Managing Information. Real World Cases KEY TERMS BACK NEXT. Managing

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1 and Data Systems Enterprise and of and Data Systems Learning Objectives 1. Identify each of the three components of information technology management and use examples to illustrate how they might be implemented in a business. 2. Explain how failures in management can be reduced by the involvement of business managers in IS planning and management. 3. Identify several cultural, political, and geoeconomic challenges that confront managers in the management of global information technologies. 4. Explain the effect on global business strategy of the trend toward a transnational business strategy by international business organizations. 5. Identify several considerations that affect the access choice of applications, platforms, data access policies, and systems development methods by a global business enterprise. Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems and of Need for Managers IS and Technologies Real World Case 1-1 Chicago Board of Trade: From Failure to Success in Click to go to Case 1 and Data Systems The Major Components of and Strategy Application and The Organization and Infrastructure CEO & CIO CIO & CTO CIO & Managers Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc. 12-4

2 and Data Systems Comparing Approaches and Data Systems Avnet Marshall: Differs from Conventional Hires Professionals Who Can Integrate With Organized Workgroups Around e- Initiatives Focused on e-commerce Services Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems CEO & CIO Co- Adaptation Process Strategy Resource Customer and Value Visioning Key Insights Key Objectives Priorities and Models and Architecture More Questions Feedback Feedback Application & Deployment and Data Systems Architecture Platform Data Resources Applications Architecture Organization Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc. 12-8

3 and Data Systems Architecture Avnet Marshall: e- e Conventional Avnet Marshall s and Data Systems the IS Function Organizing Centralization Downsizing Decentralization Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems the IS Function Group Alliances and support Group Marketing and Visibility Initiatives Group CEO CIO Electronic Commerce and Supply Chain and Support Group Computer/ Communication Operations Group Enterprise Integration and Support Group and Data Systems the IS Function Fireman s s Fund and FMC Corp: Outsourcing 10 Year $380 Million Outsourcing Agreement With CGI - Montreal Service Support Functions for 80 U.S. Locations 300 Employees Moved to CGI Resulted in Leaner Entity with 21% Saving in Infrastructure Costs FMC Also Outsources and Realizes Substantial Savings Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

4 and Data Systems the IS Function Application IS Operations System Performance Monitors Chargeback Systems Process Control Human Resources of The CIO and Other Executives and Data Systems the IS Function Example Enterprise Portal Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems the IS Function Top Jobs: Requirements and Compensation Chief 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 Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems the IS Function the IS Function Chief Officer (CTO) User Services Center Copyright 2005, McGraw-Hill/Irwin, Inc

5 and Data Systems Failures in PeopleFirst Finance: Failure of a CRM Project Installing CRM Systems Can be Perilous Multiple Installation Tries Often Needed PeopleFirst Example Experienced Difficulties Getting Was Like Playing Whack-a- Mole Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems Failures in Involvement and Governance Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems International Dimensions of Modern Benefits and Challenges of Offshore Systems Real World Case 2-2 Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Click to go to Case 2 and Data Systems The Major Dimensions of e-e Application Portfolios Cultural, Political, and Geoeconomic Challenges Internet-Based Data Resource Systems Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

6 and Data Systems Cendant Corp.: Typical Kind of Challenge Need to Understand the Workings of Each Local Group Focus on Leveraging Their Cultures and Talents Peers Often Put Together to Experience Synergy and Data Systems Political Challenges Geoeconomic Challenges Cultural Challenges Competition for Talent Applications Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems Alternative and Data Systems Alternative Implementations Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

7 and Data Systems Drivers and Data Systems TRW Inc.: 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 Issues is an Advantage Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems and Data Systems Citibank: Consolidating $100 Million Firm Rolling Out Software System with a Single Interface through 2004 Single System Customized for Each Country s Needs Flexcube Software Automates Much Balancing Activities Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

8 and Data Systems The Internet as a Platform and Data Systems Data Access Issues Transborder Data Flows (TDF) Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems Consumer Privacy Agreements and Data Systems Council of Europe: Cybercrime Treaty Fear That Cybercrime Treaty Will Affect Liability and Security Anxiety Over Duplication of Other Agreements Primary Objective Was to Break Bottlenecks in Cyberinvestigations Differences of Opinion are Real Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc

9 and Data Systems Internet Access Issues and Data Systems Systems Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc and Data Systems Systems DHL Worldwide: System 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 and Data Systems Summary Failures in and and Issues Copyright 2005, McGraw-Hill/Irwin, Inc Copyright 2005, McGraw-Hill/Irwin, Inc