Post on 25-Dec-2015
Tonga Institute of Higher Education
IT 245
Management Information Systems
Lecture 8
Managing IT Enterprise and Global Management
CRITICAL ROLE OF INFO TECNOLOGY
• Development of more effective Operational Processes
• Development of more effective Management Processes
• IT & IS have become an important Organizational Function
MANAGERS AND INFO TECHNOLOGY
• A major force enabling Organizational and Managerial Change.
• Enable Individuals, Teams, Workgroups etc to get wired in close business relationship.
• Provide communication, coordination & collaboration needed in today’s competitive global marketplace.
MANAGERS AND INFO TECHNOLOGY • PROMOTE INNOVATIVE CHANGES IN –
– Managerial Decision-making : Managers free from routine number crunching. Can concentrate on tougher strategic policy questions.
– Organizational Structures : Reduction in layers of Middle Management.
– Managerial Work Activities : Along with normal functional activities, today’s managers are expected to look after Information Resource Management.
INFORMATION RESOURCE MANAGEMENT (IRM)
• Traditional resources : Men, Money and Machines
• IT has become the Fourth Resource
• Like other three resources, even IT must be managed for efficient use and adequate Return On Investment (ROI)
FIVE DIMENSIONS OF IRM
• 1. Strategic Management
• 2. Operational Management
• 3. Resource Management
• 4. Technology Management
• 5. Distributed Management
IRM : STRATEGIC MANAGEMENT
• IT to make contribution towards achieving a company’s strategic objectives.
• The IS function to produce new organizational structures and business processes to create competitive advantages for the company.
• Creation of a Senior Manager Position : Chief Information Officer (CIO) : Long Term Planning and Strategy. Meeting Strategic business Objectives.
Re-engineering of E-Business
• Organizational Structure: Centerless, networked, Flexible• Leadership:Create Environment for success & change.• People & Culture: Delegation, Collaboration, shape your
own career.• Coherence: Embedded vision in all individuals.• Knowledge Management: Customer focused,
Institutional• Alliances: with competitors, customers, suppliers, create
new value by outsourcing.• Governance: Internal/External focus, distributed.
IRM : OPERATIONAL MANAGEMENT
• Normal managerial functions, techniques and organizational structures common to most businesses can be used to manage IT & IS functions
• Centralization Vs. Decentralization : IT can support both. Actual decision on this aspect depends upon the philosophy of top management, the culture of the organization, need to reengineer the operations etc.
HUMAN RESOURCE MANAGEMENT
• Data & Info, H/W & S/W, telecom Networks and IS Personnel are VALUABLE RESOURCES that must be managed like other assets of a company.
• Human Resource Management of IT : Recruiting, Training and Retaining IT people.
• Management of Managerial, Technical & Clerical personnel.
• Evaluation and reward of performance. Design career path for employees for their & Co growth.
E-BUSINESS TECHNOLOGY MANAGEMENT…1 OF 2
• All technologies that process, store and communicate data & info throughout the company should be managed as Integrated Systems of Organizational Resources.
• Technologies : Internet, Intranets, Extranets, E-Commerce, Collaboration Systems and Traditional Computer-based Information processing.
• Network management : managing a company’s Internet access, intranets, extranets, WAN, Interconnected LAN of Client/Server Computing, Telecommunications Networks.
E-BUSINESS TECHNOLOGY MANAGEMENT…2 OF 2
• 1. Managing E-business & IT Strategy: CEO& CIO: Long Term Objectives, Planning.
• 2.Managing Application Development & Technology:CIO & CTO. Involves Sys Analysis & Design, prototyping, programming, project management, Q control, Sys maintenance.
• 3Managing IT Organization : Centralization V. Decentrlization, Downsizing
IRM : DISTRIBUTED MANAGEMENT
• Management of IT & Info Resources is a responsibility of ALL MANAGERS whatever may be their function or level in the company. Responsibility of managing IT is being distributed.
• End-user Computing : Troubleshooting problems of end-users, Educating end-users, Helping them develop applications. Establish policies for acquisition of H/W & S/W to ensure compatibility.
IRM : DISTRIBUTED MANAGEMENT …contd.
• Managing Internet Access by end-users : to stay within the capacity of client/server networks, address concerns of hacking, virus attacks, visiting undesirable web sites. Legitimate Work time Use.
SECTION II
• Global Information Technology Management
GLOBAL IT MANAGEMENT
• Dimensions : Cultural, Political and Geo-Economic issues in– Business/IT Strategies– Application Portfolios– Technology Platforms– Data Management– Systems Development
Global Business & IT Strategies
• Move towards Transnational Strategies : TCs Integrate their global business activities through close co-operation and interdependence among their international subsidiaries and their corporate headquarters.
• Heavy dependence on IS and IT to help integrate global activities.
• The following diagram shows IT strategies by TCs.
Global Business and IT ApplicationsIT applications to achieve the objectives of IT Strategies
IT applications depend upon Global Business Drivers :
– Global Customers, Global Products, Global Operations, Global Resources & Global Collaboration. See Diagram below.
– Examples : On Line Trans. Processing applications for Airlines & Hotel Chains.
– Worldwide Finance, Accounting and Office apps
Global IT Platforms
• Difficulty in building a uniform IT platform due to different H/W and S/W standards, language and work-culture differences.
• Location of servers in different countries to serve global customers.
• Outsourcing to ASPs.• Now Internet serves as a Global IT Platform: but
being open it is less secure. Internet-based private platforms are preferred.
Global Data Issues
• Transborder Data F lows (TDF) pose problems due to regulations of different countries
• Fears and Concerns about Info domination, Privacy, National & Economic Security.
Global Systems Development
• Systems Development activities are complex and time consuming even in the context of one country.
• The problem becomes all the more compounded in the Global Context as the systems have to cater to the needs of a number of countries.
• Strategies : Multinational Development Team, Parallel Development, Centers of Excellence etc.
How to Globalize ?• Change mind-set of employees from local to
Global• Activities of the Co to cater to Local needs. But
source technology, ideas, resources globally. Going Glocal. Global + Local = Glocal.
• The Co to transform into one Networked Integrated System
• Make use of local personnel talent . But provide global support.
• Create Information-based Org. to be Fast, Flexible & Innovative.
Summary• Managing E-Business Technologies
– E-Business and IT• Managers and E-Business Technologies• The E-Business Organization• E-Business Technology Management• Managing the IS Function
• Global E-Business Technology Management– The international Dimension
• Global E-Business Technology Management, Cultural, Political, and Geo-economics Challenges
• Global E-Business Strategies, Applications, Platforms• Global Data Access Issues• Global Systems Development