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Organizing Information Technology

Resources

Chapter 10

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Mainframes Dictated IS Architecture be Centralized

AdvantagesHigh degree of controlEasy to maintain hardware, software, procedure,

and operation standardsEasy control of access to information

DisadvantagesInflexibleLack of customization

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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

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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

5Centralized vs. decentralized IS trade-offs

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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

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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)

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Trends in Information Systems Organization

Discarding Big Iron (mainframe computers)Switch to PCs brings distributed IS architecture

benefitsSome companies keep mainframe for processing

power

Reengineering with Information TechnologyEffort for breakthrough gains through radical

business process and system changesAlmost always leads to integrating IT in all processes

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Organizing the IS Staff

Central IS Organization Corporate IS team serves all units IS Director oversees departments within IS

System development and maintenance Information centerCommunicationsData administrationResearch and development

Involved in virtually every aspect of IT Steering committee oversees IS services

10An example of an IS unit’s organization with centrally managed ISs

Organizing the IS Staff

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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.

Organizing the IS Staff

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An example of IS personnel locations in an organization with functionally managed ISs

Organizing the IS Staff

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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 solutionsReports to CEO: IS more involved in strategic

planning

Organizing the IS Staff

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Chargeback Methods

Two ways to treat cost of IS function Part of overhead cost: General shared

expense

Chargeback system: Units charged for services

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Service Charges What is chargeable?

Personnel hoursComputer timeExternal storage spaceNumber of input and output operationsPaper output

Chargeback Methods

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Desirable Chargeback Features 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

Chargeback Methods

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Careers inInformation Systems

Systems analyst Limited analysis of business needs and ISs Updates and maintains existing ISs Designs new ISs

Analyzes system requirements from user inputDocuments efforts and system featuresProvides specifications for programmers

Agents of changeGood persuasion and presentation skills

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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

Careers inInformation Systems

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Telecommunications Manager Responsible for computer networks

Acquisition ImplementationManagementMaintenanceTroubleshooting

Assesses future needs of the business

Careers inInformation Systems

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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

Careers inInformation Systems

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Chief Knowledge Officer (CKO) Responsible for finding strategically important

knowledge resourcesAccumulates, organizes, and retrieves informationChief Learning Officer (CLO)

Independent Consultant Offers services to companies that lack qualified

personnel for specific tasks

Careers inInformation Systems