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Enterprise and Global Management of Information Technology Learning Objectives Identify each of the three components of information technology management and use examples to illustrate how they might be implemented in a business.

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Enterprise and Global Management of Information Technology

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Enterprise and Global Management of Information Technology


Learning Objectives

  • Identify each of the three components of information technology management and 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 IS planning and management.

  • 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.

  • Identify several considerations that affect the access choice of IT applications, IT platforms, data access policies, and systems development methods by a global business enterprise.


ManagingInformation Technology

Section I

  • Business and IT

  • Development of Global Business

  • Need for Business Managers

  • Managing IS and Technologies

    Real World Case 1- Chicago Board of Trade: From Failure to Success in Managing Information Technology

Click to go to

Case 1


Information

Technology

Management

Managing

Application

Development

and

Technology

Managing

The IT

Organization

and

Infrastructure

Managing

Business

and IT

Strategy

Managing Information Technology

The Major Components of IT Management

CEO & CIO

CIO & CTO

CIO & IT Managers


Managing Information Technology

Comparing IT Management Approaches


Managing Information Technology

  • IT Management Differs from Conventional IT Management

  • Hires IT Professionals Who Can Integrate IT With Business

  • Organized Workgroups Around e-Business Initiatives Focused on e-Commerce Services

Avnet Marshall: Managing IT


Business

Application

Development &

Deployment

Customer

and Business

Value

Visioning

Business/IT

Strategies and

Architecture

Business

Strategies

and Models

Business/IT Planning

  • CEO & CIO Co-Adaptation Process

  • Strategy Development

  • Resource Management

Key Insights

Key Objectives

Priorities

More Questions

Feedback

Feedback


Information Technology Architecture

  • Technology Platform

  • Data Resources

  • Applications Architecture

  • IT Organization


Conventional IT Planning

Avnet Marshall’s Business/IT Planning

Information Technology Architecture

Avnet Marshall: e-Business Planning


Managing the IS Function

  • Organizing IT

  • Centralization

  • Downsizing

  • Decentralization


CIO

CEO

Managing the IS Function

Electronic Commerce and Supply Chain Management Development and Support Group

Group Alliances Development and support Group

Computer/

Communication

Operations Management Group

Marketing and Visibility Initiatives Planning Group

Enterprise Integration Development and Support Group


Managing the IS Function

Fireman’s Fund and FMC Corp: Outsourcing IT

  • 10 Year $380 Million Outsourcing Agreement With CGI - Montreal

  • IT Service Support Functions for 80 U.S. Locations

  • 300 Employees Moved to CGI

  • Resulted in Leaner IT Entity with 21% Saving in IT Infrastructure Costs

  • FMC Also Outsources and Realizes Substantial Savings


Managing the IS Function

  • Managing Application Development

  • IS Operations Management

  • System Performance Monitors

  • Chargeback Systems

  • Process Control

  • Human Resources Management of IT

  • The CIO and Other IT Executives


Managing the IS Function

Example Enterprise Management Portal


Managing the IS Function

Top IT Jobs: Requirements and Compensation

  • Chief Technology Officer

  • Base Salary:$100,000-$250,000

  • Bonus:Up to 30% of Salary

  • e-Commerce Architect

  • Base Salary:$120,000-$200,000

  • Bonus:Up to 20% of Salary

  • Technical Team Leader

  • Base Salary:$100,000-$200,000

  • Bonus:Up to 20% of Salary

  • Practice Manager

  • Base Salary:$80,000-$200,000

  • Bonus:Up to 20% of Salary


Managing the IS Function

  • Technology Management

  • Chief Technology Officer (CTO)

  • Managing User Services

  • Information Center


Failures in IT Management

PeopleFirst Finance: Failure of a CRM Project

  • Installing CRM Systems Can be Perilous

  • Multiple Installation Tries Often Needed

  • PeopleFirst Example Experienced Difficulties

  • Getting Information Was Like Playing “Whack-a-Mole”


Failures in IT Management

Management Involvement and Governance


Managing Global IT

Section II

  • International Dimensions of Modern Business

  • Benefits and Challenges of Offshore Systems Development

  • Real World Case 2-

    Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development

Click to go to

Case 2


Global

IT

Management

Cultural, Political,

and Geoeconomic

Challenges

Data

Resource

Management

Business

Application Portfolios

Internet-Based

Technology Platforms

Business/IT

Strategies

Systems

Development

Managing Global IT

The Major Dimensions of Global e-Business


Managing Global IT

Cendant Corp.: Global IT Management

  • Typical Kind of Global Challenge

  • Need to Understand the Workings of Each Local IT Group

  • Focus on Leveraging Their Cultures and Talents

  • Peers Often Put Together to Experience Synergy


Managing Global IT

  • Political Challenges

  • Geoeconomic Challenges

  • Cultural Challenges

  • Global Competition for IT Talent

  • Global Business/IT Strategies

  • Global Business/IT Applications


Managing Global IT

Alternative Global Strategies


Managing Global IT

Alternative Implementations


Managing Global IT

Global Business Drivers


Managing Global IT

TRW Inc.: Global Business/IT Challenges

  • $17 Billion Manufacturing and Services Company

  • Problems Are Addressed by Backup Teams Worldwide

  • Speed is of the Essence – Local Support Means Faster Access

  • TRW Developed Centers of Excellence to Address Problems

  • Pooling Resources to Solve Global IT Issues is an Advantage


Managing Global IT

Global IT Platforms


Managing Global IT

Citibank: Consolidating Global IT Platforms

  • $100 Million Global IT Firm

  • Rolling Out Global Software System with a Single Interface through 2004

  • Single System Customized for Each Country’s Needs

  • Flexcube Software Automates Much Balancing Activities


Managing Global IT

The Internet as a Global IT Platform


Managing Global IT

Global Data Access Issues

Transborder Data Flows (TDF)


Managing Global IT

Consumer Privacy Agreements


Managing Global IT

Council of Europe: Global Cybercrime Treaty

  • Fear That Cybercrime Treaty Will Affect Business Liability and Security

  • Anxiety Over Duplication of Other Agreements

  • Primary Objective Was to Break Bottlenecks in Cyberinvestigations

  • Differences of Opinion are Real


Managing Global IT

Internet Access Issues


Managing Global IT

Global Systems Development


Managing Global IT

Systems Development Strategies

DHL Worldwide: Global System Development

  • Development Centers Located Worldwide to Service 24 Hour Workday

  • Working With Outsourcing Sites at Lower Costs

  • Transparency of International Boundaries a Real Fact for DHL After 15 Years of Work


Summary

  • Failures in IT Management

  • Managing Information Technology

  • Managing Global IT

  • Global Business and IT Strategies and Issues


Application Development Management

Centralization or Decentralization of IT

Chargeback Systems

Chief Information Officer

Chief Technology Officer

Cultural, Political, and Geoeconomic Challenges

Data Center

Downsizing

Failures in IT management

Global Business Drivers

Global information Technology Management

Business/IT Applications

Business/IT Strategies

Data Access Issues

IT Platforms

Systems Development Issues

Human Resource Management of IT

Internet Access Issues

Internet as a Global IT Platform

Management Involvement in IT

Managing Information Technologies

Managing the IS Function

Operations Management

Outsourcing IS Operations

Systems Performance Monitor

Technology Management

Transborder Data Flows

Transnational Strategy

User Services

KEY TERMS


Optional Case Studies

Real World Case 1

Chicago Board of Trade: From Failure to Success in Managing Information Technology

Click to go to

Case 1

Real World Case 2

Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development

Click to go to

Case 2

Real World Case 3

Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software Development

Click to go to

Case 3

Real World Case 4

Avon Products and Guardian Life Insurance: Successful Management of IT Projects

Click to go to

Case 4


Questinons and Discussion...


Chicago Board of Trade:From Failure to Success in Managing Information Technology

Case 1

1- What were several major reasons the IT organization had failed at the Chicago Board of Trade? Explain the impact of each on CBOT.

Return to

Chapter 12

Return to

Cases Page


Lack of Leadership

Infrastructure-Ancient, Unreliable and Undocumented

Most Key Processes Routed to Old, Midrange Tandem Computers

Environment Very Complex

New Process Took More Than 90 Steps

Chicago Board of Trade:From Failure to Success in Managing Information Technology

Case 1

Discussion Points Would Include:


Project/Budget Controls Were Lacking

Quality Control Was Substandard

IT Full of Silos and Fiefdoms, No Economies of Scale

IT Hadn’t Completed a Single Project in Four Years

Technology Doesn't Provide Return for Investing Money In It

Chicago Board of Trade:From Failure to Success in Managing Information Technology

Case 1

Discussion Points Would Include:


Chicago Board of Trade:From Failure to Success in Managing Information Technology

Case 1

2- What were several key management changes and initiatives that Bill Farrow implemented to make IT successful at CBOT? Explain the impact of each on CBOT.


New Senior Vice President of Technology Solutions

Inventory of IT Taken by

Documenting Systems

Technical Architecture

Vendor Relationships, Service-Level Agreements, and Evaluated Security Systems

Built New Relationships, Used Brainstorming

Chicago Board of Trade:From Failure to Success in Managing Information Technology

Case 1

Discussion Points Would Include:


Replaced Ancient Tandem Systems

With Sun Unix Servers

And Oracle Databases

Improved Quality Assurance

Established a Project Management Office

Brought ROI to Project Agendas

Replaced IT Personnel with Professionals

Chicago Board of Trade:From Failure to Success in Managing Information Technology

Case 1

Discussion Points Would Include:


Chicago Board of Trade:From Failure to Success in Managing Information Technology

Case 1

3- Does the experience of CBOT prove that “IT is a business function that needs to be managed like any other business function?” Why or why not?

Return to

Chapter 12

Return to

Cases Page


Recognition of Business Skills from This Course/Work Experience

What Business Skills would Fit this Organization in This Industry?

Chicago Board of Trade:From Failure to Success in Managing Information Technology

Case 1

Discussion Points Would Include:

Return to

Chapter 12

Return to

Cases Page


Recognition of Business Skills from This Course/Work Experience

What Business Skills would Fit this Organization in This Industry?

Develop Pros/Cons about Applying Business Skills to IT

Chicago Board of Trade:From Failure to Success in Managing Information Technology

Case 1

Discussion Points Would Include:

Return to

Chapter 12

Return to

Cases Page


Global Exchange Servicesand Allstate: Challenges and Solutions in Offshore Systems Development

Case 2

1- What are the business benefits and limitations of sending software development offshore? Use the companies in this case as examples.

Return to

Chapter 12

Return to

Cases Page


GXS Estimates Savings of $16 million Over 3 years

Potential to Lose Control Over

Foreign Technology Workers

Quality of IT Projects Thousands of Miles Away

Using “Offshore-Insourcing” Model

Allstate Using Centers Overseas

Global Exchange Servicesand Allstate: Challenges and Solutions in Offshore Systems Development

Case 2

Discussion Points Would Include:


Global Exchange Servicesand Allstate: Challenges and Solutions in Offshore Systems Development

Case 2

2- What is the business value and limitations of the insourcing model of offshore software development? Use GSX and Allstate as examples.


Foreign Workers Receive Same Training

Use the Same Software Development Tools

Adhere to the Same Business Processes

Employee Cost Savings

Retain Critical Business Knowledge/Intellectual Capital

Global Exchange Servicesand Allstate: Challenges and Solutions in Offshore Systems Development

Case 2

Discussion Points Would Include:


Inform U.S.-Based Workers of Critical Plans for IT Projects

Economics of Local Environment are

Sustainable, and That There’s Talent

Quality Workforce and Those Things Won't Change

Global Exchange Servicesand Allstate: Challenges and Solutions in Offshore Systems Development

Case 2

Discussion Points Would Include:


Global Exchange Servicesand Allstate: Challenges and Solutions in Offshore Systems Development

Case 2

3- Should U.S companies send their software development and other IT functions offshore? Why or why not?

Return to

Chapter 12

Return to

Cases Page


Cost Savings

Quality Assurance

Stability of Foreign Economy

Retain Critical Business Knowledge and Intellectual Capital

Global Exchange Servicesand Allstate: Challenges and Solutions in Offshore Systems Development

Case 2

Pros & Cons For Going Offshore:

Return to

Chapter 12

Return to

Cases Page


Cost Savings

Quality Assurance

Stability of Foreign Economy

Retain Critical Business Knowledge and Intellectual Capital

Employee Relations

Global Exchange Servicesand Allstate: Challenges and Solutions in Offshore Systems Development

Case 2

Pros & Cons For Going Offshore:

Return to

Chapter 12

Return to

Cases Page


Bio-ERA and BurlingtonNorthern Santa Fe: The BusinessCase for Global CollaborativeSoftware Development

Case 3

1- How is the open source model affecting the development of application software for business?

Return to

Cases Page


Permits Radically Different Way to Build Software

Foreshadows Future of Distributed Global Collaborative Model of Software Development

Bio-ERA and Burlington Northern Santa Fe Avoided Tasks of Software Development

Companies Concentrate Their Core Business by

Forming Just-in-Time Teams

Used Outsourced Talent for Software Development

Bio-ERA and BurlingtonNorthern Santa Fe: The BusinessCase for Global CollaborativeSoftware Development

Case 3

Discussion Points Would Include:


Bio-ERA and BurlingtonNorthern Santa Fe: The BusinessCase for Global CollaborativeSoftware Development

Case 3

2- What are the business benefits of the global or collaborative approach to software development? Use the companies in this case as examples.


Companies Outsource Software Development and Run their Core Business

Company uses Global-Collaborative Approach for Software Development “Fast and Cheap”

Bio-ERA and BurlingtonNorthern Santa Fe: The BusinessCase for Global CollaborativeSoftware Development

Case 3

Discussion Points Would Include:


Bio-ERA and BurlingtonNorthern Santa Fe: The BusinessCase for Global CollaborativeSoftware Development

Case 3

3- What are several potential challenges or limitations that might arise when using a global collaborative approach to software development? How can companies address such challenges?

Return to

Cases Page


IT Manager Must Understand Software Development

IT Manager Must have Experience Managing a Distributed Team and a Platform

Companies Must Ensure U.S.-based Talent for Any Ad-hoc Jobs

Bio-ERA and BurlingtonNorthern Santa Fe: The BusinessCase for Global CollaborativeSoftware Development

Case 3

Discussion Points Would Include:

Return to

Cases Page


IT Manager Must Understand Software Development

IT Manager Must have Experience Managing a Distributed Team and a Platform

Companies Must Ensure U.S.-based Talent for Any Ad-hoc Jobs

Company Must Create “Executive Dashboard” to Monitor Software Development

Bio-ERA and BurlingtonNorthern Santa Fe: The BusinessCase for Global CollaborativeSoftware Development

Case 3

Discussion Points Would Include:

Return to

Cases Page


Avon Products and Guardian Life Insurance: Successful Management of IT Projects

Case 4

1- What are several possible solutions to the failures in IT project management at many companies described at the start of this case? Defend your proposals.

Return to

Cases Page


Good Business-Case Methodology Leads to Good Project Management

Use All Analytical/Financial ROI Tools Against Each IT Projects

Use of “Governance” (Hard-Dollar/Metrics-Oriented Processes) for Incorporating “Soft” Costs and Benefits into Decisions

Avon Products and Guardian Life Insurance: Successful Management of IT Projects

Case 4

Discussion Points Would Include:


Avon Products and Guardian Life Insurance: Successful Management of IT Projects

Case 4

2- What are several key ways that Avon and Guardian assure that their IT projects are completed successfully and support the goals of the business?


Avon Uses Analytical/Financial ROI Tools Against IT Projects

Avon Uses an Investment-Tracking Database

Guardian Uses “Governance”

Guardian Incorporates “Soft” Costs and Benefits

Guardian Monitors IT Projects

Avon Products and Guardian Life Insurance: Successful Management of IT Projects

Case 4

Discussion Points Would Include:


Avon Products and Guardian Life Insurance: Successful Management of IT Projects

Case 4

3- If you were the manager of a business unit at Avon or Guardian, what are several other things you would like to see their IT group do to assure the success of an IT project for your business unit? Defend your suggestions.

Return to

Cases Page


Include Concepts Drawn From the Text and From Other Business Courses. Draw upon Other Classes and Perhaps From Work Experiences to Integrate Learning Experiences Through This Case.

Avon Products and Guardian Life Insurance: Successful Management of IT Projects

Case 4

Discussion Points Would Include:

Return to

Cases Page


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