Chapter 13 Organizing the MIS Resources Introduction to MIS Chapter 13 Organizing the MIS Resources

Organizing IS Resources Strategy Tactics Operations

Outline Managing Information Systems Functions MIS Roles MIS Jobs International Comparisons Outsourcing MIS Organization: Centralization Intranets and Thin Clients Cases: Financial Services Appendix: Project Management

MIS Roles Hardware administration Software support Corporate data access Software development End user support Computing standards DB administration Advocacy Advocacy Corporate computing standards Database administration Access to corporate data Software development Hardware administration Support end user development Software training and support

Some MIS Roles Hardware Repair Network and Telecommunications Training and User Support

Salaries 2001 IS Management CIO/VP IS/CTO $165,000 Systems Development Includes bonus Systems Development Networks Database Director $123,000 Manager 88,000 Project manager 85,000 System analyst 79,000 Senior developer 74,000 Programmer/analyst 55,000 Junior programmer 45,000 Director $106,000 Manager 83,000 Administrator 60,000 Network analyst 40,000 Junior analyst 34,000 Manager $94,000 Administrator 89,000 Database analyst 67,000 User Support Manager $69,000 Help desk operator 40,000 PC technical support 43,000 Internet Security Manager $94,000 Webmaster 72,000 Application developer 70,000 EC specialist 74,000 EDI specialist 66,000 Manager $86,000 Administrator 72,000 Specialist 64,000 IS audit manager 81,000 IS audit staff 53,000 Operations Director $106,000 Manager 74,000 Lead operator 42,000 Computer operator 35,000 http://careers.wsj.com http://www.computerworld.com

International Salaries Programmer/Analyst Salary United States 55,000 Britain 57,000 Russia 10,800 India 2,508

Skills in Demand Rank 2001 1998 1994 1 ERP Networking 2 Object engineering Groupware Database 3 Data warehouse and data visualization UNIX 4 Visual Basic 5 Wireless COBOL

Outsourcing Company 1991 1995 1997 1999 2000 IBM Global Services 0.4 17.7 24.6 35.0 37.0 EDS 1.2 12.4 15.2 18.7 19.2 CSC 4.2 6.6 9.4 10.5 Accenture 0.5 6.3 9.5 9.8 ADP 0.3 3.0 4.9 7.0 Affiliated Computer 0.16 2.0 2.1 Fiserv 0.23 0.7 1.0 1.4 1.7 Perot Systems 0.8 1.1 Total (billion dollars) 3.4 42.9 60.6 83.5 88.4

Outsourcing Evaluation Specialized Talent Needed Cost of reaching state of the art When any of these characteristics increases (moves outwards), there is less reason to use outsourcing. Security & Control Level of Technology Fixed Costs Complex Market Structure

Outsourcing Forces Globalization, new competitors. Pressure on profits. Outsourcing Forces Need to focus on increasing revenues and decreasing fixed/semi-fixed costs. Shorter product life-cycles, mass customization. Outsource non-revenue generate functions (staff/operations) Rapidly changing markets, flexible manufacturing. Need for flexibility and responsiveness. Desire to minimize amount of management time devoted to non-revenue generating functions. Cost cutting, staff cuts, loss of middle management. Economies of Scale - leverage expertise and methodologies. - invest in expensive technologies (state-of-the-art) - process-oriented approach Economies of Scope Want one vendor to provide multiple functions. Big Outsourcing Vendors & Big 6 Firms

Summary of MIS Organization

Complete Centralization Hardware Data and software MIS personnel User departments

Hardware Centralization Advantages Easier to share Data Expensive hardware (printers) Easier to control Purchases Usage Less duplication Efficiency — less unused resources

Software Centralization Advantages Compatibility Bulk buying discounts Easier training Ease of maintenance & upgrades

Data Centralization Advantages Easy backup Easier to Share Less duplication Security control\monitoring

Personnel Centralization Advantages Workers with similar backgrounds Easier training Straightforward growth path Specialized staff Easier to see/control costs

Growth of PCs

Complete Decentralization Human Resource Management MIS personnel are members of user departments Finance Marketing Accounting

Hardware Decentralization Advantages Less chance of total breakdown Users get personalized equipment Micros are cheaper than mainframes

Software Decentralization Advantages Different users have different preferences Easier access Customization without affecting others Can overcome objections Lower prices minimize benefits of bulk purchases. Similarities of packages make training easier. Conversion tools enable sharing.

Data Decentralization Advantages Not all data needs to be shared Easier find and access Control & politics

Personnel Decentralization Advantages Closer to users Faster response More time spent with users Better understanding/communication Different career path

Thin Clients Server Data and applications Thin client Browser-based access User interface

Intranet Network Solutions High-bandwidth connections between servers. Standard Internet connections to users.

Simple Object Application Protocol Your Company Server The Internet Bank Server Bank Service Your Financial Application Currency converter: Date, InCurrency, Outcurrency SOAP Manager or Client

Decentralization Summary Organizational Are operations interdependent? -planning -development -physical resources -operations Can subunits relate solely through information & messages? Does corporate culture support decentralization? Strengths End users gain control. Supports workgroups. Enables new organizational structures. Increased organizational flexibility. Weaknesses Possible short term bias in decision making. Might not be optimal use of resources for corporation. IS staff might lose cohesiveness and support.

Cases: Financial Services

Cases: Fidelity Investments Charles Schwab & Co. www.fidelity.com www.schwab.com What is the company’s current status? What is the Internet strategy? How does the company use information technology? What are the prospects for the industry?

Appendix: Project Management Projects Goal Need a well-defined goal Good example: Put a man on the moon. Bad example: Improve the IRS information systems. Scope Size and complexity of the project. Match the management techniques to the project scope. Schedule Break project into tasks Tasks depend on other tasks (you can’t paint a wall until it is built). Tasks take time to complete (duration) Tasks require resources. Resources Worker time is usually the most important to schedule. Workrooms, machinery, and so on. Appendix: Project Management

Project Management Steps Define the project. Create the plan. Track and manage the project as it proceeds. Close the project when the goal is achieved or the project is cancelled.

Microsoft Project Specialized database Specialized views of the data Tasks (start, duration, description, dependence) Resources (costs, needs, assignments) Specialized views of the data Gantt Chart Highlight task duration. PERT Chart Highlight task dependence. Calendar Show scheduled tasks. Task Usage Show assigned resources. Tracking Gantt Compare estimates to actual. Task Sheet Detailed task data. Resource views Resource Graph Track resources over time. Resource Sheet Detailed resource data. Resource Usage Tasks assigned to resources.

Sample: Spring Forward Century Sunday, April 2, 2000 25 miles 50 miles 100 miles Planning the ride Choose starting point Legal paperwork Establish routes Create databases Create promotional materials Create commemorative shirts Register riders Organize volunteer groups Advertise ride Plan rest stops Plan registration Ride day is a separate project SpringForwardCentury.mpp After the ride Final clean up Thank you notes Write project notes Organize Spring Forward Century.mpp

Microsoft Project: Gantt Chart Organize Spring Forward Century.mpp Microsoft Project: Gantt Chart

Gantt Chart (continued)

Resource Usage You need to get some tasks done sooner, or get more volunteers on the day before the ride. You need to start earlier, or get volunteers to do more of the organizing tasks.

SpringForwardCentury.mpp Ride Day