1 enterprise and global management of information technology
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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.
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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
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The Impact of IT on Organizations
Key dimensions of the networked enterpriseOrganizational structureLeadership and governancePeople and cultureCollaboration and unity KnowledgeAlliances
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Managing Information Technology
Three major componentsManaging 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
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Managing Information Technology (continued)
Three major components (continued)Managing the IT processes, professionals, &
subunits with the IT organization & IS function
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Managing the IS Function (continued)
Managing Application DevelopmentInvolves managing activities such as
systems analysis and design prototypingapplications programming project managementquality assurancesystems maintenance
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Managing the IS Function (continued)
Managing IS OperationsManaging the use of hardware, software,
network, and personnel resources in data centers/computer centers within an organization
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Managing the IS Function (continued)
Managing IS operations (continued)Operational activities Computer systems operationsNetwork managementProduction controlProduction support
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Managing the IS Function (continued)
Managing IS Operations (continued)System Performance Monitors
Monitor processing of computer jobsHelps develop a planned scheduleProduce detailed stats for planning and
control of computing capacityProcess control
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Managing the IS Function (continued)
Human Resource Management of ITRecruit qualified personnelDevelop, organize, and direct the capabilities
of existing personnelTrain employeesDesign career paths and set salary and wage
levels
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Managing the IS Function (continued)
The CIO and Other IT ExecutivesChief Information Officer (CIO)
Oversees all use of IT in many companies.Brings the IT function into alignment with
strategic business goalsConcentrates on business/IT planning and
strategyHelps develop strategic uses of IT in e-
business and e-commerce
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Managing the IS Function (continued)
Technology ManagementAll 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
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Managing the IS Function (continued)
Managing User ServicesFunctions to support and manage end user
and workgroup computingProvides both opportunities and problems
for business unit managersHelp desksEstablish and enforce policies
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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
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Failures in IT Management (continued)
Management Involvement and GovernanceSenior 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.
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Failures in IT Management (continued)
Avoid IS performance problems
Improve the strategic business value of IT
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The International Dimension
A vital part of managing an e-business enterprise in the internetworked global economies and markets of today.
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Cultural, Political, and Geoeconomic Challenges
Cultural challengesDifferences in languagesCultural interestsReligionsCustomsSocial attitudesPolitical philosophies
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Cultural, Political, and Geoeconomic Challenges (continued)
Political challengesRules regulating or prohibiting transfer of
data across their national boundariesSevere restrictions, taxes, or prohibitions
against imports of hardware and softwareLocal content lawsReciprocal trade agreements
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Cultural, Political, and Geoeconomic Challenges (continued)
Geoeconomic ChallengesThe effects of geography on the economic
realities of international business activitiesDistanceReal-time communicationLack of good-quality telephone and
telecommunications serviceLack of job skillsCost of living and labor costs
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Global e-Business Strategies
Moving away fromAutonomous foreign subsidiariesAutonomous foreign subsidiaries, dependent
on headquarters for new processes, products, and ideas
Close management of worldwide operations by headquarters
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Global e-Business Strategies (continued)
Moving towardReliance 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
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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 forcesGlobal customersGlobal productsGlobal operationsGlobal resourcesGlobal collaboration
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Global IT Platforms
The technology infrastructureTechnically complex Major political and cultural implicationsChallenges
Managing international data communications networksNetwork management issuesRegulatory issuesTechnology issuesCountry-oriented issues
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Global IT Platforms (continued)
The Internet as a Global IT PlatformCompanies can
Expand marketsReduce communications and distribution
costsImprove their profit margins
Low cost interactive channel for communications and data exchange
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Global Data Access Issues
Transborder data flows (TDF)Data flow across international borders over
telecommunications networks of global information systems
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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
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Global Data Access Issues (continued)
Internet Access IssuesHigh government access feesGovernment monitored accessGovernment filtered accessNo public access allowed
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Global Systems Development
ChallengesConflicts over local versus global system
requirementsDifficulties agreeing on common system
featuresDisturbances caused by systems
implementation and maintenance activities
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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
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Global Systems Development (continued)
Systems Development StrategiesTransforming an application used by the
home office into a global applicationSetting up a multinational development
team to ensure the system design meets the needs of local sites as well as headquarters
Parallel developmentCenters of excellence
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Discussion Questions
What has been the impact of e-business technologies on the work relationships, activities, and resources of managers?
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Discussion Questions (continued)
How are Internet technologies affecting the structure and work roles of modern organizations?
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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?