Introduction to MIS Chapter 13 Organizing the MIS

Introduction to MIS Chapter 13 Organizing the MIS Resources Copyright © 1998 -2002 by Jerry Post Introduction to MIS 1

Organizing IS Resources Strategy Tactics Operations Introduction to MIS 2

Outline Ø Ø Ø Ø Ø Managing Information Systems Functions MIS Roles MIS Jobs International Comparisons Outsourcing MIS Organization: Centralization Intranets and Thin Clients Cases: Financial Services Appendix: Project Management Introduction to MIS 3

Ø Ø Ø Ø Hardware administration Software support Corporate data access Software development End user support Computing standards DB administration Advocacy Software development MIS Roles Advocacy Database administration Access to corporate data Hardware administration Software training and support Introduction to MIS Corporate computing standards Support end user development 4

Some MIS Roles Hardware Repair Network and Telecommunications Training and User Support Introduction to MIS 5

Salaries 2001 IS Management CIO/VP IS/CTO Systems Development Director Manager Project manager System analyst Senior developer Programmer/analyst Junior programmer $123, 000 88, 000 85, 000 79, 000 74, 000 55, 000 45, 000 Internet Manager Webmaster Application developer EC specialist EDI specialist $165, 000 Database Networks Director Manager Administrator Network analyst Junior analyst $106, 000 83, 000 60, 000 40, 000 34, 000 Introduction to MIS Manager Administrator Database analyst $94, 000 89, 000 67, 000 User Support Manager Help desk operator PC technical support Security $94, 000 72, 000 70, 000 74, 000 66, 000 Includes bonus Manager Administrator Specialist IS audit manager IS audit staff $86, 000 72, 000 64, 000 81, 000 53, 000 $69, 000 40, 000 43, 000 Operations Director Manager Lead operator Computer operator http: //careers. wsj. com http: //www. computerworld. com $106, 000 74, 000 42, 000 35, 000 9

International Salaries Nation Programmer/Analyst Salary United States 55, 000 Britain 57, 000 Russia 10, 800 India Introduction to MIS 2, 508 11

Skills in Demand Ra nk 2001 1998 1994 1 ERP 2 Object engineering Groupw Databa are se 3 Data warehouse and data visualization Databa se UNIX 4 Groupware Networ king Visual Basic 5 Wireless COBOL Introduction to MIS Network ing 13

Outsourcing Company 19 91 19 95 19 97 199 200 9 0 IBM Global Services 0. 4 17. 24. 35. 7 6 0 37. 0 EDS 1. 2 12. 15. 18. 4 2 7 19. 2 CSC 0. 4 4. 2 6. 6 9. 4 10. 5 Accenture 0. 5 4. 2 6. 3 9. 5 9. 8 ADP 0. 3 3. 0 4. 9 6. 3 7. 0 Affiliated Computer 0. 1 0. 4 1. 2 2. 0 6 2. 1 Fiserv 0. 2 0. 7 1. 0 1. 4 3 1. 7 Perot Systems 0. 1 0. 3 0. 8 1. 2 6 1. 1 Total (billion Introduction to MIS 3. 4 42. 60. 83. 88. 15

Outsourcing Evaluation Cost of reaching state of the art Specialized Talent Needed When any of these characteristics increases (moves outwards), there is less reason to use outsourcing. Security & Control Level of Technology Fixed Costs Complex Market Structure Introduction to MIS 16

Globalization, new competitors. Pressure on profits. Shorter product life-cycles, mass customization. Need to focus on increasing revenues and decreasing fixed/semi-fixed costs. Rapidly changing markets, flexible manufacturing. Cost cutting, staff cuts, loss of middle management. Need for flexibility and responsiveness. Outsourcing Forces Outsource non-revenue generate functions (staff/operations) Desire to minimize amount of management time devoted to non-revenue generating functions. Economies of Scope Want one vendor to provide multiple functions. Economies of Scale - leverage expertise and methodologies. - invest in expensive technologies (state-of-the-art) - process-oriented approach Big Outsourcing Vendors & Big 6 Firms Introduction to MIS 17

Summary of MIS Organization Introduction to MIS 18

Complete Centralization Hardware Data and software MIS personnel User departments Introduction to MIS 19

Ø Easier to share v v Ø Data Expensive hardware (printers) Easier to control v Ø Hardware Centralization Advantages Purchases Usage Less duplication Efficiency — less unused resources Introduction to MIS 20

Ø Ø Software Centralization Advantages Compatibility Bulk buying discounts Easier training Ease of maintenance & upgrades Introduction to MIS 21

Ø Ø Easy backup Easier to Share Less duplication Security controlmonitoring Introduction to MIS Data Centralization Advantages 22

Ø Ø Ø Personnel Centralization Workers with similar backgrounds Advantages Easier training Straightforward growth path Specialized staff Easier to see/control costs Introduction to MIS 23

Growth of PCs Introduction to MIS 24

Complete Decentralization Human Resource Management MIS personnel are members of user departments Finance Marketing Accounting Introduction to MIS 25

Ø Ø Ø Hardware Decentralization Less chance of total breakdown Advantages Users get personalized equipment Micros are cheaper than mainframes Introduction to MIS 26

Software Decentralization Advantages Ø Ø Different users have different preferences Easier access Customization without affecting others Can overcome objections v v v Lower prices minimize benefits of bulk purchases. Similarities of packages make training easier. Conversion tools enable sharing. Introduction to MIS 27

Data Decentralization Advantages Ø Ø Ø Not all data needs to be shared Easier find access Control & politics Introduction to MIS 28

Personnel Decentralization Advantages Ø Closer to users v v v Ø Faster response More time spent with users Better understanding/communication Different career path Introduction to MIS 29

Thin Clients Server Data and applications Thin client Browser-based access User interface Introduction to MIS 30

Intranet Network Solutions High-bandwidth connections between servers. Standard Internet connections to users. Introduction to MIS 31

Simple Object Application Protocol Your Company Server The Internet Your Financial Application Bank Server Bank Service SOAP Currency converter: Date, In. Currency, Outcurrency Manager or Client Introduction to MIS 32

Decentralization Summary Organizational Strengths Weaknesses Are operations interdependent? -planning -development -physical resources -operations End users gain control. Possible short term bias in decision making. Can subunits relate solely through information & messages? Increased organizational flexibility. Supports workgroups. Might not be optimal use Enables new of resources for organizational structures. corporation. IS staff might lose cohesiveness and support. Does corporate culture support decentralization? Introduction to MIS 35

Cases: Financial Services Introduction to MIS 36

Cases: Fidelity Investments Charles Schwab & Co. www. fidelity. com www. schwab. com What is the company’s current status? What is the Internet strategy? How does the company use information technology? What are the prospects for the industry? Introduction to MIS 37

Ø Projects v Goal Appendix: Project Management Need a well-defined goal è Good example: Put a man on the moon. è Bad example: Improve the IRS information systems. è v Scope Size and complexity of the project. è Match the management techniques to the project scope. è v Schedule Break project into tasks è Tasks depend on other tasks (you can’t paint a wall until it is built). è Tasks take time to complete (duration) è Tasks require resources. è v Resources Worker time is usually the most important to schedule. è Workrooms, machinery, and so on. è Introduction to MIS 38

Project Management Steps Ø Ø Define the project. Create the plan. Track and manage the project as it proceeds. Close the project when the goal is achieved or the project is cancelled. Introduction to MIS 39

Microsoft Project Ø Specialized database v v Ø Specialized views of the data v v v Ø Tasks (start, duration, description, dependence) Resources (costs, needs, assignments) Gantt Chart Highlight task duration. PERT Chart Highlight task dependence. Calendar Show scheduled tasks. Task Usage Show assigned resources. Tracking Gantt Compare estimates to actual. Task Sheet Detailed task data. Resource views v v v Resource Graph Resource Sheet Resource Usage Introduction to MIS Track resources over time. Detailed resource data. Tasks assigned to resources. 40

Sample: Spring Forward Century Sunday, April 2, 2000 25 miles 50 miles 100 miles Planning the ride Ø Ø Ø Choose starting point Legal paperwork Establish routes Create databases Create promotional materials Create commemorative shirts Register riders Organize volunteer groups Advertise ride Plan rest stops Plan registration Ride day is a separate project Spring. Forward. Century. mpp After the ride Ø Ø Ø Final clean up Thank you notes Write project notes Organize Spring Forward Century. mpp Introduction to MIS 41

Organize Spring Forward Century. mpp Microsoft Project: Gantt Chart Introduction to MIS 42

Gantt Chart (continued) Introduction to MIS 43

Resource Usage You need to get some tasks done sooner, or get more volunteers on the day before the ride. You need to start earlier, or get volunteers to do more of the organizing tasks. Introduction to MIS 44

Spring. Forward. Century. mpp Ride Day Introduction to MIS 45