Information Systems Management Chapter 11 Information Systems Management

This Could Happen to You: “You’ve Got the Fox in Charge of the Hen House” Fox Lake needs a senior manager to manage its IS function Jeff is told he is the best one to do it Conflict of interest issues discovered Security issues for servers, applications, data Scenario video Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Study Questions Q1: Why do you need to know about the IS department? Q2: What are the responsibilities of the IS department? Q3: How is the IS department organized? Q4: What IS-related job positions exist? Q5: How do organizations decide how much to spend on IS? Q6: What are your IS rights and responsibilities? How does the knowledge in this chapter help Fox Lake and you? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q1: Why Do You Need to Know About the IS Department? You might someday be a manger of a business that is too small to hire a full-time IS manager. To avoid problems like those that Jeff will find he has in Chapter 12: You need to understand the responsibilities and duties of the IS department so you can be an effective consumer of the IS department’s resources. To be a better informed and effective business planner or innovator. IS a major element of nearly every organization. Understanding IS responsibilities and organization of IS department is key for every business professional. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q2: What Are the Responsibilities of the IS Department? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Plan for Information Systems and IT Infrastructure Align IT activities with organization’s primary goals and objectives Assess technology and determine if it can be used to advance organization’s goals Agile enterprise infrastructure to support an agile business Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Plan for Information Systems and IT Infrastructure (cont’d) Develop and adapt information systems and IT infrastructure IS department responsible for creating computer networks, servers, data centers, data warehouses, data marts, email systems, VPNs, company blogs, SharePoint sites, and related infrastructure. Maintain information systems, operate and manage infrastructure Managing IT operations Manage development processes Manage outsourcing relations Protect Infrastructure and data from threats Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Experiencing MIS InClass Exercise 11: What’s that Humming Sound? “Green computing”—environmentally conscious computing consisting of: Power management, virtualization, and e-waste management. In this exercise, we focus on power. Proponents of green computing encourage companies and employees to reduce power and water consumption by turning off devices when not in use. Is this issue important? Is it just a concession to environmentalists to make computing professionals appear virtuous? Form a team and develop your own, informed opinion by considering computer use at your campus. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Experiencing MIS InClass Exercise 11: What’s that Humming Sound Experiencing MIS InClass Exercise 11: What’s that Humming Sound? (cont’d) 1. Search the Internet to determine the power requirements for typical computing and office equipment. Consider laptop computers, desktop computers, CRT monitors, LCD monitors, and printers. For this exercise, ignore server computers. As you search, be aware that a watt is a measure of electrical power. It is watts that the green computing movement wants to reduce. 2. Estimate the number of each type of device in use on your campus. Use your university’s website to determine the number of colleges, departments, faculty, staff, and students. Make assumptions about the number of computers, copiers, and other types of equipment used by each. 3. Using the data from items 1 and 2, estimate the total power used by computing and related devices on your campus. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Experiencing MIS InClass Exercise 11: What’s that Humming Sound Experiencing MIS InClass Exercise 11: What’s that Humming Sound? (cont’d) 4. A computer that is in screensaver mode uses the same amount of power as one in regular mode. Computers that are in sleep mode, however, use much less power, say 6 watts per hour. Reflect on computer use on your campus and estimate the amount of time that computing devices are in sleep vs. screensaver or use mode. Compute the savings in power that result from sleep mode. 5. Computers that are automatically updated by the IS department with software upgrades and patches cannot be allowed to go into sleep mode because if they are sleeping they will not be able to receive the upgrade. Hence, some universities prohibit sleep mode on university computers (sleep mode is never used on servers, by the way). Determine the cost, in watts, of such a policy. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Experiencing MIS InClass Exercise 11: What’s that Humming Sound Experiencing MIS InClass Exercise 11: What’s that Humming Sound? (cont’d) a. All user computers run full time night and day. b. All user computers run full time during work hours and in sleep mode during off-hours. c. All user computers are shut off during non-work hours. 6. Calculate monthly cost, in watts, if: Is computer power management during off-hours a significant concern? In comparison to the other costs of running a university, does this issue really matter? Discuss this question among your group and explain your answer. 7. Given your answers to items 1–6: Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q3: How Is the IS Department Organized? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q4: What IS-Related Job Positions Exist? Business analyst Programmer PQA test engineer Technical writer User support rep. Computer technician Network administrator Consultant Service salesperson Small-scale project manager Large-scale project manager Database administrator CTO CIO See Figure 11-3 for details Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Job Positions in the Information Systems Industry Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Job Positions in the Information Systems Industry (cont’d) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Job Positions in the Information Systems Industry (cont’d) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

IT Position Requirements Most positions require business knowledge plus technical knowledge Many require university degrees Most require good verbal and writing skills Think dual major with MIS/CIS to enhance your competitive advantage Accounting and information systems Marketing and information systems Management and information systems HRM and information systems Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q5: How Do Organizations Decide How Much to Spend on IS? Cost-benefit analysis Estimate dollar costs Value tangible costs an tangible benefits Software license (tangible cost) Reduce customer support cost 10% (tangible benefit) Value intangible costs and intangible benefits Value of email system (intangible benefit) Customer dissatisfaction (intangible cost) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q6: What Are Your IS Rights and Responsibilities? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q6: What Are Your IS Rights and Responsibilities? (cont’d) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

How Does the Knowledge in This Chapter Help Fox Lake and You? Jeff needs this knowledge to understand how he should be managing IS and IT resources at Fox Lake. He could have prevented problem you will learn about in Chapter 12. You can use knowledge to be a more informed consumer of IS department services. Help your organization better manage and plan its information systems and IT Infrastructure. Work better with IS department on innovative project you envision that have an IS component. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Ethics Guide: Using the Corporate Computer Suppose you are a manager at a company with the stated policy. “Computers, email, and the Internet are to be used primarily for official company business. Small amounts of personal email can be exchanged with friends and family, and occasional usage of the Internet is permitted, but such usage should be limited and never interfere with your work.” You learn one of your employees has been engaged in the activities listed on following slide. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Ethics Guide: Using the Corporate Computer (cont’d) Playing computer games during work hours Playing computer games before and after work hours Responding to emails from an ill parent Watching DVDs during lunch and breaks Sending emails to plan a party that mostly involves people from work Sending emails to plan a party that involves hardly anyone from work Updating your Facebook page Reading news on CNN.com Checking stock market over Internet Tweeting friends on your computer about your softball win last night. Selling personal items on eBay Paying personal bills online Paying personal bills online when traveling on company business Buying an airplane ticket for an ill parent over the Internet Changing content of a personal website Changing content of a personal business website Buying an airplane ticket for a personal vacation over Internet 1. Explain how you would respond to each situation. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Ethics Guide: Using the Corporate Computer (cont’d) 2. Suppose someone from the IS department notifies you that one of your employees is spending 3 hours a day surfing the web. How do you respond? 3. For question 2, suppose you ask how the IS department knows about your employee and you are told, “We secretly monitor computer usage.” Do you object to such monitoring? Why or why not? 4. Suppose someone from the IS department notifies you that one of your employees is sending many personal emails. When you ask how they know the emails are personal, you are told that they measure account activity and that when suspicious email usage is suspected the IS department reads employees’ email. Do you think such reading is legal? Is it ethical? How do you respond? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Ethics Guide: Using the Corporate Computer (cont’d) If so, does that justify the company reading your email? Does this situation differ from having someone read your personal postal mail that happens to be delivered to you at work? Why or why not? 5. As an employee, if you know that your company occasionally reads emails, does that change your behavior? 6. Write what you think is the best corporate policy for personal computer usage at work. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Guide: Jumping Aboard the Bulldozer Recent media reports blame U.S. job loss to overseas outsourcing Real culprit is increased productivity because of information technology Creative destruction—“Cleansers of the free market” Economic processes remove unneeded jobs; keep economy growing and prospering Economic recovery without binge of new hiring What should you do to protect yours job from being outsourced? Be a business professional who can use technology Use technology and information systems to help your company achieve goals and objectives Define yourself as an innovator Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Active Review Q1: Why do you need to know about the IS department? Q2: What are the responsibilities of the IS department? Q3: How is the IS department organized? Q4: What IS-related job positions exist? Q5: How do organizations decide how much to spend on IS? Q6: What are your IS rights and responsibilities? How does the knowledge in this chapter help Fox Lake and you? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Case Study 11: Marriott International, Inc. Operates and franchises hotels and lodging facilities throughout world 2009 revenue was just over $10.91 billion Marriott groups its business into segments according to lodging facility Major business segments are: Full-service lodging Select-service lodging Extended-stay lodging Timeshare properties Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Case Study 11: Marriott International, Inc. (cont’d) Three top corporate priorities are: Profitability Preference (traveler) Growth Revenue management system adjusts prices in accordance with real-time demand Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Case Study 11: Marriott International, Inc. (cont’d) Marriott developed two different revenue management systems, one for premium hotels and one for lower-priced properties. Both developed using pre-Internet technology Required installing updates locally, which was expensive and problematic Two systems required separate interfaces for entering prices into a centralized reservation system. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Case Study 11: Marriott International, Inc. (cont’d) Marriott created a single revenue-management system to be used by all of properties. One Yield custom developed in-house, using process similar to SDLC Understood importance of user involvement, formed joint IT-business user team to developed business case for new system and jointly manage development. Team provided constant communication to system’s future users, and used prototypes to identify problem areas early. Training is continuing activity for all employees, and training facilities were integrated into new system. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Case Study 11: Marriott International, Inc. (cont’d) One Yield recommends prices for each room for given day, date, current reservation levels, and history. Revenue manager at each hotel property can override these recommendations. Prices are communicated directly to centralized reservation system. One Yield uses web-based technology, so upgrades are done only at web servers, not at individual hotels. This strategy saves considerable maintenance cost, time, and frustration. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Case Study 11: Marriott International, Inc. (cont’d) One Yield computes theoretical maximum revenue for each property and compares actual results to that maximum. One Yield increased ratio of actual to theoretical revenue from 83% to 91%, which translated into substantial increase in revenues. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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