An update of my presentation on IT Strategy Challenges. This is the deck I will use at a Boston University Executive Program on October 19, 2009.

1. Winning with Information Technology in the Network Era Professor N. VenkatVenkatramanDavid J. McGrath Jr. Professor of Management October 19, 2009

2. Discussion Overview 2 ©2009: N. Venkatraman 1 3 2 4

3. IT is everywhere © 2009: N. Venkatraman 3

4. And could influence even more in the future…. © 2009: N. Venkatraman 4

5. And change the geography of work © 2009: N. Venkatraman 5

6. (c) Venkatraman, 2009 Transact 6 Learn Live Innovate Play Consume Connect Work

7. Why am I so bullish on IT? © 2009: N. Venkatraman 7

8. Take the three I.T. ‘laws’ together.. © 2009: N. Venkatraman 8

9. The Scope of IT extends beyond processes © 2009: N. Venkatraman 9

10. A working framework to understand the scope of IT © 2009: N. Venkatraman 10 BandwidthLaw Metcalfe’sLaw Technology Domain Moore’sLaw Process Product Service Business Domain

11. Discussion Overview 11 © 2009: N. Venkatraman 1 3 2 4

12. Focus of IT Strategy © 2009: N. Venkatraman 12

13. Accelerated Pace of Innovation © 2009: N. Venkatraman 13

14. Sketching out the possibilities… © 2009: N. Venkatraman 14 IBM, 2005

15. Sketching out the possibilities… © 2009: N. Venkatraman 15 IBM, 2005

16. Sketching out the possibilities… © 2009: N. Venkatraman 16 IBM, 2005

17. Sketching out the possibilities… © 2009: N. Venkatraman 17 IBM, 2005

18. Sketching out the possibilities… © 2009: N. Venkatraman 18 IBM, 2005

19. Sketching out the possibilities… © 2009: N. Venkatraman 19 IBM, 2005

20. Sketching out the possibilities… © 2009: N. Venkatraman 20 IBM, 2005

21. Sketching out the possibilities… © 2009: N. Venkatraman 21 IBM, 2005

22. Sketching out the possibilities… © 2009: N. Venkatraman 22 IBM, 2005

23. Sketching out the possibilities… © 2009: N. Venkatraman 23 IBM, 2005

24. GM OnStar © 2009: N. Venkatraman 24

25. Business Implications:Auto Sector as a Case in Point © 2009: N. Venkatraman 25

26. IT Strategy in the Auto Sector © 2009: N. Venkatraman 26

27. Automobile– “computers on wheels” © 2009: N. Venkatraman 27 “Cost of electronics in cars” (~20--50%)

28. Automobile– “computers on wheels” © 2009: N. Venkatraman 28 ‘Black Box’ Lines of Software Code

29. OnStar’s impact is broader than the core service domain © 2009: N. Venkatraman 29

30. Microsoft’s Role in Automotive 30 © 2009: N. Venkatraman

31. Ford (and Microsoft): Sync © 2009: N. Venkatraman 31

32. Business transformation underway… © 2009: N. Venkatraman 32 Source: GM

33. Management ideas for network era 20th Century 21st Century 33 © 2009: N. Venkatraman

34. Computer industry [circa 1980] Source: Bill Gates Testimony Source: Bill Gates Testimony 34 © 2009: N. Venkatraman

35. Computer industry [circa 2002] Source: Bill Gates Testimony 35 © 2009: N. Venkatraman

36. We can apply the same logic in many sectors….. © 2009: N. Venkatraman 36

37. Discussion Overview © 2009: N. Venkatraman 1 3 2 4 37

38. Value from IT Resources Innovation StrategicFocus CostCenter Implementation Business IT/IS Leadership Responsibility 38 © 2009: N. Venkatraman

39. Cost Center © 2009: N. Venkatraman 39

40. Value from IT Resources Innovation StrategicFocus CostCenter ProfitCenter Implementation Business IT/IS Leadership Responsibility 40 © 2009: N. Venkatraman

41. Profit Center 41 © 2009: N. Venkatraman

42. Value from IT Resources Innovation GrowthCenter StrategicFocus CostCenter ProfitCenter Implementation Business IT/IS Leadership Responsibility 42 © 2009: N. Venkatraman

43. Growth Center 43 © 2009: N. Venkatraman

44. Value from IT Resources Innovation GrowthCenter InvestmentCenter StrategicFocus CostCenter ProfitCenter Implementation Business IT/IS Leadership Responsibility 44 © 2009: N. Venkatraman

45. Investment Center 45 © 2009: N. Venkatraman

46. Managing their relative emphasis;and dynamic shifts Innovation GrowthCenter InvestmentCenter StrategicFocus CostCenter ProfitCenter Implementation Business IT/IS Leadership Responsibility 46 © 2009: N. Venkatraman

47. There are significant gaps in reality.. 1 Today Desired IT Capital for Innovation IT Capital for Implementation 47 © 2009: N. Venkatraman

48. There are significant gaps in reality.. 2 Today Desired IT competence for Innovation IT competence for Implementation 48 © 2009: N. Venkatraman

49. There are significant gaps in reality.. 3 Today Desired IT Sourcing for Innovation IT Sourcing for Implementation 49 © 2009: N. Venkatraman

50. There are significant gaps in reality.. 4 Today Desired IT Performance for Innovation IT Performance for Implementation 50 © 2009: N. Venkatraman

51. There are significant gaps in reality.. 5 Today Desired IT Mandate for Innovation IT Mandate for Implementation 51 © 2009: N. Venkatraman

52. Discussion Overview 52 ©2009: N. Venkatraman 1 3 2 4

53. Leadership challenges We say innovation… but we manage for implementation We say future… but we manage for today (and yesterday) We say business value.. But we get bogged down with IT costs We say shared business-IT responsibility but we blame IT for the problems © 2009: N. Venkatraman 53

54. Winning with IT Value creation for today & tomorrow No business innovations without IT “You” 54 © 2009: N. Venkatraman

55. So….in conclusion IT’s impact beyond traditional process domain We are in the early stages of transformation with IT Business models built on and with IT functionality Business organizations architected with IT Continuous balancing of innovation and implementation More diffused but coordinated responsibility for IT 55 © 2009: N. Venkatraman

56. © 2009: N. Venkatraman 56 Winning with IT:Can you make it happen? Thanks very much….