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.
• 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.
3. Global 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.
• Benefit : more global business activities can be
integrated between headquarters and its
subsidiaries.
4. 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
5. The Impact of IT on Organizations
• Key dimensions of the networked enterprise
– Organizational structure
– Leadership and governance
– People and culture
– Coherence
– Knowledge
– Alliances
6. 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
– Managing the IT processes, professionals, &
subunits with the IT organization & IS function
7. Managing the IS Function
• Organizing IT
– Centralization
– Decentralization
– Latest trend, hybrid
• Managing Application Development
– Involves managing activities such as
• systems analysis and design
• prototyping
• applications programming
• project management
• quality assurance
• systems maintenance
8. 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
– Operational activities requiring management
• Computer systems operations
• Network management
• Production control
• Production support
9. 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
11. Cultural, Political, and Geoeconomic
Challenges
• Cultural challenges
– Differences in languages
– Cultural interests
– Religions
– Customs
– Social attitudes
– Political philosophies
12. 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
13. 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
14. 8 International Data
Communication Issues
• Improving the operational efficiency of networks
• Dealing with different network
• Controlling data communication security
• Dealing with transborder data flow restrictions
• Managing international telecommunication regulations
• Handling international politics
• Managing network infrastructure across countries
• Managing international integration of technologies
• Reconciling national differences
• Dealing with international tariff structures
15. Global Data Access Issues
• Transborder data flows (TDF)
– Data flow across international borders over
telecommunications networks of global
information systems
– Many countries view TDF as violating their national sovereignty because TDFs
avoid customs duties and regulations for the import or export of goods and
services.
– Others view TDF as violating their laws to protect the local IT industry from
competition, or their labor regulations for protecting local jobs. Also
politically sensitive is the movement of personal data out of a country..
16. Global Data Access Issues (continued)
• Internet Access Issues
– High government access fees
– Government monitored access
– Government filtered access
– No public access allowed
17. 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
18. 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
19. 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
20. 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
21. 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
22. 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
23. 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
24. 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
25. 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?
26. 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?
27. 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?