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Management Information Systems, Second EditionEffy Oz
Chapter 10Chapter 10Organizing Information Organizing Information Systems and ServicesSystems and Services
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Learning ObjectivesLearning Objectives
When you finish this chapter, you will
Understand the different ways in which ISs are deployed in organizations.
Be able to list and explain the advantages and disadvantages of each IS architecture.
Know the importance of collaboration between IS managers and line managers, and understand the relationships between the two groups.
Be able to describe career paths and responsibilities in the IS field.
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Information Systems Information Systems Architecture and ManagementArchitecture and Management
Centralized Information Systems Architecture Mainframes dictated IS architecture be centralized
Advantages High degree of control Easy to maintain hardware, software, procedure, and
operation standards Easy control of access to information
Disadvantages Inflexible Lack of customization
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Information Systems Information Systems Architecture and ManagementArchitecture and Management
Figure 10.1 In centralized IS architecture, information resources are maintained on one or several large computers that are centrally controlled.
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Information Systems Information Systems Architecture and ManagementArchitecture and Management
Decentralized Information Systems Architecture
Allows departments and remote sites independence in organizing and using their ISs
Local IS department establishes infrastructure
Disadvantages Difficult to share applications and data among units Expensive to maintain and service different systems
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Information Systems Information Systems Architecture and ManagementArchitecture and Management
Figure 10.2 In decentralized IS architecture, workers at different sites and departments (A, B, C) use information resources that are dedicated to their site or department.
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Information Systems Information Systems Architecture and ManagementArchitecture and Management
Distributed Information Systems
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
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Information Systems Information Systems Architecture and ManagementArchitecture 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 Information Systems Architecture and ManagementArchitecture and Management
Figure 10.4 Centralized vs. decentralized IS trade-offs
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Information Systems Information Systems Architecture and ManagementArchitecture and Management
Centralized vs. Decentralized ISs: Advantages and Disadvantages
Advantages of Centralized IS Management Standardized hardware and software Easier training Encouragement of common reporting systems Effective planning of shared systems Easier strategic planning Efficient use of IS personnel Accommodation of tight control by top
management
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Information Systems Information Systems Architecture and ManagementArchitecture and Management
Figure 10.5 Centralized management of ISs
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Information Systems Information Systems Architecture and ManagementArchitecture 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 More innovative use of ISs Support for delegation of authority
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Information Systems Information Systems Architecture and ManagementArchitecture and Management
Figure 10.6 Decentralized management of ISs (in fully decentralized management, the central IS unit would not exist)
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Information Systems Information Systems Architecture and ManagementArchitecture and Management
Trends in Information Systems Organization
Discarding Big Iron (mainframe computers) Switch to PCs brings distributed IS architecture benefits. Some companies keep mainframe for processing power.
Reengineering with Information Technology Effort for breakthrough gains through radical business
process and system changes. Almost always leads to integrating IT in all processes.
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Organizing the IS StaffOrganizing the IS Staff
Central IS Organization Corporate IS team serves all units
IS Director oversees departments within IS System development and maintenance Information center Communications Data administration Research and development
Involved in virtually every aspect of IT
Steering committee oversees IS services
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Organizing the IS StaffOrganizing the IS Staff
Figure 10.7 An example of an IS unit’s organization with centrally managed ISs
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Organizing the IS StaffOrganizing 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 unit budget.
Small central unit can coordinate IS for departments that need help.
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Organizing the IS StaffOrganizing the IS Staff
Figure 10.8 An example of IS personnel locations in an organization with functionally managed ISs
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Organizing the IS StaffOrganizing the IS Staff
The Best of Both Approaches
Many companies use elements of both central and functional IS management.
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
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Organizing the IS StaffOrganizing the IS Staff
Figure 10.9 The number of CIOs reporting directly to a CEO has increased in recent years
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Challenges for IS Managers Challenges for IS Managers and Line Managersand 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 can’t do
Candid explanations of what IS can and can’t do
Honest budgeting
Single point of contact
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Challenges for IS Managers Challenges for IS Managers and Line Managersand Line Managers
IS Manager Expectations of Line Managers
Projected list of basic IS needs
Clear explanation of business processes that need support once an IS manager is asked to develop a new system
What features the business manager wants in the new system once general automation process is set
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The Information CenterThe Information Center
Coordination and Control Hardware and software purchases
Application development
Development and use of databases by end users
Support Training and response to requests for help
Help desk: Troubleshoot on demand
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The Information CenterThe Information Center
Figure 10.10 The help desk is an essential resource for IS users.
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Chargeback MethodsChargeback MethodsTwo ways to treat cost of IS function
Part of overhead cost: General shared expense
Chargeback system: Units charged for services
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 MethodsChargeback 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 inCareers inInformation SystemsInformation 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
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Careers inCareers inInformation SystemsInformation Systems
Figure 10.11 The multiple roles of a systems analyst.
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Careers inCareers inInformation SystemsInformation Systems
Database Administrator (DBA) Responsible for database of an organization
Planning and design Adoption of DBMSs and 4GLs 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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Careers inCareers inInformation SystemsInformation Systems
Telecommunications Manager Responsible for computer networks
Acquisition Implementation Management Maintenance Troubleshooting
Assesses future needs of the business
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Careers inCareers inInformation SystemsInformation Systems
Webmaster Creates and maintains Web site and intranet
pages Must know Web technology, business strategy,
security
Chief Information Officer (CIO) 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 Careers in Information SystemsInformation Systems
Figure 10.12 Nine commandments for successful, effective CIOs
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Careers inCareers inInformation SystemsInformation Systems
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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Ethical and Societal IssuesEthical and Societal IssuesGasping for IT SkillsGasping 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 IssuesEthical and Societal IssuesGasping for IT SkillsGasping 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
