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Chap012 MIS
Chap012 MIS
Chap012 MIS
Chap012 MIS
Chap012 MIS
Chap012 MIS
Chap012 MIS
Chap012 MIS
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Chap012 MIS

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  • 1. 1Chapter 12 Enterprise and Global Management of Information TechnologyMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 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 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 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 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 Section I Managing Information TechnologyMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 Section II Managing Global ITMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 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 Global IT ManagementMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  • 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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. 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 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 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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