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This preparation sheet is for session #12 of mi 703 computer information systems at the university of hawaii, focusing on optimizing it infrastructure operations. The session, led by prof paul tallon, covers it operations, server consolidation in a swedish bank, and it infrastructure flexibility. Required readings include case studies, articles, and research papers.
Typology: Study notes
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As the least attractive aspect of IT, IT operations are often overlooked and ignored. When something breaks, users frequently turn to the folks in operations to fix things. Operations are also the one part of the IT organization where costs can grow out of control. In this case, we will look at a technical case of server consolidation in a Swedish bank. The content of the case is a lot more technical than we are used to up to this point, but the detail is a necessary part of understanding what operations needs to do in order for the IT organization to be effective. We will also examine issues surrounding chargeback systems.
The session will begin with Team H doing a 20 minute case analysis presentation, after which Prof Tallon will lead the class in discussion of the case.
Then, in the last part of class, Prof Tallon will give a mini lecture based on some results from his own research on IT infrastructure. Prof Tallon describes this lecture as follows: “One of the lessons learned from the Postgirot case is that, in the right hands, infrastructure can be strategic. More than the hardware, software and networking resources that comprise a firm’s technical IT infrastructure, infrastructure flexibility is what ultimately determines whether a firm can adapt to change. Those firms that are unable to adapt to change – falling into what the academic literature calls rigidity traps – may find their competitive performance erodes to negligible levels. In this presentation, we use survey data from 241 U.S. corporations to show how firms use IT infrastructure flexibility to achieve and maintain competitive advantage during periods of intense change. We will also examine a series of case studies that provide an up-close and personal view of how IT infrastructure adapts to change in a small number of firms.”
This case is about optimizing IT investment decisions in a bank through a consolidation process that tries to keep the lid on ever-increasing IT costs. Postgirot is gradually centralizing its once- decentralized systems and so the need for rationalization may be obvious. We get a sense from the case that IT may be strategic and so there may be a culture working against consolidation rather than trying to optimize costs to the detriment of everything else. Cutting costs may compromise some of the IT value that the systems have created for end users over recent months. Information on the companies in the case can be found at www.postgirotbank.com and www.provment.se (both sites are in English).
Approach to preparing the case presentation: