Managing Information Systems as an Organizational Resource Chapter 12

Chapter Objectives Explain importance of managing IS Describe the functions of management and how they apply to IS management Describe managerial roles and how they apply to information systems management Describe sources of organizational power and the central role that IS plays Explain technology, organizational change, and resistance to change

The Importance of Successfully Managing Information Systems What is Management? –To plan, organize, lead, and control resources Why manage IS? –Overall costs of IS are growing and should be spent wisely –Well-managed IS cut cost in other areas of the firm and increase productivity

The Advent of the Chief Information Officer Evolution of the CIO –Started in the early 1980s –From realization that IS were of strategic value –Responsible for managing IS component within organizations The CIO today –Most organizations have a CIO or the equivalent

The Spread of Technology in Organizations IS staff spread throughout business units in many organizations Most IS managers trained in both IS and in a functional area

Key Issues in the Management of Information Systems The Functions of Management Managerial Roles Effective IS Managers IS and Organizational Power IS and Organizational Politics IS and Organizational Change

The Functions of Management Planning –Develop goals, strategies, and plans Organizing –Determine who does what tasks and makes which decisions Leading –Motivating, directing, resolving conflicts Controlling –Monitoring and modifying performance

Managerial Functions Applied to IS Higher-Level Manager –Planning Create integrated IS plan –Organizing Establish IS architecture –Leading Define IS strategic role –Controlling Coordinate lower-level IS managers Lower-Level Manager –Planning Formulate detailed IS project plan –Organizing Determine who serves on project teams –Leading Direct activities of teams –Controlling Monitor progress of project teams

Managerial Roles Interpersonal –Figurehead –Leader –Liaison Informational –Monitor –Disseminator –Spokesperson Decisional –Entrepreneur –Disturbance handler –Resource allocator –Negotiator

Effective IS Managers As defined by quality of performance and satisfaction of subordinates –Spend time on communication activities and human resource activities As defined by speed of what they are promoting –Spend time on personal networking

IS and Organizational Power Power is the ability to influence the behavior of others

IS and Organizational Politics Political behavior –Using power to influence people in ways that benefit the individual or unit, and not the organization as a whole Politics in IS –Effects decisions about vendors and system selections –Effects flow of sales data

IS and Organizational Change Change can be viewed as problem or opportunity –Problem when not effectively managed –Opportunity when it brings potential for rapid growth Rate of change in IS is very high Example of IS Change--The Year 2000

Managing Technological Change Changes brought about by new hardware and software Changes in skills required for technology

Managing Organizational Change Designing and implementing changes in organizational processes Common Types of changes –IS-related –Process improvements –Process changes –Structural –Growth –Shrinkage

Fear of Change Explanations of adverse reactions to change –Comfort in the status quo –Fear of the unknown –Threat to established expertise –Expose incompetence –Threat to power relationships –Poor/no fit with reward system

Resistance to Information Systems Changes Won’t use system Won’t attend training sessions Might cause delays or problems in system development Might speak out against the system Might sabotage the system Encourages others to follow this resistance

Techniques for Successful IS Management Effective Change Management Overcoming Resistance to Change Stakeholder Identification and Assumption Surfacing Managing Innovation Adoption

Effective Change Management Lewin’s change model –Unfreeze the status quo –Change to a new state –Refreeze the new state so that it becomes permanent

Overcoming Resistance to Change Communication and education Participation Facilitation and support Negotiation Manipulation and cooptation Coercion

Stakeholder Identification and Assumption Surfacing (SIAS) Steps in SIAS –Make list of all stakeholders in the new system –Identify whether they support the new system –Identify whether they have any power to influence the new system –Make graph of stakeholders to visually show resistance and support of new system

List of Stakeholders

Graph of Stakeholders

Managing Innovation Adoption Stages in the adoption process –Awareness –Interest –Evaluation –Trial –Adoption Stages of adoption –Innovators –Early majority –Late majority –Laggards

Rogers’s Stages of Adoption