GRA8254 Management of IT
Fall 1999[What's new] [Course overview] [Administrivia] [Detailed seminar plan: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9]
[Assignment discussion group] [General discussion group]
[Prof's home page] [Participants] [Useful links] [Prior courses 1997 | 1998]
This is the home page for the MBA course GRA8254 Management of IT. The page is the primary communications vehicle for the course, containing all information necessary to participate. Suggestions for improvement always welcome.
What's New?
- September 20: Last case now determined and assignment detailed.
- September 6: Stupid error with link to Espen's article on productivity fixed, as well as study question.
- September 2: Some changes to the term paper section -- except for last case, things are now firm. And some design changes on top.
- August 31: Have changed time for Sept. 7 class to 12pm (as mentioned in class).
- August 26: I have changed the format for the emailed assignments -- please mark them GRA8254-x, where x is the assignment number, and include your name (see each question for instructions, or better yet, just click on the link for each assignment).
- August 23: Here's a link to the Dan Bricklin's posting of the original Visicalc as noted by Ian. Incidentally, here's a quote from Dan Bricklin that I think says a lot about how we perceive computers:
"In those days[1979], if you showed it [Visicalc] to a programmer, he'd say 'Yeah, that's neat. Of course computers can do that--so what?'. But if you showed it to a person who had to do financial work with real [paper] spreadsheets, he'd start shaking and say, "I spent all week doing that." Then he'd shove his charge cards in your face."
Dan Bricklin, as quoted in Licklider, T. R. (1989). “10 Years of Rows and Columns.” BYTE 14(13): 384-390.
- August 20: I mentioned, in class, the movie How to Succeed in Business Without Really Trying as a rather funny description of corporate life at the time of Leavitt & Whisler. Turns out the movie and musical has relevance today as well...here's a link to the movie and a critique of a current (?) Broadway production.
- August 16: Date change from September 10 to 7.
- August 10-11: Some calendar changes (switched a few dates around). New grading scheme implemented.
- June 10: Some updating of literature content and the first lecture. Also, see the opening memo to students.
- May 11, 1999: If you are or plan to be a participant in this course, please send mail to Espen Andersen, to have your email address registered.
Course overview
Information technology is increasingly pervasive in all aspects of business or public administration: IT has significant portion of all investments (frequently, information system investements are second only to housing), many of the most difficult decisions (strategic or administrative) to be taken by managers involve information technology, both as medium and content, and many actions (both external and external to the organization) are carried out in information technology, sometimes (for companies in hypercompetitive industries) directly, to steal a march on the competition. The Internet floodwave signals the beginning of an era where most markets will be electronic, and, consequently, competition international.The intent of this course is to give the student an understanding of the role of information technology in organizations, the impact of the rapid technology evolution for business environments, and the challenge of managing the technology (and the organizational units charged with its introduction and support). The discussions will be within three main areas:
- Managing IT for competitive advantage: Understanding how IT can give the organization a competitive advantage, and how to sustain that advantage.
- Managing the IT resource: Understanding the organizational challenges of IT management, the interface between IS and the business, governance models and organizational processes, systems development and delivery.
- Special issues in IT management: Devoted to specific topics facing IS today: The question of outsourcing, the 2000 problem and similar potential catastrophies, system agility and how to achieve it, the specific challenges of the Internet and electronic commerce.
Administrivia
Use of computers
Extensive use of computers (primarily Internet technology) will be an integral activity to the course: Handouts, messages, discussions, some of the literature and some of the hand-ins will be done electronically. All communication between professor and students outside the classroom will be electronically. Students are assumed to be active in discussions and electronic conferences.There will be only very limited training in use of computers or in the vocabulary of computing technology. Students are presumed to have a working knowledge of personal information technology, as well as a reasonable understanding of the different types of information technology (mainframe computers, personal computers, data networks etc.) and applications (transaction systems, data bases, decision support systems, electronic mail and groupware) in a modern organization, such as would be expected from someone who has worked in an organization using these tools for some years. If the student is unfamiliar with this from prior experience, basic computer training will be available in the week-long introduction to the MBA program (contact the MBA administration).
Literature
The main literature of the course are the cases and articles for each class, as well as this book, hereafter referred to as AMM:
- Applegate, L. M., F. W. McFarlan, J. L. McKenney. (1999). Corporate Information Systems Management: Text and Cases. Homewood, Illinois, Irwin/McGraw-Hill.
For students who need an introduction to use of computers in organizations, here are some recommendations:For any other book, well, try my favorite books page.
- A good basic textbook in information technologies and their uses, strongly recommended for students with limited experience of organizational computer use, is Laudon & Laudon: Management Information Systems, 5th edition, Upper Saddle River, NJ: Prentice Hall, 1998.
- An easy to understand and managerially astute "dictionary" of information technology is Peter Keen's Every Manager's Guide to Information Technology: Key Terms & Concepts for Today's Business Leader. Make sure you get the latest edition. WIRED Magazine has published something called The WIRED Style Guide which is a similar effort, quite good. There are "computer dictionaries" on the Internet as well, such as Anchordesk glossary, PC Webopedia, og Whatis.com.
- For a good book on what the revolution in computers and communications means to us, how about Cairncross, F. (1997). The Death of Distance: How the Communications Revolution Will Change Our Lives. Boston, MA, Harvard Business School Press. (This book, as is increasingly common, has its own Web site)
- For those interested in the economic laws underlying the current Internet revolution, try Shapiro & Varian's Information Rules.
- For the Internet challenged, books and texts are almost too numerous to mention, but how about Internet for Dummies? At least it sells well...
Class preparation
Each class will have at least one case, as well as some reading (articles and/or book chapters) associated with it. You are expected to prepare for each class by reading the assigned material, answering the study questions, and mailing the answers asked for (straight email, please, no attachements) to indicated study question (the one marked mail) to the instructor before 21:00 (9pm) the day before class. The answer to the "email" question should be short (no more than 200 words), I am looking for keywords, not filler. The assigned material, as well as the answers sent in by the students, will then be discussed in class. To learn more about discussion-based classrooms and MIS business cases, see 'Learning Information Systems with Cases' by Daniel Szpiro and Derrick Neufeld.Classroom discussion
Classroom discussion is the main interaction between teacher and students in this course. It is crucial both for the students' understanding and the quality of the discussion that the students are intimately familiar with the contents of the case before the lecture begins. Although individual time required to analyze cases varies significantly, experience from the Harvard Business School suggests that students should plan to spend at the very least two hours (more, if lacking in English language skills, business or computer experience) on reading and analyzing each case (exclusive of articles and other course reading), and prepare extensive notes of their analysis to guide them in their discussion. The cases will be accompanied by study questions, which provide guidance in analyzing the case. The articles or book chapters may also help in analysing a case, as well as discussions with your peers.Grading
will be based on the following criteria::Individual participation will be based mainly on the individual student's contribution in the classroom discussion. The weekly individual electronic hand-ins will form part of the participation grade, as will participation in the electronic discussion group. This will be graded on an individual basic: Basically, everyone starts out with a 3.0 (a B) and work their way up or down from there. For each class and for each assignment, a few students will get a 2.0, a few more a 4.0. 3.0 means the contribution was on par with your classmates (understood the main issues, demonstrated preparation and ability to evolve the theme). A 4.0 means the contribution was significantly better than average, 2.0 significantly worse.
Two papers will be submitted, in groups, during the course, as follows:
Each paper is due before class on the day the case is to be taught. A grade will be given within three days. Groups that are not satisfied with their grade have the option to write more than one case and pick the best one.
- Pick one of the following cases: American Airlines (InterAAct), Scandustries, Brooklyn Union, Juul Møller Bokhandel A/S, and prepare a 7-12 page report to the main protagonist, (Max Hopper (AA), Sam Rieber (Scandustries), Bill Ferraudo (Brooklyn Union) and Dag Juul Møller (Juul Møller)) advising him or her on what IS and managerial decisions will be key in the next two years (based on the timing and facts of the case) and what he or she should do about them.
- Based on the case KPMG Peat Marwick U.S.: One Giant Brain, write a memo to Michael DiRomualdo, hired as Chief Knowledge Officer of KPMG in September 1997, on the following:
A tip: It is normally not fruitful to try to find lots of extra information about the company (more than what is in the case). It can, however, be smart to look for information about the industry, unless you know it well or you don't deem industry factors important.
- the nature of KPMG's business and organizational environment and how this has influenced the establishment of a knowledge infrastructure (2-3 pages)
- a strategy for addressing the key challenges in extending and solidifying knowledge management on a global scale within the company (2 pages)
- an outline of what the main content of the services provided by the KWeb and what technology should underlie it (3-4 pages).
Detailed seminar plan
The right to make changes at any time is most explicitly reserved....Date/lecturer Topic & study questions Preparation 0
Monday, August 16
11:00-12:00
Espen AndersenWhat is this case stuff, anyway? How can I survive and get the most out of a case-based course? Read 'Learning Information Systems with Cases' by Daniel Szpiro and Derrick Neufeld. Take a peek at some of the cases.
In class we will discuss the short case "The Incident at Waco Manufacturing".1
Friday August 20
9:00 - 12:00
Espen AndersenIntroduction, course overview, work processes, administrivia, course objectives. What difference does IT make? Study questions:
1. What are Malone & Rockart's key arguments? To what extent do they mirror your own experiences?
2. What role does information technology play at Mrs. Fields?
3.What roles and responsibilities do the managers (i.e., Debbie Fields, the controllers, the line managers, and the store managers) have?
4.Would you like to be a store manager for Mrs. Fields? Why? Why not?
5. What was computing technology like when Leavitt & Whisler wrote their article? What technological and organizational developments did they foresee and which did they miss?Assignment to be submitted to the "assignments" newsgroup:
Write 10 lines on my previous experience of IT in organizations and 10 lines on what I expect to get out of this course. In the 'Subject" field of the assignment, write your name as this: "Charles Babbage, first assignment" (that is, if your name is Charles Babbage....)Read and be prepared to discuss: Further reading (for the especially interested):
- Chapters 1 and 2 of AMM
- Malone, T. W., & Rockart, J. F. (1991). Computers, Networks and the Corporation. Scientific American (September), 128-136.
- Leavitt, H. J., & Whisler, T. L. (1958). Management in the 1980's. Harvard Business Review (November-December), 41-49.
- Case: Mrs. Field's Cookies
- Coase, R. H. (1937). “The Nature of the Firm.” Economica 4: 386-405.
2
Friday August 27
9:00 - 12:00
Espen AndersenUnderstanding strategic use of information technology (I)
We will review some well known cases of strategic use of information technology, specifically the case of American Airlines, famous for its SABRE system.Study question to be mailed in to Espen: (remember to put "GRA8254-2 Charles Babbage" in the subject line (assuming your name is Charles Babbage, otherwise put your own name))
1. What benefits has American Airlines derived from its SABRE computerized reservations system from the 1950's to the 1990's?Study questions:
2. What are the similarities and differences between Hopper and Bower & Christensen's argument about the nature of technological innovation? The differences?
3. How do Porter & Millar's frameworks help us understand the nature of organizational IT use?
4. Porter and Millar's article is 12 years old--is it still applicable?Read and be prepared to discuss: Further reading (for the especially interested):
- Chapter 3 in AMM
- Porter, M. E., & Millar, V. E. (1985). How information gives you competitive advantage. Harvard Business Review(July-August), 149-160.
- Bower, J. L., & Christensen, C. C. (1995). Disruptive Technologies: Catching the Waves. Harvard Business Review (January-February), 43-53. (A different and more focused version on the hard disk story can be found here).
- Hopper, M. D. (1990). Rattling SABRE--New Ways to Compete on Information. Harvard Business Review(May-June), 118-125.
- Copeland, D. G., & McKenney, J. L. (1988). Airline Reservations Systems: Lessons from History. MIS Quarterly(September), 353-370.
- Utterback, J. M. (1994). Mastering the Dynamics of Innovation. Boston, MA, Harvard Business School Press.
- Christensen, C. M. (1997). The Innovator's Dilemma: Why New Technologies Cause Great Firms to Fail. Boston, MA, Harvard Business School Press.
- McKenney, J. L. (1995). Waves of Change: Business Evolution through Information Technology. Boston, MA, Harvard Business School Press.
3
Friday September 3
9:00 - 12:00
Espen AndersenUnderstanding strategic use of information technology (II)
We will look at two cases of companies using information technology to augment existing services or to create new services.Study question to be mailed in to Espen:
1. How is IT giving Otis and Pacific Pride a competitive advantage? (max. 10 lines on each, please remember to put "GRA8254-3 John von Neumann" in the subject line (assuming your name is John von Neumann, otherwise put your own name))Study questions:
2. What technology is typically used at each of Venkatraman's five stages? How has companies' ability to progress up these stages changed with the technology?
3. What are Hammer's principles, and do you agree with them? What are the main obstacles for doing reengineering in corporations?
4. (this one is tricky) How valuable are Pacific Pride's information systems?Read and be prepared to discuss:
- Venkatraman, N. (1994). IT-enabled Business Transformation: From Automation to Business Scope Redefinition. Sloan Management Review (Winter), 73-86.
- Hammer, M. (1990). Reengineering Work: Don't Automate, Obliterate. Harvard Business Review(July-August), 104-112.
- Case: Otisline (A)
- Case: Pacific Pride Services, Inc.
4
Tuesday September 7 Note change of date!!
9:00 - 12:00
Espen AndersenThe economics of investing in and using information technology
One of the hardest problems of managing IT is deciding on how much to spend on IT and understanding what the economic effect of the investment is. We will look at this topic both from the viewpoint of a single company and by examining data from many companies.Study question to be mailed in to Espen:
1. What justifications and goals did American have with InterAAct? How did they evolve over time? (remember to put "GRA8254-4 Grace Murray Hopper" in the subject line (assuming your name is Grace Murray Hopper, otherwise put your own name))Study questions:
2. How does the implementation process and technical architecture of InterAAct meet the project's objectives in Case A? How about in case B?
3.What connections do you see between David's article and the InterAAct project?
4. Imagine you are a CEO worrying about whether you are spending too much or not enough on information technology. How would the InformationWEEK 500 study help you? For help with the analysis, here's an Excel worksheet with the numbers. (Also available as Excel 4.0 workbook and Lotus 1-2-3 v.4) Use Shift-mouseclick to download the file to your own computer, then analyze it there using Excel or another spreadsheet.
5. Why is white-collar productivity not increasing as much as blue-collar productivity?- Read and be prepared to discuss:
Further reading:
- Andersen, Espen (1992). Is IT Worth It?
- Hitt, L., & Brynjolfsson, E. (1996). Productivity, Business Profitability, and Consumer Surplus: Three Different Measures of Information Technology Value. MIS Quarterly, 20(2), 121-142.
- The InformationWEEK 500, InformationWEEK, September 1996. The main article is available here, the individual charts (which correspond to what you have in the spreadsheets) are here, in PDF format. [PDF is a format which works with an Adobe Acrobat reader, which you can download freely.] I suggest you try to analyze one particular industry, for instance Aerospace/Manufacturing, Banking or Telecommunications, and then look at the bigger chart (or spreadsheet) to compare across industries.
- David, P. A. (1985). Clio and the Economics of QWERTY. American Economic Review, 75 (May-June), 332-337. (For an alternative view on this, check out Liebowitz and Margolis' paper on the fable of the keys.)
- Case: American Airlines: The InterAAct Project (A & B)
- Shapiro, C. and H.R. Varian (1999): Information Rules: A Strategic Guide to the Network Economy. Boston, MA: Harvard Business School Press. (check out their web site).
5
Friday September 17
12:00 - 15:00 Note time!
Espen AndersenHow should the Information Systems Resource be governed and organized?
We will see a video with Richard Pawson, and discuss IS management at a large company.Study question to be mailed in to Espen:
1. Which organizational challenges is the reorganization of Scandustries Data meant to address? (remember to put "GRA8254-5 Frederick Brooks" in the subject line (assuming your name is Frederick Brooks, otherwise put your own name))Study questions:
2. How has Norsk Hydro's use of IT developed (hint: Use Venkatraman 1994 article) from the 1970s until now? Which of Venkatraman's (1997) models are appropriate?
3. If you were an employee of Scandustries Data, how would you feel about the reorganization?4. What is the Turing test? Do you think we can create a machine that can pass it? Would that be a thinking machine?
Read and be prepared to discuss: Further reading (as mentioned in class):
- Venkatraman, N. (1994). IT-enabled Business Transformation: From Automation to Business Scope Redefinition. Sloan Management Review(Winter), 73-86. (previously assigned, for class 3)
- N. Venkatraman (1997) Beyond Outsourcing: Managing IT Resources as Value Centers, Sloan Management Review, Spring, pp. 51-64
- Case: Scandustries Data: Transforming the IS function
- Larsen, T. J. (1997). "The Expert's Opinion: An interview with Nils Höeg." Journal of Global Information Management 5(4): 33-35.
- Turing, A. M. (1949). “Computer Machinery and Intelligence.” Mind 59(236): 433-460.
- Bolter, J. D. (1984). Turings Man: Western Culture in the Computer Age. Old Woking, Surrey, UK, Unwin Brothers Ltd. (Man always seen himself in terms of the technology of the times--and now the technology is the computer)
- Dennett, D. C. (1991). Consciousness Explained. Boston, MA, Little, Brown & Co. (What is consciousness--and where in the brain does it reside?)
- Hofstadter, D. M. (1979). Gödel, Esher, Bach: An Eternal Golden Braid. New York, Vintage Books. (Wonderful book on computers, music, art, mathematics and most of all--self-referential systems)
6
Friday September 24
9:00 - 13:00
NOTE TIME!!!
Espen AndersenThe first hour will be spent reviewing cases so far, and discussing preparation techniques.
Developing and delivering information systems. Study question to be mailed in to Espen:
1. Why did the CONFIRM project fail? (Consider technical, organizational and strategic reasons) (remember to put "GRA8254-6 Jay Forrester" in the subject line (assuming your name is Jay Forrester, otherwise put your own name))Study questions:
2. What are the main principles of object oriented programming? For what kind of organizations is it a useful concept?
3. What aspects of Brooklyn Union's use of information technology do you consider advanced? traditional?
4. Why did top management in Brooklyn Union Gas decide to go with CRIS II instead of a more traditionally designed system?
5. What conclusions can you draw from the BUG projects history? From exhibit 4? Exhibit 3?
4. Pawson & al uses the term "expressive"? How is it different from "user friendly"?Extra bonus question:
5. What do you think Tom Morgan looks like? Bill Ferraudo?Read and be prepared to discuss: Further reading (for the especially interested):
- Andersen, E., & Konsynski, B. (1991). What the Hell is OOPS, Anyway? Class Note. Boston, MA: Harvard Business School.
- Haeckel, S. H., & Nolan, R. L. (1993). Managing by Wire. Harvard Business Review(September-October), 122-132.
- Pawson, R., Bravard, J.-L., & Cameron, L. (1995). The Case for Expressive Systems. Sloan Management Review(Winter), 41-48.
- Case: Brooklyn Union Gas: OOPS on Big Iron
- "The Collapse of CONFIRM: What went wrong?", p. 534 in Laudon & Laudon: Management Information Systems, Fourth edition, Prentice-Hall, 1996
- Oz, E. (1994). When Professional Standards are Lax: The CONFIRM Failure and its Lessons. Communications of the ACM, 37(10), 29-36.
- Hopper, M. D. (1990). Rattling SABRE--New Ways to Compete on Information. Harvard Business Review(May-June), 118-125. (already assigned for session 2, use in conjunction with Oz to evaluate CONFIRM.)
- Check out this Salon article on genetic programming.
- Taylor, D. A. (1990). Object-Oriented Technology: A Manager's Guide. Alameda, CA, Servio Corporation. (Excellent short book on what OO is and what it means for software development )
- Rich, B. R. and L. Janos (1994). Skunk Works. New York, Little, Brown. (The history of Lockheed Martin's "skunk works," a highly innovative group of engineers who developed the U2 spy plane, the Black Hawk, and Stealth technology.)
- Brand, Stewart (1995). How Buildings Learn. New York, Penguin Books. (Great book on what makes some buildings great for living in--rather than just looking at)
7
Friday October 1
9:00 - 12:00
Espen Andersen
Rune Berggren, Statoil, will be present in the dicussion of the Statoil case.Outsourcing IS, Collaborative systems
Outsourcing is increasingly popular--we will explore differing views on it, via two articles and one case. Secondly, we will look at the introduction of collaborative technology, partly through the case of Statoil.Study question to be mailed in to Espen:
1. Who is responsible for the Manufact situation? Should John Smith take the offer from Jim Lawler? If he takes the offer, what conditions should he set? (remember to put "GRA8254-7 Stephen Wozniak" in the subject line (assuming your name is Stephen Wozniak, otherwise put your own name))Study questions:
1. What are the main differences between McFarlan & Nolan's view of what outsourcing is and Lacity & Hirschheim's? Why are their views different, and how do the differences influence their conclusions?
2. Why has outsourcing become so popular?Read and be prepared to discuss::
- McFarlan, F. W., & Nolan, R. L. (1995). How to Manage an IT Outsourcing Alliance. Sloan Management Review (Winter), 9-23.
- Lacity, M. C., & Hirschheim, R. (1993). The Information Systems Outsourcing Bandwagon. Sloan Management Review (Fall), 73-86.
- Case: Hostile IS outsourcing: The story of ManuFact
- Case: Statoil: The IT Step (will be handed out in class)
8
Thursday October 7 Note date!
9:00 - 12:00
Espen Andersen
Dag Juul Møller, owner and CEO of Juul Møller Bokhandel, will be present during the discussion of the case.Towards a new era: Internet and Electronic Commerce Study question to be mailed in to Espen:
1. How serious is the threat of Internet competition to Juul Møller? What should Dag Juul Møller do about it? (remember to put "GRA8254-8 Bill Joy" in the subject line (assuming your name is Bill Joy, otherwise put your own name))Study questions:
2. What does the technology shift we are experiencing with Internet mean to established IT users such as American Airlines? What does it mean to the banking industry? Insurance companies?
3. (This is not in any of the articles, but easy to find on the Internet): When was the mouse invented, and by whom? How about the graphical user interface? The laser printer?
4. The technology Nelson describes bears remarkable resemblance to the World Wide Web as we know it today. Why wasn't it operational sooner? Why wasn't Nelson's Xanadu project the leader in its diffusion?
5. What barriers exist to the use of electronic commerce?
6. Does Internet use cause anomie?Read and be prepared to discuss: Further reading (for the especially interested):
- Ted Nelson: A New Home for the Mind?
- Anderson, C. (1997). In Search of the Perfect Market: A Survey of Electronic Commerce. The Economist(May 10).
- Buday, Champy og Nohria's The Rise of the Electronic Community.
- Case: Juul Møller Bokhandel
- if you haven't already figured it out, it may be a good idea to revisit Bower & Christensen's article on "Catching the Wave" or David's article on the QWERTY keyboard, both previously distributed in class
- Kraut, R., V. Lundmark, et al. (1998). “Internet Paradox: A Social Technology That Reduces Social Involvement and Psychological Well-Being?” American Psychologist 53(9): 1017-1031.
- Cairncross, F. (1997). The Death of Distance: How the Communications Revolution Will Change Our Lives. Boston, MA, Harvard Business School Press. See also her article on telecommunications in the Economist.
Hafner, K. and M. Lyon (1996). Where Wizards Stay Up Late: The Origins of the Internet. New York, Simon & Schuster.9
Tuesday October 12 Note change of date!!
9:00 - 13:00 (time extended because of presentations)
Espen AndersenFinal session Each group prepares a paper and hands it in at beginning of class (see above).
Each group will bring a three-slide presentation (on plastic overhead slides), summarizing the group's answer to the questions in the paper. Prepare the presentation as if you were a consulting team charged with supporting Mr. DiRomualdo.
Read and be prepared to discuss:
- KPMG Peat Marwick U.S.: One Giant Brain
- Any article that bears on this case, here are a few links and references (these will not be supplied):
- Nonaka, I. (1991). “The Knowledge-Creating Company.” Harvard Business Review (November-December): 96-104.
- Coopers and Lybrand (now PricewaterhouseCoopers) and their experience with Lotus Notes and Web tools
- Yogesh Malhotra's links on Knowledge Management
Espen Andersen's home page
Last updated: September 29, 1999.