Download - Ch15 Final
-
7/30/2019 Ch15 Final
1/44
E. Wainright Martin
Carol V. Brown
Daniel W. DeHayesJeffrey A. Hoffer William C. Perkins
MANAGINGINFORMATION
TECHNOLOGYFIFTH EDITION
CHAPTER 15
MANAGING THE INFORMATIONSYSTEMS FUNCTION
-
7/30/2019 Ch15 Final
2/44
2005 Pearson Prentice-Hall Chapter 15 - 2
Rapid technological change
Exploding applications and data
Growth in business managementunderstanding of technology
Frequent external shocks
THE CHALLENGES FACINGISLEADERSHIP
Page 582-583
-
7/30/2019 Ch15 Final
3/44
2005 Pearson Prentice-Hall Chapter 15 - 3
IS leadership must manage these
organizational assets:
Human resources Organizational data
Physical infrastructure
Applications portfolio
MANAGING THEASSETS INAN
ISO
RGANIZATON
Page 583-584
-
7/30/2019 Ch15 Final
4/44
2005 Pearson Prentice-Hall Chapter 15 - 4
Provide specialized IT
training for ISprofessionals and others
MANAGING THEASSETS INAN
ISO
RGANIZATON
Page 584
Developing Human Resources
-
7/30/2019 Ch15 Final
5/44
2005 Pearson Prentice-Hall Chapter 15 - 5
MANAGING THEASSETS INAN ISORGANIZATON
Page 584-585Figure 15.1 Selected IS ManagementPositions (1 of 3)
Possible IS Management Positions
-
7/30/2019 Ch15 Final
6/44
2005 Pearson Prentice-Hall Chapter 15 - 6
MANAGING THEASSETS INAN ISORGANIZATON
Page 584-585Figure 15.1 Selected IS ManagementPositions (2 of 3)
Possible IS Management Positions
-
7/30/2019 Ch15 Final
7/44
2005 Pearson Prentice-Hall Chapter 15 - 7
MANAGING THEASSETS INAN ISORGANIZATON
Page 584-585Figure 15.1 Selected IS ManagementPositions (3 of 3)
Possible IS Management Positions
-
7/30/2019 Ch15 Final
8/44
2005 Pearson Prentice-Hall Chapter 15 - 8
Develop policies and
procedures to managean IT systems physical
assets computer
hardware and networks
MANAGING THEASSETS INAN ISORGANIZATON
Page 584
Improving the Physical Infrastructure
-
7/30/2019 Ch15 Final
9/44
2005 Pearson Prentice-Hall Chapter 15 - 9
Infrastructure management issues addressed
in policy statements:1. Location
2. The workstation
3. Supported operating systems
4. Redundancy
5. Supported communications protocols
MANAGING THEASSETS INAN ISORGANIZATON
Page 586-588
Improving the Physical Infrastructure
-
7/30/2019 Ch15 Final
10/44
2005 Pearson Prentice-Hall Chapter 15 - 10
Infrastructure management issues addressed
in policy statements (cont.):6. Bandwidth
7. Response time on the network
8. Security versus ease of access
9. Breadth of network access
10.Access to external data services
MANAGING THEASSETS INAN ISORGANIZATON
Improving the Physical Infrastructure
Page 586-588
-
7/30/2019 Ch15 Final
11/44
2005 Pearson Prentice-Hall Chapter 15 - 11
Most companies cannot operate without
software applications they are critical assets
Just as physical infrastructure, software
portfolio needs managed as an asset
MANAGING THEASSETS INAN ISORGANIZATON
Managing the Applications Portfolio
Page 588
-
7/30/2019 Ch15 Final
12/44
2005 Pearson Prentice-Hall Chapter 15 - 12
A company must know:
What software it owns Where it is located
What it does
How effective it is
What condition it is in
MANAGING THEASSETS INAN ISORGANIZATON
Managing the Applications Portfolio
Page 588
-
7/30/2019 Ch15 Final
13/44
2005 Pearson Prentice-Hall Chapter 15 - 13
Policies and guidelines must exist for the
development and maintenanceof ISapplications
Maintenance should be treated as an activity
necessary to preserve an assets value
MANAGING THEASSETS INAN ISORGANIZATON
Managing the Applications Portfolio
Page 588
-
7/30/2019 Ch15 Final
14/44
2005 Pearson Prentice-Hall Chapter 15 - 14
Application portfolio policies must address:
1. Assumed user2. Application location
3. Process-driven or data-driven design
4. Evaluation criteria for new applications systems
MANAGING THEASSETS INAN ISORGANIZATON
Managing the Applications Portfolio
Page 588-590
-
7/30/2019 Ch15 Final
15/44
2005 Pearson Prentice-Hall Chapter 15 - 15
Process-Driven Design
Collects, manipulates,and stores only data
needed to operate a
particular process
Most often used in thepast
Data-Driven Design
Concentrates on alldata needed and
collects into database
Each application
accesses commondatabase for needed
information
Managing the Applications Portfolio
Page 589-590
MANAGING THEASSETS INAN ISORGANIZATON
-
7/30/2019 Ch15 Final
16/44
2005 Pearson Prentice-Hall Chapter 15 - 16
Ten key issues:
1. Developing effective change management system (Chapter 12)
2. Ethical use of IT (Chapter 16)
3. Agreeing upon the role of the IS organization
4. Selecting effective IS leadership
5. Creating an active partnership with business managers
6. Determining an outsourcing strategy
7. Designing an equitable financing system
8. Deploying global information systems
9. Designing an appropriate IS organization and governance
system
10. Ensuring regular performance measurement
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Page 590-591
-
7/30/2019 Ch15 Final
17/44
2005 Pearson Prentice-Hall Chapter 15 - 17
IS organization:
Role is continually changing
Needs a mission statement
Must be future-oriented while fulfilling todays
requirements Must be aligned closely with business activities
1. Agreeing Upon the Role of the IS Organization
Page 588-590
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
-
7/30/2019 Ch15 Final
18/44
2005 Pearson Prentice-Hall Chapter 15 - 18
IS organization is expected to: Demonstrate business understanding and maintain close
communication with business managers
Respond quickly to changing business needs
Help reengineer business processes to be more customer responsive
Ensure business can participate in e-commerce
Keep final customer in mind
Build systems that provide direct customer benefit Help business managers make better decisions with information
Use IT for competitive advantage
Help business integrate IT
1. Agreeing Upon the Role of the IS Organization
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Page 591
-
7/30/2019 Ch15 Final
19/44
2005 Pearson Prentice-Hall Chapter 15 - 19
IS organization is alsoexpected to: Be steward of organizations IT resources
Deploy IT resources throughout the organization
Facilitate productive use of resources
Lead development of information vision and IT architecture
Communicate vision and architecture
Maintain managerial control over important information resources
Administer corporate data Make current and new IT available at lowest possible cost
Help business managers know and use technology
Develop partnership with business managers to exploit technology
1. Agreeing Upon the Role of the IS Organization
Page 592
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
-
7/30/2019 Ch15 Final
20/44
2005 Pearson Prentice-Hall Chapter 15 - 20
Chief Information Officer (CIO):
A member of executive management team
Needs mix of business and technical knowledge Guides and unifies entire organizations IT resources
Masters understanding of business, products, vendors, sales
channels, customers, and competition
Recognize IT advantages and where to apply Hires good people and delegates
Works with executive management team to achieve
competitive advantage
2. Selecting Effective IS Leadership
Page 593-594
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
-
7/30/2019 Ch15 Final
21/44
2005 Pearson Prentice-Hall Chapter 15 - 21
Senior IS Management Issues: Improving data and IT planning, especially linking IS to the business
Gaining business value through IT Facilitating organizational learning about and through IT
Refining the IS units role and position
Guiding systems development by business managers
Managing organizational data as an asset
Measuring IS effectiveness
Integrating information technologies
Developing systems personnel
2. Selecting Effective IS Leadership
Page 594-595
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
-
7/30/2019 Ch15 Final
22/44
2005 Pearson Prentice-Hall Chapter 15 - 22
3. Creating an Active Partnership with Business Managers
Page 595
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Partnershipa critical strategy based on sustaining a
long-term relationship between IS and businessmanagement
-
7/30/2019 Ch15 Final
23/44
2005 Pearson Prentice-Hall Chapter 15 - 23
IS steering committee or advisory board used to: Ensure frequent interaction
Set priorities
Check progress
Allocate scarce resources
Communicate concerns
Provide education
Develop shared responsibility
3. Creating an Active Partnership with Business Managers
Page 595
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
-
7/30/2019 Ch15 Final
24/44
2005 Pearson Prentice-Hall Chapter 15 - 24
4. Determining an Outsourcing Strategy
Page 595
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Outsourcing hired outside services to perform some of a
companys IS operations
Application service providers (ASPs) provide total
systems to organizations, ranging from competitive
intelligence systems to broad ERP applications
-
7/30/2019 Ch15 Final
25/44
2005 Pearson Prentice-Hall Chapter 15 - 25
Outsourcing: Allows an organization to pay only for what it uses
Trend might relate to the position of the CIO
Popular, largely due to: Fast pace of technological change
Dissatisfaction and costs related to past in-house services
Must be both a remedy for service failures or costs and
a strategic choice Should not be used for strategic information systems
with security or privacy issues
Page 596-597
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
-
7/30/2019 Ch15 Final
26/44
2005 Pearson Prentice-Hall Chapter 15 - 26
Key factors in selecting an outsourcing vendor:
Vendor reputation
Quality of service
Flexible pricing
Page 596-597
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
-
7/30/2019 Ch15 Final
27/44
2005 Pearson Prentice-Hall Chapter 15 - 27
5. Designing an Equitable Financing System
Page 598
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Typical measures used to track IT costs:
Total IT budget as percentage of total organization
revenues or income
Total IT budget as percentage of total organization
budget
IS personnel costs as percentage of total organization
professional personnel salaries and wages
Ratio of hardware and software costs to IS personnel
costs
Costs for IT hardware and software per managerial or
knowledge worker
-
7/30/2019 Ch15 Final
28/44
2005 Pearson Prentice-Hall Chapter 15 - 28
5. Designing an Equitable Financing System
Page 598
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Why is it hard to measure IT costs?
Some IT costs are hidden No relationship to benefits included in
these measures
Benefits may happen after development
costs occur
-
7/30/2019 Ch15 Final
29/44
2005 Pearson Prentice-Hall Chapter 15 - 29 Page 598
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Measuring Benefits
No simple way to measure valueadded benefits of IT
Can track IS performance measures
over time
-
7/30/2019 Ch15 Final
30/44
2005 Pearson Prentice-Hall Chapter 15 - 30 Page 598
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Controlling IS Costs
Use IS organizations budget Divide costs:
Personnel
Equipment and software
Outside services
Overhead
-
7/30/2019 Ch15 Final
31/44
2005 Pearson Prentice-Hall Chapter 15 - 31 Page 598
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Chargeback Systems
IS chargeback process places control of IS spending
with business managers, and is used to better understand
true costs
-
7/30/2019 Ch15 Final
32/44
2005 Pearson Prentice-Hall Chapter 15 - 32
5. Designing an Equitable Financing System
Page 598
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Why use a chargeback system?
Assign costs to those who consume Control wasteful use of IT resources
Overcome belief that IT costs unnecessarily high
Provide incentives using subsidy
Change IS to be more business driven
Encourage managers to be knowledgeable
consumers
-
7/30/2019 Ch15 Final
33/44
2005 Pearson Prentice-Hall Chapter 15 - 33
5. Designing an Equitable Financing System
Page 598
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Successful chargeback systems must be:
Understandable Timely
Controllable
Accountable
Clearly linked to benefits
Consistent with IS and organizational goals
-
7/30/2019 Ch15 Final
34/44
2005 Pearson Prentice-Hall Chapter 15 - 34
6. Deploying Global Information Systems
Page 600-601
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Region and country issues influencing
global IT management:1. Country telecommunications infrastructures
2. Legal and security considerations
3. Language and culture
4. Time zone differences
-
7/30/2019 Ch15 Final
35/44
2005 Pearson Prentice-Hall Chapter 15 - 35
6. Deploying Global Information Systems
Page 602
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Key trends of global outsourcing:
Offshore development centers permanent offshorepresence
Near-shore sourcing outsourcing to countries close to
home and overlapping time zones
Multisourcing relying on multiple service providers ina number of companies, based on price and skills
-
7/30/2019 Ch15 Final
36/44
2005 Pearson Prentice-Hall Chapter 15 - 36
6. Deploying Global Information Systems
Page 603
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Global team manager traits:
Multiculturalist E-facilitator
Recognition promoter
Internationalist
Traveler
-
7/30/2019 Ch15 Final
37/44
2005 Pearson Prentice-Hall Chapter 15 - 37
7. Designing an Appropriate IS Organization
and Governance System
Page 603-604
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Figure 15.8 Classic IS OrganizationStructure
-
7/30/2019 Ch15 Final
38/44
2005 Pearson Prentice-Hall Chapter 15 - 38
7. Designing an Appropriate IS Organization
and Governance System
Page 604
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Types of IS Organizational Design:
Centralized IS applications and resources housed,managed, and controlled centrally
Decentralized business units have complete control of
their own IS resources
Federal attempt to achieve benefits of both centralizedand decentralized
Customized mixed design in large enterprises where
each division determines best design for that division
-
7/30/2019 Ch15 Final
39/44
2005 Pearson Prentice-Hall Chapter 15 - 39 Page 605Figure 15.9 Common Designs forthe IS Organization
Centralized Decentralized Federal Customized
-
7/30/2019 Ch15 Final
40/44
2005 Pearson Prentice-Hall Chapter 15 - 40
7. Designing an Appropriate IS Organization
and Governance System
Page 605
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Organization design depends on:
How rest of business is organized
Type of customer markets, products, and
geographical spread
Role of IT within the organization
Reporting level of most senior IS leader
Types of technologies managed by IS organization
-
7/30/2019 Ch15 Final
41/44
2005 Pearson Prentice-Hall Chapter 15 - 41 Page 606Figure 15.10 Four Types of ISGovernance Mechanisms
-
7/30/2019 Ch15 Final
42/44
2005 Pearson Prentice-Hall Chapter 15 - 42
8. Ensuring Regular Performance Measurement
Page 606
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Necessary for internal customers to regularly
evaluate IS organization Need to show if promised cost savings are
realized
Required: Agreement on measurable criteria
Metrics to judge work quality
-
7/30/2019 Ch15 Final
43/44
2005 Pearson Prentice-Hall Chapter 15 - 43
8. Ensuring Regular Performance Measurement
Page 607
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
IS Evaluation Criteria Meeting business objectives
Responding rapidly and economically to new needs Expanding business or services
Developing an architecture and plan
Operating reliable and efficient technology resources
Focusing on the customer
Providing quality IS staff Reducing size of backlog
Satisfying users
Adopting new technologies
Figure 15.11 IS Evaluation Criteria
-
7/30/2019 Ch15 Final
44/44
8. Ensuring Regular Performance Measurement
INFORMATION TECHNOLOGYMANAGEMENT SYSTEM ISSUES
Other measures to evaluate IS performance:
Service level agreements with internal business units
can be used to evaluate IS performance
Annual surveys for each major system
User satisfaction surveys