1. By changing the way his group talks about IT investments, CIO Tim Schaefer is trying to change the way the rest of the company sees IT. Why do you think this is necessary? What would be the prevailing mindset about IT in his company, such that he needs to do something about it? Provide some examples of how IT may be regarded in this organization. It’s necessary for IT to be able to communicate effectively in the language or languages used by the businesses they serve. In the case of Northwestern Mutual Life, the business operates using terminology related to investments, returns, and risk. Utilizing a shared language helps to break down communication barriers between IT and the business unit. Previously, there was a perception that IT existed in its own distinct reality, with its own specialized language and knowledge. Schaefer used descriptors such as "separate," "distinct," "opaque," and "specialized knowledge" to characterize how Northwestern Mutual Life viewed his organization. He aimed to shift this perception towards viewing his organization in terms of assets with values, returns, and risks, terms that were familiar to business managers.
2. Chip Gliedman of Forrester Research breaks down IT risks into implementation and impact considerations. Why do you think these are so difficult to manage? What makes IT investments different from investments in other areas of a company? Regarding the challenges in management, IT projects present difficulties, with the terms "implementation" and "impact" encompassing all aspects of the project lifecycle except maintenance. Implementations in IT entail unique challenges due to the frequent involvement of new and untested technologies. Additionally, managing the impact of IT initiatives is notably challenging as it often necessitates cultural and personal adjustments, which can be met with resistance. For instance, any alterations to interfaces on platforms like Facebook™ prompt widespread complaints. Changes in communication patterns, job expectations, and incentive structures elicit even more significant reactions. It is this human factor that renders managing the impact particularly demanding. The key difference between a significant IT project and building a new manufacturing plant is that while the latter typically involves minimal behavioral changes, the former often requires substantial shifts in job roles, communication methods, and compensation structures. Unlike the 1970s, when factory automation led to increased productivity but also massive layoffs, the IT revolution similarly affects mid-level management. However, mid-level managers now have the capacity to resist unwelcome changes passively, posing a challenge that IT managers must actively address. 3. Do you agree with the notion that IT investments can be treated in the same manner as financial investments, and similarly quantified by putting a dollar value to them? Why or why not? Would your answer change depending on the type of IT investment under consideration? I disagree because when dealing with larger projects, business managers must take into account not only the basic costs and risks of a new project but also factors such as the competitive landscape, regulatory requirements, and the organization's strategic objectives. Assessing these aspects can be challenging and often defies straightforward quantification. I would change my answer since the size and complexity of a project should influence the level of scrutiny applied by managers when assessing an IT investment proposal. Smaller, high-value projects should require only a fraction of management's time and attention.
Real world activities:
3. Go online and search for examples of IT projects that have been successful, as well as those that have failed. Make a list of the different factors that seem to influence the outcome of these implementations. Can you group them into the categories discussed in the case? Which seem to be the most important? Prepare a presentation to share your findings. Successful IT Project Examples: 1. The adoption of customer relationship management (CRM) systems like Salesforce by businesses to enhance customer interactions and increase sales productivity. 2. The deployment of enterprise resource planning (ERP) systems such as SAP or Oracle by organizations to streamline operations, improve efficiency, and facilitate data-driven decision-making. 3. The introduction of collaboration tools like Microsoft Teams, facilitating remote work and enhancing team communication and productivity. Failed IT Project Examples: 1. The implementation of the Healthcare.gov website in the United States, which experienced numerous technical glitches and usability issues upon launch. 2. Launch of the Boeing 787 Dreamliner aircraft, encountering delays and production setbacks due to supply chain problems, design flaws, and software issues. 3. The launch of the BlackBerry PlayBook tablet by Research In Motion (now BlackBerry Limited), facing lackluster sales and criticism for its limited app ecosystem, lack of native email support, and reliance on tethering to BlackBerry smartphones for certain features. The factors: 1. Efficient Project Management: Capable leadership, thorough planning, effective resource distribution, and proactive risk handling. 2. Engagement and Communication with Stakeholders: Active involvement with stakeholders and transparent communication throughout the project's life cycle. 3. Competent and Dedicated Project Team: A skilled and committed team with the necessary technical proficiency, experience, and dedication. 4. Clearly Defined Project Goals and Objectives: Well-established and aligned objectives that provide clear guidance for the project team and stakeholders. 5. Management of Change: Strategies to handle and alleviate resistance to change among users and stakeholders. 6. Allocation and Management of Resources and Budget: Sufficient distribution of funds, time, and personnel. Group into categories: 1. Project Management: - Efficient Project Management - Allocation and Management of Resources and Budget 2. Stakeholder Engagement and Communication: - Engagement and Communication with Stakeholders 3. Team Competency and Commitment: - Competent and Dedicated Project Team 4. Clear Project Goals and Objectives: - Clearly Defined Project Goals and Objectives 5. Change Management: - Management of Change Among these categories, Project Management factors stand out as the most crucial. Effective project management encompasses various critical aspects such as planning, resource allocation, risk management, and budget control, which are essential for ensuring that the project is delivered on time, within budget, and according to specifications.
