MIS Unit 4

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.

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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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.

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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Section I

Managing Information Technology

Business and IT
As companies are transformed into global ebusinesses 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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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

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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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Managing Information Technology (continued)

Three major components (continued) Managing the IT processes, professionals, & subunits with the IT organization & IS function

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Managing the IS Function

Organizing IT Centralization Decentralization Latest trend, hybrid

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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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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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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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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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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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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 ebusiness and e-commerce

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Managing the IS Function (continued)

Technology Management All IT must be managed as a technology platform for integrated e-business and ecommerce systems May assign a Chief Technology Officer (CTO) In charge of all IT planning and deployment

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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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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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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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Failures in IT Management (continued)

Helps avoid IS performance problems Helps improve the strategic business value of IT

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Section II

Managing Global IT

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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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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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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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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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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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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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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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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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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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Global Data Access Issues

Transborder data flows (TDF) Data flow across international borders over telecommunications networks of global information systems

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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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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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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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