IS 371 Week 3 Agenda: • Administrative things • Homework #1 due now Watch for grades on COL • • IT Departmen

1. IS 371 Week 3 Agenda: • Administrative things • Homework #1 due now Watch for grades on COL • • IT Department Administration (more) • IT Globalization and Culture • IT Outsourcing

2. IT Traditional Roles/Responsibilities • • Enable corporate strategies  • - Competitive strategies • - Low Cost/High Quality/Special Niche  • • Process redesign  • - Value enhancement  • • Enhance workgroup productivity  • • Infrastructure/Architecture  • • Service Management  • • Resource Management • The Real, Critical Role of IS Management is to translate these IT activities for User Managers

3. Information Management Superiority - Strassmann IT and business plans must be congruent Exercises authority and achieves corporate consensus Business Plan Alignment Governance Process Improvement Operating Excellence Searching for improvements is ongoing (Kaizen) Quality in the business process is critical Resource Optimization Always question whether resources are used most effectively

4. MAJOR TRENDS IN IT MANAGEMENT • GLOBALIZATION OF BUSINESS -Specialized talent - Reduction in cost - Time to market – follow the sun development • VELOCITY OF CHANGE IN BUSINESS -Time from recognition of business need to system operation - Pace of technology changes • OUTSOURCING - Cost savings - Functionally discrete, non-core business - Political compromise - Lack of internal skills

5. According to the CIO desk reference–Meta Group, 2001, most IT organizations “have a cost center, ‘just-keep-the-lights-on’, service- utility mentality that maintains IT should be mostly transparent to the rest of the business. If things are going well, no one knows the IT organization is there. If things are going badly, it gets noticed.” Organizations in which IT is viewed as extremely critical to the business, are those in which the CIO has realized that marketing the IT organization furthers the awareness of the value that IT adds to the business and helps ensure the CIO is a business partner. The best way to achieve this partnership is by organizing IT to respond to the needs of individual business groups. This can only be done by: • establishing working relationships at individual and group levels with all business partners in which business teams, including IT as a “business,” can work together. • Enterprise infrastructure is the only IT project. • Whether responsible for 10 percent or 90 percent of the tasks, IT is a member of a business team led by a business project champion. • All projects require business unit champions and business project champions.

6. ORGANIZATIONAL STRUCTURE / GOVERNANCE • Functional • Centralized • Project/Process • Decentralized • Matrix

7. In the beginning, IT was managed by the Accounting Department IT

8. As IT applications expanded beyond Accounting, IT moved up in the organization

9. Centralized IT Structure President

10. Decentralized Structure President

11. Functional Alignment: organized around similar resources performing similar activities – • task centered • A categorization of business activities, such as: • - marketing • - sales • - production • - human resources • - finance • - materials management • - accounting • - information technology • Within the IT Department: Organizing IT personnel by functional knowledge and platforms:  organized around resources. • - What are some “IT Functions?” 

13. FUNCTIONAL RELATIONSHIPS EMPHASIZE FORMAILTY Communication Flow

14. Functional Alignment • • Advantages: • - reduced training costs (peers together to facilitate training) • - expertise fostered • - reduced task-switching time • - easier workforce scalability • • Disadvantages: • - internal, parochial focus • - limited connections between functions • - silo effect • - rigidity

15. • PROJECT / PROCESS ORIENTATION -- • - organized around outputs • A specific ordering of work activities across time and place with a beginning, an end, and clearly identified inputs and output." • - the focus is "HOW" to get to outputs • - organizational orientation:  horizontal workflow value chain • - people are geared to becoming flexible generalists

16. Project/Process Alignment: Organizing IT personnel by tasks and services

17. Project/Process Organization • • Advantages • Effective and efficient for large projects • Resources available as needed • Broad range of specialists • short lines of communication • easy to measure progress • • Drawbacks • Expensive for small projects • Specialists may have limited technological depth • May require high levels of duplication for certain specialties

18. PROCESS (PROJECT) RELATIONSHIPS EMPHASIZE LATERAL COORDINATION / COMMUNICATION 360 DEGREE VIEW

19. The Present and Future are shifting toward • project/processes . . .

20. Who is Henri Fayol? A French engineer who: Defined the functions of management: • Planning • Organizing • Leading • Controlling And identified 14 principles of management: • Specialization/division of labor • Authority with responsibility • Discipline • Unity of command • Unity of direction • Subordination of special interests • Remuneration • Centralization • Chain / Line of Authority • Order • Equity • Lifetime jobs (for good workers) • Equity • Esprit de corps