UNIT - 4

MANAGING INFORMATION TECHNOLOGY

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Components of IT Management

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Managing Information Technology

Managing the joint development and implementation of business and IT strategies
Use IT to support the strategic business priorities Align IT with strategic business goals

Managing the development and implementation of new business/IT applications and technologies
Managing information systems development

Managing the IT organization and IT infrastructure

Hardware, software, database, networks and other resources

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Business/IT Planning Process

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Components of Business/IT Planning

Strategy Development
Developing business strategies that support a companys business vision

Resource Management
Developing strategic plans for managing or outsourcing a companys IT resources

Technology Architecture
Making strategic IT choices that reflect an information technology architecture designed to support a companys business/IT initiatives
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Information Technology Architecture

Technology Platform
Networks, computer systems, system software and integrated enterprise application software

Data Resources
Operational and specialized databases Store and provide data and information for business processes and decision support

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Information Technology Architecture

Applications Architecture
Integrated architecture of enterprise systems that support strategic business initiatives as well as crossfunctional business processes

IT Organization
Organizational structure of the IS function within a company and the distribution of IS specialists

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Organizing IT
Early years: centralization of computing with large mainframes Distributed: centralized control over the management of IT while serving strategic needs of business units
Hybrid of both centralized and decentralized components

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Senior managements involvement in business/IT decisions

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IT Management Failures

If IT not used effectively then the company fails

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Introduction to EDI
What is EDI?
Electronic Data Interchange is the computer-tocomputer exchange of business data and documents between companies using standard formats recognized both nationally and internationally. The information used in EDI is organized according to a specified format set by both companies participating in the data exchange.

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History of EDI
Both client and vendors input their requirements to create a set of standard data formats that
were hardware independent; were unambiguous and could be used by all trading partners;

reduced labor-intensive tasks such as data-entry;

allowed the sender of data to control the exchange including receipt confirmation of by the other party
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Advantages of EDI
Lower operating costs Saves time and money Less Errors = More Accuracy No data entry, so less human error Increased Productivity More efficient personnel and faster throughput Faster trading cycle Streamlined processes for improved trading relationships
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Disadvantages
High Dependence on the participation of trading partners Costly for smaller companies
Difficult to agree on standard to be used

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Original Model
Retaile rA

Wholesaler A

Retailer B
Retailer C

Wholesaler B

Wholesaler C

Retailer D

Wholesaler D

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Retaile rA

Wholesaler A

Retailer B
Retailer C

Wholesaler B

Wholesaler C

Retailer D

Wholesaler D

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Value-Added Network (VAN)

VAN is a communications networks supplied and managed by third-party companies that facilitate electronic data interchange, Web services and transaction delivery by providing extra networking services

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VAN Model
Retailer A Retailer B Retailer C Retailer D Valueadded Network

Wholesaler A

Wholesaler B

Wholesaler C

Wholesaler D

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Web Services
Applications that use a universal language to send data and instructions to one another, with no translation required. Uses the Internet, so most of the connection problems are eliminated

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