ITG&SS - Terminology Flashcards

1
Q

Key IT Decisions

A
IT principles
IT Architecture
IT Infrastructure strategies
Business Application needs
IT Investment & prioritization
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2
Q

Governance Archetypes

A
Business Monarchy
IT Monarchy
Feudal
Federal
IT Duopoly
Anarchy
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3
Q

IT Principles

A

High level statements about how IT is used

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4
Q

IT Architecture

A

Technical choices to guide to organization in satisfying business needs. A set of policies and rules

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5
Q

IT Infrastructure strategies

A

Strategies for the base foundation of budgeted-for IT Capability (technical & human)

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6
Q

Business application needs

A

Specifying the business need for purchased or develop IT application

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7
Q

IT Investment and prioritization

A

Decisions about how much and where to invest including project approval and justification techniques

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8
Q

IT Governance formal definition (Alan Calder & Steve Watkins, 2005)

A

The framework for leadership, organizational structures, business processes, standards and compliance, which ensures that the organization’s information systems support and enable the achievement of its strategies and objectives.

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9
Q

Course definition IT

A

Specifying the framework for decision rights and accountabilities to encourage desirable behavior in the use of IT

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10
Q

IT Governance is important because

A

It influences the benefits received from IT investments

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11
Q

Does IT Matter? (Carr, 2003)

A

IT has become a commododity, as a result this means that IT will no longer provide a sustainable competitive advantage.

IT has become a qualifier, it is no longer a differentiator

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12
Q

Business Monarchy

A

C-suite (including CIO) is responsible for all five major IT decision. IT executives may NOT act independently

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13
Q

IT Monarchy

A

CIO and IT executives make all five major IT decision types

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14
Q

Feudal

A

Business units make all major decision types

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15
Q

Federal

A

Decisions are made involving two different levels (e.g. BU leader + CxO). IT executives may be part of it. Not common

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16
Q

IT Duopoly

A

BU leader or CxO + IT executives make decisions

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17
Q

Anarchy

A

Not very common, not truly a governance form

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18
Q

Most common pattern for firms regarding governance Archetypes

A

Federal for input across all major decision types. Decision mostly comes from Duopoly/ Federal/ IT Monarchy

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19
Q

IT Governance three questions

A

What decisions must be made to ensure effective management and use of IT?

Who should make these decisions?

How will these decisions be made and monitored?

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20
Q

Strategic Alignment

A

The same strategic decisions/goals for IT as well as the Business

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21
Q

Factors dictating variations

A
  • Strategic and performance goals
  • Organizational structure
  • Governance experience
  • Size and diversity
  • Industry and regional differences
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22
Q

Four aspect affecting governance performance

A
  • Cost effective use of IT
  • Effective use of IT for asset utilization
  • Effective use of IT for growth - Effective use of IT for business profit
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23
Q

Effective Governance Patterns

A
  1. For enterprises with lot of synergy. IT finely tuned to business, with strong trust.
  2. For enterprise with few synergies. Duopoly for app. needs, because less need to coordinate across BUs
  3. Very centralized. Used in firms with single BU or where profitability or cost control is big issue.
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24
Q

Governance pattern 1

A
Principles - Duopoly
Architecture - IT Monarch.
Infrastructure - IT Monarch. 
B. App. needs - Federal
Investment & prioritization - Duopoly
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25
Q

Governance pattern 2

A
Principles - Duopoly
Architecture - IT Monarch.
Infrastructure - IT Monarch. 
B. App. needs - Duopoly
Investment & prioritization - B. monarch.
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26
Q

Governance pattern 3

A
Principles - B. monarch.
Architecture - B. monarch.
Infrastructure - B. monarch. 
B. App. needs - Federal
Investment & prioritization - B. monarch.
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27
Q
A
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28
Q

Governance Critical Success Factors

A
  • Transparency
  • simplicity
  • aligned incentives
  • education about IT governance.
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29
Q

Dealing with uncertainty (lenses)

A
  • Environmental Dynamism
  • Dynamic Capabilities
  • Organizational resilience
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30
Q

Environmental Dynamism

A

Model by Ansoff and McDonnel, detailing five levels of turbulence. Stages are:

  • Repetitive
  • Expanding
  • Changing
  • Discontinuous
  • Surprising
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31
Q

Repetitive turbulence level

A

Level 1

  • National economic
  • Familiar events
  • Slower change than response
  • Recurring future
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32
Q

Expanding turbulence level

A

Level 2

  • Events are extrapolable
  • Future is forecastable
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33
Q

Changing turbulence level

A

Level 3

  • Regional technological
  • Change comparable to response
  • Predictable future
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34
Q

Discontinuous turbulence level

A

Level 4

  • Global sociopolitical
  • Disc./Novel events
  • Faster change than response
  • Unpredictably surprising future
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35
Q

Best model for each stage

A

First stage: Porter, five forces
Third Stage: Resource Based View
Fourth Stage: Dynamic Capabilities

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36
Q

Dynamic Capabilities

A

Enables company to create, deploy and protect intangible assets. Create resource combinations that are have value and are difficult to imitate. Source of sustainable advantage

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37
Q

Dynamic Capabilities foundations

A

Skills, processes, procedures, organizational structures, decision rules and disciplines that motivate sensing, seizing and transforming own capabilities

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38
Q

Digital Dynamic Capabilities

A

Is Dynamic Capabilities optimized through digital technologies

39
Q

Digital Dynamic Capabilities elements

A
External Triggers
Digital Sensing
Digital Seizing
Digital Transforming
Internal enablers
Internal Barries
Strategic renewal
40
Q

External triggers

A
  • Disruptive digital competitors
  • Changing consumer behaviours
  • Disruptive digital technologies
41
Q

Digital Sensing

A
  • Digital scouting
  • Digital scenario planning
  • Digital mindset crafting
42
Q

Digital Seizing

A
  • Rapid prototyping
  • Balancing digital portfolios
  • Strategic agility
43
Q

Digital Transforming

A
  • Navigating innovation ecosystems
  • Redesigning internal structures
  • Improving digital maturity
44
Q

Internal enablers

A
  • Cross-functional teams
  • Fast decision making
  • Executive support
45
Q

Internal barriers

A
  • Rigid strategic planning
  • Change resistances
  • High level of hierarchy
46
Q

Strategic renewal

A

New:

  • Business Model
  • Collaborative approach
  • Culture
47
Q

CIO Response to enable digital dynamic capabilities

A

Increase alignment
- Show great leadership

Increase anticipation
- Enable IT as differentiator

Increase adaptability
- Drive fluid culture

48
Q

Organizational Resilience

A

The ability to maintain functionality of a system when it is disturbed.

OR

the ability to maintain elements required to renew or reorganize if turbulence alters structure of a system

49
Q

Resilience Architecture Framework

A

Diagram with two dimensions and four quadrants. Horizontal: desirability of system state
Vertical: Resilience
Quadrants: transience, rigidity, vulnerability, adaptability

50
Q

Transience Quadrant

A

Low resilience, low desirability of system state. Uncertainty

Early in org. development, radical change.

Exploration, Low external connectedness, High selforganizing ability

51
Q

Rigidity Quadrant

A

High resilience, low desirability of system state. Denial.

Architecture of simplicity, routine rigidity, dysfunctional momentum.

Exploitation, High internal connectedness, Low selforganizing ability

52
Q

Adaptability Quadrant

A

High resilience, high desirability of state. Adaptive.

Dynamic capabilities, organizational ambidexterity, functional momentum

Balancing exploration and exploitation, High selforganizing ability

53
Q

Vulnerability Quadrant

A

Low resilience, high desirability of system state. Situational dependence.

Resource Rigidity

Exploitation, High external connectedness. Low selforganizing ability

54
Q

Desirable Organizational Resilience

A

Adaptability, so Dynamic Capability. Adaptation comes through exploiting existing competencies, and exploring new capabilities. Also called organizational ambidexterity

55
Q

Ambidexterity of Digital

A

Use digitization to overcome two challanges at the same time:

  • Innovate with new digital businesses (add sales chann.)
  • Digitize core holdings (transform proc. and tech.)
56
Q

High Reliability Organizations

A

Organizations that have the potential for catastrophic failure, yet engage in nearly error-free performance (e.g. nuclear powerplants)

57
Q

Five aspects present in HRO’s

A
  1. Preoccupation with failure, must notice small failures
  2. Reluctance to simplify (keep distinctiveness)
  3. Sensitivity to operations (notice nuances)
  4. Under-specification of structures (rely on expertise, not hierarchy)
  5. Commitment to ability to bounce back (locate recovery paths)
58
Q

Digital Transformation is about…

A
  • New business models
  • New types of products/services
  • New types of customer experiences
  • NOT really about technology
59
Q

Traditional vs. Digital Organizations

A

Traditional Organizational are:

  • Hierarchical
  • Emotional

Digitial Organizations are:

  • Flatter
  • Bottom-up
  • Data-driven
  • Defined by the ecosystem
60
Q

Lineair Business Model

A
  • Selling products/services to consumer, own 1 side of transaction
  • Value is created upstream
  • Products have inherent value
61
Q

Platform Business Model

A
  • Facilitation transactions
  • Value is co-created
  • Platform creates network value
62
Q

Digital Transformation definition

A

A process that aims to improve an entity by triggering significant changes to its properties through combinations of information, computing, communication, and connectivity

63
Q

Digital Transformation Strategies (DTS)

A

A blueprint for governing the transformation following integration of digital technologies, including operations after transformation.

Is a stand-alone strategy, not part of IT- or Business strategy

64
Q

Four dimensions of DTS

A

Use of Technologies
Change in value creation
Structural changes
Financial aspects

65
Q

Use of technologies questions

A

Strategic role of IT?

Technological ambition?

66
Q

Changes in value creation questions

A

Degree of digital diversification?
Revenue Creation?
Future main business scope?

67
Q

Structural changes questions

A

Responsibility for digital transformation strategy?
Organizational positioning of new activities?
Focus of operational changes?
Building of competencies?

68
Q

Financial aspects questions

A

Financial pressure on current core business?

Financing of new activities?

69
Q

Building blocks of DT process

A
Use of digital technologies
Disruptions
Strategic response
Changes in value creation paths
Structural changes
Organizational barriers
Negative and positive impacts
70
Q

Outsourcing Phases

A

Phase 1: Decision Proces

Phase 2: Implementation

71
Q

Phase 1: Decision Process

A

Why? (Intelligence)
Determinants, (dis)advantages

What? (Design)
Degree of ownership & -outsourcing

Which? (Choice)
Stakeholders, evaluation

72
Q

Phase 2: Implementation

A

How?
Vendor selection, relationship building & management

Outcome?
Types of success, determinants of success

73
Q

Important theoretical foundations

A

Power and politics theories
Resource theories
Transaction Cost theories

74
Q

Power and Politics theories

A

Choosing for a certain provider can have to do with internal power dynamics. CEO doesn’t trust CIO

75
Q

Resource theories

A

Resource Based View. A firm is a collection of resources. Resources are central to the firm’s strategy. Resources should be VRAINN

76
Q

Transaction Cost Theory overview

A

Transactions in the market have a certain cost. Unique theory, because UoA is transaction instead of organization or individual.

77
Q

Transaction Cost

A

Cost of making a transaction (purchasing, participating in market). Can be:

  • finding suppliers
  • negotiating prices
  • drawing/enforcing contracts
78
Q

Transaction Cost Theory states

A

Cost and difficulties associated with market transactions sometimes favour in-house production and sometimes favor markets.

79
Q

Transaction Cost formula

A
Δ Production Cost + Δ Transaction Cost
IF:
> 0 - outsource
< 0 - In-house
= 0 - Doesn’t matter
80
Q

Dimensions affecting Transaction Cost Theory

A

Asset specificity
Uncertainty
Frequency

81
Q

Asset Specificity impact on sourcing

A

Higher specificity = more in-house

82
Q

Uncertainty impact on sourcing

A

Less uncertainty = more outsourcing

More uncertainty = more in-house

83
Q

Frequency impact on sourcing

A

Less frequency = more outsourcing

More frequency = more in-house

84
Q

Bounded rationality

A

People are intendedly rational, but their rationality is limited by their capacity to formulate and solve complex problems and to process information.

85
Q

Opportunism

A

self-interest seeking: parties could provide false or incomplete info.

86
Q

IT Outsourcing relationship

A

Relationship is defined by Sourcing and types of services

87
Q

Strategic level structures for contract

A

define the overall issues such as IT services, Contract periods, price, liabilities, jurisdiction and payment terms.

88
Q

Tactical level structures for contract

A

project and service elements: milestones, conditions (per hours per rate).

89
Q

Operational level structures for contract

A

the levels at which these services are to be delivered and the variations allowed

90
Q

Risk categories for software development

A
Cultural
Language and communications
Time-zone differences
Human capital
Understanding the recipient's business processes
Managing scope changes
Size of the contract
91
Q

Risk categories for infrastructure management

A
Infrastructure
Geopolitical risk
Security and privacy
Rotating onshore resources (staff rotation) Knowledge transfer
Length of the contract
92
Q

Balance Score Card

A

A performance evaluation framework. Categories:

  • Financial Perspective
  • Customer perspective
  • Internal Business Perspective
  • innovation and Learning perspective

For each, define goals and measures.

93
Q

TRPIT

A

Balance Score Card 2.0, but is more of a strategic roadmap. Emphasizes competency balance rather than development. New categories:

  • Financial perspective
  • Partner perspective
  • Internal Process Perspective
  • Leaning & growth perspective
94
Q

Outsourcing Country of Choice

A

Based on service type and availability of resources. Also consider:

  • Language
  • Government Support
  • Labour Pool
  • Infrastructure
  • Educational System
  • Cost
  • Political
  • Cultural
  • Security and Privacy.