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:
- What are the key financial indicators of State Streets performance? Is it a success?
- Describe briefly the nature of State Streets business and the role played by
IT as a strategic resource to the business in the three eras of IT since the 1960s.
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.)
- 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.)
- 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.
- 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?
- As a consultant to the top management of State Street, prepare a verbal presentation on
the following points:
- 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.
- Brief assessment of State Streets strengths and weaknesses relative to each of the
customer needs scenarios.
- Specific recommendations for action by State Street top management.
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