Management Information Systems, 4th Edition 1 Chapter 9 Organizing 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
Management Information Systems, 4th Edition 3 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
Management Information Systems, 4th Edition 4 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
Management Information Systems, 4th Edition 5 Centralized vs. Decentralized Management (Cont.)
Management Information Systems, 4th Edition 6 • 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.)
Management Information Systems, 4th Edition 7 Centralized vs. Decentralized Management (Cont.)
Management Information Systems, 4th Edition 8 Centralized vs. Decentralized Management (Cont.)
Management Information Systems, 4th Edition 9 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
Management Information Systems, 4th Edition 10 Organizing the IS Staff (Cont.)
Management Information Systems, 4th Edition 11 • 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.)
Management Information Systems, 4th Edition 12 Organizing the IS Staff (Cont.)
Management Information Systems, 4th Edition 13 • 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.)
Management Information Systems, 4th Edition 14 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
Management Information Systems, 4th Edition 15 • Candid explanations of what information systems can and cannot do • Honest budgeting • Single point of contact Business Managers’ Expectations of an IS Unit (Cont.)
Management Information Systems, 4th Edition 16 • Business planning • Systems planning • Systems selection or development • Participation and partnership IS Manager Expectations of Business Managers
Management Information Systems, 4th Edition 17 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
Management Information Systems, 4th Edition 18 • Service Charges (cont.) – External storage space – Departmental Web site space – Desirable Chargeback Features • Accountability • Controllability • Timeliness • Congruence with organizational goals Chargeback Methods (Cont.)
Management Information Systems, 4th Edition 19 • 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.)
Management Information Systems, 4th Edition 20 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
Management Information Systems, 4th Edition 21 Careers in Information Systems (Cont.)
Management Information Systems, 4th Edition 22 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
Management Information Systems, 4th Edition 23 Careers in Information Systems (Cont.) • The Network Administrator – Responsible for computer networks • Acquisition • Implementation • Management • Maintenance • Troubleshooting – Assesses future needs of the business
Management Information Systems, 4th Edition 24 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
Management Information Systems, 4th Edition 25 Careers in Information Systems (Cont.)
Management Information Systems, 4th Edition 26 Careers in Information Systems (Cont.)
Management Information Systems, 4th Edition 27 • 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.)
Management Information Systems, 4th Edition 28 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
Management Information Systems, 4th Edition 29 Ethical and Societal Issues Gasping 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
Management Information Systems, 4th Edition 30 Ethical and Societal Issues Gasping 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
Management Information Systems, 4th Edition 31 Ethical and Societal Issues Gasping 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
Management Information Systems, 4th Edition 32 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