1. © Prentice Hall 2002 15.1 CHAPTER 15 Managing the IS Function

2. © Prentice Hall 2002 15.2 CHALLENGES OF IS LEADERSHIP RAPID TECHNOLOGICAL CHANGE RAPID TECHNOLOGICAL CHANGE GROWTH IN USER-MANAGEMENT UNDERSTANDING GROWTH IN USER-MANAGEMENT UNDERSTANDING FREQUENT EXTERNAL SHOCKS FREQUENT EXTERNAL SHOCKS*

3. © Prentice Hall 2002 15.3 CRITICAL AREAS OF IT MANAGEMENT SYSTEM AGREED-UPON IS ROLE AGREED-UPON IS ROLE LEADER HAS POSITION, SKILLS, STYLE THAT FIT EXPECTATIONS LEADER HAS POSITION, SKILLS, STYLE THAT FIT EXPECTATIONS CLEARLY DEFINED, ACTIVE ROLE FOR USER-MANAGER: IS/customer partnership CLEARLY DEFINED, ACTIVE ROLE FOR USER-MANAGER: IS/customer partnership RATIONALE FOR IS OUTSOURCING: Based on economic & strategic factors RATIONALE FOR IS OUTSOURCING: Based on economic & strategic factors EQUITABLE FINANCING SYSTEM EQUITABLE FINANCING SYSTEM*

4. © Prentice Hall 2002 15.4 CRITICAL AREAS OF IT MANAGEMENT SYSTEM CONSISTENT DEVELOPMENT EFFORT: For both IS professionals & users CONSISTENT DEVELOPMENT EFFORT: For both IS professionals & users DEPLOYMENT OF GLOBAL INFORMATION SYSTEMS DEPLOYMENT OF GLOBAL INFORMATION SYSTEMS IS ORGANIZATION DESIGN SUPPORTS MISSION IS ORGANIZATION DESIGN SUPPORTS MISSION REGULAR PERFORMANCE MEASUREMENT REGULAR PERFORMANCE MEASUREMENT ETHICAL USE OF IT RESOURCES ETHICAL USE OF IT RESOURCES*

5. © Prentice Hall 2002 15.5 SENIOR IT LEADERSHIP CHIEF INFORMATION OFFICER (CIO) CHIEF TECHNICAL OFFICER (CTO) ISSUES: IMPROVE DATA & IT PLANNING IMPROVE DATA & IT PLANNING GAIN BUSINESS VALUE THROUGH IT GAIN BUSINESS VALUE THROUGH IT FACILITATE ORGANIZATIONAL LEARNING: About & through IT FACILITATE ORGANIZATIONAL LEARNING: About & through IT REFINE IS UNIT’S ROLE & POSITION REFINE IS UNIT’S ROLE & POSITION*

6. © Prentice Hall 2002 15.6 SENIOR IT LEADERSHIP ISSUES: GUIDE END-USER DEVELOPMENT GUIDE END-USER DEVELOPMENT MANAGE DATA AS AN ASSET MANAGE DATA AS AN ASSET MEASURE IS EFFECTIVENESS MEASURE IS EFFECTIVENESS INTEGRATE INFORMATION TECHNOLOGY INTEGRATE INFORMATION TECHNOLOGY DEVELOP SYSTEMS PERSONNEL DEVELOP SYSTEMS PERSONNEL*

7. © Prentice Hall 2002 15.7 CIO PRIORITIES E-BUSINESS E-BUSINESS PEOPLE/STAFFING PEOPLE/STAFFING ENTERPRISE RESOURCE PLANNING ENTERPRISE RESOURCE PLANNING INFRASTRUCTURE INFRASTRUCTURE CUSTOMER RELATIONSHIP MANAGEMENT CUSTOMER RELATIONSHIP MANAGEMENT APPLICATION INTEGRATION APPLICATION INTEGRATION MERGERS & ACQUISITION MERGERS & ACQUISITION SECURITY SECURITY OUTSOURCING OUTSOURCING*

8. © Prentice Hall 2002 15.8 OUTSOURCING HIRE OUTSIDE PROFESSIONAL IS SERVICES TO RUN PART OF IS OPERATIONS: Base on economic value HIRE OUTSIDE PROFESSIONAL IS SERVICES TO RUN PART OF IS OPERATIONS: Base on economic value KEY FACTORS: VENDOR REPUTATION VENDOR REPUTATION QUALITY OR SERVICE QUALITY OR SERVICE FLEXIBLE PRICING FLEXIBLE PRICING*

9. © Prentice Hall 2002 15.9 MANAGING IT COSTS TOTAL IT BUDGET AS % OF TOTAL ORGANIZATIONAL REVENUES TOTAL IT BUDGET AS % OF TOTAL ORGANIZATIONAL REVENUES TOTAL IT BUDGET AS % OF TOTAL ORGANIZATIONAL BUDGET TOTAL IT BUDGET AS % OF TOTAL ORGANIZATIONAL BUDGET IS PERSONNEL COSTS AS % OF TOTAL ORGANIZATIONAL PROFESSIONAL SALARIES & WAGES IS PERSONNEL COSTS AS % OF TOTAL ORGANIZATIONAL PROFESSIONAL SALARIES & WAGES RATIO OF HARDWARE & SOFTWARE COSTS TO IS PERSONNEL COSTS RATIO OF HARDWARE & SOFTWARE COSTS TO IS PERSONNEL COSTS*

10. © Prentice Hall 2002 15.10 MANAGING IT COSTS IT HARDWARE & SOFTWARE COSTS PER MANAGER/KNOWLEDGE WORKER IT HARDWARE & SOFTWARE COSTS PER MANAGER/KNOWLEDGE WORKER ADDITIONAL FACTORS: HIDDEN IT COSTS: Elements appear in other budgets or expense categories HIDDEN IT COSTS: Elements appear in other budgets or expense categories RELATIONSHIP OF COSTS TO BENEFITS OFTEN DIFFICULT TO DETERMINE RELATIONSHIP OF COSTS TO BENEFITS OFTEN DIFFICULT TO DETERMINE BENEFITS OCCUR AFTER DEVELOPMENT COSTS OCCUR BENEFITS OCCUR AFTER DEVELOPMENT COSTS OCCUR*

11. © Prentice Hall 2002 15.11 SOME IS POSITIONS CIO: Senior executive responsible for leadership of IT efforts CIO: Senior executive responsible for leadership of IT efforts IS DIRECTOR: Responsible for day-to-day IS operations in entire organization IS DIRECTOR: Responsible for day-to-day IS operations in entire organization IS EXECUTIVE: Responsible for day-to-day IS operations in one division IS EXECUTIVE: Responsible for day-to-day IS operations in one division INFORMATION CENTER MANAGER: Oversees computer operations, hot line, help desk, training INFORMATION CENTER MANAGER: Oversees computer operations, hot line, help desk, training*

12. © Prentice Hall 2002 15.12 SOME IS POSITIONS SYSTEMS DEVELOPMENT MANAGER: Coordinates new projects, allocates systems analysts & project managers, schedules work SYSTEMS DEVELOPMENT MANAGER: Coordinates new projects, allocates systems analysts & project managers, schedules work SYSTEMS MAINTENANCE MANAGER: Coordinates maintenance projects, allocates people, schedules work SYSTEMS MAINTENANCE MANAGER: Coordinates maintenance projects, allocates people, schedules work IS PLANNING MANAGER: Analyzes business, develops architecture to support future needs, forecasts technology trends IS PLANNING MANAGER: Analyzes business, develops architecture to support future needs, forecasts technology trends*

13. © Prentice Hall 2002 15.13 SOME IS POSITIONS DATA CENTER MANAGER: Supervises day-to- day operations of data center, data entry, staff, schedules computer jobs, downtime, plans system capacity DATA CENTER MANAGER: Supervises day-to- day operations of data center, data entry, staff, schedules computer jobs, downtime, plans system capacity PROGRAMMING MANAGER: Coordinates application programming, organizes staff for teams, acquires tools to improve productivity PROGRAMMING MANAGER: Coordinates application programming, organizes staff for teams, acquires tools to improve productivity MANAGER OF WEB-BASED TECHNOLOGIES: Supervises Internet/Intranet technologies, consults with users to keep site current MANAGER OF WEB-BASED TECHNOLOGIES: Supervises Internet/Intranet technologies, consults with users to keep site current*

14. © Prentice Hall 2002 15.14 SOME IS POSITIONS COMMUNICATIONS MANAGER: Plans, designs, coordinates data & voice networks COMMUNICATIONS MANAGER: Plans, designs, coordinates data & voice networks SYSTEMS PROGRAMMING MANAGER: Responsible for systems software, including updates & request changes SYSTEMS PROGRAMMING MANAGER: Responsible for systems software, including updates & request changes DATABASE ADMINISTRATOR: Plans databases, coordinates use of data DATABASE ADMINISTRATOR: Plans databases, coordinates use of data PROJECT MANAGER: Supervises analysts & programmers in an IT project PROJECT MANAGER: Supervises analysts & programmers in an IT project*

15. © Prentice Hall 2002 15.15 SOME IS POSITIONS QUALITY ASSURANCE MANAGER: Coordinates activities to set standards, checks compliance with standards, improves quality & accuracy QUALITY ASSURANCE MANAGER: Coordinates activities to set standards, checks compliance with standards, improves quality & accuracy COMPUTER SECURITY MANAGER: Develops procedures & policies, installs & monitors software to ensure data safety and authorized use COMPUTER SECURITY MANAGER: Develops procedures & policies, installs & monitors software to ensure data safety and authorized use*

16. © Prentice Hall 2002 15.16 TEN COMMANDMENTS OF COMPUTER ETHICS THOU SHALT: 1. NOT USE A COMPUTER TO HARM OTHER PEOPLE 2. NOT INTERFERE WITH OTHER PEOPLE’S COMPUTER WORK 3. NOT SNOOP AROUND ANOTHER’S FILES 4. NOT USE A COMPUTER TO STEAL 5. NOT USE A COMPUTER TO BEAR FALSE WITNESS *

17. © Prentice Hall 2002 15.17 TEN COMMANDMENTS OF COMPUTER ETHICS THOU SHALT: 6. NOT COPY PROPRIETARY SOFTWARE FOR WHICH YOU HAVE NO AUTHORITY 7. NOT USE ANOTHER’S COMPUTER RESOURCES WITHOUT AUTHORITY OR PAYMENT 8. NOT APPROPRIATE ANOTHER’S INTELLECTUAL OUTPUT 9. THINK ABOUT SOCIAL CONSEQUENCES OF YOUR COMPUTER WORK 10. ALWAYS USE A COMPUTER INSURING CONSIDERATION & RESPECT FOR OTHERS *

18. © Prentice Hall 2002 15.18 USER SATISFACTION CRITERIA FOR IS UNITS QUALITY OF SYSTEM SPECIFICATION DOCUMENTS QUALITY OF SYSTEM SPECIFICATION DOCUMENTS SIZE OF REQUEST BACKLOG OR WORKLOAD SIZE OF REQUEST BACKLOG OR WORKLOAD PROJECTS COMPLETED ON TIME, WITHIN BUDGET PROJECTS COMPLETED ON TIME, WITHIN BUDGET SPEED AT WHICH REQUESTED WORK IS DONE SPEED AT WHICH REQUESTED WORK IS DONE*

19. © Prentice Hall 2002 15.19 USER SATISFACTION CRITERIA FOR IS UNITS PROFESSIONALISM OF IS STAFF PROFESSIONALISM OF IS STAFF NATURE OF RELATIONSHIP WITH IS STAFF NATURE OF RELATIONSHIP WITH IS STAFF BUSINESS KNOWLEDGE OF IS STAFF BUSINESS KNOWLEDGE OF IS STAFF QUALITY OF USER TRAINING QUALITY OF USER TRAINING USER FEELING OF INVOLVEMENT IN SYSTEMS MANAGEMENT USER FEELING OF INVOLVEMENT IN SYSTEMS MANAGEMENT*

20. © Prentice Hall 2002 15.20 REASONS FOR GLOBAL SYSTEMS 1. GLOBAL CUSTOMER REQUIREMENTS 2. GLOBAL PRODUCTS 3. RATIONALIZING OPERATIONS 4. FLEXIBLE OPERATIONS 5. JOINT RESOURCES 6. DUPLICATE FACILITIES 7. SCARCE RESOURCES *

21. © Prentice Hall 2002 15.21 REASONS FOR GLOBAL SYSTEMS 8. RISK REDUCTION 9. LEGAL REQUIREMENTS 10.ECONOMIES OF SCALE *

22. © Prentice Hall 2002 15.22 PLANNING FOR GLOBAL SYSTEMS 1. CREATE STRATEGIC ALLIANCES 2. DEVELOP INTERNATIONAL SYSTEMS SKILLS 3. BUILD ANTICIPATED INFRASTRUCTURE 4. TEAR DOWN “NATIONAL” MODEL 5. CAPTURE RESIDUAL VALUE 6. EXPLOIT LIBERALISM IN INTERNATIONAL TELECOMMUNICATIONS 7. HOMOGENIZE DATA STRUCTURES 8. GLOBALIZE HUMAN RESOURCES *

23. © Prentice Hall 2002 15.23 CHAPTER 15 Managing the IS Function