Unit IV

Managing Information
Technology
Managing Information
Resources & Technologies
Managing Information Technology has three major
components.
1. Managing the joint development and
implementation of business/I T strategies:
Led by the CEO and CIO, proposals are
developed by business and IT managers and
professionals regarding the use of IT to
support the strategic business priorities of the
company.

2. Managing the development and
implementation of new business/I T
applications and technologies: This step is
the primary responsibility of the CIO and
CTO. This area of IT management involves
managing the processes for information
systems development and implementation as
well as the responsibility for research into the
strategic business uses of new information
technologies.
3. Managing the I T Organization and the I T
I nfrastructure: The CIO and IT managers
share responsibility for managing the work of
IT professionals who are typically organized
into a variety of project teams and other
organizational subunits. In addition, they are
responsible for managing the IT infrastructure
of hardware, software, databases,
telecommunications networks, and other IT
resources, which must be acquired, operated,
monitored, and maintained.
IS architecture and
management
The IT architecture created by the strategic
planning process is a conceptual design, or
blueprint, that includes the following major
components:
1. Technology platform
2. Data resources
3. Applications architecture
4. IT organization
1. Technology platform: The Internet, intranets,
extranets, and other networks, computer
systems, system software, and integrated
enterprise application software provide a
computing and communications
infrastructure, or platform, that supports the
strategic use of information technology for e-
business, e-commerce, and other business/IT
applications.
2. Data resources: Many types of operational
and specialized databases, including data
warehouses and Internet/intranet databases,
store and provide data and information for
business processes and decision support.
3. Applications architecture: Business
applications of information technology are
designed as an integrated architecture or
portfolio of enterprise systems that support
strategic business initiatives, as well as cross-
functional business processes. For example,
an applications architecture should include
support for developing and maintaining the
interenterprise supply chain applications and
integrated enterprise resource planning and
customer relationship management
applications
4. I T organization: The organizational structure
of the IS function within a company and the
distribution of IS specialists are designed to
meet the changing strategies of a business.
The form of the IT organization depends on
the managerial philosophy and business/IT
strategies formulated during the strategic
planning process.
Centralized, Decentralized
and Distributed
Development of large mainframe computers
and telecommunications networks and
terminals caused a centralization of computer
hardware and software, databases, and
information specialists at the corporate level of
organization.
Next, the development of minicomputers and
microcomputers accelerated a downsizing
trend, which prompted a move back toward
decentralization by many business firms.
Distributed client/server networks at the
corporate, department, workgroup, and team
levels came into being, which promoted a shift
of databases and information specialists to
some departments and the creation of
information centers to support end-user and
workgroup computing.

EDI
EDI (electronic data interchange) is the
transmission, in a standard syntax of
unambiguous information of business or
strategic significance between computers of
independent organizations.
Is the electronic transfer of information
between two trading partners systems using a
set of transactions that have been adopted as a
national or international standard for the
particular business function.

How does EDI works?
Suppliers proposal sent electronically to
purchasing organization.
Electronic contract approved over network.
Supplier manufactures and packages goods,
attaching shipping data recorded on a bar
code.
Quantities shipped and prices entered in
system and flowed to invoicing program;
invoices transmitted to purchasing
organization
Manufacturer ships order.


Shipment notice EDI transaction sent.
Purchasing organization receives packages,
scans bar code, and compares data to
invoices actual items received.
Payment approval transferred electronically.
Bank transfers funds from purchaser to
suppliers account using electronic fund
transfer (EFT).

Supply Chain Management
Supply chain management is a cross-functional
interenterprise system that uses information
technology to help support and manage the
links between some of a companys key
business processes and those of its suppliers,
customers, and business partners.
The goal of SCM is to create a fast, efficient,
and low-cost network of business
relationships, or supply chain , to get a
companys products from concept to market.
Supply Chain Life Cycle
Global Information
Technology Management
All global IT activities must be adjusted to
take into account the cultural, political, and
geoeconomic challenges that exist in the
international business community.
Developing appropriate business and IT
strategies for the global marketplace should be
the first step in global information technology
management .
Once that is done, end users and IS managers
can move on to developing the portfolio of
business applications needed to support
business/IT strategies; the hardware, software,
and Internet-based technology platforms to
support those applications; the data resource
management methods to provide necessary
databases; and finally the systems
development projects that will produce the
global information systems required.