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UNIT - 4

• MANAGING INFORMATION TECHNOLOGY

12- 1

Components of IT Management 12.2 .

networks and other resources 12.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.3 . software. database.

Business/IT Planning Process 12.4 .

5 .Components of Business/IT Planning • Strategy Development – Developing business strategies that support a company’s business vision • Resource Management – Developing strategic plans for managing or outsourcing a company’s IT resources • Technology Architecture – Making strategic IT choices that reflect an information technology architecture designed to support a company’s business/IT initiatives 12.

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 12.6 .Information Technology Architecture • Technology Platform – Networks. computer systems.

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 12.7 .

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 12.8 .

9 .Senior management’s involvement in business/IT decisions 12.

IT Management Failures • If IT not used effectively then the company fails 12.10 .

– The information used in EDI is organized according to a specified format set by both companies participating in the data exchange. 12.11 .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.

– were unambiguous and could be used by all trading partners. – allowed the sender of data to control the exchange including receipt confirmation of by the other party 12. – reduced labor-intensive tasks such as data-entry.12 .History of EDI • Both client and vendors input their requirements to create a set of standard data formats that – were hardware independent.

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 12.13 .

Disadvantages • High Dependence on the participation of trading partners • Costly for smaller companies • Difficult to agree on standard to be used 12.14 .

15 .Original Model Retaile rA Wholesaler A Retailer B Retailer C Wholesaler B Wholesaler C Retailer D Wholesaler D 12.

Retaile rA Wholesaler A Retailer B Retailer C Wholesaler B Wholesaler C Retailer D Wholesaler D 12.16 .

Web services and transaction delivery by providing extra networking services 12.Value-Added Network (VAN) • VAN is a communications networks supplied and managed by third-party companies that facilitate electronic data interchange.17 .

18 .VAN Model Retailer A Retailer B Retailer C Retailer D Valueadded Network Wholesaler A Wholesaler B Wholesaler C Wholesaler D 12.

• Uses the Internet. with no translation required.Web Services • Applications that use a universal language to send data and instructions to one another.19 . so most of the connection problems are eliminated 12.