By Peter G. W. Keen
Cutting-edge managers has to be simply as ok with the fundamentals of knowledge expertise (IT) as they're with accounting innovations and advertising ideas. This consultant demystifies the IT revolution, defining in available language the phrases and ideas which are without delay correct to managers and explaining the impression of IT on all facets of industrial.
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Extra info for Every manager's guide to information technology: a glossary of key terms and concepts for today's business leader
Sample text
In the DP tradition, spending on computers is largely determined by an annual budgeting process. Next year's budget is set by aggregating business units' requests for new systems, comparing the firm's own expenditures as a percentage of sales with that of comparable companies, and capping the budget increase at X percentage. In a good year, X goes up; in a tough year, it is held constant or cut. The systems development and operations plan is fine-tuned within these parameters. The heritage of the DP era remains a strong force in many firms.
The process is inherently complex and software productivity continues to lag behind other areas of information technology. It is growing in complexity, too. The new style of design called client/server computing combines every IT elementold and new, proven and unproven aliketo create an integrated, cost-efficient service and information base. This is the challenge for the 1990s. Page 15 The Management Information Systems Era With most basic clerical and accounting processes automated by the mid-1970s, the focus of attention in Information Systems shifted to designing and building reporting systems to meet managers' information needs.
The major barrier to central coordination was the very same tool that provided the most cost-effective IT base for user departmentsthe local area network. This area of IT innovation was easily the one most beset by incompatibility. The calculus of the 1980s favored innovation at the risk of loss of discipline. But local innovation turned out to have its own costs and limitations, and the pendulum began to swing back again near the end of the 1980s. The Business Integration and Restructuring (BIR) Era Today the pendulum is swinging toward an innovative discipline that balances central coordination of key IT infrastructures and the use of IT within these infrastructures with decentralized autonomy in decisions about applications.