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Dr. Chen, Management Information Systems Chapter 11 Information Systems Management Jason C. H. Chen, Ph.D. Professor of MIS School of Business Administration.

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Presentation on theme: "Dr. Chen, Management Information Systems Chapter 11 Information Systems Management Jason C. H. Chen, Ph.D. Professor of MIS School of Business Administration."— Presentation transcript:

1 Dr. Chen, Management Information Systems Chapter 11 Information Systems Management Jason C. H. Chen, Ph.D. Professor of MIS School of Business Administration Gonzaga University Spokane, WA

2 Dr. Chen, Management Information Systems “… You’ve Got a Fox in Charge of a Hen House.” 1.IS management is a mess. 2.New maintenance supervisor oversees IS, but has no IS background 3.IS manager has a conflict of interest 4.Inherited some contractor developed applications. 5.Access to servers is wide open 6.Fox Lake’s general manager needs to get actively involved in IS management 2

3 Dr. Chen, Management Information Systems 3 Information systems are critical to organizational success, and like all critical assets, need to be responsibly managed, in organizations both large and small. In this chapter, we will survey the management of IS and IT resources. We begin by discussing the major functions and the organization of the IS department. Then we will consider each of the major functions in greater detail: planning the use of IT/IS, creating and managing the computing infrastructure, creating and managing enterprise IS, and protecting organizational information assets. Chapter Preview

4 Dr. Chen, Management Information Systems 4 Chapter Preview (cont.) The pros and cons of outsourcing and describing some of its risks are presented. Finally, the chapter concludes with a discussion of the relationship of users to the IS department. In this last section, you will learn both your own and the IS department’s rights and responsibilities. The goal of the chapter is to give you an appreciation for the scale and complexity of the IS management task and to help you become an effective consumer of IS services.

5 Dr. Chen, Management Information Systems Study Questions Q1 What are the functions and organization of the IS department? Q2: How do organizations plan the use of IS? Q3: What are the advantages and disadvantages of outsourcing? Q4: What are your user rights and responsibilities? Q5: 2022? 5

6 Dr. Chen, Management Information Systems Types of Sourcing 6 Sourcing _______ ___________ In Out Crowd Offshoring

7 Dr. Chen, Management Information Systems Q1:What are the Functions and Organization of the IS Department? Major functions of information systems department  Plan how to use IS to accomplish organizational goals and strategy  Manage outsourcing relationships  Protect information assets  Develop, operate, and maintain organization’s computing infrastructure  Develop, operate, and maintain enterprise applications 7

8 Dr. Chen, Management Information Systems Functions and Organization of the IS Department Each organization’s IS structure varies depending on these factors:  ______  _______  __________ __________  ________  Other factors 8 Size Culture Competitive environment Industry

9 Dr. Chen, Management Information Systems How is the IS Department Organized? 9 Fig 11-1 Typical Senior-level Reporting Relationships This organizational structure chart shows the typical top-level reporting relationships. Depending on the organization, the Chief Information Officer (CIO) may report to the Chief Executive Officer (CEO), the Chief Operating Officer (COO), or the Chief Financial Officer (CFO).

10 Dr. Chen, Management Information Systems 10 How Is the IT Department Organized? Chief Information Officer (CIO)  Principal manager  Reports to CEO, COO, or CFO Technology office  Head: Chief Technology Officer (CTO)  Investigates new information systems technologies for possible application at organization Operations  Manages computing infrastructure

11 Dr. Chen, Management Information Systems 11 How Is the IT Department Organized? Development  Manages process of creating new information systems  Maintains existing system Outsourcing relations  Handles affairs with outsourced systems Data administration staff functions  Establishes data standards and data management practices and policies

12 Dr. Chen, Management Information Systems INFORMATION SYSTEMS (MIS/IS) ORGANIZATIONSTECHNOLOGY MANAGEMENT INFORMATION SYSTEMS SYSTEMS Dr. Chen, The Challenge of the Information Systems Technology TM -12 Each project team should include the following three types of people: 1) top/middle management 2) technical professional (e.g., MIS, accounting) 3) USERS

13 Dr. Chen, Management Information Systems Q/A 13 T/F If an organization does not develop programs in-house, then the development group of the IS department will include programmers, test engineers, and technical writers. Answer: ________ FALSE

14 Dr. Chen, Management Information Systems What IS-Related Job Positions Exist? 14 Fig 11-2 Job Positions in the Information Systems Industry

15 Dr. Chen, Management Information Systems What IS-Related Job Positions Exist? (cont’d) 15

16 Dr. Chen, Management Information Systems What IS-Related Job Positions Exist? (cont’d) 16

17 Dr. Chen, Management Information Systems 17 IT Position Requirements (Very Important to Your Future Career!) p.390 Most positions require business knowledge plus technical knowledge Many require university degrees Most require good verbal and writing skills Think dual majors with MIS/CIS to enhance your marketability (competitive advantage)  Accounting and information systems  Marketing and information systems  Management and information systems  Operations and information systems  HRM and information systems

18 Dr. Chen, Management Information Systems Q2 How Do Organizations Plan the Use of IS? Major IS Planning Functions 18 Fig 11-3 Planning the Use of IS/IT The figure below shows the necessary steps an organization must take to plan how it will use IS and IT and to make sure both of them support the organization’s strategy. The CIO is responsible for most of these items. It’s a never-ending process as organizations change, grow, or merge with other companies. The steering committee, a group of senior managers from major business functions, works with the CIO to set IS priorities, make decisions about major IS projects, and serve as a communication channel between users and the IS function.

19 Dr. Chen, Management Information Systems Explain How You Would Respond to Each Situation. 10.Tweeting friends on your computer about your softball win last night. 11.Selling personal items on eBay 12.Paying personal bills online 13.Paying personal bills online when traveling on company business 14.Buying an airplane ticket for an ill parent over the Internet 15.Changing content of a personal Web site 16.Changing content of a personal business Web site 17.Buying an airplane ticket for a personal vacation over Internet 1.Playing computer games during work hours 2.Playing computer games before and after work hours 3.Responding to s from an ill parent 4.Watching DVDs during lunch and breaks 5.Sending s to plan a party that mostly involves people from work 6.Sending s to plan a party that mostly involves no one from work 7.Updating your Facebook page 8.Reading news on CNN.com 9.Checking stock market over Internet 19

20 Dr. Chen, Management Information Systems 20 Align Information Systems with Organizational Strategy As strategies change, as the organization merges with other organizations, as divisions are sold, IS must evolve along with the organization. Changing a network requires time and resources. Integrating disparate information systems applications is even slower and more expensive. Without a persuasive CIO, IS can be perceived as a drag on the organization’s opportunities.

21 Dr. Chen, Management Information Systems Q/A 21 Which of the following is a function of the steering committee for an IS department? A) writing program code B) imparting training C) adapting software D) setting IS priorities Answer: ______ D

22 Dr. Chen, Management Information Systems Information System Strategy Triangle Business (Firm) Strategy Organizational Strategy IS/IT Strategy Where is the business going and why? What is required?How it can be delivered? N Direction for business Needs and priorities Infrastructure and services Supports business IT impact and potential Strategy Triangle 1. Architecture/Infrastructure 2. MIS organization 3. Funding 4. Project Management 22

23 Dr. Chen, Management Information Systems Information System Strategy Triangle A business strategy is a well-articulated vision of where the business seeks to go and how it expects to get there. An organizational strategy is the organization’s design, as well as the choices it makes to define, set up, coordinate, and control its work processes. IS/IT strategy is the plan the organization uses in providing information systems and services. 23

24 Dr. Chen, Management Information Systems 24 Communicate Issues to the Executive Group CIO provides the IS perspective during discussions of problem solutions, proposals, and new initiatives. For example, when considering a merger, it is important that a company consider integration of information systems in the merged entities. This consideration needs to be addressed during evaluation of merger opportunity.

25 Dr. Chen, Management Information Systems 25 Develop Priorities and Enforce Them Within the IS Department CIO must ensure that priorities consistent with overall organizational strategy are developed and communicated to IS department. Must also ensure that IS department evaluates proposals and projects for using new technology in light of those communicated priorities.

26 Dr. Chen, Management Information Systems 26 Sponsor the Steering Committee Steering committee is a group of senior managers from major business functions that works with the CIO to set IS priorities and decide among major IS projects and alternatives. Provides a forum where information systems personnel can discuss potential IS initiatives and directions with the user community Provides a forum where users may express their needs, frustrations, and other issues they have with the IS department

27 Dr. Chen, Management Information Systems 27 Q3. Outsourcing: What and Why? Outsourcing is the process of hiring another organization to perform a service. Outsourcing is done to save costs, to gain expertise, and to free up management time. Any value chain business activity can be outsourced “Your back room is someone else’s front room.” (Peter Drucker) Drivers (at least four advantages) include:  Reducing ________  Transition to new _____________  Focus on _______ business strategies;  Provide better management and focus of IT personnel. Disadvantages are present in outsourcing and include:  Losing ________  _________ to undue decisions, etc. control, Expensive costs; technologies; core

28 Dr. Chen, Management Information Systems Sourcing Decision Cycle Framework Sourcing involves many decisions (Figure 11 Extra- 1). The first step is the make or buy decision. If buy is selected then the company must decide where. If the company decides to go offshore it must decide if the offshore company is near or far. Periodic evaluation must take place. Continual evaluation is needed to determine if the arrangement is satisfactory or not (either for outsourcing or insourcing).

29 Dr. Chen, Management Information Systems FIGURE 11 Extra 1 SOURCING DECISION CYCLE FRAMEWORK (overseas subsidiary) (distant land) (proximate) Where & how the sourcing should be delivered? Backsourcing BUY MAKE

30 Dr. Chen, Management Information Systems Outsourcing Information Systems 30 Outsourcing, the process of hiring another organization to perform a service, can provide advantages like the ones shown in this figure. India is the most popular foreign outsourcer because of its large, well-educated, English-speaking population who earn 20 to 30 percent less in labor costs than their U.S. counterparts. Fig 11-4 Popular Reasons for Outsourcing IS Services International outsourcing is well-suited to 24/7 operations like customer support. Some say outsourcing is a threat to U.S. technology leadership.

31 Dr. Chen, Management Information Systems Risk Reduction Caps financial risk Ensures certain level of quality, or avoids having substandard quality Vendor assumes responsibility for hardware, software, network protocol selection, and knowing applicable tax laws Easier to hire another vendor than to fire and rehire internal staff. 31

32 Dr. Chen, Management Information Systems International Outsourcing India  Large, well-educated, English-speaking, labor cost 70-80% less than in US. China and other countries. Modern telephone technology and Internet- enabled service databases Customer support and other functions operational 24/7. 32

33 Dr. Chen, Management Information Systems What Are the Outsourcing Alternatives? Major categories of alternatives by information systems components 33 Fig 11-5 IS/IT Outsourcing Alternatives This figure shows alternatives businesses have for outsourcing some or all of their information system components. IaaS: Infrastructure-as-a-Service SaaS: Software-as-a-Service Oracle/PeopleSoft Web storefront Oracle, EDS Amazon Salesforce.com Employee Travel

34 Dr. Chen, Management Information Systems 34 Fig 11-6 Outsourcing Risks There are a lot of risks to outsourcing information systems as this figure describes.

35 Dr. Chen, Management Information Systems Q/A 35 When a company outsources a system, it no longer has control over prioritizing fixes for software failures and problems. Answer: _______ TRUE

36 Dr. Chen, Management Information Systems When to Outsourcing? Which IS activities are strategic to our company's business? Will outsourcing save us at least ____ percent? Does our firm have access to the needed technology and expertise?  If not, outsourcing may be the answer to acquiring these resources. Does outsourcing increase our firm's flexibility? 15 Write shorter contracts - less than ___ years 5

37 Dr. Chen, Management Information Systems INSOURCING What is the example(s) mentioned in the Friedman’s Video (The World is Flat)?

38 Dr. Chen, Management Information Systems Crowdsourcing Definition: –Taking a task traditionally performed by an employee or contractor, and outsourcing it to an undefined, generally large group of people, in the form of an open call. Used by companies to increase productivity, lower production costs, and fill skill gaps. Can be used for a variety of tasks. Companies do not have control over the people doing the work. Has cost more than traditional methods.

39 Dr. Chen, Management Information Systems Q4: What Are Your IS Rights and Responsibilities? 39 Fig User Information Systems Rights and Responsibilities

40 Dr. Chen, Management Information Systems Q4: What Are Your IS Rights and Responsibilities? (cont’d) 40 Fig User Information Systems Rights and Responsibilities

41 Dr. Chen, Management Information Systems Q/A 41 Which of the following is true about the changes and developments foreseen for 2022? A) Licensed, off-the-shelf software will become less configurable, less adaptable, and less flexible. B) Fewer applications will be developed in-house and software customization will become easier. C) Better-skilled employees will be needed to adapt software to increasingly unique organizational needs. D) Small computing devices will become more expensive and lose their popularity. Answer: ______ B

42 Dr. Chen, Management Information Systems Q5: 2022? Hardware infrastructure will migrate to cloud Licensed, off-the-shelf software more configurable, adaptable and flexible. iOS devices and other, small computing devices will become cheaper and more popular. Fewer and less-skilled employees needed Loss of control of employees’ use of IT 42

43 Dr. Chen, Management Information Systems 43 You have certain rights and responsibilities with regard to the IS department that supports you in your job. Here is a list of them. Fig 11-7 User Information Systems Rights and Responsibilities

44 Dr. Chen, Management Information Systems End of chapter 11 44


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