management information system chapter 14 gtu mba
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“How Might cultural, Political, or geo-economic challenges affect a globalcompany's use of the Internet? Give severalexamples.
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Identify each of the three componentsof information technology management
◦ Use examples to illustrate how they mightbe implemented in a business
Explain how failures in IT management canbe reduced by the involvement of businessmanagers in IT planning and management
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Identify several cultural, political, and geo-economic challenges that confront managersin the management of global informationtechnologies
Explain the effect on global business/ITstrategy of the trend toward a transnationalbusiness strategy by international business
organizations
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Identify several considerations that affect thechoice of IT applications, IT platforms, dataaccess policies, and systems developmentmethods by a global business enterprise
Understand the fundamental concepts of outsourcing and offshoring, as well as theprimary reasons for selecting such an
approach to IS/IT management
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As the 21st century unfolds, many companiesare transforming themselves into globalpowerhouses via major investments in
◦ Global e-business
◦ E-commerce
◦ Other IT initiatives
There is a need for business managers and
professionals to understand how to managethis vital organizational function
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Managing the joint development andimplementation of business and IT strategies
◦ Use IT to support strategic business priorities
◦ Align IT with strategic business goals
Managing the development and implementationof new business/IT applications and technologies
◦ Information systems development
Managing the IT organization and infrastructure
◦ Hardware, software, databases, networks, and otherresources
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Three things happened in the past few years◦ The Internet boom inspired businesses
to connect their networks
◦ Companies on on their intranets essential
applications without which their businessescould not function
◦ It became apparent that maintaining PCson a network is very, very expensive
These things created an urgent need forcentralization
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Early Years◦ Centralization of computing with large mainframes
Next
◦
Downsizing and moving back to decentralization
Current
◦ Centralized control over the management of ITwhile serving the strategic needs of business units
Hybrid of centralized and decentralized components
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Application development managementinvolves
◦ Systems analysis and design
◦
Prototyping◦ Applications programming
◦ Project management
◦ Quality assurance
◦ System maintenance
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IS operations management is concerned withthe use of hardware, software, network, andpersonnel resources in data centers
Operational activities that must be managed◦ Computer system operations
◦ Network management
◦ Production control
◦ Production support
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Software packages that◦ Monitor the processing of computer jobs
◦ Help develop a planned schedule of computeroperations that can optimize computer systemperformance
◦ Product detailed statistics that are invaluablefor effective planning and control of computingcapacity
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Chargeback Systems◦ Allocates costs to users based on the
information service rendered
Process Control Capabilities◦ Systems that not only monitor but
automatically control computer operationsat large data centers
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Recruiting, training and retaining qualifiedIS personnel
Evaluating employee job performance and
rewarding outstanding performance withsalary increases and promotions
Setting salary and wage levels
Designing career paths
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Chief Information Officer (CIO)◦ Oversees all uses of information technology
in many companies, and brings them intoalignment with strategic business goals
Chief Technology Officer (CTO)
◦ In charge of all information technologyplanning and deployment
◦
Manages the IT platform◦ Second in command
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E-commerce architect Technical team leader
Practice manager
Systems analyst
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All information technologies must bemanaged as a technology platform forintegratingbusiness applications
◦ Both internally or externally focused◦ The Internet, intranets, electronic commerce
and collaboration technologies, CRM software,enterprise resource planning, and supply chainmanagement
Often the primary responsibility of a chief technology officer
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Business units that support and manage enduser and workgroup computing
◦ Can be done with information centersstaffed with user liaison specialists or with
Web-enabled intranet help desks
Key roles
◦ Troubleshooting problems
◦ Gathering and communicating information◦ Coordinating educational efforts
◦ Helping with end user application development
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The purchase of goods or services from
third-party partners that were previouslyprovided internally
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Save money – achieve greater ROI Focus on core competencies – organizations
can focus on the business that they are in
Achieve flexible staffing levels
Gain access to global resources
Decrease time to market
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Relocation of an organization’s businessprocesses to a lower cost location
◦ This location is typically overseas
◦ Can be either production or service
Growth of services offshoring is linked to
◦ Availability of large amounts of reliableand affordable communication infrastructure
◦ Digitization of many services
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IT not used effectively◦ Computerizing traditional business processes
instead of developing innovative e-businessprocesses
IT not used efficiently
◦ Poor response times
◦ Frequent downtimes
◦
Poorly managed application development
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Managerial and end user involvement◦ Key ingredient to high-quality information system
performance
Involve business managers in IT management◦ Governance structures, such as steering committees
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Companies around the world are developingnew models to operate competitively in adigital economy
◦ These models are structured, yet agile,global, yet local
◦ They concentrate on maximizing the riskadjusted return from both knowledge andtechnology assets
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Political challenges◦ Many countries regulate or prohibit the
transfer of data across their national boundaries
◦ Others severely restrict, tax, or prohibit
imports of hardware and software
◦ Some have local content laws that specify theportion of the value of a product that must beadded in that country if it is to be sold there
◦ Others require a business to spend part of therevenue they earn in a country in that nation’seconomy
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Geoeconomic challenges◦ Physical distances are still a major problem
◦ It may take too long to fly in specialists
◦
It is difficult to communicate in real timeacross 24 time zones
◦ Many countries do not have good telephoneand telecommunications services
◦
It may be hard to find skilled local workers◦ There can be great differences in the cost of living
and labor costs between countries
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Cultural challenges◦ Languages
◦ Cultural interests
◦
Religions◦ Customs
◦ Political philosophies
◦ Global IT managers need cultural training
before they are sent on assignment◦ Different work styles and business relationships
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Companies are moving toward a transnationalstrategy
◦ Business depends heavily on informationsystems and Internet technologies to help integrate
global business activities
◦ Requires an integrated and cooperative worldwideIT platform
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Business requirements caused by the natureof the industry and its competitive orenvironmental forces
Examples of global drivers:◦ Customers
◦ Products
◦ Operations
◦
Resources◦ Collaboration
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Hardware Difficulties◦ High prices
◦ High tariffs
◦
Import restrictions◦ Long lead times for government approvals
◦ Lack of local service or spare parts
◦ Lack of documentation tailored to local conditions
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Software Difficulties◦ Packages developed in Europe may be incompatible
with American or Asian versions
◦ The software publisher may refuse to supply
markets that disregard software licensing andcopyright agreements
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The Internet◦ An interconnected matrix that reaches tens
of millions of users in over 100 countries
◦ Business environment is free of traditional
boundaries and limits
Without incurring massive cost outlaysfor telecommunications, companies can
◦ Expand markets
◦ Reduce communications and distribution costs
◦ Improve profit margins
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Will you have to develop a new navigational logicto accommodate cultural preferences?
What content will you translate, and what contentwill you create from scratch to address regional
competitors or products that differfrom those in the U.S.?
Should your multilingual effort be an adjunct
to your main site, or will you make it a separatesite, perhaps with a country-specific domain?
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What kinds of traditional and new mediaadvertising will you have to do in eachcountry to draw traffic to your site?
Will your site get so many hits that you’llneed to set up a server in a local country?
What are the legal consequences of havingyour website targeted at a particular country,
such as laws on competitive behavior,treatment of children, or privacy?
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Transborder Data Flows may be viewed asviolating
◦ A nation’s sovereignty because it avoidscustoms duties and regulations
◦ Laws protecting the local IT industryfrom competition
◦ Laws protecting local jobs
◦ Privacy legislation
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Key data privacy provisions◦ Notice of purpose and use of data collected
◦ Ability to opt out of third-party distributionof data
◦ Access for consumers to their information
◦ Adequate security, data integrity, and enforcementprovisions
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The struggle between Internet censorship andopenness at the national level revolvesaround
◦ Controlling the conduits
◦ Filtering the flows
◦ Punishing the purveyors
Most of the world has decided that restricting
Internet access is not a viable policy◦ Restricting access also hurts a country’s
opportunities for economic growth and prosperity
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High Government Access Fees◦ Kazakhstan, Kyrgyzstan
Government Monitored Access◦ China, Iran, Saudi Arabia, Azerbaijan, Ubekistan
Government Filtered Access◦ Belarus, Cuba, Iraq, Tunisia, Sierra Leone,
Tajikistan, Turkmenistan, Vietnam
No Public Access Allowed◦ Burma, Libya, North Korea
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Key development issues◦ Conflicts over local versus global system
requirements
◦ Trying to agree on common system features
◦ Disturbances caused by systems implementationand maintenance activities
◦ Global standardization of data definitions
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Key strategies for global systemsdevelopment
◦ Transform an application used by the homeoffice or a subsidiary into a global application
◦ Set up a multinational development team
◦ Parallel development
◦ Centers of excellence
◦
Offshore development
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