Organizing Information Technology Resources Chapter 10 Organizing Information Technology Resources

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

Decentralized Information Systems Architecture Allows departments and remote sites independence in organizing and using there is Local IS department establishes infrastructure Disadvantages Difficult to share applications and data among units Expensive to maintain and service different systems

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

Centralized vs. decentralized IS trade-offs

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 Centralized management of ISs

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 Decentralized management of ISs (in fully decentralized management, the central IS unit would not exist)

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

Organizing 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

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

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 budget. Small central unit can coordinate IS for departments that need help.

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

Organizing 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

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

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

Chargeback Methods Desirable Chargeback Features Chargeback Criticism 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

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

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 Updates and data integrity Interfaces of internal databases with other ISs Database personnel management

Careers in Information Systems Telecommunications Manager Responsible for computer networks Acquisition Implementation Management Maintenance Troubleshooting Assesses future needs of the business

Careers in Information 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

Careers in Information 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