chapter 11 enterprise and global management of information technology
TRANSCRIPT
Chapter 11
Enterprise and Global Management of Information Technology
Management role and IT
IT is enabling more work to be accomplished with less management intervention
IT allowing for much more control and access to vital information
Biggest challenge to managers is Information Resource Management
IT and the organization
Most organizations are currently performing at low levels of information resource utilization
IT success is a function of planning and management support and involvement
Usually accomplished by IT steering committees
Managing Information TechnologyManaging Information Technology
ManagingInformationTechnology
ManagingInformationTechnology
Supplier Customer
Superfast Producers
Cross-FunctionalIntegration
Business Pressures Technology Base
Levels of Management Involvement in ISLevels of Management Involvement in IS Executive
InformationTechnologyCommittee
ExecutiveInformationTechnologyCommittee
End UserManagement
of InformationTechnology
End UserManagement
of InformationTechnology
ManagementSteering
Committee
ManagementSteering
Committee
Dimensions of organization
Multiple factors affect any organizationOrganizations must stay within cultural
limits unless major changes are plannedMany faces to this problemEffectively solved with participative
management style
Organizations as Sociotechnical SystemsOrganizations as Sociotechnical Systems
StructureStructure
PeoplePeople
TasksTasks
TechnologyTechnologyCultureCulture
Case study:Buy software or upgrade network
Scenario is Small company (revenue under 500 million) Currently using satellite for network
transmissions and a distributed data model Organization needs to replace database
(currently distributed to 350 locations) Limited to current hardware (no upgrades)
Option 1
Centralized model DBMS (Oracle Enterprise) $500,000 Network infrastructure $700,000 Total $1,200,000
Option 2
Distributed model DBMS licenses (12,500*350) $420,000 Annual maintenance to old sat $400,000 Total $820,000
Solution
Seems simple $820,000 vs $1,200,000Not so simple………..
Executive level instruction to add email capacity to stores requires upgrade to network
No longer becomes part of the topology issue Take the $700,000 out of the budget Net savings of $320,000 for solution A!
The Information Resource ManagementConcept
The Information Resource ManagementConcept
DistributedManagementDistributed
ManagementTechnologyManagementTechnologyManagement
ResourceManagement
ResourceManagement
FunctionalManagementFunctional
ManagementStrategic
ManagementStrategic
Management
InformationResource
Management
InformationResource
Management
Strategic Information Systems PlanningStrategic Information Systems Planning
BusinessVision
BusinessVision
StrategicOpportun-
ities
StrategicOpportun-
ities
GapAssess-
ment
GapAssess-
ment
Long-RangePositionNeeds
Long-RangePositionNeeds
Business/ITStrategies
Business/ITStrategies
InvestmentPlans
InvestmentPlans
TechnologyImplementation
Plans
TechnologyImplementation
Plans
OrganizationTransformation
Plans
OrganizationTransformation
Plans
TechnologyPlatform
TechnologyPlatform
DataResources
DataResources
ApplicationPortfolio
ApplicationPortfolio
ITOrgan-ization
ITOrgan-ization
BestPractices
BestPractices
Re-engineer
Re-engineer
SpecificNeeds
SpecificNeeds
ExistingCapabil-
ities
ExistingCapabil-
ities
CustomerNeeds
CustomerNeeds
PartnersNeeds
PartnersNeeds
DevelopStrategiesDevelop
Strategies
Design ITArch-
itecture
Design ITArch-
itecture
DevelopTactics
DevelopTactics
CreateVisionCreateVision
DetermineDrivers
DetermineDrivers AssessAssess
IT Architecture
The Major Dimensions of Global
IT Management
The Major Dimensions of Global
IT Management
SystemsDevelopment
SystemsDevelopment
DataManagement
DataManagement
TechnologyPlatforms
TechnologyPlatforms
ApplicationPortfolios
ApplicationPortfolios
Business/ITStrategies
Business/ITStrategies
Global ITManagement
Global ITManagement
Cultural, Political,and Geoeconomic
Challenges
Cultural, Political,and Geoeconomic
Challenges
Political ChallengesPolitical Challenges
Reciprocal trade agreements that require a businessto spend part of the revenue they earn in a countryin that nation’s economy
Local content laws that specify the portion of the valueof a product that must be added in that country if it is to be sold there
Severely restrict, tax, or prohibit imports of hardware and software
Rules regulating or prohibiting transfer of data across national boundaries (transborder data flows)
Geoeconomic ChallengesGeoeconomic Challenges
Problems (opportunities) in the great differences in the cost of living and labor costs in various countries.
Problems finding the job skills required in some countries, or enticing specialists from other countriesto live and work there.
Difficult to get good quality telephone andtelecommunications service in many countries
Difficult to communicate in real-time across the world’s24 time zones
Sheer physical distance involved in international business activity is still a problem
Cultural ChallengesCultural Challenges
Differences in work styles and business relationships
Differences in languages, cultural interests, religions, customs, social attitudes, and political philosophies