Chapter 10

Information Systems Management

Agenda

• Information Systems Department• Plan the Use of IT• Manage Computing Infrastructure• Manage Enterprise Applications• Data Administration• Outsourcing• Users Rights and Responsibilities• Discussion and Case Study

Information Systems Department Functions

• Plan the use of IT to accomplish organizational goals and strategy

• Develop, operate, and maintain the organization’s computing infrastructure

• Develop, operate, and maintain enterprise applications

• Protect information assets

• Manage outsourcing relationships

Information Systems DepartmentOrganization

• Chief information officer (CIO)• Data administration

– Protect data and information assets– Establishing data standards and data management practices and polices

• Technology (CTO)– Investigate new information systems technologies– Determines how the organization can benefit from new IT

• Operations– Manage the computing infrastructure (individual computers, computer centers,

networks, and communications media)– Monitor the user experience and respond to user problems

• Development– Create new information systems– Maintaining existing information systems

• Outsourcing relations– negotiate agreements with other companies to provide equipment, applications,

or other services

Organization Chart

Plan the Use of IT

• Align information systems strategy with organizational strategy– Accomplish organizational goals and objectives

• CIO: communicate IS issues to the executive group– Provide the IS perspective of problems solutions, proposals, and

new initiatives• Develop Priorities and enforce within the IS department

– Prioritize IS project given the constraints of time and budget• Sponsor Steering Committee: meeting schedule and

agenda– Managers from the major business functions– A forum for users to express their needs, frustrations, and other

issues– Set the IS priorities and decide among major IS projects and

alternatives

Manage Computing Infrastructure

• Mirror IS infrastructure with the organizational structure– Centralized and controlled information systems for centralized

organization– Decentralized information systems for decentralized organization

to facilitate autonomous activity• Tasks

– Create and maintain infrastructure for end-user computing– Create, operate, and maintain networks– Create, operate, and maintain data centers, data warehouses,

and data marts– Establish technology and product standards for easy

management and avoiding incompatibility– Track problems, prioritize services, and monitor resolutions for

end-user– Manage computing infrastructure staff (hiring, training, etc.)

IS Operation Group

Manage Enterprise Applications• Software programs span more than one

department– ERP, EAI, SCM, and other inter department

applications

• Tasks– New applications development (approved by steering

committee)– System maintenance (fixing problems, maintaining

legacy system implementing new requirements, monitoring resolutions)

– Enterprise application integration– Staff management (sustaining developers and new

application developers, product quality assurance (PQA) engineers, technical writers )

IS Development Group

Data Administration

• Database administration: a particular database• Data administration: entire data assets of an

organization– Define organizational data standard or metadata:

name, official definition, usage, relationship to other data items, processing restrictions, version, security code, format, owner, and other features

– Maintain data dictionary– Define dynamic data policies (data administrator,

senior executives, the legal department, functional department managers, and others)

– Plan disaster-recovery

Outsourcing

• The process of hiring another organization to perform a service

• Benefits– Management

• Obtain expertise• Avoid management problems• Free up management time

– Cost Reduction• Obtain part time services• Gain economies of scale

– Risk reduction• Cap financial risk• Improve quality• Reduce implementation risk

• International outsourcing issues

Outsourcing Alternatives

• Acquisition and operation of computer hardware

• Acquiring licensed software

• Outsource entire system

• Web storefront

• Entire business function

Outsourcing Problems

• Lost of control– Technology– Intellectual capital– Wrong priority– Vendor internal change– CIO superfluous

• Benefits outweighted by long term costs– High unit cost– Mismanagement– De-facto sole source– Not get what you are pay for

• No easy exit– No critical knowledge employee– Expensive and risky to change vendor

User Rights

• Computer resources to proficiently perform work• Reliable network and Internet connections• A secure computing environment• Protection from virus• Define requirements for new system• Reliable systems development and maintenance• Prompt attention to problems, concerns and complaints• Properly prioritized problem fixes and resolutions• Effective Training

User Responsibilities

• Learn basic computer skills• Learn standard techniques and procedures for using

application• Follow security and backup procedures• Protect password• Use computer resource according organization policies• No unauthorized hardware modifications• Install authorized software• Apply software patches and fixes• Actively participate in defining the requirements for new

systems• Avoid reporting trivial problems

Discussion

• Ethics (309a-b)– State your response to each of the questions in page

309a.– State the best corporate policy for the personal

computer usage at work place.

• Opposing Forces (321a-b)– State the best corporate policy for outsourcing the IT.

• Reflections (325a-b)– State benefits and risks on the international

outsourcing for the U.S business.

Case Study

• Case 10-1 Marriott International, Inc. (330-331): 1, 2, 3, 4 and 5

Points to Remember

• Information Systems Department• Plan the Use of IT• Manage Computing Infrastructure• Manage Enterprise Applications• Data Administration• Outsourcing• Users Rights and Responsibilities• Discussion and Case Study