1. Managing Information Technology
Unit - IV
Managing Information Technology

2. 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.

3. The Impact of IT on Managers
A major force for precipitating or enabling organizational and managerial change
Enables innovative changes in managerial decision making, organizational structures, and managerial work activities

4. The Impact of IT on Organizations
Key dimensions of the networked enterprise
Organizational structure
Leadership and governance
People and culture
Coherence
Knowledge
Alliances

5. 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

6. Managing Information Technology (continued)
Three major components (continued)
Managing the IT processes, professionals, & subunits with the IT organization & IS function

7. Managing the IS Function
Organizing IT
Centralization
Decentralization
Latest trend, hybrid

8. 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

9. 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

10. Managing the IS Function (continued)
Managing IS operations (continued)
Operational activities requiring management
Computer systems operations
Network management
Production control
Production support

11. 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
Chargeback systems
Process control

12. 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

13. 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

14. 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

15. 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

16. Managing Global IT

17. The International Dimension
A vital part of managing an e-business enterprise in the internetworked global economies and markets of today.

18. Global IT Management

19. Cultural, Political, and Geoeconomic Challenges
Cultural challenges
Differences in languages
Cultural interests
Religions
Customs
Social attitudes
Political philosophies

20. 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

21. Cultural, Political, and Geoeconomic Challenges (continued)
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

22. 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

23. 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

24. 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

25. 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

26. 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

27. Global Data Access Issues
Transborder data flows (TDF)
Data flow across international borders over telecommunications networks of global information systems

28. 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

29. Global Data Access Issues (continued)
Internet Access Issues
High government access fees
Government monitored access
Government filtered access
No public access allowed

30. 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

31. 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

32. 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

33. Information System Architectures (Traditional architectures, Client/server/Point-to-Point  architectures, Distributed architectures) 

34. Architectural Elements Architectural Elements
Server
Client
Network
The perpose of the client is to provide a user interface.
The server hold resourses as programs or data.
Servers may be mainframe computers, minicomputers or PC.
The more powerfull the server th more client it can handle.
The server must responds the clients requests.

35. Components of the an information system architecture
Some of the most important components of an information System architecture are
User Interface
Data management
Computation

36. User Interface Sometimes it called front end.
It consist of a keyboard, a video display and a mouse.
There are three main user interface technologies are used today:
Dumb terminal
X – terminal
PCs

37. Dumb terminal
The early dumb terminals keyboard and monochrom text – only display.
Keyboard input/Text – based output.
Dumb terminal was user – unfrendly.
X- Terminals
Such as in Unix systems.
Keyboard and mouse input/Text or graphical output.

38. Data Management
Three main data management technologies are used today:
Flat Files
Relational Databases
Object-oriented databases

39. Flat Files Characteristics: Lack data independence. Lack data sharing.
Lack standard language.

40. Relational Databases Characteristics: Provide data independence.
Provide data sharing.
Provide standard language (SQL).

41. Object-oriented databases
Characteristics:
Provide data independence.
Provide data sharing.
Provide elaborate support for objects.
Not yet standardized by international recognized standards body.

42. Traditional Architectures
There are two traditional Architectures:
Mainframe Architecture (1960)
File – Server Architecture (1980)

43. Mainframe Architecture
Mainframe Server
Dumb Terminal
Dumb Terminal

44. Characteristics of Mainframe Architecture
Component
Characteristic
Server hardware Mainframe computer or minicomputer
Client hardware Dumb terminals
User interface Keyboard input, text output
Data management Flat files
Computation management COBOL programs (non-portable) executed on server
Cost Medium or high
Reliability High
Security High
Scalability High
Flexibility Low

45. File-Server Architecture
Pc or Minicomputer Server
Desktop PC
Desktop PC

46. Characteristics of File-Server Architecture
Component
Characteristic
Server hardware PC
Client hardware PCs
User interface Keyboard input, text output
Data management Flat files
Computation management Programs Written in various languages (BASIC or dBase) executed on client
Cost Low
Reliability Low
Security Low
Scalability Low
Flexibility Low

47. Client/Server Architecture
Pc Minicomputer or Mainframe Server
Desktop PC
Desktop PC

48. Characteristics of Client/Server Architecture
Component
Characteristic
Server hardware PC, minicomputer, or mainframe
Client hardware PC
User interface Graphical
Data management Relational database
Computation management Programs Written in various languages executed on server or client
Cost Low to medium
Reliability High
Security High
Scalability High
Flexibility High

49. Web-Server-Based Architecture
Web Browser
Web Browser

50. Characteristics of Web Server Architecture
This is a particular form of Client-Server Architecture.
Web server – act as Server.
Web browser – act as Client.

51. Three-Tier Architecture
Server
Server
Middleware Server
Desktop PC
Desktop PC

52. Characteristics of Three-Tier Architecture
Client can access to the Middleware server through a thin driver.

53. Distributed Architecture
Desktop PC
Network
Desktop PC
Desktop PC

54. Characteristics of Distributed Architecture
Distributed architecture includes multiple servers.
Every host potentially acts as both client and server. (Point to point architecture)

55. Characteristics of Distributed Architecture
Component
Characteristic
Server hardware PC, minicomputer, or mainframe
Client hardware PC
User interface Graphical
Data management Relational database
Computation management Programs Written in various languages executed on server or client
Cost Medium
Reliability High
Security High
Scalability High
Flexibility High

56. EDI: Electronic Data Interchange
What is EDI?
Exchange of electronic data between companies using precisely defined transactions
Set of hardware, software, and standards that accommodate the EDI process

57. Electronic Data Interchange
Figure 11.2 Benefits of EDI

58. Electronic Data Interchange
Figure 11.3 Suppliers, manufacturers, and retailers cooperate in some of the most successful applications of EDI.

59. Electronic Data Exchange
How does EDI work? (Figure 11.4)
Supplier’s proposal sent electronically to purchasing organization.
Electronic contract approved over network.
Supplier manufactures and packages goods, attaching shipping data recorded on a bar code.
Quantities shipped and prices entered in system and flowed to invoicing program; invoices transmitted to purchasing organization

60. Electronic Data Exchange
Manufacturer ships order.
Shipment notice EDI transaction sent (not shown)
Purchasing organization receives packages, scans bar code, and compares data to invoices actual items received.
Payment approval transferred electronically.
Bank transfers funds from purchaser to supplier’s account using electronic fund transfer (EFT).

61. Electronic Data Interchange
The Importance of EDI
Need for timely, reliable data exchange in response to rapidly changing markets
Emergence of standards and guidelines
Spread of information into many organizational units
Greater reliability of information technology
Globalization of organizations

62. Supply Chain Management: The Business Network

63. Supply Chain Management
A cross-functional interenterprise system that uses IT to help support & manage the links between some of a company’s key business processes and those of its suppliers, customers, & business partners.
Goal is to create a fast, efficient, & low-cost network of business relationships.

64. Supply Chain Management (continued)

65. Supply Chain Management (continued)
Electronic data interchange
Exchanging business transaction documents over the Internet & other networks between supply chain trading partners

66. Supply Chain Management (continued)
The Role of SCM

67. Supply Chain Management (continued)
Benefits and Challenges
Can provide faster, more accurate order processing, reductions in inventory levels, quicker time to market, lower transaction and materials costs, & strategic relationships with suppliers

68. Supply Chain Management (continued)
Problem causes
Lack of proper demand planning knowledge, tools, and guidelines
Inaccurate or overoptimistic demand forecasts
Inaccurate production, inventory, and other business data
Lack of adequate collaboration

69. Trends Supply Chain Management (continued)