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									                                      Chapter 11
                                  Information Systems
                                      Management
                                            Jason C. H. Chen, Ph.D.
                                                Professor of MIS
                                               School of Business
                                              Gonzaga University
                                            Spokane, WA 99258 USA
                                           chen@jepson.gonzaga.edu
Dr. Chen, Management Information Systems
                                           Study Questions
 • Q1 – What are the functions of the IS department?

 • Q2 – How do organizations plan the use of IS?

 • Q3 – What tasks are necessary for managing computing infrastructure?

 • Q4 – What tasks are necessary for managing enterprise applications?

 • Q5 – What are the advantages and disadvantages of outsourcing?

 • Q6 – What are your user rights and responsibilities?




Dr. Chen, Management Information Systems
                                                                          11-2
 • Q1 – What are the functions of the IS department?

 •     Q2 – How do organizations plan the use of IS?

 •     Q3 – What tasks are necessary for managing computing infrastructure?

 •     Q4 – What tasks are necessary for managing enterprise applications?

 •     Q5 – What are the advantages and disadvantages of outsourcing?

 •     Q6 – What are your user rights and responsibilities?




Dr. Chen, Management Information Systems
                                                                              11-3
    Q1 – What are the functions of the IS department?
 • The major functions of a typical IS department include:
         – Planning the use of information technology to accomplish the
           organization’s goals and strategy.
         – Developing, operating, and maintaining the organization’s computing
           infrastructure.
         – Developing, operating, and maintaining enterprise applications.
         – Protecting information assets.
         – Managing outsourcing relationships.
 • Each organization’s IS structure varies depending on these
   factors:
         –     Size
         –     Culture
         –     Competitive environment
         –     Industry
         –     Other factors
Dr. Chen, Management Information Systems
                                                                                 11-4
     Q1 – What are the functions of the IS department?
      This organizational structure chart shows the typical top-level reporting
       relationships. Depending on the organization, the Chief Information Officer
       (CIO) may report to the Chief Executive Officer (CEO), the Chief
       Operating Officer (COO), or the Chief Financial Officer (CFO).




                          Fig 11-1 Typical Senior-level Reporting Relationships
Dr. Chen, Management Information Systems
                                                                                  11-5
        Q1 – What are the functions of the IS department?
•      The Technology office, headed by the Chief Technology Officer (CTO)
       investigates new information systems technologies and determines how the
       organization might benefit from them.
•      The Operations function manages the computing infrastructure, monitors system
       users, and responds to their problems. It includes system and network
       administrators.
      The Development department
       manages the process of creating
       new information systems while
       maintaining existing information
       systems. It includes analysts who
       work with users, operations, and
       vendors to acquire and install
       licensed software. It may include
       programmers, test engineers, and
       technical writers.



    Dr. Chen, Management Information Systems
                                                                                       11-6
     Q1 – What are the functions of the IS department?
 • If an organization uses outsourcing vendors, it may have a department
   devoted to managing its outsourcing relationships. It negotiates outsourcing
   agreements with other companies to provide equipment, applications, and
   other services.
      Some companies have a separate
       data administration function that is
       responsible for protecting data and
       information assets by establishing
       data standards and data management
       practices and policies.
      Remember
            Information systems help a business
             achieve its goals and objectives and
             include five components—hardware,
             software, data, procedures, and
             people.
            Information technology focuses on
             products, techniques, procedures, and
             designs of technology.

Dr. Chen, Management Information Systems
                                                                              11-7
 •     Q1 – What are the functions of the IS department?


 • Q2 – How do organizations plan the use of IS?

 •     Q3 – What tasks are necessary for managing computing infrastructure?

 •     Q4 – What tasks are necessary for managing enterprise applications?

 •     Q5 – What are the advantages and disadvantages of outsourcing?

 •     Q6 – What are your user rights and responsibilities?




Dr. Chen, Management Information Systems
                                                                              11-8
          Q2 – How do organizations plan the use of IS?
 •     The figure below shows the necessary steps an organization must take to plan how
       it will use IS and IT and to make sure both of them support the organization’s
       strategy.
 •     The CIO is responsible for most of these items. It’s a never-ending process as
       organizations change, grow, or merge with other companies.
 •     The steering committee, a group of senior managers from major business functions,
       works with the CIO to set IS priorities, make decisions about major IS projects, and
       serve as a communication channel between users and the IS function.




                                           Fig 11-2 Planning the Use of IS/IT
Dr. Chen, Management Information Systems
                                                                                          11-9
 •     Q1 – What are the functions of the IS department?

 •     Q2 – How do organizations plan the use of IS?


 • Q3 – What tasks are necessary for managing
   computing infrastructure?

 •     Q4 – What tasks are necessary for managing enterprise applications?

 •     Q5 – What are the advantages and disadvantages of outsourcing?

 •     Q6 – What are your user rights and responsibilities?


Dr. Chen, Management Information Systems
                                                                             11-10
           Q3 – What tasks are necessary for managing
                  computing infrastructure?
    The IS infrastructure must mirror the organization’s structure. That is, if the
     organization itself is highly controlled and centralized, then the IS infrastructure
     should be also. If the organization is decentralized with autonomous operating
     units, then the IS infrastructure should support that.
    The figures below show the discord between one type of organizational structure
     and another type of IS infrastructure.




 Fig 11-3 Distributed Check-               Fig 11-4 Problematic   Fig 11-5 Decentralized Order-
        Printing Company
Dr. Chen, Management Information Systems
                                               Centralized IS         Management System       11-11
             Q3 – What tasks are necessary for managing
                    computing infrastructure?
 • The IS department is responsible for creating, operating, and
   maintaining the organization’s computing infrastructure for
   end-users, networks, data centers, data warehouses, and data
   marts.
 • The IS department must establish technology and product
   standards and ensure end-users do not deviate from them. On
   the other hand, IS configurations must support the type of
   work users do.
 • The IS department must track user problems and monitor their
   resolution. They assign a tracking number to the problem,
   enter it into the queue according to its priority, and monitor the
   problem until it’s resolved. CIOs and managers should also
   monitor problem resolution.
Dr. Chen, Management Information Systems
                                                                   11-12
             Q3 – What tasks are necessary for managing
                    computing infrastructure?
 • The figure below shows a typical IS operations group. Note all
   of the people necessary to support an information system.




                              Fig 11-6 Organization of a Typical IS Operations Group
Dr. Chen, Management Information Systems
                                                                                       11-13
 •     Q1 – What are the functions of the IS department?

 •     Q2 – How do organizations plan the use of IS?

 •     Q3 – What tasks are necessary for managing computing infrastructure?


 • Q4 – What tasks are necessary for managing
   enterprise applications?

 •     Q5 – What are the advantages and disadvantages of outsourcing?

 •     Q6 – What are your user rights and responsibilities?


Dr. Chen, Management Information Systems
                                                                              11-14
             Q4 – What tasks are necessary for managing
                     enterprise applications?
 •     If an organization uses enterprise applications, it may need support staff for
       managing them. Either the IS department manages everything, or individuals and
       workgroups manage their own applications. Enterprise applications include some
       functional applications and all cross-functional applications including CRM, ERP,
       EAI, and SCM
 •     This figure provides a list of tasks involved in managing enterprise applications.




                                      Fig 11-7 Managing Enterprise Applications
Dr. Chen, Management Information Systems
                                                                                        11-15
             Q4 – What tasks are necessary for managing
                     enterprise applications?
     This figure shows how a typical IS development group might be organized.
      Each business may adapt this chart to its own needs.




                                           Fig 11-8 Organization of a Typical IS Development Group   11-16
Dr. Chen, Management Information Systems
             Q4 – What tasks are necessary for managing
                     enterprise applications?
      Administering data resources is a very important function with two aspects:
        Data administration, which pertains to all of an organization’s data assets.

        Database administration, which pertains to a particular database.

      A data administrator/database administrator supervises the entire data functional
       group.
      This figure describes the responsibilities of data administration.




                                      Fig 11-9 Data Administration Responsibilities
Dr. Chen, Management Information Systems
                                                                                           11-17
             Q4 – What tasks are necessary for managing
                     enterprise applications?
     One of the responsibilities of data administration is to establish and
      maintain a data dictionary. This figure is an example of some of the fields
      found in a data dictionary.




                                       Fig 11-10 Example of Data Dictionary Fields

Dr. Chen, Management Information Systems
                                                                                     11-18
 •     Q1 – What are the functions of the IS department?

 •     Q2 – How do organizations plan the use of IS?

 •     Q3 – What tasks are necessary for managing computing infrastructure?

 •     Q4 – What tasks are necessary for managing enterprise applications?


 • Q5 – What are the advantages and disadvantages
   of outsourcing?

 •     Q6 – What are your user rights and responsibilities?



Dr. Chen, Management Information Systems
                                                                              11-19
                                           SOURCING DECISION
                                           CYCLE FRAMEWORK




Dr. Chen, Management Information Systems
                Sourcing Decision Cycle Framework
 • Sourcing involves many decisions (Figure Extra-1).
 • The first step is the make or buy decision.
 • If buy is selected then the company must decide
   where.
 • If the company decides to go offshore it must decide
   if the offshore company is near or far.
 • Periodic evaluation must take place.
 • Continual evaluation is needed to determine if the
   arrangement is satisfactory or not (either for
   outsourcing or insourcing).

Dr. Chen, Management Information Systems
                             Where & how the sourcing
                               should be delivered?                            (overseas subsidiary)
                                                                   Where?
                                               OFFSHORING
                                                              CAPTIVE CENTER


                                                               FARSHORING         (distant land)
                        OUTSOURCING

                                                              NEARSHORING
                                           In or Out of
                                           Country?              (proximate)
                                                  INSHORING


                                                                  Status Quo or
                                                                  Change?
                         Make or Buy?




                          INSOURCING

                             FIGURE Extra-1: SOURCING DECISION CYCLE FRAMEWORK
Dr. Chen, Management Information Systems
      Q5 – What are the advantages and disadvantages
                      of outsourcing?
 • Outsourcing, the process of hiring another organization to perform a
   service, can provide advantages like the ones shown in this figure.
 • India is the most popular foreign outsourcer because of its large, well-
   educated, English-speaking population who earn 20 to 30 percent less in
   labor costs than their U.S. counterparts.
        International
         outsourcing is well-
         suited to 24/7 operations
         like customer support.
        Some say outsourcing is
         a threat to U.S.
         technology leadership.




                                           Fig 11-11 Popular Reasons for Outsourcing IS Services   11-23
Dr. Chen, Management Information Systems
      Q5 – What are the advantages and disadvantages
                      of outsourcing?
      This figure shows alternatives businesses have for outsourcing some or all
       of their information system components.




                                           Fig 11-12 IS/IT Outsourcing Alternatives
Dr. Chen, Management Information Systems
                                                                                      11-24
      Q5 – What are the advantages and disadvantages
                      of outsourcing?
      There are a lot of risks to outsourcing information systems as this figure
       describes.




                                           Fig 11-13 Outsourcing Risks
Dr. Chen, Management Information Systems
                                                                                    11-25
                                       When to Outsourcing?
 • Which IS activities are strategic to our
   company's business?
 • Will outsourcing save us at least ____
                                       15
   percent?
 • Does our firm have access to the needed
   technology and expertise?
         – If not, outsourcing may be the answer to
           acquiring these resources.
 • Does outsourcing increase our firm's
   flexibility?
Dr. Chen, Management Information Systems
 •     Q1 – What are the functions of the IS department?

 •     Q2 – How do organizations plan the use of IS?

 •     Q3 – What tasks are necessary for managing computing infrastructure?

 •     Q4 – What tasks are necessary for managing enterprise applications?

 •     Q5 – What are the advantages and disadvantages of outsourcing?


 • Q6 – What are your user rights and
   responsibilities?


Dr. Chen, Management Information Systems
                                                                              11-27
                         Q6 – What are your user rights and
                                 responsibilities?
 • You have certain rights with regard to the IS department that supports you
   in your job. Here is a list of them.




                                           Fig 11-14 User Information Systems Rights   11-28
Dr. Chen, Management Information Systems
                         Q6 – What are your user rights and
                                 responsibilities?
• You also have responsibilities with regard to supporting your IS department.
  They include those shown in the list below.




                                Fig 11-14 User Information Systems Responsibilities   11-29
Dr. Chen, Management Information Systems

								
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