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.• 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.
Global 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.• Benefit : more global business activities can be integrated between headquarters and its subsidiaries.
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 activities
The Impact of IT on Organizations• Key dimensions of the networked enterprise – Organizational structure – Leadership and governance – People and culture – Coherence – Knowledge – Alliances
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 IT – Managing the IT processes, professionals, & subunits with the IT organization & IS function
Managing the IS Function• Organizing IT – Centralization – Decentralization – Latest trend, hybrid• Managing Application Development – Involves managing activities such as • systems analysis and design • prototyping • applications programming • project management • quality assurance • systems maintenance
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 organization – Operational activities requiring management • Computer systems operations • Network management • Production control • Production support
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 control
Cultural, Political, and Geoeconomic Challenges• Cultural challenges – Differences in languages – Cultural interests – Religions – Customs – Social attitudes – Political philosophies
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 agreements
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 costs
8 International Data Communication Issues• Improving the operational efficiency of networks• Dealing with different network• Controlling data communication security• Dealing with transborder data flow restrictions• Managing international telecommunication regulations• Handling international politics• Managing network infrastructure across countries• Managing international integration of technologies• Reconciling national differences• Dealing with international tariff structures
Global Data Access Issues• Transborder data flows (TDF) – Data flow across international borders over telecommunications networks of global information systems – Many countries view TDF as violating their national sovereignty because TDFs avoid customs duties and regulations for the import or export of goods and services. – Others view TDF as violating their laws to protect the local IT industry from competition, or their labor regulations for protecting local jobs. Also politically sensitive is the movement of personal data out of a country..
Global Data Access Issues (continued)• Internet Access Issues – High government access fees – Government monitored access – Government filtered access – No public access allowed
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 headquarters
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 platforms
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 collaboration
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
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
Global Systems Development• Challenges – Conflicts over local versus global system requirements – Difficulties agreeing on common system features – Disturbances caused by systems implementation and maintenance activities
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 definitions
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 excellence
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?
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?
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?