1Chapter 12               Enterprise and Global                  Management of              Information TechnologyMcGraw-H...
2                    Learning ObjectivesIdentify  ways that information technology has  affected the job of managers.Ide...
3                    Learning Objectives (continued)Identify each of the three components of  information technology mana...
4                    Learning Objectives (continued)Identify cultural, political, and geoeconomic  challenges that confro...
5                    Learning Objectives (continued)Identify   considerations that affect the choice  of IT applications,...
6                       Section I            Managing Information TechnologyMcGraw-Hill/Irwin       Copyright © 2004, The ...
7                    Business and ITAs    companies are transformed into global e-  businesses and players in global e-co...
8              The Impact of IT on ManagersA  major force for precipitating or enabling  organizational and managerial ch...
9          The Impact of IT on OrganizationsKey  dimensions of the networked enterprise   Organizational structure   Le...
10          Managing Information TechnologyThree   major components   Managing the joint development and    implementati...
11                    Managing Information Technology (continued)Three  major components (continued)   Managing the IT p...
12                    Managing the IS FunctionOrganizing   IT   Centralization   Decentralization   Latest trend, hybr...
13                    Managing the IS Function (continued)Managing    Application Development   Involves managing activi...
14                    Managing the IS Function (continued)Managing    IS Operations   Managing the use of hardware, soft...
15                    Managing the IS Function (continued)Managing   IS operations (continued)   Operational activities ...
16                    Managing the IS Function (continued)Managing   IS Operations (continued)   System Performance Moni...
17                    Managing the IS Function (continued)Human     Resource Management of IT   Recruit qualified person...
18                    Managing the IS Function (continued)The  CIO and Other IT Executives   Chief Information Officer (...
19                    Managing the IS Function (continued)Technology   Management   All IT must be managed as a technolo...
20                    Managing the IS Function (continued)Managing    User Services   Functions to support and manage en...
21                    Failures in IT ManagementIT   is not being used effectively by companies  that use IT primarily to ...
22                    Failures in IT Management (continued)Management      Involvement and Governance   Senior managemen...
23                     Failures in IT Management (continued)Helps        avoid IS performance problemsHelps        impro...
24                        Section II                    Managing Global ITMcGraw-Hill/Irwin        Copyright © 2004, The M...
25                The International DimensionA  vital part of managing an e-business  enterprise in the internetworked gl...
26                    Global IT ManagementMcGraw-Hill/Irwin         Copyright © 2004, The McGraw-Hill Companies, Inc. All ...
27    Cultural, Political, and Geoeconomic ChallengesCultural   challenges   Differences in languages   Cultural intere...
28                    Cultural, Political, and Geoeconomic Challenges (continued)Political challenges   Rules regulating...
29                    Cultural, Political, and Geoeconomic Challenges (continued)Geoeconomic      Challenges   The effec...
30                    Global e-Business StrategiesMoving   away from   Autonomous foreign subsidiaries   Autonomous for...
31                    Global e-Business Strategies (continued)Moving   toward   Reliance on information systems and    I...
32              Global e-Business ApplicationsIT  applications depend on a variety of global  business drivers, caused by...
33             Global IT PlatformsThe      technology infrastructureTechnically complexMajor political and cultural imp...
34                    Global IT Platforms (continued)The   Internet as a Global IT Platform   Companies can     Expand ...
35                    Global Data Access IssuesTransborder   data flows (TDF)   Data flow across international borders o...
36                    Global Data Access Issues (continued)       Many   countries view TDF as violating        their nat...
37                    Global Data Access Issues (continued)Internet Access Issues   High government access fees   Gover...
38                Global Systems DevelopmentChallenges   Conflicts  over local versus global system    requirements   D...
39                    Global Systems Development (continued)Challenges    (continued)   Trade-offs between developing on...
40                    Global Systems Development (continued)Systems   Development Strategies   Transforming an applicati...
41                    Discussion QuestionsWhat    has been the impact of e-business  technologies on the work relationshi...
42                    Discussion Questions (continued)How   are Internet technologies affecting the  structure and work r...
43                    Discussion Questions (continued)Should   the IS function in a business be  centralized or decentral...
44                    Discussion Questions (continued)How    might cultural, political, or geoeconomic  challenges affect...
45                    Discussion Questions (continued)How    might the Internet, intranets, and  extranets affect the bus...
46             Real World Case 1 – USG Corp.Evaluating         the ROI of IT InvestmentsWhy   do many companies fail to ...
47                    Real World Case 1 (continued)What    are some of the ROI measurement and  incentive practices of th...
48                    Real World Case 1 (continued)Should    business managers be responsible for  justifying the ROI of ...
49                    Real World Case 1 (continued)Who    should be involved in evaluating the ROI  of the IT investment ...
50      Real World Case 2 – Agilent Technologies & CitibankThe       Challenges of Consolidating Global ITDo  you agree ...
51                       Real World Case 2 (continued)Why   did Agilent’s global IT consolidation get  such a strong nega...
52                    Real World Case 2 (continued)What   are the business benefits of Citibank’s  global IT consolidatio...
53                     Real World Case 2 (continued)What   challenges might arise in managing the  global IT function at ...
54          Real World Case 3 – Cisco SystemsFailure            in Supply Chain ManagementWhat  caused Cisco’s $2.2 bill...
55                    Real World Case 3 (continued)How    is eHub supposed to avoid such losses in  the future?What   pr...
56                    Real World Case 3 (continued)What    can be done in the supply chain  management process of any com...
57   Real World Case 4 – Merrill Lynch & Co.The Business Case for Global IT  ConsolidationWhy   has there been a trend t...
58                    Real World Case 4 (continued)What  are the business benefits of Merrill  Lynch’s new global order p...
59                    Real World Case 4 (continued)Does   the merger of Merrill’s global services  division and its IT di...
60Real World Case 5 – Fireman’s Fund, Allmerica Financial, &                          FMCThe       Business Case for IT O...
61                    Real World Case 5 (continued)What   is FMC’s motivation for its IT  outsourcing?What    is the rol...
62                    Real World Case 5 (continued)What    are the benefits and potential limitations  of offshore and ne...
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Chap012 MIS

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Chap012 MIS

  1. 1. 1Chapter 12 Enterprise and Global Management of Information TechnologyMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. 2 Learning ObjectivesIdentify ways that information technology has affected the job of managers.Identify the seven major dimensions of a networked organization and explain how they can affect the success of a business.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  3. 3. 3 Learning Objectives (continued)Identify each of the three components of information technology management and use examples to show 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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  4. 4. 4 Learning Objectives (continued)Identify cultural, political, and geoeconomic challenges that confront managers in the management of global information technologies.Explain the effect on global e-business strategy of the trend toward a transnational business strategy by international business organizations.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  5. 5. 5 Learning Objectives (continued)Identify considerations that affect the choice of IT applications, IT platforms, data access policies, and systems development methods by a global business enterprise.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  6. 6. 6 Section I Managing Information TechnologyMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  7. 7. 7 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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  8. 8. 8 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 activitiesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  9. 9. 9 The Impact of IT on OrganizationsKey dimensions of the networked enterprise Organizational structure Leadership and governance People and culture Coherence Knowledge AlliancesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  10. 10. 10 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 ITMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  11. 11. 11 Managing Information Technology (continued)Three major components (continued) Managing the IT processes, professionals, & subunits with the IT organization & IS functionMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  12. 12. 12 Managing the IS FunctionOrganizing IT Centralization Decentralization Latest trend, hybridMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  13. 13. 13 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 maintenanceMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  14. 14. 14 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 organizationMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  15. 15. 15 Managing the IS Function (continued)Managing IS operations (continued) Operational activities requiring management Computer systems operations Network management Production control Production supportMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  16. 16. 16 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 controlMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  17. 17. 17 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 levelsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  18. 18. 18 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-commerceMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  19. 19. 19 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 deploymentMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  20. 20. 20 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 policiesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  21. 21. 21 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 properlyMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  22. 22. 22 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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  23. 23. 23 Failures in IT Management (continued)Helps avoid IS performance problemsHelps improve the strategic business value of ITMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  24. 24. 24 Section II Managing Global ITMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  25. 25. 25 The International DimensionA vital part of managing an e-business enterprise in the internetworked global economies and markets of today.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  26. 26. 26 Global IT ManagementMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  27. 27. 27 Cultural, Political, and Geoeconomic ChallengesCultural challenges Differences in languages Cultural interests Religions Customs Social attitudes Political philosophiesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  28. 28. 28 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 agreementsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  29. 29. 29 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 costsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  30. 30. 30 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 headquartersMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  31. 31. 31 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 platformsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  32. 32. 32 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 collaborationMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  33. 33. 33 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 issuesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  34. 34. 34 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 exchangeMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  35. 35. 35 Global Data Access IssuesTransborder data flows (TDF) Data flow across international borders over telecommunications networks of global information systemsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  36. 36. 36 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 legislationMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  37. 37. 37 Global Data Access Issues (continued)Internet Access Issues High government access fees Government monitored access Government filtered access No public access allowedMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  38. 38. 38 Global Systems DevelopmentChallenges Conflicts over local versus global system requirements Difficulties agreeing on common system features Disturbances caused by systems implementation and maintenance activitiesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  39. 39. 39 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 definitionsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  40. 40. 40 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 excellenceMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  41. 41. 41 Discussion QuestionsWhat has been the impact of e-business technologies on the work relationships, activities, and resources of managers?What can business unit managers do about performance problems in the use of information technology and the development and operation of information systems in their business units?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  42. 42. 42 Discussion Questions (continued)How are Internet technologies affecting the structure and work roles of modern organizations? Will middle management wither away?  Will companies consist primarily of self- directed project teams of knowledge workers?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  43. 43. 43 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  44. 44. 44 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  45. 45. 45 Discussion Questions (continued)How might the Internet, intranets, and extranets affect the business drivers or requirements responsible for a company’s use of global IT, as shown in the chapter?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  46. 46. 46 Real World Case 1 – USG Corp.Evaluating the ROI of IT InvestmentsWhy do many companies fail to evaluate the return on investment of their IT projects?Is this good business practice?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  47. 47. 47 Real World Case 1 (continued)What are some of the ROI measurement and incentive practices of the companies in this case that might help other companies evaluate the ROI of their IT investments?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  48. 48. 48 Real World Case 1 (continued)Should business managers be responsible for justifying the ROI of IT investments that will benefit their business units?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  49. 49. 49 Real World Case 1 (continued)Who should be involved in evaluating the ROI of the IT investment proposals of a company’s business units?Why?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  50. 50. 50 Real World Case 2 – Agilent Technologies & CitibankThe Challenges of Consolidating Global ITDo you agree with Agilent’s global IT consolidation goals and process?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  51. 51. 51 Real World Case 2 (continued)Why did Agilent’s global IT consolidation get such a strong negative response from many business and IT stakeholders?Could this reaction have been avoided?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  52. 52. 52 Real World Case 2 (continued)What are the business benefits of Citibank’s global IT consolidation project?How can a single global system still be customized for each country?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  53. 53. 53 Real World Case 2 (continued)What challenges might arise in managing the global IT function at Agilent Technologies from this point on?How would you meet such challenges?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  54. 54. 54 Real World Case 3 – Cisco SystemsFailure in Supply Chain ManagementWhat caused Cisco’s $2.2 billion loss in unneeded inventory?Could this situation have been avoided?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  55. 55. 55 Real World Case 3 (continued)How is eHub supposed to avoid such losses in the future?What problems might arise with this new system?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  56. 56. 56 Real World Case 3 (continued)What can be done in the supply chain management process of any company to avoid situations like Cisco’s?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  57. 57. 57 Real World Case 4 – Merrill Lynch & Co.The Business Case for Global IT ConsolidationWhy has there been a trend toward centralizing systems among financial services firms?What are the potential benefits and limitations of this trend?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  58. 58. 58 Real World Case 4 (continued)What are the business benefits of Merrill Lynch’s new global order processing system?What implementation challenges are involved?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  59. 59. 59 Real World Case 4 (continued)Does the merger of Merrill’s global services division and its IT division make good business sense?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  60. 60. 60Real World Case 5 – Fireman’s Fund, Allmerica Financial, & FMCThe Business Case for IT OutsourcingWhat is the business value to Fireman’s Fund and Allmerica of outsourcing their computer operations?What are some potential limitations of such outsourcing arrangements?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  61. 61. 61 Real World Case 5 (continued)What is FMC’s motivation for its IT outsourcing?What is the role of an IT organization at companies like those in this case, if much of their IT operations are outsourced?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  62. 62. 62 Real World Case 5 (continued)What are the benefits and potential limitations of offshore and near-shore IT outsourcing arrangements?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.

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