What this chapter covers
The business case for IS and AI: benefits, total cost of ownership, risks, ROI and NPV, and the productivity J-curve. Benchmarking IT spending. Alignment between business and IT strategy. Sourcing choices: build, buy, SaaS, partner. The ERP journey: software selection, implementation approaches, typical pitfalls, the role of Finance. Managing projects and change, from waterfall to agile; adoption journeys for AI.
What changes with AI
Why time saved is not yet money saved, and how to measure the value of AI.
Materials and practice
SlidesAvailable after class
HandoutAvailable after class
Self-CheckQuiz and exam practiceExerciseA worked case with solutionReadings
- Carr, IT Doesn't Matter, HBR (2003) Article (to debate)
- Henderson and Venkatraman, Strategic Alignment: Leveraging Information Technology for Transforming Organizations, IBM Systems Journal 32(1), 4-16 (1993) Paper (classic)
- Brynjolfsson, Rock and Syverson, The Productivity J-Curve, AEJ: Macroeconomics (2021) Paper (free NBER version)
- Bovetti, A(I)doption: a framework for organisational AI adoption Framework (optional)