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Managing Information Technology Resources: Centralized vs. Decentralized Approach

Learn about organizing Information Technology resources, advantages of Centralized and Decentralized Management, organizing IS staff, business managers' expectations, chargeback methods, and careers in Information Systems.

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Managing Information Technology Resources: Centralized vs. Decentralized Approach

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  1. Week 11Organizing Information Technology Resources

  2. Management of Information Technology Resources • Centralized Management • Staff positions and departments in strict vertical hierarchy • Control of organization in few hands • Decentralized Management • Delegates authority to lower-level managers • IS often follows management pattern

  3. Centralized vs. Decentralized Management • Advantagesof Centralized IS Management • Standardized hardware and software • Efficient administration of resources • Effective staffing • Easier training • Common reporting systems • Effective planning of shared systems • Easier strategic planning • Efficient use of IS personnel • Tighter control by top management

  4. Centralized vs. Decentralized Management (Cont.)

  5. Centralized vs. Decentralized Management (Cont.) • Advantages of Decentralized IS Management • Better fit of ISs to business needs • Timely response of IS units to business demands • Encouragement of end-user development of applications • Innovative use of ISs • Support for delegation of authority • Less competition for resources

  6. Centralized vs. Decentralized Management (Cont.)

  7. Centralized vs. Decentralized Management (Cont.)

  8. Organizing the IS Staff • Central IS Organization: A corporate IS team over all units • IS Director oversees several departments • Usually involved in every aspect of IT • Often includes a steering committee • Often easier to integrate an IS plan in a centralized IS organization

  9. Organizing the IS Staff (Cont.)

  10. Organizing the IS Staff (Cont.) • Dispersed IS Organization • Each unit fulfills its IS needs individually • Each business unit has one or several IS professionals • Funds for development and maintenance of unit’s IS own budget • Decisions made independently

  11. Organizing the IS Staff (Cont.)

  12. Organizing the IS Staff (Cont.) • A Hybrid Approach • Small companies use the central approach • Midsize and large use elements of central and decentralized approaches • Handled according to the position of the highest IS officer in the organizational structure

  13. Business Managers’ Expectations of an IS Unit • Broad understanding of business activities • Flexibility and adaptability • Prompt response to the information needs of the business unit • Clear, jargon-free explanation of what technology can and cannot do for the unit

  14. Business Managers’ Expectations of an IS Unit (Cont.) • Candid explanations of what information systems can and cannot do • Honest budgeting • Single point of contact

  15. IS Manager Expectations of Business Managers • Business planning • Systems planning • Systems selection or development • Participation and partnership

  16. Chargeback Methods • Two ways to treat cost of IS function • Part of overhead cost: General shared expense • Chargeback system: Units charged for services • Service Charges • Staff hours • Computer hardware • Computer time

  17. Chargeback Methods (Cont.) • Service Charges (cont.) • External storage space • Departmental Web site space • Desirable Chargeback Features • Accountability • Controllability • Timeliness • Congruence with organizational goals

  18. Chargeback Methods (Cont.) • Service Charges (cont.) • Chargeback Criticism • Expense may discourage IT initiatives • High rates can be frustrating • Overhead Expenditures • Research and development • Corporation-wide data communications

  19. Careers in Information Systems • The Systems Analyst • Analysis of business needs and ISs • Setting up of business applications • Designing new ISs and maintaining existing ISs • Analyze system requirements from user input • Documenting efforts and system features • Providing specifications for programmers • Agents of change • Good persuasion and presentation skills

  20. Careers in Information Systems (Cont.)

  21. Careers in Information Systems (Cont.) • Database Administrator (DBA) • Responsible for data architecture of an organization • Planning and design • Physical organization and storage • Logical organization & Schema development • Data dictionary development and maintenance • Security measures for access and proper use • Failure recovery and back-up measures • Updates and data integrity • Interfaces of internal databases with other ISs • Database personnel management

  22. Careers in Information Systems (Cont.) • The Network Administrator • Responsible for computer networks • Acquisition • Implementation • Management • Maintenance • Troubleshooting • Assesses future needs of the business

  23. Careers in Information Systems (Cont.) • Webmaster • Creates and maintains Web site and intranet pages • Must know Web technology, business strategy, security • Chief Information Officer (CIO) and Chief Technology Officer (CTO) • Oversees IS research and development • Oversees IS infrastructure development • Serves as chief technologist • Serves as chief agent of change

  24. Careers in Information Systems (Cont.)

  25. Careers in Information Systems (Cont.)

  26. Careers in Information Systems (Cont.) • The Chief Security Officer • Reports to the CIO or the CEO • Security is sometimes classified as a business issue, not an IT issue • Major challenge is misperception that security is an inhibitor rather than an enabler to operations

  27. Careers in Information Systems (Cont.) • Chief Knowledge Officer (CKO) • Responsible for finding strategically important knowledge resources • Accumulates, organizes, and retrieves information • Chief Learning Officer (CLO) • Independent Consultant • Offers services to companies that lack qualified personnel for specific tasks

  28. Ethical and Societal IssuesGasping for IT Skills • Demand Keeps Growing • Projected 2 million additional designers, programmers, and maintenance and repair workers needed over the next seven years • 1.8 million computer engineers, computer scientists, and systems analysts needed by 2006 • Ironically, high demand and benefits not attracting students to IT programs

  29. Ethical and Societal IssuesGasping for IT Skills • One Strategy That Worked • Irish government subsidized tuition for students in technological programs • Second largest exporter of software • 60 percent of incoming university students enroll in technological programs per year

  30. Ethical and Societal IssuesGasping for IT Skills (Cont.) • Promoting National IT • Should government subsidize technological education? • Proponents: Benefits all society • Detractors: Objectionable intrusion on personal pursuits and allocation of tax money

  31. Question • Desribe Collaboration between IS managers and business managers. And explain your thingking about the collaboration, how important the collaboration is? • Explain about advantages and disadvantages of Charge back methods • Write responsibilities of each IT person in organizations and which position interest you?

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