Information Systems in the Organization

1. Information Systems in the Organization Basic IT Organizational Structure

2. People Organization Motivation Technology Hardware Software System Administration Acquiring Resources Maintaining Existing Resources IT Security Infrastructure Management

3. Emerging IssuesSteve Andriole, If I Only Knew 7 Things, Datamation, July 8,2004 • Regulatory Trends: Internet taxation, privacy, intellectual property. • Interoperability: Web services, interoperability. • Supply Chain: Wal-mart end to end, Dell no inventory, dynamic pricing, RFID • Architecture: Thin client/fat client, super servers, distributed processing, standards

4. Emerging Issues (cont.)Steve Andriole, If I Only Knew 7 Things, Datamation, July 8,2004 • Sourcing: Outsourcing, IT “utilities”, partnering • Infrastructure: Will the Internet survive, security, viruses, spam, etc. • Emerging Technologies: Wireless, AI, RFID, etc.

5. People

6. Traditional IT Centralized control Resource restrictions Formal methodologies and discipline Careful planning Administrative support New IT Distributed control Resource expansion Few methodologies and unrestricted access Rapid development Strategic impact It is Not All About Technology

7. Requirements for Successful IT • Well understood vision • Single team approach • Business financial justifications • Internal marketing • Reengineering skills • Political awareness and support

8. Roles • Steering Committee • CIO • Manager • Project Manager • Analyst • Programmer • Systems Programmer • User

9. Centralized: Single IT structure Consolidation of functions Career paths for IS professionals Information control Economies of scale Decentralized IT organizations in divisions Closeness to local problems Responsiveness to operational requirements User ownership of costs and problems Organization Distributed IT units with joint reporting Separation of IS and user functions Identification of corporate data and functions User ownership of user applications

10. Typical IS Organization Steering Committee CIO Development Operations Network Architecture Data Administration

11. Relationship with Users • Formal - user agreements and contracts • Utility - IS supplies standard information resources • Vendor - IS promotes solutions in competition with outside competitors • Partner - IS and users share common goals and rewards

12. Consultants/Contractors • Access to new ideas and standards • Access to additional resources • Change agent who can own responsibility • Managing the relationship

13. Ongoing Operations Operations management • Job scheduling • Error management • Security management • Help desk Change Control • Planned • Emergency Access and permissions • Supported • Permitted • Prohibited

14. CIO, July 15, 1998

15. Critical Questions for IT How does IT influence the customer experience? Does IT enable or retard growth? Does IT favorably affect productivity? Does IT advance organizational innovation and learning? How well is IS run?

16. IT Goals • Early Cost Savings and Control • Mid Alignment with Organization Goals • Current Integration Into the Business

18. Three Rules to Remember • Don't commit to any technology until after it has crossed the chasm. • Use normal rules of engagement when dealing with enabling technology kings and princes and application companies of any size. • Wherever there is an enabling-technology gorilla, get on that bandwagon and no other.

19. Developing Architecture • Objectives: Define business functions • Business: Analyze service level expectations • IT: Determine requirements • Technology: Specifications and design • Detailed Requirements: Product selection • System: Install new system components

20. BusinessObjectives Increase Revenue Reduce Cost Identify those business functions that will use the infrastructure and how IT will promote their business objectives. In business terms. Technical excellence is not enough!

21. Business Expectations Suggested measures At the highest level, an IT organization should be tracking a number of key ratios and indicators. [These should be reported on in terms of current value, trends, and rate of change]

22. Service Level Objectives Typically service levels are negotiated with users or management and carefully tracked.

23. Total Cost of Ownership

24. TCO A standardized environment costs less to install and maintain than a heterogeneous one. Electronic software distribution ensures consistent software installation and eliminates the need to physically install software on each computer. Use remote systems management tools to move software and data to and from laptops,as well as to store backup images of users' hard disks. Use automated technical support tools to reduce support personnel staff.

25. TCO Consider replacing personal computers with "thin clients" such as network computers. Client/server technology offers another take on TCO, without the need to invest in network computers. Use automated network management and monitoring systems to reduce the infrastructure costs of WANs.

26. IT Requirements • Standards • Logical Topology Centralization, distribution, separation and duplication of the appropriate components • Management Strategy Primary and secondary control points, definition of responsibilities • Security Policies and Strategies

27. Network Architecture:Universal Goals • Interoperability: work with other users • Scalability: ability to expand • Flexibility: ability to add or move users • Security: keep outsiders out • Central Control: manage from one place

28. Detailed Requirements • LAN technologies and boundaries • Internetworking technologies • WAN access strategies • Server operating systems and middleware • Product restrictions and capabilities

29. System Acquisition and Installation • Acquisition Strategy Make or buy • Installation Direct, phased, pilot, parallel • Training and Evaluation Centralized or distributed Mandatory or voluntary

31. Incremental vs Radical Change: TQM vs Reengineering Incremental: Focus on processes to eliminate, rather than correct problems. Radical: Focus on inputs and outputs to completely revise the methods

32. TQM Total Quality Management • Goals • Measures • Root Causes Total quality management is a cultural change designed to take advantage of the desire of individual workers to do a better job.

33. TQMW. Edwards Deming & Joseph Juran A philosophy, not a business practice • Incremental Process Change • Control what you measure • Empower employees • Prevent rather than correct defects

34. Reengineering The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed. • Customers: knowledgable and demanding • Competition: continuously increasing • Change: constant

35. Reengineering • Redesign Find new ways to accomplish business goals • Retool Create the (IT) systems needed to support the new design • Reorchestrate Bring about the organizational changes needed to support the new system.

36. Principles of Business Process Reengineering • Combines jobs • Empowers employees • Natural and parallel pocess steps • Multiple versions of processes • Work done where most appropriate • Minimal controls, checks and non-value added work • Reduce extermal contacts and increase alliances • Single point of customer contact • Hybrid centralized/decentralized organization

37. Increment vs Radical

38. Issues • Nurturing creativity and employee participation • Planning strategic information systems • BPR is major surgery that fails up to 75-80% of the time • IT changes the ethical environment

39. Organization