Chapter 11

Enterprise and Global Management of Information Technology

Management role and IT

IT is enabling more work to be accomplished with less management intervention

IT allowing for much more control and access to vital information

Biggest challenge to managers is Information Resource Management

IT and the organization

Most organizations are currently performing at low levels of information resource utilization

IT success is a function of planning and management support and involvement

Usually accomplished by IT steering committees

Managing Information TechnologyManaging Information Technology

ManagingInformationTechnology

ManagingInformationTechnology

Supplier Customer

Superfast Producers

Cross-FunctionalIntegration

Business Pressures Technology Base

Levels of Management Involvement in ISLevels of Management Involvement in IS Executive

InformationTechnologyCommittee

ExecutiveInformationTechnologyCommittee

End UserManagement

of InformationTechnology

End UserManagement

of InformationTechnology

ManagementSteering

Committee

ManagementSteering

Committee

Dimensions of organization

Multiple factors affect any organizationOrganizations must stay within cultural

limits unless major changes are plannedMany faces to this problemEffectively solved with participative

management style

Organizations as Sociotechnical SystemsOrganizations as Sociotechnical Systems

StructureStructure

PeoplePeople

TasksTasks

TechnologyTechnologyCultureCulture

Case study:Buy software or upgrade network

Scenario is Small company (revenue under 500 million) Currently using satellite for network

transmissions and a distributed data model Organization needs to replace database

(currently distributed to 350 locations) Limited to current hardware (no upgrades)

Option 1

Centralized model DBMS (Oracle Enterprise) $500,000 Network infrastructure $700,000 Total $1,200,000

Option 2

Distributed model DBMS licenses (12,500*350) $420,000 Annual maintenance to old sat $400,000 Total $820,000

Solution

Seems simple $820,000 vs $1,200,000Not so simple………..

Executive level instruction to add email capacity to stores requires upgrade to network

No longer becomes part of the topology issue Take the $700,000 out of the budget Net savings of $320,000 for solution A!

The Information Resource ManagementConcept

The Information Resource ManagementConcept

DistributedManagementDistributed

ManagementTechnologyManagementTechnologyManagement

ResourceManagement

ResourceManagement

FunctionalManagementFunctional

ManagementStrategic

ManagementStrategic

Management

InformationResource

Management

InformationResource

Management

Strategic Information Systems PlanningStrategic Information Systems Planning

BusinessVision

BusinessVision

StrategicOpportun-

ities

StrategicOpportun-

ities

GapAssess-

ment

GapAssess-

ment

Long-RangePositionNeeds

Long-RangePositionNeeds

Business/ITStrategies

Business/ITStrategies

InvestmentPlans

InvestmentPlans

TechnologyImplementation

Plans

TechnologyImplementation

Plans

OrganizationTransformation

Plans

OrganizationTransformation

Plans

TechnologyPlatform

TechnologyPlatform

DataResources

DataResources

ApplicationPortfolio

ApplicationPortfolio

ITOrgan-ization

ITOrgan-ization

BestPractices

BestPractices

Re-engineer

Re-engineer

SpecificNeeds

SpecificNeeds

ExistingCapabil-

ities

ExistingCapabil-

ities

CustomerNeeds

CustomerNeeds

PartnersNeeds

PartnersNeeds

DevelopStrategiesDevelop

Strategies

Design ITArch-

itecture

Design ITArch-

itecture

DevelopTactics

DevelopTactics

CreateVisionCreateVision

DetermineDrivers

DetermineDrivers AssessAssess

IT Architecture

The Major Dimensions of Global

IT Management

The Major Dimensions of Global

IT Management

SystemsDevelopment

SystemsDevelopment

DataManagement

DataManagement

TechnologyPlatforms

TechnologyPlatforms

ApplicationPortfolios

ApplicationPortfolios

Business/ITStrategies

Business/ITStrategies

Global ITManagement

Global ITManagement

Cultural, Political,and Geoeconomic

Challenges

Cultural, Political,and Geoeconomic

Challenges

Political ChallengesPolitical Challenges

Reciprocal trade agreements that require a businessto spend part of the revenue they earn in a countryin that nation’s economy

Local content laws that specify the portion of the valueof a product that must be added in that country if it is to be sold there

Severely restrict, tax, or prohibit imports of hardware and software

Rules regulating or prohibiting transfer of data across national boundaries (transborder data flows)

Geoeconomic ChallengesGeoeconomic Challenges

Problems (opportunities) in the great differences in the cost of living and labor costs in various countries.

Problems finding the job skills required in some countries, or enticing specialists from other countriesto live and work there.

Difficult to get good quality telephone andtelecommunications service in many countries

Difficult to communicate in real-time across the world’s24 time zones

Sheer physical distance involved in international business activity is still a problem

Cultural ChallengesCultural Challenges

Differences in work styles and business relationships

Differences in languages, cultural interests, religions, customs, social attitudes, and political philosophies