Chapter 10 Organizing Information Technology Resources Management Information Systems, 4th Edition

Learning Objectives Describe the ways in which information technology personnel are deployed in organizations List and explain the advantages and disadvantages of various personnel deployments Explain the importance of collaboration between IS managers and business managers, and describe the relationships between the two groups Contrast the advantages and disadvantages of charge-back methods for IS services Describe career paths and responsibilities in the IS field Management Information Systems, 4th Edition

Management of Information Technology Resources Centralized Management Staff positions and departments in strict vertical hierarchy Control of organization in few hands Decentralized Management Delegates authority to lower-level managers IS often follows management pattern Management Information Systems, 4th Edition

Centralized vs. Decentralized Management Advantages of Centralized IS Management Standardized hardware and software Efficient administration of resources Effective staffing Easier training Common reporting systems Effective planning of shared systems Easier strategic planning Efficient use of IS personnel Tighter control by top management Management Information Systems, 4th Edition

Centralized vs. Decentralized Management (Cont.) Management Information Systems, 4th Edition

Centralized vs. Decentralized Management (Cont.) Advantages of Decentralized IS Management Better fit of ISs to business needs Timely response of IS units to business demands Encouragement of end-user development of applications Innovative use of ISs Support for delegation of authority Less competition for resources Management Information Systems, 4th Edition

Centralized vs. Decentralized Management (Cont.) Management Information Systems, 4th Edition

Centralized vs. Decentralized Management (Cont.) Management Information Systems, 4th Edition

Organizing the IS Staff Central IS Organization: A corporate IS team over all units IS Director oversees several departments Usually involved in every aspect of IT Often includes a steering committee Often easier to integrate an IS plan in a centralized IS organization Management Information Systems, 4th Edition

Organizing the IS Staff (Cont.) Management Information Systems, 4th Edition

Organizing the IS Staff (Cont.) Dispersed IS Organization Each unit fulfills its IS needs individually Each business unit has one or several IS professionals Funds for development and maintenance of unit’s IS own budget Decisions made independently Management Information Systems, 4th Edition

Organizing the IS Staff (Cont.) Management Information Systems, 4th Edition

Organizing the IS Staff (Cont.) A Hybrid Approach Small companies use the central approach Midsize and large use elements of central and decentralized approaches Handled according to the position of the highest IS officer in the organizational structure Management Information Systems, 4th Edition

Business Managers’ Expectations of an IS Unit Broad understanding of business activities Flexibility and adaptability Prompt response to the information needs of the business unit Clear, jargon-free explanation of what technology can and cannot do for the unit Management Information Systems, 4th Edition

Business Managers’ Expectations of an IS Unit (Cont.) Candid explanations of what information systems can and cannot do Honest budgeting Single point of contact Management Information Systems, 4th Edition

IS Manager Expectations of Business Managers Business planning Systems planning Systems selection or development Participation and partnership Management Information Systems, 4th Edition

Chargeback Methods Two ways to treat cost of IS function Part of overhead cost: General shared expense Chargeback system: Units charged for services Service Charges Staff hours Computer hardware Computer time Management Information Systems, 4th Edition

Chargeback Methods (Cont.) Service Charges (cont.) External storage space Departmental Web site space Desirable Chargeback Features Accountability Controllability Timeliness Congruence with organizational goals Management Information Systems, 4th Edition

Chargeback Methods (Cont.) Service Charges (cont.) Chargeback Criticism Expense may discourage IT initiatives High rates can be frustrating Overhead Expenditures Research and development Corporation-wide data communications Management Information Systems, 4th Edition

Careers in Information Systems The Systems Analyst Analysis of business needs and ISs Setting up of business applications Designing new ISs and maintaining existing ISs Analyze system requirements from user input Documenting efforts and system features Providing specifications for programmers Agents of change Good persuasion and presentation skills Management Information Systems, 4th Edition

Careers in Information Systems (Cont.) Management Information Systems, 4th Edition

Careers in Information Systems (Cont.) Database Administrator (DBA) Responsible for data architecture of an organization Planning and design Physical organization and storage Logical organization & Schema development Data dictionary development and maintenance Security measures for access and proper use Failure recovery and back-up measures Updates and data integrity Interfaces of internal databases with other ISs Database personnel management Management Information Systems, 4th Edition

Careers in Information Systems (Cont.) The Network Administrator Responsible for computer networks Acquisition Implementation Management Maintenance Troubleshooting Assesses future needs of the business Management Information Systems, 4th Edition

Careers in Information Systems (Cont.) Webmaster Creates and maintains Web site and intranet pages Must know Web technology, business strategy, security Chief Information Officer (CIO) and Chief Technology Officer (CTO) Oversees IS research and development Oversees IS infrastructure development Serves as chief technologist Serves as chief agent of change Management Information Systems, 4th Edition

Careers in Information Systems (Cont.) Management Information Systems, 4th Edition

Careers in Information Systems (Cont.) Management Information Systems, 4th Edition

Careers in Information Systems (Cont.) The Chief Security Officer Reports to the CIO or the CEO Security is sometimes classified as a business issue, not an IT issue Major challenge is misperception that security is an inhibitor rather than an enabler to operations Management Information Systems, 4th Edition

Careers in Information Systems (Cont.) Chief Knowledge Officer (CKO) Responsible for finding strategically important knowledge resources Accumulates, organizes, and retrieves information Chief Learning Officer (CLO) Independent Consultant Offers services to companies that lack qualified personnel for specific tasks Management Information Systems, 4th Edition

Ethical and Societal Issues Gasping for IT Skills Demand Keeps Growing Projected 2 million additional designers, programmers, and maintenance and repair workers needed over the next seven years 1.8 million computer engineers, computer scientists, and systems analysts needed by 2006 Ironically, high demand and benefits not attracting students to IT programs Management Information Systems, 4th Edition

Ethical and Societal Issues Gasping for IT Skills One Strategy That Worked Irish government subsidized tuition for students in technological programs Second largest exporter of software 60 percent of incoming university students enroll in technological programs per year Management Information Systems, 4th Edition

Ethical and Societal Issues Gasping for IT Skills (Cont.) Promoting National IT Should government subsidize technological education? Proponents: Benefits all society Detractors: Objectionable intrusion on personal pursuits and allocation of tax money Management Information Systems, 4th Edition

Summary Information technology personnel can be deployed in different ways There are advantages and disadvantages to different personnel deployments Collaboration between IS managers and business managers is important Charge back methods have advantages and disadvantages Management Information Systems, 4th Edition