Week 7 - Roadmap and conclusions

Question 1

We use data in business to: (2)

Answer 1

1. become more competitive through changes in strategy and direction
2. Achieve improvements in efficiency and effectiveness

Question 2

measuring gap approach (3)

Answer 2

1. running focus groups of professionals and evaluating subjective measures of the present situation vs. the desired capabilities to achieve the vision
2. x-axis: capability
3. y-axis: dimension

Question 3

IT Strategic Impact Grid (Nolan and McFarlan) (4)

Answer 3

1. Strategic (high reliability, high novelty)
2. Turnaround (low reliability, high novelty )
3. Factory (high reliability, low low novelty)
4. Support (low reliability, low novelty)

Question 4

Support Mode (low reliability - low novelty) (3)

Answer 4

1. no serious consequence even with repeated IT disruptions
2. Mantra: “don’t waste money”
3. Example: restaurant/ clothing store

Question 5

Factory Mode (high reliability - low novelty) (3)

Answer 5

1. even momentary IT disruption can lead to immediate loss of business
2. Mantra: “don’t cut corners”
3. Example: airlines

Question 6

Turnaround Mode (3)

Answer 6

1. new technology promises major process and service improvements, cost reductions, and a competitive change
2. Mantra: “don’t screw up”
3. R&D. Once solution is developed. The mode could change

Question 7

Strategic Mode (high reliability - high novelty) (3)

Answer 7

1. “innovation is the name of the game”
2. Mantra: “spend what it takes, and monitor the results like crazy”
3. Example: the four horsemen: Amazon, Google, Apple, Facebook

Question 8

Porfolio (3)

Answer 8

1. based on analysis, we can create a portfolio of data initiatives
2. cluster based on capability (e.g., all initiatives regarding data security)
3. cluster based on dimension (e.g. every DM project related to users)

Question 9

Execution (2)

Answer 9

1. one projects are selected and implemented the new “as is” situation needs to be evaluated to decide on the next projects
2. even if implemented, it is only successful if end-users adopt it

Question 10

change management within company (3)

Answer 10

1. New procedures and workflows
2. transforms services
3. brings more transparency in reporting (increases control)

Question 11

change management between companies

Answer 11

Changes the customer-supplier relationships and partnerships

Question 12

Endowment Effect (3)

Answer 12

1. the major reason for resisting change is due to users overestimating the value of things they currently own
2. Kahneman and Tversky’s work - losses loom larger than gains
3. consumers value their holdings three times more than the actaul value - same with users of existin systems and practices

Question 13

Change Magnitude (4)

Answer 13

1. long haul (high required behavioral change - high utility)
2. home run (low required behavioral change - high utility)
3. strike out (high required behavioral change - low utility)
4. tinkering (low required behavioral change - low utiltity)

Question 14

Transition Strategies (Gourville 2004) (5)

Answer 14

1. Target new users to a technology (the unattached/unendowed)
2. Make it behavioraly compatible for the attached/ endowed
3. find believers
4. what features are most useful? painful?
5. how is the new system addresssing those?

Question 15

Effective Data Management

Answer 15

1. through effective data management, better decisions could be made that may improve the company’s competitiveness
   purpose:
2. geting a grip on the data landscape and implementing the right audit, governance, and security controls
3. finding ways to create strategic value

Question 16

van Gils recommendations (3)

Answer 16

1. put people first: building DM capabilities collaboration between stakeholders and end users. Building business cases, correct analysis, and change management
2. Take an iterative and incremental appraoch: portfolio of DM initiatives could be extensive. With the changing landscape, the solutions need to continuously change it
3. Do not reinvent the wheel: considering the complexity and pace of change, using and learning form existing practices helps

Question 17

Value of IT investment (ROI)

Answer 17

1. “The relationship between IT and productivity is widely discussed but little understood”

Question 18

IT productivity paradox

Answer 18

benefits of IT spending do not (immediately) show up in aggregate output statistics

Question 19

types of returns (2)

Answer 19

1. direct

2. intangible

Question 20

direct returns (2)

Answer 20

1. for some IT investments, the return can be isolated and directly attributed to the IT
2. Example: Chrysler implemented an electronic data interchange (EDI) application with suppliers. Reductions in cost are directly attributed to IT

Question 21

intangible returns

Answer 21

FedEx online tracking reduces the cost of maintaining toll-free customer service center. The convenience also builds customer loyalty, which is an intangible return.

Question 22

IT ROI Challenges (3)

Answer 22

1. Brynjolfsson and Saunders argue that it takes up to 5 years to see the returns
2. What investments should be considred
   i. IT infrastructure
   ii. IT integration and penetration in the company
3. Calculating intangible returns are difficult, if not possible