Global Business Management

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Global Business Management

• Managing Change and Technology
• Management Information Systems
• Presenter
• Peter Hodge - MBA, MCSE
• peterhodge_at_hotmail.com

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My Goal Today

• To prepare each of you to be my boss some day

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Todays Agenda

• Role and Evolution of MIS
• Delivery Constraints and Paradigms
• Standards
• Outsourcing
• Survival Guide for IT Consumers
• E-Commerce
• The Future

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The Role and Evolution of MIS

• EDP Electronic Data Processing
• U.S. Census Bureau
• Military Artillery Trajectories
• MIS Management Information Systems
• De-centralization PCs - Networks
• IT Information Technology
• Internet
• Perceptions
• Rescuer
• King
• Outlaw
• Tool

0930
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Organizational Structure

• CEO
• CXO
• CFO Reign in Cost
• COO Ensure Customer Service
• CIO / CTO
• Must Balance Cost and Service

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Change

• We are on the cusp of a massive paradigm shift
• YOU must understand the IT function and control
  it or it will control your organization

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What is MIS?

• What is the mission of MIS?
• Write down in 25 words or less

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MIS MISSION

• To implement information systems designed to
  facilitate the will and intent of Executive
  Management in a value-free, cost/benefit
  environment.
• MIS should be the Ultimate Internal Customer
  Service Organization.

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How do we implement the MIS Mission?
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Traditional System Design

• Inverted Triangle

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Optimal System Design

• EIS Pyramid

CEO
Processes
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Questions and Discussion
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Delivery Systems

• How do we get the product to the customer?
• What is the product?
• Who is the customer?
• What constraints do we have?
• Oil business comparison

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MIS and the Oil Business

• Raw Material Oil Data
• Exploring Geology Collection
• Moving (Internal) Pipeline Network
• Refining Refinery Software
• Storage Tanks Servers, Db
• Delivery (External) Stations Internet
• Product Gas, etc. Information

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Delivery Constraints

• Bandwidth
• Storage
• Computation

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Oil Delivery Bandwidth

• Oil Pipeline Size
• Oil Train Car Size
• Oil Truck Size

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Information Delivery Bandwidth

• Modem Slow, World-wide
• Network Fast, Building
• Internet Medium, World-wide

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Delivery Constraints

• Bandwidth
• Storage
• Computation

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Oil Storage

• How many places can you think of where oil is
  stored?
• What are the differences between these storage
  places?

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Oil Storage

• Fuel Injection System
• Car Gas Tank
• Gas Station
• Regional Storage Tanks
• What are the differences?

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Information Storage

• Information how many places can you think of
  where Information is stored?
• What are the differences between these storage
  places?

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Information Storage

• PC Memory (Volatile)
• PC Hard Drive (Persistent)
• Server
• Mainframe

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Oil vs. Information Storage

• Fuel Injection System - PC Memory (Volatile)
• Car Gas Tank - PC Hard Drive (Persistent)
• Gas Station - Server
• Regional Storage Tanks - Database

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Information Delivery Constraints

• Bandwidth
• Storage
• Computation

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Oil Computation

• Refinery Equipment
• How fast can the equipment process oil into its
  component parts?
• What if you have huge crude oil tanks and a very
  slow refinery?

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Information Computation

• CPU
• How fast can the computer process data into
  information?
• What if you have huge amounts of data and a very
  slow computer?
• Mhz, Ghz
• Storage Access Bottleneck
• SMP Symetric Multiprocessor

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Another Analogy

• Computer - Automobile
• CPU Engine
• Memory Carburetor/Fuel Injectors
• Local Storage Gas Tank
• Long-term Storage Gas Station
• Bandwidth Fuel Lines
• Imagine Ferrari Engine in Toyota Echo

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Lets Design a Car

• Moving Large Loads
• Mail Delivery
• Dragster
• African Safari
• College Student Transportation
• Family Car
• Bus

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Lets Design a Network

• U.S. Census Bureau
• Social Security Administration
• NASA Space Agency
• Military
• Stock Exchange
• Telephone Company

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Questions and Discussion
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Delivery Paradigms

• Centralized
• Distributed
• Argument of the last decade

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Centralized

• Mainframe
• Dumb Terminals
• Thin Client
• Computation, Storage Centralized
• Low Bandwidth
• Poor Service, Low Flexibility
• Great Control

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Distributed

• Client Server
• PC - Fat Client Split Application
• Severs
• Computation, Storage Distributed
• High Bandwidth
• High Service, High Flexibility
• Poor Control

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How to Decide?

• Distribute Data?
• Distribute Computation?
• Increases Complexity!
• Uses Tremendous Bandwidth!
• Highly Proprietary Solutions!

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Solution? The Web!

• Combines best of both worlds
• Centralizes Storage, Computation
• Minimizes Bandwidth
• Great Service, Flexibility, and Control
• Open Development Environment via the Browser

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What is the Web?

• HTML
• Browser
• Only Text Data transported tags for local
  graphics
• Demo Show Source (Netgear)

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The Web is changing the way we deliver
information systems. Application Providers are
converting all applications to Web technology.
Where the Application resides will become
unimportant.
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Questions and Discussion
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Open vs. Proprietary Systems

• Open Systems
• Proprietary Systems
• What is the Difference?
• Keep this in mind as we continue..

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Standards

• Why do many countries still have only one
  national telephone company?
• What is a standard?
• Why are standards important?
• Is Microsoft Windows an Open Standard?

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How IT Standards Evolved

• 1970s
• Mainframes with Proprietary Operating Systems and
  Software
• My way or the Highway

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How IT Standards Evolved

• 1980s
• UNIX ATT/Bell Labs/Berkley
• OSF Wrote specifications for OS
  interoperability
• Early PCs
• IBM/Intel/DOS
• DEC/Motorola/CPM
• Apple/Apple/Apple

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Early PCs

• IBM Slow and Desperate
• Off the shelf parts (Open!!!)
• Needed BIOS
• Guess Who Had a BIOS?
• Needed OS
• Guess Who Lied about Having an OS?

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A Billionaire is Born

• Bill Gates
• Microsoft
• DOS
• Windows
• The de facto Standard of PC Computing
• A Natural Monopoly

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PC Computing BM (Before Microsoft)

• Hardware
• Drivers
• Operating System
• Software Application
• User (You)

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YOU
Application
OS
Drivers
BIOS
Hardware
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First Killer App

• Lotus 123
• Spreadsheet
• 90 Market Share

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The Problem Lotus Had

• New Version Releases 2.0, 3.0, etc.
• Maintenance Releases
• Separate version for every OS
• Custom Driver for every
• Printer
• Video Card
• Memory Card
• Etc.

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YOU
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PC Computing AM (After Microsoft)

• Windows
• Application
• User (You)

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How IT Standards Evolved

• 2000s Windows Uber Alles!
• Why Lotus Hated (liked) Windows
• Easier to Release New Versions of Lotus
• Fewer Releases
• Dramatically Reduced Technical Programming
• Let Lotus Focus on What it Knew Best

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Why Standards are Good

• Specialization Allows Greater Expertise
• Reduces Confusion in the Market
• Lowers Everyones Costs
• Shortens Consumer Learning Curve
• Reduces Entry Barriers to Market
• Win/Win

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Questions and Discussion
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MIS has largely become a technology buyer and not
a creator. Picking the right Standard/Company is
all-important. The goal is not to pick the best
technology, but the winner in the Marketplace. It
is OK to make a mistake as long as everyone
else makes the same mistake!
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Standards Winners and Losers
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Current Standards Battles
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Questions and Discussion
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Outsourcing

• How many of you make your own clothing?
• Build or Buy
• Two ways
• In-house Vendor
• ASP Web-based

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Outsourcing Issues

• Flexibility
• Control
• Cost
• Functionality
• Performance
• Scalability

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Outsourcing Options

• Web Hosting/Design
• Payroll
• Help Desk
• Accounting
• Disaster Recovery
• Business Intelligence
• Sales Force Automation

• Human Resources
• Email
• Storage and Backup
• Marketing
• VPN
• Metrics
• Security

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Outsourcing Vendors

• ASP Application Service Providers
• Jamcracker www.jamcracker.com

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Outsourcing the Utility model

• Commoditization
• Multiple Huge Databases with subscription access
• Example Employee records move with employee from
  job to job.
• People may become contractors

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Questions and Discussion
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Survival Guide for IT Consumers

• MIS is a tool which must be understood to be used
  effectively
• Insights from my experience
• Each of you will consume the services produced by
  MIS and may even have responsibility for it some
  day

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Managing Techies

• Technical People dont view performance the same
  way as you and I.
• The Blank Stare
• The operation was a success but the patient died.

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Cost and Service

• You CAN reduce cost AND improve service!
• Elegance. Synergy.
• Think out of the box
• Example HP Net PC at Viking

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House of Cards

• An IT infrastructure built haphazardly with no
  vision will result in the worst of all possible
  worlds high cost and poor service.
• Dr. King Eyes on the prize
• Baby steps if budget is tight
• Build a solid technical foundation based on
  winning standards.

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Total Cost of Ownership

• TCO and gravity will always catch up with you.
• Buying a car new or used? This is a TCO issue
  we all may have dealt with.
• TCO is the Great Silent Killer ignored by most
  and always fatal unless managed. If fatal, it
  usually isnt fatal to the one who initiated the
  problem.
• In the long run, the best way to do something is
  always the cheapest.

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Ethics

• Always operate legally and ethically.
• Go over all vendor contracts with a fine tooth
  comb make changes and deal with any potential
  issues BEFORE signing.
• Software license compliance.
• 1-800-RULEGIT BSA
• The cost of non-compliance is huge

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Dont Rush Technology

• Dont push technology let it pull you
• A huge TCO premium is paid if you jump the gun
• Examples
• Client Server
• VPN
• Terminal Server

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Face Time

• What is Face Time?
• Meetings very expensive in terms of labor
• Use technology to minimize and/or make meetings
  more effective
• Examples
• Intranet
• Video Conferencing
• Collaboration Software

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Custom Software

• Writing your own software would always be the
  last resort
• Feature Creep - when releasing software dont
  allow enhancements for six months only bug
  fixes
• This assumes good up-front design using the 80-20
  rule
• This forces users to change their procedures to
  fit the software rather than making the software
  all things to all people

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IT Info on Demand

• IT Managers should be able to produce the
  following inventories within minutes
• Vendor
• Server
• Comm Lines
• Admin Logins
• Maint/Support Contracts
• Software and Licenses
• User Equipment Inventory

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Questions and Discussion
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E-Commerce Overview

• B2B Business to Business
• Supply Chain Management (JIT)
• B2C Business to Consumer
• E-tailing (Amazon.com)
• C2C Consumer to Consumer
• Auctions (e-Bay)

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E-Commerce Overview

• CRM Customer Relationship Management
• Personalization
• More effective marketing
• Mining for new business
• Exposing internal departments to customer
• Retention
• Customer rather than product focus
• Delivering custom dynamic content mymsn via
  dynamic web pages

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Questions and Discussion
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The Future?
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Constraints Virtually Disappear

• CPU speed has outpaced the ability of PC
  peripherals to keep up
• Storage not far behind
• Bandwidth will take longer but will eventually
  get there as well
• The only constraint will be Privacy issues

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Virtual Reality

• The ultimate telecommute
• Physical location and distance will become
  irrelevant
• Entertainment boom
• Decline of cities 9/11 tragedy points out
  vulnerability of large cities.

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Artificial Intelligence

• Will not replace humans but will humanize the
  interface between people and machines
• Potential to alleviate digital divide
• Voice Recognition and other technologies will aid
  the digital have-nots to fully participate in the
  information revolution

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Transportation

• Lack of traditional computing constraints lets
  each vehicle become part of a virtual mass
  transit system
• Ascendancy of personal vehicles over mass transit
• Existing infrastructure used efficiently

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Education

• Customizable education
• Self-paced
• Learning disabilities identified and circumvented
• Virtual classrooms

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The Perfect Marketplace

• Slow and inaccurate information causes
  illegitimate wealth
• Faster accurate information will result in more
  efficient markets, allowing more to participate
  in wealth creation

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Medicine

• Early detection means prevention
• Body Computer
• Smart toilets
• Internal transponders
• Micro machines
• Smart medicines

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Questions and Discussion
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Thank you.

• Peterhodge_at_hotmail.com

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MIS Responsibilities

• Asset
• Network
• Server
• Desktop
• Task
• Maintenance
• Data/Voice Comm

• RD
• Vendor
• Customer Service
• Disaster Recovery
• BI Applications
• Security (Virus)
• Documentation

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Asset

• Hardware
• PCs
• Printers
• Servers
• Network
• PDAs
• Phone System
• Software Licenses
• MAC Moves, Adds, Changes

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Network

• Cabling
• Protocols
• Switches
• WAN Connectivity
• Response Time
• Up Time

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Server

• Capacity
• Response Time
• Up Time
• Version Control
• Health Maintenance

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Desktop

• Hardware
• Base Load
• Hot Spares
• Lockdown
• Remote Access

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Task

• Help Desk
• Daily, Monthly, Yearly
• Meetings
• Reporting

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Maintenance

• PM
• Inventory active, lapsed
• Vendor Contact Info
• Escalation
• Self-Maintenance

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People

• Burn-out
• Team
• Performance Reviews
• Skill Assessment
• Education / Training

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Data/Voice Communication

• Phone Switch
• Handsets
• Vendor Negotiation
• MAC
• Security

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Research and Development

• Picking Technology Winners
• Publications
• Seminars
• Trade Shows
• Sample Unit Testing

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Vendor

• Inventory
• Competition
• Preferred, Secondary
• Invoice Check
• As Few as possible

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Customer Service

• Friendly
• Positive Attitude
• Prioritizing Requests
• Internal vs. Customer Needs

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Disaster Recovery

• Cost
• Functionality
• Documentation
• Levels of Severity
• Small things usually cause the biggest problems
  and longest outages

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Business Intelligence Application

• Accounting
• ERP/MRP Enterprise/Manufacturing Resource
  Planning
• Supply Chain Management
• CRM Customer Relationship Management
• Sales/Marketing
• Integration/DSS/EIS

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Security

• Firewall
• Password Policy
• Physical
• Virus

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Documentation

• Policies
• Procedures
• Making People Interchangeable