Chapter 10 Organizing Information Technology Resources

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Chapter 10Organizing Information Technology
Resources
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Learning Objectives

• When you finish this chapter, you will be able
  to
• Describe the different ways in which ISs are
  deployed in organizations.
• List and explain the advantages and disadvantages
  of each IS architecture.
• Explain the importance of collaboration between
  IS managers and line managers, and understand 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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Information Systems Architecture and Management

• Managerial styles mostly fall somewhere between
  two extremes
• Centralized
• Decentralized

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Information Systems Architecture and Management

• Mainframes, by nature dictated IS architecture be
  centralized
• Great Advantage
• High degree of control
• Easy to maintain hardware, software, procedure,
  and operation standards
• control access to information
• Main Disadvantage
• Inflexible

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Information Systems Architecture and Management
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Information Systems Architecture and Management

• Decentralized Information Systems Architecture
• Allows departments and remote sites large degree
  of independence in organizing and utilizing their
  IS
• Disadvantages
• Difficult to share applications and data
• Expensive to establish maintenance and service
  contracts with many vendors

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Information Systems Architecture and Management
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Information Systems Architecture and Management

• Distributed Information Systems
• Distributed architecture
• Each unit selects and implements its own system.
• Remote units can share resources through
  communication lines.
• Many organizations changing to distributed
  architecture.
• Increased reliability and affordability of data
  communication and PC technology have encouraged
  this.

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Information Systems Architecture and Management
Figure 10.3 In distributed IS architecture,
workers use the information resources of their
own site or department, but can also use the
resources of other sites or departments through
communication lines
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Information Systems Architecture and Management
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Information Systems Architecture and Management

• Centralized vs. Decentralized ISs Advantages and
  Disadvantages
• Advantages of Centralized IS Management
• Standardized hardware and software
• 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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Information Systems Architecture and Management
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Information Systems Architecture and Management

• Advantages of Decentralized IS Management
• Better fit of ISs to business needs
• Timely responsiveness of IS units to business
  demands
• Encouragement of end user application development
  
• Innovative use of ISs
• Support for delegation of authority

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Information Systems Architecture and Management
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Organizing the IS Staff

• Central IS Organization
• IS Director oversees several departments
• Implement and maintain current systems
• Information center
• Communications department
• Data administration department
• Large organizations may have a research and
  development department
• Involved in virtually every aspect of IT
• Steering committee oversees IS services

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Organizing the IS Staff
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Organizing the IS Staff

• Functional IS Organization
• Each unit fulfills IS needs independently.
• Each business unit has one or several IS
  professionals who report to the unit manager.
• Funds come from units own budget.
• Small central unit can coordinate IS for larger,
  more complex enterprise-wide IS projects.

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Organizing the IS Staff
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Organizing the IS Staff

• The Best of Both Approaches
• Small companies typically use central approach to
  IS personnel.
• Central or functional IS organization is rare
  among midsize and large companies.
• Regardless of IS management, implementation
  depends on position of highest IS officer.
• Reports to VP IS provides technical solutions
• Reports to CEO IS more involved in strategic
  planning
• They search for opportunities rather than just
  solving problems.

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Challenges for IS Managers and Line Managers

• Line Managers Expectations of an IS Unit
• Broad understanding of business activities
• Prompt response to information needs
• Clear explanation of what technology can and
  cant do
• Candid explanations of what IS can and cant do
• Honest budgeting
• Single point of contact

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Challenges for IS Managers and Line Managers

• IS Managers Expectations of Line Managers
• Business Planning
• Systems Planning
• Systems Selection or Development

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The Information Center

• Coordination and Control
• Hardware and software purchases
• Application development
• Development and use of databases by end users
• Especially challenging when organization is
  involved in mergers and acquisitions.
• Support
• Training and response to requests for help
• Help desk Troubleshoot on demand

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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

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Chargeback Methods

• Service Charges
• What is chargeable?
• Personnel hours
• Computer time
• External storage space
• Number of input and output operations
• Paper output

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Chargeback Methods

• Desirable Chargeback Features
• Accountability
• Controllability
• Timeliness
• Congruence with organizational goals
• Chargeback Criticism
• Expense may discourage IT initiatives
• High rates can be frustrating
• Overhead Expenditures
• Research and development
• Corporation-wide data communications

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Careers in Information Systems

• Systems analyst
• Limited analysis of business needs and ISs
• Updates and maintains existing ISs
• Designs new ISs
• Analyzes system requirements from user input
• Documents efforts and system features
• Provides specifications for programmers
• Agents of change
• Good persuasion and presentation skills
• Workers tend to resist change

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Careers inInformation Systems
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Careers in Information Systems

• 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
• Procedures to ensure updates and data integrity
• Plan and implement interfaces of internal
  databases with other ISs
• Database personnel management

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Careers in Information Systems

• Telecommunications Manager
• Responsible for computer networks
• Acquisition
• Implementation
• Management
• Maintenance
• Troubleshooting
• Assesses future needs of the business
• Must be well versed in network protocols
• Often involved in selection and implementation of
  network security measures
• Firewalls
• Access codes

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Careers in Information Systems

• Webmaster
• Creates and maintains Web site and intranet and
  extranets pages
• Must know Web technology, business strategy,
  security
• Chief Information Officer (CIO) and Chief
  Technology Officer (CTO)
• Responsible for all aspects of ISs
• 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

• Chief Knowledge Officer (CKO)
• Responsible for finding strategically important
  knowledge resources
• Accumulates, organizes, and retrieves information
• If responsible for learning, may be called Chief
  Learning Officer (CLO)
• Looks for ways to retain knowledge accumulated
  over time
• Ensure managers and other professionals have
  access to resources
• 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
• Promoting National IT
• Should government subsidize technological
  education?
• Proponents Benefits all society
• Detractors Objectionable intrusion on personal
  pursuits and allocation of tax money