Enterprise and Global Management of Information Technology

1. Enterprise and Global Management of Information Technology

2. Section I Managing Information Technology

3. Business and IT • As companies are transformed into global e-businesses and players in global e-commerce, it is vital for business managers and professionals to understand how to manage this vital function.

4. The Impact of IT on Managers • A major force for rapid or enabling organizational and managerial change • Enables innovative changes in managerial decision making, organizational structures, and managerial work activities

5. The Impact of IT on Organizations • Key dimensions of the networked enterprise • Organizational structure • Leadership and governance • People and culture • Collaboration and unity • Knowledge • Alliances

6. Managing Information Technology • Three major components • Managing the joint development and implementation of e-business and IT strategies • Managing the development of e-business applications and the research & implementation of new IT

7. Managing Information Technology (continued) • Three major components (continued) • Managing the IT processes, professionals, & subunits with the IT organization & IS function

8. Managing the IS Function • Organizing IT • Centralization • Decentralization • Latest trend, hybrid

9. Managing the IS Function (continued) • Managing Application Development • Involves managing activities such as • systems analysis and design • prototyping • applications programming • project management • quality assurance • systems maintenance

10. Managing the IS Function (continued) • Managing IS Operations • Managing the use of hardware, software, network, and personnel resources in data centers/computer centers within an organization

11. Managing the IS Function (continued) • Managing IS operations (continued) • Operational activities • Computer systems operations • Network management • Production control • Production support

12. Managing the IS Function (continued) • Managing IS Operations (continued) • System Performance Monitors • Monitor processing of computer jobs • Helps develop a planned schedule • Produce detailed stats for planning and control of computing capacity • Process control

13. Managing the IS Function (continued) • Human Resource Management of IT • Recruit qualified personnel • Develop, organize, and direct the capabilities of existing personnel • Train employees • Design career paths and set salary and wage levels

14. Managing the IS Function (continued) • The CIO and Other IT Executives • Chief Information Officer (CIO) • Oversees all use of IT in many companies. • Brings the IT function into alignment with strategic business goals • Concentrates on business/IT planning and strategy • Helps develop strategic uses of IT in e-business and e-commerce

15. Managing the IS Function (continued) • Technology Management • All IT must be managed as a technology platform for integrated e-business and e-commerce systems • May assign a Chief Technology Officer (CTO) • In charge of all IT planning and deployment

16. Managing the IS Function (continued) • Managing User Services • Functions to support and manage end user and workgroup computing • Provides both opportunities and problems for business unit managers • Help desks • Establish and enforce policies

17. Failures in IT Management • IT is not being used effectively by companies that use IT primarily to computerize traditional business processes, instead of using it for innovative e-business processes • IT is not being used efficiently by IS that provide poor response times and frequent down times or when application development projects are not managed properly

18. Failures in IT Management (continued) • Management Involvement and Governance • Senior management needs to be involved in critical business/IT decisions to optimize the business value and performance of the IT function. • Requires development of governance structures that encourage active participation in planning and controlling the business uses of IT.

19. Failures in IT Management (continued) • Avoid IS performance problems • Improve the strategic business value of IT

20. Section II Managing Global IT

21. The International Dimension • A vital part of managing an e-business enterprise in the internetworked global economies and markets of today.

22. Global IT Management

23. Cultural, Political, and Geoeconomic Challenges • Cultural challenges • Differences in languages • Cultural interests • Religions • Customs • Social attitudes • Political philosophies

24. Cultural, Political, and Geoeconomic Challenges (continued) • Political challenges • Rules regulating or prohibiting transfer of data across their national boundaries • Severe restrictions, taxes, or prohibitions against imports of hardware and software • Local content laws • Reciprocal trade agreements

25. Cultural, Political, and Geoeconomic Challenges (continued) • Geoeconomic Challenges • The effects of geography on the economic realities of international business activities • Distance • Real-time communication • Lack of good-quality telephone and telecommunications service • Lack of job skills • Cost of living and labor costs

26. Global e-Business Strategies • Moving away from • Autonomous foreign subsidiaries • Autonomous foreign subsidiaries, dependent on headquarters for new processes, products, and ideas • Close management of worldwide operations by headquarters

27. Global e-Business Strategies (continued) • Moving toward • Reliance on information systems and Internet technologies to help integrate global business activities • An integrated, cooperative worldwide hardware, software, and Internet-based architecture for IT platforms

28. Global e-Business Applications • IT applications depend on a variety of global business drivers, caused by the nature of the industry and its competitive or environmental forces • Global customers • Global products • Global operations • Global resources • Global collaboration

29. Global IT Platforms • The technology infrastructure • Technically complex • Major political and cultural implications • Challenges • Managing international data communications networks • Network management issues • Regulatory issues • Technology issues • Country-oriented issues

30. Global IT Platforms (continued) • The Internet as a Global IT Platform • Companies can • Expand markets • Reduce communications and distribution costs • Improve their profit margins • Low cost interactive channel for communications and data exchange

31. Global Data Access Issues • Transborder data flows (TDF) • Data flow across international borders over telecommunications networks of global information systems

32. Global Data Access Issues (continued) • Many countries view TDF as violating their national sovereignty • Others, as violating their laws to protect the local IT industry or to protect local jobs • May view TDF as a violation of their privacy legislation

33. Global Data Access Issues (continued) • Internet Access Issues • High government access fees • Government monitored access • Government filtered access • No public access allowed

34. Global Systems Development • Challenges • Conflicts over local versus global system requirements • Difficulties agreeing on common system features • Disturbances caused by systems implementation and maintenance activities

35. Global Systems Development (continued) • Challenges (continued) • Trade-offs between developing one system that can run on multiple computer and operating system platforms, or letting each local site customize the software for its own platform • Global standardization of data definitions

36. Global Systems Development (continued) • Systems Development Strategies • Transforming an application used by the home office into a global application • Setting up a multinational development team to ensure the system design meets the needs of local sites as well as headquarters • Parallel development • Centers of excellence

37. Discussion Questions • What has been the impact of e-business technologies on the work relationships, activities, and resources of managers?

38. Discussion Questions (continued) • How are Internet technologies affecting the structure and work roles of modern organizations?

39. Discussion Questions (continued) • Should the IS function in a business be centralized or decentralized? What recent developments support your answer? • How will the Internet, intranets, and extranets affect each of the components of global information technology management?

40. Discussion Questions (continued) • How might cultural, political, or geoeconomic challenges affect a global company’s use of the Internet? • Will the increasing use of the Internet by firms with global e-business operations change their move toward a transnational business strategy?