Enterprise & Global Mgt of Information Technology

Introduction

As the 21st century unfolds, many companies are transforming themselves into global powerhouses via major investments ino Global e-business o Business and IT o E-commerce o Other IT initiatives There is a need for business managers and professionals to understand how to manage this vital organizational function.
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Learning Objectives

Explain the effect on global e-business strategy and the trends toward a transnational business strategy by international business organizations. Identify cultural, political, and geoeconomic challenges that confront managers in the management of global information technologies.
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Section I

Managing Information Technology

Managing Information Technology

Three major components

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2.

3.

Managing the joint development and implementation of e-business and IT strategies Managing the development of ebusiness applications and the research & implementation of new IT Managing the IT processes, professionals, & subunits with the IT organization & IS function

Managing IT

Managing the IS Function

Organizing IT

Centralization Decentralization Latest trend

Managing the IS Function (continued)

Managing Application Development

Involves managing activities such as

systems analysis and design applications programming project management quality assurance systems maintenance

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

Managing the IS Function (continued)

Managing IS operations (continued)

Operational activities requiring management

Computer systems operations Network management Production control Production support

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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

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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

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Management Roles

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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 ebusiness and e-commerce
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Managing the IS Function (continued)

Technology Management

All IT must be managed as a technology platform for integrated e-business and ecommerce 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 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

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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 ebusiness 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 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.
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Section II

Managing Global IT

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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Global IT Management

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Cultural, Political, and Geoeconomic Challenges

Cultural challenges

Differences in languages Cultural interests Religions Customs Social attitudes Political philosophies
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Cultural, Political, 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

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Cultural, Political, 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

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Global e-Business Strategies

Moving away from

Autonomous foreign subsidiaries Autonomous foreign subsidiaries, dependent on headquarters for new processes, products, and ideas

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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

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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 forces

Global customers Global products Global operations Global resources Global collaboration

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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

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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

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Global Data Access Issues

Transborder data flows (TDF)

Data flow across international borders over telecommunications networks of global information systems

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 Systems Development

Challenges

Conflicts over local versus global system requirements Difficulties agreeing on common system features Disturbances 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 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
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