Introduction to MIS 1

Copyright © 1998-2002 by Jerry Post

Introduction to MIS

Chapter 13

Organizing the MIS Resources

Introduction to MIS 2

Organizing IS Resources

Operations

Tactics

Strategy

Introduction to MIS 3

Outline Managing Information Systems Functions MIS Roles MIS Jobs International Comparisons Outsourcing MIS Organization: Centralization Intranets and Thin Clients Cases: Financial Services Appendix: Project Management

Introduction to MIS 4

Hardwareadministration

Softwaredevelopment

Support end userdevelopment

Databaseadministration

Advocacy

Access tocorporate data

Software trainingand support

Corporatecomputingstandards

MIS Roles Hardware administration Software support Corporate data access Software development End user support Computing standards DB administration Advocacy

Introduction to MIS 5

Network and Telecommunications

Hardware Repair

Training and User Support

Some MIS Roles

Introduction to MIS 9

Salaries 2001IS Management

Operations

NetworksSystems Development

User Support

http://careers.wsj.comhttp://www.computerworld.com

CIO/VP IS/CTO $165,000

Director $106,000Manager 74,000Lead operator 42,000Computer operator 35,000

Director $106,000Manager 83,000Administrator 60,000Network analyst 40,000Junior analyst 34,000

Manager $69,000Help desk operator 40,000PC technical support 43,000

Director $123,000Manager 88,000Project manager 85,000System analyst 79,000Senior developer 74,000Programmer/analyst 55,000Junior programmer 45,000

Includes bonus

Database

Manager $94,000Administrator 89,000Database analyst 67,000

InternetManager $94,000Webmaster 72,000Application developer 70,000EC specialist 74,000EDI specialist 66,000

Security

Manager $86,000Administrator 72,000Specialist 64,000IS audit manager 81,000IS audit staff 53,000

Introduction to MIS 11

International Salaries

Nation Programmer/Analyst Salary

United States 55,000

Britain 57,000

Russia 10,800

India 2,508

Introduction to MIS 13

Skills in Demand

Rank 2001 1998 1994

1 ERP ERP Networking

2 Object engineering Groupware Database

3 Data warehouse and data visualization

Database UNIX

4 Groupware Networking Visual Basic

5 Wireless COBOL COBOL

Introduction to MIS 15

Outsourcing

Company 1991 1995 1997 1999 2000

IBM Global Services 0.4 17.7 24.6 35.0 37.0

EDS 1.2 12.4 15.2 18.7 19.2

CSC 0.4 4.2 6.6 9.4 10.5

Accenture 0.5 4.2 6.3 9.5 9.8

ADP 0.3 3.0 4.9 6.3 7.0

Affiliated Computer 0.16 0.4 1.2 2.0 2.1

Fiserv 0.23 0.7 1.0 1.4 1.7

Perot Systems 0.16 0.3 0.8 1.2 1.1

Total (billion dollars) 3.4 42.9 60.6 83.5 88.4

Introduction to MIS 16

Specialized Talent Needed

Complex Market Structure

Security & ControlLevel ofTechnology

Cost of reachingstate of the art

Fixed Costs

When any of these characteristics increases (moves outwards), there is less reason to use outsourcing.

Outsourcing Evaluation

Introduction to MIS 17

OutsourcingForces

Globalization, new competitors.

Shorter product life-cycles,mass customization.

Rapidly changing markets,flexible manufacturing.

Pressure on profits.

Need to focus on increasingrevenues and decreasingfixed/semi-fixed costs.

Need for flexibilityand responsiveness.

Outsourcenon-revenuegenerate functions(staff/operations)

Desire to minimize amountof management time devotedto non-revenue generatingfunctions.

Economies of Scale- leverage expertise and methodologies.- invest in expensive technologies (state-of-the-art)- process-oriented approach

Economies of ScopeWant one vendor toprovide multiplefunctions.

Cost cutting, staff cuts,loss of middle management.

Big Outsourcing Vendors& Big 6 Firms

Introduction to MIS 18

Summary of MIS Organization

Introduction to MIS 19

Data andsoftware

MIS personnel

Hardware

User departments

Complete Centralization

Introduction to MIS 20

Hardware CentralizationAdvantages Easier to share

Data Expensive hardware (printers)

Easier to control Purchases Usage

Less duplication Efficiency — less unused resources

Introduction to MIS 21

Software CentralizationAdvantages Compatibility

Bulk buying discounts Easier training Ease of maintenance & upgrades

Introduction to MIS 22

Data CentralizationAdvantages Easy backup

Easier to Share Less duplication Security control\monitoring

Introduction to MIS 23

Personnel CentralizationAdvantages Workers with similar backgrounds

Easier training Straightforward growth path Specialized staff Easier to see/control costs

Introduction to MIS 24

Growth of PCs

Worldwide Computer Sales

0%

10%20%

30%40%

50%

60%70%

80%90%

100%

1970 1980 1990 1995 1998

Year

Sh

are

of

Mar

ke

t V

alu

e

Server

Midrange

Personal

Introduction to MIS 25

MIS personnel are members of user departments

Marketing

Finance

Accounting

Human Resource Management

Complete Decentralization

Introduction to MIS 26

Hardware DecentralizationAdvantages Less chance of total breakdown

Users get personalized equipment Micros are cheaper than mainframes

Introduction to MIS 27

Software DecentralizationAdvantages

Different users have different preferences Easier access Customization without affecting others Can overcome objections

Lower prices minimize benefits of bulk purchases. Similarities of packages make training easier. Conversion tools enable sharing.

Introduction to MIS 28

Data DecentralizationAdvantages

Not all data needs to be shared Easier find and access Control & politics

Introduction to MIS 29

Personnel DecentralizationAdvantages

Closer to users Faster response More time spent with users Better understanding/communication

Different career path

Introduction to MIS 30

Thin Clients

ServerData and applications

Thin clientBrowser-based access

User interface

Introduction to MIS 31

Intranet Network Solutions

High-bandwidth connections between servers.

Standard Internet connections to users.

Introduction to MIS 32

Simple Object Application Protocol

Bank Server

Your Company Server

Manager or Client

The Internet

Your Financial ApplicationYear Revenue Cost

2000 34,231€ 27,333€ 2001 39,983€ 32,132€ 2002 36,421€ 31,456€

Sales and Costs

€-

€10,000

€20,000

€30,000

€40,000

€50,000

2000 2001 2002

Revenue

Cost

Bank Service

Currency converter: Date, InCurrency, Outcurrency

SOAP

Introduction to MIS 35

Organizational

Are operations interdependent? -planning -development -physical resources -operations

Can subunits relate solely through information & messages?

Does corporate culture support decentralization?

Strengths

End users gain control.

Supports workgroups.

Enables new organizational structures.

Increased organizational flexibility.

Weaknesses

Possible short term bias in decision making.

Might not be optimal use of resources for corporation.

IS staff might lose cohesiveness and support.

Decentralization Summary

Introduction to MIS 36

Cases: Financial Services

Introduction to MIS 37

Cases: Fidelity InvestmentsCharles Schwab & Co.

What is the company’s current status?

What is the Internet strategy?

How does the company use information technology?

What are the prospects for the industry?

www.fidelity.com

www.schwab.com

Introduction to MIS 38

Appendix: Project Management Projects

Goal Need a well-defined goal Good example: Put a man on the moon. Bad example: Improve the IRS information systems.

Scope Size and complexity of the project. Match the management techniques to the project scope.

Schedule Break project into tasks Tasks depend on other tasks (you can’t paint a wall until it is

built). Tasks take time to complete (duration) Tasks require resources.

Resources Worker time is usually the most important to schedule. Workrooms, machinery, and so on.

Introduction to MIS 39

Project Management Steps Define the project. Create the plan. Track and manage the project as it proceeds. Close the project when the goal is achieved

or the project is cancelled.

Introduction to MIS 40

Microsoft Project Specialized database

Tasks (start, duration, description, dependence) Resources (costs, needs, assignments)

Specialized views of the data Gantt Chart Highlight task duration. PERT Chart Highlight task dependence. Calendar Show scheduled tasks. Task Usage Show assigned resources. Tracking Gantt Compare estimates to

actual. Task Sheet Detailed task data.

Resource views Resource Graph Track resources over time. Resource Sheet Detailed resource data. Resource Usage Tasks assigned to

resources.

Introduction to MIS 41

Sample: Spring Forward CenturySunday, April 2, 200025 miles50 miles100 miles Choose starting point

Legal paperwork Establish routes Create databases Create promotional materials Create commemorative shirts Register riders Organize volunteer groups Advertise ride Plan rest stops Plan registration

Final clean up Thank you notes Write project notes

Planning the ride

After the ride

Ride day is a separate project

SpringForwardCentury.mpp

Organize Spring Forward Century.mpp

Introduction to MIS 42

Microsoft Project: Gantt ChartOrganize Spring Forward Century.mpp

Introduction to MIS 43

Gantt Chart (continued)

Introduction to MIS 44

200%

400%

600%

800%

1,000%

1,200%

1,400%

1,600%

Peak Units:

Self Overallocated: Allocated:

2/23 3/2 3/9 3/16 3/23 3/30 4/6 4/13Feb 23, '03 Mar 2, '03 Mar 9, '03 Mar 16, '03 Mar 23, '03 Mar 30, '03 Apr 6, '03 Apr 13, '03

200% 1,100% 1,100% 500% 200% 1,500%

Resource Usage

200%

400%

600%

800%

1,000%

1,200%

1,400%

1,600%

Peak Units:

Self Overallocated: Allocated:

T F S S M T W T F S S MMar 23, '03 Mar 30, '03 Apr 6, '03

100% 100% 300% 100% 100% 100% 300% 1,500%

You need to get some tasks done sooner,or get more volunteers on the day before the ride.

You need to start earlier, or get volunteersto do more of the organizing tasks.

Introduction to MIS 45

Ride DaySpringForwardCentury.mpp

ID Task Name Duration

1 Set up registration 1 hr

2 Set up tents 0.25 hrs

3 Set up tables 0.25 hrs

4 Unload shirts 0.25 hrs

5 Review registration procedures0.25 hrs

6 Regis ter riders 2 hrs

7 Rest stop 1: 25-mid 2 hrs

8 Rest stop 2: 50/100-20 mile 2 hrs

9 Rest stop 3: 50/100-35 mile 3 hrs

10 Rest stop 4: 100-50 mile 2.5 hrs

11 Rest stop 5: 100-65 mile 2.5 hrs

12 Rest stop 6: 100-75 mile 2.5 hrs

13 Rest stop 7: 100-88 mile 2.5 hrs

14 SAG Route 1-1: 25 miles 1 hr

15 SAG Route 1-2: 25 miles 1 hr

16 SAG Route 1-3: 25 miles 1 hr

17 SAG Route 1-4: 25 miles 1 hr

18 SAG Route 1-5: 25 miles 1 hr

19 SAG Route 2-1: 50 miles 2 hrs

20 SAG Route 2-2: 50 miles 2 hrs

21 SAG Route 2-3: 50 miles 2 hrs

22 SAG Route 3-A1 : 100 miles 4 hrs

23 SAG Route 3-A2: 100 miles 4 hrs

24 SAG Route 3-B1 : 100 miles 4 hrs

25 SAG Route 3-B2 : 100 miles 4 hrs

26 Prepare for rider return 3 hrs

27 Enter applications in database3 hrs

28 Enter 15 mile riders 1 hr

29 Enter 25 mile riders 1 hr

30 Enter 100 mile riders 1 hr

31 Sort shirts 0.25 hrs

32 Count money 0.5 hrs

33 Press conference to donate money 1 hr

34 Clean up 3.5 hrs

35 Pack paperwork, shirts, and material0.5 hrs

36 Take down tables 0.5 hrs

37 Take down tents 1 hr

38 Clean area 1 hr

39 Deposit money 0.5 hrs

Drivers,Mechanics,Food stop service

Registration

Registration

Self

Registration[400%]

Food stop service[200%]

Food stop service[200%]

Food stop service[200%]

Food stop service[200%]

Food stop service[200%]

Food stop service[200%]

Food stop service[200%]

Drivers

Drivers

Drivers

Drivers

Drivers

Drivers

Drivers

Drivers

Drivers

Drivers

Drivers

Drivers

Self

Self

Self

Registration

Self

Self

Registration

Registration

Drivers,Food stop service,Registration,Miscellaneous

Miscellaneous,Registration,Food stop service

Self

6:00 AM 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM