1. Organizing Information Technology Resources
Chapter 10
Organizing Information Technology Resources

2. Mainframes Dictated IS Architecture be Centralized
Advantages
High degree of control
Easy to maintain hardware, software, procedure, and operation standards
Easy control of access to information
Disadvantages
Inflexible
Lack of customization

3. Decentralized Information Systems Architecture
Allows departments and remote sites independence in organizing and using there is
Local IS department establishes infrastructure
Disadvantages
Difficult to share applications and data among units
Expensive to maintain and service different systems

4. Distributed Information Systems
Each unit selects and implements its own system.
Remote units can share resources through communication lines.
Many organizations changing to distributed architecture.
Increased reliability and affordability of data communication and PC technology

5. Centralized vs. decentralized IS trade-offs

6. Centralized vs. Decentralized ISs: Advantages and Disadvantages
Advantages of Centralized IS Management
Standardized hardware and software
Easier training
Encouragement of common reporting systems
Effective planning of shared systems
Easier strategic planning
Efficient use of IS personnel
Accommodation of tight control by top management
Centralized management of ISs

7. Advantages of Decentralized IS Management
Better fit of ISs to business needs
Timely responsiveness of IS units to business demands
Encouragement of end user application development
More innovative use of ISs
Support for delegation of authority
Decentralized management of ISs (in fully decentralized management, the central IS unit would not exist)

8. Trends in Information Systems Organization
Discarding Big Iron (mainframe computers)
Switch to PCs brings distributed IS architecture benefits
Some companies keep mainframe for processing power
Reengineering with Information Technology
Effort for breakthrough gains through radical business process and system changes
Almost always leads to integrating IT in all processes

9. Organizing the IS Staff
Central IS Organization
Corporate IS team serves all units
IS Director oversees departments within IS
System development and maintenance
Information center
Communications
Data administration
Research and development
Involved in virtually every aspect of IT
Steering committee oversees IS services

10. Organizing the IS Staff
An example of an IS unit’s organization with centrally managed ISs

11. Organizing the IS Staff
Functional IS Organization
Each unit fulfills IS needs independently.
Each business unit has one or several IS professionals who report to the unit manager.
Funds come from unit budget.
Small central unit can coordinate IS for departments that need help.

12. Organizing the IS Staff
An example of IS personnel locations in an organization with functionally managed ISs

13. Organizing the IS Staff
The Best of Both Approaches
Many companies use elements of both central and functional IS management.
Regardless of IS management, implementation depends on position of highest IS officer.
Reports to VP: IS provides technical solutions
Reports to CEO: IS more involved in strategic planning

14. Chargeback Methods Two ways to treat cost of IS function
Part of overhead cost: General shared expense
Chargeback system: Units charged for services

15. Chargeback Methods Service Charges What is chargeable? Personnel hours
Computer time
External storage space
Number of input and output operations
Paper output

16. Chargeback Methods Desirable Chargeback Features Chargeback Criticism
Accountability
Controllability
Timeliness
Congruence with organizational goals
Chargeback Criticism
Expense may discourage IT initiatives
High rates can be frustrating
Overhead Expenditures
Research and development
Corporation-wide data communications

17. Careers in Information Systems
Systems analyst
Limited analysis of business needs and ISs
Updates and maintains existing ISs
Designs new ISs
Analyzes system requirements from user input
Documents efforts and system features
Provides specifications for programmers
Agents of change
Good persuasion and presentation skills

18. Careers in Information Systems
Database Administrator (DBA)
Responsible for data architecture of an organization
Planning and design
Physical organization and storage
Logical organization & Schema development
Data dictionary development and maintenance
Security measures for access and proper use
Failure recovery and back-up measures
Updates and data integrity
Interfaces of internal databases with other ISs
Database personnel management

19. Careers in Information Systems
Telecommunications Manager
Responsible for computer networks
Acquisition
Implementation
Management
Maintenance
Troubleshooting
Assesses future needs of the business

20. Careers in Information Systems
Webmaster
Creates and maintains Web site and intranet pages
Must know Web technology, business strategy, security
Chief Information Officer (CIO)
Responsible for all aspects of ISs
Oversees IS research and development
Oversees IS infrastructure development
Serves as chief technologist
Serves as chief agent of change

21. Careers in Information Systems
Chief Knowledge Officer (CKO)
Responsible for finding strategically important knowledge resources
Accumulates, organizes, and retrieves information
Chief Learning Officer (CLO)
Independent Consultant
Offers services to companies that lack qualified personnel for specific tasks