management information system chapter 14 gtu mba

7/31/2019 Management Information System Chapter 14 GTU MBA

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“How Might cultural, Political, or geo-economic challenges affect a globalcompany's use of the Internet? Give severalexamples.

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Identify each of the three componentsof information technology management

◦ Use examples to illustrate how they mightbe implemented in a business

Explain how failures in IT management canbe reduced by the involvement of businessmanagers in IT planning and management

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Identify several cultural, political, and geo-economic challenges that confront managersin the management of global informationtechnologies

Explain the effect on global business/ITstrategy of the trend toward a transnationalbusiness strategy by international business

organizations

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Identify several considerations that affect thechoice of IT applications, IT platforms, dataaccess policies, and systems developmentmethods by a global business enterprise

Understand the fundamental concepts of outsourcing and offshoring, as well as theprimary reasons for selecting such an

approach to IS/IT management

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As the 21st century unfolds, many companiesare transforming themselves into globalpowerhouses 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 managethis vital organizational function

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Managing the joint development andimplementation of business and IT strategies

◦ Use IT to support strategic business priorities

◦ Align IT with strategic business goals

Managing the development and implementationof new business/IT applications and technologies

◦ Information systems development

Managing the IT organization and infrastructure

◦ Hardware, software, databases, networks, and otherresources

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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 businessescould not function

◦ It became apparent that maintaining PCson a network is very, very expensive

These things created an urgent need forcentralization

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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 ITwhile serving the strategic needs of business units

Hybrid of centralized and decentralized components

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Application development managementinvolves

◦ Systems analysis and design

◦

Prototyping◦ Applications programming

◦ Project management

◦ Quality assurance

◦ System maintenance

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IS operations management is concerned withthe use of hardware, software, network, andpersonnel 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 computeroperations that can optimize computer systemperformance

◦ Product detailed statistics that are invaluablefor effective planning and control of computingcapacity

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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 operationsat large data centers

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Recruiting, training and retaining qualifiedIS personnel

Evaluating employee job performance and

rewarding outstanding performance withsalary 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 intoalignment with strategic business goals

Chief Technology Officer (CTO)

◦ In charge of all information technologyplanning 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 bemanaged as a technology platform forintegratingbusiness applications

◦ Both internally or externally focused◦ The Internet, intranets, electronic commerce

and collaboration technologies, CRM software,enterprise resource planning, and supply chainmanagement

Often the primary responsibility of a chief technology officer

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Business units that support and manage enduser and workgroup computing

◦ Can be done with information centersstaffed 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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The purchase of goods or services from

third-party partners that were previouslyprovided 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 businessprocesses 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 reliableand affordable communication infrastructure

◦ Digitization of many services

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IT not used effectively◦ Computerizing traditional business processes

instead of developing innovative e-businessprocesses

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 developingnew models to operate competitively in adigital economy

◦ These models are structured, yet agile,global, yet local

◦ They concentrate on maximizing the riskadjusted return from both knowledge andtechnology 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 theportion of the value of a product that must beadded in that country if it is to be sold there

◦ Others require a business to spend part of therevenue they earn in a country in that nation’seconomy

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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 timeacross 24 time zones

◦ Many countries do not have good telephoneand 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 transnationalstrategy

◦ Business depends heavily on informationsystems and Internet technologies to help integrate

global business activities

◦ Requires an integrated and cooperative worldwideIT platform

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Business requirements caused by the natureof the industry and its competitive orenvironmental 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 andcopyright 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 outlaysfor 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 logicto accommodate cultural preferences?

What content will you translate, and what contentwill you create from scratch to address regional

competitors or products that differfrom those in the U.S.?

Should your multilingual effort be an adjunct

to your main site, or will you make it a separatesite, perhaps with a country-specific domain?

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What kinds of traditional and new mediaadvertising will you have to do in eachcountry to draw traffic to your site?

Will your site get so many hits that you’llneed to set up a server in a local country?

What are the legal consequences of havingyour 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 asviolating

◦ A nation’s sovereignty because it avoidscustoms duties and regulations

◦ Laws protecting the local IT industryfrom 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 distributionof data

◦ Access for consumers to their information

◦ Adequate security, data integrity, and enforcementprovisions

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The struggle between Internet censorship andopenness at the national level revolvesaround

◦ 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

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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 implementationand maintenance activities

◦ Global standardization of data definitions

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Key strategies for global systemsdevelopment

◦ Transform an application used by the homeoffice or a subsidiary into a global application

◦ Set up a multinational development team

◦ Parallel development

◦ Centers of excellence

◦

Offshore development

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management information system chapter 14 gtu mba

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