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Managing IT in an E-World

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    1. CHAPTER 1 Managing IT in an E-World

    4. INFORMATION TECHNOLOGY COMPUTER TECHNOLOGY (HARDWARE & SOFTWARE) for PROCESSING & STORING INFORMATION COMMUNICATION TECHNOLOGY for TRANSMITTING INFORMATION Network *

    5. The Importance of IT By 1996, IT, including computing and telecommunication, become the largest U.S. industry It generating revenues of $866 billion and creating 0.2 percent of the nations goods and services. By 2000, one out of 3 capital expenditure dollars was being spent on IT purchases.

    6. Information Resource Management Is different from: Information technology Computer technology Refers to the activities of Investing in and managing people Managing technology and data Establishing policy regarding these assets use.

    8. Information Resource Management (Managing IT Assets) Technology Planning, building, and operating A computer infrastructure A data communications infrastructure Relationship (Management) A working climate Human (People; Staff)

    9. Why Information Resource Management? I. Systems Development Problems II. Changing Business Environment: Internet and E-World Enterprise Resource Planning (ERP) systems III. Using IT as a competitive weapon

    10. I. Systems Development Problems Two out of every eight large software systems under development are ultimately canceled. Most exceed their schedules. Most large systems do not function as intended or are never used.

    11. Department of Motor Vehicles in California (DMV) The schedule expanded and costs were more than six times the original estimate. The DMV canceled the seven-year project after spending more than $44 million.

    12. Allstate Insurance Project began in 1982 and scheduled for completion in 1987. Projected cost : 8 millions Project finished in 1993. Final cost: 14 times the original costs (about 112 millions).

    13. II. Changing Business Environment: Competing In An E-World What is the E-WORLD? USE OF WORLD WIDE WEB CHANGED RULES FOR SUCCESSFUL BUSINESS KEY INDICATOR OF BUSINESS HEALTH Enterprise Resource Planning (ERP) systems *

    14. INFORMATION TECHNOLOGY TRENDS IN AN E-WORLD COMPUTER TECHNOLOGY: Portable technology (laptop and handheld computers, wireless communications) COMPUTER SOFTWARE: Software packages (Office XP, ERP packages, Web-related packages, etc.) TELECOMMUNICATIONS/NETWORKING: Global, mobile reach, cable modem, and digital subscriber lines (DSL) *

    15. III. COMPETING IN AN E-WORLD TRADITIONAL WAYS: COST: Low cost producer of good or service DIFFERENTIATION: Enhancing perception of product or service STRATEGIC INFORMATION SYSTEM (SIS): Sales information, just-in-time materials, better cash management *

    16. SABRE Reservation System of American Airlines An inter-organizational system for airline flight reservation for AA and its competitors, accessible to large and small travel agencies. By 2000, SABRE had evolved into a self-service reservation system via the Internet.

    17. COMPETING IN AN E-WORLD NEW WAYS: USING INTERNET for COST EFFICIENCIES MASS CUSTOMIZATION Enabled a company to efficiently manufacture not just the same products in large quantities but customized products. GLOBAL REACH *

    18. Example: Dell Computer Mass customization Developed software to electronically capture a customer request, translated the order data into a design with these components, and then electronically summon the right resources to fulfill the order. Choiceboard: a type of interactive online computer systems

    19. WORKING IN AN E-WORLD KNOWLEDGE WORKERS: Information & knowledge are raw materials, as well as product of their work. Knowledge workers have become increasingly dependent on information technology. Desktop and Internet are necessary items for knowledge workers. TELECOMMUTER: Workers located outside regular offices, commute via telecommunications lines. *

    20. WORKING IN AN E-WORLD TEAMWORK: Empowered groups able to solve problems, make operational decisions using computer tools such as e-mail, groupware ANYTIME, ANYWHERE ACROSS ORGANIZATIONAL BOUNDARIES Large companies in automobile industries (Ford, GM) and mass retailing industry (Wal-Mart) developed proprietary applications to enable just-in-time responses by their suppliers. *

    21. WORKING IN AN E-WORLD VIRTUAL ORGANIZATIONS & FREE AGENTS: Temporary alliances between organizations & individuals. Free agent has special IT skills, works as independent contractor free from organizational politics

    22. Outsourcing Many computer programming jobs have been outsourced to programmer in other countries (India, China, etc.)

    23. WORKING IN AN E-WORLD SOCIAL IMPACTS: JOBS: Computers are cost-efficient, superior at analyzing data, add to managers abilities to make decisions INDIVIDUAL PRIVACY: Need to maintain privacy of employees, customers; requires education about policies and monitoring practices *

    24. TELECOMMUNICATIONS/NETWORKING: Information Security Wireless Communications

    25. ROLE OF INFORMATION SYSTEMS ORGANIZATION FIVE ERAS: ACCOUNTING ERA (1950-1960s) OPERATIONAL ERA (mid 1960s) INFORMATION ERA (late 1970s-mid 1980s) NETWORK ERA (mid 1980s on) INTERNET ERA (mid 1990s on) *

    26. Human Resources in IT IS specialists: IT leaders (chief information officer) Other IS managers IS professionals Non-IS specialists: Business managers End users *

    27. Chief Information Officer (CIO) The leader of the IS department Duties: Strategic Planning Competitive advantage Organizational learning Other technological and policy issues

    28. An Example of CIO Peter Solvik, CIO, leads Ciscos efforts in e-sales and supply chain management, spending half his time with partners. Cisco has slashed $1.5 billions in costs by using Internet technologies for everything from human resources to manufacturing

    29. Other IS managers for IS activities such as data centers, new applications, planning, implementing IT solutions.

    30. Other IS professionals: Programmers Software engineers Systems analysts Database developers Web developers Local area network administrators Technical support providers *

    31. THE ROLE OF BUSINESS MANAGERS: User of IT to run business better. May serve as: Member of IT steering committee Sponsor or owner of new project Process or functional expert on project team Participant in planning, executing rollout of new application *

    32. END-USER Both IS and non-IS specialists Must become IT-knowledgeable Can be members of IT project teams Evaluate applications from end-user perspective *

    33. Case Study: Midsouth Chamber of Commerce What is the solution for MSCC?