1. Information Systems and the Role of General and Functional Managers
Chapter 1
Information Systems and the Role of General and Functional Managers
Why every modern manager must be proficient with Information Systems
© Gabriele Piccoli

2. Course Roadmap Part I: Foundations
Chapter 1: Introduction
Chapter 2: Information Systems Defined
Chapter 3: Organizational Information Systems and Their Impact
Part II: Competing in the Internet Age
Part III: The Strategic use of Information Systems
Part IV: Getting IT Done
© Gabriele Piccoli

3. Learning Objectives
To define the terms general manager, functional manager, and end user. You will also learn to articulate the difference between these concepts.
To define the role of the modern chief information officer (CIO).
To identify organizational and information technology trends that have led to the current popularity of IT-based information systems.
To identify why it is important for general and functional managers to be involved in information systems decisions.
To identify, and avoid, the risks that arise when general and functional managers decide to abdicate their right (and duty) to make important information systems decisions.
© Gabriele Piccoli

4. Introduction
It is very hard to escape the hype and publicity surrounding information technology (IT) and its business applications
A key driving force has been the affordability and accessibility of IT and business applications
This has resulted in IT and business applications becoming critical investments for business operations
© Gabriele Piccoli

5. Basic Manager Definitions
Manager: A trained, knowledgeable worker who is in charge of a team and often holds a master’s degree in management or business administration
General Manager: Manager in charge of an entire organization or business unit
Functional Manager: Manager in charge of a functional area or team
© Gabriele Piccoli

6. The Importance of IS
“All the value of this company is in its people. If you burned down all our plants, and we just kept our people and our information files, we should soon be as strong as ever.” ~Thomas Watson Jr.
© Gabriele Piccoli

7. What This Means For You
Selecting, designing, and managing IT and building IS: Not a job for the “IT guy”
Modern general and functional managers are responsible for working in partnership with IT professionals.
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8. Critical Lessons
Managers have to make educated decisions about the use of IT
Organizations use new IT to serve growing/changing business needs
Savvy managers partner with IT pros to ensure the success of information systems
Managers may or may not be end-users of the new systems they help to create
© Gabriele Piccoli

9. What is an End User?
End User: Individuals who have direct contact with software applications.
Anyone who uses a software program is an end-user
Students who use office productivity tools to write papers
Customers who use online systems to order goods & services
Suppliers who use business systems to deliver goods & services
Managers & employees who use simple office productivity programs (MS Office) or advanced programs (organizational business systems) for their day-to-day activities
© Gabriele Piccoli

10. The End User
Comes into direct contact with the technology: Software and hardware
Uses the technology to complete their day-to-day work and improve their own productivity
General and Functional Managers are often also end-users, but their critical skills are different
General and Functional Managers must:
Understand the role that IT plays in an information system
Be able to identify opportunities to use IT to their organization’s advantage
Plan for the effective use of IS resources
Manage the design, development, selection, and implementation of organizational information systems
© Gabriele Piccoli

11. Organizational Priorities
Adapted from Gartner EXP (January 2010)
© Gabriele Piccoli

12. Next Wave of CIOs
Increasing prevalence of IT → necessary understanding of how to use resources
Broad view of operations, business processes, inter-organizational coordination challenges, and opportunities
Broad understanding of how the firm is positioned to execute strategies
No longer seen as the endpoint of a career but as a stepping stone to other executive positions (CEO, president, etc.)
© Gabriele Piccoli

13. Key CIO Skills Perpetually develop the IT Team/Organization
Effectively manage change while in pursuit of:
Marketplace Innovation
Process Improvement
Maximum Agility
Leverage of Legacy Systems
Achieve 100% Customer Satisfaction
Consistently improve business performance
© Gabriele Piccoli

14. What’s an Information System?
An organizational system that enables the processing and management of an organization’s information
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15. Key IT Trends
IT enables new strategy, initiatives and effective management
Processing power, storage capacity and battery life continues to increase rapidly
IT costs continue to decline rapidly
IT continues to improve in user friendliness, thus becoming accessible to more and more people
© Gabriele Piccoli

16. Key IT Trends Data storage cost continues to decline
More and more devices are networked
Intelligent devices are now mainstream
Used with permission from David Becker/ Getty Images, Inc.
© Gabriele Piccoli

17. Implications of IT Trends
Computing power (computation and storage) increases.
Cost of computing power declines
Cost of data transmission declines
Network bandwidth increases
Computers become interconnected
Computers become easier to use
Digitization and miniaturization increase
Interconnected computing devices become more pervasive and embedded in more aspects of our lives
© Gabriele Piccoli

18. Effects of Managerial Significance
Huge increases in capital expenditures related to IT has resulted in:
Advances in communication systems
Affordable high-speed Internet access
Reliance on instant messaging tools
Access to entertainment options
Access to games & movies online
Increased productivity
Management relying on newer intelligence tools to improve decision making capability
© Gabriele Piccoli

19. Hiring the “Right” IT Person
Managers’ skills are complementary to those of IT professionals
Communication and a good relationship are critical to capitalizing on those skills
Hiring “good” IT professionals and letting them worry about all the IT stuff does not work
© Gabriele Piccoli

20. The Recap
Chief information officers (CIOs) are increasingly being selected from the functional and managerial ranks rather than from the technology ranks.
This job is no longer looked at as a dead-end. CIOs move on to CEO or President positions
The enduring effects of Moore’s law have led to
increasingly powerful yet cheaper computing
declining costs of computer memory
dramatic improvement in the ease and breadth of use of digital devices
Network connectivity and storage capacity, improved battery life for portable devices, and the proliferation of intelligent devices have dramatically changed the business and social landscape
© Gabriele Piccoli

21. The Recap
Managers can no longer abdicate their right, and duty, to be involved in information systems and IT decisions
Managers must act in partnership with the firm’s information systems and technology professionals
The skilled manager is one who can:
use information technologies to the firm’s advantage
properly plan & manage the firm’s information systems resources
manage, design, develop, select, and implement information systems
© Gabriele Piccoli

22. What We Learned
To define the terms general manager, functional manager, and end user. You also learned to articulate the difference between these concepts.
To define the role of the modern chief information officer (CIO).
To identify organizational and information technology trends that have led to the current popularity of IT-based information systems.
To identify why it is important for general and functional managers to be involved in information systems decisions.
To avoid the risks of abdicating your right (and duty) to make important information systems decisions.
© Gabriele Piccoli