chapter 12: enterprise & global management of e-business
TRANSCRIPT
Introduction to Information Systems Chapter 12
© 2002 McGraw-Hill Companies 1
Eleventh Edition
1
Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
C h a p t e r
James A. O’Brien
12 Enterprise and Global
Management of
e-Business Technology
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• 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.
Chapter Objectives
Introduction to Information Systems Chapter 12
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• 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.
Chapter Objectives
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• 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.
Chapter Objectives
Introduction to Information Systems Chapter 12
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Managing e-Business Technologies
E-Business
•Agility, Flexibility
•Business Strategies
•Supply Chain
•Total Quality
Suppliers Business Partners
Customer Value
•Responsiveness
•Accountability
•Lower costs
Information Technology Developments
•Global and enterprise
computing; intranets
•IT infrastructure
National Gobel in Brief
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
NABEL, 3/7/2003
Introduction to Information Systems Chapter 12
© 2002 McGraw-Hill Companies 4
•ISO CERT. •ANTI DUMPING •ENERGY SAVING •RECYCLING
Domestic
Market
Government
University
•Regulation
•Incentive
•Certification
•Apprenticeship
•Research
Global : WTO
Regional : APECSub-Regional : AFTA
Manufacturer
•HIGH QUALITY •COST •SPEED •GLOBAL MODEL
Competitiveness
Export
Market
•Vision
•Policy
Global Competitiveness NABEL, 3/7/2003
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Business Quality Improvement
Traditional Organization Business Reengineering
E-Organization
Organization
Structure
Target
Leadership
Potential Payback
People and
Culture
Risk
Coherence
What Changes?
Knowledge
Primary
Alliances
Incrementally Improving Existing Processes
Hierarchical
Existing Processes Radically Redesigning Business Systems
Horizontal, networked
Business Systems
Any Process
Centralized focus
Strategic Business Processes
Everyone is a leader
Processes
10%-50% Improvements 10%-50% Improvements 10-Fold Improvements 10-Fold Improvements
Low Low High High
Same Jobs - More Efficient Same Jobs - More Efficient Big Job Cuts; New Jobs; Major Job Redesign
Big Job Cuts; New Jobs; Major Job Redesign IT and Work Simplification
IT and Organizational
Customer relevance
Institutional
Delegated authority
Collaboration rewarded
Governance
Internal relevance
Individualistic
Ally with distant partners
Complement current gaps
Top-down
Vertical decision making
Individuals rewarded
Distributed
Ally with competitors, customers
and suppliers
Create new value
The e-Business Organization
Introduction to Information Systems Chapter 12
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A company that cannot change the way it thinks
about Information Technology cannot re-engineer
Shared databasesShared databases
TelecommunicationsTelecommunications
networksnetworks
Expert SystemsExpert Systems
Decision Support ToolsDecision Support Tools
(database access,(database access,
modeling software)modeling software)
DistruptiveDistruptive
TechnologyTechnology Old RuleOld Rule
Information can appearInformation can appear
in only one placein only one place
at one timeat one time
Business must chooseBusiness must choose
between centralizationbetween centralization
and decentralizationand decentralization
Only expert can perform Only expert can perform
complex workcomplex work
Managers make allManagers make all
decisionsdecisions
New RuleNew Rule
Information can appearInformation can appear
simultaneously in as manysimultaneously in as many
places as it is neededplaces as it is needed
Business canBusiness can
simultaneously reap thesimultaneously reap the
benefits of centralizationbenefits of centralization
and decentralizationand decentralization
A generalists can do theA generalists can do the
work of an expertwork of an expert
DecisionDecision--making is partmaking is part
of everyone’s jobof everyone’s job
Source: Reengineering The Corporation - Michael Hammer & James Champy
The Role of Information Technology NABEL, 3/7/2003
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Example of organizational structure of an e-business enterprise
Global
Executive
Core
E-commerce
Business Unit
Consumer
Products
Business Unit
Shared IT
Support
Services
Business Unit
Shared Administrative
Support Services
Business Unit
Industrial
Products
Business Unit
Financial
Services
Business Unit
Introduction to Information Systems Chapter 12
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e-Business Technology Management
Managing
the IT
Organization
Managing
e-Business IT
Strategy
Managing
Managing
Application
Development &
Technology
e-Business
Technology
Management
Eleventh Edition James A. O’Brien 12 Introduction to Information Systems
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IT Strategic Planning Management
Development &
E-Business
Application
Development &
Deployment
E-Business IT
Strategies and
Architecture
E-Business
Strategies and
Models
Value Visioning
Customer and
Business
Value Visioning
Key Insights
Key Objectives
Priorities
More Questions
Feedback
Feedback
Introduction to Information Systems Chapter 12
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Benefits Derived from Company IT Planning
• Reduced support costs
• Reduced complexity
• Expertise portability
• Interoperability
• Volume discounts
• Reduced training costs
• Information sharing
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Managing the IS Function
Application Development
•Systems Analysis
•Systems Design
•Programming
•System Maintenance
IT Operations Management
•Network Management
•Production Control
•Product Support
•Systems Performance
Human Resource Management
•IS Recruiting
•Training
•Retainment Programs
•Support Staff
Introduction to Information Systems Chapter 12
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Global e-Business Technology Management
Development Systems
Development
Management
Data Resource
Management
Internet based
Internet-based Technology Platforms
e Business Application
e-Business Application Portfolios
e-Business/IT
e-Business/IT Strategies
Management Global IT
Management
Cultural, Political, and Geoeconomic
Challenges
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Global e-Business Strategies
Transactional
-Virtual e-Businesses
-World Markets
-Transparent
Manufacturing
-Global Supply Chain
-Global Alliances
International
-Autonomous
operations
-Region Specific
-Vertical Integration
-Specific Customers
-Captive
Manufacturing
Global
-Global Sourcing
-Multiregional
-Horizontal Integration
-Some transparency of
customers and
production
Introduction to Information Systems Chapter 12
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Business Drivers for Global e-Business
Global Customers
Global Products
Global Operations
Global Resources
Global Collaboration Global Collaboration
Business Drivers for Global e-Business
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Global IT Platform Issues
Global Systems Development
•Local vs. Global Requirements •Multilingual Needs •Standardization of Data •Scheduling Global Activities
Global Infrastructure
•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
Introduction to Information Systems Chapter 12
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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.
Eleventh Edition James A. O’Brien 20 Introduction to Information Systems
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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.
Introduction to Information Systems Chapter 12
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Eleventh Edition James A. O’Brien 21 Introduction to Information Systems
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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 James A. O’Brien 22 Introduction to Information Systems
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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.