Managing the Information Technology Resource Instructor’s Manual
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CHAPTER 1 – INTRODUCTION
CHAPTER OBJECTIVES
Study of this chapter will enable the student to:
1. Understand the evolution of the organizational role of IT
3. Realize the differences in the IT executives’ view of IT from those of other executives
5. Recognize key IT organization management issues
6. Appreciate the importance of successful IT management
CHAPTER OVERVIEW
This chapter establishes the framework for this textbook by presenting a broad look at the
responsibilities and challenges faced by the CIO and senior IT management in today’s dynamic business
environment. A historical perspective on the expanding role of IT helps to introduce the gaps that
currently exist between IT and business organizations. Technology is now pervasive in most
organizations in the industrialized world. Managing IT well is extremely important to the success of
these organizations.
CHAPTER OUTLINE
I. The Importance of IT and the CIO
II. The Expanding Role of IT
A. A Historical Perspective
III. The Role of IT
A. IT as an Enabler of E-business
B. IT as a Change Agent
C. IT as an Enabler of Globalization
IV. The Gap Between IT and “the Business”
A. IT and E-nough
V. The Difference Between IT and Other Functions
VI. Value of IT – The Productivity Paradox
VII. Overview of the Text: Managing the Information Technology Resource
A. Partnership Maturity
B. Scope and Architecture Maturity
C. Skills Maturity
Managing the Information Technology Resource Instructor’s Manual
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EXAMPLES IN ACTION
• USAA – p. 8
• Levi Strauss & Co. – p. 9
• eBay – p. 10
• Clicks as Transactions – p. 11
• DHL and Global Operations – pp. 13-14
• Dell Computer Corporation – p. 17
• Cisco Systems – p. 18
ANSWERS TO END-OF-CHAPTER REVIEW QUESTIONS
1. What are some of the major ways Information Technology has become more important to
organizations?
2. What are some other examples of disintermediation, reintermediation, hypermediation, and
infomediation?
Disintermediation: Auto insurance and mortgage loans are two additional businesses that have
been greatly changed by the influence of the Internet. One no longer must go through an
3. How does Porter’s Value Chain demonstrate the changing nature of IT’s involvement in the
overall business operation over time?
Managing the Information Technology Resource Instructor’s Manual
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ANSWERS TO END-OF-CHAPTER DISCUSSION QUESTIONS
1. What would you consider some of the key changes in technology over the last 50 years that have
had the most impact on organizations?
2. How are companies you know about, or your own company, organized in terms of the IT
function? Who does the top IT executive or CIO report to?
3. What are some examples of business models that have changed as a result of Information
Technology?
The ‘bricks and mortar’ retail business model has been changed with the introduction of Web–
4. What would you consider the most important factor in improving the ability of IT to play a larger
role in an organization?
5. What are some of the issues IT faces in the global economy?
6. In reviewing some of the other concerns within organizations shown in Figure 1-3, what role
does IT management play? What role does business management play?
IT management has the role of making the technology work within the business context
7. What contributes to the difficulties IT organizations have in demonstrating the value technology
brings to the business goals and results? What is the role of the business function in these
difficulties?
8. How will the role of the CIO continue to change in the future? What is the role of the CTO
relative to the CIO?
9. How do the concepts of this text apply to current changes apparent in your own organization?
How will they shape your own career?