Management Information System Chapter 14 GTU MBA
July 14, 2016 | Author: Rushabh Vora | Category: N/A
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“How Might cultural, Political, or geoeconomic challenges affect a global company's use of the Internet? Give several examples.
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Enterprise and Global Management of Information Technology
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
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Identify several cultural, political, and geoeconomic challenges that confront managers in the management of global information technologies Explain the effect on global business/IT strategy of the trend toward a transnational business strategy by international business organizations
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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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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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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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Three things happened in the past few years ◦ The Internet boom inspired businesses to connect their networks ◦ Companies on 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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Early Years ◦ 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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Application development management involves ◦ Systems analysis and design
◦ Prototyping ◦ Applications programming ◦ Project management
◦ Quality assurance ◦ System maintenance
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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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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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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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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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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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E-commerce architect Technical team leader Practice manager Systems analyst
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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 1419
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 1420
The purchase of goods or services from third-party partners that were previously provided internally
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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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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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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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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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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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Political challenges ◦ Many countries regulate or prohibit the transfer of data across their national boundaries
◦ Others severely restrict, tax, or prohibit imports of hardware and software ◦ Some have local content laws that specify the portion of the value of a product that must be added in that country if it is to be sold there ◦ Others require a business to spend part of the revenue they earn in a country in that nation’s economy 1430
Geoeconomic challenges ◦ Physical distances are still a major problem ◦ It may take too long to fly in specialists
◦ It is difficult to communicate in real time across 24 time zones ◦ Many countries do not have good telephone and telecommunications services ◦ It may be hard to find skilled local workers ◦ There can be great differences in the cost of living and labor costs between countries
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Cultural challenges ◦ Languages ◦ Cultural interests
◦ Religions ◦ Customs ◦ Political philosophies
◦ Global IT managers need cultural training before they are sent on assignment ◦ Different work styles and business relationships
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Companies are moving toward a transnational strategy ◦ Business depends heavily on information systems and Internet technologies to help integrate global business activities ◦ Requires an integrated and cooperative worldwide IT platform
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Business requirements caused by the nature of the industry and its competitive or environmental forces Examples of global drivers: ◦ ◦ ◦ ◦ ◦
Customers Products Operations Resources Collaboration
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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
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Software Difficulties ◦ Packages developed in Europe may be incompatible with American or Asian versions
◦ The software publisher may refuse to supply markets that disregard software licensing and copyright agreements
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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
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Will you have to develop a new navigational logic to accommodate cultural preferences? What content will you translate, and what content will you create from scratch to address regional competitors or products that differ from those in the U.S.? Should your multilingual effort be an adjunct to your main site, or will you make it a separate site, perhaps with a country-specific domain?
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What kinds of traditional and new media advertising will you have to do in each country to draw traffic to your site? Will your site get so many hits that you’ll need to set up a server in a local country? What are the legal consequences of having your website targeted at a particular country, such as laws on competitive behavior, treatment of children, or privacy?
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Transborder Data Flows may be viewed as violating ◦ A nation’s sovereignty because it avoids customs duties and regulations ◦ Laws protecting the local IT industry from competition ◦ Laws protecting local jobs ◦ Privacy legislation
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Key data privacy provisions ◦ Notice of purpose and use of data collected ◦ Ability to opt out of third-party distribution of data ◦ Access for consumers to their information ◦ Adequate security, data integrity, and enforcement provisions
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The struggle between Internet censorship and openness at the national level revolves around ◦ Controlling the conduits ◦ Filtering the flows ◦ Punishing the purveyors
Most of the world has decided that restricting Internet access is not a viable policy ◦ Restricting access also hurts a country’s opportunities for economic growth and prosperity 1444
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
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Key development issues ◦ Conflicts over local versus global system requirements
◦ Trying to agree on common system features ◦ Disturbances caused by systems implementation and maintenance activities ◦ Global standardization of data definitions
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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
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