1. Chapter 14 Enterprise and Global Management of Information Technology
James A. O'Brien, and George Marakas Management Information Systems, 9th ed. 
Boston, MA: McGraw-Hill, Inc., 2009 
ISBN:
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives
Identify each of the three components of information technology management
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
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3. Learning Objectives (cont’d)
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
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4. Managing Information Resource and Technology
“In an increasingly competitive world, IT is critical to the development of effective operational and management processes. To serve customers well… companies need to be proficient in half a dozen key areas: reduced cycle times, reduced asset levels, faster development of new products, improved customer service, increasing empowerment of employees, and increased knowledge sharing and learning. Information technology is a critical resource for accomplishing all these goals”.
- Harvard Business Review

5. Basic Components of an Organization:
People
Managers and knowledge workers are individuals with a variety of preferences for information and diverse capabilities for effectively using information provided to them

6. Tasks
The tasks of many organization have become quite complex and inefficient over time. In many cases, IT has been used to do the same old thing, only faster.
Technology
The technology of computer systems continue to grow more sophisticated and complex. However, this should not dictate the information needs of end users in the performance of their organizational task.

7. Culture
Organizations and their subunits have a culture that is shared by managers and their employees. That is they have a unique set of organizational values and styles.
Organizations structure their management, employees, and job tasks into a variety of organizational subunits. However, information technology can also support a process of organizational redesign.

9. Organizations and IT:
One way to understand the organizational impact of information technology is to view an organization as a Sociotechnical system.
People, tasks, technology, culture, and structure are the basic components of an organization.
This concept emphasizes that to improve an organization’s performance, managers must:
Change one or more of these components
Take into account the relationships among these interdependent components.
This is especially important for the proper use of information technology.

11. Business and IT
As the 21st century unfolds, many companies are transforming themselves into global powerhouses via major investments in
Global e-business
E-commerce
Other IT initiatives
There is a need for business managers and professionals to understand how to manage this vital organizational function
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12. Case 1: Toyota, Procter & Gamble, Hess Corporation, and Others
Today, the role of a CIO has become very strategic. Tomorrow’s CIOs will be even more involved in strategic thinking and influential in an organization.
The skills needed to be a CIO has changed as their role has shifted from being a technologist to business strategist.
Developing and mentoring their successors is one of the key responsibilities of IT leaders in an environment that includes the changing role of the CIO and a shortage of qualified managers.
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13. Case Study Questions
Several comments in the case note that CIOs are in a unique position for companywide leadership, extending beyond their primary technological concerns. Why do you think this is the case? How are CIOs different in this regard from other chief officers, for example, in finance, HR, or marketing?
After reading the case, what do you think are the most important competencies for the successful CIO of tomorrow? How do you rate yourself in those? Had you considered the importance of these skills and abilities before?
How can CIOs prepare their successors for an uncertain future that will most likely require skills different from those possessed by the successful CIOs of today? Which key competencies are enduring, and which ones are a function of the current technological environment? How can CIOs prepare for the latter?
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14. Components of IT Management
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15. Managing Information Technology
Managing the joint development and implementation of business and IT strategies
Use IT to support strategic business priorities
Align IT with strategic business goals
Managing the development and implementation of new business/IT applications and technologies
Information systems development
Managing the IT organization and infrastructure
Hardware, software, databases, networks, and other resources
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16. Managing the IT Function
Three things happened in the past few years
The Internet boom inspired businesses to connect their networks
Companies on their intranets essential applications without which their businesses could not function
It became apparent that maintaining PCs on a network is very, very expensive
These things created an urgent need for centralization
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17. Organizing IT Early Years Next Current
Centralization of computing with large mainframes
Next
Downsizing and moving back to decentralization
Current
Centralized control over the management of IT while serving the strategic needs of business units
Hybrid of centralized and decentralized components
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18. Avnet Marshall Organizational Components
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19. Managing Application Development
Application development management involves
Systems analysis and design
Prototyping
Applications programming
Project management
Quality assurance
System maintenance
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20. Managing IS Operations
IS operations management is concerned with the use of hardware, software, network, and personnel resources in data centers
Operational activities that must be managed
Computer system operations
Network management
Production control
Production support
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21. System Performance Monitors
Software packages that
Monitor the processing of computer jobs
Help develop a planned schedule of computer operations that can optimize computer system performance
Product detailed statistics that are invaluable for effective planning and control of computing capacity
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22. Features of System Performance Monitors
Chargeback Systems
Allocates costs to users based on the information service rendered
Process Control Capabilities
Systems that not only monitor but automatically control computer operations at large data centers
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23. IT Staff Planning
Recruiting, training and retaining qualified IS personnel
Evaluating employee job performance and rewarding outstanding performance with salary increases and promotions
Setting salary and wage levels
Designing career paths
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24. IT Executives Chief Information Officer (CIO)
Oversees all uses of information technology in many companies, and brings them into alignment with strategic business goals
Chief Technology Officer (CTO)
In charge of all information technology planning and deployment
Manages the IT platform
Second in command
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25. Other IT Positions E-commerce architect Technical team leader
Practice manager
Systems analyst
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26. Technology Management
All information technologies must be managed as a technology platform for integrating business applications
Both internally or externally focused
The Internet, intranets, electronic commerce and collaboration technologies, CRM software, enterprise resource planning, and supply chain management
Often the primary responsibility of a chief technology officer
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27. Managing User Services
Business units that support and manage end user and workgroup computing
Can be done with information centers staffed with user liaison specialists or with Web-enabled intranet help desks
Key roles
Troubleshooting problems
Gathering and communicating information
Coordinating educational efforts
Helping with end user application development
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28. Outsourcing
The purchase of goods or services from third-party partners that were previously provided internally
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29. Outsourcing’s Top Ten
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30. Why Outsource? Save money – achieve greater ROI
Focus on core competencies – organizations can focus on the business that they are in
Achieve flexible staffing levels
Gain access to global resources
Decrease time to market
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31. Offshoring
Relocation of an organization’s business processes to a lower cost location
This location is typically overseas
Can be either production or service
Growth of services offshoring is linked to
Availability of large amounts of reliable and affordable communication infrastructure
Digitization of many services
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32. Failures in IT Management
IT not used effectively
Computerizing traditional business processes instead of developing innovative e-business processes
IT not used efficiently
Poor response times
Frequent downtimes
Poorly managed application development
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33. Poor IS Performance:
Well-known , Oft-repeated IT Pitfalls (drawback / problem):
Botched (failed) development projects
Escalating costs with no apparent economic benefit
Organizational disruption (disorder)
Technical glitches (error)

34. Management Involvement & Governance
Managerial and end user involvement
Key ingredient to high-quality information system performance
Involve business managers in IT management
Governance structures, such as steering committees
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35. Sr. Management’s Involvement in IT
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36. The International Dimension
Companies around the world are developing new models to operate competitively in a digital economy
These models are structured, yet agile, global, yet local
They concentrate on maximizing the risk adjusted return from both knowledge and technology assets
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37. Case 2: Reinsurance Group of America and Fronterrra
Consistency across the different business functions, countries, languages and processes involved in worldwide implementations is one of the most important challenges faced by global organizations today.
Reinsurance Group of America faced with a challenge in developing a single system that manages reinsurance business processes for numerous offices around the world—offices whose staffs speak different languages, are in different time zones, and just might be stuck in their ways as to how they manage their business.
The result of developing this system resulted in a return on investment of 15% which was better than expected.
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38. Case Study Questions
What is the business value of these global system developments for the companies mentioned in the case? How did they achieve these benefits? What were the major obstacles they had to overcome?
What are the advantages and disadvantages of a fullblown versus a phased approach for system implementations in general, and global ones in particular? How do you make the decision on which road to take?
How important is that all units in global organization speak the same business language, and use the same functions and business processes? How do you balance the competing needs for flexibility and consistency across operations?
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39. THANK YOU