1. Chapter 10 Organizing Information Systems and Services

2. Learning Objectives When you finish this chapter, you will
Understand the different ways in which ISs are deployed in organizations.
Be able to list and explain the advantages and disadvantages of each IS architecture.
Know the importance of collaboration between IS managers and line managers, and understand the relationships between the two groups.
Be able to describe career paths and responsibilities in the IS field.

3. Information Systems Architecture and Management
Centralized Information Systems Architecture
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

4. 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.

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

6. 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.

7. Information Systems Architecture and Management
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

8. 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

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

10. Information Systems Architecture and Management
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

11. Information Systems Architecture and Management
Figure 10.5 Centralized management of ISs

12. 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
More innovative use of ISs
Support for delegation of authority

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

14. Information Systems Architecture and Management
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.

15. 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

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

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
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

20. Organizing the IS Staff
Figure 10.9 The number of CIOs reporting directly to a CEO has increased in recent years

21. 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

22. Challenges for IS Managers and Line Managers
IS Manager Expectations of Line Managers
Projected list of basic IS needs
Clear explanation of business processes that need support once an IS manager is asked to develop a new system
What features the business manager wants in the new system once general automation process is set

23. The Information Center
Coordination and Control
Hardware and software purchases
Application development
Development and use of databases by end users
Support
Training and response to requests for help
Help desk: Troubleshoot on demand

24. The Information Center
Figure The help desk is an essential resource for IS users.

25. Chargeback Methods Two ways to treat cost of IS function
Part of overhead cost: General shared expense
Chargeback system: Units charged for services
Service Charges
What is chargeable?
Personnel hours
Computer time
External storage space
Number of input and output operations
Paper output

26. 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

27. 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

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

29. Careers in Information Systems
Database Administrator (DBA)
Responsible for database of an organization
Planning and design
Adoption of DBMSs and 4GLs
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

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

31. 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

32. Careers in Information Systems
Figure Nine commandments for successful, effective CIOs

33. 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

34. 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

35. 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