Chapter 2 - Organizing Information Technology Resources.doc

8/14/2019 Chapter 2 - Organizing Information Technology Resources.doc

1/10

AACS4794 MANAGEMENT INFORMATION SYSTEMS CHAPTER 2

Chapter 2 Organizing Information Technology Resources

Information technoo!" ha# a !reat im$act on a com$an"%# a&iit" to com$ete' Th(#)

IT e*ec(ti+e# m(#t or!ani,e re#o(rce# that -ei+er the !reate#t $o##i&e +a(e to the

or!ani,ation'

Mo#t of the or!ani,ation# ha+e their o.n -i#tinct mana!eria #t"e#) .hich inc(-ecentrai,e- mana!ement an- -ecentrai,e- mana!ement'

In man" or!ani,ation#) the i##(e of IS re#o(rce# mana!ement ha# &ecome more

com$icate- a# technoo!" a-+ance#) e#$ecia" tho#e in m(tinationa or!ani,ation#

.ith re!iona hea-/(arter# in -ifferent co(ntrie#

Some or!ani,ation# em$ha#i,e centra mana!ement of re#o(rce#) $artic(ar"

re#o(rce# of e*ten#i+e t"$e# of e/(i$ment or in+e#tment# in a##et# that ma" ha+e an

im$act on the entire or!ani,ation'

Other or!ani,ation# ea+e m(ch of the -eci#ion ma0in! a&o(t ac/(i#ition an- contro

of re#o(rce# to oca or!ani,ationa (nit#'

Hi#torica") mo#t or!ani,ation# ha+e mo+e- from a centrai,e- IS mana!ement to a

-ecentrai,e- mana!ement'

2.1 IS Architecture and Management

A. Centralized IS Architecture

Centralized management1 e#i!nate# #taff $o#ition# an- -e$artment# in a #trict

+ertica hierarch" an- $ace# contro of the or!ani,ation in a fe. .a"#'

A centrai,e- a$$roach often re#(t# in a reati+e" ar!e IT (nit that i# re#$on#i&e for

amo#t a IT reate- i##(e#'

Pa!e 3 of 3 oc$5mi#5657

8(#ine#

# nit

A

8(#ine#

# nitA

8(#ine#

# nit

8

8(#ine#

# nit8

8(#ine#

# nit

8(#ine#

# nit

8(#ine## nit

C

8(#ine## nit

C

IS

igure 2.1 Centrai,e- IS mana!ement


2/10


A-+anta!e#

Stan-ar-i,e- har-.are an- #oft.are

It can e#ta&i#h cor$orate #oft.are an- har-.are #tan-ar-#) .hich #a+e# timean- mone" in $(rcha#in! an- in#taation an- #im$ifie# inter-e$artmenta

#harin! of -ata a# .e a# Information'

Stan-ar-i,in! #oft.are .i enhance- the a&iit" of m(ti:#ite or!ani,ation# to#hare a$$ication# an- -ata for faciitatin! -ata e*chan!e an- a$$ication#

#harin!'

Efficient a-mini#tration of re#o(rce#

It #($$ort# centrai,e- a-mini#tration of contract#) icen#e# an- in+entorie# of

har-.are an- #oft.are a##et#'

Effecti+e #taffin!

Ena&e IT $rofe##iona# at a cor$orate centra IS (nit to -o a &etter ;o& in

i-entif"in! the mo#t com$etent in-i+i-(a# to fi IT $o#ition#'

E!' (rin! inter+ie. #e##ion) the #ame $rofe##iona an!(a!e an- to$ic &ein!

(#e-) th(# .i minimi,e the recr(itin! $roce##'

Ea#ier trainin!

Or!ani,ation (#e# #tan-ar-i,e- har-.are an- #oft.are for #taff trainin! in

or-er to -o a &etter ;o& an- #$eciai,e- in a $artic(ar #tan-ar-'

Common re$ortin! #"#tem#

theinformation the" recei+e from one (nit to a re$ort .ith a -ifferent format (#e-

&" another (nit' Ea#ier for re$ort# mer!in!

Sa+e time an- increa#e carit"

Ea#ier #trate!ic $annin!

Ea#ier to in0 an IS #trate!ic $an to an or!ani,ation%# o+era #trate!ic $an'

Ti!hter contro &" to$ mana!ement

It ao.# to$ mana!ement to maintain contro o+er the often h(!e re#o(rce#

#$ent on IS#'

i#a-+anta!e

na&e to $ro-(ce -ifferent $ro-(ct# an- #er+ice#

If or!ani,ation nee-# to $ro-(ce -ifferent $ro-(ct# an- #er+ice#) the" are(na&e to ha+e (nit%# information re/(irement# to &e more co#e" #er+e-

Pa!e 2 of 3 oc$5mi#5657


3/10


!. "ecentralized IS Architecture

Decentralized management1 ee!ate# a(thorit" to o.er:e+e mana!er#'

A -ecentrai,e- a$$roach re#(t# in a #maer cor$orate IT !ro($ an- IT $rofe##iona#

-e$o"e- at the &(#ine## (nit#) .ith #i!nificant a(thorit" to ma0e -eci#ion# on theoca (nit%# information re#o(rce#'

=#ocal> 1 .ithin a !eo!ra$hic term#) .hen the or!ani,ation# ha# m(ti$e ocation#'

A-+anta!e#

8etter fit of IS# to &(#ine## nee-#

The in-i+i-(a IS (nit# can (#e their famiiarit" .ith their -e$artment#%

information nee-# to -e+eo$ #"#tem# that fit tho#e nee-# more co#e"'

Time" re#$on#e of IS (nit# to &(#ine## -eman-# In-i+i-(a IS (nit# can arran!e IS -e+eo$ment an- maintenance to fit their

&(#ine## (nit#% $rioritie#'

Re#$on#i&iit" can &e more foc(#e-

Enco(ra!ement of en- (#er a$$ication# -e+eo$ment

En- (#er# are enco(ra!e- to -e+eo$ their o.n #ma a$$ication#) to increa#e

$ro-(cti+it" an- time #a+in!'

Pa!e ? of 3 oc$5mi#5657

8(#ine##

nit A

8(#ine##

nit A

igure 2.2 ecentrai,e- IS mana!ement

IS

8(#ine##

nit 8

8(#ine##

nit 8

IS

8(#ine##

nit C

8(#ine##

nit C

IS

8(#ine##

nit

8(#ine##

nit

IS

IS


4/10


ee!ation of a(thorit"

To$ mana!ement can -ee!ate more a(thorit" to o.er e+e mana!ement'

@e## com$etition for re#o(rce#

nit mana!er# -o not ha+e to com$ete for IT re#o(rce#'

Sa+e or!ani,ation effort# in #tr(!!e# amon! mana!er#

i#a-+anta!e#

IT mana!er# .ith .or#t mana!ement #0i

Not 0no.e-!ea&e eno(!h to ma0e -eci#ion

Time an- effort .a#te- .hie mana!er%# team .or0e- on (n-er#tan-in! $ro;ecti##(e#

Poor -eci#ion on im$ementation re#(te- in re:-oin! the $ro;ect

Pa!e 4 of 3 oc$5mi#5657


5/10


2.2 Organizing the IS Staff

There are centra IS or!ani,ation an- f(nctiona IS or!ani,ation'

The a$$roach #eecte- ha# a -irect effect on ho. IS $rofe##iona# are $o#itione- in

the or!ani,ationa #tr(ct(re'

Ho.e+er) re!ar-e## of the #tr(ct(re) the main $(r$o#e of an" IS or!ani,ation i# too$timi,e #er+ice# to fit an- f(fi the or!ani,ation%# !oa#) o&;ecti+e# an- c(t(re'

A. Central IS Organization

The hi!he#t ran0in! IS officer in an or!ani,ation i# .ith the tite of Chief Technoo!"

Officer CTOB) (#(a" that $er#on i# a#o a +ice $re#i-ent'

In #ome ar!e or!ani,ation) the" .i ha+e +ice $re#i-ent cae- Chief Information

Officer CIOB'

Ho.e+er) rare" -oe# an or!ani,ation ha+e &oth CIO an- CTO at the #ame

mana!eria e+e' If "e#) CTO (#(a" re$ort# to CIOB

Mo#t common centra IS (nit or!ani,ation ha# the IS -irector o+er#eein! #e+era

-e$artment#'

Centra IS (nit -etermine# .hich com$(ter# an- $eri$hera e/(i$ment are a$$ro+e-

for $(rcha#e'

It a$$ro+e# or re;ect# #oft.are $(rcha#e# an- in char!e of trainin! ne. (#er#'

Pa!e 6 of 3 oc$5mi#5657

Pre#i-ent

CEO

S"#temIm$ementation

Maintenance

DP CIO

InformationCenter Comm(nication

#

Re#earch e+eo$ment ataA-mini#tration

Other DP

Officer#

igure 2.$ An e*am$e of centra IS Or!ani,ation


6/10


A-+anta!e#

En#(re com$ati&iit" of har-.are an- #oft.are

Pro+i-e the interface &et.een -ifferent #"#tem# that m(#t .or0 to!ether #(ch a#$(rcha#in! an- co#t acco(ntin!) $a"ro) acco(nt# $a"a&e) etc'

He$ to$ mana!er# #hare an or!ani,ationa +i#ion

S($$ort $annin! of enter$ri#e a$$ication#

i#a-+anta!e#

Too -e$en- on IS or!ani,ation an- ca(#e ac0 of contro o+er the #er+ice#'

Com$(#or" to recei+e a$$ro+a on amo#t an" a$$ication

i#co(ra!e en- (#er a$$ication# -e+eo$ment

!. "ispersed IS Organization

I# the a$$roach .here&" #e$arate IS team .ithin each &(#ine## (nit to f(fi# the IS

nee-# in-e$en-ent"'

#(a") there i# #ti an IS (nit at cor$orate hea-/(arter#) &(t it i# reati+e" #ma an-

#er+e# to coor-inate IS re/(irement# for -e$artment# that cannot han-e their o.n

nee-#'

@ar!e an- com$e* #"#tem#) an- tho#e that affect #e+era -e$artment# or #ite# are

im$emente- (n-er the #($$ort of thi# (nit'

Each &(#ine## (nit ha# one or #e+era IS $rofe##iona# .ho re$ort to the (nit%#

mana!er' The#e .or0er# 0no. their non:IS coea!(e#% -ai" o$eration# .e an- (n-er#tan-

their information nee-# &etter than centra IS $er#onne -o'

e$artment an- maintenance f(n-# of the (nit#% IS# a.a"# come from the (nit%# o.n

&(-!et'

nit%# IS $rofe##iona# ma" #ee0 in$(t from their centra IS coea!(e# -eci#ion# are

ma-e &" the (nit# fair" in-e$en-ent"'

Th(#) IS $rofe##iona# are often in+o+e- in man" a#$ect# of o$eration# that -o not

nece##ari" in+o+e IT an- the" ma" &e $romote- from an IT $o#ition into another

t"$e of $o#ition .ithin the &(#ine##'

Thi# .i enhance# the chance# of a-+ancin! ($ the or!ani,ationa ea-er to !enera

mana!eria $o#ition#'

Pa!e of 3 oc$5mi#5657


7/10


2.$ The Information Center

A# #"#tem# &ecome more com$e*) en- (#er# nee- con#tant #($$ort an- !(i-ance'

Information Center a#o cae- Help DeskB) i# a #$ecia faciit" ho(#in! har-.are)

#oft.are an- technica #$eciai#t# to #($$" en- (#er# .ith too#) trainin! an- e*$ert

a-+ice #o that the" can create information #"#tem a$$ication# on their o.n or

increa#e $ro-(cti+it"'

To $ro+i-e a- hoc a-+ice a&o(t har-.are) #oft.are an- teecomm(nication# to

&(#ine## (nit#'

It# o&;ecti+e# encom$a## to #ho. $eo$e ho. to (#e #"#tem re#o(rce# more

effecti+e") to $ro+i-e an#.er# to technica or o$eration /(e#tion# an- to ma0e (#er#

more $ro-(cti+e &" teachin! them ho. to meet their o.n information nee-#'

Coor-ination an- Contro

It i# a centra contact $oint for a IT maintenance acti+itie#'

It i# center to coor-inate an- contro of (#er# re$ort #"#tem $ro&em#) a#0 for

maintenance or #(&mit ne. #"#tem# re/(e#t#'

Coor-inate a in/(irie# -oc(ment# an- #($$ort ta#0#'

Pa!e 7 of 3 oc$5mi#5657

Pre#i-ent

CEO

DPMar0etin!

DPFinance

DP H(manRe#o(rce#

DP InfoS"#

ir' of Re!ion

A

Other

F(nctionanit#

ir' of Re!ion

8

ir' of

A-+erti#in!

ir' of

Mar0etin!

Dir. of

Marketing ISs

Chief

Controer

Chief

Acco(ntant

Trea#(rer

Dir. ofFinance ISs

ir' of Recr(itin!

ir' of Interna

Seection

Trainin!

Coor-inator

Dir. of Human

Resources ISs

igure 2.% An e*am$e of -i#$er#e- IS Or!ani,ation


8/10


S($$ort an- Ser+ice#

Sho. a (#er ho. to create a -ata /(er" or re$ort that -i#$a"# #$ecific &(#ine##

information'

Pro+i-e information a&o(t #"#tem #$ecification# an- the co#t of the ne. har-.are an-

#oft.are'

Recommen- a #"#tem #o(tion that inte!rate# -ata from -ifferent ocation# to #o+e a&(#ine## $ro&em'

2.% Charge&'ac( Methods

Some com$anie# treat the co#t of the IS f(nction #(ch a# i!ht# an- $hone #er+ice#B

a# a $art of o+erhea- co#t) a !enera e*$en#e carrie- in-irect" &" a -e$artment#'

Th(#) &(#ine## (nit# -on%t $(rcha#e #er+ice# from the IS -e$artment#) the" #im$"

ca on IS #er+ice# at .i an- recei+e them #eemin!" =Free:Of:Char!e FOCB>)

.itho(t -irect" -irect im$act on &(-!et'

In or-er to #o+e the $ro&em) man" or!ani,ation# e#ta&i#he- char!e:&ac0 #"#tem'

A char!e:&ac0 #"#tem i# a metho- &" .hich or!ani,ationa (nit# $a" for the #er+ice#

the" recei+e) cae- =#er+ice char!e#>'

It ma" re-(ce ten#ion &et.een $ro+i-er# an- recei+er# of IS #er+ice#) &eca(#e the

recei+er# 0no. e*act" .hat the" are &ein! char!e-'

It a#o ma0e the aocation of the #er+ice# more efficient on enco(ra!in! in-i+i-(a

-e$artment# to (#e on" tho#e #er+ice# that are rea" nee- for their o$eration#'

)hat is chargea'le*

Co#t# that cannot &e -efinite" attri&(te- to #$ecific &(#ine## (nit# are !enera" not

char!e- &ac0'

E!' The $(rcha#e $rice of an" har-.are or #oft.are that i# to &e #hare- &" man"

-e$artment# cannot &e char!e- -irect" to an" one -e$artment'

8(#ine## (nit ma" &e char!e into foo.in! cate!orie#

Staff ho(r#

Staff time i# the ar!e#t char!e for the #"#tem# -e+eo$ment or #"#tem

maintenance' The IS (nit char!e# i# either a fi*e- ho(r" rate or ho(r" rate# that -iffer

accor-in! to the e+e of e*$erti#e &ein! $ro+i-e-'

Com$(ter har-.are

Inc(-e char!e# of PC#) $rinter#) net.or0 e/(i$ment#) #er+er#) etc'

Pa!e of 3 oc$5mi#5657


9/10


Com$(ter time

The char!e for the (#e of mainframe com$(ter# or com$(ter# on oan'

E*terna #tora!e #$ace

The char!e for #torin! -ata accor-in! to the amo(nt #tore-' Gi!a&"te $er monthB'

e$artmenta


10/10


"ifferent charge&'ac( methods

O+erhea- E*$en-it(re#

8a#ica") an" re#o(rce# that cor$orate mana!ement -etermine# #ho(- &e (#e- are

not char!e- &ac0 to in-i+i-(a &(#ine## (nit#'

Some IS -e$artment e*$en#e# #(ch a# re#earch an- -e+eo$ment) cor$orate .i-e -atacomm(nication# in#taation an- maintenance cannot &e -irect" attri&(te- to the&(#ine## (nit #er+ice#'

The co#t# are often treate- a# o+erhea- e*$en#e# #hare- &" the entire or!ani,ation'

E!' The co#t of im$ementin!Enterprise Resource Planning (ERP) #"#tem#) .hich

are (#e- &" a ar!e n(m&er of or!ani,ationa (nit# i# $ractica" im$o##i&e to-etermine ho. m(ch each (nit .i (#e the ne. #"#tem an- ho. m(ch to char!e'

Ad+antages and disad+antages of each

A' Char!e:&ac0 metho-#

A-+anta!e#

Increase efficiency of services allocation 1 8eca(#e it enco(ra!e# in-i+i-(a

-e$artment# to (#e on" tho#e #er+ice# that the" rea" nee- for their o$eration'

Reduce tension beteen providers and receivers 1 Recei+er# 0no. e*act" .hat the"

are &ein! char!e-'i#a-+anta!e#

Discourage of e!ploring ne I": E*$en#e ma" -i#co(ra!e mana!er# from e*$orin!

ne. IT o$$ort(nitie# for &(#ine## acti+itie#' 8eca(#e IS technoo!" i# a-o$te- forc(rrent an- f(t(re nee-#) there i# an eement of on!:term in+e#tment'

Hig# c#arge rates1 mana!er# an- -e$artment# m(#t $a" for #im$e #er+ice#' C#arge rates disagreement : i#a!reement o+er ho. m(ch a ;o& #ho(- co#t ma"

create friction rather than coo$eration'

8' O+erhea- E*$en-it(re#

A-+anta!e#

$ver#ead e!penses s#ared1 Certain e*$en#e# are #hare- an- it ena&e# &(#ine## (nit#

to re-(ce (nnece##ar" co#t#' E!' ata .areho(#e# an- &(#ine## intei!ence

a$$ication# are #hare- &" #e+era &(#ine## (nit#'

%o direct impact on budgets1 8(#ine## (nit -o not ha+e to $(rcha#e #er+ice from IS-e$artment#) .here the" can ;(#t -irect" ca on IS #er+ice#'

i#a-+anta!e#

"edious c#arges on uncertain system usage 1 Sometime#) it i# im$o##i&e to

-etermine ho. m(ch to char!e the &(#ine## (nit) -(e to (ncertain ne. #"#tem (#a!e'

Calculation time needed&

Pa!e 3 of 3 oc$5mi#5657

Documents

Chapter 2 - Organizing Information Technology Resources.doc