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 Applications IT 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