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Chapter 10
Organizing Information
Systems and Services
Management Information Systems, Second Edition
Effy Oz
Learning Objectives
 When you finish this chapter, you will
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 Understand the different ways in which ISs are
deployed in organizations.
 Be able to list and explain the advantages and
disadvantages of each IS architecture.
 Know the importance of collaboration between IS
managers and line managers, and understand the
relationships between the two groups.
 Be able to describe career paths and responsibilities
in the IS field.
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Information Systems
Architecture and Management
 Centralized Information Systems Architecture
 Mainframes dictated IS architecture be centralized
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 Advantages
 High degree of control
 Easy to maintain hardware, software, procedure, and
operation standards
 Easy control of access to information
 Disadvantages
 Inflexible
 Lack of customization
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Information Systems
Architecture and Management
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Figure 10.1 In centralized IS architecture, information
resources are maintained on one or several large computers
that are centrally controlled.
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Information Systems
Architecture and Management
 Decentralized Information Systems
Architecture
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 Allows departments and remote sites independence in
organizing and using their ISs
 Local IS department establishes infrastructure
 Disadvantages
 Difficult to share applications and data among units
 Expensive to maintain and service different systems
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Information Systems
Architecture and Management
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Figure 10.2 In decentralized IS architecture, workers at
different sites and departments (A, B, C) use information
resources that are dedicated to their site or department.
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Information Systems
Architecture and Management
 Distributed Information Systems
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 Each unit selects and implements its own
system.
 Remote units can share resources through
communication lines.
 Many organizations changing to
distributed architecture.
 Increased reliability and affordability of data
communication and PC technology
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Information Systems
Architecture and Management
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Figure 10.3 In distributed IS architecture, workers use
the information resources of their own site or
department, but can also use the resources of other sites
or departments through communication lines
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Information Systems
Architecture and Management
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Figure 10.4 Centralized vs. decentralized IS
trade-offs
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Information Systems
Architecture and Management
 Centralized vs. Decentralized ISs:
Advantages and Disadvantages
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 Advantages of Centralized IS Management
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Standardized hardware and software
Easier training
Encouragement of common reporting systems
Effective planning of shared systems
Easier strategic planning
Efficient use of IS personnel
Accommodation of tight control by top
management
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Information Systems
Architecture and Management
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Figure 10.5 Centralized management of ISs
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Information Systems
Architecture and Management
 Advantages of Decentralized IS
Management
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 Better fit of ISs to business needs
 Timely responsiveness of IS units to business
demands
 Encouragement of end user application
development
 More innovative use of ISs
 Support for delegation of authority
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Information Systems
Architecture and Management
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Figure 10.6 Decentralized management of ISs (in
fully decentralized management, the central IS unit
would not exist)
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Information Systems
Architecture and Management
 Trends in Information Systems Organization
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 Discarding Big Iron (mainframe computers)
 Switch to PCs brings distributed IS architecture benefits.
 Some companies keep mainframe for processing power.
 Reengineering with Information Technology
 Effort for breakthrough gains through radical business
process and system changes.
 Almost always leads to integrating IT in all processes.
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Organizing the IS Staff
 Central IS Organization
 Corporate IS team serves all units
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 IS Director oversees departments within IS
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System development and maintenance
Information center
Communications
Data administration
Research and development
 Involved in virtually every aspect of IT
 Steering committee oversees IS services
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Organizing the IS Staff
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Figure 10.7 An example of an IS unit’s organization with centrally
managed ISs
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Organizing the IS Staff
 Functional IS Organization
 Each unit fulfills IS needs independently.
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 Each business unit has one or several IS
professionals who report to the unit
manager.
 Funds come from unit budget.
 Small central unit can coordinate IS for
departments that need help.
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Organizing the IS Staff
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Figure 10.8 An example of IS personnel locations in an
organization with functionally managed ISs
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Organizing the IS Staff
 The Best of Both Approaches
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 Many companies use elements of both
central and functional IS management.
 Regardless of IS management,
implementation depends on position of
highest IS officer.
 Reports to VP: IS provides technical solutions
 Reports to CEO: IS more involved in strategic
planning
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Organizing the IS Staff
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Figure 10.9 The number of CIOs reporting directly to a CEO
has increased in recent years
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Challenges for IS Managers
and Line Managers
 Line Managers’ Expectations of an IS Unit
 Broad understanding of business activities
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 Prompt response to information needs
 Clear explanation of what technology can and can’t do
 Candid explanations of what IS can and can’t do
 Honest budgeting
 Single point of contact
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Challenges for IS Managers
and Line Managers
 IS Manager Expectations of Line Managers
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 Projected list of basic IS needs
 Clear explanation of business processes that need
support once an IS manager is asked to develop a
new system
 What features the business manager wants in the
new system once general automation process is set
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The Information Center
 Coordination and Control
 Hardware and software purchases
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 Application development
 Development and use of databases by end
users
 Support
 Training and response to requests for help
 Help desk: Troubleshoot on demand
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The Information Center
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Figure 10.10 The help desk is an essential resource for
IS users.
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Chargeback Methods
 Two ways to treat cost of IS function
 Part of overhead cost: General shared
expense
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 Chargeback system: Units charged for
services
 Service Charges
 What is chargeable?
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Personnel hours
Computer time
External storage space
Number of input and output operations
Paper output
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Chargeback Methods
 Desirable Chargeback Features
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Accountability
Controllability
Timeliness
Congruence with organizational goals
 Chargeback Criticism
 Expense may discourage IT initiatives
 High rates can be frustrating
 Overhead Expenditures
 Research and development
 Corporation-wide data communications
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Careers in
Information Systems
 Systems analyst
 Limited analysis of business needs and ISs
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 Updates and maintains existing ISs
 Designs new ISs
 Analyzes system requirements from user input
 Documents efforts and system features
 Provides specifications for programmers
 Agents of change
 Good persuasion and presentation skills
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Careers in
Information Systems
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Figure 10.11 The multiple roles of a systems analyst.
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Careers in
Information Systems
 Database Administrator (DBA)
 Responsible for database of an organization
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Planning and design
Adoption of DBMSs and 4GLs
Physical organization and storage
Logical organization
Schema development
Data dictionary development and maintenance
Security measures for access and proper use
Failure recovery and back-up measures
Updates and data integrity
Interfaces of internal databases with other ISs
Database personnel management
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Careers in
Information Systems
 Telecommunications Manager
 Responsible for computer networks
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Acquisition
Implementation
Management
Maintenance
Troubleshooting
 Assesses future needs of the business
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Careers in
Information Systems
 Webmaster
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 Creates and maintains Web site and intranet
pages
 Must know Web technology, business strategy,
security
 Chief Information Officer (CIO)
 Responsible for all aspects of ISs
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Oversees IS research and development
Oversees IS infrastructure development
Serves as chief technologist
Serves as chief agent of change
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Careers in
Information Systems
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Figure 10.12 Nine commandments for successful,
effective CIOs
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Careers in
Information Systems
 Chief Knowledge Officer (CKO)
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 Responsible for finding strategically
important knowledge resources
 Accumulates, organizes, and retrieves information
 Chief Learning Officer (CLO)
 Independent Consultant
 Offers services to companies that lack
qualified personnel for specific tasks
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Ethical and Societal Issues
Gasping for IT Skills
 Demand Keeps Growing
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 Projected 2 million additional designers,
programmers, and maintenance and repair
workers needed over the next seven years
 1.8 million computer engineers, computer
scientists, and systems analysts needed by
2006
 Ironically, high demand and benefits not
attracting students to IT programs
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Ethical and Societal Issues
Gasping for IT Skills
 One Strategy That Worked
 Irish government subsidized tuition for
students in technological programs
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 Second largest exporter of software
 60 percent of incoming university students
enroll in technological programs per year
 Promoting National IT
 Should government subsidize technological
education?
 Proponents: Benefits all society
 Detractors: Objectionable intrusion on personal
pursuits and allocation of tax money
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