James A. O’Brien
Introduction to Information Systems
Tenth Edition
1
Chapter
12
Enterprise
and Global Management
of E-Business Technology
Irwin/McGraw-Hill
James A. O’Brien
2
Introduction to Information Systems
Tenth Edition
Chapter Objectives
•
Identify several ways information technology has affected the jobs of
managers in E-Business companies.
•
Explain how problems of information systems performance can be
solved 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.
Irwin/McGraw-Hill
James A. O’Brien
3
Introduction to Information Systems
Tenth Edition
Chapter Objectives
•
Identify each of the three components of E-Business technology management and use
examples to illustrate how they might be implemented in an E-Business enterprise.
•
Identify several cultural, political, and geoeconomic challenges that confront managers in the
management of global E-Business technologies.
•
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 access choice of IT applications, IT platforms,
data policies, and systems development methods by a global E-Business enterprise.
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James A. O’Brien
4
Introduction to Information Systems
Tenth Edition
Managing E-Business Technologies
Information Technology Developments
Customer Value
E-Business
•
•
•
•
•
•
•
Agility, Flexibility
Business Strategies
Supply Chain
•
Total Quality
intranets
•
Suppliers
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Global and enterprise
IT infrastructure
Business Partners
computing;
Responsiveness
Accountability
Lower costs
Introduction to Information Systems
James A. O’Brien
5
Tenth Edition
The E-Business Organization
Business Quality
Traditional Organization
Improvement
Business
E-Organization
Reengineering
Organization
Hierarchical
Structure
Horizontal, networked
Incrementally Improving
Leadership
People and
Existing
Existing Processes
Processes
Centralized focus
Radically Redesigning
Business
Business Systems
Systems
Everyone is a leader
Any Process
Vertical decision making
Target
Culture
Individuals rewarded
10%-50%
10%-50% Improvements
Improvements
Potential
Coherence
Internal relevance
Strategic Business
Delegated authority
Processes
Processes
Collaboration rewarded
10-Fold
10-Fold Improvements
Improvements
Customer relevance
Payback
Knowledge
Individualistic
Low
Low
Risk
Alliances
Ally with distant partners
Complement current gaps
Same
Same Jobs
Jobs -- More
More Efficient
Efficient
What
Changes?
Primary
Governance
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IT and Work Simplification
Top-down
Institutional
High
High
Ally with competitors, customers and suppliers
IT and
Create new
valueOrganizational
Big
Big Job
Job Cuts;
Cuts; New
New Jobs;
Jobs;
Major
Major Job
Job Redesign
Redesign
Distributed
Introduction to Information Systems
James A. O’Brien
6
Tenth Edition
E-Business Technology Management
E-Business
E-Business
Technology
Technology
Management
Management
Managing
Managing
E-Business IT
E-Business IT
Strategy
Strategy
Irwin/McGraw-Hill
Managing
Managing
Application
Application
Development &
Development &
Technology
Technology
Managing
Managing
the IT
the IT
Organization
Organization
James A. O’Brien
7
Introduction to Information Systems
Tenth Edition
IT Strategic Planning Management
Key Insights
Customer
Customer and
and
Business
Business
Value
Value Visioning
Visioning
E-Business
E-Business
Key Objectives
Strategies
Strategies and
and
Models
Models
More Questions
E-Business
E-Business IT
IT
Priorities
Strategies
Strategies and
and
Architecture
Architecture
Feedback
E-Business
E-Business
Application
Application
Development
Development &
&
Feedback
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Deployment
Deployment
Introduction to Information Systems
James A. O’Brien
8
Tenth Edition
Managing the IS Function
Application Development
•
•
•
•
Human Resource Management
•
•
•
•
Systems Analysis
Systems Design
Programming
System Maintenance
IT Operations Management
•
•
•
•
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Network Management
Production Control
Product Support
Systems Performance
IS Recruiting
Training
Retainment Programs
Support Staff
James A. O’Brien
9
Introduction to Information Systems
IT Management Governance
Strategic
IT
Planning
Technology
Planning
and
Development
User Services
Irwin/McGraw-Hill
Tenth Edition
James A. O’Brien
10
Introduction to Information Systems
Tenth Edition
Global E-Business Technology Management
Global
Global IT
IT
Management
Management
Cultural,
Cultural, Political,
Political,
and
and Geoeconomic
Geoeconomic
Challenges
Challenges
Business/IT
Business/IT
Strategies
Strategies
Irwin/McGraw-Hill
E-Business
E-Business
Internet-based
Internet-based
Data
Data
Application
Application
Technology
Technology
Resource
Resource
Portfolios
Portfolios
Platforms
Platforms
Management
Management
Systems
Systems
Development
Development
James A. O’Brien
11
Introduction to Information Systems
Tenth Edition
Global E-Business Strategies
International
Global
-Autonomous
-Global Sourcing
operations
-Multiregional
-Region Specific
-Horizontal Integration
-Vertical Integration
-Some transparency of
-Specific Customers
customers and
-Captive
production
Manufacturing
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Transactional
-Virtual E-Businesses
-World Markets
-Transparent
Manufacturing
-Global Supply Chain
-Global Alliances
James A. O’Brien
12
Introduction to Information Systems
Tenth Edition
Business Drivers for Global E-Business
Global
GlobalCustomers
Customers
Global
GlobalProducts
Products
Global
GlobalOperations
Operations
Business
Drivers
Global
GlobalResources
Resources
for Global
E-Business
Irwin/McGraw-Hill
Global
GlobalCollaboration
Collaboration
Introduction to Information Systems
James A. O’Brien
13
Tenth Edition
Global IT Platform Issues
Global Infrastructure
•
•
•
Global Systems Development
•
•
•
•
Irwin/McGraw-Hill
Local vs. Global Requirements
Multilingual Needs
Standardization of Data
Scheduling Global Activities
Global Data Access
Regulated Access
Transborder Data Flows
Global Computing Facilities
•
•
•
•
•
•
Hardware acquisitions
Import restrictions
Software compatibility
Local service
Balancing workloads
Lack of spare parts
James A. O’Brien
14
Introduction to Information Systems
Tenth Edition
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 customer-focused.
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James A. O’Brien
15
Introduction to Information Systems
Tenth Edition
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.
Irwin/McGraw-Hill
James A. O’Brien
16
Introduction to Information Systems
Tenth Edition
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.
Irwin/McGraw-Hill
James A. O’Brien
17
Introduction to Information Systems
Tenth Edition
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.
Irwin/McGraw-Hill