The document outlines learning objectives for a chapter on enterprise and global management of information technology. It discusses how IT has impacted managers and organizations by enabling changes to decision making, structures, and work activities. It also describes the three major components of IT management: developing IT strategies; managing application development and research; and managing IT processes, professionals, and the IS function. Finally, it discusses failures in IT management that can result from a lack of business manager involvement in planning.

1. 1
Chapter
12
Enterprise and Global
Management of
Information Technology
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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.
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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.
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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.
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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.
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6. 6
Section I
Managing Information Technology
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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.
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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 activities
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9. 9
The Impact of IT on Organizations
Key dimensions of the networked enterprise
Organizational structure
Leadership and governance
People and culture
Coherence
Knowledge
Alliances
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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 IT
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11. 11
Managing Information Technology (continued)
Three major components (continued)
Managing the IT processes, professionals, &
subunits with the IT organization & IS
function
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12. 12
Managing the IS Function
Organizing IT
Centralization
Decentralization
Latest trend, hybrid
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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 maintenance
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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
organization
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15. 15
Managing the IS Function (continued)
Managing IS operations (continued)
Operational activities requiring
management
Computer systems operations
Network management
Production control
Production support
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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 control
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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
levels
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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-commerce
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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
deployment
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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 policies
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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 properly
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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.
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23. 23
Failures in IT Management (continued)
Helps avoid IS performance problems
Helps improve the strategic business value of
IT
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24. 24
Section II
Managing Global IT
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25. 25
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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26. 26
Global IT Management
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27. 27
Cultural, Political, and Geoeconomic Challenges
Cultural challenges
Differences in languages
Cultural interests
Religions
Customs
Social attitudes
Political philosophies
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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 agreements
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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 costs
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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 headquarters
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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 platforms
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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 collaboration
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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 issues
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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 exchange
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35. 35
Global Data Access Issues
Transborder data flows (TDF)
Data flow across international borders over
telecommunications networks of global
information systems
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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 legislation
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37. 37
Global Data Access Issues (continued)
Internet Access Issues
High government access fees
Government monitored access
Government filtered access
No public access allowed
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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 activities
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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 definitions
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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 excellence
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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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?
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59. 59
Real World Case 4 (continued)
Does the merger of Merrill’s global services
division and its IT division make good business
sense?
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60. 60
Real 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?
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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?
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62. 62
Real World Case 5 (continued)
What are the benefits and potential limitations
of offshore and near-shore IT outsourcing
arrangements?
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