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Chap012 MIS
- 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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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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