Welcome to this blog for the MIS class of the Korea MBA program at Korea University. Its purpose is to serve as a log and a discussion forum about MIS issues. Posts may cover assigned or personal readings, hot topics, controversial ideas, links to noteworthy references, etc. and of course discussions about all these.
Remember to put "Labels" (tags) on your posts and to always cite your sources. Include links if / when appropriate. Also remember to be respectful of others when posting. Enjoy.
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This blog is the Korea MBA MIS class student blog at Korea University Business School (KUBS) for the Fall semester of 2007.
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24 comments:
Is it now starting? Thanks for this opportunity. Let me begin with the first impression of the mentioned article.
My initial impression on the article (IT doesn’t matter) is exciting and logical. I don’t think the article is perfect in all aspects. Even though it goes too much generalization in some aspects, it gives very strong critics on the stereotyped assumption that Information Technology is everything or at least most important. Frankly, in the last of 20th century, many people believed that Internet or Telecom tech will boost forever. Think over the bull market of tech stocks on KOSDAK and NASDAK. However, it was not long before the bubble would be off. I think the article provides very good explanations why the tech boom was not continued at that time.
Hyunkap Yoo
i'd like to exercise using this blog........just drop by MIS blog!
I read "The End of Corporate Computing" written by Nicholas G.Carr.
The article tells a story comparing IT with electricity.
I do agree with some parts of his contents as the below.
1. Operating of IT can cause cost-waste effects. So the alternates for change exist.
I see a lot of cost-waste in corporate IT as Mr.Carr mentioned. If we can share some common resources of IT, then the cost will be saved.
2. There is change in IT provider and the change is expanding.
Nowadays, even Internet portal such as "Naver" or "Google" provide Office program and Vaccine application for free. One can just use the application if his computer is on line, meaning some degree of IT utility is alredy realized.
The below is some that I disagree or hard-to-understand.
1.If consolidated IT suppliers emerge, is it possible we may save our cost continuously?
Without economy scale, cost-saving is not possible, but if huge-sized company apperas, then they can monopolyze the market eventually.
That is why usually Utility industries belongs to Government in many countries.
wating for the comments..
IT doesn't matter
I agree with this main idea of this article.
The point is that
the key to success for IT management is no longer to seek advantage aggressively but to manage costs and risks meticulously
We should be more careful on IT investment waiting to make purchases until standards and best practices solidify.
Companies should evaluate expected returns from systems investments and explore simpler and cheaper alternatives and make a full use of
outsourcing and other partnerships.
Some companies just invest on new system without asessing the pros and cons of new system carefully because the competitor already had that new system
it happened sometimes in the past but these days it is getting rare and companies are getting more frugal on IT investment
New rules for IT management
1)Spend less
2)follow,don't lead
3)Focus on vulnerabilities,not opportunities
(from the article)
I think this guide rule is right and this leads to IT company's sales down dramatically.
IT company should make out a solution
to give more value to the company in this hard and challeneable situation with less chance
IT Doesn’t Matter
I don’t agree to a view of the article that the company takes a more defensive posture toward IT.
A short period of time financial results of company will grow in the market, according to defensive expenditures.
However, If asked to overcome the rapid changes that our IT industry is undergoing , probably many people would refer to investment in IT areas.
Of course, To grow a revenues on IT to evolve company, IT management should analyze data of revenues and expenditures in depth.
IT doesn't matter!
When I heard this title, I thought it is very challangeable beacause I work in IT Department and I think IT is very important to my company in securities industry.
But the point of this article is that IT as strategic weapon for cometitive advantage is no more important.
Yes,I partially agree. Many people think IT is infrastructure like transportation,electricity, water service.
They feel unconvenient if IT doesn't work.But,they can't work any more without IT.
I think that "can't work anymore" means IT is very important.
Although the attractiveness as competitive edge factors is being vanished,IT is necessary technique in General operation for business.
If IT doen't work well, We encounter the chaotic situations.
Hi, I am just testing.. I haven't used this Google blog before.
I am happy to meet you all. See you in the class!
It is very impressive that I read creative articles about IT and the comments some students write their opinions. But there is probability to centralization in IT as Nicholas G. Carr said, in my opinion the substitution like electricity is difficult or take large time in IT.
First reason is security problem. Also this is the big problem in case of outsourcing in IT department. The most company would not consider IT as just hardware and system. They know that is their management information itself or know-how of business. Even if any other better method – change the meaning as centralization, sharing, opening, and etc. -, the risk of business security would exist as great obstacle in long time.
Next, there are many current problems of strategy, development, operating, and etc. in IT area. For example, that is cost reduction, raising customer satisfaction, and improving internal competence, and etc. related system, process, human, and organization with complexity. In my opinion, the IT shift Carr said would be possible when the shift should have a lot of solution about these current problems.
Despite the difficulties to predict it depended on many other factors, it is pleasure to think and to wait and see the future about IT.
IT doesn’t matter. IT is becoming a commodity and general-purpose technology as the articles mentioned. These two articles give us a good perspective about the future of IT. It is meaningful that those analogies give us some insight and preparation for the coming change. Particularly,utility providers can reduce service cost through economies of scale by eliminating the overinvestment of most companies.
In fact,there were a few symptoms of possibility of utilization and comoditization of IT in Korean SI industries.Let me take two examples. First, SI industries has been restructured naturally according to the principle of free market economy without any loud sound and without M&A.Most conglomerates has their own SI companies up to now. But from 5 years ago, many people have forecasted that only three to four major SI companies can survive in Korean SI industries in the long run. It is because most medium-sized and small-sized SI companies are losing their competitive edge due to failures in taking large-scale and profitable orders. Second, IBM strove to take order of information system management of POSCO in 1996. The trial failed in the end,but IBM continues to suggest the outsourcing of SM(system management) to several conglo-merates.
IT can become commodity or utility in the long run,but there are many obstacles. IT also still does matter. IT is not the same as the railroad or electricity, as the articles recognize the limit of generalization of IT. Electricity or railroad is public social capital which is not so related and independent of business contents and characteristics of individual companies. But IT is not a mere utility or commodity in that it contains and closely relates to important business contents such as secret sales information and business processes and sources codes of core programs which enable companies to keep their sustainable growth. Secret information can be leaked out or attacked by hackers.Generalization can be not so easy for the time being if security from hacking may not be guaran-
teed and if information and knowledge cannot be protected.And IT has enhanced competitive edge in many companies till now by supporting business technologically and at the right time.So,utility providers should be able to in
crease the value and benefits through timely support or enhancement of competitive edge of IT. Can utility providers do so even after consolidation? They seem to have a long way to go.
Hi, I am also testing..
I Hope everybody can enjoy this class!!
'The seven habits of highly effective technology leader' describes changes that define new IT leadership challenges as well as the specific leadership skills that highly effective technology professional must have. so, what should business technology leader do is that they should built business scenarios, track technology that matter to business
identify business pain and pleasure, organize adaptively
manage infrastructure cost-effectively communicate well and often and market.
< habit 1 >
When Business technology leader built business scenarius, they have to focus on business model and process before they focus on technology infrastructure and applications.
But it's not independently. Since business technology leader understand technology, they are in a good position to exploit the business technology intersection.
< habit 2 >
Business technology leader have to know distinctions between operational technology and strategic technology. And they also track technology trend. Example is really matter to the business.
< habit 3 >
Business technology leader have to identify real pain in business, and to try him creating pleasure. Pain comes from cost and pleasures come from up-selling, improvement of productivity and so on.
The whole pain and pleasure come from failure or success in business.
Leader understand what make people heroes, what the organization value.
< habit 4 organize adaptively >
Organizational leadership focus first on the governance of business technology resource, investment, responsibilities, principles, and priorities. The business value of technology should be the primary governance philosophy.
The key is to organize that share decision-making authority through explicit governance.
< habit 5 >
Leaders has to manage computing and communications infrastructure professionally.
And also, when leaders want to manage infrastructure cost-effectively, they have to sensitive about industrial environment. SWOT analysis is good tool that to sense about industrial environment.
< habit 6 >
Leader have to communication about good or bad news in business terms. Leader usually monthly sales reports and it's good idea to use dashboards, scorecard.
< habit 7 >
Business technology leaders have to search their role in the company.
when I read this article, as like this article said, I agree that leader become make.
Good business technology leader is different from the traditional leader. So they have to try to effort in many field.
"""IT Doesn't Matter"""
This article provided a small part of my broader exploration of information technology and business strategy.
IT has more faces. Of course there are some established "low level" types of IT that can be seen as utilities. But I believe that there also "high level" IT. With that techniques managers has opportunities to deeply understand and optimize processes in their companies. Of course primarily creative people at every company level are matter in this case. But if you go on to establish your enterprisewide IT-Architecture with low-cost principle, you will later run in troubles just because the maybe cheapest solution is not flexible or maintainable. This will run your company on troubles. So in my opinion the decision of IT is what really matters and in that sense the IT matters to.
As mentioned before IT has much faces and levels. To say in general, that IT does not matter is just imprecise. But in the average of all IT facets the assertion "IT does not matter" may be the truth.
""The End of Corporate Computing""
In this article, Nicholas Carr, acclaimed business technology writer and strategist, discusses the end of corporate computing brought on by the move from assets to shared resources. He also comments on the next generation of IT - the Utility Model - and what it means for businesses, in applications ranging from security services and Web hosting to IT services and networking.
If Carr is correct, and I think he is, we are going to see changes in corporate computing in the coming ten to twenty years that will make personal computing and the Internet seem like incremental improvements. Carr thinks that the IT vendors most threatened are those that sell pieces of IT solutions directly to organizations: Microsoft, Dell, Oracle, and SAP--a list of seemingly invincible players today. He admits that the shift will take time, and the major players may be able to adjust their business models--to me Oracle comes to mind as one that is embracing utility computing. But the transition will not be easy for any of them.In the future, I believe that the biggest business transformations will occur and we’ll have both natural and necessary needs for IT utilities.
For me IT is not a matter of how to utilize the technical development. More importantly, It can be what is the philosophy to adapt the IT. Also the critical part is that are the company staffs agree on the adaptation on IT?
My experience with SAP tells me that weithout the agreement of It usage among team mambers, the new techincal support can be abused in various ways. In worst case, it could ended up wasting company capital.
In short, yes IT is critical. However, how to use IT bsed on what agreement or philosophy would be even more important.
Kim Hee Jueng
Hee Jeung Kim
i agree that in this context many CEOs believe that IT is strategeic resource for creat the cooperate value.
executive board'role is to take adequete management through many trials.
IT is one of them.
If one method is not spcial any more in the business sector, the board of directors must investigate other alternatives.
I think this article is not only about dealing the IT matter but also considering genric matter of company.
I think I can start to post the comments here, right?
OK let me do that from now on.
(This is for test purpose.)
Thanks!
IT doesn't matter.
IT is a quite important part for the companies. so they are competing to spend or invest more in IT and related strategies. in this situation, the article helps make unbiased viewpoint.
about the first half of the article, the writter says IT's power has diminished and the advantage is vanishing in the present business world. though the writter explains his point logically and it makes sense in some aspects, I think two assumptions should be right to agree wholly with his point. at first, he talked about railroads and telephone and he said IT will also follow the same way, but, I think, IT can be different with those two industries. IT development not just means the bigger infrastructure or the bulk of the supply like railroads and telephone industries did. software is also important.
at second, the writter says the advantage of the 'first mover' is almost diminished and IT is 'commoditization'. it can be right to some degree. however, for example, there were some specialists in IT field who said something like 'it's nonsense every family has a computer' or 'ordinary person doesn't need more than some megabites of capacity in the computer'. now we know it was wrong. and, think about the speed of the improvement of computer or semiconductor industries. it's too past to foretell the final form of IT. nowadays many people use IT in many ways of their lives, and they adopt new way of IT very well. so aggressive investing to get the first mover's advantage still can be right, I think.
still, however, I think the writter makes sense.
actually, I think what the writter really want to say is not that IT doesn't matter. IT still matters and will, but we should change IT strategies. just bigger spending and investing in IT won't make more first mover's advantage because everyone doing that fully enough now. it can be wasting and overinvestment like a bubble in the late 90's. and IT has already become a big part in companies, so now managing the risk is also important.
this article helped me have a new viewpoint.
My participation is so late. but I hope to add comment about the articles. Thankyou very much for your agreement.
Today, Information Technology has become very important in industry, society field. because IT has become commodity of company, Infra etc.. So This Phenomenon by Nicholas G. Carr is expressed that IT doesn't matter.
I think that the common sense about articles is "the investment efficiency".
The many company invest their IT Structuring, auto processing, etc.
They have to concern about investment value, differentiation and result.
Second, The Technology leader focus on the new business models, process and profits. They do the distinction between operational and strategic technology.
Third, The new model and Company is now emerging. Just then the possibility seize a few company but maintaining a strong degree of competition among both utility and component suppliers will be essntial to a healthy and productiove IT sector in the comming years.
In my opinion is that IT is the essential commodity of our industry. Of course it has the difficulty, problem. So I think that is improved by our effort. I believe that.
My name is Ho Kyung, Lee, sellerkor is my gmail account. Even if I am late, I post my comment.
I think that the problem can be described the "wag-the-dog" situation. IT was the solution to create first mover effect in business field but it became a kind of cost exhaustive item after IT commodotization. With increased IT expenditure, ironically the efficiency of investment plummetted.
Partially I agree to authors opinion. IT has created a more value in business field but the other hand, IT has been a kind of certification to boast company's competency to outside.
But I disagree with the conclusion author raised. With the advent of Web 2.0 and knowledge sharing technology, the main role of IT evolves from gathering & analyzing information to creating new information and social knowledge.
I think the social value of information is not expolited yet, and IT has not revealed it fully yet.
IT doesn't matter!
When I heard this title, I thought it is very challangeable beacause I work in IT Department and I think IT is very important to my company in securities industry.
But the point of this article is that IT as strategic weapon for cometitive advantage is no more important.
Yes,I partially agree. Many people think IT is infrastructure like transportation,electricity, water service.
They feel unconvenient if IT doesn't work.But,they can't work any more without IT.
I think that "can't work anymore" means IT is very important.
Although the attractiveness as competitive edge factors is being vanished,IT is necessary technique in General operation for business.
If IT doen't work well, We encounter the chaotic situations.
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