Chapter 15: Managing the Information Systems Function.
-
Upload
lauren-welch -
Category
Documents
-
view
245 -
download
0
Transcript of Chapter 15: Managing the Information Systems Function.
![Page 1: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/1.jpg)
Chapter 15:Managing the Information
Systems Function
![Page 2: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/2.jpg)
Critical Areas of the IT Management System
An Agreed-Upon Role for the IS Organization
IS Leadership -- the CIO Active Role for User-Managers Strategic and Economic Rationale
for Outsourcing An Equitable Financing System
![Page 3: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/3.jpg)
Critical Areas of the IT Management System
IS Staff/User Development Global Information Systems
Development Appropriate IS Organization Design Regular Performance Measurement A Change Management System
![Page 4: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/4.jpg)
1. Role of the IS Organization
The role of the IS organization is to be the steward of the information and IT resources of the organization, much as the finance organization is the steward for financial resources
![Page 5: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/5.jpg)
1. Role of the IS Organization
Deploy IT resources, and facilitate the productive use of these resources
Develop IT vision/architecture Maintain control over info.
resources, including data Develop partnership with user-
managers to exploit IT
![Page 6: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/6.jpg)
2. Chief Information Officer (CIO)
The most senior organizational officer who is responsible for only information technology
The CIO leads all usage of IT from a general business perspective, but may or may not have operating responsibility for the IS organization
![Page 7: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/7.jpg)
2. Role of the CIO
Manages the organization’s information and IT resources
Part of senior executive group Staff rather than line (usually) Responsible for developing an IT
architecture that fits the organization’s objectives, management style, and culture
![Page 8: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/8.jpg)
3. User-Manager Role
Senior IS managers must work in partnership with non-IS senior managers to ensure the productive use of IT
This partnership is often accomplished through an IS Policy Committee, or an IS Steering Committee
![Page 9: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/9.jpg)
4. Outsourcing
The elimination of part of the internal IS organization (or not adding people) by hiring an outside organization to perform these functions
![Page 10: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/10.jpg)
4. Outsourcing: Primary Drivers
Cost reduction (due to economies of scale)
Avoid investments to handle peak loads Focus on what’s “core” (stick-to-
the-knitting) Difficult to keep pace with technology
changes, demands for new IT skill sets Facilitate acquisitions / divestitures
![Page 11: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/11.jpg)
4. Outsourcing
Must be viewed as both a remedy for service failures or cost issues AND as a strategic choice
Must be done selectively Don’t outsource elements of IT
that have STRATEGIC value to the firm!
![Page 12: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/12.jpg)
5. Financing IT
Must measure and manage IT costs - including comparison with other firms/industries
Must measure benefits, but the problem of intangible benefits looms large
User-managers, not IS, must justify IT investments!
![Page 13: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/13.jpg)
5. Financing IT
Chargeback systems sometimes used to hold IS and line organizations accountable for the impact of systems on the organization
![Page 14: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/14.jpg)
6. IS Staff/User Development
“An effective IT management system will allocate significant resources to the continuing development of both IS personnel and users.”
TRAINING is critical!
![Page 15: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/15.jpg)
6. IS Staff/User Development
Selected IS Management Positions: CIO, IS Director, Information Center Manager, Systems Development Manager, IS Planning Manager, Data Center Manager, Programming Manager, Telecommunications Manager, Database Administrator, etc.
![Page 16: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/16.jpg)
7. Problems Associated with Global IT
Language, currency Culture National infrastructure Availability of IT staff Transborder data flows Trade unions IT costs and availability
![Page 17: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/17.jpg)
7. Global IS Strategies
IMPERIALISTIC strategy - tightly controls international operations, making them extensions of headquarters -IS management centralized, common architecture for IT, one or a few data centers, IT planning/funding centralized, hierarchical IS organization
![Page 18: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/18.jpg)
7. Global Business Strategies (cont.)
MULTIDOMESTIC strategy - highly decentralized with only necessary financial ties between subsidiaries and headquarters - really a federation of separate companies - IS management and operations are largely localized
![Page 19: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/19.jpg)
7. Global Business Strategies (cont.)
GLOBAL strategy - both high degree of integration and high degree of local control - teamwork is key - IS integrates a few key technologies and resources as part of the architecture, but rest is left to local control - IS organization is usually a matrix structure
![Page 20: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/20.jpg)
7. Planning for Global Systems (Roche, 1992)
Use technology to cement strategic alliances (EDI, databases)
Develop international systems development skills (have a global view)
Build for the future (common telecommunications, consistent hardware/software platforms, global data definitions)
![Page 21: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/21.jpg)
7. Planning for Global Systems (continued)
Tear down the “national” model (hardware/software standards, international workflow automation)
Eliminate duplicate facilities and staffs
Take advantage of improving international telecommunications
![Page 22: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/22.jpg)
7. Planning for Global Systems (continued)
Standardize data structures and definitions
Globalize human resources in IS (worldwide promotions and relocations, multinational project team selection)
![Page 23: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/23.jpg)
8. IS Organization Design
Classic IS organization - often reports to VP-Administration, VP-Finance, or Comptroller - highly centralized, task oriented - focus on efficiency
Functional area IS organization -- reports as above - separate development groups for each functional area
![Page 24: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/24.jpg)
8. IS Organization Design
Service-oriented IS organization - often reports to Executive VP, Senior VP - focus on service, including data administration, telecommunications, information center, R & D
![Page 25: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/25.jpg)
8. IS Organization Design
Distributed IS organization - often reports to Exec VP, Sr VP, or CEO - central IS has planning and coordination responsibilities
Federal IS organization - IS staff still distributed, but has centralized data centers
![Page 26: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/26.jpg)
8. Factors Favoring Centralization of IS
Specialization of personnel is possible
Avoid duplication of dev. efforts Maintain a critical mass of
specialists Provide an organization-wide, long-
range focus Standardization
![Page 27: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/27.jpg)
8. Factors Favoring Decentralization of IS
Hardware economics Responsiveness to local needs Reduced communication costs Allow local units to have control
over their own destiny Corp. decentralization policy Maintain a bottom-line perspective
![Page 28: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/28.jpg)
8. Other Issues in Decentralization
To where? Region, division, product line, location, department, individual user, outside vendor
In what sense? Geographical, management, resource allocation
![Page 29: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/29.jpg)
8. Core Roles of Central IS
IT vision and architecture IT strategic planning Research & development Backbone/wide area networks Develop corporate-wide
applications Corporate data center
![Page 30: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/30.jpg)
9. Regular Performance Measurement
Regular evaluation of IS organization by its internal customers, based on agreed-upon and measurable criteria
Might be done through Service Level Agreements
More likely through user satisfaction surveys
![Page 31: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/31.jpg)
10. A Change Management System
IT initiates massive change in an organization, so an effective IT management system must include a change management system
Understanding change is important!
![Page 32: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/32.jpg)
10. Lewin/Schein Change Model
UNFREEZING - Establish a felt need - Create a safe atmosphere
MOVING - Provide necessary information - Assimilate knowledge and develop skills
REFREEZING
![Page 33: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/33.jpg)
10. Rogers’ Stages of the Adoption Process
Awareness Interest Evaluation Trial Adoption
![Page 34: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/34.jpg)
10. Ease of Adoption Characteristics (Rogers)
Relative advantage
Compatibility Complexity Divisibility Communicability
![Page 35: Chapter 15: Managing the Information Systems Function.](https://reader036.fdocuments.in/reader036/viewer/2022081501/56649ea25503460f94ba6047/html5/thumbnails/35.jpg)
10. Diffusion of an Innovation (Rogers)
Diffusion over time follows a bell-shaped curve
First 2.5% of adopters are the innovators - risk-takers, but not opinion leaders
Next 13.5% are the early adopters - they are the opinion leaders, and thus are crucial!