management information systems, 4 th edition 1 chapter 10 organizing information technology...

Management Information Systems, 4th Edition 1

Chapter 10Organizing Information Technology Resources

Management Information Systems, 4th Edition 2

Learning Objectives• Describe the ways in which information technology

personnel are deployed in organizations

• List and explain the advantages and disadvantages of various personnel deployments

• Explain the importance of collaboration between IS managers and business managers, and describe the relationships between the two groups

• Contrast the advantages and disadvantages of charge-back methods for IS services

• Describe career paths and responsibilities in the IS field

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Management of Information Technology Resources

• Centralized Management– Staff positions and departments in strict vertical

hierarchy

– Control of organization in few hands

• Decentralized Management– Delegates authority to lower-level managers

• IS often follows management pattern

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Centralized vs. Decentralized Management

• Advantages of Centralized IS Management– Standardized hardware and software

– Efficient administration of resources

– Effective staffing

– Easier training

– Common reporting systems

– Effective planning of shared systems

– Easier strategic planning

– Efficient use of IS personnel

– Tighter control by top management

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Centralized vs. Decentralized Management (Cont.)

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• Advantages of Decentralized IS Management

– Better fit of ISs to business needs

– Timely response of IS units to business demands

– Encouragement of end-user development of applications

– Innovative use of ISs

– Support for delegation of authority

– Less competition for resources

Centralized vs. Decentralized Management (Cont.)

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Centralized vs. Decentralized Management (Cont.)

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Centralized vs. Decentralized Management (Cont.)

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Organizing the IS Staff

• Central IS Organization: A corporate IS team over all units

– IS Director oversees several departments

– Usually involved in every aspect of IT

– Often includes a steering committee

– Often easier to integrate an IS plan in a centralized IS organization

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Organizing the IS Staff (Cont.)

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• Dispersed IS Organization

– Each unit fulfills its IS needs individually

– Each business unit has one or several IS professionals

– Funds for development and maintenance of unit’s IS own budget

– Decisions made independently

Organizing the IS Staff (Cont.)

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Organizing the IS Staff (Cont.)

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• A Hybrid Approach

– Small companies use the central approach

– Midsize and large use elements of central and decentralized approaches

– Handled according to the position of the highest IS officer in the organizational structure

Organizing the IS Staff (Cont.)

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Business Managers’ Expectations of an IS Unit

• Broad understanding of business activities

• Flexibility and adaptability

• Prompt response to the information needs of the business unit

• Clear, jargon-free explanation of what technology can and cannot do for the unit

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• Candid explanations of what information systems can and cannot do

• Honest budgeting

• Single point of contact

Business Managers’ Expectations of an IS Unit (Cont.)

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• Business planning

• Systems planning

• Systems selection or development

• Participation and partnership

IS Manager Expectations of Business Managers

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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

• Service Charges

– Staff hours

– Computer hardware

– Computer time

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• Service Charges (cont.)

– External storage space

– Departmental Web site space

– Desirable Chargeback Features

• Accountability

• Controllability

• Timeliness

• Congruence with organizational goals

Chargeback Methods (Cont.)

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• Service Charges (cont.)

– Chargeback Criticism

• Expense may discourage IT initiatives

• High rates can be frustrating

• Overhead Expenditures

– Research and development

– Corporation-wide data communications

Chargeback Methods (Cont.)

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Careers in Information Systems • The Systems Analyst

– Analysis of business needs and ISs

– Setting up of business applications

– Designing new ISs and maintaining existing ISs

• Analyze system requirements from user input

• Documenting efforts and system features

• Providing specifications for programmers

– Agents of change

• Good persuasion and presentation skills

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Careers in Information Systems (Cont.)

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Careers in Information Systems (Cont.)

• 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 in Information Systems (Cont.)

• The Network Administrator– Responsible for computer networks

• Acquisition

• Implementation

• Management

• Maintenance

• Troubleshooting

– Assesses future needs of the business

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Careers in Information Systems (Cont.)

• Webmaster– Creates and maintains Web site and intranet pages

• Must know Web technology, business strategy, security

• Chief Information Officer (CIO) and Chief Technology Officer (CTO)– Oversees IS research and development

– Oversees IS infrastructure development

– Serves as chief technologist

– Serves as chief agent of change

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Careers in Information Systems (Cont.)

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Careers in Information Systems (Cont.)

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• The Chief Security Officer

– Reports to the CIO or the CEO

– Security is sometimes classified as a business issue, not an IT issue

– Major challenge is misperception that security is an inhibitor rather than an enabler to operations

Careers in Information Systems (Cont.)

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Careers in Information Systems (Cont.)

• 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

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Ethical and Societal IssuesGasping for IT Skills (Cont.)

– Promoting National IT

• Should government subsidize technological education?

• Proponents: Benefits all society

• Detractors: Objectionable intrusion on personal pursuits and allocation of tax money

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Summary

• Information technology personnel can be deployed in different ways

• There are advantages and disadvantages to different personnel deployments

• Collaboration between IS managers and business managers is important

• Charge back methods have advantages and disadvantages