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Related Experiment Videos

How executives can shape their company's information systems.

T H Davenport, H Hammer, T J Metsisto

    Harvard Business Review
    |February 8, 1989
    PubMed
    Summary

    Companies need a new approach for information technology (IT) decisions. Establishing IT principles guided by senior management ensures technology investments align with strategic business goals.

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    Area of Science:

    • Business Administration
    • Information Systems Management

    Background:

    • Disagreements between technical experts and senior management hinder IT decision-making.
    • Lack of understanding of business strategy by IT specialists and technical jargon by managers creates bottlenecks.

    Purpose of the Study:

    • To propose a new approach for making informed information technology (IT) investment decisions.
    • To bridge the communication gap between technical and managerial teams in IT procurement.

    Main Methods:

    • Establishment of a cross-functional task force involving top management.
    • Development of 10-15 guiding principles based on management's beliefs about IT usage.
    • Translation of corporate strategy into IT-compatible principles.

    Main Results:

    • Principles facilitate faster IT decision-making by providing clear guidelines.
    • Ensures that all IT investments directly support the corporation's strategic objectives.
    • Example: An electronics company used principles to ensure cross-functional integration.

    Conclusions:

    • A task force approach with management-defined IT principles optimizes IT investment decisions.
    • This method aligns technology adoption with overarching business strategy.
    • It improves efficiency and strategic coherence in IT implementation.

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