1. Enterprise and Global Management of Information Technology
Notes go here!

2. Learning Objectives
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 IS planning and management.
Identify several cultural, political, and geoeconomic challenges that confront managers in the management of global information technologies.
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 access choice of IT applications, IT platforms, data access policies, and systems development methods by a global business enterprise.

3. Managing Information Technology
Section I
Managing Information Technology
Business and IT
Development of Global Business
Need for Business Managers
Managing IS and Technologies
Real World Case 1- Chicago Board of Trade: From Failure to Success in Managing Information Technology
Section I introduces the managing of Information Technology with emphasis on the development of global applications.
Click the arrow to go to real world case 1-Chicago Board of Trade: From Failure to Success in Managing Information Technology.
Click to go to
Case 1

4. Managing Information Technology
The Major Components of IT Management
Information
Technology
Management
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the animated graphic to describe the major components of IT management and identify the personnel/officer titles applied to each.
Managing
Business
and IT
Strategy
Managing
Application
Development
and
Technology
Managing
The IT
Organization
and
Infrastructure
CEO & CIO
CIO & CTO
CIO & IT Managers

5. Managing Information Technology
Comparing IT Management Approaches
Use the text graphic to compare IT management approaches.

6. Managing Information Technology
Avnet Marshall: Managing IT
IT Management Differs from Conventional IT Management
Hires IT Professionals Who Can Integrate IT With Business
Organized Workgroups Around e-Business Initiatives Focused on e-Commerce Services
The Avnet Marshall mini-case provides a discussion basis for managing IT.
Differences are cites between managing IT from conventional techniques.
Avnet Marshall hires IT professionals who can integrate with business applications.
Work groups were organized around e-Business initiatives with a focus centered on the delivery of e-Commerce services.

7. Business/IT Planning CEO & CIO Co-Adaptation Process
Strategy Development
Resource Management
Key Insights
Key Objectives
Priorities
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Introduce the concept of business/IT planning, strategy development, and resource management.
Use the animated graphic to demonstrate the interrelationships between the components.
Customer
and Business
Value
Visioning
Business
Strategies
and Models
Business/IT
Strategies and
Architecture
Business
Application
Development &
Deployment
More Questions
Feedback
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8. Information Technology Architecture
Technology Platform
Data Resources
Applications Architecture
IT Organization
Introduce the Information Technology architecture.
Address issues of platform selection, data resources, as well as how IT is organized.

9. Information Technology Architecture
Avnet Marshall: e-Business Planning
Conventional IT Planning
Avnet Marshall’s Business/IT Planning
The Avnet Marshall mini-case addresses e-Business planning in the text graphic displayed.
Compare conventional IT planning with the Avnet Marshall's approach.

10. Managing the IS Function
Organizing IT
Centralization
Downsizing
Decentralization
The management of the IS function is discussed citing issues of centralizing, downsizing and decentralization as they have evolved in recent history.

11. Managing the IS Function
Electronic Commerce and Supply Chain Management Development and Support Group
Group Alliances Development and support Group
CEO
CIO
Computer/
Communication
Operations Management Group
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the animated graphic to examine the various functions to be managed by the CEO/CIO combination.
Marketing and Visibility Initiatives Planning Group
Enterprise Integration Development and Support Group

12. Managing the IS Function
Fireman’s Fund and FMC Corp: Outsourcing IT
10 Year $380 Million Outsourcing Agreement With CGI - Montreal
IT Service Support Functions for 80 U.S. Locations
300 Employees Moved to CGI
Resulted in Leaner IT Entity with 21% Saving in IT Infrastructure Costs
FMC Also Outsources and Realizes Substantial Savings
The Fireman's Fund and FMC Corp. mini-case addresses the outsourcing of IT.
Their example outsourced IT service support for their 80 U.S. locations to CGI in Montreal for 10 years at a cost of $380 million dollars.
Their 300 employees became CGI personnel.
The leaner IT entity resulted in a 21% saving in IT infrastructure cost.
Both firms clearly realized substantial savings.

13. Managing the IS Function
Managing Application Development
IS Operations Management
System Performance Monitors
Chargeback Systems
Process Control
Human Resources Management of IT
The CIO and Other IT Executives
The points of this screen identify issues in managing the IS function.
Each represents unique problems to be resolved by the IT management as well as other executives.

14. Managing the IS Function
Example Enterprise Management Portal
The screen shot is an example of an enterprise management portal used to direct users to specific applications quickly.

15. Managing the IS Function
Top IT Jobs: Requirements and Compensation
Chief Technology Officer
Base Salary: $100,000-$250,000
Bonus: Up to 30% of Salary
e-Commerce Architect
Base Salary: $120,000-$200,000
Bonus: Up to 20% of Salary
Technical Team Leader
Base Salary: $100,000-$200,000
Practice Manager
Base Salary: $80,000-$200,000
The data presented in this screen is reporting the typical top IT jobs and the expected compensation in today's market.
Variation in titles and figures are geographically and industry wise variable.
Relate to your community and environment.

16. Managing the IS Function
Technology Management
Chief Technology Officer (CTO)
Managing User Services
Information Center
Additional issues in managing the IS function are explored particularly as it addresses managing user services and use of information centers.

17. Failures in IT Management
PeopleFirst Finance: Failure of a CRM Project
Installing CRM Systems Can be Perilous
Multiple Installation Tries Often Needed
PeopleFirst Example Experienced Difficulties
Getting Information Was Like Playing “Whack-a-Mole”
Failures in IT management are addressed.
The PeopleFirst Finance mini-case describes the failure of a CRM project.
Customer management software installation was described as perilous.
Many difficulties that are located have to be addressed at financial and downtime cost.
Addressing the problems was described as being like playing "Whack-a-Mole."

18. Failures in IT Management
Management Involvement and Governance
Use the text graphic to explain management involvement in IT decisions and examines the consequences of abdicating their responsibility.

19. Managing Global IT International Dimensions of Modern Business
Section II
Managing Global IT
International Dimensions of Modern Business
Benefits and Challenges of Offshore Systems Development
Real World Case 2-
Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
Section II Begins the discussion of the international dimensions of a modern business and describes some of the benefits of offshore system development.
Click the arrow to go to real world case 2-Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development.
Click to go to
Case 2

20. Application Portfolios
Managing Global IT
The Major Dimensions of Global e-Business
Global IT
Management
Cultural, Political,
and Geoeconomic
Challenges
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the animated graphic to examine the major dimensions of global e-business.
Describe each of the components and how they relate to one another.
Business/IT
Strategies
Business
Application Portfolios
Internet-Based
Technology Platforms
Data
Resource
Management
Systems
Development

21. Managing Global IT Cendant Corp.: Global IT Management
Typical Kind of Global Challenge
Need to Understand the Workings of Each Local IT Group
Focus on Leveraging Their Cultures and Talents
Peers Often Put Together to Experience Synergy
The Cendant Corp. mini-case describes their experience in Global IT management.
The case emphasized the need to understand the uniqueness and workings of each local IT group.
The focus for finding solutions was on leveraging their individual cultures and talents.
Peers from differing groups were continually thrust together to experience synergy and shake up the environment.

22. Managing Global IT Political Challenges Geoeconomic Challenges
Cultural Challenges
Global Competition for IT Talent
Global Business/IT Strategies
Global Business/IT Applications
The points of this slide identify political, economic, cultural, and other challenges that must be addressed when developing global IT.
The competition for IT talent requires specific strategies and applications to meet the expected need.

23. Managing Global IT Alternative Global Strategies
Use the text graphic to compare alternative global e-business strategies.
For each strategy relate the IT characteristics and compare and contrast the result.

24. Managing Global IT Alternative Implementations
Use the text graphic to compare alternative implementations of global IT.

25. Managing Global IT Global Business Drivers
Use the text graphic to define and describe business drivers for global IT.

26. Managing Global IT TRW Inc.: Global Business/IT Challenges
$17 Billion Manufacturing and Services Company
Problems Are Addressed by Backup Teams Worldwide
Speed is of the Essence – Local Support Means Faster Access
TRW Developed Centers of Excellence to Address Problems
Pooling Resources to Solve Global IT Issues is an Advantage
The TRW Inc. mini-case describes the challenges that they have addressed in the development of their global IT effort.
They developed backup teams of expertise worldwide.
Since speed is of the essence, local support means faster access.
They developed centers of excellence to address problems.

27. Managing Global IT Global IT Platforms
Use the text graphic to describe the issues in the selection of global IT platforms.

28. Managing Global IT Citibank: Consolidating Global IT Platforms
$100 Million Global IT Firm
Rolling Out Global Software System with a Single Interface through 2004
Single System Customized for Each Country’s Needs
Flexcube Software Automates Much Balancing Activities
The Citibank mini-case describes their multi-year effort to roll out a global software system using a single interface.
The system is the same but is customized for each country's needs, currency, language, etc.
The new system automates much of the banking activity and offers much promise from the standardization-roll out should be complete in 2004.

29. Managing Global IT The Internet as a Global IT Platform
Use the text graphic to identify the key questions to be answered in the development of global Websites.

30. Managing Global IT Transborder Data Flows (TDF)
Global Data Access Issues
Transborder Data Flows (TDF)
Introduce the concept of Transborder Data Flows (TDF).
Use the text graphic to compare data access and Web usage throughout world regions.

31. Managing Global IT Consumer Privacy Agreements
Use the text graphic to describe the elements of the U.S.-EU data privacy requirements agreed upon between the affected nations.

32. Managing Global IT Council of Europe: Global Cybercrime Treaty
Fear That Cybercrime Treaty Will Affect Business Liability and Security
Anxiety Over Duplication of Other Agreements
Primary Objective Was to Break Bottlenecks in Cyberinvestigations
Differences of Opinion are Real
The Council of Europe mini-case describes a Global Cybercrime Treaty that many fear will affect business liability and security.
The primary objective was to break bottlenecks in cyber investigations but there is much anxiety over duplication in other agreements.
The differences of opinion are very real.

33. Managing Global IT Internet Access Issues
Use the text graphic to discuss global governmental restrictions on Internet access.
Compare and contrast access issues with freedom issues.

34. Managing Global IT Global Systems Development
Use the text graphic to conclude the discussion on global systems development and how the respective systems accommodate change.

35. Managing Global IT Systems Development Strategies
DHL Worldwide: Global System Development
Development Centers Located Worldwide to Service 24 Hour Workday
Working With Outsourcing Sites at Lower Costs
Transparency of International Boundaries a Real Fact for DHL After 15 Years of Work
The DHL Worldwide mini-case describes their experience in global system development.
This worldwide courier service experiences a 24 hour workday.
They have strategically placed development centers around the world so that they are always open.
Being a worldwide firm, outsourcing work to sites at lower cost has been their norm for some 15 years.
International boundaries have become truly transparent to this worldwide firm after this amount of time.

36. Summary Failures in IT Management Managing Information Technology
Managing Global IT
Global Business and IT Strategies and Issues

37. KEY TERMS Application Development Management
Centralization or Decentralization of IT
Chargeback Systems
Chief Information Officer
Chief Technology Officer
Cultural, Political, and Geoeconomic Challenges
Data Center
Downsizing
Failures in IT management
Global Business Drivers
Global information Technology Management
Business/IT Applications
Business/IT Strategies
Data Access Issues
IT Platforms
Systems Development Issues
Human Resource Management of IT
Internet Access Issues
Internet as a Global IT Platform
Management Involvement in IT
Managing Information Technologies
Managing the IS Function
Operations Management
Outsourcing IS Operations
Systems Performance Monitor
Technology Management
Transborder Data Flows
Transnational Strategy
User Services

38. Optional Case Studies Real World Case 1 Real World Case 2
Chicago Board of Trade: From Failure to Success in Managing Information Technology
Click to go to
Case 1
Real World Case 2
Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
Click to go to
Case 2
Real World Case 3
Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software Development
Click to go to
Case 3
Real World Case 4
Avon Products and Guardian Life Insurance: Successful Management of IT Projects
Click to go to
Case 4

39. Questinons and Discussion...

40. Case 1
Chicago Board of Trade: From Failure to Success in Managing Information Technology
1- What were several major reasons the IT organization had failed at the Chicago Board of Trade? Explain the impact of each on CBOT.
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Chapter 12
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Cases Page

41. Infrastructure-Ancient, Unreliable and Undocumented
Case 1
Chicago Board of Trade: From Failure to Success in Managing Information Technology
Discussion Points Would Include:
Lack of Leadership
Infrastructure-Ancient, Unreliable and Undocumented
Most Key Processes Routed to Old, Midrange Tandem Computers
Environment Very Complex
New Process Took More Than 90 Steps
Discussion points would include:
Lack of leadership.
Infrastructure was ancient, unreliable and undocumented.
Nearly every key process was routed through a group of old, midrange Tandem computers in an environment so complex that developing a new process took more than 90 steps.
CONTINUATION…

42. Discussion Points Would Include:
Case 1
Chicago Board of Trade: From Failure to Success in Managing Information Technology
Discussion Points Would Include:
Project/Budget Controls Were Lacking
Quality Control Was Substandard
IT Full of Silos and Fiefdoms, No Economies of Scale
IT Hadn’t Completed a Single Project in Four Years
Technology Doesn't Provide Return for Investing Money In It
Discussion points would include:
Lack of leadership.
Infrastructure was ancient, unreliable and undocumented.
Nearly every key process was routed through a group of old, midrange Tandem computers in an environment so complex that developing a new process took more than 90 steps.
CONTINUED…
Project and budget controls were lacking.
Quality control was substandard.
IT was full of silos and fiefdoms, so there were no economies of scale.
IT hadn’t completed a single project in four years.
Technology did not have to provide a return for investing the money in it.

43. Case 1
Chicago Board of Trade: From Failure to Success in Managing Information Technology
2- What were several key management changes and initiatives that Bill Farrow implemented to make IT successful at CBOT? Explain the impact of each on CBOT.

44. Discussion Points Would Include:
Case 1
Chicago Board of Trade: From Failure to Success in Managing Information Technology
Discussion Points Would Include:
New Senior Vice President of Technology Solutions
Inventory of IT Taken by
Documenting Systems
Technical Architecture
Vendor Relationships, Service-Level Agreements, and Evaluated Security Systems
Built New Relationships, Used Brainstorming
Discussion points would include:
New senior vice president of technology solutions..
Inventory of IT was taken by documenting systems and technical architecture.
Nailed down vendor relationships and service-level agreements, and evaluated security systems..
Built new relationships with skeptical business managers by assigning IT managers to specific business sections, and establishing brainstorming sessions on a regular basis regarding how technology could support business goals.
CONTINUATION…

45. Discussion Points Would Include:
Case 1
Chicago Board of Trade: From Failure to Success in Managing Information Technology
Discussion Points Would Include:
Replaced Ancient Tandem Systems
With Sun Unix Servers
And Oracle Databases
Improved Quality Assurance
Established a Project Management Office
Brought ROI to Project Agendas
Replaced IT Personnel with Professionals
Discussion points would include:
New senior vice president of technology solutions..
Inventory of IT was taken by documenting systems and technical architecture.
Nailed down vendor relationships and service-level agreements, and evaluated security systems..
Built new relationships with skeptical business managers by assigning IT managers to specific business sections, and establishing brainstorming sessions on a regular basis regarding how technology could support business goals.
CONTINUED…
Replaced ancient Tandem systems with Sun Unix servers and Oracle databases.
Improved quality assurance by putting IT troubleshooters on the trading floor every day..
Established a project management office to centralize the project portfolio and the IT skills pool.
Brought ROI to project agendas.
Replaced IT personnel with professionals having the skills needed at the CBOT.

46. Case 1
Chicago Board of Trade: From Failure to Success in Managing Information Technology
3- Does the experience of CBOT prove that “IT is a business function that needs to be managed like any other business function?” Why or why not?
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Chapter 12
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Cases Page

47. Recognition of Business Skills from This Course/Work Experience
Case 1
Chicago Board of Trade: From Failure to Success in Managing Information Technology
Discussion Points Would Include:
Recognition of Business Skills from This Course/Work Experience
What Business Skills would Fit this Organization in This Industry?
Discussion points by the student should include:
Their recognition of business skills from this course and text plus what they have gained from other courses and/or work experience.
Their discussion about what business skills would fit this organization in this industry.
CONTINUATION…
Return to
Chapter 12
Return to
Cases Page

48. Recognition of Business Skills from This Course/Work Experience
Case 1
Chicago Board of Trade: From Failure to Success in Managing Information Technology
Discussion Points Would Include:
Recognition of Business Skills from This Course/Work Experience
What Business Skills would Fit this Organization in This Industry?
Develop Pros/Cons about Applying Business Skills to IT
Discussion points by the student should include:
Their recognition of business skills from this course and text plus what they have gained from other courses and/or work experience.
Their discussion about what business skills would fit this organization in this industry.
CONTINUED…
Encourage the students to develop pros and cons about applying business skills to IT.
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Chapter 12
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Cases Page

49. Case 2
Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
1- What are the business benefits and limitations of sending software development offshore? Use the companies in this case as examples.
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Chapter 12
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Cases Page

50. GXS Estimates Savings of $16 million Over 3 years
Case 2
Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
Discussion Points Would Include:
GXS Estimates Savings of $16 million Over 3 years
Potential to Lose Control Over
Foreign Technology Workers
Quality of IT Projects Thousands of Miles Away
Using “Offshore-Insourcing” Model
Allstate Using Centers Overseas
Discussion points would include:
Cost pressures. GXS estimates a savings of $16 million over a three year period.
Potential for losing control over foreign technology workers.
Potential for losing control over the quality of IT projects based thousands of miles away.
Using the “offshore-insourcing” model in which foreign IT workers aren’t contractors but employees of the U.S.-based companies.
Allstate started using centers overseas due to shortages caused by Y2K and the then-thriving dot-com economy to manage their workforce needs, retained valued employees and reduce costs.

51. Case 2
Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
2- What is the business value and limitations of the insourcing model of offshore software development? Use GSX and Allstate as examples.

52. Foreign Workers Receive Same Training
Case 2
Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
Discussion Points Would Include:
Foreign Workers Receive Same Training
Use the Same Software Development Tools
Adhere to the Same Business Processes
Employee Cost Savings
Retain Critical Business Knowledge/Intellectual Capital
Discussion points would include:
Foreign workers receive the same training.
Use the same software development tools.
Adhere to the same business processes.
Employee cost savings.
Retaining critical business knowledge and intellectual capital.
CONTINUATION…

53. Inform U.S.-Based Workers of Critical Plans for IT Projects
Case 2
Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
Discussion Points Would Include:
Inform U.S.-Based Workers of Critical Plans for IT Projects
Economics of Local Environment are
Sustainable, and That There’s Talent
Quality Workforce and Those Things Won't Change
Discussion points would include:
Foreign workers receive the same training.
Use the same software development tools.
Adhere to the same business processes.
Employee cost savings.
Retaining critical business knowledge and intellectual capital.
CONTINUED…
Informing U.S.-based workers of plans for distributing various IT projects is critical.
Making sure that the economics of the local environment are sustainable, that there’s talent, that there’s a quality workforce and that those things aren’t going to change.

54. Case 2
Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
3- Should U.S companies send their software development and other IT functions offshore? Why or why not?
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Chapter 12
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Cases Page

55. Stability of Foreign Economy
Case 2
Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
Pros & Cons For Going Offshore:
Cost Savings
Quality Assurance
Stability of Foreign Economy
Retain Critical Business Knowledge and Intellectual Capital
Students should be able to develop a list of pros and cons of software development and other IT functions being sent offshore, and would include:
Cost savings
Quality assurance
Stability of the foreign economy
Retaining critical business knowledge and intellectual capital.
CONTINUATION…
Return to
Chapter 12
Return to
Cases Page

56. Stability of Foreign Economy
Case 2
Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
Pros & Cons For Going Offshore:
Cost Savings
Quality Assurance
Stability of Foreign Economy
Retain Critical Business Knowledge and Intellectual Capital
Employee Relations
Students should be able to develop a list of pros and cons of software development and other IT functions being sent offshore, and would include:
Cost savings
Quality assurance
Stability of the foreign economy
Retaining critical business knowledge and intellectual capital.
CONTINUED…
Employee relations.
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Chapter 12
Return to
Cases Page

57. Case 3
Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software Development
1- How is the open source model affecting the development of application software for business?
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Cases Page

58. Discussion Points Would Include:
Case 3
Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software Development
Discussion Points Would Include:
Permits Radically Different Way to Build Software
Foreshadows Future of Distributed Global Collaborative Model of Software Development
Bio-ERA and Burlington Northern Santa Fe Avoided Tasks of Software Development
Companies Concentrate Their Core Business by
Forming Just-in-Time Teams
Used Outsourced Talent for Software Development
Discussion points would include:
Permits the use of a radically different way to build software.
Foreshadows the future of a distributed global collaborative model of software development.
Results in companies, such as Bio-ERA and Burlington Northern Santa Fe, being able to avoid the complex tasks of software development.
Companies can concentrate of running their core business by forming just-in-time teams using outsourced talent for software development.

59. Case 3
Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software Development
2- What are the business benefits of the global or collaborative approach to software development? Use the companies in this case as examples.

60. Companies Outsource Software Development and Run their Core Business
Case 3
Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software Development
Discussion Points Would Include:
Companies Outsource Software Development and Run their Core Business
Company uses Global-Collaborative Approach for Software Development “Fast and Cheap”
Discussion points would include:
Companies can avoid the complex tasks of software development by creating just-in-time teams using outsourced talent and then spend their time on running their core business.
The ability for a company using the global-collaborative approach to get software development done “fast and cheap.”

61. Case 3
Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software Development
3- What are several potential challenges or limitations that might arise when using a global collaborative approach to software development? How can companies address such challenges?
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62. Discussion Points Would Include:
Case 3
Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software Development
Discussion Points Would Include:
IT Manager Must Understand Software Development
IT Manager Must have Experience Managing a Distributed Team and a Platform
Companies Must Ensure U.S.-based Talent for Any Ad-hoc Jobs
Discussion points would include:
Companies must have an IT manager who understands software development and has experience managing a distributed team and a platform.
Companies must ensure there is sufficient U.S.-based talent for any ad-hoc jobs that may arise.
CONTINUATION…
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Cases Page

63. Discussion Points Would Include:
Case 3
Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software Development
Discussion Points Would Include:
IT Manager Must Understand Software Development
IT Manager Must have Experience Managing a Distributed Team and a Platform
Companies Must Ensure U.S.-based Talent for Any Ad-hoc Jobs
Company Must Create “Executive Dashboard” to Monitor Software Development
Discussion points would include:
Companies must have an IT manager who understands software development and has experience managing a distributed team and a platform.
Companies must ensure there is sufficient U.S.-based talent for any ad-hoc jobs that may arise.
CONTINUED…
The ability of the company to create an “executive dashboard” for monitoring the software development activities.
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Cases Page

64. Case 4
Avon Products and Guardian Life Insurance: Successful Management of IT Projects
1- What are several possible solutions to the failures in IT project management at many companies described at the start of this case? Defend your proposals.
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Cases Page

65. Discussion Points Would Include:
Case 4
Avon Products and Guardian Life Insurance: Successful Management of IT Projects
Discussion Points Would Include:
Good Business-Case Methodology Leads to Good Project Management
Use All Analytical/Financial ROI Tools Against Each IT Projects
Use of “Governance” (Hard-Dollar/Metrics-Oriented Processes) for Incorporating “Soft” Costs and Benefits into Decisions
Discussion points by the students may include:
Good business-case methodology leads to good project management.
Use of all of the analytical rigor and financial ROI tools against each of the IT projects.
Use of “governance” or hard-dollar and metrics-oriented processes for incorporating “soft” costs and benefits into decisions.

66. Case 4
Avon Products and Guardian Life Insurance: Successful Management of IT Projects
2- What are several key ways that Avon and Guardian assure that their IT projects are completed successfully and support the goals of the business?

67. Avon Uses Analytical/Financial ROI Tools Against IT Projects
Case 4
Avon Products and Guardian Life Insurance: Successful Management of IT Projects
Discussion Points Would Include:
Avon Uses Analytical/Financial ROI Tools Against IT Projects
Avon Uses an Investment-Tracking Database
Guardian Uses “Governance”
Guardian Incorporates “Soft” Costs and Benefits
Guardian Monitors IT Projects
Discussion points would include:
Avon applies all of the analytical rigor and financial ROI tools against each of their IT projects as well as other business projects including payback, NPV, IRR calculations, and risk analyses.
Avon uses an investment-tracking database for every IT project to monitor projects costs on a rolling basis to assist management in determining whether a project should be accelerated, delayed or canceled and to assist the organization in forecasting requirements.
Guardian places emphasis on “governance” by applying NPV and IRR calculations to all IT projects with a five-year cash flow.
Guardian uses a process for incorporating “soft” costs and benefits into their calculations.
Guardian monitors IT projects to permit timely modifications.

68. Case 4
Avon Products and Guardian Life Insurance: Successful Management of IT Projects
3- If you were the manager of a business unit at Avon or Guardian, what are several other things you would like to see their IT group do to assure the success of an IT project for your business unit? Defend your suggestions.
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69. Case 4
Avon Products and Guardian Life Insurance: Successful Management of IT Projects
Discussion Points Would Include:
Include Concepts Drawn From the Text and From Other Business Courses. Draw upon Other Classes and Perhaps From Work Experiences to Integrate Learning Experiences Through This Case.
The discussion by the student could include many concepts drawn from the text and from other business courses. Allowing the students to draw upon other classes and perhaps from work experiences will encourage them to integrate their learning experiences through this case.
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