Information Technology For Managers, 2nd Edition Solution Manual

Information Technology For Managers, 2nd Edition Solution Manual helps you prepare for exams with a complete textbook overview.

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Information Technology For Managers1-1Chapter 1Managers: Key to Information TechnologyResultsSolutions to End of Chapter MaterialAnswers to What Would You Do Questions1.A new financial analyst at your firm has been tasked with performing a competitiveanalysisof your firm’s IT spending versus your three top competitors. Over lunch with youand acouple of other recent hires, the coworker shares that her analysis shows your firm isspendingjust over 4 percent of revenue (recent annual revenue for the firm was $150million) onIT while your company’s competitors are all spending less than 3 percent(recent revenueranges from $300 million to $400 million). She asks the group if they thinkthis spending differenceis significant and if she should highlight it in her report. Whatwould you say?Students’ answers will vary.However, students may mention thatorganizations typicallyspend 1 to 6 percent of their total revenueson IT.Thisspending is generally higher forindustries in which IT is more critical tosuccess, such as health care and financial services.IT spending as a percentage of revenueis also typically higher within small organizationsthan large organizations.Students may also mention thatthesenumbers represent rough averages. IT-relatedspending varies greatly, evenamong similar-sized companies within the same industry.While one company may outspenda competitor on IT, it is not necessarily making moreeffective use of IT. The mostimportant consideration is what organizations are getting outof their investments in IT, nothow much they are investing in IT. The most effective usersof IT maximize value from ITinvestments that are aligned with their organization’sstrategic needs and that are well managedand executed.Managers must evaluate ITinvestment opportunities against existing business needs and help frame theseopportunitiesso others can understand them. Managers must provide the leadership torecognize andadvocate for those opportunities that fit with the organization’s businessstrategy.2.Imagine instead that the new Avon order management system was well designedandextremely easy to use. Identify key actions that the Avon management teammust take to

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Information Technology For Managers1-2ensure a successful rollout of an easy-to-use system for the Canadiansales reps.Students’ answers will vary.Students may mention thattoimplement an IT systemsuccessfully,Avonmight need to change itsbusiness processes, worker roles andresponsibilities, reward systems, and decisionmaking.Manyorganizations have tried toimplement a promising new IT system, only to haveemployees never use it or not use thesystem to its full potential. Managersmust beable to overcome this resistance so that thenew IT system is accepted and usedthroughout the organization.Several theories onorganizational change management can help smooth the introductionand adoption of IT.Three such theories are:the ChangeManagement Continuum Model, the Unified Theoryof Acceptance and Use of Technology,and the Diffusion of Innovation Theory.3.The board of directors at City Hospital is determined not to be fined for violation ofHIPAA rules. They asked your consulting group to prepare a comprehensive strategy tocommunicate to employees and contractors the importance of following HIPAAregulations.Brainstorm the key elements of your communications strategy. What actionsmight you request of the board of directors and other executives at the hospital tostrengthen your strategy?Students’ answers will vary.However, students may mention that the introduction ofanenterprise IT system requires large amounts of resources andsignificant changes inprocedures, roles and responsibilities, reward systems, anddecision making. In otherwords, it represents a major organizational change.Managersshouldhave their work cutout to gain acceptance of all these changes.To strengthenthecommunications strategy, theboard of directors and other executives shouldimposestandards and proceduresthat spellout exactly how transactions must be conducted and how the supportinginformation mustbe captured, stored, and shared.Seniormanagementmaysometimes encourage adoption ofenterprise IT by threatening penalties fornonconformance.4.You are the new office manager for a small accounting firm of 12 people. You just receivedacomplaint of an employee viewing pornography while at work. Not only is the employeewastingcompany time but he is also creating a potential liability for a sexual harassmentlawsuit ifthe practice is allowed to continue. What action would you take to handle thissituation?Students’ answers will vary. The office manager should ensure that there is noinappropriate use of IT resourcessuchthatitreducesemployees’productivity. Employeesshould not waste time visiting Web sites unrelated to their work.Additionally,inappropriate use of IT resources to view sexually explicit material could subject the firmto a sexual harassment lawsuit.Failure to ensure that IT risks aremitigated can lead toserious problems, such as business disruptions, data breachesexposing employee and/or

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Information Technology For Managers1-3customer personal data, and legal penalties.Hence, themanager must tell the employeeabout theconsequencesofbreaking the rule.Answers toDiscussion Questions1.Reflecting on what you read in this chapter and looking forward to a successful course,identifythree learning objectives you want to meet this term.Students’ answers will vary.The responsewill be different for every student.2.Identify and briefly discuss an example of an enterprise or interorganizational system withwhich you have recently interacted.Students’ answers will vary. They might describea systemfrom their personal experience.3.Based on your own experience and reading, identify and briefly discuss an example of anorganization that has invested greatly in IT and yet has relatively little to show as a result.Identify and briefly discuss an organization where the opposite is true. To what do youattributethe difference?Students’ answers will vary.However, students may mention thatwhile one company mayoutspenda competitor on IT, it is not necessarily making more effective use of IT. Themostimportant consideration is what organizations are getting outof their investments inIT, nothow much they are investing in IT. The most effective users of IT maximize valuefrom ITinvestments that are aligned with their organization’s strategicneeds and that arewell managedand executed.Managers must evaluate ITinvestment opportunities againstexisting business needs andhelp frame these opportunitiesso others can understand them.Managers must providethe leadership to recognize andadvocate for those opportunitiesthat fit with the organization’s business strategy.4.What percentage of revenue should an organization spend on IT? Explain the rationale foryour answer.On average, organizations spend between 1% and6% oftheir totalrevenue on IT. This canvary greatly depending on what opportunities and threats a given organization is facing.Spending also depends on how wise management is in spending its IT dollars effectively.5.What are the basic reasons that people resist change? How can this resistance beovercome?Four basic reasonsthatpeople resist change are:

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Information Technology For Managers1-4Parochial self-interestsomepeopleare more concerned with the impact ofthechange on themselves than with how it might improve the organization.Misunderstandingsomepeoplehave misconceptions or lack information about thechange.Low tolerance to changesomepeoplerequire security and stability in their work.Different assessments of the situationsomepeopledisagree about the reasons forthe change or do not support the change process.One approach to help overcome resistance to change is to take people through the threephases (inform, educate, and commit) and seven stages (contact, awareness, understanding,positive perception, adoption, institutionalization, and internalization) of the changemanagement continuum model.6.What is meant by management expectations, and how can they affect the acceptance ofnew IT?Management expectationsis the degree of belief that management wants employees to usethe system.Management expectseveryone to use the new technology and to behave in amanner consistent with the new work processes. Management must communicatetheirexpectations, measure progress toward meeting those expectations,and provide feedbackto end users regarding their use of the newinformation system and work process.7.Develop a timeline that identifies the approximate times at which the various stages of theChange Management Continuum Model should occur for the implementation of a majorenterprisesystem. Assume that the project will last 18 months and has these keymilestones:Systems definition complete at 3 monthsSystem design complete at 7 monthsSystem construction complete at 12 monthsSystem testing complete at 16 monthsSystem cutover starts at 18 monthsTheapproximate times at which the various stages of the Change Management ContinuumModelshould occur for the implementation of a major enterprise systemareas follows:Contact at 0 monthAwareness at3 monthsUnderstanding at7 monthsPositive perceptionat 12 monthsAdoptionat 16 monthsInstitutionalizationat 18 months

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Information Technology For Managers1-5Internalizationafter 18 months8.Considering the Diffusion of Innovation theory, which categories of adopters might youenlistto help in gaining acceptance of a new information system? What specifically wouldyou askof these different categories of adopters? Which category of adopters may actuallyimpedethe rollout of a new information system? What can be done to avoid this?Students’ answers will vary. However, some students may mention thatanorganizationshould choose to adopt the category of laggards for gaining acceptance of a newinformation system.In this category, the organizationhasemployees’peers demonstratehow thischange has helped themandbring pressureto bear from other adopters.Theinnovatory category might impede the rollout of a new information system.A successfulenterprise IT system requires the top-down imposition of standards and proceduresthatspell out exactly how transactions must be conducted and how the supportinginformationmust be captured, stored, and shared. As a result, senior managementsometimesencourages adoption of enterprise IT by threatening penalties fornonconformance.9.Identify six key actions managers can take to increase end users’ acceptance and usage of anew information system and associated work processes.Organizations that successfully adopt new technology recognize that managers have acrucial role in leading the successful introduction and adoption of IT. Managers have threecritical responsibilities when it comes to capturing real benefits from IT: identifyingappropriate opportunities to apply IT, smoothing the way for its successful introductionandadoption, and mitigating its associated risks.The key factors of IT acceptance and usage ofa new information system are as follows:UsefulnessEase of useManagement expectationsFacilitating conditions10.Should it be the responsibility of IT or business managers to identify and define tasks forthesuccessful introduction and adoption of a new IT system?Students’ answers will vary. Some students may mention thatITmanagers must evaluateITinvestment opportunities against existing business needs and help frame theseopportunitiesso others can understand them.Businessmanagers must provide theleadership to recognize andadvocate for those opportunities that fit with the organization’sbusiness strategy.ActionNeeded

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Information Technology For Managers1-61.You are a new hire in the Marketing Department and just received a vague text messagefromyour manager asking you to “get involved” in a major new marketing MIS effort.How do yourespond?Students’responses to this messagewill vary.While some students may view it as achallenge and involve themselves in the new marketing effortimmediately, others mayhave queriesabouttheir role, purpose, duration, etc., and may prefer to wait until they haveclarityontheir queries.2.You are a member of the Human Resources Department of a medium-sized organizationthatis implementing a new interorganizational system that will impact employees,customers, andsuppliers. Your manager has requested that you work with the systemdevelopment team tocreate a communications plan for the project. He would like to meetwith you in two hours toreview your thoughts on the key objectives of thecommunications plan. What should thoseobjectives be?Students’ answers will vary.Some students may mention that theobjectives of thecommunication plan should be the key factorsthat determine a user’sIT acceptance andusage. The objectives should also address the reasons employees resist change andconvince them to use the system.3.You are the newest member on the IT development team contracted to implement anenterpriseresource planning system for a small retail chain. You are surprised after theproject’s initialkick-off meeting that no one was there to represent the client. Followingthe meeting, youencounter the project manager in the hallway. What do you say?Students’ answers will vary.Some students may suggest askingthe project managerthereason for the absence of the client in the meeting.Studentsmayalsomentionthat since itwas the project’s initial kick-off meeting, a client representative would have helped themdirect their work in the right direction.Web-Based Casee-Borders Revisited1.In 2003, the United Kingdom’s Immigration and Nationality Directorate (IND) developedthe initial plan of work for the e-Borders program. In 2004, the British government signedathree-year contract with IBM to deliver Project Semaphore, the first deliverable of the e-Bordersproject. In the following years, new government agencies, such as the Joint Border

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Information Technology For Managers1-7OperationsCentre and the National Border Targeting Centre, were created to implement e-Borders.Private contracts were awarded to Raytheon and other IT companies to constructthe ITinfrastructure.Do research online to investigate where the project went wrongduring its 11-year history.Document the actions taken by both government agencies andprivate companies.Students’ answers will vary. Students might perform a Web search to investigate where theproject went wrong during its 11-year history.2.In August 2014, the U.K. courts ordered the Home Office to pay £224 million to Raytheonforbreach of contract after Theresa May, the British home secretary, terminated thecompany’s contractto build the immigration computer system. Explain why you think thecourt decided in favor ofRaytheon in its breach of contract decision.Then, do research todiscover if the government agencies involved with the development of thissystemimplemented lessons learned from the e-Borders’ failures. Do further research to assesswhether the new Border Systems Programme is robust enough to protect U.K. citizensfrom loomingterrorist threats.Students’ answers will vary.Students might perform a Web search toresearch theiranswers.Answers toCase StudyWalmart Reworking Its Supply Chain Management SystemsDiscussion Questions1.Outline a strategy that could be used by Walmart to encourage vendors to not just acceptthenew GRS system and processes but to embrace them. What will it take to implementthesemeasures?Students’ answers will vary.Students may suggest thatWalmart use the key factors of ITacceptance and usage to their advantage and convince its vendors to implement themeasures.2.Write a paragraph that could be included in an email sent to all vendors that explains whyitis to their benefit to participate in the new GRS system and processes and motivates themtoembrace the new program.Students’ answers will vary.However, students may mention that theemail to vendors

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Information Technology For Managers1-8should specify the benefits of using the GRS system, such asreducing costs, saving time,and easeofuse.The main goal is to provide “just-in-time” inventory, so that products siton shelves for as short atime as possible before being replenished. The system is nowbeing tested with a handful of Walmart’slarger vendors.Walmarthopes that this newsystem, along with increased labor hours,will help it overcome its recent shelving woes.3.Identify several measures that could be taken to ease the vendors’ transition to Walmart’snewsystem. Why might it be worth Walmart’s time and effort to do so?Students’ answers will vary.Students may mention that several theorieson organizationalchange management can help smooth the introductionand adoption of IT.Three suchtheoriesare as follows: the ChangeManagement Continuum Model, the Unified Theory ofAcceptance and Use of Technology,and the Diffusion of Innovation Theory.Students maybase their answer around these theories.4.What could Walmart do to provide more support for suppliers in using the new GRSsystem?Students’ answers will vary.Some students may mention thatWalmart couldtrain thesuppliers to use the GRS system and share the cost with the suppliers. Furthermore,Walmart could restructure the “reordering system”such that suppliers can reach theirWalmart contact easily to get their ordering back on track.5.Besides putting in a new GRS system, what else must Walmart do to improve its supplysituationand its relationships with vendors? How important is it for Walmart to maintaingoodvendor relationships?Students’ answers will vary.Students may suggest putting up interorganizationalinformation system with vendors to ease sharing of data for purchase orders, invoices, andpayments. This would even speed up the flow of materials, payments, and informationwhile allowing companies to reduce the effort andcosts of processing such transactions.The companiesshouldwork together to resolve technical issues relatingto data definitionsand formats, database designs, standards to ensure high data quality, andcompatibletechnology infrastructures. The full integration of an interorganizational informationsystem requires new work processes and significant organizational change.

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Information Technology For Managers2-1Chapter 2Strategic PlanningSolutions to End of Chapter MaterialAnswers to What Would You Do Questions1.You were just hired to fill an entry-level position in the customer service organization ofalarge retail store. You are completing the first day of new hire orientation when thetrainershares with your class the set of organizational goals listed in the following bulletedlist.She asks you to identify which of the goals would be considered SMART goals.What isyour response?Achieve 100 percent customer satisfaction within the next year.Improve customer service by 50 percent.Reduce customer complaints about mispriced merchandise from 12 per day to lessthan 3 per day by June 30.The customer is always right.Students’ answers will vary.Students may mention thattheprincipal advantage of SMARTgoals is that they are easy to understand, areeasily tracked, and contribute real value to theorganization. The SMART acronymstands forSpecific, Measurable, Achievable, Relevantand Time constrained. Of the four listed goals, only one of them is a SMART goalreducecustomer service about mispriced merchandise from 12 per day to less than 3 per day byJune 30. This is the SMART goal because:It is specific about what the organization wants to achieve.It iseasy to measurethe organization’s progresstoward accomplishingthe goal.It isachievablefor the organization.Itis relevant to the organizationasit increases customer satisfaction and reducescomplaints from customers.There is a time limit for the organization to reach the goal.2.Johns Hopkins Medicine strives to create a culture in which diversity, inclusion,civility,collegiality, and professionalism are championed through actions,incentives, andaccountability. You are a member of a three-person team within thefinance organizationthat is working under the direction of the CFO to define a setof strategies that will supportJohns Hopkins Medicine’s financial objectives andgoals. The CFO has asked eachmember of the team to speak for five minutes topresent his or her thoughts on two topics:

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Information Technology For Managers2-2(1) Should any resources from outsidethe finance organization be recruited to help identifyand evaluate alternativestrategies? (2) How should potential strategies be evaluated? Whatwouldyou say?Students’ answers will vary.Students may mention thatastrategy describes how anorganization will achieve its vision, mission, objectives, andgoals. Selecting a specificstrategy focuses and coordinates an organization’s resources andactivities from the topdown to accomplish its mission.Creatinga set of strategiesthat will garner committedsupporters across the organization, all aligned with the missionand vision, is key toorganizational success.In choosing from alternative strategies, managers shouldconsiderthe long-term impact of each strategy on revenue and profit, the degree of riskinvolved,the amount and types of resources that will be required, and the potential competitivereaction.In setting strategies, managers draw on the results of the SWOT analysisandconsider the following questions:How canthe organizationbest capitalize onitsstrengths and use them to their fullpotential?How doesthe organizationreduce or eliminate the negative impact ofitsweaknesses?Which opportunities represent the best opportunities fortheorganization?How canthe organizationexploit these opportunities?Willthe organization’sstrengths enableitto make the most of this opportunity?Willthe organization’sweaknesses undermineitsability to capitalize on thisopportunity?How canthe organizationdefend against threats to achieveitsvision/mission,objectives,and goals?Canthe organizationturn this threat into an opportunity?3.You are an experienced and well-respected member of the Chevron human resourcesorganizationand are frequently asked for advice on personnel matters. So you are notsurprisedwhen you receive a call from a member of the IT organization staff asking youropinion ontwo candidates to fill an open position as IT decision maker in the Upstreambusiness unit.An IT decision maker fills a key roleworking with the Upstream business sponsortotailor an IT strategic plan for the business unit and helping to identify and evaluatewhichpotential projects should be staffed and resourced. The IT decision maker musthave agood understanding of how Chevron operates and an appreciation for how IT canmove theorganization ahead. You are familiar with both candidatesKendall Adair andBud Foxfrom working with each of them on a couple of brief special projects.Kendall spent her first 10 years working on oil crews in her native Australia, theCongo,

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Information Technology For Managers2-3Kazakhstan, and Argentina. It was during this time that she earned an onlinebachelor ofscience in geology from the University of Florida. When Chevron began topilot its globalmission control centers five years ago, Kendall was recruited to helpdefine the businessrequirements and evaluate various prototypes. Once the first missioncontrol center wascomplete, she was selected to be the operations manager. Kendall’sleadership andperformance have been outstanding, although she is well known for herfrequent outburstsin meetings as she argues strongly for her point of view.Bud Fox has risen quickly through the ranks during his 10 years at Chevron. Hiseducationincludes undergraduate degrees in both computer science and geological andenvironmental sciences from Stanford (he graduated with honors) and an MBA fromHarvard. Bud has led a number of IT projects in the areas of leak detection using modelingtechnology and the use of high-powered computers and analytics to evaluate seismicdata.He is well regarded for his sound and deliberate decision making.Ken Wilson, the business sponsor for the Upstream business unit for the past three years,isthe person with whom the new IT decision maker will work most closely. His backgroundisstrictly finance, with no real field experience. However, he is a genius at working withtheright people to determine the economic feasibility of various projects. He has an easygoingmanagement style and people find it easy to collaborate with him.Which candidate would you recommend and why?Students’ answers will vary.Some students may be of the opinion that themost suitablecandidate for the IT decision maker designation is Bud Fox. He has more experience withthe firm, has led a number of IT projects,andwell regarded for his soundand deliberatedecision making.Answers toDiscussion Questions1.To what degree do you think an organization’s strategic plan is influenced by the vision,personality,and leadership capabilities of the CEO? Do research to identify an example ofastrategic plan developed by a CEO you consider to be a strong, charismatic leader.Brieflysummarize the notable aspects of this plan.The CEO of an organization must make long-term decisions about where the organizationis headed and how it will operate, and has ultimate responsibility for strategicplanning.Subordinates, lower-level managers, and consultants typically gather usefulinformation,perform much of the underlying analysis, and provide valuable input. Butthe CEO mustthoroughly understand the analysis and be heavily involved in settinghigh-level businessobjectives and defining strategies. The CEO also must be seen as achampion and supporter

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Information Technology For Managers2-4of the chosen strategies or the rest of the organization isunlikely to “buy into” thosestrategies and take the necessary actions to make it allhappen.Students’examples of astrategic plan developed by a CEO they consider to be a strong and charismatic leaderwillvary.2.Identify an event that would trigger a need to redefine the organization’s vision/missionstatement.Students’ answers will vary.Students’ examples of an event that would trigger a need toredefine the organization’s vision/mission statement will vary. However, students maymention that thevision/missionstatements seldom change once they areformulated.Theorganization’s vision/mission statement forms afoundation for making decisionsandtaking action. The most effective vision/missionstatements inspire and requireemployeesto stretch to reach its goals.3.What would it imply if, while performing a SWOT analysis, an organization could notidentifyany opportunities? What if it could not identify any threats?If an organization cannot identify any opportunities, it may mean that the industry in whichit competes is dying or that its employees lack imagination and creativity. Either way, theorganization is in serious trouble. If an organization cannot identify any threats, it lacksunderstanding of the industry and environment in which it competes. It is likely to be hitwith an unexpected threat that has serious negative consequences for the organization.4.How would you distinguish between an organizational weakness and a threat to theorganization?How would you distinguish between a strength and an opportunity?Students’ answers will vary. Students may mention that athreat is an indication ofsomething impending that may negatively impact an organization. Threats are consideredto occur in situations in which the organization has little control, such as a threat from acompetitor or worldwide economic conditions.A weakness is a fault or defect that alreadyexists within the organization. Typically, an organization can take action to eliminate itsweaknesses.A strength is an existing strong attribute or inherent asset of the organization.An organization builds on its strengths. An opportunity presents a good chance for anorganization to make an improvement of some type.5.Brainstorm an approach you might use to gather data to identify the strengths andweaknessesof a competing organization. Identify resources, specific tools, or techniquesyou might applyto gain useful insights.Students’ answers will vary. They may describe different approachesthatan organization

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Information Technology For Managers2-5might use to gather data to identify the strengths and weaknesses of a competingorganization.Students may mention thatalllevels and business units of an organizationmust be involved in internally assessing its strengths and weaknesses. Creating a historicalperspective that summarizes the organization’s development is one way to beginconductingan internal assessment. Surveys of customers and suppliers are often used toidentify strengths and weaknesses of organizational processes. Analysis of this data canreveal how well the organization is meeting current objectives, goals, and measures ofperformance. Where possible, internal processes of the organization can be compared tocompetitors in terms of speed, cost, and meeting customer expectations.6.Would you recommend that an organization set BHAGs? Why or why not? Identify anexample of a BHAG from a real organization. Was that BHAG achieved?Students’ answers will vary.Students may mention that someorganizations encourage theirmanagers to set Big Hairy Audacious Goals (BHAGs) that require a breakthrough in theorganization’s productsorservices to achieve.Such a goal “may be daunting and perhapsrisky, but the challenge of it grabspeople in the gut and gets their juices flowing andcreates tremendous forwardmomentum.”7.Discuss what it means to deploy an organization’s strategic plan. Why is deploymentimportant?Outline an effective approach for a medium-sized organization with operationsin sixstates to deploy its strategic plan.The strategic plan defines objectives for an organization, establishes SMART goals, andsets strategies on how to reach those goals. These objectives,goals, and strategies are thencommunicated to the organization’s business units and functional units so that everyone is“on the same page.” The managers of the various organizational units can then developmore detailed plans for initiatives, programs, and projects that align with the firm’sobjectives,goals, and strategies. Alignment ensures that the efforts will draw on thestrengths ofthe organization, capitalize on new opportunities, fix organizationalweaknesses, and minimizethe impact of potential threats.Students may outlinedifferentapproachesto deploy strategic planfor a medium-sized organization with operations in sixstates.8.In comparing two potential IT projects, one project has an economic rate of return of 22percentbut does not directly relate to any identified strategic objectives. Another projecthas noapparent tangible benefits but strongly contributes to an important strategicobjective. Whichproject would you support? Explain why.Students’ answers will vary. However, students may mention thatpreliminarycosts andbenefitsshould beweighed to see ifaproject has anattractive rate of return. Unfortunately,

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Information Technology For Managers2-6costs and benefits may not be wellunderstood at an early phase of the project, and manyworthwhile projects donot have benefits that are easy to quantify.Risk is another factor toconsider. Managers must consider the likelihood thatthe project will fail to deliver theexpected benefits; the actual cost will besignificantly more than expected; the technologywill become obsolete beforethe project is completed; the technology is too “cutting edge”and will notdeliver what is promised; or the business situation will change so that theproposed project is no longer necessary.ActionNeeded1.You are afacilitatorfor a strategic planning session for a new, small organization that wasspun off from a much larger organization just six months ago. The CEO and four seniormanagersinvolved in the session seem drained at the close of the first day of a two-dayoff-sitemeeting. As the team discusses their results, you are struck by how conservativeand uninspiringtheir objectives and goals are. What do you do?Students’ answers will vary.However, students may mention thata goal is a specific resultthat must be achieved to reach an objective.Ithelpsmanagersdetermine if a specificobjective is being achieved. Results, determined by how well thegoals are met, provide afeedback loop.Studentsmay suggest encouraging managers toset Big Hairy AudaciousGoals(BHAGs) that require a breakthrough in the organization’s products or services toachieve. Such a goal “may be daunting and perhaps risky, but the challenge of it grabspeople in the gut and gets their juices flowingand creates tremendous forwardmomentum.The use of so called SMART goals has long been advocated by management consultants.The principal advantage of SMART goals is that they are easy to understand, areeasilytracked, and contribute real value to the organization.2.You are a member of the finance organization of a mid-sized manufacturer. You serve as aliaisonbetween the finance group and the IT organization for budget review. The ITorganization has justcompleted its annual strategic planning and budgeting process. Theirplans, which include a $10million budget (a 6 percent increase over last year), wereforwarded to you for review by the recentlyhired CIO. Frankly, you do not understand theplan, nor do you see a close connection between theproposed projects and the strategicgoals of the organization. The CIO is on the phone, asking tomeet with you to discuss hisplans and budget. How do you respond?Students’ answers will vary.By all means,the memberacting as the liaison betweenthefinancegroup and the ITorganization shouldagree to meet with the new CIO at the earliestpossible time. There is a definite disconnect between the ITorganizationand businessstrategy.The membercannot allow IT and company resources to be wasted working on

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Information Technology For Managers2-7things that are not contributing to the strategic goals of the organization.The membershould tell the CIO thathe/sheexpectsthe CIOto clarify the connection between the ITand business strategy beforehe/she iswilling to support the IT strategy.3.You are pleased to find yourself sitting in the office of the CIO along with four other newemployees in the IT department. The CIO welcomes you all to the firm and firmly shakeseachof your hands. She expresses her hope that you all will bring some exciting new ideasto thecompany. She then switches the topic to the three-day annual strategic planning off-site meetingfor senior IT managers coming up in a few weeks. The CIO expresses herconcern that thesenior managers simply do not have the time to stay current with the latesttechnology developmentsand that this lack of knowledge may limit their strategicthinking. She asks, “Whatcan be done to provide us with a quick update on those technicaldevelopments pertinent toour firm and industry? Any ideas?” Your heart is racing; it isclear she actually wants you totry to answer the question. What do you say?Students’ answers will vary.Thenewemployee could suggest that the organizationusegoal-based strategic planning, Porter’s Five Forces Model, or SWOT matrixto find outwhich technical developments are pertinent to the firm and its industry.Web-Based CaseJobs vs. Cook1.Do research to compare and contrast the leadership styles ofthe two CEOs. (You may wishto view the 2013 movie Jobs, which portrays the story of SteveJobs’ ascension fromcollege dropout to Apple CEO.) Which CEOJobs or Cookdo you thinkdeveloped andexecuted the most effective strategic plan? What evidence can you find to supportyouropinion?Students’ answers will vary.Studentsmight perform a Web search tocompare and contrastthe leadership stylesof the two CEOsSteve Jobs and Tim Cookandsubstantiatetheiropinions.Case StudyStrategic Plan: Company of Your Choice1.Choose a company that interests you and document its strategic plan. Include thefollowing:
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