Lesson 10 Flashcards
IT Standardization definition by (Hanseth et al., 2019)
The activity of establishing and recording a limited set of IT solutions to actual or potential matching problems
IT resources; 6 types
Application Data Hardware Network Security Platform
IT principle
High-level document with general decisions that limit the technology choices
Example; IT resource Application:
“We prefer top used software solutions in the world.”
Technology reference model
Low-level document that specifies the technologies
Example; IT resource Application:
LMS: Instructure’s Canvas
IT Standardization cannot be easily done without?
Business process standardization.
Business process standardization
The extent to which business units will perform the same processes the same way.
Example: McDonald’s burger preparation.
Advantages of business process standardization
Creates efficiency and predictability
Measure and compare different business units
Disadvantages of business process standardization
Limits customization of products/services
Limits local innovation
Requires perfectly good local processes be replaced with standard ones
Business process integration
The extent to which business units share data.
Advantages of business process integration
Share data between related, but separated processes
End-to-end processing
No need to enter data several times
Single face to customers
Disadvantage of business process integration
Requires standard data: a common definition and format of data
Operating Model for IT standardization definition
The necessary level of business process integration and standardization for delivering goods and services to customers.
Dimensions of Operating Model for IT standardization
Business process integration (low vs. high)
Business process standardization (low vs. high)
Four approaches of Operating Model for IT standardization
- Diversification (low integration / low standardization)
- Coordination (high / low)
- Unification (high / high)
- Replication (low / high)
Operating Model for IT standardization enforcement strategies (IVK)
- Voluntary compliance = Diversification
- Strict enforcement / gradual migration = Coordination
- Strict enforcement = Unification
- Strict enforcement / gradual migration = Replication
How IT helps with Innovation? 5 steps
- IT-enabled potential absorptive capacity
- IT-enabled realized absorptive capacity
- Ideated innovation
- IT-Enabled Social Integration Capacity
- Commercialized innovation
Commercialized innovation
Market-available ideas
Measured by: the number of new products and services
Ideated innovation
Knowledge that is created by a firm
Measured by: number of patents of a firm
IT-Enabled Social Integration Capacity
IT that enables the development of social capital
Measured by: number of social (media) applications in a company
Absorptive capacity
Firms’ abilities to manage knowledge.
IT-enabled realized absorptive capacity
Firms’ capacity to leverage (analyze) the knowledge that has been absorbed.
Measured by: number of data analytic applications in a company
IT-enabled potential absorptive capacity
Making the firm amenable to (capable of) acquiring and assimilating (understanding) knowledge.
Measured by: number of data collection and data management applications in a company
Strict enforcement vs. Gradual migration (when to use which one)
Strict enforcement if high urgency for implementation of operating model for IT standardization.
Gradual migration if no/low urgency for implementation of operating model for IT standardization.
