1. Enterprise and Global Management of Information Technology Chapter 14 McGraw-Hill/IrwinCopyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 14-2 Identify each of the three components of information technology management and use examples to illustrate how they might be implemented in a business. Explain how failures in IT management can be reduced by the involvement of business managers in IT planning and management. Identify several cultural, political, and geo- economic challenges that confront managers in the management of global information technologies. Learning Objectives

3. 14-3 Explain the effect on global business/IT strategy of the trend toward a transnational business strategy by international business organizations Identify several considerations that affect the choice of IT applications, IT platforms, data access policies, and systems development methods by a global business enterprise Understand the fundamental concepts of outsourcing and offshoring, as well as the primary reasons for selecting such an approach to IS/IT management Learning Objectives

4. 14-4 Business and IT To become global powerhouses, companies invest in –Global e-business –E-commerce –Other IT initiatives Business managers and professionals need to understand to manage this vital organizational function

5. 14-5 RWC 1: Reinventing IT at BP CEO called BP –“Serious underperformer” –“Promised a lot but not delivered very much” CIO called for serious reductions –$3 Billion budget –2,000 vendors –4,200 IT employees Replaced 80% of top IT leadership Moved from centralized to embed IT Rebid supplier contracts Vendors had to re-earn business

6. 14-6 Components of IT Management

7. 14-7 Business/IT Planning

8. 14-8 Business/IT Planning

9. 14-9 Business/IT Planning

10. 14-10 Avnet Marshall Organizational Components

11. 14-11 Organizing IT Early Years –Centralization of computing with large mainframes Next –Downsizing and moving back to decentralization –Proliferation of mid-range and mini-computers Current –Hybrid of centralized and decentralized components –IS Subsidiaries –Outsourcing Systems integrators Application service providers

12. 14-12 Managing Application Development Systems analysis and design Prototyping Applications programming Project management Quality assurance System maintenance

13. 14-13 Managing IS Operations Data Centers –Hardware, software, network, personnel Computer system operations –Network management, production control and support –System monitors –Chargeback systems

14. 14-14 IT Staff Planning Recruiting, training and retaining Evaluating employee job performance Rewarding outstanding performance Setting salary and wage levels Designing career paths –Chief Information Officer (CIO) –Chief Technology Officer (CTO) –E-commerce architect –Technical team leader –Practice manager –Systems analyst

15. 14-15 Technology Management Platform for integrating business applications –Both internally or externally focused Technologies –Internet, intranets, e-commerce and collaboration, CRM, ERP, and SCM software Responsibility of Chief Technology Officer

16. 14-16 Managing User Services Support end user and workgroup computing Key roles –Troubleshooting problems –Gathering and communicating information –Coordinating educational efforts –Helping with end user application development

17. 14-17 Outsourcing’s Top Ten

18. 14-18 Failures in IT Management IT not used effectively –Computerizing traditional business processes –Need to develop innovative e-business processes IT not used efficiently –Poor response times –Frequent downtimes –Poorly managed application development

19. 14-19 Sr. Management’s Involvement in IT

20. 14-20 COBIT and Business Objectives

21. 14-21 The International Dimension New global models –Structured, yet agile –Global, yet local –Maximizing the risk-adjusted return

22. 14-22 Global Teams – Best Practices Obtain local HR expertise Create job grade consistency across regions Manage dispersed staff as portfolio teams Make the work meaningful Clearly defining the roles of remote groups Bring remote staff to headquarters Foster communication across regional boundaries

23. 14-23 Emerging markets –Demand attention, creativity –Require different, simpler business models –Country specific challenges South America – Mom and Pop shops Africa – limited broadband access Brazil – high tariffs Dubai and Abu Dubai – cheaper to import –Provide testing ground for new technologies or processes RWC 2: IT Leaders Face New Challenges

24. 14-24 Global IT Management Dimensions

25. 14-25 Transnational Business/IT Strategies

26. 14-26 Global Business Drivers Competitive or environmental forces drive business requirements Examples of global drivers: –Customers –Products –Operations –Resources –Collaboration

27. 14-27 Global IT Platforms Hardware Difficulties –High prices –High tariffs –Import restrictions –Long lead times for government approvals –Lack of local service or spare parts –Lack of documentation tailored to local conditions Software Difficulties –Incompatibility of software Europe vs Asia vs US –Publisher reluctance May refuse to supply markets that disregard software licensing and copyright agreements

28. 14-28 International Data Communications Issues

29. 14-29 The Internet as a Global IT Platform The Internet –An interconnected matrix that reaches tens of millions of users in over 100 countries –Business environment is free of traditional boundaries and limits Without incurring massive cost outlays for telecommunications, companies can –Expand markets –Reduce communications and distribution costs –Improve profit margins

30. Establishing Global Websites 14-30

31. 14-31 Internet Users by World Region

32. 14-32 Global Data Access Issues Transborder Data Flows may be viewed as violating –National sovereignty –Laws protecting local IT from competition –Laws protecting local jobs –Privacy legislation

33. 14-33 U.S.-E.U. Data Privacy Requirements Key data privacy provisions –Notice of purpose and use of data collected –Ability to opt out of third-party data distribution –Access for consumers to their information –Adequate security, data integrity, and enforcement

34. 14-34 Internet Access in Restrictive Countries Revolves around –Controlling the conduits –Filtering the flows –Punishing the purveyors For most of the world restriction is not viable –Hurts opportunities for growth and prosperity

35. 14-35 Global Government Internet Restrictions High Government Access Fees –Kazakhstan, Kyrgyzstan Government Monitored Access –China, Iran, Saudi Arabia, Azerbaijan, Ubekistan Government Filtered Access –Belarus, Cuba, Iraq, Tunisia, Sierra Leone, Tajikistan, Turkmenistan, Vietnam No Public Access Allowed –Burma, Libya, North Korea

36. 14-36 Global Systems Development Key development issues –Conflicts over local vs global system requirements –Agreement on common system features –Disturbances caused by systems implementation and maintenance activities –Global standardization of data definitions

37. 14-37 Systems Development Strategies Key strategies for global systems development –Transform an application used by the home office or a subsidiary into a global application –Set up a multinational development team –Parallel development –Centers of excellence –Offshore development

38. 14-38 Internet-Enabled IT Development

39. 14-39 RWC 3: Retiring CIOs and Succession CIO role increasingly strategic and influential CIO skills shifting Shortage of qualified managers Developing and mentoring successors –Key responsibility

40. 14-40 RWC 4: Unified Global Operations Important challenge –Consistency in worldwide implementations Reinsurance Group of America developed a single system to manage –Different languages –Different time zones –Different business methods Return on investment - 15% –Better than expected