1 Chapter 10 Organizing Information Technology Resources

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Chapter 10Organizing Information Technology Resources

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Learning Objectives

When you finish this chapter, you will be able to:

Describe the different ways in which ISs are deployed in organizations.

List and explain the advantages and disadvantages of each IS architecture.

Explain the importance of collaboration between IS managers and line managers, and understand the relationships between the two groups.

Contrast the advantages and disadvantages of charge-back methods for IS services.

Describe career paths and responsibilities in the IS field.

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Information Systems Architecture and Management

Managerial styles mostly fall somewhere between two extremes:

• Centralized• Decentralized

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Mainframes, by nature dictated IS architecture be centralized

• Great Advantage• High degree of control

• Easy to maintain hardware, software, procedure, and operation standards

• control access to information

• Main Disadvantage• Inflexible

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Figure 10.1 In centralized IS architecture, information resources are maintained on one or several large computers that are centrally controlled.

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Information Systems Architecture and Management Decentralized Information Systems

ArchitectureAllows departments and remote sites

large degree of independence in organizing and utilizing their IS

Disadvantages• Difficult to share applications and data• Expensive to establish maintenance and

service contracts with many vendors

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Figure 10.2 In decentralized IS architecture, workers at different sites and departments (A, B, C) use information resources that are dedicated to their site or department.

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Information Systems Architecture and Management Distributed Information Systems

Distributed architecture• Each unit selects and implements its own

system.• Remote units can share resources through

communication lines.• Many organizations changing to distributed

architecture.• Increased reliability and affordability of data

communication and PC technology have encouraged this.

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Figure 10.3 In distributed IS architecture, workers use the information resources of their own site or department, but can also use the resources of other sites or departments through communication lines

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Figure 10.4 Centralized vs. decentralized IS trade-offs

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Information Systems Architecture and Management Centralized vs. Decentralized ISs:

Advantages and Disadvantages Advantages of Centralized IS Management

• Standardized hardware and software• Easier training• Common reporting systems• Effective planning of shared systems• Easier strategic planning• Efficient use of IS personnel• Tighter control by top management

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Figure 10.5 Centralized management of ISs

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Advantages of Decentralized IS Management

• Better fit of ISs to business needs• Timely responsiveness of IS units to

business demands• Encouragement of end user application

development • Innovative use of ISs• Support for delegation of authority

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Figure 10.6 Decentralized management of ISs (in fully decentralized management, the central IS unit would not exist)

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Organizing the IS Staff

Central IS Organization IS Director oversees several departments

• Implement and maintain current systems• Information center• Communications department• Data administration department• Large organizations may have a research and

development department

Involved in virtually every aspect of IT Steering committee oversees IS services

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Figure 10.7 An example of an IS unit’s organization with centrally managed ISs

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Functional IS Organization Each unit fulfills IS needs independently. Each business unit has one or several IS

professionals who report to the unit manager.

Funds come from unit’s own budget. Small central unit can coordinate IS for

larger, more complex enterprise-wide IS projects.

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Figure 10.8 An example of IS personnel locations in an organization with functionally managed ISs

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The Best of Both Approaches Small companies typically use central

approach to IS personnel. Central or functional IS organization is rare

among midsize and large companies. Regardless of IS management,

implementation depends on position of highest IS officer.

• Reports to VP: IS provides technical solutions• Reports to CEO: IS more involved in strategic

planning• They search for opportunities rather than just

solving problems.

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Challenges for IS Managers and Line Managers Line Managers’ Expectations of an IS Unit

Broad understanding of business activities Prompt response to information needs Clear explanation of what technology can

and can’t do Candid explanations of what IS can and

can’t do Honest budgeting Single point of contact

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Challenges for IS Managers and Line Managers

IS Managers’ Expectations of Line ManagersBusiness PlanningSystems PlanningSystems Selection or Development

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The Information Center

Coordination and Control Hardware and software purchases

Application development

Development and use of databases by end users Especially challenging when organization is involved

in mergers and acquisitions. Support

Training and response to requests for help• Help desk: Troubleshoot on demand

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Chargeback Methods

Two ways to treat cost of IS functionPart of overhead cost: General shared

expense

Chargeback system: Units charged for services

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Chargeback Methods

Service ChargesWhat is chargeable?

• Personnel hours• Computer time• External storage space• Number of input and output operations• Paper output

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Chargeback Methods

Desirable Chargeback Features Accountability Controllability Timeliness Congruence with organizational goals

Chargeback Criticism Expense may discourage IT initiatives High rates can be frustrating

Overhead Expenditures Research and development Corporation-wide data communications

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Careers in Information Systems Systems analyst

Limited analysis of business needs and ISs Updates and maintains existing ISs Designs new ISs

• Analyzes system requirements from user input• Documents efforts and system features• Provides specifications for programmers

Agents of change• Good persuasion and presentation skills

• Workers tend to resist change

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Careers inInformation Systems

Figure 10.10 The multiple roles of a systems analyst.

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Careers in Information Systems 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• Procedures to ensure updates and data integrity• Plan and implement interfaces of internal

databases with other ISs• Database personnel management

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Careers in Information Systems Telecommunications Manager

Responsible for computer networks• Acquisition• Implementation• Management• Maintenance• Troubleshooting

Assesses future needs of the business Must be well versed in network protocols Often involved in selection and implementation of

network security measures• Firewalls• Access codes

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Careers in Information Systems Webmaster

Creates and maintains Web site and intranet and extranet’s pages

• Must know Web technology, business strategy, security

Chief Information Officer (CIO) and Chief Technology Officer (CTO) Responsible for all aspects of ISs

• Oversees IS research and development• Oversees IS infrastructure development• Serves as chief technologist• Serves as chief agent of change

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Careers in Information Systems Chief Knowledge Officer (CKO)

Responsible for finding strategically important knowledge resources

• Accumulates, organizes, and retrieves information• If responsible for learning, may be called Chief

Learning Officer (CLO)• Looks for ways to retain knowledge accumulated

over time• Ensure managers and other professionals have

access to resources Independent Consultant

Offers services to companies that lack qualified personnel for specific tasks

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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

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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

Promoting National IT• Should government subsidize technological

education?• Proponents: Benefits all society• Detractors: Objectionable intrusion on personal

pursuits and allocation of tax money