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?