Lecture Outline 12 Other ways of obtaining systems IS Department in a Business Organization The Future of IS

Alternatives to Building a System In-house *MC Limited IS Staff IS Staff has limited skill set IS Staff is overworked May take too long

Alternatives to Building a System In-house *MC Can try other ways of getting a working system: –1. Outsourcing the development –2. End-user development With limitations –3. External acquisition Is a “good enough” canned system available?

End-User Development – Benefits *MC End-User Development Benefits Embracing end-user development can help address some common issues with IS development, including: Cost of labour – IS managers can substitute hardware and the systems for users to develop systems for IS staff Long development time – allowing users to develop, shortens development lead times Slow modification – users can react to their own needs Work overload – leveraging the talent of the end-user staff, in effect, increases the size of the IS staff End-User Development Benefits Embracing end-user development can help address some common issues with IS development, including: Cost of labour – IS managers can substitute hardware and the systems for users to develop systems for IS staff Long development time – allowing users to develop, shortens development lead times Slow modification – users can react to their own needs Work overload – leveraging the talent of the end-user staff, in effect, increases the size of the IS staff

External Acquisition – Steps *MC Steps in External Acquisition System identification, selection, and planning (same as internal method) Systems analysis (same as internal method) Development of a Request for Proposal (RFP) – a report that is used to tell vendors what the requirements are and how they might be able to meet those requirements (hardware, software, training, etc.) Proposal evaluation – may include viewing system demonstrations, evaluating the performance of those systems, and examining criteria important to the organization and judging how the proposed systems respond to those criteria Vendor selection – using a scoring system devised to evaluate the competing proposal and then selecting the proposal that best fits the organization’s needs Steps in External Acquisition System identification, selection, and planning (same as internal method) Systems analysis (same as internal method) Development of a Request for Proposal (RFP) – a report that is used to tell vendors what the requirements are and how they might be able to meet those requirements (hardware, software, training, etc.) Proposal evaluation – may include viewing system demonstrations, evaluating the performance of those systems, and examining criteria important to the organization and judging how the proposed systems respond to those criteria Vendor selection – using a scoring system devised to evaluate the competing proposal and then selecting the proposal that best fits the organization’s needs

The RFP (Request for Proposal) *MC

Cloud Computing *MC Get to use a service firm’s software system over the Internet as if it was your system You are buying a service from the firm rather than a product See page 283

The Information Systems Department in a business organization

Main Duties and Functions *L Manage computer operations –Includes all current information systems Manage and carry out new system development Manage IS personnel Budget of the department Help organization to plan for strategic, tactical and operational systems Justify financial investment in information systems

Typical Organizational Structure *L Chief Information Officer Divisions: –1. Operations –2. Development –3. End-User services

Operations Division *MC Computer facilities management Management of running current info systems Database administration Telecommunications management

Development Division *MC Has section of systems analysts, data analysts and programmers working on developing new systems Has another section of personnel maintaining current systems

End-User Services Help users to develop small systems Maintain a user help desk

MIS Steering Committee *MC Set policies and priorities for the IS Department (e.g., which systems to develop next) Approves budgets for major projects Usually composed of the CIO and other members of the organization’s senior management (eg. Marketing and Finance VPs)

Three Distinct Competencies of IS Professionals*L Technical Knowledge of hardware, software, networking, and security Most IS professionals are not deep technical experts but can direct/manage others with the required technical skills Technical Knowledge of hardware, software, networking, and security Most IS professionals are not deep technical experts but can direct/manage others with the required technical skills Business Understand the nature of business including process, management, social, and communication domains Unique skills over those with only technical skills Business Understand the nature of business including process, management, social, and communication domains Unique skills over those with only technical skills Systems Knowledge of approaches and methods, also possess critical thinking and problem solving skills necessary to build and integrate large information systems Unique skills over those with only technical skills Systems Knowledge of approaches and methods, also possess critical thinking and problem solving skills necessary to build and integrate large information systems Unique skills over those with only technical skills