The Impact of Global Competition in Operation Management

Topics: Decision making Pages: 27 (7521 words) Published: October 26, 2010
Managing Hardware Assets
* Management challenges
By shifting to more up-to-date computer hardware, Organization were able to provide more computing power for their operations. To select the right computers, management needed to understand : 1.How much computer processing capacity its business processes required? 2.How to evaluate the price and performance of various types of computers? 3.To known the financial and business rationale for hardware technology investments. Management also had to plan for future processing requirements and understand : * 1.How the computer worked with related storage, input/output, and communications technology? * Selecting appropriate computer hardware raises the following management challenges:

1.The centralization versus decentralization debate.
A long-standing issue among information system managers and CEOs has been the question of how much to centralize or distribute computing resources. Should processing power and data be distributed to departments and divisions, or should they be concentrated at a single location using a large central computer? Client/server computing facilitates decentralization, but network computers and mainframes support a centralized model. Which is the best for the organization? Each organization will have a different answer based on its own needs. Managers need to make sure that the computing model they select is compatible with organizational goals.

2. Making wise technology purchasing decisions.
Computer hardware technology advances much more rapidly than other assets of the firm. Soon after having made an investment in hardware technology, managers find the completed system is obsolete and too expensive, given the power and lower cost of new technology. In this environment it is very difficult to keep one’s own systems up to date. A considerable amount of time must be spent anticipating and planning for technological change. Successful use of information systems to support an organization’s business goals requires an understanding of computer processing power and the capabilities of hardware devices. The role of hardware technology in the organization’s information technology infrastructure, managers can make sure that their firms have the processing capability they need to accomplish the work of the firm and to meet future business challenges.

Managing Hardware Assets
Managers need to balance the cost of acquiring hardware resources with the need to provide a responsive and reliable platform for delivering information systems applications. We now describe the most important issues in managing hardware technology assets: * Understanding the new technology requirements for electronic commerce and the digital firm. Determining the total cost of ownership (TCO) of technology assets. Identifying technology trends impacting the organization’s information technology infrastructure.

The Strategic Role of Storage Technology in the Digital Firm

Although electronic commerce and electronic business may be reducing the role of paper, data of all types (such as purchase orders, invoices, requisitions, and work orders) must be stored electronically and available whenever needed. Customers and suppliers doing business electronically want to place their orders, check their accounts, and do their research at any hour of the day or night, and they demand 24-hour availability. For business to occur 24 hours a day anywhere in our electronic world, all possibly relevant data must be stored for on-line access, and all these data must be backed up. Hardware Technology Requirements for Electronic Commerce and the Digital Firm

Electronic commerce and electronic business are placing heavy new demands on hardware technology because organizations are replacing so many manual and paper-based processes with electronic ones. Companies are processing and storing vast quantities of data for data-intensive applications, such as video or graphics, as...
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