Corporate Information Systems Management

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Corporate Information Systems Management

• BiMBA, Fall 1999
• Dr. Jason Chen
• Gonzaga University
• Spokane, WA 99223

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The Basics

• Professor
• Jason Chen
• Office
• Office hours before and after class by appt.
• Text
• Applegate, L. M., McFarlan, F.W., and McKenney,
  J. L., Corporate Information Systems Management
  Text and Cases. 4th ed. Chicago Irwin, 1996

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Conduct of the Course

• Discussion of text material (instructor)
• Presentation of cases (groups of students)
• Technology briefings (groups of students)

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Evaluation

• Participation in discussions and preparation
  (10)
• Case presentations (15)
• Technology briefing (10)
• Papers (20)
• Midterm exam (20)
• Final exam (25)

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Why the course? (Corporate Information Systems
Management)

• In the tumultuous last years of the 20th
  century, when change was the only certainty and,
  one after another, fierce new competitors rose up
  from every corner of the globe to vie for
  dominance of the world marketplace, enterprise
  organizations came to understand that their only
  hope for survival lay with Information
  Technology. And they called out to their IT
  managers to instruct them in the ways of IT and
  to fashion IT into a brave, finely-honed
  competitive advantage with which to vanquish
  their enemies ...

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Overview of the Course

• The broad objective of this book is to help
  individuals and their organizations to better
  adapt new technologies to their circumstances and
  thus to compete in their industry segments more
  effectively.

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Topics

• The Challenge of Information System Technology
  (Chapter 1)
• The Changing Environment of Information
  Technology (Chapters 25)
• Trends
• Competitive Advantage
• Electronic Commerce
• Information, Organization, and Control

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• Organization, Management, and Control of the
  Information Technology Function (Chapters 69)
• Architectural Alternatives
• Organizing and Leading the IT Function
• IT Operations
• IT Management Processes
• Trends in IT Management (Chapters 10-13)
• Strategic Partnerships
• IT Development Portfolio
• Transnational IT Issues
• The IT business

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Chapter 1The Challenge of Information Systems
Technology

• What specific components are included in the
  definition of Information Systems?

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INFORMATION SYSTEMS
ORGANIZATIONS
TECHNOLOGY
MANAGEMENT
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Dr. Chen, The Challenge of the Information
Systems Technology
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SYSTEM INTERDEPENDENCE
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Dr. Chen, The Challenge of the Information
Systems Technology
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Information Systems Resources

• Hardware
• Software
• Telecommunication
• Data
• Procedure
• People

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Information Technology

• What specific technologies are included in the
  definition of Information Technology?
• Computers
• Telecommunications
• Office automation
• Software tools

15
The IT Business

• What are the aspects of The IT Business that
  must be understood and managed?
• Strategic relevance
• Corporate culture
• Contingency
• Technology transfer

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SCOPE OF INFO SYSTEMS

• 1950s TECHNICAL CHANGES
• 60s-70s MANAGERIAL CONTROL
• 80s-90s INSTITUTIONAL CORE ACTIVITIES
• 90s and beyond
• GROWING IMPORTANCE

Automation
Information
Innovation
Paradigm Shift
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Dr. Chen, The Challenge of the Information
Systems Technology
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Challenges in IT Management

• What are the challenges in IT management?
• Young technology
• Technological growth
• IT end-user coordination
• Specialization
• Shift in focus

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Paradigm Shift

• I. Computing Paradigm Shift

• II. Business Paradigm Shift

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Systems Technology
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I. Computing paradigm
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II. Business Paradigm Shift
1990s and Beyond
New Enterprise, Expert Systems BPR, Paperless
Office

• Client/Server, Multimedia
• Distributed Computing
• Object-Orientation

• Open Systems

Automated Enterprise, Back Office
Automation On-Line Transaction Processing
1980s

• Proprietary Systems

• Mainframes

1970s 1960s
Legacy Enterprise, Manual Back Office Manual
Front Office
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NEW OPTIONS FOR ORGANIZATIONAL DESIGN

• FLATTENING ORGANIZATIONS
• SEPARATING WORK FROM LOCATION
• INCREASING FLEXIBILITY
• REFINING ORGANIZATIONAL BOUNDARIES
• REORGANIZING WORK FLOWS

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THE CHANGING MANAGEMENT PROCESS

• ENTERPRISE RESOURCE PLANNING
• ELECTRONIC COMMERCE
• ELECTRONIC BUSINESS

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ENTERPRISE RESOURCE PLANNING

• SOFTWARE INTEGRATES ALL FACETS
• PLANNING, MANUFACTURING, INVENTORY, SALES,
  FINANCE, ACCOUNTING
• TRANSACTIONS ALERT ALL INVOLVED FACTORS
• UPDATES FILES, SPEEDS ACTION, CUTS COST

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ELECTRONIC COMMERCE

• Electronic commerce (EC) is an emerging concept
  that describes the buying and selling of
  products, services and information via computer
  networks, including the Internet.

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Dr. Chen, The Trends of the Information Systems
Technology
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ELECTRONIC COMMERCE

• INTERNET LINKS BUYERS, SELLERS
• LOWERS TRANSACTION COSTS
• GOODS SERVICES ADVERTISED, BOUGHT, EXCHANGED
  WORLDWIDE
• BUSINESS-TO-BUSINESS TRANSACTIONS INCREASING

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ELECTRONIC BUSINESS

• INTRANET BUSINESS BUILDS PRIVATE, SECURE NETWORK
• E-MAIL, WEB DOCUMENTS, GROUP SOFTWARE EXTENDS
  EFFECTIVE COMMUNICATION CONTROL
• VIRTUAL ORGANIZATION

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WHAT YOU CAN DO ON THE INTERNET

• COMMUNICATE COLLABORATE
• ACCESS INFORMATION
• DISCUSSIONS
• OBTAIN INFORMATION
• ENTERTAINMENT
• BUSINESS TRANSACTIONS

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Systems Technology
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VIRTUAL ORGANIZATION
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Systems Technology
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Virtual Companies (Portable Computing)
A Virtual Company is an Organization composed of
several Business Partners that Uses Information
Technology to Link/Share People, Assets, Ideas,
Costs, and Resources for the purpose of producing
a product or service. Virtual Companies are
Adaptable and Opportunity- Exploiting
Organizations Providing World-Class Excellence in
Their Competencies and Technologies.
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Characteristics of Virtual Companies
Excellence
Borderless
Adaptability
Six Characteristics of Virtual Companies
Opportunism
Trust-Based
Technology
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A Network Structure Facilitates the Creation of
Virtual Companies
Figure 04.10
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Five Challenges of Information Systems

• STRATEGIC competitive and effective
• GLOBALIZATION multinational IS
• INFO ARCHITECTURE support goals
• INVESTMENT value of IS
• RESPONSIBILITY CONTROL ethics and social
  responsibility
• Government regulations
• Government deregulation
• Shrinking budgets and subsidies

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Dr. Chen, The Challenge of the Information
Systems Technology
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Six Questions often asked by senior management

• 1. Is the firm being affected competitively
  either by omissions in IT work being done or by
  poor execution of this work?
• 2. Is the firm targeting its IT application
  development efforts effectively?
• 3. Is the IT asset of the firm being managed
  efficiently?
• 4. Is the firms IT activity sufficiently
  insulated against the risks of a major
  operational disaster?
• 5. Are IT and business leaders capable of dealing
  with IT-related management challenges?
• 6. Are the IT resources appropriately placed in
  the firm?

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Systems As Planned Organizational Change

• When we design a new IS, we are redesigning the
  organization. New IS frequently mean new ways of
  doing business and working together
• the nature of tasks
• the speed with which they must be completed
• the nature of supervising (its frequency and
  intensity)

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Systems As Planned Organizational Change

• who has what information about whom and when,
  where, and how will all be decided in the process
  of building an information system.

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Six Issues in Information Technology

• The IT environment
• What are the eras of IT environment?
• IT Architecture and Organization
• Is the firms IT architecture and organization
  of IT resources evolving appropriately?
• Management Processes
• Are the firms IT planning and control processes
  appropriate?

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Six Issues in Information Technology

• Project Management
• Is the firms project management process
  appropriate?
• IT Strategy
• Is the firm competitive and effectively focused
  on the right questions?
• The IT Business
• Is the overall direction of the IT asset
  appropriately linked to general management and
  middle management needs and values?

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The IT Environment
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IT Architecture and Organization

• Distribution of resources
• Networking and international coordination
• Outsourcing
• cost effectiveness and reliability
• outsourcing strategy
• IT operations
• cost efficiency and reliability

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Management Processes

• Cost allocation
• cost/profit
• Budgeting
• policy (fixed vs. transaction-driven)
• Performance monitoring
• types of reporting (batch vs. on-line)

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TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM GROUPS
SERVED
STRATEGIC LEVEL

SENIOR MANAGERS
MANAGEMENT LEVEL

MIDDLE MANAGERS
OPERATIONAL

OPERATIONAL LEVEL


MANAGERS
SALES MANUFACTURING FINANCE ACCOUNTING
HUMAN
RESOURCES
MARKETING
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Systems Technology
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Systems Technology
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Project Management

• Implementation risk
• project management processes and methodologies
• advocates vs. opponents
• Development methodology
• SDLC, JAD, Rapid Prototyping
• single vs. multiple

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IT Strategy

• ITs differing strategic roles in different
  companies
• who should be involved, time and financial
  resources
• Familiarity with nuances of technology
• complete the project on time and within the
  budget
• Congruence with corporate culture
• nature of the corporate planning process,
• e.g., formality vs. informality of organizational
  decision making

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IT Business

• Is the overall direction of the IT asset
  appropriately linked to general management and
  middle management needs and values?
• The marketing of IT solutions
• carefully blend the new product opportunities
  posed by new technologies with the changing needs
  of customers.

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Five Questions to be asked every six months

• 1. Do the perspective and skills of the IT team,
  IT users, and general management team fit the
  firms changing strategy and organization and the
  IT applications, operating environment, and
  management processes?
• 2. Is the firm organized to identify, evaluate,
  and assimilate new information technologies on a
  timely basis?
• 3. Are the three main management systems for
  integrating the IT environment to the firm as a
  whole in place and implemented?(strategic
  planning, management control, project management)
• 4. Are the security, priority-setting, and
  control systems for IT operations appropriate for
  the role it plays in the firm?
• 5. Are organization structures and coordinating
  mechanisms in place to ensure IT is appropriately
  aligned to the needs of the firm?

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Modern Managers Roles

• Today's managers are not only expected to use
  systems (Information Technology) but are also
  expected to
• Know how to use information technology (IT) to
  design competitive and efficient organizations.
• Understand the business and system requirements
  of a global environment.
• Use information systems to ensure quality
  throughout the firm.
• Participate in the design of a firm's information
  architecture and systems.

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Modern Managers Roles

• Manage the procurement of a variety of IT.
• Choose among alternative telecommunications
  options.
• Manage and control the influence of systems on
  employees and customers.
• Allocate resources to competing system
  alternatives.
• Suggest new uses for systems.
• Understand the ethical dilemmas and
  controversies that surround the use of
  advanced information systems.
• 11. Understand a global perspective on business
  and support systems needed to conduct business
  on an international scale.

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Conclusion

• In essence, contemporary managers (like you) are
  expected to know enough about IT to use in the
  design and management of their organizations.
• These new management responsibilities require a
  deeper understanding of IT and systems than ever
  before.

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