Olin School — Babson College

MIS 7550 — Deploying IT Strategically — Fall 1998

Assignment for Class 2 — September 14, 1998

 

Read: "State Street Boston Corporation: Leading With Information Technology" and the three other articles for this class in the course pack, pp. 7-57.

Our visitor will be Mr. David Sexton, former CIO of State Street Corporation.

Be prepared to present your full answers to the following:

  1. What are the key financial indicators of State Street’s performance? Is it a success?
  2. Describe briefly the nature of State Street’s business and the role played by IT as a strategic resource to the business in the three eras of IT since the 1960’s. Be sure you understand the products and services provided in each area of business. (Make use of frameworks presented in our first class and available on the course website.)
  3. Focusing on the use of IT at State Street, what are the three to five key aspects, features or descriptors of its organization and management which appear to have made it successful in the business? (As a checklist of things to look at, make use of the " 7-S" and "Business Diamond" frameworks from the website.)
  4. What are the similarities and differences in the way IT is thought of and managed at State Street compared to American Airlines, as described by Hopper? Consider particularly the idea of the evolution of the IT resource toward a "utility" with applications developed by the end users.
  5. What do Evans and Wurster say about the traditional tradeoff between "richness" and "reach"? Assuming they are right, what are the opportunities and what are the threats for State Street?
  6. As a consultant to the top management of State Street, prepare a verbal presentation on the following points:
  1. Two or three alternative scenarios of the future customer needs in the businesses State Street is now in. That is, imagine distinctively different needs for each scenario. Include in your thinking the role of IT in each scenario.
  2. Brief assessment of State Street’s strengths and weaknesses relative to each of the customer needs scenarios.
  3. Specific recommendations for action by State Street top management.



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