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7/29/2019 Importance of Management Information systems
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1. The Importance ofInformation Systems
Management
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Overall Context
First by describing todaysorganizational and technicalenvironment of businesses
Second by describing a framework forviewing the work of the ISorganization; and
Third by describing an ISorganizations evolution from 1985 to
present
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Introduction
(Finally) Information Technology (IT) -
computers and telecommunications - ishaving the kind of revolutionary,restructuring impact that has been
expected and promised for years Rapid advances in speed and capacity +
pervasiveness of Internet, wireless,
portable devices etc. = making majorchanges in the way we live and work
Go Back 5, 10, 15 years
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Due to the growth and pervasiveness of
IT, organizations are operating in adifferent environment from just a fewyears ago
Themes of the present day emphasize:
1. Globalization The world seems to be getting
smaller
Backlash local needs Vs. standard Jobs to stay local IS executives need balancing act
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2. E-enablement of businesses
Internet has become a hub forconducting business
Full interconnectivity is the goal!
3. Knowledge Sharing and KnowledgeManagement
Between peopleOut of peoples heads and intolasting things e.g. systems, policies
and procedures etc.Shift from info access to contentmanagement (searching, filtering,synthesizing, assimilating knowledgeresources)
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Management of Information Systems
Process of managing IT
3 Major Trends that impact IT mngt1.Governance of IT a collaborative
effort from IS executives and all other
members of Senior Management2.Role of IS shifting from application
delivery to system integration and
infrastructure development3.Outsourcing total/selective
Developing and managing contracts
and relationships with ESPs
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Historically, managing IT has been the
job of technical managers NOW = increasingly becoming an
important part of the responsibilities of:
Senior executives
Line managers
Employees at all levels of anorganization
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The Key(Whats it all about?)
Technologyis configured intosystems that help manage
information to improveorganizational performance
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A Little History U.S. passed from the industrial era to the
information era as early as 1957
The number of U.S. employees whosejobs were primarily to handleinformation surpassed the number of
industrial workers In the late 50s / 60s IT to supportinformation work, largely non-existent(except telephone)
Information work mostly done ingeneral offices without much supportfrom technology
People factories?
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Percentage Aggregation of US Workforce
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70s = it all started with many of thefoundations of IT
costs starting to fall
Typewriters, fax, smaller computers
1980s = number of US informationworkers surpassed the number in all
other sectors, combined (>50%)
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Information Technology:1. Initially used to perform existing
information work more quickly and
efficiently
2. Then used to manage work better
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3. Now, well into the 3rd stage oftechnology assimilation
IT makes pervasive changes in thestructure and operation of:
Work
Business practices
Organizations
Industries
The Global Economy (enabler?)
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The Organizational Environment
The way IT is used depends on the
environment surrounding theorganization that uses it
Simultaneously, technological advances
affect the way IT is used
Tech drives change or merelysupports it ?
IT and its use, and management co-evolve influencing each other
Th E l O i i l E i
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The External Organizational Environment
Widely discussed in public and technicalpress
IT allows information to move faster,thus increasing the speed at whichevents take place and the pace at
which individuals and organizationsrespond to events.
Turbulent business world shorterproduct cycles, mega-bankruptcies..
1. The Internet Economy
B2C, B2B etc.
IT is a major underpinning of the way
the old and new worlds interface
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2. Global Marketplace
The entire world has become themarketplace merger mania
The Internet allows companies to workglobally
3 main operating arenas Asia/Pacific,
Americas, and EuropeGlobalization is a two way street
Internet allows small firms to have a global
reachBusiness environment is now global, butlocal tastes still matter
3 B i E t
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3. Business EcosystemsWeb of relationships surrounding one or afew companies PC ecosystem (Wintel),
Internet, wireless communicationFollow biological rules more than industrialrules
4. DecapitalizationTangible items, such as capital, equipmentand buildings were the tenets of power inthe industrial age
Today = power of intangibles such asideas and knowledge
Managing talent = as important as e.g.managing finance
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5. Faster Business Cycles Rely on IT
Accelerate time to market, reduce cycle time
6. Accountability and Transparency Rise and fall of dot-coms probably should have
been expected
Many business plans could not make $$$
Debacle in Telco and business shenanigans haveshaken investor confidence
Call for greater transparency of corporateoperations and greater accountability of
corporate officersIT will play a significant role in implementingthe ensuing regulations and fosteringtransparency
l k f
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7. Rising Societal Risks of IT
IT has negatively affected millions ofpeople
Network shutdowns
Computer viruses
Identity theft
Email scams
Movement of white collar jobsoffshore
Led to increasing calls for Governmentregulation and for vendors andcorporations to take action
h l O l
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The Internal Organizational Environment
The work environment is also changing, andthe art of managing people is undergoing
significant shifts1. From Supply-Push to Demand-Pull
Old
Companies did their best to figure outwhat customers wanted
Organized to build a supply of productsor services and then push them out toend customers on stores shelves, incatalogs etc.
N (I )
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New (Internet)
Allows much closer and one-to-onecontact between customer and seller
Offer customers the components of aproduct/service then the customercreates their own version by pullingwhat they want
Mass customization reversebusiness processes to be customer-
facing
Collaboration and co-creation
2 S lf S i
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2. Self- Service
ATMs = early example
1990s saw an increase in systems that let
consumers access corporate computersystems to:
Learn about products
Purchase productsInquire about orders
Communicate and do business with the
firme.g. FedEx parcel tracking leverages theWeb
3 R l Ti W ki ( t i )
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3. Real-Time Working (enterprise)
Sales people have up-to-the-minuteinformation about customers
Knowing e.g. inventory and cash levels asthe are NOW not as they were a week ora month ago
Being able to reach someone when youneed them
Instant messaging?
4. Team-Based WorkingWorking together on one or more projects
Groupware
5 Anytime Anyplace Information Work
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5. Anytime, Anyplace Information WorkConvergence of wireless and computing techs
6. Outsourcing and Strategic Alliances
To become more competitive,organizations are examining types of workthat should be done internally or externallyby others
Ranges from a simple contract for servicesto a long-term strategic alliance
The thinking is: We should focus on whatwe do best and outsource the other
functions to people who specialize in themNote = not new (especially in non-IT)
Extended enterprise
Also = some backlash
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7. The Demise of HierarchyTraditional hierarchical structuregroups, several people performingthe same type of work, overseen by asupervisor
Division of labour, chain of commandand controlNo longer the most appropriate infactories or offices
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Hierarchical structures cannot copewith rapid change
Communications up and down thechain of command takes too muchtime for todays environment
IT enables team-based organizationalstructures by facilitating rapid andfar-flung communication
Still has its place in manyorganizations
Self-managed groups manage
themselves better
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Goals of the New Work Environment
To redefine the work environment
1. Leverage Knowledge Globally(McKinsey)
Tap tacit knowledge by fosteringsharing and supporting sharing through
technology
Note: driving force is culture!
Happens through organizational pull
(people needing help) rather thanorganizational push which overloads peoplewith information
Leveraging knowledge = raising aspirations
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3 Work Electronically
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3. Work ElectronicallyMarketplace moving to marketspace,
workplace is moving to workspace
Taking advantage of the Internet andnetworks in general = 3rd major goal ofenterprises today
Requires different organizing principles,
management tenets, compensationschemes, structure etc.
Changes how organizations interact withothers including customers
The microchip moved power withincompanies. Bandwidth moves power all theway to consumers
Will increase exponentially as bandwidth
capability increases and costs decrease
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4. Handle Continuous and DiscontinuousChange
Innovate continually2 forms of changes
Continuous espoused by TQM
techniquesDiscontinuous espoused by
reengineering, e.g., fits and starts
Handle both for the products andservices
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The Technology Environment
IT enables advances in organizational
performance.Hardware Trends
50s 60s + - Batch processing
predominant; on-line systems emergedlater
Mid 70s processing power began to
move out of the central site (at theinsistence of users!)
1980s: Advent of personal computers
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Client-Server computing: Client
machine user interfaces with Serveron the network holding the data andapplications
Major current development = hand-held devices, wireless etc.
Further distribution beyond
organizational boundaries to suppliers,customers etc.
Software Trends
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Software Trends1. In 1960s = Improve the productivity of in-house
programmers who created transaction processing
systems
Problem = memory $
2. Later, programming issues:
First = Modular and structured programmingtechniques
Then = Life cycle development methodologies and
software engineering Goal = Introduction of rigorous project
management techniques
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3. Prototyping: quick development of a mock-up
4. Purchasing software became viable alternativeto in-house development
5. Paying attention to applications other than
transaction processing
Decision support systems (DSS), reportgeneration, database inquiry
6. End users develop their own systems
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7. Push for open systems
Purchasers were tired of being locked in toproprietary software (or hardware)
8. 1990s trend towards Enterprise Resource Planning
(ERP) e.g. SAP, PeopleSoft DANGER : BEWARE
Expensive and troublesome, especially for
companies wanting to modify the ERP software tofit their unique processes
A fundamental organizational change!
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9. Like hardware, software is migrating to be networkcentric.
Web front ends to empower employees rather thanreplacing legacy systems
Looming change = move to Web Servicespackages of code that each perform a specific
function and have a URL
- e.g FedEx parcel tracking, MacAfee's virusupdates
The significance of Web Services is that it movessoftware and programming to being truly networkcentric the network becomes the heart of thesystem, linking all Web Services
Th T h l E i t
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The Technology Environmentcontd.
Data Trends
At first = File management
Organizational techniques for files thatserved individual applications
Then = Corporate databases
Serving several applications
Led to concept of establishing a dataadministration function
Data Trends contd
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Data Trendscontd.
70s = focus on Technical solutions
Database management systems Dictionary/directory
Specification and format
Now = Data definitions: information aboutrelationships among systems, sources anduses of data, and time cycle requirements
First 20 years: techniques to manage data in
a centralized environment
Data Trends contd
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Data Trends contd.
Late 70s / early 80s = 4th generation languages andPCs:
Employees directly access corporate data
Users demanded it!
Also = Distributing data from data resources to
information resourcesData management organizes internal facts into data
record format
Information management focuses on concepts
Contains a much richer universe of digitizedmedia including voice, graphics, animation andphotographs (digitized media)
Data Trends contd
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Data Trends contd.
Managing this expanded array of informationresources requires new technologies
Data warehousing
Stores huge amounts of historical (notlive) data from systems such as retailers
Point-Of-Sale systemsData mining
Uses advanced statistical techniques to
explore data warehouses looking forpreviously unknown relationships in datae.g which customers are the mostprofitable
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Knowledge management (intellectualcapital)
New The Holy Grail?
Web has broadened data to meancontent
Text, graphics, animation, maps,photos, video etc.
Now tightly controlled Vs. early
proliferation
Data Trends contd
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Data Trends contd.
Two major data issues are now facing CIOs:
1. Security protecting data from those whoshould not see it
2. Privacy safeguarding the personal data ofemployees, customers etc.
Regulations such as Sarbanes-Oxley in theU.S. now require company officers to verifytheir financial data
- The processes that handle financial data areautomated = need to document and ensurethe accuracy of these processes
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The Technology Environmentcontd. Communications Trends
Final core technology = Telecommunications. This area has (is?) experienced enormous change
and is now taking centre stage
Early use = online and time-sharing systems
Then = interest in both public and private (intra-company) data networks blossomed
Internet = changed everything!
Today the Internets protocol has become theworldwide standard for LANs and WANs
- Will also soon be the standard for voice
Communications Trends contd
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Communications Trendscontd.
Telecom opened up new uses of IS so itbecame an integral component of IS
managementCommunications-based information
systems link organizations to their
suppliers and customersExplosion of wireless
2nd generation, instant messaging, Wi-Fi,3rd generation (3G)
Doesnt just enable mobility = changes howpeople communicate, how they live andhow they work
EXCITING TIMES!!!
The Mission of Information Systems
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The Mission of Information Systems
Early days: paperwork factories to payemployees, bill customers, ship products etc.Objectives of information systems defined by
productivity measures Later = MIS era: produced reports formanagement by exception for all levels ofmanagement
Today = Improve the performance of people inorganizations through the use of informationtechnology
Improving organizational performance isaccomplished by the people and groups thatcomprise the organizationOne resource for this improvement is IT
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A Simple Model
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A Simple Model
In the early days of InformationSystems, the translationbetween IT and users was
performed almost entirely bysystems analysts
A Simple Model of
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A Simple Model ofTechnology Use (v1)
Systems Professionals Bridging the
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Systems Professionals Bridging theTechnology Gap
Over the last 50 years technology has becomeincreasingly complex and powerful
Users have become increasingly sophisticated
Information systems are now viewed asproducts and users have become customers
More specialization is required of systemsprofessionals to bridge this wider gap
System & Domain Specialists
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System & Domain SpecialistsBridging The Technology Gap (v2)
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U B id i Th G ( 3)
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Users Bridging The Gap (v3)
h lk b h h l G ?
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Why talk about the Technology Gap?
The main point of this discussion is that
technology is getting more complex,applications are becoming moresophisticated, and users are participating
more heavily in the development ofapplications
The net result is that management of the
process is becoming more complex anddifficult as its importance increases
A Better Model
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A Better Model
Expanding the simple model gives us moreguidance into managerial principles and tasks
1. A set of technologies that represent the ITinfrastructure installed and managed by theIS department
2. A set of users who need to use IT toimprove their job performance
3. A delivery mechanism for developing ,delivering and installing applications
4. Executive leadership to manage the entireprocess of applying the technology toachieve organizational objectives and goals
A Framework for IS Management
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A Framework for IS Management
1. The Technologies
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1. The Technologies
Several forces contribute to the increasedimportance and complexity of IT:
1. Growth in capacity + reduction in cost & size
2. Merging of previously separate technologiesof computers, telephones/telecom/cable TV,
office equipment and consumer electronics3. Ability to store and handle multiple forms of
data
Information systems now fill major roles in
management reporting, problem solving andanalysis, office support, customer service andcommunications
2. The Users
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2. The UsersDichotomy of Info Work
Dichotomy of Info Work
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Dichotomy of Info Work
Procedure-based vs Knowledge- orgoal-based
Clerical vs Managerial work
The distinction is blurring !!
3. System Development and Delivery
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3 y op a d y Systems development and delivery bridge the
gap between technology and users
Systems for procedure-based (clerical)activities differ from systems for knowledgebased information work (managerial)
Systems are built based on technologyresources. Three main categories (essentialtechnologies):1. Hardware and software2. Telecommunications3. Information resources
Management of these is called infrastructuremanagement
4 IS Management
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4. IS Management
Chief Information Officer (CIO)
Must be high enough in the enterprise toinfluence organizational goals
Must have enough credibility to lead theharnessing of technology to pursue those
goals Must work with all the other CXOs
IT has become too important to be left toone individual
Executive team must work together togovern it and leverage it well
A Better Model - Summary
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A Better Model Summary
This model has four major components:
1. The technology which provides theelectronic and information infrastructure
2. Information workers who use IT toaccomplish their work goals
3. System development and delivery whichbrings the technology and users together
4. The management of the IS function
Overall responsibility = to harness IT toimprove the performance of the peopleand the organization
A Final Thought
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A Final Thought
It is not the strongest speciesthat survive,
nor the most intelligent,
but the ones responsive tochange
- Charles Darwin