Management of Information Systems Analysis: GE CIO Interview Insights

This report provides an in-depth analysis of an interview with GE's Chief Information Officer (CIO), Jim Fowler, examining key themes in the management of information systems. The report explores critical issues such as the cost of IT, the strategic use of data, the shift towards viewing IT as a product, ...Read More

Running header: MANAGEMENT OF INFORMATION SYSTEMS 1
Management of Information Systems
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Institution
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Introduction
This is a management of information systems paper that is built from an interview from the
chief information officer Jim Fowler of GE. The paper forms appraise to a range issues
comprising the theme captured, IT history of the company, strategy and approach to the stated
theme as well as possible negative and positive points about the theme (ComputerWeekly.com,
2018). In addition, from the basis management of information system the paper will highlight the
issues that need to be addressed by the CIO and give possible recommendation of the same.
Themes
Following the Jim Fowler interview, he critically points of some issues that are subject to
management of information system (ComputerWeekly.com, 2018). This put these issues into
perspective that will form four major themes namely:
 Cost of IT
 Using data as strategic company asset
 Thinking of IT as a product
 Obsolesce and performance of IT products
Cost of IT
The cost of information systems is defined in terms of software, hardware, procedures,
staff and requirement that is associated with the process of implementation (Laudon and Laudon,
2015). The increasing intertwining of IT and business is turning out to be costly and complex to

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manage. From the Fowler interview gives a perspective to this when he says 16 years ago when
he joined the company the focus was the cost of IT. To this angle GE concentrated on lowering
the cost of IT and the CIO running IT cheaply as possible.
The implication of cost-induced ambiguity and operational cost often baffle CIOs. While
maintaining satisfying need to innovate and grow as well as maintain operational excellence, the
CIOs are expected to keep IT costs in check (Galliers and Leidner, 2014). A task is doomed to
fail if the organization cannot handle IT cost from the beginning. There are several factors that
impose challenges in establishing true cost of IT, mostly operational complexity is considered
the main reason.
Using Data as Strategic Company Asset
Currently many organizations across the world has acknowledging information as
strategic business asset through the creation of the position of chief data officer and a person can
distinguish from the technology it flows. In the interview the Fowler indicates this “ the vision of
the chief digital officer Immelt is to make GE top-10 software by making the IT the main asset
and the company will utilize it to drive data efficiencies internally as well as externally
(ComputerWeekly.com, 2018) . Fowler further adds by saying that Immelt is change the
mentality by moving away from backroom operations and making data as a strategic company
asset.
It is important to use data as a strategic asset and as a key in dealing with enormous
challenge because it is readily available which can translate to financial gains or benefits.

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According to Fowler, allowing themselves to be commoditized they were not able to see the
future where all information and data came together or how it was related to driving the next
level of industrial revolution. In addition, it offers an organization competitive advantage
(ComputerWeekly.com, 2018).
Most of the newly established companies have this as part of their system while others
will adopt it. A well-designed information management governance and capabilities are crucial
to an organization (Järveläinen, 2013). This data assist organization chiefs to collect the accurate
data in order to make the right decision at the right time, enabling rapid responses in
transforming the business at lower cost with less errors and leading to an efficient performance.
IT as a product
The CIOs are shifting the way they are delivering the technology services to their
business due to the proliferation of consumer technologies. Fowler demonstrates this argument
by saying that they is a generation of people who manages projects (ComputerWeekly.com,
2018). However, in the end people need to think of IT as a product. Walmart CIO Clay Johnson
is an example where he has been delivering IT as products instead of systems or products. The
culture of Walmart is transforming how traditional organization are following in the steps of
companies like Uber, Facebook and other whose products are meant for large masses of
consumer (Van Der Aalst, La Rosa, and Santoro, 2016).
Rigorous and time-consuming waterfall model is no longer viable for companies
delivering IT services seeking to keep or leapfrog abreast of competitors (Chang, 2015).

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Currently social technologies and mobile increasingly the focal point of technology services,
organization are implementing agile methodologies, with week by week as opposed to month-to-
month delivery cycles finished in conjunction with business peers who will devour what IT
conveys.
Obsolescence and performance of IT products
An estimation of product’s end operational cycle is alluded as Product obsolescence.
Product obsolescence is commonly measured during or before the product development phase
and is projected using statistics industry growth and using the future and past technological.
Fowler contends that availability, performance and obsolescence are given that CIOs should be
able to perform as part of the job (Venkatesh, Brown and Bala, 2013). In computing software
and hardware become obsolete once they are supplanted by better and newer versions.
Product obsolescence management can be as easy as being aware when to respond
regarding meantime between failures for ball bearing in rotor, to as intricate as tracking the
needed replacement plan for a jet engine subassembly (Van De Walle, Turoff, and Hiltz, 2014).
Companies require to have some ability to report and track product obsolescence issues, as in
capital asset manufacturing.
Recent IT history of GE
GE was used to outsourcing of IT seventy percent of its IT to an offshore ideal provider.
As quoted from the interview this was the trend for most organization as it was considered as
core to the business (Hall, 2012). Outsourcing was a risky for both the business and IT function.

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Particularly, subcontracting made IT ill-prepared for digital transformation that was about to
occur.
Consequently, they was formation of GE digital team that was led by Bill Ruh that
transformed the internal IT mindset and think of IT as a product. As a result of this development
the IT work was taken as a project. From this point, the GE had a generation of individuals who
oversaw the projects. Subsequently to this, the internal IT team of GE was similar to a software
company and development of application was to be done internally (Van De Walle, Turoff, and
Hiltz, 2014). The applications developed by IT team were connected to systems across the
organization. Predix was such software develop to resolve apparently simple problem which was
to identify fasteners (namely bolts, nuts, washers and screw) which were being utilized
transversely to all GE’s business.
Problems and issues that CIO must address
According to the literature available there are no specific description of roles of the CIO. The
title of the job indicates that it is an exclusive position that deals with the information technology
requirements of an enterprise. However this does not mean that they work the IT directors. In
fact, several CIOs are currently distancing themselves from operative duties (Stair, and
Reynolds, 2013). The roles are sometimes known as CTO (Chief Technology Officer), however
on paper, minor differences between the two posts are experienced. The key roles of CIOs are as
follow:
 Create value of a business through technology

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 Strategic designing of business development objectives
 Making sure that the tech procedures and systems results to outcomes that match with
business objectives
Company objectives are vital for the reason that only the one rhyming with the high
technology needs of clients will experience positive growth. CIO is an important portion of a
business’s digital revolution. In addition, digital disruption, AI, and the IoT (Internet of Things)
are causing more impact in terms of customer produces (Stair, and Reynolds, 2013). Due to these
skills in the leader’s position, the CIOs does not concentrate much on the running of the IT
section of an enterprise. Focus has changed to market reach, data security, and service analysis.
Future Strategy And Direction That CIO Should Pursue.
 development team employees and IT management
 Development of consumer service platforms
 Vendor dialogs as well as IT architecture
 Managing suppliers
 IRM (Information risk management)
 IS policies, standards, and strategies.
 Technology budgets and futures
 Offering assistance as well as advices to senior directors on IT management and
acquisition;

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 Developing, facilitating and maintaining implementation of an integrated and sound IT
architecture;
 Promote efficient and effective design as well as working of all key IRM procedures for
the enterprise, including growth to work procedures.
The Negative and Positive Points about the Theme
What is said in the interview reflects a leader who has company’s best interest at heart. He
says that his aim is to change approach of IT in a company whereby instead of operating from
backroom, data is made a strategic asset of a company. An aspect of a committed leader is seen
where he say that he has to be available to assist business partners in understanding the way to
disrupt. However there are positive points that should be maintained and negative points that
should be addressed, For instance;
 CIOs are sometimes busy responding to audit and regulation issues instead of helping the
company to make money and acquire its competitive benefit through its information and
technology systems.
 They have to manage legacy systems (Several companies are still using WindowsXP for
it is difficult to move on.
Both managers and leaders in the IT department must continue to improve their craft that will
help them grow professionally, personally and make sure they continue to succeed in IT
(Chaffey, and White, 2010).

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CIOs have excellent communication skills, important to make great managers and
leaders. An IT leader must work with people from walk of life and departments (Bélanger, and
Crossler, 2011). This is a positive point where they should maintain or even improve to be in a
position to articulate their messages clearly.
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