IS Management Introduction and Issues n CIS 679

IS Management Introduction and Issues n CIS 679 Management of Information System New Jersey Institute of Technology First Set of Notes for course n © Copyright 2000 Murray Turoff n n (c) Murray Turoff 2000 1

First Set: Table of Contents n n n Management Challenges & Issues Specific Management Functions Forecasting Methods IS Issues Overview Historical IS Background (c) Murray Turoff 2000 2

Management of IS wisdom n n n n Learn the signals of problems Act to minimize mistakes based upon signals No rules only understandings work Be aware of alternatives and what is going on externally as well as internally Be both a risk taker and a risk avoider Be flexible, calm, recognize talent and advance it Don’t build empires (c) Murray Turoff 2000 3

Management IS Problems I n n n New generations 3 -7 years n Hardware & Software Highly skilled people n Short supply n Highly priced n Too specialized n Too many unskilled n Mavericks n Rapid Obsolescence Rapid cost changes n Relative bases n Declining & Increasing (c) Murray Turoff 2000 4

Management problems II n n Shifting applications n Clerical automation n Office automation n Management information n Decision support n Strategic relevance n Collaborative Systems Foreign vocabulary to users n MIS, GDSS, AI, VR, CMC, Expert Systems (c) Murray Turoff 2000 5

Management problems III n Multiple objectives n n Reductionism training & approaches n n Difficult to deal with or see forest Changing management wisdom n n n Tradeoffs (not optional) No recipes Management rules change Scope, Size & Complexity (c) Murray Turoff 2000 6

Grand management issues for IS n n MIS quarterly, December 1991, June 1996 Delphi study Every four years IS executives n n Chief Information Officers (CIO) 200 – 300 participated (c) Murray Turoff 2000 7

Rank order of issues I n n n 1991 original ranking (#), 1996 issue 1. Developing information architecture, (6) 2. Effective use of data resource, Facilitating and Managing Business Process Redesign 3. Improving IS strategic planning, (13) 4. Specifying, recruiting, and developing IS human resources, (1) 5. Facilitating organizational learning and use of IS technologies, (10). (c) Murray Turoff 2000 8

Rank order of issues II n n n 6. Building a responsive it infrastructure, (9) 7. Aligning the IS organization with that of the enterprise, (2) 8. Using information systems for competitive advantage, Recruiting and developing IS human resources. 9. Improving the quality/effectiveness of software development, (7) 10. Planning, implementing, and managing telecommunications networks/systems, (3) (c) Murray Turoff 2000 9

Rank order of issues III n n n 11. Increasing understanding of role and contribution of IS. Implementing and Managing Collaborative Support Systems 12. Enabling multi-vendor data interchange and integration, (16). 13. Developing and managing distributed systems, Increased understanding of IS role and contribution 14. Planning & using case technology, (5) 15. Planning and managing the applications portfolio, Managing the existing portfolio of legacy applications. (c) Murray Turoff 2000 10

Rank order of issues IV n n n 16. Measuring the IS effectiveness and productivity, (18) 17. Facilitating and managing decision and executive support system, (8) 18. Facilitating and managing end-user computing, planning, integrating, multi-vendor, and open systems. 19. Improving information security and control, Developing and managing electronic data interchange 20. Establishing effective disaster recoveries capabilities, Outsourcing selected information services. (c) Murray Turoff 2000 11

1. Data resources n 1991 n n Information architecture* Data resource* n * indicates it made both the 1991 and the 1996 lists 12 (c) Murray Turoff 2000

2. Communication resources n 1991 Telecommunications systems (1991)/networks(1996)* n Electronic data interchange* n Distributed systems* n Global systems* n (c) Murray Turoff 2000 13

3. Development management n 1991 n n IS human resources* Software development* Case technology 1996 n Outsourcing IS (c) Murray Turoff 2000 14

4. Planning n 1991 n n n IS role and contribution* Strategic planning* IS organization/enterprise alignment* IS asset accounting IS effectiveness (1991)/quality measurement(1996)* 1996 n n Business process redesign Organizational learning (c) Murray Turoff 2000 15

5. Applications management n 1991 Applications portfolio Organizational learning Competitive advantage (old business/new business)* n End-user computing* n Executive/decision support n n 1996 n Legacy applications (c) Murray Turoff 2000 16

6. Cost control n 1991 n n n 1996 n n Security and control Disaster recovery None This signaled the new technology cycle where costs are very secondary starting in 1995. (c) Murray Turoff 2000 17

7. Technology management n 1991 n n Technology infrastructure Image technology Technology islands 1996 n n Collaborative Systems Vendor integration/open systems (c) Murray Turoff 2000 18

Major constant management concerns n n n n Applications management Technology management Development management Planning Cost control Data resources Communication resources n What do you think are three top issues in each category today? (c) Murray Turoff 2000 19

Specific Management Functions n n The functions that management must carry out and be responsible for Importance or significance of each function depends upon: n n n Nature of the business Nature of the organization External Environment (c) Murray Turoff 2000 20

Major management functions n n n n Surveillance Evaluation Planning Forecasting & assessment Policy formulation & analyses Development & implementation Maintenance & operations General management (c) Murray Turoff 2000 21

Surveillance Technology, Applications, Industry, Public Policy, Legal, Ethical, Complexity & control of systems, Education & training, System accreditation, User self implementation approaches, Computer & information industry, Industrial v/s governmental practices, etc. (c) Murray Turoff 2000 22

Evaluation User, Costs, Organization structure, Efficiency, Effectiveness/Quality, Strategic relevance, Goals & objectives, Learning, Power and authority, Culture. Information value and flow, Life cycles, Sunset, Evolution, Accountability, Crisis management ability, Public services delivery, Social responsibility. User participation and management involvement (c) Murray Turoff 2000 23

Planning IS and organizational objectives, Long range approaches, Measures of planning effectiveness, System obsolescence, System evolution, Acquisitions, Hardware, Systems interconnection, Manpower needs, Short term/long term, Normative approaches, etc. (c) Murray Turoff 2000 24

Forecasting & Assessment Hardware, software, and service performance and costs, Vendor offerings, Networks, Regulation and liability, Applications, Markets, Technology, Industry change & overlap (e. g. ecommerce, communications), Computer crime, Exports & imports, Employment demands, Technology performance, Computer literacy and training, Vendor evaluation, Electronic marketplace (c) Murray Turoff 2000 25

Policy formulation & analyses I Standards, Privacy & information rights, Paperwork reduction, Database quality and duplication, Records and performance compliance, Liability, Ownership, Remote work, Impact of metaphors, Technology transfer, Public access to information systems, Top management involvement, People, Organizational, Technology, or System obsolescence (c) Murray Turoff 2000 26

Policy Formulation and Analysis II Organizational structure, Centralized vs. Decentralized, End user computing, Steering committees, Acquisition policies, Life cycle analysis, ZBB analysis, Sunset analysis, Strategic relevance, Labor & job impacts, Productivity & Quality (c) Murray Turoff 2000 27

Development & implementation User acceptance and involvement, Prototyping systems, Evolutionary & modular approaches, Estimations & overruns, Programming productivity, Requirements definition, Validation & verification, Conversion, Auditing, Off the shelf software, Role of research & development (c) Murray Turoff 2000 28

Maintenance & operations Software performance measurement, Structured design & programming, Benchmarks, Quality & data assurance, Security & disaster recovery, Reliability, Obsolescence detection, Saturation detection, Conversion, Auditing, Services contracting, System acceptance testing, Operational user feedback (c) Murray Turoff 2000 29

Management n Personnel n n Classification, Pay, Moral. Certification, Mobility, Training & continuing education, Adequacy & demand, Turnover Decentralization, End user computing. Life cycle costing, Productivity measurement, Software engineering & standards, Interface systems design & standard, Programming support technology, Multiple vendor systems, Management Span, Accountability, (c) Murray Turoff 2000 30

(c) Murray Turoff 2000 31

Forecasting Methods and Examples n n n Can be done with a great deal of accuracy on the right variables Extrapolation for 2 to 5 years as long as no structural (technology, social system, organizational, industrial, governmental) changes. Normative for longer periods like 10 -15 years. 5 -10 considered the “no man’s land” of forecasting in computer field Time scale of change decreasing (c) Murray Turoff 2000 32

Forecasting Methods n n n n n Single trend extrapolation Growth Analogy (limit or not) Substitution Subjective estimations Personal judgment Genius & Expert Opinion Consensus & Focus Group Delphi Normative Techniques (c) Murray Turoff 2000 33

Trend Analysis n n n n Linear Regression Analysis Good as long as no substitution process taking place. Easy if data is available Must discover any underlying models for confidence. Should look at confidence limits Speed of Computers, memory size Cost verses quantity of product (c) Murray Turoff 2000 34

Number of Transistors per Die (symbols reversed) (c) Murray Turoff 2000 35

Moore’s Law n n n Computing Power grows 100 times every 10 years at state of the art! Or costs of total systems go down by a factor of 10 every 10 years Logarithmic relationships of performance or costs. Year 1955 1965 1975 1985 1995 Dollars 10, 000 1, 000 100, 000 1, 000 (c) Murray Turoff 2000 36

Costs modified by performance and adjusted for inflation (c) Murray Turoff 2000 37

Technical Progress Function n n n T = A(X)**B T = The value of the technological parameter X = the cumulative production quantity A = a constant associated with unit number one B = the rate of progress associated with the external environment. Log(T) = B*log(X) + log(A) (linear form) (c) Murray Turoff 2000 38

Substitution Effects: Cyclic investment in new technology (U. S. Bureau of Statistics proxy measure for IS expenditures) (c) Murray Turoff 2000 39

Technical Progress Alternative Functions n n n Could be costs instead of technology parameter. Costs go down and performance goes up with quantity of production. Learning curve: Efficiency in performing the Nth task is the same function of the cumulative task number. (c) Murray Turoff 2000 40

Increased end user computing 1960 1970 1985 1990 1 -3% 5 -7% 15 - 20 % 45 - 50 % 50 - 75 % Next decade (2000+) may reach plateau between 80 – 90 % Substitution of 100% of computing from all by IS professionals to a growing percentage by users. (c) Murray Turoff 2000 41

Growth Analogy n n n n Initial cell/invention Cell division/Inventive Process Cell division period/time between inventions Nutrient media/Economic support Cell lifetime/Useful live of invention Cell Death/Obsolescence Cell mass/Technical area Volume limit of mass/Limit on demand (c) Murray Turoff 2000 42

Growth Curves n n n Birth and rapid initial adoption Steady growth over initial period Heading toward a limit which should be known Turnover with age Light efficiency of incandescent lamps Use Perl (logistic) curve and Gompertz curve (c) Murray Turoff 2000 43

Substitution n n Growth Curve to 100% of market Water based paints for oil based; Percentage of plastic in automobiles, synthetic rubber for natural rubber. Good for measuring technical substitution. Usually 15% substitution sufficient for projecting rest of curve. Three and higher substitutions possible (c) Murray Turoff 2000 44

Substitution Example n n n The substitution of fiberglass & plastic for wood in personal boats Data taken from the yearly London Boat Show (1950 -1970) Number of boats of each type exhibited as ratio to total number Results is a clear substitution curve Indirect and imaginative data collection a characteristic of good forecasters Often direct data unobtainable (c) Murray Turoff 2000 45

Substitution/Growth Curves n Perl Curve, Logistics Curve, Fermi Dirac Distribution y = L(1/(1+ae**(-bt))) Y = ln((L/y-1) = ln(a) –bt (linear form) n Gompertz Curve y = Le**(be**(-kt)) Y = Ln(ln(L/y)) = ln(b) – kt (linear form) (c) Murray Turoff 2000 46

Technology Progress Function as Substitution n n Made up of overlapping substitution curves n Vacuum tubes n Transistors n Integrated Circuits n Large Scale IC, etc. Curve is really an envelope of data points Large difference between R&D and product values at same time Need to understand underlying cause-effect relationships (c) Murray Turoff 2000 47

Extrapolation Exercise n n Find a useful IS data set with ten or more historical points. Draw this curve and extrapolate five years or more into the future either by hand or analytically Explain what the primary causes are of the trend and if there is any substitution processes taking place Explain a situation where it would be useful for a management decision (c) Murray Turoff 2000 48

Single Subjective Estimates n n n Personal judgment As good as data, models and information to back it up Expert Opinion As many examples of wrong ones as right ones by experts. Xerox, Video text, Picture Phone, X. 400 (c) Murray Turoff 2000 49

Some interesting forecasts n n 1953 IBM estimates market for only 50 computers in U. S. with IBM 650 1969 GE management claims BASIC is useless 1975 HP rejects idea of personal computer 1979 Tandy expects to sell only 4, 000 portable computers (c) Murray Turoff 2000 50

Group Subjective Estimates n n n If well structured can lead to more reliable results Normal committee approaches often suffer from biases Focus Groups and/or Delphi recommended (c) Murray Turoff 2000 51

Forecasting Delphi Round One n n Provide historical curve Ask for: n n n Future projection Assumptions used Uncertainties that would cause change if true Example: amount of sales of a product. Assumptions & uncertainties: Modifications, competitors actions, government policies, economic conditions, etc. (c) Murray Turoff 2000 52

Forecasting Delphi Round Two n Turn all into potential assumptions n n Ask for vote on validity: n n One persons assumption is another’s uncertainty Certain, Likely, Maybe, Unlikely, False Show 50 % spread of projections (c) Murray Turoff 2000 53

Forecasting Delphi Round Three n n n Show ordered assumption Focus on Maybe range Ask for modifications to original projection Ask for significance of impact Determine actions organization can take to force internal assumptions Determine measures of external assumptions (c) Murray Turoff 2000 54

Forecasting Delphi Round Four n n n Determine desirability and feasibility of actions Determine usability of measures Round five for significant disagreements (c) Murray Turoff 2000 55

Results of Trend Delphi n n A projection which might not differ from a regression analysis A collaborative model of the groups reasons (assumptions) for the projection A collaborative model of all the factors that could change the forecast A plan for: n n Trying to influence the outcome Monitoring for surprise changes from external sources (c) Murray Turoff 2000 56

Modeling Delphi of Steel Industry n Flow diagram by three experts 45 flow of material legs between different processes in the industry n Only 15 legs reported in yearly data n n 40 other experts (planners) asked to fill in missing data for prior year n n n Not asked to do anything else 25 decided to modify the model because they did not agree with it being the “best” model for them Modeling Delphis need more exploration (c) Murray Turoff 2000 57

Normative Approaches n n n Set objectives Work backwards from the future Build scenarios and models Reverse engineering Reverse of extrapolation approaches (c) Murray Turoff 2000 58

(c) Murray Turoff 2000 59

IS Issues Overview n n General background on IS Themes that underlie almost every area of IS management (c) Murray Turoff 2000 60

Negative impacts of computers I n n n Job displacement Job deskilling Increased specialization n n Decrease mobility Decreased authority Increased centralization Rigidity (lack of resiliency) Scapegoating (c) Murray Turoff 2000 61

Negative impacts of computers II n n n Efficiency rather than effectiveness Ends rather than means Unanticipated consequences n n n Inventory & message systems Over structuring and over qualifying Over expectation Privacy, monitoring and moral Not meant for mortals, Godhood (c) Murray Turoff 2000 62

Negative impacts of computers III n n n n Escape (drunkard’s paradox) Creating templates (prescriptive) Substitution of unreal for real Sub-optimization Prior bad decisions & experiences Status symbols Unfriendly Cold (c) Murray Turoff 2000 63

Typical conflicts in IS I n n n Centralization or decentralization Prescriptive or descriptive Effectiveness or efficiency Process, incentives or goals Development or purchase Outsourcing and contracting or in-house (c) Murray Turoff 2000 64

Typical conflicts in IS II n n n Privacy, security, and/or access Qualitative or quantitative Specialization or generalization Extrapolative or normative Planning IMS or MIS, MIS or DSS, IS or MIS (c) Murray Turoff 2000 65

Roots of MIS n n n n Well structured problems Central database Model of the firm Computer Science Information Science Operations Research General approach/DBMS (c) Murray Turoff 2000 66

Roots of DSS n n n n Unstructured problems Tailored data and models Management science Industrial engineering Each problem unique User centered approach Toolkits (c) Murray Turoff 2000 67

Centralization properties I n Overhead more obvious n n Distribute to users Subsidize application development Subsidize technology acquisition Share expensive resources n n n People, software Equipment, network Data models (c) Murray Turoff 2000 68

Centralization properties II n n n n More talent & sophistication Vulnerable to budget limits Concentrate authority & accountability Maintaining standards & guidelines Job security and advancement Recognition of need for innovation Communication problems with users Conflicting objectives with users (c) Murray Turoff 2000 69

Centralization n n Professional control Expert use Complex operations Reduced: n n n Hardware costs Expert costs Development costs Staff specialization Narrow central control (c) Murray Turoff 2000 70

Decentralization n n User control User responsiveness Simpler operation Reduced: n n n User costs Communication costs Data quality costs Staff generalization Broad lateral control (c) Murray Turoff 2000 71

Necessary Centralization n Databases for necessary data n n Communications n n Can be outsourced Standards and Policies Plans Evaluation (c) Murray Turoff 2000 72

Productivity Statistical study (Strassmann) n n n Hundred of companies 20 years For same industry n Low profitability companies n High investment in computers n Lower profitability n High profitability companies n High investment in computers n Higher profitability n n Solve people & organizational problems first Contrary to computer industry advice (c) Murray Turoff 2000 73

No Clear Relationship (Prior Result from extremes; need for more investigation) (c) Murray Turoff 2000 74

Performance specifications n n n IBM & Baltimore school system 2. 9 million for PC’s & software If after 2 years: First graders meet national average reading scores n IBM gets payment n If not sale negated n n n Never saw the results of this Suspect it might not have turned out well (c) Murray Turoff 2000 75

Averages vs. actual (c) Murray Turoff 2000 76

Clearly something going on Suspect technology investment Possible (c) Murray Turoff 2000 77

Successful IS policies I n n Link IS with business strategy Visible & active support from senior management Change culture & structure of organization Invest in people and their developments (c) Murray Turoff 2000 78

Successful IS policies II n n n Disciplined project management & accountability Multi disciplinary design teams Sound methods for monitoring and reviewing progress Emphasis on spreading benefits through organization Uniform methods for review & evaluation (c) Murray Turoff 2000 79

Counter productive effects n n Invasion of personal privacy Monitoring of work. n n Drunker’s paradox Quantity not quality Ergonomics ignored Training and guidance ignored (c) Murray Turoff 2000 80

Farmer's horse & tractor method I n New tractor: $50, 000 n n n Horse : $2000 n n n 450 hp for 10, 000 hours Running cost $20/hour Running cost $1/hours Productivity ratio: 450: 1 Tractor is worth: n 449 hp x 2, 000 horses = $898, 000 (c) Murray Turoff 2000 81

Farmer's horse & tractor method II n n n Operating advantage: n 450 horses x 10, 000 hours x $1/hour minus n 10, 000 hours x $20/hour equal $4, 300, 000 Total: $5, 198, 000 gain for only $50, 000 n When can you deposit the five million to pay off the loan? n Note lack of relationship to size and nature of farm Correct view: n Value of computer is what you are willing to pay for the results. (c) Murray Turoff 2000 82

IS observations n IS subject to overall situation n n n Profits, plans, atmosphere Culture, management style, moral No relationship between IS investment and business success No easy, standard way to measure payoff of IS Easy to manipulate results of IS IS costs migrate to hidden areas (c) Murray Turoff 2000 83

Cost of workstation example n n n n n Hardware cost Total yearly cost 4 year life Time to learn Info support from others Software Formal training Mainframe use Corporate support $10, 000 $23, 500 10. 3% 27. 4% * 18. 3% * 7. 6% 5. 3% 1. 5% 29. 7% * n 75% may be hidden cost (*) (c) Murray Turoff 2000 84

Turoff’s Cycle Model n n No Maturity ever reached (Nolan Model) No constant state (Cash Model) Explains CIO job tenure (~5 -7 years) Minimum Mistakes Darwin process (c) Murray Turoff 2000 85

Management Historical cycle I n n n n Risk taker brought in as CIO New technology investment Encourage applications Gain competitive edge Effectiveness emphasis Cost growth and runaway Power acquisition by IS n Fire CIO (c) Murray Turoff 2000 86

Management Historical cycle II n n n n Risk avoider brought in as CIO Cost control instituted Efficiency emphasis Inhibit innovation Limit new applications/technology Loss of competitive edge n Fire CIO Pragmatic view of management n No excuse for failure n The end result determines managers capabilities Return to prior cycle (c) Murray Turoff 2000 87

Real management alternatives n n n Dead end investments in hardware or modular systems development Assembly line or job enrichment? Hidden cost or realistic life cycle costs? Organizational dinosaur or beyond centralization/decentralization? Invasion of new technology or socio-technical design? Occupational obsolescence or new concepts of work and job? (c) Murray Turoff 2000 88

(c) Murray Turoff 2000 89

Historical IS Background (c) Murray Turoff 2000 90

Early IS images n n n Priest & wisdom Ritual & language Shrines & temples Cures & salvation Omnipotent Beyond mortal understanding (c) Murray Turoff 2000 91

Computer system fallacies n n n n n Usage as acceptance Automation Black boxing Centralization Performance maximization Cost minimization Efficiency Descriptive only Reductionism Scientific & logical (c) Murray Turoff 2000 92

Human impression fallacies n What the computer says is always true n n n Garbage in is garbage out The computer is too complicated to understand We are only automating what you are doing now We cannot change the way the computer does it It is the computers fault not ours Drunkard’s paradox (c) Murray Turoff 2000 93

IS prior determinants n n Structured tasks Handling “necessary” data n n n What is the value of necessary data? Cost minimizing Expensive hardware Cheap people Automating Organizational support (c) Murray Turoff 2000 94

IS new determinants n n n n n Expensive people Cheap hardware Performance maximization New uses Handling unnecessary data with finite value. Handling subjective data Individual support Unstructured tasks Communications (c) Murray Turoff 2000 95

Knowledge areas related to IS I n n n n Computer Science Information Science Management Science Operations Research Industrial Engineering Communication Science (media) Electrical engineering (c) Murray Turoff 2000 96

Knowledge areas related to IS II n n n n Economics Psychology Sociology Anthropology English Cybernetics Systems Science Mathematics (c) Murray Turoff 2000 97

Changes past, present, & future n n n Work in a home office Robots to do housework Robots to eliminate assembly line jobs Take a college course from home Having a computer diagnose your illness Have a computer operate on you Purchase food, home, car through the computer Banking and investment through the computer Love and friendship through a computer Wear a computer Use a personal avatar to represent you (c) Murray Turoff 2000 98

Impressions of computers n n n Smart stupid Friendly unfriendly Forgiving unforgiving Controlled uncontrolled Easy to use hard to use Easy to change hard to change (c) Murray Turoff 2000 99

Atmosphere n Human n n Slow Sloppy Forgetful Brilliant Computer Rapid Rigorous Precise Stupid How to design a communication between the two? (c) Murray Turoff 2000 100

Information domains of users I n Common IS support levels n n Simple inquiry, calculations, messaging Organizing, filtering, summarizing Status briefing, report generation Tracking, monitoring (c) Murray Turoff 2000 101

Information domains of users II n Current individual challenges n n n n Exception reporting Modeling, structuring, relating Searching, retrieval Diagnosis Discovery Hypothesis testing and analysis Current group challenges n n n Planning and decision analysis Decision implementation Command control (c) Murray Turoff 2000 102

Industry shifts I n n Information & publishing going electronic Computers doing & offering communications Communications & broadcasting offering computer & information services Financial institutions offering computer and communication service (c) Murray Turoff 2000 103

Industry shifts II n n n Communications offering financial services Education increasingly offered by industry Lines blurring between Information, Publishing, Computers, Communications, Broadcasting, Finance & Investment, Education, Training, Retailing, Services, Brokering (c) Murray Turoff 2000 104

E Commerce Integration I n n Offer opportunities Classified ads n n n Negotiate exchanges Communications n n n Newspapers Broadcasters Publishers Phone companies Mails Contract & liability n Legal services (c) Murray Turoff 2000 105

E Commerce Integration II n Clear funds n n n Tax analysis Accounting n n CPA firms Regulatory factors: n n n Banking Federal reserve board Federal communications commission Congress, state legislator State regulatory bodies, courts Web/E Money is key (c) Murray Turoff 2000 106

Relative cost changes n n n People more than hardware Paper more than electronic storage Communications more than computers Changing data more than fixed data Regulation & policies can delay economic driven change but not prevent it in a world economy n Example: Look at recent history of phone companies (c) Murray Turoff 2000 107

Technology evolution I n n n n Large machines Batch operation Multi-programming Language development Time sharing Mini-computers User oriented languages Computer networks (c) Murray Turoff 2000 108

Technology evolution II n n n n n Distributed systems Personal computers User developed systems Expert systems Case methodology Networking users & systems Workstation technology Multi-media Personal Networks (c) Murray Turoff 2000 109

Application evolution n n n Administrative applications Report systems Data bases MIS & DSS Simulation & modeling AI & expert systems Office automation Networks Groupware Toolkits Operating system interfaces (GUI) Structural modeling (c) Murray Turoff 2000 110

Major application examples n n n n Payroll systems Inventory systems Linear programming Critical path scheduling Manufacturing processing & control Statistical analysis (e. g. marketing) Transaction processing systems The Web & Communications (c) Murray Turoff 2000 111

Costs 1960's n n n n Hardware 90% People 10% Make software Free systems Centralization Utilities Application development (c) Murray Turoff 2000 112

Costs 1970's n n n Cost minimization Application justification Centralization data collection Top down system design Promise of IS to control operations (c) Murray Turoff 2000 113

Costs 1980's n n n n Hardware 10% People 90% Buy software Office automation Decentralization End user computing Get rid of IS empire Reduce explicit costs (c) Murray Turoff 2000 114

Costs 1990's n n n n Hardware and software 20% People 40% Information 40% Tailor software Value of information Balance of functions Data & communications Cognitive variability (c) Murray Turoff 2000 115

Costs Future n n n Hardware and software 20% People 60% Information 20% Creation and organization of information Decline of fixed data in value Collective intelligence abilities (c) Murray Turoff 2000 116

Typical Evolution I n n Expansion n Under utilization n Do everything Cost cutting n Control n Political reactions Maturity n End user computing n Steering committees Strategic n Toolboxes n Tied to corporate goals n Distributed systems n Communications (c) Murray Turoff 2000 117

IS Management Issues n n n n n Remote work Work at home Lateral project groups Multiple work roles Standards & policies Quality measurement Prototyping Evaluation Evolution User involvement (c) Murray Turoff 2000 118

Factors generating IS demand I n n n n Rapid evolution of technology Penetration to end users Multitude of alternatives Changing skill levels Quantification of office functions Fragmented organizational responsibilities Psychological and social impacts (c) Murray Turoff 2000 119

Factors generating IS demand n n n Environmental constraints Time, travel, costs Information as a commodity More complexity Dispersion of operations Social pressures (c) Murray Turoff 2000 120

Individual level considerations n n n Decision accountability Remote work Specialization/generalization Skills & learning Alienation/connectiveness Superconnectivity & Information Overload (c) Murray Turoff 2000 121

Problem areas I n Privacy n n n n Tracking of individuals Diverse sources of data Detection of values Value of a name Job displacement Specialization Ownership of information n Copyrights Protectionism Proprietary (c) Murray Turoff 2000 122

Problem areas II n Overlapping industries n n n Complexity of systems n n n EFT, social security IRS, FBI, Census Size of system n n n Computers Information (publishing) Communication Financial Integration, decomposition Automation Training (c) Murray Turoff 2000 123

Areas of concern n n Public understanding Education Information rights Industry structure Rate of change (c) Murray Turoff 2000 124

Trends of concern n n n Specialization Centralization Measurement Mobility Reductionism Sub-optimization (c) Murray Turoff 2000 125

Understanding the art of computing n n n Reducing a single complex problem to a large number of simple problems Inconsistent with process, incentive and goal orientations Inconsistent with understanding users and organizations (c) Murray Turoff 2000 126

Environmental Factors I n n n Future trends in computer & communications technology Shortening time intervals for change Complexity of problems Increasing information based work force Attitude of younger generations (c) Murray Turoff 2000 127

Environmental Factors II n n n Costs of people & services Increasing relative costs of energy Networking as a social technology The underground economy Personal computing and bulletin board systems (c) Murray Turoff 2000 128

Current Management Wisdom I n n n Centralized core DP staff Separate systems analyses Separate maintenance User groups & involvement Application programmers Evolutionary design (c) Murray Turoff 2000 129

Current Management Wisdom II n n n n Distributed equipment Feedback approaches Steering committees Networks & End user computing Strategic & operational systems Standards & integration Evaluation & evolution (c) Murray Turoff 2000 130

THE END CIS 679 Management Information Systems Introduction and Issues The first set http: //eies. njit. edu/~turoff@adm. njit. edu (c) Murray Turoff 2000 131