1. IS 371 Week 3
Agenda:
• Administrative things
• Homework #1 due now
Watch for grades on COL •
• IT Department Administration (more)
• IT Globalization and Culture
• IT Outsourcing

2. IT Traditional Roles/Responsibilities
• Enable corporate strategies 
- Competitive strategies
- Low Cost/High Quality/Special Niche 
• Process redesign 
- Value enhancement 
• Enhance workgroup productivity 
• Infrastructure/Architecture 
• Service Management 
• Resource Management
The Real, Critical Role of IS Management is to translate these IT activities for User Managers 

3. Information Management Superiority - Strassmann
IT and business plans must be congruent
Exercises authority and achieves
corporate consensus
Business Plan
Alignment
Governance
Process
Improvement
Operating
Excellence
Searching for improvements
is ongoing (Kaizen)
Quality in the business
process is critical
Resource
Optimization
Always question whether resources
are used most effectively

4. MAJOR TRENDS IN IT MANAGEMENT
• GLOBALIZATION OF BUSINESS
- Specialized talent
- Reduction in cost
- Time to market – follow the sun development
• VELOCITY OF CHANGE IN BUSINESS
- Time from recognition of business need to system operation
- Pace of technology changes
• OUTSOURCING
- Cost savings - Functionally discrete, non-core business
- Political compromise - Lack of internal skills

5. According to the CIO desk reference–Meta Group, 2001, most IT
According to the CIO desk reference–Meta Group, 2001, most IT organizations “have a cost center, ‘just-keep-the-lights-on’, service- utility mentality that maintains IT should be mostly transparent to the rest of the business. If things are going well, no one knows the IT organization is there. If things are going badly, it gets noticed.”
Organizations in which IT is viewed as extremely critical to the business, are those in which the CIO has realized that marketing the IT organization furthers the awareness of the value that IT adds to the business and helps ensure the CIO is a business partner.
The best way to achieve this partnership is by organizing IT to respond to the needs of individual business groups. This can only be done by:
• establishing working relationships at individual and group levels with all business partners in which business teams, including IT as a “business,” can work together.
• Enterprise infrastructure is the only IT project.
• Whether responsible for 10 percent or 90 percent of the tasks, IT is a member of a business team led by a business project champion.
• All projects require business unit champions and business project champions.

6. ORGANIZATIONAL STRUCTURE / GOVERNANCE
• Functional • Centralized
• Project/Process • Decentralized
• Matrix

7. In the beginning, IT was managed by the Accounting Department
In a product group structure as seen in Figure 14.3B in the textbook, people are grouped together by products or product lines in self-contained groups. Computer use typically grew in each of the various product divisions to automate the accounting for that division. IT

8. As IT applications expanded beyond Accounting, IT moved up in the organization

9. Centralized IT Structure
President

10. Decentralized Structure
President

11. A categorization of business activities, such as: - marketing - sales
Functional Alignment: organized around similar resources performing similar activities –
task centered
A categorization of business activities, such as:
- marketing
- sales
- production
- human resources
- finance
- materials management
- accounting
- information technology
Within the IT Department: Organizing IT personnel by functional knowledge and platforms:  organized around resources.
- What are some “IT Functions?” 

13. FUNCTIONAL RELATIONSHIPS EMPHASIZE FORMAILTY
Communication Flow

14. Functional Alignment
• Advantages:
- reduced training costs (peers together to facilitate training)
- expertise fostered
- reduced task-switching time
- easier workforce scalability
• Disadvantages:
- internal, parochial focus
- limited connections between functions
- silo effect
- rigidity

15. • PROJECT / PROCESS ORIENTATION --
- organized around outputs
A specific ordering of work activities across time and place with a beginning, an end, and clearly identified inputs and output."
- the focus is "HOW" to get to outputs
- organizational orientation:  horizontal workflow value chain
- people are geared to becoming flexible generalists

16. Project/Process Alignment:
Organizing IT personnel by tasks and services

17. Project/Process Organization
• Advantages
Effective and efficient for large projects
Resources available as needed
Broad range of specialists
short lines of communication
easy to measure progress
• Drawbacks
Expensive for small projects
Specialists may have limited technological depth
May require high levels of duplication for certain specialties

18. PROCESS (PROJECT) RELATIONSHIPS EMPHASIZE
LATERAL COORDINATION / COMMUNICATION
360 DEGREE VIEW

19. The Present and Future are shifting toward
project/processes . . .

20. Defined the functions of management:
Who is Henri Fayol?
A French engineer who:
Defined the functions of management:
• Planning • Organizing • Leading • Controlling
And identified 14 principles of management:
• Specialization/division of labor
• Authority with responsibility
• Discipline
• Unity of command
• Unity of direction
• Subordination of special interests
• Remuneration
• Centralization
• Chain / Line of Authority
• Order
• Equity
• Lifetime jobs (for good workers)
• Esprit de corps