In the often overstated emphasis on efficiency, many companies are turning to packaged IT systems for business process management. University of Michigan Business School professors CK Prahalad and MS Krisnhan suggest that they should be more interested in the strategy - and get line managers and IT managers use information systems in such a way as to facilitate strategic change. New applications portfolio performance helps managers assess information infrastructure before investing. The six main reasons: the role of each IT application strategy, whether it be knowledge embodied in the application (for example, wages in the payroll application) is stable or growing, how much change will be needed if the application is delivered, whether the data are proprietary or state, and freedom of application compliance defects. These parameters are different for different functions. Only those companies that are deeply analyze what they need from each IT application will have the right portfolio. The works of authors from 500 managers shows that few leaders believe that their IT infrastructure can cope with the pressures of deregulation, globalization, ubiquitous connectivity, and the convergence of industries and technologies. Although fully aware of their organizations lack the rapid response and flexibility, leaders rarely know how to fix the lack of connection between the quality of the IT infrastructure and the need for strategic change. Given that information and infrastructure costs are usually between 2% and 8% of company revenues, new measures to fight off are essential. The corresponding change in the thinking of many intellectual skills and line managers and IT managers and helps improve overall competitiveness. "Hide
by CK Prahalad, Krishnan Master of Science Source: MIT Sloan Management Review 12 pages. Publication Date: July 1, 2002. Prod. #: SMR083-PDF-ENG
Related Case Solutions & Analyses:
Unemployment Insurance System at Risk: Snapshot of a Troubled Partnership
Design Matters for Management
Management Learning Not Management Control: The True Role of Performance Measurement
Build Your Own Change Model
Adam Baxter Co.Local 190: 1983 Negotiation Baxter Management Confidential Information
Executive Forum: Technology and Strategic Advantage
Supermarkets in Inner Cities
McDonalds and the Environment (A)
Leaders New Work: Building Learning Organizations
Blue Ridge Spain
