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Information Systems in the Organization

Information Systems in the Organization. Basic IT Organizational Structure. Traditional IT Centralized control Resource restrictions Formal methodologies and discipline Careful planning Administrative support. New IT Distributed control Resource expansion

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Information Systems in the Organization

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  1. Information Systems in the Organization Basic IT Organizational Structure

  2. 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

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

  4. Centralized Consolidation of functions Career paths for IS professionals Information control Economies of scale Decentralized Closeness to local problems Responsiveness to operational requirements User ownership of costs and problems Organization Distributed Separation of IS and user functions Identification of corporate data and functions User ownership of user applications

  5. People

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

  7. Centralization, Decentralization or Distribution • Centralization • Consolidation of functions • Career paths for IS professionals • Information control • Economies of scale

  8. Centralization, Decentralization or Distribution • Decentralization • Closeness to local problems • Responsiveness to operational requirements • User ownership of costs and problems

  9. Centralization, Decentralization or Distribution • Distribution • Separation of IS and user functions • Identification of corporate data and functions • User ownership of user applications

  10. IS Organization CIO Development Operations Network Architecture Data Administration

  11. IS Relationship with Users • Laissez Faire - no IS involvement • 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. Rational Management Strategies • Train & Retain • Train & Replace • Layered Skills • Restrict & Limit • Outsource • Entrepreneur

  13. Consultants • Access to new ideas and standards • Access to additional resources • Change agent who can own responsibility

  14. Global Business Drivers • Joint resources • Flexible operations • Risk reduction • Global products • Quality • Suppliers • Corporate customers

  15. 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

  16. 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.

  17. 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

  18. 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

  19. 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.

  20. 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

  21. Increment vs Radical

  22. 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

  23. Organization

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