Using MIS 2e Chapter 11: Information Systems Management David Kroenke

Using MIS 2e
Chapter 11: Information
Systems Management
David Kroenke
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Study Questions

Q1 – What are the functions of the IS department?
 Q1a – How do I select the best technology?

Q2 – How do organizations plan the use of IS?

Q3 – What tasks are necessary for managing computing infrastructure?

Q4 – What tasks are necessary for managing enterprise applications?

Q5 – What are the advantages and disadvantages of outsourcing?

Q6 – What are your user rights and responsibilities?
Chapter 11: Information Systems Management
11-2
Q1 – What are the functions of the IS department?



The major functions of a typical IS department include:
 Planning the use of information technology to accomplish the
organization’s goals and strategy.
 Developing, operating, and maintaining the organization’s
computing infrastructure.
 Developing, operating, and maintaining enterprise applications.
 Protecting information assets.
 Managing outsourcing relationships.
Each organization’s IS structure varies according to its size, culture,
competitive environment, industry, and other factors
The title of the principal manager of the IS department varies from
organization to organization.
 A common title is Chief Information Officer, or CIO
 Other common titles are vice president or Director of Information
services.
Chapter 11: Information Systems Management
11-3
Q1 – What are the functions of the IS department (reporting relationships)?
The CIO, like other senior executives,
typically reports directly to the CEO
Fig 11-1 Typical Senior-level Reporting Relationships
Chapter 11: Information Systems Management
11-4
Q1 – What are the functions of the IS department?

The Technology office, headed by the Chief Technology Officer
(CTO) investigates new information systems technologies and
determines how the organization might benefit from them.

Gartner Research (www.gartner.com) is the world’s leading information
technology research and advisory company providing technology-related
insight necessary for clients to make the right decisions, every day.
Founded in 1979, Gartner is headquartered in Stamford, Connecticut,
U.S.A., and has 4,000 associates, including 1,200 research analysts and
consultants in 80 countries.

Gartner is free to UM students and alumni

Forrester Research, Inc. (www.forrester.com) is an independent
research company that provides pragmatic and forward-thinking advice
to global leaders in business and technology. Forrester works with
professionals in 19 key roles at major companies providing proprietary
research, consumer insight, consulting, events, and peer-to-peer
executive programs. For more than 25 years, Forrester has been making
IT, marketing, and technology industry leaders successful every day.
Chapter 11: Information Systems Management
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Q1a – How do I Select the Best Technology (Gartner’s Magic Quadrant)
The Magic Quadrant is
based on two axes:
Ability to Execute:
Summarizes factors such as
the vendor's financial
viability, market
responsiveness, product
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perspective.
Chapter 11: Information Systems Management
11-6
Q1a – How do I Select the Best Technology (Gartner Hype Cycle)
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Each point on a hype cycle
includes an estimate of the
expected time to
mainstream adoption.
Chapter 11: Information Systems Management
11-7
Q1 – What are the functions of the IS department (continued)?




The Operations function manages the computing infrastructure,
monitors system users, and responds to their problems. It includes
system and network administrators.
The Development department manages the process of creating new
information systems while maintaining existing information systems.
It includes analysts who work with users, operations, and vendors to
acquire and install licensed software. It may include programmers,
test engineers, and technical writers.
If an organization uses outsourcing vendors, it may have a
department devoted to managing its outsourcing relationships. It
negotiates outsourcing agreements with other companies to provide
equipment, applications, and other services.
Some companies have a separate data administration function that
is responsible for protecting data and information assets by
establishing data standards and data management practices and
policies.
Chapter 11: Information Systems Management
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Q2 – How do organizations plan the use of IS?

An organization must take the following steps to plan how it will use
IS and IT and to make sure both of them support the organization’s
strategy.






Align information systems with organizational strategy
Communicate IS/IT issues to executive group
Develop/enforce IS priorities within the IS department
Sponsor steering committee
The CIO is responsible for most of these items. It’s a never-ending
process as organizations change, grow, or merge with other
companies.
The steering committee, a group of senior managers from major
business functions, works with the CIO to set IS priorities, make
decisions about major IS projects, and serve as a communication
channel between users and the IS function.
Chapter 11: Information Systems Management
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Q3 – What tasks are necessary for managing computing infrastructure?


The IS infrastructure must mirror the organization’s structure. That is, if the
organization itself is highly controlled and centralized, then the IS
infrastructure should be also. If the organization is decentralized with
autonomous operating units, then the IS infrastructure should support that.
The figures below show the discord between one type of organizational
structure and another type of IS infrastructure.
Fig 11-3 Distributed CheckPrinting Company
Chapter 11: Information Systems Management
Fig 11-4 Problematic
Centralized IS
Fig 11-5 Decentralized OrderManagement System
11-10
Q3 – What tasks are necessary for managing computing infrastructure?

The IS department is responsible for creating, operating, and
maintaining the organization’s computing infrastructure for endusers, networks, data centers, data warehouses, and data marts.

The IS department must establish technology and product standards
and ensure end-users do not deviate from them. On the other hand,
IS configurations must support the type of work users do.

The IS department must track user problems and monitor their
resolution. They assign a tracking number to the problem, enter it
into the queue according to its priority, and monitor the problem until
it’s resolved. CIOs and managers should also monitor problem
resolution.
Chapter 11: Information Systems Management
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Q3 – What tasks are necessary for managing computing infrastructure?

The figure below shows a typical IS operations group. Note all of the
people necessary to support an information system.
Fig 11-6 Organization of a Typical IS Operations Group
Chapter 11: Information Systems Management
11-12
Q4 – What tasks are necessary for managing enterprise applications?



If an organization uses enterprise applications, it may need support
staff for managing them. Either the IS department manages
everything, or individuals and workgroups manage their own
applications.
Enterprise applications include some functional applications and all
cross-functional applications including CRM, ERP, EAI, and SCM.
The following is a list of tasks involved in managing enterprise
applications:






Manage development of new applications
Maintain legacy systems
Adapt systems to changing requirements
Track user problems and monitor fixes
Integrate applications
Manage development staff
Chapter 11: Information Systems Management
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Q4 – What tasks are necessary for managing enterprise applications?

This figure shows how a typical IS development group might be
organized. Each business may adapt this chart to its own needs.
Fig 11-8 Organization of a Typical IS Development Group
Chapter 11: Information Systems Management
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Q4 – What tasks are necessary for managing enterprise applications?

Administering data resources is a very important function with two
aspects:


Data administration, which pertains to all of an organization’s data
assets.

Database administration, which pertains to a particular database.

The two terms are often used interchangeably, but database
administration is the more common
A data administrator/database administrator supervises the entire
data functional group. Data administration is an enterprise-wide
function that includes the following tasks:
 Define data standards
 Maintain data dictionary
 Define data policies
 Establish disaster-recovery plan
Chapter 11: Information Systems Management
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Q5 – What are the advantages and disadvantages of outsourcing?




Outsourcing is the process of hiring another organization to perform
a service. It’s rise is due to several factors:
 Massive capital was raised during the “Internet
Bubble” era
 Capital was used to create infrastructure as the
cost of communication plunged
 Computers became even cheaper and software
continued to evolve
 The result is that intellectual work can be delivered
from anywhere at any time
India is the most popular foreign outsourcer because of its large,
well-educated, English-speaking population who earn 20 to 30
percent less in labor costs than their U.S. counterparts.
Outsourcing also occurs within the US; e.g., Jet Blue
The global playing field has been leveled; the world is flat!
Chapter 11: Information Systems Management
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Q5 – What are the advantages and disadvantages of outsourcing?
EDS is a successful vendor of hardware
Licensing software is a form of outsourcing
A Web storefront; e.g., Amazon provides a storefront for vendors
who choose not to develop their own Web presence
PeopleSoft provides an entire function (e.g. payroll)
Chapter 11: Information Systems Management
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Q5 – What are the advantages and disadvantages of outsourcing?
Outsourcing offers several advantages . . .
But it is not without its
disadvantages. . . Some
would say that you are
outsourcing middle
management of the same
IT personnel you had
originally
Chapter 11: Information Systems Management
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Q6 – What are your user rights and responsibilities?
Chapter 11: Information Systems Management
11-19
Summary

The major functions of the IS department are to








Plan the use of IT so as to accomplish the organization’s goals
Manage the organization’s computing infrastructure.
Develop, operate, and maintain enterprise applications.
Protect the organization’s information assets.
Manage outsourcing relationships.
The principal manager of the IS department is the Chief
Information Officer (CIO) who typically reports to the CEO.
The Chief Technology Officer (CTO) identifies new IT
products that will be relevant to the organization.
The IS department manages the computing infrastructure
by aligning it with organization’s structure and dynamics.
Chapter 11: Information Systems Management
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Summary (Continued)




Data administration and database administration are
functions in the IS department that protect the
organization’s information assets.
Outsourcing is the process of hiring another organization to
perform a function or service.
Companies outsource hardware, programs, applications,
and even entire business functions.
As a future user of information systems, facilities, and
services, you have rights and responsibilities.
Chapter 11: Information Systems Management
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Review: Select the appropriate term for each item
CIO – CTO –Outsourcing – Information System – Information Technology
– Legacy system – Development group – Operations group
1.
2.
3.
4.
5.
6.
7.
8.
It is comprised of hardware, software, data, people, and
procedures Information System
This position typically reports to the CEO CIO
This individual is responsible for determining which new
technologies are relevant to the organization CTO
Hiring another organization to perform a service Outsourcing
Outdated system still in use Legacy system
Manages the computing infrastructure, data centers, and data
warehouses Operations Group
Staffed by systems analysts, programmers, test engineers,
and technical writers Development Group
Products, methods, inventions, and standards used for the
purpose of producing information Information Technology
Chapter 11: Information Systems Management
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