The IT industry is an extremely varied sector of the economy, including thousands of small, medium-sized and big companies serving many different markets. One way of looking at it is to distinguish three segments, centered on hardware, software, and services. Until the 1980s, these three segments were structured vertically. Customers selected an IT solution from a few vendors, such as IBM, DEC, or Wang. These delivered complete solutions, including hardware, software and the adjoining services. Because of the proprietary nature of these solutions, customers were tied to their suppliers and there were few opportunities left for other vendors to offer complementary products or services. Two events led to a fundamental change in this situation: low cost microprocessors and open software standards. These events transformed the IT industry; vendors became specialized in hardware, software or services. In every segment, many competing or complementary products exist, all complying with a limited number of standards.
The IT industry is currently one of the most dynamic in the global economy. As a sector, it not only creates millions of high-level jobs but it also helps other organizations to be more efficient and effective and it stimulates innovation. The importance of IT is not so much the growth of its share of the total economy but in the changes that are introduced in the organizations that use and assimilate it.
Recent events seem to be showing that a new evolution is going on. A tremendous shakeout is now taking place in which smaller vendors are taken over by the big players who are now completing their portfolio with complementary products and services. It looks as if the pendulum is swinging back in the other direction and we can expect new – even more severe – vendor lock-ins. To be watched very carefully by the decision makers!
About this book
IT is not just about computers; it connects at least eight different domains stacked upon each other as building blocks:
Fig. 1.1 – Domains of IT
This framework will serve as the structure of this book. Every chapter will discuss one domain in more detail. Do not expect a comprehensive survey but a management summary. Only the topics contributing to this work will be put in perspective, others will be just mentioned or simply dropped. Several links to Web sites and good books will allow the reader to dig deeper in the discussed items.
As this book has to be a practical help for the IT manager, there will be an important part about the best practices in the different domains of IT. A best practice is a policy, procedure, technique, tool, or method that, through experience and research, has proven to lead reliably to a good result. Best practices are a source of competitive advantage as they are often the result of significant experience and costly trial and error. In this work, these best practices will aim at four objectives: information liquidity, availability, agility, and costs.
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Information Liquidity - Much like cash liquidity, the liquidity of information is a measure of business success. In a successful organization, data flows smoothly and information changes into economic value. Information liquidity is obtained by integration at all levels. Integration should be the driving force behind design, development, and use of all IT systems.
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Availability - As most organizations become more and more dependent on IT, it is important to ensure availability of the services. This does not mean that all the IT systems have to be flawless and failsafe. However, good thought has to be given to what could be the outcomes for the organization if all or part of the IT services are temporarily unavailable, and what can be done to minimize these effects.
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Agility - If there is one certainty it is change. The market changes constantly, so do legislation and technology. Product life cycles and their time to market are getting shorter and shorter. As a result, IT has to be agile. We can no longer afford monoliths that cost a fortune to build and are almost impossible to maintain. Cross-compatibility, reuse and lightweight functionality are the ideas to be considered.
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Costs - Especially in times of economic slowdown, the costs of IT are under constant scrutiny. Unfortunately, it is difficult to quantify the benefits of IT in Euros or Dollars and it is meaningless to approach the IT investments too much as an accountant. Also the non-quantifiable benefits for the organization must be considered.
It is worth noting that these objectives can be conflicting: for increasing the availability, important investments have to be made, which conflicts with lowering the costs. On the other hand, a close integration will probably get in the way of agility. A good balance will always be required and this balance will depend on the situation your organization is in.
Finally, an extensive glossary ends the content of this book. It can be useful as a quick reference, to “debunk the junk” in the gobbledygook used by IT professionals.
Online Resources
Byte Magazine - http://www.byte.com
CIO Magazine - http://www.cio.com
CIO Worldwide - http://www.cio-worldwide.com
Computer World - http://www.computerworld.com
Info World - http://www.infoworld.com
SearchCIO – http://www.searchcio.com
ZDNet Magazine - http://www.zdnet.com
IT Business Analysts
Aberdeen Group – http://www.aberdeen.com
Bloor Research – http://www.bloor.co.uk
Boston Consulting Group – http://www.bcg.com
Business Intelligence – http://www.busintel.com
Butler Group – http://www.butlergroup.co.uk
Cambridge Market Intelligence – http://www.cmi.co.uk
Forrester Research – http://www.forrester.com
Gartner Group – http://www.gartner.com
Hurwitz – http://www.hurwitz.com
IDC Corp – http://www.idcresearch.com
Headstrong – http://www.headstrong.com
Jupiter Research – http://www.jup.com
Killen & Associates – http://www.killen.com
KnowledgeStorm – http://www.knowledgestorm.com
Meta Group – http://www.metagroup.com
OVUM – http://www.ovum.com
Patricia Seybold Group – http://www.psgroup.com
Strategic Focus – http://www.strategicfocus.com
IT News sites
http://dailynews.yahoo.com/headlines/tc
http://slashdot.org
http://www.cnn.com/TECH/
http://www.techweb.com
http://www.wired.com/news/technology
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