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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-1
Real World Cases
Enterprise and Enterprise and Global Management Global Management
of Information of Information TechnologyTechnology
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-2
Real World Cases
Learning ObjectivesLearning Objectives1. 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 IT 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 IT strategy of the trend toward a transnational business strategy by international business organizations.
5. 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.
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-3
Real World Cases
ManagingManagingInformation TechnologyInformation Technology
• Business and IT• Development of Global
Business• Need for Business Managers• Managing IS and
TechnologiesReal World Case 1- Chicago Real World Case 1- Chicago
Board of Trade: From Failure Board of Trade: From Failure to Success in Managing to Success in Managing Information Technology Information TechnologyClick to go to
Case 1
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-4
Real World Cases
Managing Information Managing Information TechnologyTechnology
The Major Components of IT Management
CEO & CIO CIO & CTO CIO & IT Managers
InformationTechnologyManagement
ManagingBusiness
and ITStrategy
ManagingApplication
Developmentand
Technology
ManagingThe IT
Organizationand
Infrastructure
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-5
Real World Cases
Comparing IT Management Approaches
Managing Information Managing Information TechnologyTechnology
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-6
Real World Cases
• 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
Managing Information Managing Information TechnologyTechnology
Avnet Marshall: Managing ITAvnet Marshall: Managing IT
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-7
Real World Cases
•CEO & CIO Co-Adaptation Process• Strategy Development•Resource Management
Business/IT Planning Business/IT Planning
Key Insights Key Objectives Priorities
More Questions Feedback Feedback
Customerand Business
ValueVisioning
BusinessStrategies
and Models
Business/ITStrategies andArchitecture
BusinessApplication
Development &Deployment
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-8
Real World Cases
•Technology Platform•Data Resources•Applications Architecture•IT Organization
Information Technology Information Technology ArchitectureArchitecture
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-9
Real World Cases
Avnet Marshall: e-Business PlanningAvnet Marshall: e-Business Planning
Information Technology Information Technology ArchitectureArchitecture
Conventional IT Planning Avnet Marshall’s Business/IT Planning
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-10
Real World Cases
•Organizing IT•Centralization•Downsizing•Decentralization
Managing the IS FunctionManaging the IS Function
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-11
Real World Cases
Managing the IS FunctionManaging the IS Function
Group Alliances Development and support
Group
Marketing and Visibility Initiatives
Planning Group
Electronic Commerce and Supply Chain Management Development and Support
Group
Enterprise Integration Development and Support
Group
Computer/Communication
Operations Management Group
CEOCIO
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-12
Real World Cases
Managing the IS FunctionManaging the IS Function
• 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
Fireman’s Fund and FMC Fireman’s Fund and FMC Corp: Outsourcing ITCorp: Outsourcing IT
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-13
Real World Cases
Managing the IS FunctionManaging 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
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-14
Real World Cases
Example Enterprise Example Enterprise Management Portal Management Portal
Managing the IS FunctionManaging the IS Function
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-15
Real World Cases
Top IT Jobs: Requirements Top IT Jobs: Requirements and Compensation and Compensation
Managing the IS FunctionManaging the IS Function
• Chief Technology OfficerChief Technology Officer• Base Salary: $100,000-$250,000• Bonus: Up to 30% of Salary• e-Commerce Architecte-Commerce Architect• Base Salary: $120,000-$200,000• Bonus: Up to 20% of Salary• Technical Team LeaderTechnical Team Leader• Base Salary: $100,000-$200,000• Bonus: Up to 20% of Salary• Practice ManagerPractice Manager• Base Salary: $80,000-$200,000• Bonus: Up to 20% of Salary
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-16
Real World Cases
Managing the IS FunctionManaging the IS Function•Technology Management•Chief Technology Officer (CTO)•Managing User Services•Information Center
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-17
Real World Cases
Failures in IT ManagementFailures in IT Management
• Installing CRM Systems Can be Perilous• Multiple Installation Tries
Often Needed• PeopleFirst Example
Experienced Difficulties• Getting Information Was
Like Playing “Whack-a-Mole”
PeopleFirst Finance: Failure of PeopleFirst Finance: Failure of a CRM Projecta CRM Project
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-18
Real World Cases
Management Involvement and Management Involvement and GovernanceGovernance
Failures in IT ManagementFailures in IT Management
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-19
Real World Cases
Managing Global ITManaging Global IT• International Dimensions of
Modern Business• Benefits and Challenges of
Offshore Systems Development
• Real World Case 2- Real World Case 2- Global Exchange Services and Global Exchange Services and
Allstate: Challenges and Allstate: Challenges and Solutions in Offshore Solutions in Offshore Systems DevelopmentSystems Development
Click to go toCase 2
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-20
Real World Cases
Managing Global ITManaging Global ITThe Major Dimensions of The Major Dimensions of
Global e-BusinessGlobal e-Business
GlobalIT
Management
Business/ITStrategies
BusinessApplication Portfolios
Internet-BasedTechnology Platforms
SystemsDevelopment
DataResource
Management
Cultural, Political,and Geoeconomic
Challenges
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-21
Real World Cases
Managing Global ITManaging Global IT
• 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
Cendant Corp.: Global IT Cendant Corp.: Global IT ManagementManagement
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-22
Real World Cases
Managing Global ITManaging Global IT• Political Challenges•Geoeconomic Challenges•Cultural Challenges•Global Competition for
IT Talent•Global Business/IT
Strategies•Global Business/IT
Applications
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-23
Real World Cases
Alternative Global StrategiesManaging Global ITManaging Global IT
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-24
Real World Cases
Managing Global ITManaging Global ITAlternative Implementations
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-25
Real World Cases
Managing Global ITManaging Global ITGlobal Business Drivers
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-26
Real World Cases
Managing Global ITManaging Global IT
• $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
TRW Inc.: Global Business/IT TRW Inc.: Global Business/IT ChallengesChallenges
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-27
Real World Cases
Managing Global ITManaging Global ITGlobal IT PlatformsGlobal IT Platforms
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-28
Real World Cases
Managing Global ITManaging Global IT
• $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
Citibank: Consolidating Global Citibank: Consolidating Global IT PlatformsIT Platforms
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-29
Real World Cases
Managing Global ITManaging Global ITThe Internet as a Global IT The Internet as a Global IT
PlatformPlatform
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-30
Real World Cases
Managing Global ITManaging Global ITGlobal Data Access IssuesGlobal Data Access IssuesTransborder Data Flows (TDF)
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-31
Real World Cases
Managing Global ITManaging Global ITConsumer Privacy AgreementsConsumer Privacy Agreements
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-32
Real World Cases
Managing Global ITManaging Global ITCouncil of Europe: Global Council of Europe: Global
Cybercrime TreatyCybercrime 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
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-33
Real World Cases
Managing Global ITManaging Global ITInternet Access IssuesInternet Access Issues
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-34
Real World Cases
Managing Global ITManaging Global ITGlobal Systems DevelopmentGlobal Systems Development
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-35
Real World Cases
Managing Global ITManaging Global ITSystems Development StrategiesSystems Development StrategiesDHL Worldwide: Global System DHL Worldwide: Global System
DevelopmentDevelopment• 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
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-36
Real World Cases
SummarySummary•Failures in IT Management•Managing Information Technology•Managing Global IT•Global Business and IT Strategies and Issues
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-37
Real World Cases
KEY TERMSKEY TERMSApplication Development
ManagementCentralization or
Decentralization of ITChargeback SystemsChief Information OfficerChief Technology OfficerCultural, Political, and
Geoeconomic ChallengesData CenterDownsizingFailures in IT management Global Business DriversGlobal information
Technology Management a. Business/IT Applicationsb. Business/IT Strategiesc. Data Access Issuesd. IT Platformse. Systems Development Issues
Human Resource Management of IT
Internet Access IssuesInternet as a Global IT
PlatformManagement Involvement in
ITManaging Information
TechnologiesManaging the IS FunctionOperations ManagementOutsourcing IS OperationsSystems Performance MonitorTechnology ManagementTransborder Data FlowsTransnational StrategyUser Services
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-38
Real World Cases
Real World Case 1 Chicago Board of Trade: From Failure to Success in Managing Information Technology
Click to go toCase 1
Real World Case 2 Global Exchange Services and Allstate: Challenges and Solutions in Offshore Systems Development
Click to go toCase 2
Optional Case StudiesOptional Case Studies
Real World Case 3 Bio-ERA and Burlington Northern Santa Fe: The Business Case for Global Collaborative Software DevelopmentReal World Case 4 Avon Products and Guardian Life Insurance: Successful Management of IT Projects
Click to go toCase 3
Click to go toCase 4
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-39
Real World Cases
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-40
Real World Cases
1- What were several major 1- What were several major reasons the IT organization reasons the IT organization had failed at the Chicago had failed at the Chicago Board of Trade? Explain the Board of Trade? Explain the impact of each on CBOT. impact of each on CBOT.
Return toCases Page
Return toChapter 12
Chicago Board of Trade:Chicago Board of Trade:From Failure to Success in From Failure to Success in
Managing Information TechnologyManaging Information Technology
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-41
Real World Cases
• 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
Discussion Points Would Include: Discussion Points Would Include:
Chicago Board of Trade:Chicago Board of Trade:From Failure to Success in From Failure to Success in
Managing Information TechnologyManaging Information Technology
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-42
Real World Cases
• 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
Discussion Points Would Include: Discussion Points Would Include:
Chicago Board of Trade:Chicago Board of Trade:From Failure to Success in From Failure to Success in
Managing Information TechnologyManaging Information Technology
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-43
Real World Cases
2- What were several key 2- What were several key management changes and management changes and initiatives that Bill Farrow initiatives that Bill Farrow implemented to make IT implemented to make IT successful at CBOT? Explain successful at CBOT? Explain the impact of each on CBOT. the impact of each on CBOT.
Chicago Board of Trade:Chicago Board of Trade:From Failure to Success in From Failure to Success in
Managing Information TechnologyManaging Information Technology
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-44
Real World Cases
•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
Discussion Points Would Include: Discussion Points Would Include:
Chicago Board of Trade:Chicago Board of Trade:From Failure to Success in From Failure to Success in
Managing Information TechnologyManaging Information Technology
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-45
Real World Cases
•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
Discussion Points Would Include: Discussion Points Would Include:
Chicago Board of Trade:Chicago Board of Trade:From Failure to Success in From Failure to Success in
Managing Information TechnologyManaging Information Technology
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-46
Real World Cases
3- Does the experience of 3- Does the experience of CBOT prove that “IT is a CBOT prove that “IT is a business function that needs business function that needs to be managed like any other to be managed like any other business function?” Why or business function?” Why or why not? why not?
Chicago Board of Trade:Chicago Board of Trade:From Failure to Success in From Failure to Success in
Managing Information TechnologyManaging Information Technology
Return toCases Page
Return toChapter 12
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-47
Real World Cases
•Recognition of Business Skills from This Course/Work Experience•What Business Skills would Fit this Organization in This Industry?
Discussion Points Would Include: Discussion Points Would Include:
Chicago Board of Trade:Chicago Board of Trade:From Failure to Success in From Failure to Success in
Managing Information TechnologyManaging Information Technology
Return toCases Page
Return toChapter 12
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-48
Real World Cases
•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
Discussion Points Would Include: Discussion Points Would Include:
Chicago Board of Trade:Chicago Board of Trade:From Failure to Success in From Failure to Success in
Managing Information TechnologyManaging Information Technology
Return toCases Page
Return toChapter 12
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-49
Real World Cases
1- What are the business 1- What are the business benefits and limitations of benefits and limitations of sending software development sending software development offshore? Use the companies offshore? Use the companies in this case as examples. in this case as examples.
Return toCases Page
Return toChapter 12
Global Exchange ServicesGlobal Exchange Servicesand Allstate: Challenges and and Allstate: Challenges and
Solutions in Offshore Systems Solutions in Offshore Systems DevelopmentDevelopment
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-50
Real World Cases
• 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
Discussion Points Would Include: Discussion Points Would Include:
Global Exchange ServicesGlobal Exchange Servicesand Allstate: Challenges and and Allstate: Challenges and
Solutions in Offshore Systems Solutions in Offshore Systems DevelopmentDevelopment
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-51
Real World Cases
2- What is the business value 2- What is the business value and limitations of the and limitations of the insourcing model of offshore insourcing model of offshore software development? Use software development? Use GSX and Allstate as GSX and Allstate as examples. examples.
Global Exchange ServicesGlobal Exchange Servicesand Allstate: Challenges and and Allstate: Challenges and
Solutions in Offshore Systems Solutions in Offshore Systems DevelopmentDevelopment
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-52
Real World Cases
•Foreign Workers Receive Same Training•Use the Same Software Development Tools•Adhere to the Same Business Processes•Employee Cost Savings•Retain Critical Business Knowledge/Intellectual Capital
Discussion Points Would Include: Discussion Points Would Include:
Global Exchange ServicesGlobal Exchange Servicesand Allstate: Challenges and and Allstate: Challenges and
Solutions in Offshore Systems Solutions in Offshore Systems DevelopmentDevelopment
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-53
Real World Cases
•Inform U.S.-Based Workers of Critical Plans for IT Projects •Economics of Local Environment are–Sustainable, and That There’s Talent
•Quality Workforce and Those Things Won't Change
Discussion Points Would Include: Discussion Points Would Include:
Global Exchange ServicesGlobal Exchange Servicesand Allstate: Challenges and and Allstate: Challenges and
Solutions in Offshore Systems Solutions in Offshore Systems DevelopmentDevelopment
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-54
Real World Cases
3- Should U.S companies send 3- Should U.S companies send their software development their software development and other IT functions and other IT functions offshore? Why or why not? offshore? Why or why not?
Global Exchange ServicesGlobal Exchange Servicesand Allstate: Challenges and and Allstate: Challenges and
Solutions in Offshore Systems Solutions in Offshore Systems DevelopmentDevelopment
Return toCases Page
Return toChapter 12
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-55
Real World Cases
•Cost Savings•Quality Assurance•Stability of Foreign Economy•Retain Critical Business Knowledge and Intellectual Capital
Pros & Cons For Going Offshore:Pros & Cons For Going Offshore:
Global Exchange ServicesGlobal Exchange Servicesand Allstate: Challenges and and Allstate: Challenges and
Solutions in Offshore Systems Solutions in Offshore Systems DevelopmentDevelopment
Return toCases Page
Return toChapter 12
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-56
Real World Cases
•Cost Savings•Quality Assurance•Stability of Foreign Economy•Retain Critical Business Knowledge and Intellectual Capital•Employee Relations
Pros & Cons For Going Offshore:Pros & Cons For Going Offshore:
Global Exchange ServicesGlobal Exchange Servicesand Allstate: Challenges and and Allstate: Challenges and
Solutions in Offshore Systems Solutions in Offshore Systems DevelopmentDevelopment
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Return toChapter 12
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-57
Real World Cases
1- How is the open source 1- How is the open source model affecting the model affecting the development of application development of application software for business? software for business?
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Bio-ERA and BurlingtonBio-ERA and BurlingtonNorthern Santa Fe: The BusinessNorthern Santa Fe: The Business
Case for Global CollaborativeCase for Global CollaborativeSoftware DevelopmentSoftware Development
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-58
Real World Cases
• Permits Radically Different Way to Build Software
• Foreshadows Future of Distributed Global Collaborative Model of Software Development
• Bio-ERA and Burlington Northern Santa Fe Avoided Tasks of Software Development
• Companies Concentrate Their Core Business by– Forming Just-in-Time Teams
• Used Outsourced Talent for Software Development
Discussion Points Would Include: Discussion Points Would Include:
Bio-ERA and BurlingtonBio-ERA and BurlingtonNorthern Santa Fe: The BusinessNorthern Santa Fe: The Business
Case for Global CollaborativeCase for Global CollaborativeSoftware DevelopmentSoftware Development
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-59
Real World Cases
2- What are the business 2- What are the business benefits of the global or benefits of the global or collaborative approach to collaborative approach to software development? Use software development? Use the companies in this case as the companies in this case as examples. examples.
Bio-ERA and BurlingtonBio-ERA and BurlingtonNorthern Santa Fe: The BusinessNorthern Santa Fe: The Business
Case for Global CollaborativeCase for Global CollaborativeSoftware DevelopmentSoftware Development
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-60
Real World Cases
•Companies Outsource Software Development and Run their Core Business•Company uses Global-Collaborative Approach for Software Development “Fast and Cheap”
Discussion Points Would Include: Discussion Points Would Include:
Bio-ERA and BurlingtonBio-ERA and BurlingtonNorthern Santa Fe: The BusinessNorthern Santa Fe: The Business
Case for Global CollaborativeCase for Global CollaborativeSoftware DevelopmentSoftware Development
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-61
Real World Cases
3- What are several potential 3- What are several potential challenges or limitations that challenges or limitations that might arise when using a might arise when using a global collaborative approach global collaborative approach to software development? to software development? How can companies address How can companies address such challenges? such challenges?
Bio-ERA and BurlingtonBio-ERA and BurlingtonNorthern Santa Fe: The BusinessNorthern Santa Fe: The Business
Case for Global CollaborativeCase for Global CollaborativeSoftware DevelopmentSoftware Development
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-62
Real World Cases
• IT Manager Must Understand Software Development• IT Manager Must have Experience
Managing a Distributed Team and a Platform • Companies Must Ensure U.S.-
based Talent for Any Ad-hoc Jobs
Discussion Points Would Include: Discussion Points Would Include:
Bio-ERA and BurlingtonBio-ERA and BurlingtonNorthern Santa Fe: The BusinessNorthern Santa Fe: The Business
Case for Global CollaborativeCase for Global CollaborativeSoftware DevelopmentSoftware Development
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-63
Real World Cases
• IT Manager Must Understand Software Development• IT Manager Must have Experience
Managing a Distributed Team and a Platform • Companies Must Ensure U.S.-based
Talent for Any Ad-hoc Jobs• Company Must Create “Executive
Dashboard” to Monitor Software Development
Discussion Points Would Include: Discussion Points Would Include:
Bio-ERA and BurlingtonBio-ERA and BurlingtonNorthern Santa Fe: The BusinessNorthern Santa Fe: The Business
Case for Global CollaborativeCase for Global CollaborativeSoftware DevelopmentSoftware Development
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-64
Real World Cases
1- What are several possible 1- What are several possible solutions to the failures in IT solutions to the failures in IT project management at many project management at many companies described at the companies described at the start of this case? Defend start of this case? Defend your proposals. your proposals.
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Avon Products and Avon Products and Guardian Life Insurance: Guardian Life Insurance:
Successful Management of IT Successful Management of IT ProjectsProjects
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-65
Real World Cases
• Good Business-Case Methodology Leads to Good Project Management• Use All Analytical/Financial ROI
Tools Against Each IT Projects• Use of “Governance” (Hard-
Dollar/Metrics-Oriented Processes) for Incorporating “Soft” Costs and Benefits into Decisions
Discussion Points Would Include: Discussion Points Would Include:
Avon Products and Avon Products and Guardian Life Insurance: Guardian Life Insurance:
Successful Management of IT Successful Management of IT ProjectsProjects
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-66
Real World Cases
2- What are several key ways 2- What are several key ways that Avon and Guardian that Avon and Guardian assure that their IT projects assure that their IT projects are completed successfully are completed successfully and support the goals of the and support the goals of the business? business?
Avon Products and Avon Products and Guardian Life Insurance: Guardian Life Insurance:
Successful Management of IT Successful Management of IT ProjectsProjects
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-67
Real World Cases
• Avon Uses Analytical/Financial ROI Tools Against IT Projects• Avon Uses an Investment-
Tracking Database• Guardian Uses “Governance”• Guardian Incorporates “Soft”
Costs and Benefits• Guardian Monitors IT Projects
Discussion Points Would Include: Discussion Points Would Include:
Avon Products and Avon Products and Guardian Life Insurance: Guardian Life Insurance:
Successful Management of IT Successful Management of IT ProjectsProjects
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-68
Real World Cases
3- If you were the manager of a 3- If you were the manager of a business unit at Avon or business unit at Avon or Guardian, what are several Guardian, what are several other things you would like to other things you would like to see their IT group do to see their IT group do to assure the success of an IT assure the success of an IT project for your business project for your business unit? Defend your unit? Defend your suggestions. suggestions.
Avon Products and Avon Products and Guardian Life Insurance: Guardian Life Insurance:
Successful Management of IT Successful Management of IT ProjectsProjects
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Managing Information TechnologyBusiness and ITBusiness/IT PlanningSection IIManaging Global ITGlobal IT ManagementGlobal Business/IT StrategiesGlobal IT PlatformsGlobal Data Access SystemsGlobal Systems Development
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 12-69
Real World Cases
Include Concepts Drawn From the Text and From Other Business Courses. Draw upon Other Classes and Perhaps From Work Experiences to Integrate Learning Experiences Through This Case.
Discussion Points Would Include: Discussion Points Would Include:
Avon Products and Avon Products and Guardian Life Insurance: Guardian Life Insurance:
Successful Management of IT Successful Management of IT ProjectsProjects
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