1. 1 Management of IS How do business organize themselves to manage IS and IT activities? –Depends upon the type of technology –Depends upon the size of the business

2. 2 What Needs to be Managed? Procurement activities –Of hardware, software and services Deployment or implementation activities –How do we get this stuff working within the business? Maintenance –Keeping everything running as the business evolves –Hardware, software, databases, web presence Protection –Backup and continuity planning –Security and audits –Disaster response

3. 3 Organizational Objectives Cost effectiveness –Firms that spend too much on IT become uncompetitive Responsiveness –Is IT organization able to respond quickly and appropriately to business needs? Quality and Effectiveness –Is the IT organization competent? Do they get the job done?

4. 4 Organizational Models Informal –Very small organizations don’t have any formal IT function – “a guy” Formal –Organizations have from 1 to thousand’s of employees dedicated to IT

5. 5 Formal Organization Models Decentralized –IT employees report to business unit or department, not to a central, corporate organization Centralized –Employees report to a central organization

6. 6 Pros and Cons of Decentralization Advantages –Responsiveness to local business unit Close proximity = easy communication Little bureaucracy Familiarity with business Feeling of ownership and belonging Disadvantages –Will tend to be reactive rather than strategic –Small size will make skill development and training more difficult –Lack of management expertise and professionalism –Will result in less efficiency for entire enterprise

7. 7 Pros and Cons of Centralization Advantages –Cost savings through standardization –Procurement cost savings due to volume –Training efficiencies –Greater career opportunities with enhance attractiveness as a place to work Disadvantages –Slow and bureaucratic (perceived to be) –Out of touch with real business –Cost accounting and charge back requirements

8. 8 Current Large Business Trends Centralize and standardize procurement –All hardware –Most software Centralize web management and standards –But perhaps not development Centralize management of support of office systems Dual reporting for business application development –Corporate and business unit

9. 9 Careers In Information Systems Software Development –Business or C.S. background Database Administration Systems Analysis –Design business solutions Project and program managers –Understand technology –Manage people, decisions, contracts, schedules