ICT Management
What is ICT?
- ICT refers to the very popular and the rapidly developing field of information and communication technology. The term ICT itself is quite comprehensive and covers a wide range of products and services
- What is the task of ICT?: The primary purpose of ICT is to provide users with the tools and functionalities they need to support business processes.
ICT in Organization
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Firm Strategy: The way a company aims to achieve its objectives.
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Firm Culture: The shared beliefs and values that shape organizational decision-making.
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Infrastructure: The technological foundation on which IT systems are built. A company’s existing infrastructure can greatly influence what’s feasible and cost-effective.
Systems view of organizations
ICT Management?
Management : The planning, organizing, leading and controlling of human and other resources to achieve organizational goals effectively and efficiently
Why ICT Management
It’s not just about buying technology; it involves balancing several factors:
- What resources do you have? Understanding your current technological capabilities.
- Vendor recommendations: Evaluating what vendors suggest against your real needs.
- Budgetary constraints: Working within financial limitations.
- Customer demands: Meeting the needs of your customers through technology.
- Employee capabilities: Considering the technical skills and training of your workforce.
ICT Management Components
- IT Governance: Establishing policies, procedures, and frameworks for IT management.
- IT Planning: Developing a strategic plan for the use of IT to achieve business goals.
- IT Performance Management: Monitoring and measuring the effectiveness of IT systems.
ICT Maturity Management Levels
A company’s ability to measure and manage IT performance depends on the maturity of its IT organization, IT planning (including existing cost and performance accounting systems) and the IT management mechanisms that it uses. There are four levels:
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Level 1 (Uncoordinated): IT is managed mostly by technical specialists; there’s little integration with overall business strategy.
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Level 2 (Cost-Oriented): Top management is involved in supervision, but the main focus is cost reduction rather than strategic value creation.
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Level 3 (Service-Oriented): A greater emphasis on providing services to business units; users are involved in prioritization.
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Level 4 (Business-Oriented): IT is fully integrated with business strategy, with cross-functional teams working together. This represents the most mature and effective approach.
Uncoordinated IT management (Level 1)
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On level one, it is the technology specialists in the IT departments who are responsible for developing IT projects
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At top management level none of the members of the board are responsible for IT.
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The business units are only involved in IT planning sporadically or for specific projects, and IT managers and users often talk at cross purposes, one group speaking ‘techie’ language and the others using business terms.
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IT projects that are initiated without bearing any reference to corporate planning are fragmented and uncoordinated
Cost-oriented IT Management (Level 2)
- IT projects are still initiated by the IT department but are supervised by a top management representative.
- Some IT employees communicate using business language, involving key users in planning.
- The primary goal is cost reduction, not value addition.
Service-oriented IT management (Level 3)
- Focus shifts from technology to delivering IT services to individual business units.
- Top management participates in IT decision-making.
- Users act as IT coordinators, prioritizing projects for their units.
- Responsibility for large IT projects is shared between the IT department and business units.
Business-Oriented IT Management (Level 4)
- Involves IT governance committees alongside top management to support user-driven decision-making.
- Projects are prioritized based on their business impact.
- Cross-functional teams from IT and business units share responsibility for project development, implementation, and achieving expected benefit
Challenges for Management in a Global Environment
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Competitive Advantage: Maintaining a competitive edge through technology.
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Efficiency, Quality, Speed, Innovation: Continuously improving these aspects of operations.
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Responsiveness to Customers: Meeting the evolving needs of global customers.
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Ethical Standards: Maintaining high ethical standards in global operations.
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Diverse Workforce: Effectively managing diverse teams.
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Global Crisis Management: Having plans in place to respond to global crises.
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Utilizing IT: Leveraging IT to address these challenges
IT Doesn’t Matter?
Nicolas Carr’s 2003 article questioned IT’s strategic importance, arguing that it was becoming a commodity. However, subsequent technological advancements and Gartner’s analyses strongly suggest that IT remains highly strategic for organizations, providing competitive advantages and aiding in solving complex real-world problems.
Tectonic Shift
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Fifteen to Twenty Years Ago: This period is depicted as a time of relative uncertainty for many key players in the IT industry. Google was nascent, Apple was struggling, music was largely physical (CDs), China’s internet penetration was low, and India’s emergence as a software development hub was just beginning. Social media was largely unknown to the mainstream.
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Today (2019 and beyond): This period is characterized by the enormous success and influence of these very same companies and technologies. Google and Apple have become dominant players; digital music and streaming services have revolutionized the industry. China now boasts the world’s largest internet user base, and India’s tech sector has exploded. Social media is deeply ingrained in society and business.
Technology Trends
Gartner Hype Cycle, a model for visualizing the maturity and adoption of emerging technologies. The graphic displays the stages: Innovation Trigger, Peak of Inflated Expectations, Trough of Disillusionment, Slope of Enlightenment, and Plateau of Productivity.
How do Hype Cycles interpret technology hype? Each Hype Cycle drills down into the five key phases of a technology’s life cycle.
- Innovation Trigger
- Peak of Inflated Expectations
- Trough of Disillusionment
- Slope of Enlightenment
- Plateau of Productivity