management information systems, 4 th edition 1 chapter 10 organizing information technology...
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Management Information Systems, 4th Edition 1
Chapter 10Organizing Information Technology Resources
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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 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
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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
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Management Information Systems, 4th Edition 5
Centralized vs. Decentralized Management (Cont.)
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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.)
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Management Information Systems, 4th Edition 7
Centralized vs. Decentralized Management (Cont.)
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Management Information Systems, 4th Edition 8
Centralized vs. Decentralized Management (Cont.)
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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
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Management Information Systems, 4th Edition 10
Organizing the IS Staff (Cont.)
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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.)
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Management Information Systems, 4th Edition 12
Organizing the IS Staff (Cont.)
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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.)
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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
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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.)
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Management Information Systems, 4th Edition 16
• Business planning
• Systems planning
• Systems selection or development
• Participation and partnership
IS Manager Expectations of Business Managers
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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
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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.)
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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.)
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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
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Management Information Systems, 4th Edition 21
Careers in Information Systems (Cont.)
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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
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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
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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
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Management Information Systems, 4th Edition 25
Careers in Information Systems (Cont.)
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Management Information Systems, 4th Edition 26
Careers in Information Systems (Cont.)
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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.)
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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
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Management Information Systems, 4th Edition 29
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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Management Information Systems, 4th Edition 30
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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Management Information Systems, 4th Edition 31
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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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