81 8. Managing Human Resources Managing the IS function Centralized control of IS function Distributed control of IS function Federated control of IS function Steering organization for IS function Development of IS human resources Strategies for IS human resources

82 Managing the IS Function Traditional IS function Location of IS decision rights Centralized Distributed InternalExternalProvision of IS resources Towards outsourcing Towards user control

83 Centralized Control of IS Function Advantages – Economy of scale – Control of standards – Critical mass of skills Disadvantages – Unresponsive to business needs – No business ownership of applications – No business accountability for costs

84 Distributed Control of IS Function Advantages – Users control IS priorities – Business ownership of applications – Business accountability for costs Disadvantages – Excessive overall costs – Variable standards of IS competence – No synergy or integration

85 Federated Control of IS Function Advantages – Overall IS vision and leadership – Organization wide core infrastructure – Presence of synergy mechanisms Disadvantages – Lack of guidelines for practice – Unclear roles and responsibility – Presence of IS-user tension

86 Steering Organization for IS Function Executive steering group Business IS planning groups Applications management groups Service management groups Technical management groups IT planning group Demand management (business led) Supply management (IS led)

87 Steering Organization for IS Function Executive steering group –Interpret business strategy and agree on overall IS policies –Establish priorities, agree on resources, and authorize major investments –Ensure strategic applications achieve intended objectives –Establish IS organizational responsibilities and relationships Business IS planning groups –Identify business needs and IS implications –Prioritize, plan, and coordinate IS activities and expenditure –Allocate resources to projects and appoint applications managers IT planning group –Interpret technology trends and developments in the business context –Develop, deploy, and monitor IS resources to support business IS plans –Manage external parties and minimize technical risks

88 Steering Organization for IS Function Applications management groups –Identify benefits and costs of applications for management evaluation –Manage development and use of applications to maximize benefits –Change business processes and make user resources available on projects Service management groups –Translate business needs into resource implications –Test technical solutions for quality to avoid applications failure –Plan and develop IS resources to meet evolving needs Technology management groups –Understand technology developments and formulate options –Assess technology developments against known and potential needs –Plan and manage infrastructure development and migration

89 Development of IS Human Resources Train new people from tertiary institutions –Expensive approach with limited payoffs Recruit experienced people from other organizations –Risky approach with loyalty problems Train existing people outside IS function –Complex approach requiring development of new job roles Use experienced people from service providers, technology specialists, or package suppliers –Unfamiliar (but increasingly popular) approach requiring careful handling of external parties

90 Strategies for IS Human Resources Strategic applications High potential applications Key operational applications Support applications Train users to exploit package applications Develop applications via outsourcing Package suppliers Develop applications with user support Buy expert help and transfer knowledge Newly trained or recruited IS professionals Service providers Users Technology specialists