1. Slide 7.1 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Organising and positioning IS activities Ch 7 – Boddy et al Alternative ways to structure IS activities Outsourcing or in-house? Charging for IS activities Managing IS as a partnership of three interest groups IS staff

2. Slide 7.2 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 IS in one user department Figure 7.1 IS positioned in one functional department: computers, software and data directed to one specific functional department

3. Slide 7.3 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Centralised IS Figure 7.2 Centralised IS architecture: centrally controlled computers, software and data

4. Slide 7.4 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Decentralised IS Figure 7.3 Decentralised IS architecture

5. Slide 7.5 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Characteristics of centralised and decentralised dominance Table 7.1 Characteristics of centralised and decentralised dominance Source: Reprinted from Corporate Information Systems Management: Text and Cases (Applegate, L.M., McFarlan, F.W. and Kennedy, J.L.) 2007, Irwin/McGraw-Hill, p. 420. Copyright © McGraw-Hill Companies, Inc.

6. Slide 7.6 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Federated IS Figure 7.4 Federated IS: resources jointly owned

7. Slide 7.7 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 IS as a resource pool Figure 7.6 IS supply as a resource pool

8. Slide 7.8 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Outsourcing Figure 7.7 Outsourcing IS activities

9. Slide 7.9 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Advantages and disadvantages of outsourcing Advantages Access to know how and consulting Lower personnel and fixed costs Greater attention to core business Risks loss of control and dependency Loss of experienced employees Paying too much for the service

10. Slide 7.10 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Questions on outsourcing (Lacity, 2001) Are the systems not strategic? Are we certain that our IS requirements will not change? Even if a system is a commodity, can it be broken off? Could the IT department provide this more efficiently? Do we have the knowledge to outsource an unfamiliar or emerging technology? What pitfalls should we expect when negotiating the contract? Can we design a contract that minimises the risks and maximises control and flexibility?

11. Slide 7.11 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Four ways to control IS activities Figure 7.9 Three (internal) interest groups in relation to IS

12. Slide 7.12 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Perceived failings from other parties’ perspectives Table 7.5 Perceived failings from other parties’ perspectives

13. Slide 7.13 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Technochange vs IT projects Table 7.6 Technochange vs. IT projects and organisational change programmes Source: Based on Markus (2004), pp. 94–5

14. Slide 7.14 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 IS activities Figure 7.10 Activities of a typical IS department

15. Slide 7.15 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 IT governance Figure 7.11 Domains of IT governance according to COBIT (2007)