Management Information Systems, 3rd Edition

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Chapter 10Organizing Information Technology
Resources
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Learning Objectives

• When you finish this chapter, you will
• Understand the different ways in which ISs are
  deployed in organizations.
• Be able to list and explain the advantages and
  disadvantages of each IS architecture.
• Know the importance of collaboration between IS
  managers and line managers, and understand the
  relationships between the two groups.
• Be able to describe career paths and
  responsibilities in the IS field.

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Information Systems Architecture and Management

• Centralized Information Systems Architecture
• Mainframes dictated IS architecture be centralized

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Mainframes Dictated IS Architecture be Centralized

• Advantages
• High degree of control
• Easy to maintain hardware, software, procedure,
  and operation standards
• Easy control of access to information
• Disadvantages
• Inflexible
• Lack of customization

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Information Systems Architecture and Management
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Information Systems Architecture and Management

• Decentralized Information Systems Architecture
• Allows departments and remote sites independence
  in organizing and using their IS
• Local IS department establishes infrastructure
• Disadvantages
• Difficult to share applications and data among
  units
• Expensive to maintain and service different
  systems

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Information Systems Architecture and Management
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Information Systems Architecture and Management

• Distributed Information Systems
• Each unit selects and implements its own system.
• Remote units can share resources through
  communication lines.
• Many organizations changing to distributed
  architecture.
• Increased reliability and affordability of data
  communication and PC technology

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Information Systems Architecture and Management
Figure 10.3 In distributed IS architecture,
workers use the information resources of their
own site or department, but can also use the
resources of other sites or departments through
communication lines
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Information Systems Architecture and Management
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Information Systems Architecture and Management

• Centralized vs. Decentralized ISs Advantages and
  Disadvantages
• Advantages of Centralized IS Management
• Standardized hardware and software
• Easier training
• Encouragement of common reporting systems
• Effective planning of shared systems
• Easier strategic planning
• Efficient use of IS personnel
• Accommodation of tight control by top management

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Information Systems Architecture and Management
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Information Systems Architecture and Management

• Advantages of Decentralized IS Management
• Better fit of ISs to business needs
• Timely responsiveness of IS units to business
  demands
• Encouragement of end user application development
  
• More innovative use of ISs
• Support for delegation of authority

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Information Systems Architecture and Management
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Information Systems Architecture and Management

• Trends in Information Systems Organization
• Discarding Big Iron (mainframe computers)
• Switch to PCs brings distributed IS architecture
  benefits
• Some companies keep mainframe for processing
  power
• Reengineering with Information Technology
• Effort for breakthrough gains through radical
  business process and system changes
• Almost always leads to integrating IT in all
  processes

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Organizing the IS Staff

• Central IS Organization
• Corporate IS team serves all units
• IS Director oversees departments within IS
• System development and maintenance
• Information center
• Communications
• Data administration
• Research and development
• Involved in virtually every aspect of IT
• Steering committee oversees IS services

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Organizing the IS Staff
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Organizing the IS Staff

• Functional IS Organization
• Each unit fulfills IS needs independently.
• Each business unit has one or several IS
  professionals who report to the unit manager.
• Funds come from unit budget.
• Small central unit can coordinate IS for
  departments that need help.

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Organizing the IS Staff
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Organizing the IS Staff

• The Best of Both Approaches
• Many companies use elements of both central and
  functional IS management.
• Regardless of IS management, implementation
  depends on position of highest IS officer.
• Reports to VP IS provides technical solutions
• Reports to CEO IS more involved in strategic
  planning

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Challenges for IS Managers and Line Managers

• Line Managers Expectations of an IS Unit
• Broad understanding of business activities
• Prompt response to information needs
• Clear explanation of what technology can and
  cant do
• Candid explanations of what IS can and cant do
• Honest budgeting
• Single point of contact

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Challenges for IS Managers and Line Managers

• IS Manager Expectations of Line Managers
• Projected list of basic IS needs
• Clear explanation of business processes that need
  support once an IS manager is asked to develop a
  new system
• What features the business manager wants in the
  new system once general automation process is set

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The Information Center

• Coordination and Control
• Hardware and software purchases
• Application development
• Development and use of databases by end users
• Support
• Training and response to requests for help
• Help desk Troubleshoot on demand

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Chargeback Methods

• Two ways to treat cost of IS function
• Part of overhead cost General shared expense
• Chargeback system Units charged for services

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Chargeback Methods

• Service Charges
• What is chargeable?
• Personnel hours
• Computer time
• External storage space
• Number of input and output operations
• Paper output

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Chargeback Methods

• Desirable Chargeback Features
• Accountability
• Controllability
• Timeliness
• Congruence with organizational goals
• Chargeback Criticism
• Expense may discourage IT initiatives
• High rates can be frustrating
• Overhead Expenditures
• Research and development
• Corporation-wide data communications

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Careers inInformation Systems

• Systems analyst
• Limited analysis of business needs and ISs
• Updates and maintains existing ISs
• Designs new ISs
• Analyzes system requirements from user input
• Documents efforts and system features
• Provides specifications for programmers
• Agents of change
• Good persuasion and presentation skills

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Careers inInformation Systems
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Careers inInformation Systems

• Database Administrator (DBA)
• Responsible for data architecture of an
  organization
• Planning and design
• Physical organization and storage
• Logical organization Schema development
• Data dictionary development and maintenance
• Security measures for access and proper use
• Failure recovery and back-up measures
• Updates and data integrity
• Interfaces of internal databases with other ISs
• Database personnel management

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Careers inInformation Systems

• Telecommunications Manager
• Responsible for computer networks
• Acquisition
• Implementation
• Management
• Maintenance
• Troubleshooting
• Assesses future needs of the business

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Careers inInformation Systems

• Webmaster
• Creates and maintains Web site and intranet pages
• Must know Web technology, business strategy,
  security
• Chief Information Officer (CIO)
• Responsible for all aspects of ISs
• Oversees IS research and development
• Oversees IS infrastructure development
• Serves as chief technologist
• Serves as chief agent of change

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Careers inInformation Systems

• Chief Knowledge Officer (CKO)
• Responsible for finding strategically important
  knowledge resources
• Accumulates, organizes, and retrieves information
• Chief Learning Officer (CLO)
• Independent Consultant
• Offers services to companies that lack qualified
  personnel for specific tasks

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Ethical and Societal IssuesGasping for IT Skills

• Demand Keeps Growing
• Projected 2 million additional designers,
  programmers, and maintenance and repair workers
  needed over the next seven years
• 1.8 million computer engineers, computer
  scientists, and systems analysts needed by 2006
• Ironically, high demand and benefits not
  attracting students to IT programs

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Ethical and Societal IssuesGasping for IT Skills

• One Strategy That Worked
• Irish government subsidized tuition for students
  in technological programs
• Second largest exporter of software
• 60 percent of incoming university students enroll
  in technological programs per year
• Promoting National IT
• Should government subsidize technological
  education?
• Proponents Benefits all society
• Detractors Objectionable intrusion on personal
  pursuits and allocation of tax money