Professional Documents
Culture Documents
TABLE OF CONTENT
1. Learning Diary -1: Introduction of MITO Date: 07.07.2018 .................................................................... 5
1.1. Watched 2 Video: .................................................................................................................................... 5
1.2. Why do we need IT? ................................................................................................................................ 5
1.3. #World Economic Forum Tipping Points by 2025 like: ........................................................................... 5
1.4. Understanding of IT Management. ......................................................................................................... 5
1.5. Information system helps for the business in: 6Cs ................................................................................. 5
1.6. What is system? ....................................................................................................................................... 5
1.7. What is an information system? ............................................................................................................. 5
1.8. What is data, information and Knowledge? ........................................................................................... 6
1.9. What is information system? .................................................................................................................. 6
1.10. Learning Assignment-1 ............................................................................................................................ 6
1.10.1. Why understanding IT management is difficult? ............................................................................... 6
1.10.2. Write the TPPSS of any IT applications you are familiar with............................................................ 6
1.10.3. What is the difference between study of information system and computer science. .................... 6
2. Learning Diary -2 Date: 14.07.2018 ...................................................................................................... 7
2.1. TPPSS of any IT applications .................................................................................................................... 7
2.2. Business and IT relationship .................................................................................................................... 7
2.3. What is business Strategy?...................................................................................................................... 8
2.4. What is Scope and What is Reach. .......................................................................................................... 8
2.5. What Is IT strategy? ................................................................................................................................. 8
2.6. IT strategy and Its Component ................................................................................................................ 8
2.7. How IT impacts the business? ................................................................................................................. 9
3. Learning Diary -3 Dated: 21.07.2018................................................................................................... 10
3.1. Strategic alignment: Leveraging information technology for transforming organizations................. 11
3.2. Challenges of business and it alignment ............................................................................................... 12
3.3. Assignment-4 ......................................................................................................................................... 12
3.3.1. What are the four alignment Proposed by Venkatraman and Henderson? .................................... 12
3.3.2. What are the different school of thoughts for achieving business IT alignment? .......................... 14
4. Learning Diary -4 Dated: 28.07.2018 ................................................................................................... 16
4.1. Types of Information System Within Business Organization ............................................................... 16
4.2. ENTERPRISE RESOURCE PLANNING (ERP) ............................................................................................. 17
1.10.2. Write the TPPSS of any IT applications you are familiar with
Ans:
IT applications- SAP
Technology: ERP
Process: database management
People: Any industry worker
Strategy: To increase productivity
Society: Helping in GDP
1.10.3. What is the difference between study of information system and computer science.
Ans:
Information System Computer Science
It is study of application of computer science It is a study to produce an information system
It is use to solve organizational problem It is use to develop an application or software,
that is ultimately use to support IS
Technology
Process
People
Strategy
Society
IT/IS
Business Need
Application/
Implementation
Need
High
Business scope redefinition
Degree of Business Transformation
Revolutionary Level
Business Process Redesign
Internal Integration
Localized Exploitation
Evolutionary Level
Low
4. Organization
1. IT infrastructure
infrastructure
Functional integration
3.3. Assignment-4
3.3.1. What are the four alignment Proposed by Venkatraman and Henderson?
Venkatraman and Henderson has suggested, Strategic alignment, leveraging information technology
for transforming organizations
It consists:
3.3.2. What are the different school of thoughts for achieving business IT alignment?
positioning ensures that business strategy drives IT technology and services acquisition, not vice
versa.
2. Architecture School
The approach adopted by the Architecture School is recommended by several researchers and
followed by the consulting firms. The proponents of the Architecture School first define business
architecture and superimpose IT architecture to achieve the alignment between the two. Further
adds information and structure at the intermediate steps. While information is the glue that binds
business and IT, it is structure that translates strategy into processes and infrastructure. Keeping
information separate from the technology helps in finding what technology we need and why.
Similarly, when we define the organization structure, then only will we be able to articulate the
organization processes and IT support for them.
3. Technology School
The alignment at the technology level does address IT infrastructure management issues such as
service level management, data storage, data reporting and modelling. The lack of alignment for the
common objectives leads to daily war of words or email, affecting day-to-day productivity. The
problem gets further compounded due to the outsourcing of the large part of these services to a
third-party vendor, who will have his organization, profit and people issues. ITIL (Information
Technology Infrastructure Library) frameworks help in the alignment of IT service management.
4. People School
IT team, due to various reasons, such as overwork, lack of appreciation, career path within the
corporation, always ends up as a dissatisfied lot. Work exhaustion of the IT professionals does lead
to dissatisfaction towards work assigned to them. In fact, in the earlier discussion in this chapter, we
talked about task enhancement as well as work rotation to take care of the people issue.
The role of IT in various types of business is that of utility, support, entrepreneur and team player.
These roles were contingent upon whether the organization was a high growth player or matured
market operators, and whether IT plays a tactical or transformational role.
High-performing businesses with a tactical and supporting role for IT require informed and responsive
support from the IT utility; however, they are not generally prepared to invest much tune in IT
governance as it is perceived to have little strategic opportunity. The IT utility should use IT
governance to ensure IT/business alignment and provide periodic visibility of IT's contribution and
value. In high-growth, market-leading companies, governance for the IT partner player is integrated
with business management.
Strategic level: The top of the pyramid is strategic level of management comprising of
executives who make long term decision based not only on internal data but also on external
data like market condition, competition etc. They typically use Executive Support System (ESS)
for decision making.
Decision Support System: These are systems which help in taking decisions for knowledge
level workers like route planning systems used for transportation of materials based on
warehouse and delivery point locations.
Office automation system: There are many systems which are used across the organization at
various levels. E.g. MS Office, E-mail etc.
In today’s rapid changing world, it is imperative for any enterprise to continuously reinvent their
existing business model, so as to keep pace with new possibilities and realities. Developing new
Business model strategies follows one of the strategic alignment models; it goes from Strategic IT
initiative to Business strategy to Business processes, i.e. D-A-B of following Business and IT model:
A Business Model is what a business does and how it makes money in simple terms. Peter Drucker,
legendary Management consultant defines Business Model as the “assumptions about what a
company gets paid for” in year 1994. Over the years, now its stands to convey the bigger sense of
covering the business architecture, customer segments with the firm addresses, and ways through
which it creates value for them and ultimately gets paid, directly or indirectly. Infect, we can say that
Business Model is the value an enterprise creates for its customers. Examples can be Hotmail, being
sold to Microsoft by its promoters for 400 million USD; other examples are E-commerce website of
Amazon or Flip kart. Even YouTube, Google classroom and Socrates can be considered in this category.
Conclusively we can say following about Business Model:
i.Business model includes all activities that the firm has to think and plan in order to deliver what it
promises to the customer. This may include operational ideas, manufacturing, and design, sourcing
logistics and finally, distribution and selling. ‘
ii.Business Model is like a blueprint of the business, depicting how the business runs, who are its target
customers, and how is revenue generated.
iii.Business Model is used to visualize and answer pertinent questions like how it will compete in the
market.
Business Model is very much significant in Modern business. It showcases the value of any enterprise
created for its customers and deep interwoven activities of operational ideas, to manufacturing, to
designing, to logistics to distribution works.
Following points showcases Business Model’s significance in modern business:
i.Business Model tells about firm’s unique value proposition.
ii.Business Model tells about target customer segments and its customers.
iii.Channel strategies of firm’s intent is garnered from Business model.
iv.Business Model talks about judicious mix of decision at various levels, from in house activities to
outsourcing etc
v.Business Model talks about strategies for serving and retaining customers
vi.Business model in somewhat way enhances capabilities of the firm to produce goods and services as
per customer want and needs.
Business model helps in chalking out means and methods to earn revenue, right price decision and how
does firm make money
Why and how a good articulated business can be a source of competitive advantage and
growth of the firm?
i.Purpose of the organisation – Definitions includes covering mission, brands, its ability to serve a target
marketplace and of course, its unique differentiation.
ii.Strategy -- It helps an organisation to achieve the purpose of its existence by converting requirements
into results. Strategy is further articulated in terms of its goals, timelines, resources required and how
will it measure its success.
iii.Assets - Business model includes the assets which an organisation possesses; it may be raw material,
innovation ideas, capital, strong credentials of the team, financial and intellectual property.
iv.Value Proposition – It is the speciality of the firm, making customer to choose it over the competitive
offerings. It also makes difficult for the competitors to emulate it.
v.People – This covers the stakeholders of the firm, including promoters, founders, customers, suppliers
and most importantly, the employees.
Divest Reassess
Stages of Growth-
These stages of IT usage are an organization were labelled as growth stages. They are:
Initiation
Expansion
Control
Integration
Data Administration
Maturity
5.9. Assignment-
5.9.1. Examine the IS planning process used by your organization and with what result?
5.9.5. Technical support in the form of help desk and call management services
Database management services
Document management services
System development and support
World Wide Web access
Computer graphics
Hardware troubleshooting, upgrading, and replacement
Antivirus and firewall services
Systems administration and maintenance
Systems audits
The term ‘Enterprise Architecture’ gave details about its origin. It was first coined by John
Zachman in 1987 to bring out the need of data standards and information sharing
strategies across several systems. Zachman advocated analysis and documentation of an
entire ‘enterprise’.
Several large corporations were using EITA approach to integrate strategic, business and
technology planning process. Several leading consulting firms and IT majors were
deploying EITA tools and skills to help their client link strategy with IT systems. To ensure
that EITA is useful and provides business value, their development, maintenance and
implementation should be managed effectively.
EITA helps in the alignment of business processes with IT systems to meet business
objectives. He pointed out few benefits such as:
Some of the prevalent standards of enterprise IT architecture in brief, which are available
in public domain namely:
ANSI/IEEE Standard1471-2000
TOGAF (The Open Group Architecture Framework)
FEAF (Federal Enterprise Architecture Framework)
Zachman Framework and few others
Portable
Non-redundant
The approach, though generic will be applicable to the entire life cycle of planning, acquisition and
execution of the major enterprise packages (COTS) systems such as:
● ERP
● CRM
● Billing
● Supply chain automation/organization
● Accounting, treasury management, cash management
● E-business and e-commerce
● E-procurement
● E-selling and e-marketing
● Knowledge management
A flowchart for IT application strategy process overview which is as under:
● Low cost
● Changing requirements
● Simple application
● Good talent pool
● Low recurring cost
● Innovative use
Why COTS is necessary in today’s field was explained by Prof Dubey, given as under:
Software Engineering Institute (SEI) defines COTS as product that is sold, leased or licensed to the general
public, offered by a vendor trying to profit from it and is supported and evolved by the vendor, who retains
the intellectual property rights. Some of the major advantages quoted for COTS are:
● Affordability
● Scalability
● Flexibility
● Easy to use
● Good quality
● Accelerating rates of COTS enhancement
● Expending system requirement
● Time to implement may be shorter.
Both COTS and application developed in-house or cloud option would need proper requirement
engineering to ensure that non-functional requirement are grouped under-
● Requirements elicitation: Ascertaining the initial requirements after interaction with stakeholders,
surveys, focus groups, document analysis, observations or prototyping.
● Requirements analysis is the next step to identify and resolve the inconsistencies, ascertaining
missing requirements.
● Requirements documentation is needed to provide input for the subsequent phase of
requirement validation and creating a formal baseline document for future use.
● Requirement validation is done to ascertain the quality of the requirements documentation and
forms a basis of COTS selection.
● Requirements management covers the entire requirements engineering process to co-ordinate
and keep track of all the activities, manage the flow of information and track changes along the
way.
In short requirements engineering is the collection, consolidation and documentation of information about
the characteristics of a desired future state of reality, that will be shaped by the Information System to be
implemented eventually.
● Identification of candidate packages: That can fit the requirements a typical way to identify COTS
candidate meeting the requirement criteria would be to gather preliminary information through
in-house expert sources, internet websites, consultants, magazines and toll available to short list
and index them.
● Defining evaluation criteria and selection process: The process to selecting a suitable COTS
product starts with identifying a number of candidate packages. By further evaluation and
assessment, the choice is narrowed down to a few contenders. Ncube and maiden have defined
this approach of iterative evaluation in the framework, called procurement-oriented requirement
engineering (PORE) that covers the following process steps:
● Step 1: Management procurement process to plan and control the entire selection activity.
● Step 2: Requirement acquisition process to acquire and validate customer requirements, meeting
current system architecture for proper integration with other legacy systems.
● Step 3: Supplier selection process which covers selection criteria, evaluation, ranking and finally,
arriving at the best fit supplier(s).
● Step 4: Software package selection to locate candidate packages, define selection criteria using
customer requirements, evaluate the identified packages by awarding rank.
● Step 5: Contract production to negotiate the legal contract with package suppliers covering
commercial and licensing.
● Step 6: Package acceptance to measure the delivered package or system against the customer’s
original requirements.
Above pictorial representation gives an outlook on identification of package, vendor selection, RFP analysis
(Request for proposal has brief input about vendor details, its business models etc.), system collection etc.
Functional and Non-functional requirements are also evaluated. A typical function wise COTS evaluation
(where COTS --- is A and COTS ---- is B) is given as under;
● Package customization strategy: One important step is to decide what and how much to
customize in the selected COTS package. Even if a best fit package has been selected, it would not
be 100% meeting the organization’s requirements. This could be due to several reasons:
● Details processes steps may vary from what the COTS package has to offer.
● There may be statutory requirement that the COTS package is not meeting.
● There could be some unique customer differentiator that the company wants to offer and is
not provided by the selected COTS package.
● There are desirable requirements that are not supported by the COTS package
3-filter question to accept request for customization.
● Will this lead to additional revenue from the customer or add to customer satisfaction?
● Is this needed to meet statutory provision?
● Will this lead to significant cost saving in the long run?
If the answer is no for all these then such customization should be disallowed.
Akerman’s and Hilden considered 10 factors out of 22 critical success factors identified by Somers for
ERP implementation. Number shows the mean ranking as per Somers study.
8.6. Best Practices for Successful Implementation of COTS defined by Prof Dubey in class is as under:
● Start with clear goals and objectives
● Solicit top management buy-in and involvement
● Careful selection of package to avoid misfit between the package and the business process.
● Re-engineer business process to achieve the benefits of COTS package
● Vendor Capability
● Judicious use of consultants
● People-related change management
● User training and education
Multi-unit implementation alternatives were also briefed by Prof Dubey in class and a graph was plotted
between Technology and process on Y-axis vs Centralization-decision making on X-axis.
● Managing version upgrade- incorporating version upgrades as per the requirement and demand.
● Optimizing performance- fine tuning, performance optimization to take full advantage of the
product.
● Adding new interfaces- to provide necessary application programming interfaces (API) to integrate
with database.
● Customized report development- need for customized report as & when required.
● Managing commercial & support issue with vendor- new agreement for license, AMC and support
charges.
● Measuring benefits & attainment of objectives- calculating ROI, satisfaction with end user,
Periodic survey of the objective attainment.
B) Deployment Models:
● Private Cloud (Own Company, not shared)
● Community Cloud (e.g. Google Dropbox)
● Public Cloud
● Hybrid Cloud
With the growth of IT enabled services, IT has become more popular amongst people and businesses
and therefore there is increase in IT usage and people want to have access to data including audio and
videos and thus Cloud Computing offers the desired service e.g. Facebook, Amazon etc. are able to
provide services to people with the help of Cloud Computing and this is gaining popularity.
Now, Indian and Global IT Companies have started offering Cloud as a service which lowers capital and
operational cost on IT. This concept has been increasing acceptability across industries.
Cloud Computing is defined as “a model for enabling convenient, on-demand network access to a
shared pool of configurable computing resources (e.g. network, servers, storage, applications, and
services) that can be rapidly provisioned and released with minimal management effort or service
provider interaction.”
Successful Examples: Google Docs, Amazon’s Elastic Compute Cloud, Microsoft’s Windows Azure
Platform, IBM’s Smart Business Services, WebEx.
Cloud Computing is gaining momentum against COTS Package due to following reasons:
Its common stock is listed on the New York Stock Exchange with the symbol CRM and is a constituent
of the S&P 500 Index.
10.2. Why has a strategic view for project, program and portfolio management?
When a major IT strategy initiative is undertaken, it is not unlikely that several projects in parallel
would be kicked off in various divisions or functional areas.
Many of them would impact other project initiatives and would be at times dependent on others
to seek or feed data.
All these would need a closer management of resources, such as systems development resources,
user resources as well as financial ones.
For this, a program management office is required to be set up.
10.3. Before starting any large scale, IT interventions set up first (Program Management office) PMO.
Studies show that 80% ROI, 20% reduction in project time, and 30–35% successful project delivery,
whereas companies without a PMO experienced 74% project failure rate.
10.7.1. Learning Pause 8: Write a letter to your management convincing the benefits of establishing
a PMO and the approach you would like to adopt.
Mr. Russel
Head GE Power
Subject: Establishing a PMO for upcoming NTPC power Project.
Sir, currently we are using our legacy tool MTA for the project management of ongoing power project.
I am giving a suggestion to establish a Project Management office (PMO) for upcoming NTPC power
Project, it will help us to increase our productivity and reduce the execution time of the project.
I know some question will come in your mind like
10.8.3. Identify 10 projects of your company and categorize the according to IT portfolio
Management?
GE has started a new business as GE digital, it doing work in area of industrial digitization
with IT