Chapter 14

Enterprise and Global Management of Information Technology

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Section 1Managing IT for the Enterprise

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II. Managing Information Technology IT ManagementIT Management

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V. Organizing IT Historically, IT was first centralized (mainframes),

the decentralized (distributed client/server), and is now more of a hybrid approach

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VI. Outsourcing and Offshoring IT and IS Outsourcing – purchasing products/services that were

previously provided internally; 5 main reasons:

Save Money – Achieve Greater Return on Investment (ROI) – outsourcing can provide large cost savings

Focus on Core Competencies – outsourcing allows a firm to concentrate on their own business/industry, not on IT

Achieve Flexible Staffing Levels – outsourcing allows business growth without increasing overhead

Gain Access to Global Resources – outsourcing provides access to IT resources all over the world

Decrease Time to Market – outsourcing allows small firms to compete successfully against larger firms

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VI. Outsourcing and Offshoring IT and ISOffshoring – relocation of a firm’s

business processes to a lower-cost location, usually overseas

Trends in Outsourcing and Offshoring – originally outsourcing and offshoring were used to lower costs, but now are used to find highly talented IS/IT personnel

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Section 2Managing Global IT

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I. The International Dimension

Managing a business today means dealing with the international dimension

Must include cultural, political, and geoeconomic challenges of the business community

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V. Global Business/IT Applications

Global Business Drives – business requirements caused by the nature of the industry and its competitive environmentGlobal Customers – customers may be anywhereGlobal Products – products are the same throughout

the worldGlobal Operations – subsidiaries may change based

on economicsGlobal Resources – use/cost of resources are shared

by subsidiaries Global Collaboration – knowledge/expertise of

colleagues is shared

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VI. Global IT Platforms (Infrastructure)

Technically complex, and has political and cultural implications

The Internet as a Global IT Platform – it has become a low-cost interactive channel for communications and data exchange

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VIII. Global Systems Development

Imagine the challenges of developing a domestic system, then multiply that by the number of countries/cultures where that systems will be used

Systems Development StrategiesTransform a local application into a global applicationEstablish a Multinational Development Team to

handle global application developmentEstablish Centers of Excellence – assign a project to a

particular team based on its experience in that business or technical area

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Key Indicators

Criteria Possible Measurement

Workforce Compatibility

 

 

 

 

Language Same language as home country

Education level

 

Secondary or greater education

Literacy Rate

Overall Wage Rate/GDP per capita

GDP per Capita

Average Wage Rate

Cultural Issues

 

Work Ethic

Company culture compatibility

Ideological/Social Issues Company culture compatibility

Religious Issues Holidays

Compatibility with company

Communications Infrastructure

 

 

 

Telephone Lines/ Telecommunications

Telephone lines per capita

Reliability of Telecommunications

Internet Usership Internet subscribers per capita

Bandwidth International bandwidth per subscriber

Technological Comparison Available technology comparable to home country

Standards

 

Similarity to home country Compatibility

Seamless Integration (Reliability and Quality)

Integratability of separate systems

Global IT Management ChallengesGlobal IT Management Challenges

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Key Indicators

Criteria Possible Measurement

Availability of Software/ Hardware

 

Technical Support Availability

 

Vendor Support Availability

Support from home office

Product Availability

 

Product availability

Product language compatibility

Regulatory Structure

 

 

 

 

 

 

 

Flexibility

 

Government-run communications?

Monopoly-run?

Legal

 

Legal Structure Risk

Investment Protection

Transborder data flow issues

 

Trade policies

Telecommunications network

Taxes/Incentives/Tariffs/ Policies

Tariff models that favor Internet access

Tariff models that favor development

Security/Quality of Data

 

 

 

 

 

 

Piracy Laws/Regulations

Language Translation Issues Similar language?

Information Content/Security

 

 

 

 

Time/Data format

Formatting Issues

Privacy regulations

Currency issues

Images/sounds

Global IT Management Challenges (cont’d)Global IT Management Challenges (cont’d)

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VII. Global Data Access Issues

Transborder Data Flows (TDF) are considered a violation of national sovereignty by many countries because they avoid customs duties and import/export regulations

Internet Access Issues – some countries restrict access to the Internet

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As you finish up this class…

How does this relate to careers?

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EMPLOYABILITY SKILLS

• ACADEMIC SKILLS • PERSONAL MANAGEMENT SKILLS• TEAMWORK SKILLS

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ACADEMIC SKILLS

- Those skills which provide the basic foundation to get, keep and progress on a job and to achieve the best results.

• COMMUNICATE • THINK/ANALYTICAL • LEARN

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PERSONAL MANAGEMENT

- The combination of skills, attitudes and behaviors required to get, keep and progress on a job and to achieve the best results.

• CREATIVITY • ORGANIZATIONAL • PERSONALITY - POSITIVE ATTITUDES AND

BEHAVIORS • RESPONSIBILITY • ADAPTABILITY

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TEAMWORK SKILLS

- Those skills needed to work with others on a job and to achieve the best results .

• Understand/contribute to the organization's goals• Understand/work within the culture of the group• Plan and make decisions with others and support

the outcomes• Respect the thoughts and opinions of others in

the group• Lead when appropriate, mobilizing the group for

high performance

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Developing a Mission Statement

• Artistic• Attitude• Career• Education• Family• Financial• Leisure• Physical• Social• Spiritual

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Remember the Wizard of OZ?

THE YELLOW BRICK ROAD...THE YELLOW BRICK ROAD...

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YELLOW BRICK ROAD...

HEARTHEART

COURAGECOURAGE

BRAINBRAIN

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On Your Way to the Emerald City...

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We’ve finished the last chapter!