[MUSIC] Every department might seem a bit complex when you look at them. But your IT department usually frighten people. People tend to think it's very complicated. Maybe because of the technology. Maybe because of the language. In this video, we would like to explain in a very simple way, how the IT department work, and why it is a business in itself. One other way to think about IT departments is like a value chain. Our business an IT department start with R&D. Why R&D? Because when there is new technology, you can develop new products in IT. For example, 20 years ago, the ERP, enterprise resource system was developed. SAP and Norelco was the leader in the field. It was a good way to automatize back office. It was a new technology that IT had to take over. Today, we're buying platform, smartphone, and new technology that allows IT to develop application for the consumer. So we start with R&D. We need to be aware of the technology and IT needs to be very much into the technology. What is coming in? Once you have found a technology that's similar by platform, you have to develop application. You have to go and build project. Then, you have to put them into production. Project mission on mainframe, on servers, on PCs. So there is a world technology thing again coming in. Once we have the application running, you can start to sell them and market them. Of course, ideally, if you've done a good marketing, your applications are awaited by the client, but sometimes you still have to do a bit of convincing. So you need to be smart in the way you are selling your application to the client, or marketing them. And then, there is the after sell, where the application is out in the field. You have to support the people to have them deploy the application or the technology to have them solve the issues it might have, to have them review the product. As you can see in this cartoon, after sale is critical, and there is a big monster trying to get out of the after sale box. Why is that? Because when the application is on the field, you start to see many things. There are menus that you didn't think about, many cases you didn't think about, and if you have a complex partfolio application of technology, putting in place new technology might have a strange impact on an old technology. So one of the role of the CIO is to have a very good R&D with good architectural capabilities to make sure that they will make the aftersale. What you see is that actually you have three factories. One factory is, about developing project. It's very important, but it's not the only factory. The second factory is about running infrastructure. The third factory is about user support. We'll go in details into the three factories in lecture four. Until then, you see, it's not that complex. And it's a great job. Being a CIO is like being a business owner. You have all the component of a business. This is why it's such a great job. And if you add to this, the transformation dimension it's really a great business industry port. So enjoy it and let's continue.