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

2. Organizing IS Resources
Strategy
Tactics
Operations

3. 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

4. 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

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

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. Summary of MIS Organization

13. Complete Centralization
Hardware
Data and
software
MIS personnel
User departments

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

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

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

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

18. Growth of PCs

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

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

21. 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.

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

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

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

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

26. 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

27. 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.

28. Cases: Financial Services

29. Cases: Fidelity Investments Charles Schwab & Co.
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?

30. 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

31. 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.

32. 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.

33. 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

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

35. Gantt Chart (continued)

36. 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.

37. SpringForwardCentury.mpp
Ride Day