1. Reasons for, Importance, and Roles of IS Management ISM 4300 Spring, 2003

2. 2 Course Framework  “New” Economy  Role of the Internet  Knowledge Management/Sharing  Role of IS Management  Shifting from tech job to collaborative effort  No longer just providing TPS applications  Many alternatives  Outsourcing  Buy versus build

3. 3 A Little History  U.S. passed from the industrial era to the information era as early as 1957.  The number of U.S. employees whose jobs were primarily to handle information surpassed the number of industrial workers.

4. 4 Percentage Aggregation of the U.S. Workforce Source: Marc U. Porat, The Information Economy, Office of Telecommunications Policy, U.S. Department of Commerce (Washing DC, 1977). 50 40 30 20 10 1880 1900 1920 1940 1960 1980 Year Percentage Information Service Industry Agriculture

5. 5 Three major trends  Initiative and responsibility for managing IT shifting from IS execs to collaborative effort  Role of IT dept is shifting from application delivery to system integration and infrastructure development  Outsourcing is becoming a way of life for IS departments  Responsibility for developing and managing contracts and relationships with outsourcing vendors

6. 6 The External Business Environment  IT moves info faster, which makes processes change faster  The hurrider I go, the behinder I get  Cycle time reduction  Rapid response to changing business environment – agile organizations  Globalization  Deregulation  Telecomm deregulation act of 1996

7. 7 The Internal Organizational Environment  Outsourcing and Strategic Alliances  What should be done internally or externally by others  Supply-push transitioning to demand-pull  Collaboration and team-based working  Information sharing  Virtual teams  The Demise of Hierarchy  Hierarchical structures cannot cope with rapid change.  See Drucker article for next class  Does technology drive change or support/enable change?

8. 8 New Work Environment  Leverage data/information/knowledge globally  Organize for complexity and change  Mobility  Adaptability  Response to change  Work electronically  Any time; any where; any one

9. 9 The Technology Environment  IT “enables” advances in organizational performance.  Productivity paradox and improvement  Hardware Trends  Batch processing predominant; on-line systems emerged later  1980s: Advent of personal computers  Client-Server computing: “Client” machine user interfaces with “Server” on holding the data and applications (much more on this later)

10. 10 The Technology Environment  Software Trends  Improve the productivity of in-house programmers who created transaction processing systems  Make versus buy versus buy&modify versus outsource  Programming issues:  Modular and structured programming techniques  Object-oriented technologies  Software quality  Life cycle development methodologies and software engineering  Introduction of rigorous project management techniques.

11. 11 The Technology Environment (Software Trends)  Prototyping: quick development of a mock-up  RAD  JAD  Extreme programming Extreme programming  Purchasing software became viable alternative to in-house development  ERP  CRM  Paying attention to applications other than TPS  Decision support systems (DSS)  Report generation  Database inquiry (e.g.SQL)  EIS  End users develop their own systems

12. 12 The Technology Environment  First 20 years: techniques to manage data in a centralized environment  Emphasis on high speed x-act processing  Data Trends  File management  Corporate databases  Database management systems  Dictionary/directory  Specification and format  Data definitions: information about relationships among systems, sources and uses of data, and time cycle requirements.

13. 13 The Technology Environment  Data Trends  PCs: employees directly access corporate data.  Distributing data from data resources to information resources  Data management organizes internal facts into data record format  Information management  Digitized media  Managing the intellectual capital of the organization  Knowledge management

14. 14 The Technology Environment  Communications Trends  Public and private (intra-company)  Telecom as an integral component of IS management  Communications-based information systems link organizations to their suppliers and customers  Strategic advantage  Enabler for distributing computing  Shifted mainframe-centered computing to network-centric computing

15. 15 The Mission of Information Systems  Early days: “paperwork factories”  Objectives of information systems defined by productivity measures  MIS era: produced reports for “management by exception” for all levels of management  Today:Improve the effectiveness and performance of people in organizations  Performance improvement: a goal based on the outcomes  Focus is the people  Resource for this improvement is IT

16. 16 A Simple Model System Analyst SystemDevelopment InformationTechnologyUsers

17. 17  Some applications, such as Web page development, database management, and spreadsheet manipulation, are developed and used by employees. SystemDesigner ExpandedInformationTechnologies Sophisticated Products and Customers InformationSpecialist

18. 18 A Better Model SystemDesigner InformationSpecialist ExpandedInformationTechnologies Sophisticated Products and Customers User-Oriented Systems Knowledgeable Users

19. 19 A Better Model  The Users  Activities are well defined  Efficiency  Handling data  Measured by results  Figuring out how to attain goals  Handling concepts, not data  The wave of the future is applying IT to goal-based activities, where the enterprise is more important than the process.

20. 20 Procedure Based Knowledge Based A Dichotomy of Information Work  High volume of transactions  Low cost (value) per transaction  Well-structured procedures  Output measures defined  Focus on process  Focus on efficiency  Handling of “data”  Predominantly clerical workers  Examples  “ Back office”  Mortgage servicing  Payroll processing  Check processing  Low volume of transactions  High value (cost) per transaction  Ill-structured procedures  Output measures less defined  Focus on problems and goals  Focus on effectiveness  Handling of concepts  Managers and professionals  Examples Loan department Asset/liability management Planning department Corporate banking

21. 21 IS Management  Four major components:  The technology  Information workers  The system development and delivery function  The management of the IS function