Generating Business Value from Information Technology

Discussion Questions

SES #	TOPICS	DISCUSSION QUESTIONS
Introduction
1	Why study IT value
2	Aligning IT with business strategy
Business operating models
3	An overview of business operating models
4	Unification model Guest speaker: Peter Weill, MIT Sloan CISR Case: UPS	1. Describe UPS and its business environment. 2. Critique UPS’ strategy for online business and its business model. 3. Critique UPS’ approach to managing IT. How well does UPS’ IT infrastructure prepare the firm for: (1) extending the core business and, (2) entering new businesses? 4. What are the major IT enabled business opportunities facing UPS going forward? 5. How effectively does UPS govern IT? What are the key mechanisms? Debate question UPS’ tightly controlled approach to managing IT leads to reliable package delivery and customer information, but it will limit innovation and growth long-term.
5	Diversification model Case: Pacific Life	1. How does Pacific Life balance the needs of the divisions and enterprise? What are the key mechanisms? 2. Critique Pacific Life’s approach to shared services. 3. What issues would you advise Jim Morris (COO) to focus on next year? 4. What should the Pacific Life operating model be in three years? Debate question Pacific Life is missing important opportunities for business synergies by choosing a Diversification Operating Model.
6	Replication model Case: 7-Eleven Japan	1. What are the characteristics and trends in traditional Japanese retailing? Convenience stores (CVS)? 2. What is 7-Eleven Japan’s value proposition to their customers to justify their average 10% premium over supermarket prices? 3. What were the critical success factors for 7-Eleven Japan? 4. What is the business model? Debate question 7-Eleven Japan recently purchased 7-Eleven U.S. and its 6,000 stores. This purchase provides a good opportunity to replicate its systems and processes in an acquisition.
7	Coordination model Case: Merrill Lynch	1. What is the Integrated Choice business model? 2. What are the implications of Integrated Choice? For clients? For financial consultants? For the firm? 3. What are the major actions Merrill should take? Debate question Merrill Lynch is moving appropriately to respond to market changes.
IT decision making
8	The data driven organization
9	Two significant challenges in healthcare IT Guest speaker: John Glaser, CIO Partners Healthcare System
10	IT governance: decisions, rights and accountability
11	IT investment Case: Colway Stores	Complete the analysis as a group exercise and prepare up to three PowerPoint slides of your analysis and rankings for a possible presentation. Also email the group’s answers to Questions 1 and 2 to us by 5pm the night before class. Please sit in groups in the session. 1. Determine whether or not to proceed for each project. 2. Rank the projects that are to proceed. Assume a) Same economic conditions as today b) Colway can probably fund all the projects c) The paybacks are good estimates d) No tax, inflation effects or salvage value to projects
12	Project governance Guest speaker: Joe Spagnoletti, CIO Campbell Soup Case: Campbell Soup	1. Summarize the risks and benefits of Campbell Soup’s outsourcing arrangement with IBM. 2. List what you believe have been the critical success factors for Campbell Soup in its outsourcing. 3. Is this relationship sustainable? Why or why not? Debate question Campbell Soup will generate big profits by extending Project Harmony into its operations outside North America.
Business architecture and change management
13	Enterprise architecture
14	Maturing enterprise architecture Case: Southwest Airlines	1. What is Southwest’s targeted operating model? 2. Draw the company’s current governance-on-one-page. 3. What are the critical mechanisms for enabling the transformation? 4. Southwest is attempting a major organizational change. What do you think will be the major obstacles to that change and what can governance do to address the obstacles? Debate question Southwest’s efforts to standardize airport operations will ultimately undermine profitability.
15	Managing change Guest speaker: Cyrus Gibson, MIT Sloan CISR Case: Aetna	1. Describe the business and IT changes at Aetna, from 2001 to 2006, using the relevant terms and frameworks of this course. 2. How were the changes accomplished? Characterize the condition of the company and make some qualitative inferences about its culture, values, and work behavior in 2001 as compared to 2006. What particular actions and management style by Ron Williams and others appear to have helped the culture change? What were the risks? What were the critical things that had to go right for success? 3. During the first three years Ron Williams managed the business very closely and tightly, convening and running virtually all executive meetings including all significant IT decisions. What is required to ensure that the success after four years can be sustained, as Williams succeeds John Rowe and will be expected to turn much of his attention to external constituencies and issues? 4. What achievements and lessons from the Aetna turnaround are relevant to planning and executing the Federal Government’s expenditure of $20 billion on healthcare IT as part of the economic stimulus package?
Managing IT and business risk
16	How firms drive value from IT risk management Guest speaker: George Westerman, MIT Sloan CISR
17	IT outsourcing Case: Dow Chemical	1. What is Dow’s business model? What is Dow’s architecture maturity stage? 2. Discuss the role of outsourcing at The Dow Chemical Company. How would you classify Dow’s outsourcing arrangements? How effectively does Dow manage these relationships? 3. How has outsourcing contributed to Dow’s success? To Dow’s risks? 4. Describe the Federated Broker Model. Do you think Dow will realize the vision of the Federated Broker Model? Why or why not? 5. What do you feel are the biggest IT challenges Dow is facing? What are the implications for the business? Debate question Dow’s reliance on outsourcers will ultimately limits its success in growing the business.
18	Business process outsourcing
19	IT and globalization
IT-driven business innovation and agility
20	IT and business innovation
21	IT savvy Guest speaker: Peter Weill, Chairman, MIT Sloan CISR Case: Lenox Insurance	1. Analyze the company’s handling of the project.
22	IT and business agility Guest speakers: Locatel Plenia
23	The future of IT and digital organizations
24	Group presentations, course wrap-up