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12 Enterprise and Global Management

Of Information Technology

I. CHAPTER OVERVIEW
Foundation Concepts: Enterprise and Global Management of Information, emphasizes the impact of e-
business applications and technologies on management and organizations, the components of information systems
management, and the managerial implications of the use of information technology in global business.

Managers and IT – Information technologies and e-business applications are changing the distribution,
relationships, resources, and responsibilities of managers. That is, IT is helping to eliminate layers of
management, enabling more collaborative forms of management, providing managers with significant information
technology resources, and confronting managers with major e-business and e-commerce challenges.

The Networked Organization – The organizational structure and roles of e-business companies are undergoing
major changes as they strive to become agile, customer focused, value-driven enterprises. Figure 12.3
summarizes the major characteristics of the e-business organization compared to the structure and roles of a
previous organizational model.

Failures in IT Management – Information systems are not being used effectively or efficiently by many
organizations. The experiences of successful organizations reveal that the basic ingredient of high-quality
information system performance is extensive and meaningful management and user involvement in the
governance and development of IT applications. Thus, managers may serve on executive IT groups and create IS
management functions within their business units.

Managing Information Technology – Managing IT can be viewed as having three major components (1)
managing the joint development and implementation of e-business and IT strategies, (2) managing the
development of e-business applications and the research and implementation of new information technologies,
and (3) managing IT processes, professionals, and subunits within a company’s IT organization and IS function.

Managing Global IT – The international dimensions of managing global e-business technologies include dealing
with cultural, political, and geoeconomic challenges posed by various countries; developing appropriate business
and IT strategies for the global marketplace; and developing a portfolio of global e-business and e-commerce
applications and an Internet-based technology platform to support them. In addition, data access methods have to
be developed and systems development projects managed to produce the global e-business applications that are
required to compete successfully in the global marketplace.

Global e-Business and IT Strategies and Issues – Many businesses are becoming global companies and moving
toward transnational e-business strategies in which they integrate the global business activities of their subsidiaries
and headquarters. This requires that they develop a global IT platform, that is, an integrated worldwide hardware,
software, and Internet-based network architecture. Global companies are increasingly using the Internet and
related technologies as major components of this IT platform to develop and deliver global IT applications that
meet their unique global business requirements. Global IT and end user managers must deal with limitations on
the availability of hardware and software restrictions on transborder data flows, Internet access, and movement of
personal data, and difficulties with developing common data definitions and systems requirements.

II. LEARNING OBJECTIVES
Learning Objective
• Identify several ways that information technologies have affected the job of managers
• Identify the seven major dimensions of a networked organization and explain how they can affect the
success of a business.
• Identify each of the three components of information technology management and use examples to

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433-5. and geoeconomic challenges that confront managers in the management of global information technologies. • Identify several considerations that affect the access choice of IT applications. Understand the issues illustrated in fig. political. IT platforms. The three components are (fig. Discussed on pp. • Explain how failures in IT management can be reduced by the involvement of business managers in IS planning and management. political. and systems development methods by a global business enterprise. These are the factors shown in fig. • Identify several cultural. 424. • Explain the effect on global e-business strategy of the trend toward a transnational business strategy by international business organizations. Learning Objective 2: Identify the seven major dimensions of a networked organization and explain how they can affect the success of a business. and geoeconomic challenges that confront managers in the management of global information technologies. Know these 7 dimensions of organizations (fig. 12. and geoeconomic factors from a a global IT management perspective (positively or 23 4 . Know basically what each one is and how it could be affected by cultural. Learning Objective 1: Identify several ways that information technologies have affected the job of managers Discussed on p. illustrate how they might be implemented in a business. Have an idea of how manager's jobs have changed because of IS and what that has to do with changes in the organizations they manage. 12.9. 12.3). political. Have a basic idea of how networked and traditional organizations differ in regard to them: ● Organizational structure ● Leadership ● People and culture ● Coherence ● Knowledge ● Alliance ● Governance Learning Objective 3: Identify each of the three components of information technology management and use examples to illustrate how they might be implemented in a business.5): ● Managing business and IT strategy ● Managing application development and technology ● Managing the IT organization Learning Objective 4: Explain how failures in IT management can be reduced by the involvement of business managers in IS planning and management. 12. data access policies.11. Learning Objective 5: Identify several cultural.

concentrating on long-range information systems planning and strategy. applications programming. Learning Objective 7: Identify several considerations that affect the access choice of IT applications. global. and systems development methods by a global business enterprise. Centralization or Decentralization of IT: Modern computer-based information systems can support either the centralization or decentralization of information systems operations and decision-making within computer-using organizations. Know the comparative differences between international. Chief Information Officer: A senior management position that oversees all information technology for a firm. negatively): ● Business/IT strategies ● Business application portfolios ● Internet-based technology problems ● Data resource management ● Systems development Learning Objective 6: Explain the effect on global e-business strategy of the trend toward a transnational business strategy by international business organizations.DEFINED Application Development Management: Application development management involves managing activities such as systems analysis and design. and transnational organizations.12. IT platforms. Chargeback Systems: Methods of allocating costs to end user departments based on the information services rendered and information system resources utilized. data access policies. 12. quality assurance. and system maintenance for all major e-business/IT development projects. Cultural. KEY TERMS AND CONCEPTS . Chief Technology Officer: A chief technology officer (CTO) is an individual in an organization who is in charge of all information technology planning and deployment. and Geoeconomic Challenges: 23 5 . project management. Political. This is summarized in fig. prototyping. Be familiar with the global business issues in each area: ● Global business/IT strategies ● Global business/IT applications ● Global IT platforms ● Global data access issues ● Global systems development V.

and collaboration. governmental. Data Center: An organizational unit.Data Access Issues Global IT and end user managers must deal with restrictions on the availability of hardware and software. but becomes many times more difficult when the users and developers are in different countries. Global Information Technology Management . Global Information Technology Management – e-Business Applications: Managing information technologies in an e-business enterprise by managing the research and implementation of new information technologies and the development of e-business applications. and the cost of living in different countries. Also known as a computer center. products. regulations. operations. Downsizing: Many organizations are downsizing from the use of large computer systems to networks of small computers. restrictions on transborder data flows (TDF) and movement of personal data and difficulties with developing common data definitions and system requirements. This has become a business issue because restrictive access policies severely inhibit the growth of e-commerce with countries that restrict or forbid Internet access by their citizens. 23 6 . Global Information Technology Management . 2) Software choices. (2) managing the research and implementation of new information technologies and the development of e-business applications.Differences in customs. Technology platforms required to support a global business operation must consider: 1) Hardware choices. Human Resource Management of Information Technology: Reaching agreement on systems requirements is always difficult. Strategies must be developed in order to solve some of the problems of global systems development. which uses centralized computing resources to perform information processing activities for an organization. Global Information Technology Management . resources. Failures in Management: Information systems are not being used effectively or efficiently by many organizations. 3) Telecommunications networks. Global Information Technology Management: Managing information technologies in an e-business enterprise by (1) the joint development and implementation of e-business and IT strategies by business and IT executives.Systems Development Issues: Database management methods have to be developed and systems development projects have to be managed in order to produce the global information systems that are required to compete successfully in the global marketplace. Impact of IT on Managers: Managers now have a lot of information processing power and responsibility for the use of e-business technologies. and subunits within a company’s IT organization and IS function. Internet Access Issues: The Internet has become a global battleground over public access to data and information at business and private sites on the World Wide Web.IT Platforms: The choice of technology platforms (also called the technology infrastructure) is a major dimension of global IT management. professionals. Global Business Drivers: These include global customers. and (3) managing IT processes.e-Business/IT Strategies: Many firms are moving toward transnational business strategies in which they integrate their global business activities through close cooperation and interdependence between their international subsidiaries and their corporate headquarters. and 4) Computing facilities Global Information Technology Management .

Network Organization: The organizational structures and roles of e-business companies are undergoing major changes as they strive to become agile. introduce. 23 7 . and its use of appropriate global information technologies. customer focused. Managing Information Technology: Organizations must be able to manage e-business/IT planning and the IS function within a company. data center operations. Outsourcing IS Operations: Turning over all or part of an organization’s information systems operation to outside contractors. known as systems integrators or facilities management companies. Technology Management: The establishment of organizational groups to identify. with its interconnected network of thousands of networks of computers and databases. Operations Management: Includes the management of activities such as data entry. Management Involvement in IT: The experiences of successful organizations reveal that the basic ingredient of high-quality information systems performance is extensive and meaningful management involvement. The Internet. and training services. Transborder Data Flows: The flow of business data over telecommunications networks across international borders. consulting. Transnational Strategy: A management approach in which an organization integrates its global business activities through close cooperation and interdependence among its headquarters operations and international subsidiaries. User Services: End users need liaison.Internet as a Global IT Platform: The Internet and the World Wide Web are both vital components in international business and commerce. and user services. and production support. value-driven enterprises. production control. Systems Performance Monitor: A software package that automates many of the operations management activities. and monitor the assimilation of new information system technologies into organizations. equipment operations. has established itself as a technology platform free of many traditional international boundaries and limits. Managing the IS Function: Managers within organizations are responsible for managing application development.