Enterprise and Global Management of e-Business Technology

  1 Introduction to Information Systems

Essentials for the Internetworked E-Business Enterprise

_{Eleventh Edition}

  James A. O’Brien

  Irwin/McGraw-Hill James A. O’Brien ^{Eleventh Edition 2} Introduction to Information Systems

  Chapter Objectives

• Identify several ways that information

  technologies have affected the job of managers in e-business companies.

• Explain how problems of information

  

system performance can be reduced by

the involvement of business managers in

IS planning and management

• Identify the seven major dimensions of

  

the e-business organization and explain

how they affect the success of e- business companies. _{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

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  James A. O’Brien ^{Eleventh Edition 3} Introduction to Information Systems Chapter Objectives

• • Identify each of the three components of

  

e-business technology management and

use examples to illustrate how they might

be implemented in e-business enterprise.

• Identify several cultural, political, and

  

geoeconomic challenges that confront

managers in the management of global e-

business technologies.

  Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Irwin/McGraw-Hill

  James A. O’Brien ^{Eleventh Edition 4} Introduction to Information Systems Chapter Objectives

• Explain the effect on global e-business

  strategy of the trend toward a transnational business strategy by international business organizations.

• • Identify several considerations that affect

  the choice of IT applications, IT platforms, data access policies, and systems development methods by a global e-business enterprise.

  Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Irwin/McGraw-Hill James A. O’Brien ^{Eleventh Edition 5} Introduction to Information Systems Managing e-Business Technologies

  Information Technology Developments Customer Value E-Business

• Responsiveness
• Agility, Flexibility •Accountability
• Business Strategies •Lower costs
• Supply Chain

  •Global and enterprise

• Total Quality

  computing; intranets

• IT infrastructure

  Business Partners Suppliers _{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

  Irwin/McGraw-Hill

National Gobel in Brief NABEL, 3/7/2003 TV, Audio, Refrigerator, Air Conditioner, Washing Machine

  Products :

  Electric Fan, Electric Iron, Pump, Car Audio,

  Pants Press Brand : Established : July 27, 1970 Capital : US$ 23 Million Share holders : Matsushita Electric Industrial Co. Ltd. (60%) Gobel International (40%) Employees : 3,204 (April 2003) Sales (2002) : Rp. 1.8 Trillion (27% export) Audio Factory Air Conditioner Factory Refrigerator Factory

Global Competitiveness NABEL, 3/7/2003

  Domestic Market Government University

  Global : WTO Regional : A Sub-Regional : AFTA Manufacturer

• Regulation
• Incentive
• Certification
• Apprenticeship
• Research
• ISO CERT.
• ANTI DUMPING
• ENERGY SAVING
• RECYCLING
• Vision
• Policy
• HIGH QUALITY
• COST
• SPEED
• GLOBAL MODEL

  

Eleventh Edition James A. O’Brien

⁸ Introduction to Information Systems Irwin/McGraw-Hill ^{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

  Business Quality Improvement Traditional Organization Business Reengineering E-Organization Organization Structure

  Target

  Leadership

  Potential Payback

  Competitiveness Export Market

  Risk

  Coherence

  What Changes?

  Knowledge

  Primary

  Alliances Incrementally Improving Existing Processes Hierarchical Existing Processes Radically Redesigning Business Systems Horizontal, networked Business Systems Any Process Centralized focus Strategic Business Processes Everyone is a leader Processes 10%-50% Improvements 10%-50% Improvements 10-Fold Improvements 10-Fold Improvements Low Low High High Same Jobs - More Efficient Same Jobs - More Efficient Big Job Cuts; New Jobs; Major Job Redesign Big Job Cuts; New Jobs; Major Job Redesign

  IT and Work Simplification

  IT and Organizational Customer relevance Institutional Delegated authority Collaboration rewarded Governance Internal relevance Individualistic Ally with distant partners Complement current gaps Top-down Vertical decision making Individuals rewarded Distributed Ally with competitors, customers and suppliers Create new value The e-Business Organization

  People and Culture

  The Role of Information Technology NABEL, 3/7/2003

A company that cannot change the way it thinks about Information Technology cannot re-engineer

  Distruptive Old Rule New Rule Technology Information can appear Information can appear Shared databases in only one place simultaneously in as many at one time places as it is needed Business can

Business must choose

Telecommunications simultaneously reap the

between centralization

networks benefits of centralization

and decentralization

and decentralization

  Only expert can perform A generalists can do the Expert Systems complex work work of an expert Decision Support Tools Managers make all Decision-making is part (database access,

decisions

of everyone’s job modeling software) Source: Reengineering The Corporation - Michael Hammer & James Champy

  James A. O’Brien ^{Eleventh Edition 10} Introduction to Information Systems Example of organizational structure of an e-business enterprise

  Consumer E-commerce Products Business Unit Business Unit Shared IT

  Industrial

Global

  Support Products Services Executive Business Unit Business Unit Core Financial Shared Administrative Services Support Services

  Business Unit Business Unit _{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

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Eleventh Edition James A. O’Brien

¹¹ Introduction to Information Systems Irwin/McGraw-Hill ^{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.} e-Business Technology Management

  Managing the IT Organization Managing e-Business IT Strategy Managing Application Development & Technology e-Business Technology Management

  

Eleventh Edition James A. O’Brien

¹² Introduction to Information Systems Irwin/McGraw-Hill ^{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

  IT Strategic Planning Management

  E-Business Application Development & Deployment E-Business IT Strategies and Architecture E-Business Strategies and Models Customer and Business Value Visioning Key Insights Key Objectives Priorities More Questions Feedback Feedback James A. O’Brien ^{Eleventh Edition 13} Introduction to Information Systems

Benefits Derived from Company IT Planning

• Reduced support costs
• Reduced complexity
• Expertise portability
• Interoperability • Volume discounts
• Reduced training costs
• Information sharing Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

  Irwin/McGraw-Hill James A. O’Brien ^{Eleventh Edition 14} Introduction to Information Systems

  Managing the IS Function

  Application Development Human Resource Management

• Systems Analysis •IS Recruiting •Systems Design •Training
• Programming •Retainment Programs •System Maintenance •Support Staff

  IT Operations Management

• Network Management

  •Production Control

  •Product Support •Systems Performance _{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

  Irwin/McGraw-Hill

  

Eleventh Edition James A. O’Brien

¹⁵ Introduction to Information Systems Irwin/McGraw-Hill ^{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

Global e-Business Technology Management

  Systems Development Data Resource Management

Internet-based

Technology

  

Platforms

e-Business Application Portfolios e-Business/IT Strategies

  

Global IT

Management

Cultural, Political,

and Geoeconomic

  

Challenges

Eleventh Edition James A. O’Brien

¹⁶ Introduction to Information Systems

• -Global Sourcing -Multiregional

• -Horizontal Integration

  -Some transparency of

  customers and production<
• - Autonomous operations -Region Specific -Vertical Integration -Specific Customers -Captive Manufacturing
• -Virtual e-Businesses -World Markets -Transparent Manufacturing -Global Supply Chain -Global Alliances

  Irwin/McGraw-Hill ^{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

  Global e-Business Strategies

  Transactional

  International

  Global

  

Eleventh Edition James A. O’Brien

¹⁷ Introduction to Information Systems Irwin/McGraw-Hill ^{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

  Business Drivers for Global e-Business

Global Customers Global Products Global Operations Global Resources Global Collaboration Business Drivers for Global e-Business

  

Eleventh Edition James A. O’Brien

¹⁸ Introduction to Information Systems Irwin/McGraw-Hill ^{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

  Global IT Platform Issues

Global Infrastructure

• •Global Data Access

  •Regulated Access

  •Transborder Data Flows

Global Systems Development

Global Computing Facilities

• Local vs. Global Requirements •Multilingual Needs •Standardization of Data •Scheduling Global Activities
>Hardware acquisitions
• Import restrictions
• Software compatibility
• Local service
• Balancing workloads
• Lack of spare parts

James A. O’Brien ^{Eleventh Edition 19} Introduction to Information Systems Chapter Summary

• e-Business technologies are changing the

  distribution, relationships, resources, and responsibilities of managers.

• High-quality information system performance

  is dependent on extensive and meaningful management and user involvement in the governance and development of IT applications.

• The organizational structure and roles of e-

  business companies are undergoing major change as they strive to become customer- focused. _{Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.}

  Irwin/McGraw-Hill James A. O’Brien ^{Eleventh Edition 20} Introduction to Information Systems

  Chapter Summary (cont)

• Managing IT in an e-business has three

  major objectives:

• – Managing the joint development and

  implementation of e-business IT strategies.

• – Managing the development of e-business applications and the research and implementation of new technologies.
• – Managing IT processes, professionals, and subunits within the company.

  Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Irwin/McGraw-Hill James A. O’Brien ^{Eleventh Edition 21} Introduction to Information Systems Chapter Summary (cont)

• • Managing global e-business technologies

  includes:

• – Dealing with cultural, political, and geoeconomic challenges posed by various countries.
• – Developing appropriate business and IT strategies.

• – Developing a portfolio of global e-business and

  e-commerce applications and an Internet-based technology platform to support them.

  Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Irwin/McGraw-Hill

  James A. O’Brien ^{Eleventh Edition 22} Introduction to Information Systems Chapter Summary (cont)

• Many businesses are becoming global

  companies and moving towards transnational e-business strategies in

which they integrate the global business

activities of their subsidiaries and headquarters.

  Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved. Irwin/McGraw-Hill