Enterprise and Global Management of Information Technology Chapter 14 McGraw-Hill/IrwinCopyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

14-2 Identify each of the three components of information technology management and use examples to illustrate how they might be implemented in a business. Explain how failures in IT management can be reduced by the involvement of business managers in IT planning and management. Identify several cultural, political, and geo- economic challenges that confront managers in the management of global information technologies. Learning Objectives

14-3 Explain the effect on global business/IT strategy of the trend toward a transnational business strategy by international business organizations Identify several considerations that affect the choice of IT applications, IT platforms, data access policies, and systems development methods by a global business enterprise Understand the fundamental concepts of outsourcing and offshoring, as well as the primary reasons for selecting such an approach to IS/IT management Learning Objectives

14-4 Organizing IT Early Years –Centralization of computing with large mainframes Next –Downsizing and moving back to decentralization –Proliferation of mid-range and mini-computers Current –Hybrid of centralized and decentralized components –IS Subsidiaries –Outsourcing Systems integrators Application service providers

14-5 IT Staff Planning Recruiting, training and retaining Evaluating employee job performance Rewarding outstanding performance Setting salary and wage levels Designing career paths –Chief Information Officer (CIO) –Chief Technology Officer (CTO) –E-commerce architect –Technical team leader –Practice manager –Systems analyst

14-6 Technology Management Platform for integrating business applications –Both internally or externally focused Technologies –Internet, intranets, e-commerce and collaboration, CRM, ERP, and SCM software Responsibility of Chief Technology Officer

14-7 Global Teams – Best Practices Obtain local HR expertise Create job grade consistency across regions Manage dispersed staff as portfolio teams Make the work meaningful Clearly defining the roles of remote groups Bring remote staff to headquarters Foster communication across regional boundaries

14-8 Global Business Drivers Competitive or environmental forces drive business requirements Examples of global drivers: –Customers –Products –Operations –Resources –Collaboration

14-9 Global IT Platforms Hardware Difficulties –High prices –High tariffs –Import restrictions –Long lead times for government approvals –Lack of local service or spare parts –Lack of documentation tailored to local conditions Software Difficulties –Incompatibility of software Europe vs Asia vs US –Publisher reluctance May refuse to supply markets that disregard software licensing and copyright agreements

14-10 The Internet as a Global IT Platform The Internet –An interconnected matrix that reaches tens of millions of users in over 100 countries –Business environment is free of traditional boundaries and limits Without incurring massive cost outlays for telecommunications, companies can –Expand markets –Reduce communications and distribution costs –Improve profit margins

14-11 Global Data Access Issues Transborder Data Flows may be viewed as violating –National sovereignty –Laws protecting local IT from competition –Laws protecting local jobs –Privacy legislation

14-12 Internet Access in Restrictive Countries Revolves around –Controlling the conduits –Filtering the flows –Punishing the purveyors For most of the world restriction is not viable –Hurts opportunities for growth and prosperity

14-13 Global Government Internet Restrictions High Government Access Fees –Kazakhstan, Kyrgyzstan Government Monitored Access –China, Iran, Saudi Arabia, Azerbaijan, Ubekistan Government Filtered Access –Belarus, Cuba, Iraq, Tunisia, Sierra Leone, Tajikistan, Turkmenistan, Vietnam No Public Access Allowed –Burma, Libya, North Korea

14-14 Global Systems Development Key development issues –Conflicts over local vs global system requirements –Agreement on common system features –Disturbances caused by systems implementation and maintenance activities –Global standardization of data definitions

14-15 Systems Development Strategies Key strategies for global systems development –Transform an application used by the home office or a subsidiary into a global application –Set up a multinational development team –Parallel development –Centers of excellence –Offshore development