Using MIS 2e Chapter 11: Information Systems Management David Kroenke

1. Using MIS 2e Chapter 11: Information Systems Management David Kroenke

2. Study Questions Q1 � What are the functions of the IS department? Q1a � How do I select the best technology? Q2 � How do organizations plan the use of IS? Q3 � What tasks are necessary for managing computing infrastructure? Q4 � What tasks are necessary for managing enterprise applications? Q5 � What are the advantages and disadvantages of outsourcing? Q6 � What are your user rights and responsibilities? Chapter 11: Information Systems Management 11-2

3. Q1 � What are the functions of the IS department? The major functions of a typical IS department include: Planning the use of information technology to accomplish the organization�s goals and strategy. Developing, operating, and maintaining the organization�s computing infrastructure. Developing, operating, and maintaining enterprise applications. Protecting information assets. Managing outsourcing relationships. Each organization�s IS structure varies according to its size, culture, competitive environment, industry, and other factors The title of the principal manager of the IS department varies from organization to organization. A common title is Chief Information Officer, or CIO Other common titles are vice president or Director of Information services. Chapter 11: Information Systems Management 11-3

4. Q1 � What are the functions of the IS department (reporting relationships)? Fig 11-1 Typical Senior-level Reporting Relationships Chapter 11: Information Systems Management 11-4

5. Q1 � What are the functions of the IS department? The Technology office, headed by the Chief Technology Officer (CTO) investigates new information systems technologies and determines how the organization might benefit from them. Gartner Research (www.gartner.com) is the world�s leading information technology research and advisory company providing technology-related insight necessary for clients to make the right decisions, every day. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 4,000 associates, including 1,200 research analysts and consultants in 80 countries. Gartner is free to UM students and alumni Forrester Research, Inc. (www.forrester.com) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 19 key roles at major companies providing proprietary research, consumer insight, consulting, events, and peer-to-peer executive programs. For more than 25 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. Chapter 11: Information Systems Management 11-5

6. Q1a � How do I Select the Best Technology (Gartner�s Magic Quadrant) Chapter 11: Information Systems Management 11-6

7. Q1a � How do I Select the Best Technology (Gartner Hype Cycle) Chapter 11: Information Systems Management 11-7

8. Q1 � What are the functions of the IS department (continued)? The Operations function manages the computing infrastructure, monitors system users, and responds to their problems. It includes system and network administrators. The Development department manages the process of creating new information systems while maintaining existing information systems. It includes analysts who work with users, operations, and vendors to acquire and install licensed software. It may include programmers, test engineers, and technical writers. If an organization uses outsourcing vendors, it may have a department devoted to managing its outsourcing relationships. It negotiates outsourcing agreements with other companies to provide equipment, applications, and other services. Some companies have a separate data administration function that is responsible for protecting data and information assets by establishing data standards and data management practices and policies. Chapter 11: Information Systems Management 11-8

9. Q2 � How do organizations plan the use of IS? An organization must take the following steps to plan how it will use IS and IT and to make sure both of them support the organization�s strategy. Align information systems with organizational strategy Communicate IS/IT issues to executive group Develop/enforce IS priorities within the IS department Sponsor steering committee The CIO is responsible for most of these items. It�s a never-ending process as organizations change, grow, or merge with other companies. The steering committee, a group of senior managers from major business functions, works with the CIO to set IS priorities, make decisions about major IS projects, and serve as a communication channel between users and the IS function. Chapter 11: Information Systems Management 11-9

10. Q3 � What tasks are necessary for managing computing infrastructure? Fig 11-3 Distributed Check-Printing Company Chapter 11: Information Systems Management 11-10

11. Q3 � What tasks are necessary for managing computing infrastructure? The IS department is responsible for creating, operating, and maintaining the organization�s computing infrastructure for end-users, networks, data centers, data warehouses, and data marts. The IS department must establish technology and product standards and ensure end-users do not deviate from them. On the other hand, IS configurations must support the type of work users do. The IS department must track user problems and monitor their resolution. They assign a tracking number to the problem, enter it into the queue according to its priority, and monitor the problem until it�s resolved. CIOs and managers should also monitor problem resolution. Chapter 11: Information Systems Management 11-11

12. Q3 � What tasks are necessary for managing computing infrastructure? The figure below shows a typical IS operations group. Note all of the people necessary to support an information system. Chapter 11: Information Systems Management 11-12

13. Q4 � What tasks are necessary for managing enterprise applications? If an organization uses enterprise applications, it may need support staff for managing them. Either the IS department manages everything, or individuals and workgroups manage their own applications. Enterprise applications include some functional applications and all cross-functional applications including CRM, ERP, EAI, and SCM. The following is a list of tasks involved in managing enterprise applications: Manage development of new applications Maintain legacy systems Adapt systems to changing requirements Track user problems and monitor fixes Integrate applications Manage development staff Chapter 11: Information Systems Management 11-13

14. Q4 � What tasks are necessary for managing enterprise applications? Fig 11-8 Organization of a Typical IS Development Group Chapter 11: Information Systems Management 11-14

15. Q4 � What tasks are necessary for managing enterprise applications? Chapter 11: Information Systems Management 11-15

16. Q5 � What are the advantages and disadvantages of outsourcing? Outsourcing is the process of hiring another organization to perform a service. It�s rise is due to several factors: Massive capital was raised during the �Internet Bubble� era Capital was used to create infrastructure as the cost of communication plunged Computers became even cheaper and software continued to evolve The result is that intellectual work can be delivered from anywhere at any time India is the most popular foreign outsourcer because of its large, well-educated, English-speaking population who earn 20 to 30 percent less in labor costs than their U.S. counterparts. Outsourcing also occurs within the US; e.g., Jet Blue The global playing field has been leveled; the world is flat! Chapter 11: Information Systems Management 11-16

17. Chapter 11: Information Systems Management Q5 � What are the advantages and disadvantages of outsourcing? 11-17

18. Q5 � What are the advantages and disadvantages of outsourcing? Chapter 11: Information Systems Management 11-18

19. Q6 � What are your user rights and responsibilities? Chapter 11: Information Systems Management 11-19

20. Summary The major functions of the IS department are to Plan the use of IT so as to accomplish the organization�s goals Manage the organization�s computing infrastructure. Develop, operate, and maintain enterprise applications. Protect the organization�s information assets. Manage outsourcing relationships. The principal manager of the IS department is the Chief Information Officer (CIO) who typically reports to the CEO. The Chief Technology Officer (CTO) identifies new IT products that will be relevant to the organization. The IS department manages the computing infrastructure by aligning it with organization�s structure and dynamics. Chapter 11: Information Systems Management 11-20

21. Summary (Continued) Data administration and database administration are functions in the IS department that protect the organization�s information assets. Outsourcing is the process of hiring another organization to perform a function or service. Companies outsource hardware, programs, applications, and even entire business functions. As a future user of information systems, facilities, and services, you have rights and responsibilities. Chapter 11: Information Systems Management 11-21

22. Review: Select the appropriate term for each item It is comprised of hardware, software, data, people, and procedures Information System This position typically reports to the CEO CIO This individual is responsible for determining which new technologies are relevant to the organization CTO Hiring another organization to perform a service Outsourcing Outdated system still in use Legacy system Manages the computing infrastructure, data centers, and data warehouses Operations Group Staffed by systems analysts, programmers, test engineers, and technical writers Development Group Products, methods, inventions, and standards used for the purpose of producing information Information Technology Chapter 11: Information Systems Management 11-22