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DIGITAL TRANSFORMATION #3 (Iterative System Development Lifecycle (PROS…
DIGITAL TRANSFORMATION #3
The Role of Information Technology
Nicolas Carr: "IT doesn't matter"
IT has lost its strategic value, it's a commodity that doesn't offer a competitive distinction + therefore doesn't provide competitive advantage
Corporations will adopt generic applications; business processes will therefore be uniform and without competitive advantage
Existing IT capabilities are largely sufficient for corporate needs
Widespread adoption of best-practice software makes IT-based advantage disappear for everyone
Digital Transformation Strategy: Hess et al 2016 Quarterly Executive
Digital Strategy doesn't mean Information Tech Strategy
They investigate 3 media companies as cases
4 dimensions: Use of technologies, changes in value creation, structural change + financial aspects
11 questions [aspects of strategy]
Use of Technologies
Significance of IT [enabler, supporter]
Ambitious approach to DT? [innovator, early adopter, supporter]
Changes in Value Creation
Degree of digital diversification: electronic sales channels, cross-media, enriched-media, content platforms, extended business
Revenue creation: paid content, freemium, advertising, selling, complementary products
Future main business scope: content creation, content aggregation, content distribution, content platforms etc
Structural Changes
Responsibility for digital transformation strategy: group CEO, CEO of business unit, group CDO, group CIO
Operational positioning of new activities: integrated, separated. Could just be at top level, but will probably start altering business processes. Could require new skills
Focus of operational changes: products + services, business processes, skills. Could just be at top level, but will probably start altering business processes. Could require new skills
Building of competencies: internally, partnerships, takeovers, external sourcing
Financial Aspects
Financial pressure on current core business
Financing new activities: internal, external
Waterfall System Development Cycle
Used for software development
Each phase must be completed before the next phase can begin
1. Systems Analysis:
identify all possible requirements of the system to be developed + document them
2. Systems Design:
use identified requirements from the first step to specify system architecture
3. Implementation:
system is developed in small programs called units, which are tested for their functionality
4. Testing:
entire system tested for any faults/failures
5. Review + Maintenance:
any issues that come up in a client environment are dealt with in the maintenance phase
PROS
Works well for smaller projects where requirements are clearly understood
Plan the work, work the plan
CONS
Poor model for long/ongoing projects
Quite a big assumption that we can analyse everything up front
Can take a long time: business can change in the meantime
Faults found later may require rework of earlier stages
Requirements and customer expectations may be constantly changing
Good way to create some types of software, but not to look at transformation projects
Requirements can be incomplete
Iterative System Development Lifecycle
Focuses on an initial, simplified implementation, which then progressively gains more complexity until the final system is complete
More of a cyclical process
1. Planning + Requirements
2. Analysis + Design
3. Implementation
4. Testing
5. Evaluation
Activities from whole development lifecycle are repeated
Each iteration results in working software
Decisions are made as more is found out about the situation
PROS
Less rework from early stages
Can quickly adapt to project or client changing needs - change is part of the process
CONS
Possible that unforeseen issues will appear in later stages + be costly
Two-Speed Information Technology
Support IT
Steady rate of change
Predictable
High penalty for errors
Under control of IT
Upfront planning - stable
Waterfall
Transformative IT
Quick response
Driven by customer + environment
Responding - agile
Needs high-level stakeholders
Errors offset by benefits
Iterative