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