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The Importance of Information Systems Management Chapter 1 Information Systems Management In Practice 7E McNurlin & Sprague PowerPoints prepared by Michael.

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Presentation on theme: "The Importance of Information Systems Management Chapter 1 Information Systems Management In Practice 7E McNurlin & Sprague PowerPoints prepared by Michael."— Presentation transcript:

1 The Importance of Information Systems Management Chapter 1 Information Systems Management In Practice 7E McNurlin & Sprague PowerPoints prepared by Michael Matthew Visiting Lecturer, GACC, Macquarie University – Sydney Australia

2 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-2 Chapter 1 This lecture / chapter traces the growing importance of information systems management and presents a conceptual model to show the key areas, how they fit together, and the principal issues for CIOs in each area It sets up the context for the book: –First by describing todays business organizational and technical environment –Second by describing a framework for viewing the work of the IS organization; and –Third by describing an IS organizations evolution from 1985 to present MeadWestvaco, described from the mid-1980s to the present, is a case example of how these areas are being implemented in an IS organization

3 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-3 Todays Lecture Introduction A Little History The Organizational Environment –External Business Environment –Internal Organizational Environment –Goals of the New Work Environment The Technology Environment –Hardware Trends –Software Trends –Data Trends –Communication Trends

4 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-4 Todays Lecture cont. The Mission of Information Systems A Simple Model A Better Model –The Technologies –The Users –Systems Development and Delivery –IS Management Organization of this Unit / Book Case example – MeadWestvaco Corporation

5 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-5 Introduction (Finally) Information Technology (IT) - computers and telecommunications - is having the kind of revolutionary, restructuring impact that has been expected and promised for years Rapid advances in speed and capacity + pervasiveness of Internet, wireless, portable devices etc. = making major changes in the way we live and work Go Back – 5, 10, 15 years

6 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-6 Introduction cont. Due to the growth and pervasiveness of IT, organizations are operating in a different environment from just a few years ago Themes this unit emphasizes: –Globalization The world seems to be getting smaller Backlash – local needs Vs. standard Jobs to stay local IS executives need balancing act –E-enablement Internet has become a hub for conducting business Interconnectivity plus! –Knowledge Sharing and Knowledge Management Between people Out of peoples heads and into lasting things e.g. systems, policies and procedures etc.

7 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-7 Introduction cont. Management of Information Systems –3 Major Trends 1.Governance of IT = a collaborative effort from IS executives and all other members of Senior Management 2.Role of IS is shifting from application delivery to system integration and infrastructure development 3.Outsourcing – total / selective Developing and managing contracts and relationships

8 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-8 Introduction cont. Historically, managing IT has been the job of technical managers NOW = increasingly becoming an important part of the responsibilities of: –Senior executives –Line managers –Employees at all levels of an organization

9 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-9 The Key (Whats it all about?) Technology is configured into systems that help manage information to improve organizational performance

10 ©2006 Barbara C. McNurlin. Published by Pearson Education A Little History U.S. passed from the industrial era to the information era as early as 1957 –The number of U.S. employees whose jobs were primarily to handle information surpassed the number of industrial workers In the late 50s / 60s IT to support information work = largely non-existent (except telephone) –Information work = mostly done in general offices without much support from technology People factories?

11 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-11

12 ©2006 Barbara C. McNurlin. Published by Pearson Education A Little History cont. 70s = it all started with many of the foundations of IT today invented and costs starting to fall –Typewriters, fax, smaller computers 1980s = number of US information workers surpassed the number in all other sectors (>50%)

13 ©2006 Barbara C. McNurlin. Published by Pearson Education A Little History cont. Information Technology: –Initially used to perform existing information work more quickly and efficiently –Then = used to manage work better –Now = well into the 3 rd stage of technology assimilation IT makes pervasive changes in the structure and operation of: –Work –Business practices –Organizations –Industries –The Global Economy (=enabler?)

14 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment The way IT is used depends on the environment surrounding the organization that uses it Simultaneously, technological advances affect the way IT is used

15 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment cont. The External Organizational Environment –IT allows information to move faster, thus increasing the speed at which events take place and the pace at which individuals and organizations respond to events. –The Internet Economy B2C, B2B etc. IT is a major underpinning of the way the old and new worlds interface

16 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment cont. The External Organizational Environment cont. –Global Marketplace The entire world has become the marketplace The Internet allows companies to work globally Globalization is a two way street Internet allows small firms to have a global reach Business environment is now global, but local tastes still matter

17 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment cont. The External Organizational Environment cont. –Business Ecosystems –Decapitalization Tangible items, such as capital, equipment and buildings were the tenets of power in the industrial age Today = power of intangibles such as ideas and knowledge –Managing talent = as important as e.g. managing finance

18 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment cont. The External Organizational Environment cont. –Faster Business Cycles Rely on IT –Accountability and Transparency Rise and fall of dot-coms probably should have been expected –Many business plans could not make $$$ Debacle in Telco and business shenanigans have shaken investor confidence –Call for greater transparency of corporate operations and greater accountability of corporate officers –IT will play a significant role in implementing the ensuing regulations and fostering transparency

19 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment cont. The External Organizational Environment cont. Rising Societal Risks of IT –IT has negatively affected millions of people Network shutdowns Computer viruses Identity theft scams Movement of white collar jobs offshore –Led to increasing calls for Government regulation and for vendors and corporations to take action

20 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment cont. The Internal Organizational Environment The work environment is also changing, and the art of managing people is undergoing significant shifts –From Supply-Push to Demand-Pull Old –Companies did their best to figure out what customers wanted –Organized to build a supply of products or services and then push them out to end customers on stores shelves, in catalogs etc. New (Internet) –Allows much closer and one-to-one contact between customer and seller –Offer customers the components of a product/service then the customer creates their own version by pulling what they want

21 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment cont. The Internal Organizational Environment cont. –Self- Service ATMs = early example 1990s saw an increase in systems that let consumers access corporate computer systems to: –Learn about products –Purchase products –Inquire about orders –Communicate and do business with the firm Now = heaps e.g. FedEx parcel tracking

22 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment cont. The Internal Organizational Environment cont. –Real-Time Working Sales people have up-to-the-minute information about customers Knowing e.g. inventory and cash levels as the are NOW – not as they were a week or a month ago Being able to reach someone when you need them –Instant messaging? –Team-Based Working Working together on projects –Anytime, Anyplace Information Work

23 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment cont. The Internal Organizational Environment cont. –Outsourcing and Strategic Alliances To become more competitive, organizations are examining types of work that should be done internally or externally by others Ranges from a simple contract for services to a long-term strategic alliance The thinking is: We should focus on what we do best and outsource the other functions to people who specialize in them –Note = not new (especially in non-IT) –Also = some backlash

24 ©2006 Barbara C. McNurlin. Published by Pearson Education The Organizational Environment cont. The Internal Organizational Environment cont. –The Demise of Hierarchy Traditional hierarchical structure groups, several people performing the same type of work, overseen by a supervisor –No longer the most appropriate in factories or offices Hierarchical structures cannot cope with rapid change –Communications up and down the chain of command takes too much time for todays environment IT enables team-based organizational structures by facilitating rapid and far-flung communication Note: = some of the time. Still has its place in many organizations

25 ©2006 Barbara C. McNurlin. Published by Pearson Education Goals of the New Work Environment Leverage Knowledge Globally –Tap tacit knowledge by fostering sharing and supporting sharing through technology –Note: driving force is culture! Happens through organizational pull (people needing help) rather than organizational push which overloads people with information Organize for Complexity

26 ©2006 Barbara C. McNurlin. Published by Pearson Education Goals of the New Work Environment cont. Work Electronically –Taking advantage of the Internet and networks in general = 3 rd major goal of enterprises today Requires different organizing principles, management tenets, compensation schemes, structure etc. Changes how organizations interact with others including customers –The microchip moved power within companies. Bandwidth moves power all the way to consumers –Will increase exponentially as bandwidth capability increases and costs decrease Handle Continuous and Discontinuous Change –Fits and starts

27 ©2006 Barbara C. McNurlin. Published by Pearson Education The Technology Environment IT enables advances in organizational performance. Hardware Trends –50s – 60s + - Batch processing predominant; on-line systems emerged later –Mid 70s processing power began to move out of the central site (at the insistence of users!) –1980s: Advent of personal computers –Client-Server computing: Client machine user interfaces with Server on the network holding the data and applications –Major current development = hand-held devices, wireless etc. –Further distribution beyond organizational boundaries to suppliers, customers etc.

28 ©2006 Barbara C. McNurlin. Published by Pearson Education Software Trends 1.In 1960s = Improve the productivity of in-house programmers who created transaction processing systems – Problem = memory $ 2.Later, programming issues: First = Modular and structured programming techniques Then = Life cycle development methodologies and software engineering – Goal = Introduction of rigorous project management techniques The Technology Environment cont.

29 ©2006 Barbara C. McNurlin. Published by Pearson Education Software Trends cont. 3.Prototyping: quick development of a mock-up 4.Purchasing software became viable alternative to in-house development 5.Paying attention to applications other than transaction processing Decision support systems (DSS), report generation, database inquiry 6.End users develop their own systems The Technology Environment cont.

30 ©2006 Barbara C. McNurlin. Published by Pearson Education Software Trends cont. 7.Push for open systems Purchasers were tired of being locked in to proprietary software (or hardware) s – trend towards Enterprise Resource Planning (ERP) e.g. SAP, PeopleSoft DANGER : BEWARE Expensive and troublesome, especially for companies wanting to modify the ERP software to fit their unique processes A fundamental organizational change! The Technology Environment cont.

31 ©2006 Barbara C. McNurlin. Published by Pearson Education Software Trends cont. 9.Like hardware, software is migrating to be network centric. Web front ends to empower employees rather than replacing legacy systems Looming change = move to Web Services – packages of code that each perform a specific function and have a URL -e.g FedEx parcel tracking, MacAfee's virus updates The significance of Web Services is that it moves software and programming to being truly network centric – the network becomes the heart of the system, linking all Web Services The Technology Environment cont.

32 ©2006 Barbara C. McNurlin. Published by Pearson Education The Technology Environment cont. Data Trends – At first = File management Organizational techniques for files that served individual applications – Then = Corporate databases Serving several applications Led to concept of establishing a data administration function

33 ©2006 Barbara C. McNurlin. Published by Pearson Education The Technology Environment cont. Data Trends cont. – 70s = focus on Technical solutions Database management systems Dictionary/directory Specification and format Now = Data definitions: information about relationships among systems, sources and uses of data, and time cycle requirements – First 20 years: techniques to manage data in a centralized environment

34 ©2006 Barbara C. McNurlin. Published by Pearson Education The Technology Environment cont. Data Trends cont. Late 70s / early 80s = 4 th generation languages and PCs: – Employees directly access corporate data – Users demanded it! Also = Distributing data from data resources to information resources – Data management organizes internal facts into data record format – Information management focuses on concepts Contains a much richer universe of digitized media including voice, graphics, animation and photographs (digitized media)

35 ©2006 Barbara C. McNurlin. Published by Pearson Education The Technology Environment cont. Data Trends cont. Managing this expanded array of information resources requires new technologies – Data warehousing Stores huge amounts of historical (not live) data from systems such as retailers Point-Of-Sale systems – Data mining Uses advanced statistical techniques to explore data warehouses looking for previously unknown relationships in data e.g which customers are the most profitable Knowledge management (intellectual capital) – New – The Holy Grail? Web has broadened data to mean content – Text, graphics, animation, maps, photos, video etc. Now tightly controlled Vs. early proliferation

36 ©2006 Barbara C. McNurlin. Published by Pearson Education The Technology Environment cont. Data Trends cont. Two major data issues are now facing CIOs: 1.Security – protecting data from those who should not see it 2.Privacy – safeguarding the personal data of employees, customers etc. Regulations such as Sarbanes-Oxley in the U.S. now require company officers to verify their financial data -The processes that handle financial data are automated = need to document and ensure the accuracy of these processes

37 ©2006 Barbara C. McNurlin. Published by Pearson Education The Technology Environment cont. Communications Trends Final core technology = Telecommunications. This area has (is?) experienced enormous change and is now taking centre stage Early use = online and time-sharing systems Then = interest in both public and private (intra- company) data networks blossomed Internet = changed everything! Today the Internets protocol has become the worldwide standard for LANs and WANs -Will also soon be the standard for voice

38 ©2006 Barbara C. McNurlin. Published by Pearson Education The Technology Environment cont. Communications Trends cont. Telecom opened up new uses of IS so it became an integral component of IS management – Communications-based information systems link organizations to their suppliers and customers – Explosion of wireless 2nd generation, instant messaging, Wi-Fi, 3rd generation (3G) Doesnt just enable mobility = changes how people communicate, how they live and how they work – EXCITING TIMES!!!

39 ©2006 Barbara C. McNurlin. Published by Pearson Education The Mission of Information Systems Early days: paperwork factories to pay employees, bill customers, ship products etc. –Objectives of information systems defined by productivity measures Later = MIS era: produced reports for management by exception for all levels of management Today = Improve the performance of people in organizations through the use of information technology Improving organizational performance is accomplished by the people and groups that comprise the organization –One resource for this improvement is IT

40 ©2006 Barbara C. McNurlin. Published by Pearson Education The Mission of Information Systems The mission is to improve the performance of people in organizations through the use of information technology

41 ©2006 Barbara C. McNurlin. Published by Pearson Education A Simple Model (Fig. 1-2) In the early days of Information Systems, the translation between IT and users was performed almost entirely by systems analysts

42 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-42

43 ©2006 Barbara C. McNurlin. Published by Pearson Education Systems Professionals Bridging the Technology Gap (Fig. 1-3) Over the last 50 years technology has become increasingly complex and powerful Users have become increasingly sophisticated Information systems are now viewed as products and users have become customers More specialization is required of systems professionals to bridge this wider gap

44 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-44

45 ©2006 Barbara C. McNurlin. Published by Pearson Education Users Bridging the Technology Gap (Fig. 1-4) Technology has become sophisticated enough to be used by many employees and consumers Today, some of the technology is truly user- friendly, and some applications such as Web page development, database mining and spreadsheet manipulation, are handled by non-IT staff Transaction systems, however, are still developed by professional developers, either inside or outside the firm

46 ©2006 Barbara C. McNurlin. Published by Pearson Education. 1-46

47 ©2006 Barbara C. McNurlin. Published by Pearson Education Why talk about the Technology Gap? The main point of this discussion is that technology is getting more complex, applications are becoming more sophisticated, and users are participating more heavily in the development of applications The net result is that management of the process is becoming more complex and difficult as its importance increases

48 ©2006 Barbara C. McNurlin. Published by Pearson Education A Better Model (Fig 1-6) Expanding the simple model gives us more guidance into managerial principles and tasks We suggest a model with four principal elements: 1.A set of technologies that represent the IT infrastructure installed and managed by the IS department 2.A set of users who need to use IT to improve their job performance 3.A delivery mechanism for developing, delivering and installing applications 4.Executive leadership to manage the entire process of applying the technology to achieve organizational objectives and goals

49 ©2006 Barbara C. McNurlin. Published by Pearson Education A Framework for IS Management

50 ©2006 Barbara C. McNurlin. Published by Pearson Education The Technologies Several forces contribute to the increased importance and complexity of IT: 1.Growth in capacity + reduction in cost & size 2.Merging of previously separate technologies of computers, telephones/telecom/cable TV, office equipment and consumer electronics 3.Ability to store and handle multiple forms of data Information systems now fill major roles in management reporting, problem solving and analysis, office support, customer service and communications

51 ©2006 Barbara C. McNurlin. Published by Pearson Education The Users Clerical?Managerial? Note: the distinction between manager and worker is blurring!

52 ©2006 Barbara C. McNurlin. Published by Pearson Education System Development and Delivery Systems development and delivery bridge the gap between technology and users Systems for procedure-based (clerical) activities differ from systems for knowledge based information work (managerial) Systems are built based on technology resources. Three main categories (essential technologies): 1.Hardware and software 2.Telecommunications 3.Information resources Management of these is called infrastructure management

53 ©2006 Barbara C. McNurlin. Published by Pearson Education IS Management Chief Information Officer (CIO) –Must be high enough in the enterprise to influence organizational goals –Must have enough credibility to lead the harnessing of technology to pursue those goals Must work with all the other CXOs –IT has become too important to be left to one individual Executive team must work together to govern it and leverage it well

54 ©2006 Barbara C. McNurlin. Published by Pearson Education A Better Model - Summary This model has four major components: 1.The technology – which provides the electronic and information infrastructure 2.Information workers who use IT to accomplish their work goals 3.System development and delivery – which brings the technology and users together 4.The management of the IS function Overall responsibility = to harness IT to improve the performance of the people and the organization

55 ©2006 Barbara C. McNurlin. Published by Pearson Education A Better Model

56 ©2006 Barbara C. McNurlin. Published by Pearson Education Organization of this Book/Unit Part I - Leadership Part II - Technologies Part III - Delivery Part IV - Supporting work Part V - Looking ahead

57 ©2006 Barbara C. McNurlin. Published by Pearson Education Organization of this Book/Unit cont. Part I – Leadership –Chapters –Deals with the strategic issues that are the responsibility of the top systems executive – CIO –Chapter 2 = evolution of the IS function and the CIOs job –Chapter 3 = strategic uses of IT –Chapter 4 = IS planning

58 ©2006 Barbara C. McNurlin. Published by Pearson Education Organization of this Book/Unit cont. Part II – Technologies –Chapters 5 – 8 –Deals with the management of the essential information technologies –Distributed systems architecture –Building and managing telecommunications –Managing corporate information resources –Managing day-to-day operations

59 ©2006 Barbara C. McNurlin. Published by Pearson Education Organization of this Book/Unit cont. Part III – Delivery –Chapters 9 and 10 –Deal with developing and delivering systems –Chapter 9 = describes: The evolution of systems development, tools and approaches The trend towards system integration, and The growth of Internet-based development –Chapter 10 = discusses important issues in managing system development and delivery

60 ©2006 Barbara C. McNurlin. Published by Pearson Education Organization of this Book/Unit cont. Part IV - Supporting work –Chapters 11 – 13 –Discuss different types of systems that support knowledge work –Chapter 11 looks at using IT to support decision making –Chapter 12 discusses systems that support collaborative work –Chapter 13 looks at supporting knowledge work

61 ©2006 Barbara C. McNurlin. Published by Pearson Education Organization of this Book/Unit cont. Part V - Looking ahead –Chapter 14 –Looks at the future

62 ©2006 Barbara C. McNurlin. Published by Pearson Education Case Example: MeadWestvaco Corporation

63 ©2006 Barbara C. McNurlin. Published by Pearson Education Case Example: MeadWestvaco Corporation

64 ©2006 Barbara C. McNurlin. Published by Pearson Education Case Example: MeadWestvaco Corporation

65 ©2006 Barbara C. McNurlin. Published by Pearson Education Case Example: MeadWestvaco Corporation

66 ©2006 Barbara C. McNurlin. Published by Pearson Education Case Example: MeadWestvaco Corporation

67 ©2006 Barbara C. McNurlin. Published by Pearson Education Case Example: MeadWestvaco Corporation

68 ©2006 Barbara C. McNurlin. Published by Pearson Education Case Example: MeadWestvaco Corporation

69 ©2006 Barbara C. McNurlin. Published by Pearson Education Case Example: MeadWestvaco Corporation

70 ©2006 Barbara C. McNurlin. Published by Pearson Education Case Example: MeadWestvaco Corporation

71 ©2006 Barbara C. McNurlin. Published by Pearson Education A Final Thought It is not the strongest species that survive, nor the most intelligent, but the ones responsive to change - Charles Darwin


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