Chapter 14 Enterprise and Global Management of Information Technology

2 Section 1 Managing IT for the Enterprise

3 II. Managing Information Technology IT Management

4 V. Organizing IT  Historically, IT was first centralized (mainframes), the decentralized (distributed client/server), and is now more of a hybrid approach

5 VI. Outsourcing and Offshoring IT and IS  Outsourcing – purchasing products/services that were previously provided internally; 5 main reasons:  Save Money – Achieve Greater Return on Investment (ROI) – outsourcing can provide large cost savings  Focus on Core Competencies – outsourcing allows a firm to concentrate on their own business/industry, not on IT  Achieve Flexible Staffing Levels – outsourcing allows business growth without increasing overhead  Gain Access to Global Resources – outsourcing provides access to IT resources all over the world  Decrease Time to Market – outsourcing allows small firms to compete successfully against larger firms

6 VI. Outsourcing and Offshoring IT and IS  Offshoring – relocation of a firm’s business processes to a lower-cost location, usually overseas  Trends in Outsourcing and Offshoring – originally outsourcing and offshoring were used to lower costs, but now are used to find highly talented IS/IT personnel

7 Section 2 Managing Global IT

8 I. The International Dimension  Managing a business today means dealing with the international dimension  Must include cultural, political, and geoeconomic challenges of the business community

9 V. Global Business/IT Applications  Global Business Drives – business requirements caused by the nature of the industry and its competitive environment  Global Customers – customers may be anywhere  Global Products – products are the same throughout the world  Global Operations – subsidiaries may change based on economics  Global Resources – use/cost of resources are shared by subsidiaries  Global Collaboration – knowledge/expertise of colleagues is shared

10 VI. Global IT Platforms (Infrastructure)  Technically complex, and has political and cultural implications  The Internet as a Global IT Platform – it has become a low-cost interactive channel for communications and data exchange

11 VIII. Global Systems Development  Imagine the challenges of developing a domestic system, then multiply that by the number of countries/cultures where that systems will be used  Systems Development Strategies  Transform a local application into a global application  Establish a Multinational Development Team to handle global application development  Establish Centers of Excellence – assign a project to a particular team based on its experience in that business or technical area

Key Indicators CriteriaPossible Measurement Workforce Compatibility LanguageSame language as home country Education level Secondary or greater education Literacy Rate Overall Wage Rate/GDP per capita GDP per Capita Average Wage Rate Cultural Issues Work Ethic Company culture compatibility Ideological/Social IssuesCompany culture compatibility Religious IssuesHolidays Compatibility with company Communications Infrastructure Telephone Lines/ Telecommunications Telephone lines per capita Reliability of Telecommunications Internet UsershipInternet subscribers per capita BandwidthInternational bandwidth per subscriber Technological ComparisonAvailable technology comparable to home country Standards Similarity to home countryCompatibility Seamless Integration (Reliability and Quality) Integratability of separate systems Global IT Management Challenges

Key Indicators CriteriaPossible Measurement Availability of Software/ Hardware Technical Support Availability Vendor Support Availability Support from home office Product Availability Product availability Product language compatibility Regulatory Structure Flexibility Government-run communications? Monopoly-run? Legal Legal Structure Risk Investment Protection Transborder data flow issues Trade policies Telecommunications network Taxes/Incentives/Tariffs/ Policies Tariff models that favor Internet access Tariff models that favor development Security/Quality of Data PiracyLaws/Regulations Language Translation IssuesSimilar language? Information Content/Security Time/Data format Formatting Issues Privacy regulations Currency issues Images/sounds Global IT Management Challenges (cont’d)

14 VII. Global Data Access Issues  Transborder Data Flows (TDF) are considered a violation of national sovereignty by many countries because they avoid customs duties and import/export regulations  Internet Access Issues – some countries restrict access to the Internet

15 As you finish up this class… How does this relate to careers?

16 EMPLOYABILITY SKILLS ACADEMIC SKILLS PERSONAL MANAGEMENT SKILLS TEAMWORK SKILLS

17 ACADEMIC SKILLS - Those skills which provide the basic foundation to get, keep and progress on a job and to achieve the best results. COMMUNICATE THINK/ANALYTICAL LEARN

18 PERSONAL MANAGEMENT - The combination of skills, attitudes and behaviors required to get, keep and progress on a job and to achieve the best results. CREATIVITY ORGANIZATIONAL PERSONALITY - POSITIVE ATTITUDES AND BEHAVIORS RESPONSIBILITY ADAPTABILITY

19 TEAMWORK SKILLS - Those skills needed to work with others on a job and to achieve the best results. Understand/contribute to the organization's goals Understand/work within the culture of the group Plan and make decisions with others and support the outcomes Respect the thoughts and opinions of others in the group Lead when appropriate, mobilizing the group for high performance

20 Developing a Mission Statement Artistic Attitude Career Education Family Financial Leisure Physical Social Spiritual

21 Remember the Wizard of OZ? THE YELLOW BRICK ROAD...

22 YELLOW BRICK ROAD...HEART COURAGE BRAIN

23 On Your Way to the Emerald City...

24 We’ve finished the last chapter!