the right mind set for managing info tech

8/8/2019 The Right Mind Set for Managing Info Tech

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BY:

M. BENSAOU

MICHAEL EARL


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M. BENSAOU: Associate Prof. of Tech. Mgmt.and Asian Business at INSEAD, France.

MICHAEL EARL.: Prof. at London Business

School. Director of Centre for Research in Info.Mgmt.


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Why Japanese Companies rarelyexperience IT problems so

common in west.


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FIVE IT PROBLEMS OFWESTERNCOMPANIES

IT investments are unrelated to BusinessStrategy

Pay-offs from IT investments are

inadequate. Too much technology for technologys

sake.

Relations between IT users and ITspecialists are poor.

System designers do not consider users

preferences and work habits.


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Research project to compareWestern and

Japanese Mgmt. was undertaken by authors.

The Research Project brought out five Principlesof IT mgmt. in Japan, which explained whyJapanese were better than western managers in

Mgmt. of IT in their business?


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FIVE PRINCIPLES OF IT MANAGEMENT:

Strategic instinct should drive IT investments.

IT investment should be based on operationalperformance improvements.

Identify a performance goal and then select anappropriate Technology that goes with it.

Achieve Organizational Bonding betweenManagers and IT Specialists.

Human Design- Design IT system inalignment with the skills of the Employees.


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STRAT ALIGNMENT VS STRAT INSTINCT

Western Managers aimed at strategic

alignment by developing IT strategies, butgoals remained elusive.

Business strategies were rarely clear. ITopportunities poorly understood and

organizational had different priorities whichled to failure of IT strategies.

Japanese managers looked IT as one of thecompetitive levers and never developed specialIT strategies.

Japanese went for IT investments focusing onoperational goals. And IT investments came insmall steps by process of Learning By Doing.

Example: Seven-Eleven Japan.


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PERFORMANCE IMPROVEMENTS

Western Companies adopt Capital Budgetingprocess to manage and evaluate ITinvestments. But Japanese Companies go in forIT projects not by financial matrix but by

operational performance goals. In simplewords go for IT investments only if it getsoperational performance improvement.

Japanese prefer continuous improvement andincremental advance implying IT spendingscome in small steps.


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APPROPRIATE TECHNOLOGY

Executives inWest suffer fron phenomenon

Technology for Technologys Sake. Western managers assume that Technology

offers the smartest, cheapest way to improveperformance.

Japanese focus on adopting appropriate Tech.

Japanese managers first identify task and levelof performance and then select technology that

will help them achieve it in a way that supportsthe employees.


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ORGANIZATIONAL BONDING

Western companies have less of organizational bondingbetween IT specialists and managers. General feeling is

IT specialist control too much and do not know much ofbusiness. Two separate cultures exist users andspecialists.

Japanese companies encourage integration and bondingbetween IT specialists and business managers in four

ways:- Many Japanese managers spend 2-3 years in IT dept. as partof job rotation. This gives them Technical know how andknowledge of how to get things done in IT.

IT specialists and managers are co-located when IT projectsare in progress. This improves communication and

understanding. Senior IT Executives are also in charge of other functions, such

as- finance and planning. Overlapping responsibilities helpsin integration and bonding.

Japanese IT departments even integrate IT vendors forgingcommitted partnerships resulting in effective IT application.


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HUMAN DESIGN

InWest the focus is on technically most elegant

system and expect employees to adapt to it. Japanese believe that building system is not

the end; enhancing contribution from people ishigher goal.

Principle of Human Design is central toJapanese way of using IT.

Japanese are deeply aware of importance of

Tacit knowledge. Tacit knowledge is that subtleknowledge that cannot be fully communicatedin words and numbers.


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CONCLUSION

The five Japanese Principles of ITManagement- Strategic instinct, Performanceimprovement, Appropriate technology,Organizational bonding and Human design

have Universal Application, which can besuitably modified to fit a local context.

the right mind set for managing info tech

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