Enterprise and Global Management of Information Technology

1. Enterprise and Global Management of Information Technology

2. Learning Objectives • Identify each of the three components of information technology management and use examples to illustrate how they might be implemented in a business. • Explain how failures in IT management can be reduced by the involvement of business managers in IS planning and management. • Identify several cultural, political, and geoeconomic challenges that confront managers in the management of global information technologies. • Explain the effect on global business IT 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 access policies, and systems development methods by a global business enterprise.

3. ManagingInformation Technology Section I • Business and IT • Development of Global Business • Need for Business Managers • Managing IS and Technologies Real World Case 1- Chicago Board of Trade: From Failure to Success in Managing Information Technology Click to go to Case 1

4. Information Technology Management Managing Application Development and Technology Managing The IT Organization and Infrastructure Managing Business and IT Strategy Managing Information Technology The Major Components of IT Management CEO & CIO CIO & CTO CIO & IT Managers

5. Managing Information Technology Comparing IT Management Approaches

6. Managing Information Technology • IT Management Differs from Conventional IT Management • Hires IT Professionals Who Can Integrate IT With Business • Organized Workgroups Around e-Business Initiatives Focused on e-Commerce Services Avnet Marshall: Managing IT

7. Business Application Development & Deployment Customer and Business Value Visioning Business/IT Strategies and Architecture Business Strategies and Models Business/IT Planning • CEO & CIO Co-Adaptation Process • Strategy Development • Resource Management Key Insights Key Objectives Priorities More Questions Feedback Feedback

8. Information Technology Architecture • Technology Platform • Data Resources • Applications Architecture • IT Organization

9. Conventional IT Planning Avnet Marshall’s Business/IT Planning Information Technology Architecture Avnet Marshall: e-Business Planning

10. Managing the IS Function • Organizing IT • Centralization • Downsizing • Decentralization

11. CIO CEO Managing the IS Function Electronic Commerce and Supply Chain Management Development and Support Group Group Alliances Development and support Group Computer/ Communication Operations Management Group Marketing and Visibility Initiatives Planning Group Enterprise Integration Development and Support Group

12. Managing the IS Function Fireman’s Fund and FMC Corp: Outsourcing IT • 10 Year $380 Million Outsourcing Agreement With CGI - Montreal • IT Service Support Functions for 80 U.S. Locations • 300 Employees Moved to CGI • Resulted in Leaner IT Entity with 21% Saving in IT Infrastructure Costs • FMC Also Outsources and Realizes Substantial Savings

13. Managing the IS Function • Managing Application Development • IS Operations Management • System Performance Monitors • Chargeback Systems • Process Control • Human Resources Management of IT • The CIO and Other IT Executives

14. Managing the IS Function Example Enterprise Management Portal

15. Managing the IS Function Top IT Jobs: Requirements and Compensation • Chief Technology 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

16. Managing the IS Function • Technology Management • Chief Technology Officer (CTO) • Managing User Services • Information Center

17. Failures in IT Management PeopleFirst Finance: Failure of a CRM Project • Installing CRM Systems Can be Perilous • Multiple Installation Tries Often Needed • PeopleFirst Example Experienced Difficulties • Getting Information Was Like Playing “Whack-a-Mole”

18. Failures in IT Management Management Involvement and Governance

19. Managing Global IT Section II • International Dimensions of Modern Business • Benefits and Challenges of Offshore Systems Development • Real World Case 2- Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development Click to go to Case 2

20. Global IT Management Cultural, Political, and Geoeconomic Challenges Data Resource Management Business Application Portfolios Internet-Based Technology Platforms Business/IT Strategies Systems Development Managing Global IT The Major Dimensions of Global e-Business

21. Managing Global IT Cendant Corp.: Global IT Management • Typical Kind of Global Challenge • Need to Understand the Workings of Each Local IT Group • Focus on Leveraging Their Cultures and Talents • Peers Often Put Together to Experience Synergy

22. Managing Global IT • Political Challenges • Geoeconomic Challenges • Cultural Challenges • Global Competition for IT Talent • Global Business/IT Strategies • Global Business/IT Applications

23. Managing Global IT Alternative Global Strategies

24. Managing Global IT Alternative Implementations

25. Managing Global IT Global Business Drivers

26. Managing Global IT TRW Inc.: Global Business/IT 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 Global IT Issues is an Advantage

27. Managing Global IT Global IT Platforms

28. Managing Global IT Citibank: Consolidating Global IT Platforms • $100 Million Global IT Firm • Rolling Out Global Software System with a Single Interface through 2004 • Single System Customized for Each Country’s Needs • Flexcube Software Automates Much Balancing Activities

29. Managing Global IT The Internet as a Global IT Platform

30. Managing Global IT Global Data Access Issues Transborder Data Flows (TDF)

31. Managing Global IT Consumer Privacy Agreements

32. Managing Global IT Council of Europe: Global Cybercrime Treaty • Fear That Cybercrime Treaty Will Affect Business Liability and Security • Anxiety Over Duplication of Other Agreements • Primary Objective Was to Break Bottlenecks in Cyberinvestigations • Differences of Opinion are Real

33. Managing Global IT Internet Access Issues

34. Managing Global IT Global Systems Development

35. Managing Global IT Systems Development Strategies DHL Worldwide: Global System Development • Development 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

36. Summary • Failures in IT Management • Managing Information Technology • Managing Global IT • Global Business and IT Strategies and Issues

37. Application Development Management Centralization or Decentralization of IT Chargeback Systems Chief Information Officer Chief Technology Officer Cultural, Political, and Geoeconomic Challenges Data Center Downsizing Failures in IT management Global Business Drivers Global information Technology Management Business/IT Applications Business/IT Strategies Data Access Issues IT Platforms Systems Development Issues Human Resource Management of IT Internet Access Issues Internet as a Global IT Platform Management Involvement in IT Managing Information Technologies Managing the IS Function Operations Management Outsourcing IS Operations Systems Performance Monitor Technology Management Transborder Data Flows Transnational Strategy User Services KEY TERMS

38. Optional Case Studies Real World Case 1 Chicago Board of Trade: From Failure to Success in Managing Information Technology Click to go to Case 1 Real World Case 2 Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development Click to go to Case 2 Real World Case 3 Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software Development Click to go to Case 3 Real World Case 4 Avon Products and Guardian Life Insurance: Successful Management of IT Projects Click to go to Case 4

39. Questinons and Discussion...

40. Chicago Board of Trade:From Failure to Success in Managing Information Technology Case 1 1- What were several major reasons the IT organization had failed at the Chicago Board of Trade? Explain the impact of each on CBOT. Return to Chapter 12 Return to Cases Page

41. Lack of Leadership Infrastructure-Ancient, Unreliable and Undocumented Most Key Processes Routed to Old, Midrange Tandem Computers Environment Very Complex New Process Took More Than 90 Steps Chicago Board of Trade:From Failure to Success in Managing Information Technology Case 1 Discussion Points Would Include:

42. Project/Budget Controls Were Lacking Quality Control Was Substandard IT Full of Silos and Fiefdoms, No Economies of Scale IT Hadn’t Completed a Single Project in Four Years Technology Doesn't Provide Return for Investing Money In It Chicago Board of Trade:From Failure to Success in Managing Information Technology Case 1 Discussion Points Would Include:

43. Chicago Board of Trade:From Failure to Success in Managing Information Technology Case 1 2- What were several key management changes and initiatives that Bill Farrow implemented to make IT successful at CBOT? Explain the impact of each on CBOT.

44. New Senior Vice President of Technology Solutions Inventory of IT Taken by Documenting Systems Technical Architecture Vendor Relationships, Service-Level Agreements, and Evaluated Security Systems Built New Relationships, Used Brainstorming Chicago Board of Trade:From Failure to Success in Managing Information Technology Case 1 Discussion Points Would Include:

45. Replaced Ancient Tandem Systems With Sun Unix Servers And Oracle Databases Improved Quality Assurance Established a Project Management Office Brought ROI to Project Agendas Replaced IT Personnel with Professionals Chicago Board of Trade:From Failure to Success in Managing Information Technology Case 1 Discussion Points Would Include:

46. Chicago Board of Trade:From Failure to Success in Managing Information Technology Case 1 3- Does the experience of CBOT prove that “IT is a business function that needs to be managed like any other business function?” Why or why not? Return to Chapter 12 Return to Cases Page

47. Recognition of Business Skills from This Course/Work Experience What Business Skills would Fit this Organization in This Industry? Chicago Board of Trade:From Failure to Success in Managing Information Technology Case 1 Discussion Points Would Include: Return to Chapter 12 Return to Cases Page

48. Recognition of Business Skills from This Course/Work Experience What Business Skills would Fit this Organization in This Industry? Develop Pros/Cons about Applying Business Skills to IT Chicago Board of Trade:From Failure to Success in Managing Information Technology Case 1 Discussion Points Would Include: Return to Chapter 12 Return to Cases Page

49. Global Exchange Servicesand Allstate: Challenges and Solutions in Offshore Systems Development Case 2 1- What are the business benefits and limitations of sending software development offshore? Use the companies in this case as examples. Return to Chapter 12 Return to Cases Page

50. GXS Estimates Savings of $16 million Over 3 years Potential to Lose Control Over Foreign Technology Workers Quality of IT Projects Thousands of Miles Away Using “Offshore-Insourcing” Model Allstate Using Centers Overseas Global Exchange Servicesand Allstate: Challenges and Solutions in Offshore Systems Development Case 2 Discussion Points Would Include: