Information Systems and the Role of General and Functional Managers Chapter 1 Information Systems and the Role of General and Functional Managers Why every modern manager must be proficient with Information Systems © Gabriele Piccoli

Course Roadmap Part I: Foundations Chapter 1: Introduction Chapter 2: Information Systems Defined Chapter 3: Organizational Information Systems and Their Impact Part II: Competing in the Internet Age Part III: The Strategic use of Information Systems Part IV: Getting IT Done © Gabriele Piccoli

Learning Objectives To define the terms general manager, functional manager, and end user. You will also learn to articulate the difference between these concepts. To define the role of the modern chief information officer (CIO). To identify organizational and information technology trends that have led to the current popularity of IT-based information systems. To identify why it is important for general and functional managers to be involved in information systems decisions. To identify, and avoid, the risks that arise when general and functional managers decide to abdicate their right (and duty) to make important information systems decisions. © Gabriele Piccoli

Introduction It is very hard to escape the hype and publicity surrounding information technology (IT) and its business applications A key driving force has been the affordability and accessibility of IT and business applications This has resulted in IT and business applications becoming critical investments for business operations © Gabriele Piccoli

Basic Manager Definitions Manager: A trained, knowledgeable worker who is in charge of a team and often holds a master’s degree in management or business administration General Manager: Manager in charge of an entire organization or business unit Functional Manager: Manager in charge of a functional area or team © Gabriele Piccoli

The Importance of IS “All the value of this company is in its people. If you burned down all our plants, and we just kept our people and our information files, we should soon be as strong as ever.” ~Thomas Watson Jr. © Gabriele Piccoli

What This Means For You Selecting, designing, and managing IT and building IS: Not a job for the “IT guy” Modern general and functional managers are responsible for working in partnership with IT professionals. © Gabriele Piccoli

Critical Lessons Managers have to make educated decisions about the use of IT Organizations use new IT to serve growing/changing business needs Savvy managers partner with IT pros to ensure the success of information systems Managers may or may not be end-users of the new systems they help to create © Gabriele Piccoli

What is an End User? End User: Individuals who have direct contact with software applications. Anyone who uses a software program is an end-user Students who use office productivity tools to write papers Customers who use online systems to order goods & services Suppliers who use business systems to deliver goods & services Managers & employees who use simple office productivity programs (MS Office) or advanced programs (organizational business systems) for their day-to-day activities © Gabriele Piccoli

The End User Comes into direct contact with the technology: Software and hardware Uses the technology to complete their day-to-day work and improve their own productivity General and Functional Managers are often also end-users, but their critical skills are different General and Functional Managers must: Understand the role that IT plays in an information system Be able to identify opportunities to use IT to their organization’s advantage Plan for the effective use of IS resources Manage the design, development, selection, and implementation of organizational information systems © Gabriele Piccoli

Organizational Priorities Adapted from Gartner EXP (January 2010) © Gabriele Piccoli

Next Wave of CIOs Increasing prevalence of IT → necessary understanding of how to use resources Broad view of operations, business processes, inter-organizational coordination challenges, and opportunities Broad understanding of how the firm is positioned to execute strategies No longer seen as the endpoint of a career but as a stepping stone to other executive positions (CEO, president, etc.) © Gabriele Piccoli

Key CIO Skills Perpetually develop the IT Team/Organization Effectively manage change while in pursuit of: Marketplace Innovation Process Improvement Maximum Agility Leverage of Legacy Systems Achieve 100% Customer Satisfaction Consistently improve business performance © Gabriele Piccoli

What’s an Information System? An organizational system that enables the processing and management of an organization’s information © Gabriele Piccoli

Key IT Trends IT enables new strategy, initiatives and effective management Processing power, storage capacity and battery life continues to increase rapidly IT costs continue to decline rapidly IT continues to improve in user friendliness, thus becoming accessible to more and more people © Gabriele Piccoli

Key IT Trends Data storage cost continues to decline More and more devices are networked Intelligent devices are now mainstream Used with permission from David Becker/ Getty Images, Inc. © Gabriele Piccoli

Implications of IT Trends Computing power (computation and storage) increases. Cost of computing power declines Cost of data transmission declines Network bandwidth increases Computers become interconnected Computers become easier to use Digitization and miniaturization increase Interconnected computing devices become more pervasive and embedded in more aspects of our lives © Gabriele Piccoli

Effects of Managerial Significance Huge increases in capital expenditures related to IT has resulted in: Advances in communication systems Affordable high-speed Internet access Reliance on instant messaging tools Access to entertainment options Access to games & movies online Increased productivity Management relying on newer intelligence tools to improve decision making capability © Gabriele Piccoli

Hiring the “Right” IT Person Managers’ skills are complementary to those of IT professionals Communication and a good relationship are critical to capitalizing on those skills Hiring “good” IT professionals and letting them worry about all the IT stuff does not work © Gabriele Piccoli

The Recap Chief information officers (CIOs) are increasingly being selected from the functional and managerial ranks rather than from the technology ranks. This job is no longer looked at as a dead-end. CIOs move on to CEO or President positions The enduring effects of Moore’s law have led to increasingly powerful yet cheaper computing declining costs of computer memory dramatic improvement in the ease and breadth of use of digital devices Network connectivity and storage capacity, improved battery life for portable devices, and the proliferation of intelligent devices have dramatically changed the business and social landscape © Gabriele Piccoli

The Recap Managers can no longer abdicate their right, and duty, to be involved in information systems and IT decisions Managers must act in partnership with the firm’s information systems and technology professionals The skilled manager is one who can: use information technologies to the firm’s advantage properly plan & manage the firm’s information systems resources manage, design, develop, select, and implement information systems © Gabriele Piccoli

What We Learned To define the terms general manager, functional manager, and end user. You also learned to articulate the difference between these concepts. To define the role of the modern chief information officer (CIO). To identify organizational and information technology trends that have led to the current popularity of IT-based information systems. To identify why it is important for general and functional managers to be involved in information systems decisions. To avoid the risks of abdicating your right (and duty) to make important information systems decisions. © Gabriele Piccoli