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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!