IT Satrategies in a Global Business

8/7/2019 IT Satrategies in a Global Business

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2nd Assignment IT Strategies in a Global Business

ALLAMA IQBAL OPEN UNIVERSITY

(Department of Business Administration)

Assignment # 2

Management information system (5529)

TOPIC: IT STRATEGIES IN A GLOBALBUSINESSSubmitted to: Sir Asif IqbalSubmitted by: Ishtiaq Ahmed (0333-6824303)

AH-526270

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ACKNOWLEDGEMENT

All praises to Almighty Allah, the most Gracious, the most Beneficent and

the most Merciful, who enabled me to complete this assignment.

I feel great pleasure in expressing my since gratitude to my teacher, for

his guidance and support for providing me an opportunity to complete my

Project.

My special thanks and acknowledgments to Mr. Zeeshan for providing

me all relative information, guidance and support to compile the practical

study at Telenor.

I will keep my hopes alive for the success of given task to submit this

report to my honorable teacher Sir Asif Iqbal, whose guidance; supportand encouragement enable me to complete this assignment.

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Introduction of the issue

What is Information technology?

Information technology (IT) is the acquisition, processing, storage and

dissemination of vocal, pictorial, textual and numerical information by a

microelectronics-based combination of computing and

telecommunications.The term in its modern sense first appeared in a 1958 article published in

the Harvard Business Review, in which authors Leavitt and Whisler

commented that "the new technology does not yet have a single

established name. We shall call it information technology (IT) According

to ALA Glossary; Information Technology is the application of computers

& other technologies to the acquisition, organization, storage, retrieval &

dissemination.

Components of Information Technology

Technological change is becoming a driving force in our society.

Information technology is a generic term used for a group of

technologies. James William (1982) has identified the following six major

new technologies as most relevant in modern library and information

system.

Processor, memory and input/out put channels,

Micro. Mini and Large scale computers,

Mass storage technologies,

Data communication, networking and distributed processing,

Data entry, display respond, and Software

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What is Global Strategy?

Global Business Strategy can be defined as the business strategies

engaged by the businesses, companies or firms operating in a global

business environment and serving consumers throughout the world

Global business strategies are closely related to the business developing

strategies adopted by businesses to meet their short and long term

objectives. The short term goals of the business would be related to

improving the day-to-day operations of the company while the long term

objectives are generally targeted towards increment of the profits, sales

and earnings of the company in the long run ensuring growth and

stability of the business and dominance over the national or regional

market.

Importance of IT for a Global Business

These days IT is crucial to the majority of businesses. Almost all

companies use IT to some extent, making it important for employees to

have proficient knowledge in the area. It is not longer just IT jobs where

staff needs a good knowledge of IT. Almost all office based jobs are now

almost entirely based around computers and IT. Having good IT skills

gives you a major advantage over those who do not. Even if a role is not

an IT job per se, IT knowledge may give you an advantage over other

candidates and help you once you are employed. Employees are

expected to know the basics of IT in most jobs and there is an assumption

that you are able to perform basic computer related tasks. Email is often

the main mode of communication, while employees are also expected to

be able to write documents and use spreadsheets. In most cases the4


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Internet is the main research method, so being confident using Google,

for example, can be a must.Most admin tasks in any business are now

performed through the use of IT and for the large part the traditional

numerous filing cabinets are gone. Accounting is usually done with

spreadsheets, so accounting staff also need knowledge of IT. Even those

working in shops and restaurant will use IT is certain ways, such as the

tills. Anyone working in management in any job will need to be able to

use computers to either a small or large extend, depending on the nature

of their particular job.With IT playing such an important role in business

today, good IT training, either in education or once in employment, canmake an important difference. IT is there to make life easier, but if you do

not have the necessary confidence it can turn into a nightmare. Staff

needs to understand the processes they are using, and this requires

sufficient training.

IT can be complex, especially in businesses that use it to a large degree,

and as with all technologies there will be things that go wrong. Therefore

support staffs that can solve any issues are useful. Some companies will

have a person, or even a whole team of people, whose sole job it is to run

and maintain the IT systems and networks. IT is there to help, not hider,

but if things are not managed properly it can cause a whole host of

problems. The IT department and processes need to be managed for IT to

have the best possible impact on a business. Things need to be in place

so the business can make the most of the advantages IT offers.

IT planning Process

A four stage model of IT planning. Several models have been developed

to facilitate IT planning. The model consists of four major activities;

Strategic planning

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Requirements analysis

Resource allocation

Project planningThe stages involve the following activities:

o Strategic IT planning:

Establishes the relationship between the overall organizational plan and

the IT plan.

o Information requirements analysis:

Identifies broad, organizational information requirements to establish a

strategic information architecture that can be used to direct specific

application development

o Resource allocation:

Allocates both IT application development resources and operational

resources

o Project planning:

Develops a plan that outlines schedules and resource requirements for

specific information systems projects most organizations engage in all

four stages, but their involvement in the specific stages tends to be

sporadic and prompted by problems as they occur, instead of reflecting a

systematic, stage-by-stage process.

IT strategies of a global business

Followings are the are the main IT strategies of a global business

Developed a planning methodology in which business processes

strategies and technologies are defined.

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Identifies broad, organizational information requirements to

establish a strategic information architecture that can be used to

direct specific application development.

Allocates both IT application development resources and

operational resources.

Aligned these process strategies and technologies with the

business.

In the new methodology, the planning should perform for all areas

currently.

Use the same information system for all the regions.

Information technology management

IT Management is the discipline whereby all of the technology resources

of the firm are an aged in accord with the companys needs and priorities.

Those resources include tangible investments like computer hardware,

software, data, networks and data centre facilities, as well as the staffs

who are hired to maintain them. Managing this responsibility within a

company entails many of the basic management functions, like budgeting,

staffing, organizing and controlling, plus aspects that are unique to

technology, like change management, software design, network planning,

tech support and others. IT Management is a different subject from

Management Information Systems. Management Information Systems refer

to information management methods tied to the automation or support of

human decision making. IT Management, as stated in the above

definition, refers to the IT related management activities in organizations.

MIS as it is referred to is focused mainly on the business aspect with a

strong input into the technology phase of the business/organization.7
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A primary focus of IT Management is the value creation made possible by

technology. This requires the alignment of technology and business

strategies. While the value creation for an organization is a network of

relationships between internal and external environments, technology

plays an important role in improving the overall value chain of an

organization. However, this increase requires business and technology

management to work as a creative, synergistic, and collaborative team

instead of a purely mechanistic span of control according to Business.

IT Infrastructure

The term IT Infrastructure is defined as combined set of hardware,

software, networks, facilities, etc. (including all of the Information

Technology), in order to develop, test, deliver, monitor, control or support

IT services.

Business-IT alignment is a desired state in which a business

organization is able to use information technology (IT) effectively toachieve business objectives - typically improved financial performance or

marketplace competitiveness. Some definitions focus more on outcomes

(the ability of IT to produce business value) than means (the harmony

between IT and business decision-makers within the organizations); for

example,

Alignment is the capacity to demonstrate a positive relationship betweeninformation technologies and the accepted financial measures of

performance. This alignment is in contrast to what is often experienced in

organizations: IT and business professionals unable to bridge the gap

between themselves because of differences in objectives, culture, and

incentives and a mutual ignorance for the other group's body of

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knowledge. This rift generally results in expensive IT systems that do not

provide adequate return on investment. For this reason, the search for

Business / IT Alignment is closely associated with attempts to improve the

business value of IT investments.

It is not unusual for business and IT professionals within an organization

to experience conflict and in-fighting as lack of mutual understanding and

the failure to produce desired results leads to blaming and mistrust. The

search for B/I alignment often includes efforts to establish trust between

these two groups and a mechanism for consensus decision-making.

Practical Study of the Organization

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MISSION

Mission Statement:

To provide customers with superb value, high quality, relevanttechnology, customized systems, superior service and support andproducts and services that is easy to purchase and use.

Executive Summary

About Dell:

Founded in 1984 by Michael Dell

No.1 PC provider in the U.S. and No.2 worldwide

Based in Round Rock, Texas

Employs more than 82,700 people worldwide Grew during the 1980s and 1990s to become a brand

Direct Business Model is the foundation for Dells business

Dell maintains a consistent focus on offering the best value and

customer experience

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Dell is a trusted technology innovator with a diversified,

comprehensive IT portfolio

Dell is a global company committed to its customers and employees

In 1996, Dell began selling computers via its web site

Introduced the 316LT, the companys first notebook computer in

1989

Joined the top-five computer system makers worldwide in 1993

Earning appr. $1 million per day 7 months after the launch of

dell.com in 1996

Introduced E-Support, an online tool to provide technical support to

customers 1999

1999, Dell overtook Compaq to become the largest seller of

personal computers in the US

2007, Dell set a goal of becoming the greenest technology company

on Earth for the long term. The company launched a zero-carbon

initiative

For the first time, Dell achieves No. 1 ranking in global market share

in 2001

2003, name was changed to "Dell Inc."

2006, Dell purchased the computer hardware manufacturer Alien

ware January 2007, started a turnaround plan that promises to yield

$3 billion in annual savings over the next three years.

History

In 1996, Dell began selling computers via its web site

Introduced the 316LT, the companys first notebook computer in

1989

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Joined the top-five computer system makers worldwide in 1993

Earning appr. $1 million per day 7 months after the launch of

dell.com in 1996

Introduced E-Support, an online tool to provide technical support to

customers 1999

1999, Dell overtook Compaq to become the largest seller of

personal computers in the US

2007, Dell set a goal of becoming the greenest technology company

on Earth for the long term. The company launched a zero-carbon

initiative For the first time, Dell achieves No. 1 ranking in global market share

in 2001

2003, name was changed to "Dell Inc."

2006, Dell purchased the computer hardware manufacturer Alien

ware

January 2007, started a turnaround plan that promises to yield $3

billion in annual savings over the next three years.

Recent Developments:

In January 2009, Dell announced that they will withdraw all

manufacturing from Limerick and move it to its new plant in the

Polish city of Lodz by January 2010.

Raised their cost-reduction target to $4 billion.

Dell also announced that it aimed to become a "one-percent

company," giving away 1 % of pretax profits to education and

digital inclusion projects mainly in emerging markets, by

February 2010.

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IT Strategies of Dell

To do business with its customers one on one through the phone andinternet. In doing so, Dell will meet its expectations of:

Proper alignment of strategies with business

Strong IT infrastructure

Highest quality hardware.

Leading technology of hardware.

Micro processers for making the system more reliable

Efficient information system

Just-In-Time inventory system

Internet access of Customer

Coordination of schedule

Code sharing

Impressive Supply Chain Management

Strong strategic alliances with other companies

Minnie systems

Long life hardware

Use well designed software SAP and Oracle

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SWOT analysis

Strengths

High Quality product

Easy asses of Customer

latest technology

e-commerce capabilities: www.dell.com

Expert IT Management

Weaknesses

High dependency on component suppliers

Just $400 million budget for R$D Department

slow in introducing fancy features of hardware components

Lack of innovations

Opportunities

Network-internet, intranet and extranet

Low costs and growing advanced technology

Innovations

Globalization

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Threats

Bad sectors

Viruses

Competitors

Political instability

Recommendation

Focus on developing new softwares

Invest more in Research and Development.

Reduce errors in Dells direct Internet ordering system and

create a Clearance area on its website

Enhance customer support services

Should not be fully depended on technology partners

Make a system that efficiently works again bad sectors

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Conclusion

Dell computer is successful in global markets as a result of stronginformation system. The company designs and customizes productsand services to the requirements of the organizations and

individuals, and sells an extensive selection of peripheral hardwareand computing software.

Dell is a well known name in the world that has been very successfultowards its mission. It has focused on customization andmaintaining low cost that has been very profitable for the company.

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Table of Contents Page No

Title page 01

Acknowledgement 03

Abstract 04

Table of contents 05

Introduction to the issue 06

Case study 9

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SWOT analysis

RECOMENDATION

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IT Satrategies in a Global Business

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