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					Corporate Information Systems
        Management


       BiMBA, Fall 1999
        Dr. Jason Chen
      Gonzaga University
      Spokane, WA 99223
                                                         The Basics

   • Professor
             Jason Chen
             Office
             Office hours                                   before and after class by appt.

   • Text
             Applegate, L. M., McFarlan, F.W., and
              McKenney, J. L., Corporate Information
              Systems Management: Text and Cases. 4th ed.
              Chicago: Irwin, 1996
Dr. Chen, The Challenge of the Information Systems Technology                                 TM -2
                             Conduct of the Course
   • Discussion of text material (instructor)
   • Presentation of cases (groups of students)
   • Technology briefings (groups of students)




Dr. Chen, The Challenge of the Information Systems Technology   TM -3
                                                        Evaluation

   • Participation in discussions and preparation
     (10%)
   • Case presentations (15%)
   • Technology briefing (10%)
   • Papers (20%)
   • Midterm exam (20%)
   • Final exam (25%)
Dr. Chen, The Challenge of the Information Systems Technology        TM -4
    Why the course? (Corporate
 Information Systems Management)
• … In the tumultuous last years of the 20th century,
  when change was the only certainty and, one after
  another, fierce new competitors rose up from every
  corner of the globe to vie for dominance of the
  world marketplace, enterprise organizations came to
  understand that their only hope for survival lay with
  Information Technology. And they called out to
  their IT managers to instruct them in the ways of IT
  and to fashion IT into a brave, finely-honed
  competitive advantage with which to vanquish their
  enemies ...
Dr. Chen, The Challenge of the Information Systems Technology   TM -5
                           Overview of the Course

   • “The broad objective of this book is to help
     individuals and their organizations to better
     adapt new technologies to their
     circumstances and thus to compete in their
     industry segments more effectively.”




Dr. Chen, The Challenge of the Information Systems Technology   TM -6
                                                                Topics

   • The Challenge of Information System
     Technology (Chapter 1)
   • The Changing Environment of Information
     Technology (Chapters 2–5)
             –    Trends
             –    Competitive Advantage
             –    Electronic Commerce
             –    Information, Organization, and Control
Dr. Chen, The Challenge of the Information Systems Technology            TM -7
   • Organization, Management, and Control of
     the Information Technology Function
     (Chapters 6–9)
             –    Architectural Alternatives
             –    Organizing and Leading the IT Function
             –    IT Operations
             –    IT Management Processes
   • Trends in IT Management (Chapters 10-13)
             –    Strategic Partnerships
             –    IT Development Portfolio
             –    Transnational IT Issues
             –    The IT business
Dr. Chen, The Challenge of the Information Systems Technology   TM -8
                      Chapter 1
             The Challenge of Information
                 Systems Technology
   • What specific
     components are
     included in the
     definition of
     “Information
     Systems”?

Dr. Chen, The Challenge of the Information Systems Technology   TM -9
                          INFORMATION SYSTEMS



                                ORGANIZATIONS                                 TECHNOLOGY



                                                                INFORMATION
                                                                 SYSTEMS




                                                                 MANAGEMENT




Dr. Chen, The Challenge of the Information Systems Technology                              TM -10
                       SYSTEM INTERDEPENDENCE

                       INTERDEPENDENCE
                                                                              HARDWARE



      BUSINESS                                              SOFTWARE           DATABASE
         Strategy
         Rules                                                                  TELE-
         Procedures                                                         COMMUNICATIONS


 ORGANIZATION                                                          INFORMATION SYSTEM


Dr. Chen, The Challenge of the Information Systems Technology                                TM -11
               Information Systems Resources
   •      Hardware
   •      Software
   •      Telecommunication
   •      Data
   •      Procedure
   •      People



Dr. Chen, The Challenge of the Information Systems Technology   TM -12
Dr. Chen, The Challenge of the Information Systems Technology   TM -13
                          Information Technology

   • What specific technologies are included in the
     definition of “Information Technology”?
             Computers
             Telecommunications
             Office automation
             Software tools



Dr. Chen, The Challenge of the Information Systems Technology   TM -14
                                             The IT Business
   • What are the aspects of “The IT Business” that
     must be understood and managed?
             Strategic relevance
             Corporate culture
             Contingency
             Technology transfer




Dr. Chen, The Challenge of the Information Systems Technology   TM -15
                SCOPE OF INFO SYSTEMS
• 1950s: TECHNICAL                                              Automation
  CHANGES
• 60s-70s:
  MANAGERIAL                                                    Information
  CONTROL
• 80s-90s:
                                                                Innovation
  INSTITUTIONAL
  CORE ACTIVITIES
• 90s and beyond:                                               Paradigm Shift
   GROWING
  IMPORTANCE
Dr. Chen, The Challenge of the Information Systems Technology                 TM -16
                    Challenges in IT Management
• What are the challenges in IT management?
        Young technology
        Technological growth
        IT end-user coordination
        Specialization
        Shift in focus




Dr. Chen, The Challenge of the Information Systems Technology   TM -17
                                                                Paradigm Shift




                    I. Computing Paradigm Shift

                        II. Business Paradigm Shift

Dr. Chen, The Challenge of the Information Systems Technology               TM -18
                                                I. Computing paradigm

                           Users                                 Users
                        Networks                                Computers
                   Computers                                    Networks




Dr. Chen, The Challenge of the Information Systems Technology               TM -19
                                                        II. Business Paradigm Shift
                                        New Enterprise, Expert Systems                              1990s
                                                                                                  and Beyond
                                        BPR, Paperless Office
                                                                          Client/Server,Multimedia
                                                                          Distributed Computing
                                  Open             Systems
                                                                          Object-Orientation

                                        Automated Enterprise,
                                                                                                      1980s
                                        Back Office Automation
                                        On-Line Transaction Processing

                     Proprietary                    Systems                 Mainframes


                                          Legacy Enterprise, Manual Back Office                       1970s

                                                                Manual Front Office                   1960s


Dr. Chen, The Challenge of the Information Systems Technology                                                 TM -20
          NEW OPTIONS FOR
       ORGANIZATIONAL DESIGN
   • FLATTENING ORGANIZATIONS
   • SEPARATING WORK FROM LOCATION
   • INCREASING FLEXIBILITY
   • REFINING ORGANIZATIONAL
     BOUNDARIES
   • REORGANIZING WORK FLOWS
                     *


Dr. Chen, The Challenge of the Information Systems Technology   TM -21
                    THE CHANGING
                 MANAGEMENT PROCESS

   • ENTERPRISE RESOURCE PLANNING
   • ELECTRONIC COMMERCE
   • ELECTRONIC BUSINESS
                   *




Dr. Chen, The Challenge of the Information Systems Technology   TM -22
                        ENTERPRISE RESOURCE
                             PLANNING
      SOFTWARE INTEGRATES ALL FACETS:
     • PLANNING, MANUFACTURING,
       INVENTORY, SALES, FINANCE,
       ACCOUNTING
     • TRANSACTIONS ALERT ALL
       INVOLVED FACTORS
     • UPDATES FILES, SPEEDS ACTION,
       CUTS COST
                       *
Dr. Chen, The Challenge of the Information Systems Technology   TM -23
                        ELECTRONIC COMMERCE

   • Electronic commerce (EC) is an emerging
     concept that describes the buying and
     selling of products, services and
     information via computer networks,
     including the Internet.



                                                                    &
Dr. Chen, The Challenge thethe Information Systems Technology
              Trends of of Information Systems Technology       TM -24
                        ELECTRONIC COMMERCE

   • INTERNET LINKS BUYERS, SELLERS
   • LOWERS TRANSACTION COSTS
   • GOODS & SERVICES ADVERTISED,
     BOUGHT, EXCHANGED WORLDWIDE
   • BUSINESS-TO-BUSINESS
     TRANSACTIONS INCREASING
                    *

Dr. Chen, The Challenge of the Information Systems Technology   TM -25
                                     ELECTRONIC BUSINESS

   • INTRANET: BUSINESS BUILDS
     PRIVATE, SECURE NETWORK
   • E-MAIL, WEB DOCUMENTS, GROUP
     SOFTWARE EXTENDS EFFECTIVE
     COMMUNICATION & CONTROL
   • VIRTUAL ORGANIZATION
                    *

Dr. Chen, The Challenge of the Information Systems Technology   TM -26
                     WHAT YOU CAN DO ON THE
                                   INTERNET

   •      COMMUNICATE & COLLABORATE
   •      ACCESS INFORMATION
   •      DISCUSSIONS
   •      OBTAIN INFORMATION
   •      ENTERTAINMENT
   •      BUSINESS TRANSACTIONS
                        *
Dr. Chen, The Challenge of the Information Systems Technology   TM -27
                                 VIRTUAL ORGANIZATION
          MANUFACTURING                                                     DESIGN
                   COMPANY                                                  COMPANY




SALES & MARKETING                                                 CORE       LOGISTICS
      COMPANY                                                        CO      COMPANY
                                                                 MPANY




                                                          FINANCE COMPANY

 Dr. Chen, The Challenge of the Information Systems Technology                           TM -28
Virtual Companies (Portable Computing)



          A Virtual Company is an Organization composed
               of several Business Partners that Uses
           Information Technology to Link/Share People,
                Assets, Ideas, Costs, and Resources
         for the purpose of producing a product or service.

        Virtual Companies are Adaptable and Opportunity-
         Exploiting Organizations Providing World-Class
              Excellence in Their Competencies and
                          Technologies.




 Dr. Chen, The Challenge of the Information Systems Technology   TM -29
   Characteristics of Virtual Companies

                                                                  Excellence

              Borderless                                                          Adaptability


                                                                     Six
                                                                Characteristics
                                                                  of Virtual
                                                                 Companies



           Opportunism                                                            Trust-Based

                                                                 Technology

                                                                                                  N
Dr. Chen, The Challenge of the Information Systems Technology                                    TM -30
           A Network Structure Facilitates the Creation of
                        Virtual Companies




Figure 04.10
                                                             TM - 31
                                          Five Challenges of
                                         Information Systems

   •      STRATEGIC: competitive and effective
   •      GLOBALIZATION: multinational IS
   •      INFO ARCHITECTURE: support goals
   •      INVESTMENT: value of IS
   •      RESPONSIBILITY & CONTROL: ethics and
          social responsibility
             – Government regulations
             – Government deregulation
             – Shrinking budgets and subsidies                  N

Dr. Chen, The Challenge of the Information Systems Technology   TM -32
                                                  Six Questions
                  often asked by senior management
             1.   Is the firm being affected competitively either by omissions
                  in IT work being done or by poor execution of this work?
             2.   Is the firm targeting its IT application development efforts
                  effectively?
             3.   Is the IT asset of the firm being managed efficiently?
             4.   Is the firm’s IT activity sufficiently insulated against the
                  risks of a major operational disaster?
             5.   Are IT and business leaders capable of dealing with IT-
                  related management challenges?
             6.   Are the IT resources appropriately placed in the firm?

Dr. Chen, The Challenge of the Information Systems Technology              TM -33
                             Systems As Planned
                            Organizational Change

   • When we design a new IS, we are
     redesigning the organization. New IS
     frequently mean new ways of doing
     business and working together:
             – the nature of tasks
             – the speed with which they must be completed
             – the nature of supervising (its frequency and
               intensity)
                                      *
Dr. Chen, The Challenge of the Information Systems Technology   TM -34
                             Systems As Planned
                            Organizational Change

             – who has what information about whom
               and when, where, and how will all be
               decided in the process of building an
               information system.




Dr. Chen, The Challenge of the Information Systems Technology   TM -35
                                Six Issues in
                          Information Technology

   The IT environment
             What are the eras of IT environment?
   IT Architecture and Organization
              Is the firm’s IT architecture and organization
              of IT resources evolving appropriately?
   Management Processes
              Are the firm’s IT planning and control
              processes appropriate?
                                     *
Dr. Chen, The Challenge of the Information Systems Technology   TM -36
                                Six Issues in
                          Information Technology

   Project Management
             Is the firm’s project management process appropriate?
   IT Strategy
             Is the firm competitive and effectively focused on the
              right questions?
   The IT Business
              Is the overall direction of the IT asset appropriately
              linked to general management and middle management
              needs and values?
Dr. Chen, The Challenge of the Information Systems Technology           TM -37
                                         The IT Environment

          Figure 1–1                   Administrative                      Primary           Justification/
                                        Framework                          Target              Purpose
1950S -
          Era I                             Regulated                   Organizational        Productivity/       DP
1970S                                                                                                             mger
                                            monopoly                                           Efficiency
1970S-
          Era II                                 Free                     Individual        Individual/Group     End
1980s
                                                market                                        effectiveness      users


1980S-
          Era III                          Regulated                  Business process/        Strategic/        Intra-
1990s
                                          free market                 Interorganizational     Competitive        Orga.

1990S -
          Era IV                         Collaborative                     Electronic       Organizational       Inter-
beyond
                                                                          integration       effectiveness        Orga.




      Dr. Chen, The Challenge of the Information Systems Technology                                            TM -38
    IT Architecture and Organization
   • Distribution of resources
   • Networking and international coordination
   • Outsourcing
             – cost effectiveness and reliability
             – outsourcing strategy
   • IT operations
             – cost efficiency and reliability


Dr. Chen, The Challenge of the Information Systems Technology   TM -39
                           Management Processes

   • Cost allocation
             – cost/profit
   • Budgeting
             – policy (fixed vs. transaction-driven)
   • Performance monitoring
             – types of reporting (batch vs. on-line)



Dr. Chen, The Challenge of the Information Systems Technology   TM -40
               TYPES OF INFORMATION SYSTEMS

     KIND OF SYSTEM                                                   GROUPS SERVED
     STRATEGIC LEVEL                                                                SENIOR
                                                                                  MANAGERS




     MANAGEMENT LEVEL                                                               MIDDLE
                                                                                  MANAGERS



 KNOWLEDGE LEVEL                                                                 KNOWLEDGE &
                                                                                 DATA WORKERS


OPERATIONAL                                                                         OPERATIONAL
LEVEL                                                                                 MANAGERS

                  SALES &                  MANUFACTURING FINANCE   ACCOUNTING HUMAN
                MARKETING                                                     RESOURCES
  Dr. Chen, The Challenge of the Information Systems Technology                              TM -41
Dr. Chen, The Challenge of the Information Systems Technology   TM -42
                                                                           Vision

                                                                     Mission,
                                                                     Principles,
                                                                     and Values

                                                                Goals / Objectives


                                                                   Strategies



                                                                   Plans



                                                                 Tactics




                                       Figure: Hierarchy of Leadership Tools
Dr. Chen, The Challenge of the Information Systems Technology                        TM -43
                                 Project Management

   • Implementation risk
             – project management processes and
               methodologies
             – advocates vs. opponents
   • Development methodology
             – SDLC, JAD, Rapid Prototyping
             – single vs. multiple


Dr. Chen, The Challenge of the Information Systems Technology   TM -44
                                                        IT Strategy
   • IT’s differing strategic roles in different
     companies
             – who should be involved, time and financial resources
   • Familiarity with nuances of technology
             – complete the project on time and within the budget
   • Congruence with corporate culture
             – nature of the corporate planning process,
             – e.g., formality vs. informality of organizational decision
               making

Dr. Chen, The Challenge of the Information Systems Technology               TM -45
                                                       IT Business

   Is the overall direction of the IT asset
     appropriately linked to general
     management and middle management needs
     and values?
   • The marketing of IT solutions
             – carefully blend the new product opportunities
               posed by new technologies with the changing
               needs of customers.

Dr. Chen, The Challenge of the Information Systems Technology        TM -46
                                               Five Questions
                            to be asked every six months
1. Do the perspective and skills of the IT team, IT users, and general
   management team fit the firm’s changing strategy and organization and the
   IT applications, operating environment, and management processes?
2. Is the firm organized to identify, evaluate, and assimilate new information
   technologies on a timely basis?
3. Are the three main management systems for integrating the IT
   environment to the firm as a whole in place and implemented?
   (strategic planning, management control, project management)
4. Are the security, priority-setting, and control systems for IT operations
   appropriate for the role it plays in the firm?
5. Are organization structures and coordinating mechanisms in place to
   ensure IT is appropriately aligned to the needs of the firm?


Dr. Chen, The Challenge of the Information Systems Technology                TM -47
                     Modern Manager’s Roles
         Today's managers are not only expected to
         use systems (Information Technology) but
         are also expected to:
   Know how to use information technology (IT) to design
     competitive and efficient organizations.
    Understand the business and system requirements of a
     global environment.
    Use information systems to ensure quality throughout the
     firm.
    Participate in the design of a firm's information
     architecture and systems.
                                  *
Dr. Chen, The Challenge of the Information Systems Technology   TM -48
                     Modern Manager’s Roles
    Manage the procurement of a variety of IT.
    Choose among alternative telecommunications options.
    Manage and control the influence of systems on
      employees and customers.
    Allocate resources to competing system alternatives.
    Suggest new uses for systems.
    Understand the ethical dilemmas and controversies that
      surround the use of advanced information systems.
   11. Understand a global perspective on business and support
      systems needed to conduct business on an international
      scale.


Dr. Chen, The Challenge of the Information Systems Technology    TM -49
                                                        Conclusion
                                                                • In essence, contemporary
                                                                  managers (like you) are
                                                                  expected to know enough
                                                                  about IT to use in the
                                                                  design and management of
                                                                  their organizations.
                                                                • These new management
                                                                  responsibilities require a
                                                                  deeper understanding of IT
                                                                  and systems than ever
                                                                  before.
Dr. Chen, The Challenge of the Information Systems Technology                                  TM -50
Dr. Chen, The Challenge of the Information Systems Technology   TM -51

				
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