CH12-all (1)

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Enterprise & Global Mgt ofInformation Technology

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Learning Objectives

Explain the effect on global e-business

strategyand the trends toward a

transnationalbusiness strategy by

international business organizations.

Identify cultural, political, andgeoeconomicchallenges that confront

managers in the management of

global information technologies.

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Section I

Managing Information

Technology

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Managing Information Technology

Three major components

1. Managing the joint developmentand

implementation of e-business and IT

strategies

2. Managing the development of e-

business applications and the research& implementation of new IT

3. Managing the IT processes,

professionals, & subunits with the IT

organization & IS function

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Managing IT

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Managing the IS

Function

Organizing IT

Centralization

Decentralization

Latest trend, hybrid

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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

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(continued)

Managing IS Operations

Managing the use of hardware, software,

network, and personnel resources in data

centers/computercenters within an

organization

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(continued)

Managing IS operations (continued)

Operational activities requiring

management

Computer systems operations

Network management

Production control

Production support

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(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

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(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 andwage levels

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Management Roles

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(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

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(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

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(continued)

Managing UserServices

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

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Failures in IT Management

IT is not being used effectivelyeffectivelyby companies that

use IT primarily to computerize traditional business

processes, instead of using it for innovative e-

business processes

IT is not being used efficientlyefficientlyby IS that provide

poor response times and frequent down times or

when application development projects are not

managed properly

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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.

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Section II

Managing Global IT

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The International Dimension

A vital part of managing an e-business

enterprise in the internetworked global

economies and markets of today.

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Global IT Management

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Cultural, Political, and

Geoeconomic Challenges

Cultural challenges

Differences in languages

Cultural interests

Religions

Customs

Social attitudes

Political philosophies

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Cultural, Political, 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

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Cultural, Political, Geoeconomic


Geoeconomic Challenges

The effects of geography on the

economic realities of internationalbusiness activities

Distance

Real-time communication

Lack of good-quality telephone and

telecommunications service

Lack of job skills

Cost of living and labor costs

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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 worldwideoperations by headquarters

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Global e-Business Strategies

(continued)

Moving toward

Reliance on information systems and

Internet technologies to help integrateglobal business activities

An integrated, cooperative worldwide

hardware, software, and Internet-based

architecture for IT platforms

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Global e-Business Applications

IT applications depend on a variety of

global business drivers, caused by the

nature of the industry and itscompetitive or environmental forces

Global customers

Global products Global operations

Global resources

Global collaboration

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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

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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

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Global IT Platforms

(continued)

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Global Data Access Issues

Transborder data flows (TDF)

Data flow across international borders

over telecommunications networks ofglobal information systems Many countries view TDF as violating their

national sovereignty

Others, as violating their laws to protect thelocal IT industry or to protect local jobs

May view TDF as a violation of their privacylegislation

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Global Data Access Issues

(continued)

Internet Access Issues

High government access fees Kazakhstan, Kyrgyzstan

Government monitored access China, Iran, Saudi Arabia, Azerbaijan, Uzbekistan

Government filtered access Belarus, Cuba, Iraq, Tunisia, Sierra Leone,

Tajikistan, Turkmenistan, Vietnam

No public access allowed Burma, Libya, North Korea, Sudan, Syria

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Global Systems Development

Challenges

Conflicts overlocal versus global system

requirements

Difficulties agreeing on common system

features

Disturbances caused by systemsimplementation and maintenance

activities

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(continued)


Trade-offs between developing one

system that can run on multiple computerand operating system platforms, orletting

each local site customize the software for

its own platform

Global standardization ofdata definitions

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(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

Documents

CH12-all (1)