Unpredictably surprising future
35
Best model for each stage
First stage: Porter, five forces
Third Stage: Resource Based View
Fourth Stage: Dynamic Capabilities
36
Dynamic Capabilities
Enables company to create, deploy and protect intangible assets. Create resource combinations that are have value and are difficult to imitate. Source of sustainable advantage
37
Dynamic Capabilities foundations
Skills, processes, procedures, organizational structures, decision rules and disciplines that motivate sensing, seizing and transforming own capabilities
38
Digital Dynamic Capabilities
Is Dynamic Capabilities optimized through digital technologies
39
Digital Dynamic Capabilities elements
```
External Triggers
Digital Sensing
Digital Seizing
Digital Transforming
Internal enablers
Internal Barries
Strategic renewal
```
40
External triggers
- Disruptive digital competitors
- Changing consumer behaviours
- Disruptive digital technologies
41
Digital Sensing
- Digital scouting
- Digital scenario planning
- Digital mindset crafting
42
Digital Seizing
- Rapid prototyping
- Balancing digital portfolios
- Strategic agility
43
Digital Transforming
- Navigating innovation ecosystems
- Redesigning internal structures
- Improving digital maturity
44
Internal enablers
- Cross-functional teams
- Fast decision making
- Executive support
45
Internal barriers
- Rigid strategic planning
- Change resistances
- High level of hierarchy
46
Strategic renewal
New:
- Business Model
- Collaborative approach
- Culture
47
CIO Response to enable digital dynamic capabilities
Increase alignment
- Show great leadership
Increase anticipation
- Enable IT as differentiator
Increase adaptability
- Drive fluid culture
48
Organizational Resilience
The ability to maintain functionality of a system when it is disturbed.
OR
the ability to maintain elements required to renew or reorganize if turbulence alters structure of a system
49
Resilience Architecture Framework
Diagram with two dimensions and four quadrants. Horizontal: desirability of system state
Vertical: Resilience
Quadrants: transience, rigidity, vulnerability, adaptability
50
Transience Quadrant
Low resilience, low desirability of system state. Uncertainty
Early in org. development, radical change.
Exploration, Low external connectedness, High selforganizing ability
51
Rigidity Quadrant
High resilience, low desirability of system state. Denial.
Architecture of simplicity, routine rigidity, dysfunctional momentum.
Exploitation, High internal connectedness, Low selforganizing ability
52
Adaptability Quadrant
High resilience, high desirability of state. Adaptive.
Dynamic capabilities, organizational ambidexterity, functional momentum
Balancing exploration and exploitation, High selforganizing ability
53
Vulnerability Quadrant
Low resilience, high desirability of system state. Situational dependence.
Resource Rigidity
Exploitation, High external connectedness. Low selforganizing ability
54
Desirable Organizational Resilience
Adaptability, so Dynamic Capability. Adaptation comes through exploiting existing competencies, and exploring new capabilities. Also called organizational ambidexterity
55
Ambidexterity of Digital
Use digitization to overcome two challanges at the same time:
- Innovate with new digital businesses (add sales chann.)
- Digitize core holdings (transform proc. and tech.)
56
High Reliability Organizations
Organizations that have the potential for catastrophic failure, yet engage in nearly error-free performance (e.g. nuclear powerplants)
57
Five aspects present in HRO's
1. Preoccupation with failure, must notice small failures
2. Reluctance to simplify (keep distinctiveness)
3. Sensitivity to operations (notice nuances)
4. Under-specification of structures (rely on expertise, not hierarchy)
5. Commitment to ability to bounce back (locate recovery paths)
58
Digital Transformation is about...
- New business models
- New types of products/services
- New types of customer experiences
- NOT really about technology
59
Traditional vs. Digital Organizations
Traditional Organizational are:
- Hierarchical
- Emotional
Digitial Organizations are:
- Flatter
- Bottom-up
- Data-driven
- Defined by the ecosystem
60
Lineair Business Model
- Selling products/services to consumer, own 1 side of transaction
- Value is created upstream
- Products have inherent value
61
Platform Business Model
- Facilitation transactions
- Value is co-created
- Platform creates network value
62
Digital Transformation definition
A process that aims to improve an entity by triggering significant changes to its properties through combinations of information, computing, communication, and connectivity
63
Digital Transformation Strategies (DTS)
A blueprint for governing the transformation following integration of digital technologies, including operations after transformation.
Is a stand-alone strategy, not part of IT- or Business strategy
64
Four dimensions of DTS
Use of Technologies
Change in value creation
Structural changes
Financial aspects
65
Use of technologies questions
Strategic role of IT?
| Technological ambition?
66
Changes in value creation questions
Degree of digital diversification?
Revenue Creation?
Future main business scope?
67
Structural changes questions
Responsibility for digital transformation strategy?
Organizational positioning of new activities?
Focus of operational changes?
Building of competencies?
68
Financial aspects questions
Financial pressure on current core business?
| Financing of new activities?
69
Building blocks of DT process
```
Use of digital technologies
Disruptions
Strategic response
Changes in value creation paths
Structural changes
Organizational barriers
Negative and positive impacts
```
70
Outsourcing Phases
Phase 1: Decision Proces
| Phase 2: Implementation
71
Phase 1: Decision Process
Why? (Intelligence)
Determinants, (dis)advantages
What? (Design)
Degree of ownership & -outsourcing
Which? (Choice)
Stakeholders, evaluation
72
Phase 2: Implementation
How?
Vendor selection, relationship building & management
Outcome?
Types of success, determinants of success
73
Important theoretical foundations
Power and politics theories
Resource theories
Transaction Cost theories
74
Power and Politics theories
Choosing for a certain provider can have to do with internal power dynamics. CEO doesn’t trust CIO
75
Resource theories
Resource Based View. A firm is a collection of resources. Resources are central to the firm’s strategy. Resources should be VRAINN
76
Transaction Cost Theory overview
Transactions in the market have a certain cost. Unique theory, because UoA is transaction instead of organization or individual.
77
Transaction Cost
Cost of making a transaction (purchasing, participating in market). Can be:
- finding suppliers
- negotiating prices
- drawing/enforcing contracts
78
Transaction Cost Theory states
Cost and difficulties associated with market transactions sometimes favour in-house production and sometimes favor markets.
79
Transaction Cost formula
```
Δ Production Cost + Δ Transaction Cost
IF:
> 0 - outsource
< 0 - In-house
= 0 - Doesn’t matter
```
80
Dimensions affecting Transaction Cost Theory
Asset specificity
Uncertainty
Frequency
81
Asset Specificity impact on sourcing
Higher specificity = more in-house
82
Uncertainty impact on sourcing
Less uncertainty = more outsourcing
More uncertainty = more in-house
83
Frequency impact on sourcing
Less frequency = more outsourcing
More frequency = more in-house
84
Bounded rationality
People are intendedly rational, but their rationality is limited by their capacity to formulate and solve complex problems and to process information.
85
Opportunism
self-interest seeking: parties could provide false or incomplete info.
86
IT Outsourcing relationship
Relationship is defined by Sourcing and types of services
87
Strategic level structures for contract
define the overall issues such as IT services, Contract periods, price, liabilities, jurisdiction and payment terms.
88
Tactical level structures for contract
project and service elements: milestones, conditions (per hours per rate).
89
Operational level structures for contract
the levels at which these services are to be delivered and the variations allowed
90
Risk categories for software development
```
Cultural
Language and communications
Time-zone differences
Human capital
Understanding the recipient's business processes
Managing scope changes
Size of the contract
```
91
Risk categories for infrastructure management
```
Infrastructure
Geopolitical risk
Security and privacy
Rotating onshore resources (staff rotation) Knowledge transfer
Length of the contract
```
92
Balance Score Card
A performance evaluation framework. Categories:
- Financial Perspective
- Customer perspective
- Internal Business Perspective
- innovation and Learning perspective
For each, define goals and measures.
93
TRPIT
Balance Score Card 2.0, but is more of a strategic roadmap. Emphasizes competency balance rather than development. New categories:
- Financial perspective
- Partner perspective
- Internal Process Perspective
- Leaning & growth perspective
94
Outsourcing Country of Choice
Based on service type and availability of resources. Also consider:
- Language
- Government Support
- Labour Pool
- Infrastructure
- Educational System
- Cost
- Political
- Cultural
- Security and Privacy.
