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Global means: Having a presence in other countries Standardization International focus: reduction of ties to any one country and community PowerPoint PPT Presentation


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Global means: Having a presence in other countries Standardization International focus: reduction of ties to any one country and community - Minimization of country-oriented images and values Having acquisitions or alliances in other countries .

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  • Global means:

  • Having a presence in other countries

  • Standardization

  • International focus: reduction of ties to any one

  • country and community

  • - Minimization of country-oriented images and values

  • Having acquisitions or alliances in other countries


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Catalysts for Global Software Teams:

1. Specialized Talent

Send the work to where the resources are

2. Mergers and acquisitions

Enter a foreign market quickly

3. Reduction in cost

Reduce labor costs offshore

4. Global presence

Participate in global markets

5. Reduction in time-to-market

Follow-the-sun development

6. Proximity to the customer

Establish an ongoing relationship with key customers


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Five forces that make Global IT management very difficult:

1. Geographic dispersion

2. Loss of communication richness

3. Coordination breakdown

4. Loss of “teamness,” the sense of belonging to a team

5. Cultural differences


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Dispersion

Global Software Teams Problems

30

20

10

10

Probability of communication

at least once a week

25 50 100

Separation distance (in meters)


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Loss of Communication Richness

FACE-TO-FACE

SENSUALNESS

VIDEO CONFERENCING

TELEPHONE

EMAIL

US MAIL

INTERACTIVENESS / IMMEDIACY


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Coordination Breakdown:

Increasing Complexity with Larger Teams

2 = 1

4 = 6

6 = 15


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Coordination Breakdown:

Team Size / Number of Relationships

NUMBER OF

COMBINATIONS =

n * (n - 1) / 2

n = size of the project team


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Loss of Teamness

TO BE A TEAM YOU MUST HAVE:

• SHARED GOALS

• SHARED CULTURE

• SHARED PERSONAL RELATIONSHIPS


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Loss of Teamness

TEAM BUILDINGTRUST – CLASSIC DEVELOPMENT


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Loss of Teamness

Comparison of Behavior/Strategies of High

and Low Trust Teams


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YOUR EXPERIENCE

IS THE CLASSIC MODEL OF TRUST CONSISTENT WITH YOUR

EXPERIENCE AS A TEAM MEMBER – AT DEPAUL OR ELSEWHERE . . .

TOM PETERS (IN SEARCH OF EXCELLENCE) SAID:

A CUSTOMER RELATIONSHIP IS STRONGER AFTER A PROBLEM

HAS BEEN HANDLED WELL THAN IF NO PROBLEM HAD OCCURRED.

IS THIS CONSISTENT WITH YOUR EXPERIENCE?


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FACE-TO-FACE MAINTAINS/RENEWS TRUST

MILESTONE MEETING / CELEBRATION

SHARE THE VISION

WHAT’S THE GOAL OF THE PROJECT AND HOW DOES EACH PART OF THE TEAM FIT IN

SOCIAL

GET TO KNOW ABOUT EACH OTHER MORE / AGAIN.

BUILD SHARED EXPERIENCES.


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CULTURE: BELIEF/VALUES/COMMUNICATION

Reward

BELIEFS

VALUES

COMMUNICATION

Social organization

Nonverbal communication

Emotional response

Competition

Independence

Risk-taking

Group harmony

Cooperation

Age-seniority

Information

Devotion

Interrelationship

Family harmony

Formality/status

Life/Death

Nature

History

Religion


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People who speak:

3 languages:trilingual

2 languages:bilingual

1 language:American


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In Heaven,

The Police are British,

The Cooks are French,

The Lovers are Italian, and

It’s all Organized by the Germans

In Hell,

The Police are French,

The Cooks are British,

The Lovers are German, and

It’s all Organized by the Italians.


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CULTURE AND SUBCULTURES

NATIONAL CULTURE

PROFESSIONAL CULTURE

CORPORATE CULTURE

FUNCTIONAL

CULTURE

RELIGION?

TEAM

CULTURE

RACE?

GENDER?


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DIMENSIONS OF IT CULTURE – Exercise

Rank these countries (USA, Japan, Hong Kong, Germany) and these characteristics from highest to lowest.

• Revering hierarchyExample:

USA

Japan

Hong Kong

Germany

• Individualism/collectivism

• Work-life/Personal-life

• Risk avoidance

• Long term orientation


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DIMENSIONS OF IT CULTURE and IT

• Revering hierarchy

‒Organization of the IT Department

• Individualism/collectivism

‒ IT Reward Systems

• Work-life/Personal-life

‒ Online, Oncall, 24x7

• Risk avoidance

‒ Quality v. schedule

‒ Technological change

• Long term orientation

‒ Technological change


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FACE-TO-FACE BUILDS TRUST

KICK-OFF MEETING

SHARE THE VISION

WHAT’S THE GOAL OF THE PROJECT AND HOW DOES EACH PART OF THE TEAM FIT IN

METHODOLOGY

WHAT METHODOLOGY [PROCESS/FRAMEWORK] WILL WE USE

COMMUNICATION

HOW SHOULD THE TEAM COMMUNICATE

CULTURE

IN WHAT WAYS ARE WE DIFFERENT AND IN WHAT WAYS ARE WE THE SAME

SOCIAL

GET TO KNOW ABOUT EACH OTHER. BUILD SHARED EXPERIENCES.

IF YOU TELL PEOPLE CLEARLY WHAT YOU WANT YOU HAVE A MUCH BETTER CHANCE OF GETTING IT THAN IF YOU DON’T.


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OUTSOURCING


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Outsourcing

• a management tool (a tool makes work easier and/or more productive)

• emphasizes what is to be done, rather than how or who

• task-level management responsibilities rest with supplier

• work takes place mainly/entirely off site

• supplier provides all resources

• employee relations managed by supplier

• typically paid by performance not time


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  • OUTSOURCING DRIVERS

  • • RE-FOCUS ON “CORPORATE CORE COMPETENCIES”

  • - SHIFT IN BUSINESS STRATEGIES AWAY FROM DIVERSIFICATION

  • - SENIOR EXECUTIVES VIEW IT AS A NON-CORE ACTIVITY

  • • PERCEPTION OF IT AS A COST BURDEN

    • UNCERTAINTY ABOUT IT’S VALUE

    • IT FAILED TO DELIVER THE PROMISE OF COMPETITIVE ADVANTAGE


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Outsourcing Drivers

• Cost savings (especially offshore)

• Outside the core business

• Functionally discrete

• Lack of internal skills

• Political compromise


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FACTORS FAVORING IT OUTSOURCING

• TECHNOLOGY CHANGE EXPANDS OPTIONS

- MANY INFORMATION PRODUCTS/SERVICES BECOME COMMODITIES

- SEPARATION OF MANAGEMENT, OPERATION, AND DELIVERY OF INFORMATION SERVICES

- FIRMS CAN NOT COPE WITH RAPID ADVANCEMENT OF TECHNOLOGY AND SKILL REQUIREMENTS

• CHANGES IN THE MANAGEMENT OF IT

- DIFFICULTY IN MEASURING BENEFITS FROM AN IT INVESTMENT AND ITS COST

CIOs TAKING A BUSINESSVIEW, NOT JUST A TECHNICAL VIEW

DECENTRALIZATION OF THE IT ORGANIZATION

• INDUSTRY LEVEL CHANGES

- RAPID TECHNOLOGICAL CHANGE CREATED OVER CAPACITY IN CERTAIN FUNCTIONS

- THE NUMBER OF OUTSOURCING VENDORS INCREASED OFFERING PRICE COMPETITIVE SERVICES

- OUTSOURCING VENDORS HAVE FLEXIBILITY IN RECRUITING AND REWARDING TECHNICAL TALENT

• FIRM LEVEL CHANGES

- CORPORATE IMPERATIVE TO REDUCE COSTS

- GLOBALIZATION OF BUSINESS CREATES NEW NEEDS


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3 CATEGORIES OF OUTSOURCING

• TOTALOUTSOURCE ALL IT

• SELECTIVEOUTSOURCE SELECTED ACTIVITIES

• TRANSITIONALOUTSOURCE “LEGACY” SYSTEMS WHILE

WORKING ON NEW SYSTEMS


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TOTAL OUTSOURCING

ADVANTAGES

-CONSISTENCY AND STABILITY WITH THE SAME VENDOR FOR MANY ACTIVITIES

-LOWER TRANSACTION COSTS

DISADVANTAGES

-VULNERABLE TO VENDOR MANIPULATION OF PRICING AND MAINTENANCE COSTS

-VULNERABLE TO LOSS OF VENDOR SUPPORT

----------------------------------------------------------------------------------------------------

SELECTIVE OUTSOURCING

ADVANTAGES

-SELECT BEST-OF-BREED FOR AN ACTIVITY

-CREATE A COMPETITIVE ENVIRONMENT

-FLEXIBLE; ADAPT TO CHANGE

-CAPITALIZE ON ORGANIZATIONAL LEARNING

-LESS RISKY THAN TOTAL OUTSOURCING

DISADVANTAGES

-MULTIPLE VENDORS TO MANAGE

-HIGHER TRANSACTION COSTS ASSOCIATED WITH MULTIPLE EVALUATIONS AND

CONTRACT NEGOTIATIONS


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TRANSITIONAL OUTSOURCING

ADVANTAGES

-OUTSOURCE LEGACY SYSTEMS MAKES STAFF FREE TO FOCUS ON NEW SYSTEMS

-LEGACY SYSTEMS ARE MATURE AND CUSTOMERS AND VENDORS UNDERSTAND

REQUIREMENTS AND CAN WRITE A SOUND CONTRACT

DISADVANTAGES

-VULNERABLE TO VENDOR MANIPULATION OF PRICING AND MAINTENANCE COSTS

-VULNERABLE TO LOSS OF VENDOR SUPPORT IF NEW SYSTEM IS DELAYED


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  • MEASURES OF OUTSOURCING SUCCESS

    • TARGETED COST SAVINGS REALIZED OF BETTER

  • SERVICE LEVELS MAINTAINED OR IMPROVED

  • USER MANAGEMENT SATISFIED

  • FEW CLIENT/VENDOR DISPUTES

  • VENDOR REPRESENTATIVES RESPONSIVE/ATTENTIVE

  • OUTCOMES MATCH OBJECTIVES

  • LIKELY CONTRACT RENEWAL


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    Popular Outsourced Activities

    • Application development

    • Data center

    • Desktop/personal computers

    • Network (e.g., LANs, WANs)

    • Support services/help desk

    • Training


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    OUTSOURCING PITFALLS

    • Cumbersome transition into and coming out of an outsourcing relationship.

    • Incomplete or vague contracts.

    • Lack of an infrastructure for supporting an outsourcing relationship.

    • Negotiating a contract with an unsuitable vendor.

    • Poor communications with vendors.


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    PERSISTENT OUTSOURCING PROBLEMS

    • Cultural differences that lead to miscommunications and a lack of trust

    • Time zone differences

    • Poor English language skills

    • Strange foreign work-hour regulations

    • High employee turnover in India

    • Difficulties in arranging visas for foreign professionals to work in the United States

    • An offshore unit’s lack of domain knowledge

    • An unreliable telecommunications infrastructure.


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    Outsourcing should not occur if:

    • the service is mission critical

    • the service can be done more effectively in-house

    • outsourcing cannot provide a savings of five percent or more

    • fear exists over losing controls.


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    THE OUTSOURCING PROCESS


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    STAGES OF OUTSOURCING


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    Offshore Outsourcing Readiness vs. Attractiveness

    Ready but not attractive

    Ready and attractive

    High

    Offshore Readiness

    Not attractive and not ready

    Attractive but not ready

    Low

    Offshore Attractiveness

    Low

    High


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    Who is Henri Fayol?

    A French engineer who:

    Defined the functions of management:

    • Planning • Organizing • Leading • Controlling

    And identified 14 principles of management:

    • Specialization/division of labor

    • Authority with responsibility

    • Discipline

    • Unity of command

    • Unity of direction

    • Subordination of special interests

    • Remuneration

    • Centralization

    • Chain / Line of Authority

    • Order

    • Equity

    • Lifetime jobs (for good workers)

    • Equity

    • Esprit de corps


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