Components of IT Management

   Identify the three components of information technology management

• – Use examples to illustrate how they might be implemented in a business

   Explain how failures in IT management can be reduced by the involvement of business

Konsep

  managers in IT planning and management Sistem

  Learning Objectives  Identify several cultural, political, and geo- economic challenges that confront managers in the management of global information technologies

   Explain how the trend toward a transnational business strategy by international business organizations affects global business/IT strategy

  12-3 Learning Objectives

   Identify several considerations that affect the choice of IT applications, IT platforms, data access policies, and systems development methods by a global business enterprise

   Understand the fundamental concepts of

  Konsep outsourcing and offshoring, as well as the primary reasons for selecting such an approach to IS/IT management

   Sistem

  12-5 Business and IT

  Global e-business E-commerce

  As the 21st century unfolds, many companies are transforming themselves into global powerhouses via major investments in…

  Other IT initiatives Business managers and professionals must know how to manage this vital organizational function

  Components of IT Management Konsep Sistem

  12-7 The Business/IT Planning Process The Business/IT Planning Process

  Major components of business/IT planning

  Strategic development Resource management

  Technology architecture Konsep Sistem

Information Technology Architecture

  12-9

  The IT architecture is a conceptual design that includes these major components

  Technology platform Data resources

  Application architecture

  IT organization

  Managing the IT Function

  Companies have essential applications on their intranets, without which they cannot function It became apparent that maintaining PCs on a network is very, very expensive

  The Internet boom inspired businesses to connect their networks

  Three things recently happened Created an urgent need for centralization

  Konsep Sistem

Organizing IT

  Early Years Next Current Centralization Downsizing and Centralized of computing moving back to control over the with large decentralization mgmt of IT mainframes Serving the strategic needs of business units Hybrid of centralized and decentralized components _12-11

  Avnet Marshall Organizational Components Konsep Sistem

  Managing Application Development

  Systems analysis & design

  System Prototyping maintenance

Application development involves…

  Applications Quality programming assurance

  Project management _12-13

  Managing IS Operations 

  IS operations management

• – Concerned with the use of hardware, software, network, and personnel resources in data centers

   Operational activities that must be managed

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• – Computer system operations
• – Network management
• – Production control

   Sistem

• – Production support

Software packages that…

  12-15 System Performance Monitors

  Monitor computer job processing Optimize computer system performance

  Facilitate capacity planning and control

  Features of System Performance Monitors Chargeback Systems

  Allocates costs to users based on the information service rendered

  Process Control Capabilities Systems that monitor and automatically control computer operations at large data centers

  Konsep Sistem

IT Staff Planning

  12-17

  Evaluating employees and rewarding good job performance with salary increases, promotions

  Designing career paths Setting salary and wage levels

  Recruiting, training, and retaining qualified IS personnel

IT Executives

  Chief Information Officer (CIO)

  Chief Technology Officer (CTO)

  Oversees all uses of IT Aligns IT with strategic business goals

  Second in command Manages the IT platform

  In charge of all IT planning/deployment

  Konsep Sistem

  Other IT Positions E-commerce Technical architect team leader

  Chief Systems Security Officer analyst

  12-19 Technology Management

   All IT technologies must be used as a technology platform for integrating business applications

• – Both internally or externally focused
• – Includes Internet, intranets, electronic commerce, collaboration technologies, CRM

Konsep

  software, enterprise resource planning, and supply chain management 

  Often the primary responsibility of a chief Sistem technology officer

  Managing User Services  Business units that support and manage end-user and workgroup computing

• – Can be done with information centers staffed 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

  _12-21

  Outsourcing

Konsep

  The purchase of goods or services Sistem from third-party partners that were previously provided internally

  Why Companies Outsource 12-23

  Offshoring

Relocation of an organization’s business processes to a lower-cost location

  This location is typically overseas Can be either production or service

Konsep Growth of services offshoring linked to…

  Digitization of many services Availability of large amounts of reliable and Sistem affordable communication infrastructure

Failures in IT Management

  Computerizing traditional business

  IT not used processes instead of developing effectively innovative e-business processes

  Poor response times Frequent downtime

  IT not used Poorly managed application efficiently development _12-25

  Management Involvement & Governance 

  Managerial and end user involvement

• – Key ingredient to high-quality information system performance
• – Optimizes business value of IT

   Governance structures

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• – Steering committees, executive councils
• – Encourages active participation in planning and controlling business uses of IT

   Sistem

• – Helps avoid post-development problems

  Sr. Management’s Involvement in IT 12-27

  IT Governance Approaches 

  Control Objectives for Information and Technology (COBIT)

• – Framework for IT management
• – Set of generally accepted measures, indicators, processes, and best practices

   Covers four domains

Konsep

• – Planning and organization
• – Acquisition and implementation
• – Delivery and support

   Sistem

• – Monitoring

  COBIT in Action 12-29

  The International Dimension Companies around the world are developing new models to operate competitively in a digital economy

  Concentrates on

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  These models are maximizing risk-adjusted structured, yet agile, return from both knowledge global, yet local and technology assets

   Sistem

  Case 2: Reinsurance Group of America, Fronterrra  Consistency across the different business functions, countries, languages, and processes in worldwide implementations is one of the most important challenges faced by global organizations today

   Reinsurance Group of America had to develop a single system to manage reinsurance business processes for numerous offices around the world

• – Staffs spoke different languages, in different time zones, and some were set in their way of managing the business

   Developing this system resulted in ROI of 15%, which was better than expected _12-31

  Case Study Questions 

  What is the business value of these global system developments for the companies mentioned in the case?

• – How did they achieve these benefits?
• – What were the major obstacles they had to overcome?

  Konsep 

What are the advantages and disadvantages

of a full-blown versus a phased approach for

system implementations in general, and global ones in particular?

   Sistem

• – How do you decide which road to take?

  Case Study Questions  How important is that all units in global organization speak the same business language, and use the same functions and business processes?

• – How do you balance the competing needs for flexibility and consistency across operations?

  12-33 Global IT Management Dimensions

  Konsep Sistem

  12-35 Global IT Management Challenges

  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 the portion of the value of a product that must be added in that country if it is to be sold there Others require a business to spend part of the revenue they earn in a country in that nation’s economy

  Global IT Management Challenges Geo-economic Challenges

  Physical distances still a major problem Takes too long to fly in specialists Hard to communicate in real time across time zones Poor telephone and telecommunications services

  May be hard to find skilled local workers Differences in the cost of living and labor costs Konsep Sistem

  12-37 Global IT Management Challenges

  Cultural Challenges

  Language and cultural interests Religions and customs

  Political philosophies Cultural training needed before assignments

  Work styles and business relationships

  Transnational Strategies Business depends heavily on information systems and Internet technologies to help integrate global business activities This requires an integrated and cooperative worldwide IT platform

  Companies are moving toward a transnational strategy Konsep Sistem Transnational Business/IT Strategies 12-39

  Global Business Drivers 

  Business requirements caused by the nature of the industry and its competitive or environmental forces

   Examples of global drivers

• – Customers

Konsep

• – Products – Operations – Resources

   Sistem

• – Collaboration

  Global IT Platforms Hardware Difficulties

  Import High prices High tariffs restrictions

  Long lead No local Lack of times for service or

  “localized” government spare parts documentation approvals _12-41

  Global IT Platforms Software Difficulties

  Packages developed in Software publisher may Europe may be refuse to supply markets incompatible with that disregard software

  American or Asian licensing and copyright

Konsep

  versions agreements

   Sistem

  12-43 International Data Communications Issues

  The Internet as a Global IT Platform An interconnected matrix that reaches tens of millions of users in over 100 countries

  Business environment free of traditional boundaries and limits The Internet

  Expand markets Reduce communications and distribution costs Without incurring massive cost outlays for telecommunications, companies can…

  Improve profit margins Konsep Sistem Key Questions for Global Websites 

  Will you have to develop a new navigational logic to accommodate cultural preferences?  What content will you translate, and what content will you create from scratch to address regional competitors or products that differ from those in the U.S.?

   Should your multilingual effort be an adjunct to your main site, or will you make it a separate site, perhaps with a country-specific domain? _12-45

  Key Questions for Global Websites 

  What kinds of traditional and new media advertising will you have to do in each country to draw traffic to your site?

   Will your site get so many hits that you’ll need to set up a server in a local country?

   What are the legal ramifications of having your

Konsep

  website targeted at a particular country, such as laws on competitive behavior, treatment of children, or privacy?

   Sistem

  Internet Users by World Region 12-47

  Global Data Access Issues Transborder Data Flows may be seen as violating

  A nation’s sovereignty because it avoids customs duties and regulations Laws protecting the local

  IT industry from competition

Konsep

  Laws protecting local jobs Privacy legislation Sistem

  12-49 U.S.-E.U. Data Privacy Requirements

  Key Data Privacy Provisions

  Notice of purpose and use of data collected Ability to opt out of third- party distribution of data

  Access for consumers to their information Adequate security, data integrity, and enforcement provisions

  Internet Access in Restrictive Countries 

  The struggle between Internet censorship and openness at the national level relates to

• – Controlling the conduits
• – Filtering the flows
• – Punishing the purveyors

   Most of the world has decided that restricting Internet access is not a viable policy

  Konsep Sistem

• – Restricting access also hurts a country’s opportunities for economic growth and prosperity

  Global Government Internet Restrictions  High Government Access Fees

• – Kazakhstan, Kyrgyzstan

   Government Monitored Access

• – China, Iran, Saudi Arabia, Azerbaijan, Uzbekistan

   Government Filtered Access

• – Belarus, Cuba, Iraq, Tunisia, Sierra Leone, Tajikistan, Turkmenistan, Vietnam

   No Public Access Allowed

• – Burma, Libya, North Korea _12-51

  Global Systems Development

  Key Development Issues Local versus global system requirements

  Getting agreement on system features

Konsep

  Global standardization of data definitions Disturbances caused by systems

   Sistem

  implementation and maintenance activities

  Global Systems Development  Key development strategies

• – Transform an application used by the home

  office or a subsidiary into a global application

• – Set up a multinational development team
• – Parallel development
• – Centers of excellence
• – Offshore development

  12-53 Internet-Enabled IT Development

  Konsep Sistem