1 Chapter 10 Organizing Information Technology Resources

2 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.

3 Information Systems Architecture and Management Managerial styles mostly fall somewhere between two extremes: Centralized Decentralized

4 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

5 Information Systems Architecture and Management Figure 10.1 In centralized IS architecture, information resources are maintained on one or several large computers that are centrally controlled.

6 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

7 Information Systems Architecture 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.

8 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.

9 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

10 Information Systems Architecture and Management Figure 10.4 Centralized vs. decentralized IS trade-offs

11 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

12 Information Systems Architecture and Management Figure 10.5 Centralized management of ISs

13 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

14 Information Systems Architecture and Management Figure 10.6 Decentralized management of ISs (in fully decentralized management, the central IS unit would not exist)

15 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

16 Organizing the IS Staff Figure 10.7 An example of an IS unit’s organization with centrally managed ISs

17 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 unit’s own budget. Small central unit can coordinate IS for larger, more complex enterprise-wide IS projects.

18 Organizing the IS Staff Figure 10.8 An example of IS personnel locations in an organization with functionally managed ISs

19 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.

20 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 can’t do Candid explanations of what IS can and can’t do Honest budgeting Single point of contact

21 Challenges for IS Managers and Line Managers IS Managers’ Expectations of Line Managers Business Planning Systems Planning Systems Selection or Development

22 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

23 Chargeback Methods Two ways to treat cost of IS function Part of overhead cost: General shared expense Chargeback system: Units charged for services

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

25 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

26 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

27 Careers in Information Systems Figure The multiple roles of a systems analyst.

28 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

29 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

30 Careers in Information Systems Webmaster Creates and maintains Web site and intranet and extranet’s 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

31 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

32 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

33 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 Promoting National IT Should government subsidize technological education? Proponents: Benefits all society Detractors: Objectionable intrusion on personal pursuits and allocation of tax money