© Pearson Prentice Hall 2009 Using MIS 2e Chapter 11 Information Systems Management David Kroenke © Pearson Prentice Hall 2009

Study Questions Q1 – What are the functions of the IS department? Q2 – How do organizations plan the use of IS? Q3 – What tasks are necessary for managing computing infrastructure? Q4 – What tasks are necessary for managing enterprise applications? Q5 – What are the advantages and disadvantages of outsourcing? Q6 – What are your user rights and responsibilities? © Pearson Prentice Hall 2009

Q1 – What are the functions of the IS department? Q2 – How do organizations plan the use of IS? Q3 – What tasks are necessary for managing computing infrastructure? Q4 – What tasks are necessary for managing enterprise applications? Q5 – What are the advantages and disadvantages of outsourcing? Q6 – What are your user rights and responsibilities? © Pearson Prentice Hall 2009

Q1: What are the functions of the IS department? The major functions of a typical IS department include: Planning the use of information technology to accomplish the organization’s goals and strategy. Developing, operating, and maintaining the organization’s computing infrastructure. Developing, operating, and maintaining enterprise applications. Protecting information assets. Managing outsourcing relationships. Each organization’s IS structure varies depending on these factors: Size Culture Competitive environment Industry Other factors © Pearson Prentice Hall 2009

Q1: What are the functions of the IS department? 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). Fig 11-1 Typical Senior-level Reporting Relationships © Pearson Prentice Hall 2009

Q1: What are the functions of the IS department? The Technology office, headed by the Chief Technology Officer (CTO) investigates new information systems technologies and determines how the organization might benefit from them. The Operations function manages the computing infrastructure, monitors system users, and responds to their problems. It includes system and network administrators. The Development department manages the process of creating new information systems while maintaining existing information systems. It includes analysts who work with users, operations, and vendors to acquire and install licensed software. It may include programmers, test engineers, and technical writers. © Pearson Prentice Hall 2009

Q1 – What are the functions of the IS department? If an organization uses outsourcing vendors, it may have a department devoted to managing its outsourcing relationships. It negotiates outsourcing agreements with other companies to provide equipment, applications, and other services. Some companies have a separate data administration function that is responsible for protecting data and information assets by establishing data standards and data management practices and policies. Remember Information systems help a business achieve its goals and objectives and include five components—hardware, software, data, procedures, and people. Information technology focuses on products, techniques, procedures, and designs of technology. © Pearson Prentice Hall 2009

Q2 – How do organizations plan the use of IS? Q1 – What are the functions of the IS department? Q2 – How do organizations plan the use of IS? Q3 – What tasks are necessary for managing computing infrastructure? Q4 – What tasks are necessary for managing enterprise applications? Q5 – What are the advantages and disadvantages of outsourcing? Q6 – What are your user rights and responsibilities? © Pearson Prentice Hall 2009

Q2 – How do organizations plan the use of IS? 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. Fig 11-2 Planning the Use of IS/IT © Pearson Prentice Hall 2009

Q3 – What tasks are necessary for managing computing infrastructure? Q1 – What are the functions of the IS department? Q2 – How do organizations plan the use of IS? Q3 – What tasks are necessary for managing computing infrastructure? Q4 – What tasks are necessary for managing enterprise applications? Q5 – What are the advantages and disadvantages of outsourcing? Q6 – What are your user rights and responsibilities? © Pearson Prentice Hall 2009

Q3 – What tasks are necessary for managing computing infrastructure? The IS infrastructure must mirror the organization’s structure. That is, if the organization itself is highly controlled and centralized, then the IS infrastructure should be also. If the organization is decentralized with autonomous operating units, then the IS infrastructure should support that. The figures below show the discord between one type of organizational structure and another type of IS infrastructure. Fig 11-3 Distributed Check-Printing Company Fig 11-4 Problematic Centralized IS Fig 11-5 Decentralized Order-Management System © Pearson Prentice Hall 2009

Q3 – What tasks are necessary for managing computing infrastructure? The IS department is responsible for creating, operating, and maintaining the organization’s computing infrastructure for end-users, networks, data centers, data warehouses, and data marts. The IS department must establish technology and product standards and ensure end-users do not deviate from them. On the other hand, IS configurations must support the type of work users do. The IS department must track user problems and monitor their resolution. They assign a tracking number to the problem, enter it into the queue according to its priority, and monitor the problem until it’s resolved. CIOs and managers should also monitor problem resolution. © Pearson Prentice Hall 2009

Q3 – What tasks are necessary for managing computing infrastructure? The figure below shows a typical IS operations group. Note all of the people necessary to support an information system. Fig 11-6 Organization of a Typical IS Operations Group © Pearson Prentice Hall 2009

Q4 – What tasks are necessary for managing enterprise applications? Q1 – What are the functions of the IS department? Q2 – How do organizations plan the use of IS? Q3 – What tasks are necessary for managing computing infrastructure? Q4 – What tasks are necessary for managing enterprise applications? Q5 – What are the advantages and disadvantages of outsourcing? Q6 – What are your user rights and responsibilities? © Pearson Prentice Hall 2009

Q4 – What tasks are necessary for managing enterprise applications? If an organization uses enterprise applications, it may need support staff for managing them. Either the IS department manages everything, or individuals and workgroups manage their own applications. Enterprise applications include some functional applications and all cross-functional applications including CRM, ERP, EAI, and SCM This figure provides a list of tasks involved in managing enterprise applications. Fig 11-7 Managing Enterprise Applications © Pearson Prentice Hall 2009

Q4 – What tasks are necessary for managing enterprise applications? This figure shows how a typical IS development group might be organized. Each business may adapt this chart to its own needs. Fig 11-8 Organization of a Typical IS Development Group © Pearson Prentice Hall 2009

Q4 – What tasks are necessary for managing enterprise applications? Administering data resources is a very important function with two aspects: Data administration, which pertains to all of an organization’s data assets. Database administration, which pertains to a particular database. A data administrator/database administrator supervises the entire data functional group. This figure describes the responsibilities of data administration. Fig 11-9 Data Administration Responsibilities © Pearson Prentice Hall 2009

Q4 – What tasks are necessary for managing enterprise applications? One of the responsibilities of data administration is to establish and maintain a data dictionary. This figure is an example of some of the fields found in a data dictionary. Fig 11-10 Example of Data Dictionary Fields © Pearson Prentice Hall 2009

Q5 – What are the advantages and disadvantages of outsourcing? Q1 – What are the functions of the IS department? Q2 – How do organizations plan the use of IS? Q3 – What tasks are necessary for managing computing infrastructure? Q4 – What tasks are necessary for managing enterprise applications? Q5 – What are the advantages and disadvantages of outsourcing? Q6 – What are your user rights and responsibilities? © Pearson Prentice Hall 2009

Q5 – What are the advantages and disadvantages of outsourcing? 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. International outsourcing is well-suited to 24/7 operations like customer support. Some say outsourcing is a threat to U.S. technology leadership. Fig 11-11 Popular Reasons for Outsourcing IS Services © Pearson Prentice Hall 2009

Q5 – What are the advantages and disadvantages of outsourcing? This figure shows alternatives businesses have for outsourcing some or all of their information system components. Fig 11-12 IS/IT Outsourcing Alternatives © Pearson Prentice Hall 2009

Q5 – What are the advantages and disadvantages of outsourcing? There are a lot of risks to outsourcing information systems as this figure describes. Fig 11-13 Outsourcing Risks © Pearson Prentice Hall 2009

Q6 – What are your user rights and responsibilities? Q1 – What are the functions of the IS department? Q2 – How do organizations plan the use of IS? Q3 – What tasks are necessary for managing computing infrastructure? Q4 – What tasks are necessary for managing enterprise applications? Q5 – What are the advantages and disadvantages of outsourcing? Q6 – What are your user rights and responsibilities? © Pearson Prentice Hall 2009

Q6 – What are your user rights and responsibilities? You have certain rights with regard to the IS department that supports you in your job. Here is a list of them. Fig 11-14 User Information Systems Rights © Pearson Prentice Hall 2009

Q6 – What are your user rights and responsibilities? You also have responsibilities with regard to supporting your IS department. They include those shown in the list below. Fig 11-14 User Information Systems Responsibilities © Pearson Prentice Hall 2009