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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 GLOBAL


BUSINESS
Submitted to: Sir Asif Iqbal
Submitted by: Ishtiaq Ahmed (0333-6824303)
AH-526270

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IT Strategies in a Global Business

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; support
and encouragement enable me to complete this assignment.

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IT Strategies in a Global Business

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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IT Strategies in a Global Business

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 the
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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, can
make 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 planning
The 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 company’s 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.
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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 to
achieve 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 between


information 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, relevant
technology, customized systems, superior service and support and
products 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 Dell’s 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 company’s 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 company’s 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 and
internet. 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 software’s

• Invest more in Research and Development.

• Reduce errors in Dell’s 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 strong


information system. The company designs and customizes products
and services to the requirements of the organizations and
individuals, and sells an extensive selection of peripheral hardware
and computing software.

Dell is a well known name in the world that has been very successful
towards its mission. It has focused on customization and
maintaining 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 13

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RECOMENDATION

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