Enterprise and Global Management of e-business Technology

Transcription

1 Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise Eleventh Edition James A. O Brien 1 C h a p t e r 12 Enterprise and Global Management of e-business Technology Eleventh Edition 2 Chapter Objectives Identify several ways that information technologies have affected the job of managers in e-business companies. Explain how problems of information system performance can be reduced by the involvement of business managers in IS planning and management. Identify the seven major dimensions of the e-business organization and explain how they affect the success of e- business companies McGraw-Hill Companies 1

2 Eleventh Edition 3 Chapter Objectives Identify each of the three components of e-business technology management and use examples to illustrate how they might be implemented in e-business enterprise. Identify several cultural, political, and geoeconomic challenges that confront managers in the management of global e- business technologies. Eleventh Edition 4 Chapter Objectives Explain the effect on global e-business strategy of the trend toward a transnational business strategy by international business organizations. Identify several considerations that affect the choice of IT applications, IT platforms, data access policies, and systems development methods by a global e-business enterprise McGraw-Hill Companies 2

3 Eleventh Edition 5 Managing e-business Technologies Information Technology Developments E-Business Agility, Flexibility Business Strategies Supply Chain Total Quality Global and enterprise computing; intranets IT infrastructure Customer Value Responsiveness Accountability Lower costs Suppliers Business Partners National Gobel in Brief NABEL, 3/7/2003 Products : TV, Audio, Refrigerator, Air Conditioner, Washing Machine, Electric Fan, Electric Iron, Pump, Car Audio, Pants Press Brand : Established : July 27, 1970 Capital : US$ 23 Million Share holders : Matsushita Electric Industrial Co. Ltd. (60%) Gobel International (40%) Employees : 3,204 (April 2003) Sales (2002) : Rp. 1.8 Trillion (27% export) Audio Factory Air Conditioner Factory Refrigerator Factory 2002 McGraw-Hill Companies 3

4 Global Competitiveness NABEL, 3/7/2003 Regulation Government Incentive Certification Domestic Market ISO CERT. ANTI DUMPING ENERGY SAVING RECYCLING Global : WTO Vision Policy Manufacturer Competitiveness HIGH QUALITY COST SPEED GLOBAL MODEL University Apprenticeship Research Export Market Regional : Sub-Regional : AFTA Eleventh Edition 8 The e-business Organization Organization Structure Leadership People Target and Culture Coherence Potential Payback Knowledge Risk Alliances What Primary Changes? Governance Traditional Business Organization Quality Improvement Hierarchical Incrementally Improving Existing Processes Centralized focus Any Vertical Process decision making Individuals rewarded E-Organization Business Reengineering Horizontal, networked Radically Redesigning Business Systems Everyone is a leader Strategic Delegated Business authority Processes Collaboration rewarded 10%-50% Internal relevance Improvements 10-Fold Customer Improvements relevance Low Individualistic Ally with distant partners Complement current gaps Same Jobs - More Efficient IT and Work Simplification Top-down Institutional High Ally with competitors, customers IT and and suppliers Organizational Big Create Job new Cuts; value New Jobs; Major Job Redesign Distributed 2002 McGraw-Hill Companies 4

5 The Role of Information Technology NABEL, 3/7/2003 A company that cannot change the way it thinks about Information Technology cannot re-engineer Distruptive Technology Shared databases Telecommunications networks Expert Systems Decision Support Tools (database access, modeling software) Old Rule Information can appear in only one place at one time Business must choose between centralization and decentralization Only expert can perform complex work Managers make all decisions New Rule Information can appear simultaneously in as many places as it is needed Business can simultaneously reap the benefits of centralization and decentralization A generalists can do the work of an expert Decision-making is part of everyone s job Source: Reengineering The Corporation - Michael Hammer & James Champy Eleventh Edition 10 Example of organizational structure of an e-business enterprise E-commerce Consumer Products Shared IT Support Services Global Executive Core Industrial Products Shared Administrative Support Services Financial Services 2002 McGraw-Hill Companies 5

6 Eleventh Edition 11 e-business Technology Management e-business Technology Management Managing e-business IT Strategy Managing Application Development & Technology Managing the IT Organization Eleventh Edition 12 IT Strategic Planning Management Customer and Business Value Visioning More Questions Key Insights E-Business Strategies and Models Feedback Key Objectives E-Business IT Strategies and Architecture Feedback Priorities E-Business Application Development & Deployment 2002 McGraw-Hill Companies 6

7 Eleventh Edition 13 Benefits Derived from Company IT Planning Reduced support costs Reduced complexity Expertise portability Interoperability Volume discounts Reduced training costs Information sharing Eleventh Edition 14 Managing the IS Function Application Development Systems Analysis Systems Design Programming System Maintenance Human Resource Management IS Recruiting Training Retainment Programs Support Staff IT Operations Management Network Management Production Control Product Support Systems Performance 2002 McGraw-Hill Companies 7

8 Eleventh Edition 15 Global e-business Technology Management Global IT Management Cultural, Political, and Geoeconomic Challenges e-business/it Strategies e-business Application Portfolios Internet-based Technology Platforms Data Resource Management Systems Development Eleventh Edition 16 Global e-business Strategies International -Autonomous operations -Region Specific -Vertical Integration -Specific Customers -Captive Manufacturing Global -Global Sourcing -Multiregional -Horizontal Integration -Some transparency of customers and production Transactional -Virtual e-businesses -World Markets -Transparent Manufacturing -Global Supply Chain -Global Alliances 2002 McGraw-Hill Companies 8

9 Eleventh Edition 17 Business Drivers for Global e-business Global Customers Global Products Global Operations Business Drivers for Global e-business Global Resources Global Collaboration Eleventh Edition 18 Global IT Platform Issues Global Infrastructure Global Data Access Regulated Access Transborder Data Flows Global Systems Development Local vs. Global Requirements Multilingual Needs Standardization of Data Scheduling Global Activities Global Computing Facilities Hardware acquisitions Import restrictions Software compatibility Local service Balancing workloads Lack of spare parts 2002 McGraw-Hill Companies 9

10 Eleventh Edition 19 Chapter Summary e-business technologies are changing the distribution, relationships, resources, and responsibilities of managers. High-quality information system performance is dependent on extensive and meaningful management and user involvement in the governance and development of IT applications. The organizational structure and roles of e- business companies are undergoing major change as they strive to become customerfocused. Eleventh Edition 20 Chapter Summary (cont) Managing IT in an e-business has three major objectives: Managing the joint development and implementation of e-business IT strategies. Managing the development of e-business applications and the research and implementation of new technologies. Managing IT processes, professionals, and subunits within the company McGraw-Hill Companies 10

11 Eleventh Edition 21 Chapter Summary (cont) Managing global e-business technologies includes: Dealing with cultural, political, and geoeconomic challenges posed by various countries. Developing appropriate business and IT strategies. Developing a portfolio of global e-business and e-commerce applications and an Internet-based technology platform to support them. Eleventh Edition 22 Chapter Summary (cont) Many businesses are becoming global companies and moving towards transnational e-business strategies in which they integrate the global business activities of their subsidiaries and headquarters McGraw-Hill Companies 11