Chapter 12 Writing Assignment

Started:

Jul 12 at 7:59pm

Quiz Instructions

Chapter 12, IT Strategy, Sourcing and Vendor Relationships.

What a company can do depends on what its information systems can do. This principle explains why planning a business strategy in isolation from IT strategic planning will have suboptimal outcomes. As you know, IT is a disruptive force. IT planning helps put the company in a position to positively disrupt how they operate, their business models, and even their industry. CIOs need an IT strategy as well as an operating plan for how the IT strategic plan will be achieved.

By aligning IT and business strategies, companies can build differentiating capabilities – the three or four things that a company does exceptionally well that set it apart from its competitors. The effectiveness of the IT function relies heavily on relationships and vendors and third-party suppliers and on IT governance. IT governance addresses this question: Are you doing what’s right, appropriate, and needed by the business?

1. Turn to page 376 and read IT at Work 12.4: AstraZenica Sources R&D, Manufacturing, and IT
2. Respond to questions 1 through 4
3. Turn to page 378 and read IT at Work 12.5: JP Morgan Chase Moves from Outsourcing to In-sourcing.
4. Respond to questions 1 through 3
5. Turn to page 382 and read Questions for Discussion & Review
6. Respond to questions 1 through 1

1.What will AstraZeneca look like in 2014 after its restructuring and outsourcing strategies have been completed? That is, which functions will be performed by the company and which ones won’t be?

2.What new types of management skills will be necessary?

3.Do you think that this organizational model is the model of the future?

4. IT offshoring is a very controversial issue because it shifts jobs to other countries. At the same time, it has the potential to decrease the organization’s costs significantly. Whether offshoring is good or bad for the people of affected countries is an issue of constant controversy. What are the benefits to AstraZeneca of using offshoring as part of its business and IT strategy?

5.How can one determine when a company is large enough for insourcing?

6.How important is the financial consideration?

7.What other factors need to be assessed in the decision?

8.What might be some reasons why companies consider sourcing?

9.What are the benefits and disadvantages of outsourcing work/jobs to other companies within the country?

10.What are the benefits and disadvantages of offshoring work/jobs to other countries, e.g. to China or India? Compare your answers to your answers to question 1 and 2 about outsourcing and offshoring.

11.What issues does IT governance cover?

12.Why is IT governance the responsibility of the BOD?

13.What does failure to properly align IT with the organizational strategy result in?

14.Why does IT-business alignment continue to be an important issue for CIO’s?

15.What does successful IT-business alignment require?

16. Discuss how a CIO might interact with executive management as technology becomes increasingly central to a business.

17.Three characteristics of resources give firms the potential to create a competitive advantage. Discuss the potential of a firm’s IT resources to add value to a company.

18.Discuss how the partnership between the IT division and business management can extend to fuse with the business.

19.Describe the IT strategic planning process.

20.What tools facilitate IT strategic planning?

 

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