Using MIS 10 th Edition Chapter 11 Information

Using MIS 10 th Edition Chapter 11 Information Systems Management Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -1

"Outsourcing the development of a strategic application seems risky. " • Team discuss outsourcing ARES development to India. • Raj’s friend in India (Sandeep) is a developer. • Successfully developed C# app for him. • Risks: What if he doesn’t finish? Takes code? Loses interest? • Will cost 4 to 6 times as much to develop in US. • Bite the bullet and hire own programmers. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -2

Study Questions Q 11 -1 What are the functions and organization of the IS department? Q 11 -2 How do organizations plan the use of IS? Q 11 -3 What are the advantages and disadvantages of outsourcing? Q 11 -4 What are your user rights and responsibilities? Q 11 -5 2027? Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -3

The Major Functions of the IS Department Q 11 -1 What are the functions and organization of the IS department? • Plan use of IS to accomplish organizational goals and strategy. • Manage outsourcing relationships. • Protect information assets. • Develop, operate, maintain computing infrastructure. • Develop, operate, maintain applications. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -4

How Is the IS Department Organized? Q 11 -1 What are the functions and organization of the IS department? Figure 11 -1 Typical Senior-Level Reporting Relationships Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -5

What IS-Related Job Positions Exist? Q 11 -1 What are the functions and organization of the IS department? Title Responsibilities Business analyst, IT Work with business leaders and planners to develop processes and systems that implement business strategy and goals. Knowledge, Skill, and Characteristics Requirements Knowledge of business planning, strategy, process management, and technology. Can deal with complexity. See big picture but work with details. Strong interpersonal and communications skills needed. Systems analyst Work with users to determine system Strong interpersonal and communications requirements, design and develop skills. Knowledge of both business and job descriptions and procedures, help technology. Adaptable. determine system test plans. Programmer Design and write computer programs. Logical thinking and design skills, knowledge of one or more programming languages. Test QA engineer Develop test plans, design and write automated test scripts, perform testing. Logical thinking, basic programming, superb organizational skills, eye for detail. Figure 11 -2 Job Positions in the Information Systems Industry Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -6

What IS-Related Job Positions Exist? (cont’d) Q 11 -1 What are the functions and organization of the IS department? Title Responsibilities Knowledge, Skill, and Characteristics Requirements Technical writer Write program documentation, help text, procedures, job descriptions, training materials. Quick learner, clear writing skills, high verbal communications skills. Tech support engineer Help users solve problems, provide training. Communications and people skills. Product knowledge. Patience. Network administrator Monitor, maintain, fix, and tune computer networks. Diagnostic skills, in-depth knowledge of communications technologies and products. Consultant, IT Wide range of activities: programming, testing, database design, communications and networks, project management, security and risk management, social media, strategic planning. Quick learner, entrepreneurial attitude, communication and people skills. Respond well to pressure. Particular knowledge depends on work. Figure 11 -2 Job Positions in the Information Systems Industry Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -7

What IS-Related Job Positions Exist? (cont’d) Q 11 -1 What are the functions and organization of the IS department? Title Responsibilities Knowledge, Skill, and Characteristics Requirements Technical sales Sell software, network, communications, and consulting services. Quick learner, knowledge of product, superb professional sales skills. Project manager, IT Initiate, plan, manage, monitor, and close down projects. Management and people skills, technology knowledge. Highly organized. Manager, IT Manage teams of technical workers and manage the implementation of new systems. Management and people skills, critical thinking, very strong. �atabase D administrator Manage and protect database. Diplomatic skills, database technology knowledge. Figure 11 -2 Job Positions in the Information Systems Industry Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -8

What IS-Related Job Positions Exist? (cont’d) Q 11 -1 What are the functions and organization of the IS department? Title Responsibilities Knowledge, Skill, and Characteristics Requirements Business intelligence analyst Collaborate with cross-functional teams on projects, analyze organizational data. Excellent analytical, presentation, collaboration, database, and decisionmaking skills. Chief technology officer (CTO) Advise CIO, executive group, and project managers on emerging technologies. Quick learner, good communications skills, business background, deep knowledge of IT. Chief information officer (CIO) Manage IT departments, communicate with executive staff on IT- and IS-related matters. Member of the executive group. Superb management skills, deep knowledge of business and technology, and good business judgment. Good communicator. Balanced and unflappable. Chief information security officer (CISO) Manage IS security program, protect the organization’s information systems and information, manage IS security personnel. Deep knowledge of security threats, protections, and emerging security threat trends. Excellent communication and diplomacy skills. Good manager. Figure 11 -2 Job Positions in the Information Systems Industry Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -9

Salaries for Information Systems Jobs Q 11 -1 What are the functions and organization of the IS department? Figure 11 -3 Salaries for Information Systems Jobs Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -10

Planning the Use of IS/IT Q 11 -2 How do organizations plan the use of IS? Figure 11 -4 Planning the Use of IS/IT Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -11

Managing the IS Department So What? • Know factors driving IS standards and policies. • Know user responsibilities and organization of your future profession. • Help guide employees IS-related behavior. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -12

Training Your Replacement Ethics Guide • Scott must cut his team of software developers by 75 percent. • They are going to be replaced with new outsourced employees— working on the other side of the planet. • Employees who are being released will train the new outsourced employees. • Training the replacements will be a condition of departing employees’ severance package. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -13

Training Your Replacement (cont’d) Ethics Guide • How is it fair to ask someone to train the person taking his or her job? • Scott wondered how long it would be before he was training his own replacement. • Do you think that forcing an employee to train his or her replacement is ethical according to the categorical imperative? The utilitarian perspective? Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -14

What is Outsourcing? Q 11 -3 What are the advantages and disadvantages of outsourcing? • Process of hiring another organization to perform services. – Save costs, gain expertise. – Save direct/indirect management time and attention. • Any value chain business activity can be outsourced. • “Your back room is someone else’s front room. ” (Drucker) Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -15

Popular Reasons for Outsourcing IS Services Q 11 -3 What are the advantages and disadvantages of outsourcing? Figure 11 -5 Popular Reasons for Outsourcing IS Services Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -16

Top-10 Highest-Paid Tech Skills Q 11 -3 What are the advantages and disadvantages of outsourcing? Rank Skill or Experience Salary 2015 2014 2013 2012 HANA (High Performance Analytical Appliance) $ 154, 749 1 - - - Cassandra $ 147, 811 2 2 5 - Cloudera $ 142, 835 3 4 19 - Paa. S (Platform as a Service) $ 140, 894 4 1 - - Open. Stack $ 138, 579 5 20 14 - Cloud. Stack $ 138, 095 6 23 - - Chef $ 136, 850 7 8 - - Pig $ 132, 850 8 6 7 - Map. Reduce $ 131, 563 9 3 3 - Puppet $ 131, 121 10 12 24 - Figure 11 -6 Top-10 Tech Skills Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -17

Risk Reduction Q 11 -3 What are the advantages and disadvantages of outsourcing? • Caps financial risk. • Ensures quality or avoids substandard quality. • Less likely to pick wrong hardware, software, network protocol, or implement tax law changes incorrectly. • Vendor’s responsible for managing risks. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -18

International Outsourcing Q 11 -3 What are the advantages and disadvantages of outsourcing? • India – Large, well-educated, English-speaking, labor cost 70 -80% less than US. • China and other countries, too. • Modern telephone technology and Internetenabled service databases. • Customer support and other functions operational 24/7. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -19

IS/IT Outsourcing Alternatives Q 11 -3 What are the advantages and disadvantages of outsourcing? Figure 11 -7 IS/IT Outsourcing Alternatives Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -20

What Are the Risks of Outsourcing? Q 11 -3 What are the advantages and disadvantages of outsourcing? Figure 11 -8 Outsourcing Risks Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -21

Benefits Outweighed by Long-Term Costs Q 11 -3 What are the advantages and disadvantages of outsourcing? • Dangers – Unit fixed cost contract prevents economies of scale. – Vendor de facto sole source. – Changing pricing strategy. – No easy exit (tightly integrated vendor). – Difficult to know if vendor well managed. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -22

Q 4: What are Your IS Rights and Responsibilities? Q 11 -4 What are your user rights and responsibilities? Figure 11 -9 User Information Systems Rights and Responsibilities Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -23

Information Systems Management in 2027 Q 11 -5 2027? • Internal hardware infrastructure moved to the cloud. • Ubiquitous mobile devices at work. • BYOD policies meet employer needs and strategies. • Use of social media in true Enterprise 2. 0 style. • Social media support project management. • Io. T provides opportunity for innovation within company. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -24

Information Systems Management in 2027 (cont’d) Q 11 -5 2027? • IS departments lose control of devices. • IS department cultural change. – CIO full-fledged member of executive suite. – Key player for gaining competitive advantage. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -25

Watching The Watchers Security Guide • What would you be willing to do to get $14. 3 million? • The director of information security for the state of Iowa lottery installed a rootkit on the computer that chooses the winning numbers. • Bought winning tickets in advance. • Wiped hard drives to destroy evidence. • Audits and better access control might have prevented theft. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -26

Watching The Watchers (cont’d) Security Guide • IT security workers often manage and have access to log files. • IT security workers have the access, opportunity, and skill to potentially tamper with these log files. • Other strategies include: – Ensure that employees understand what behaviors are permitted – Separation of knowledge and duties – External monitoring Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -27

Senior Data Analyst Career Guide Chris Treasure at Boncom Q. What attracted you to this field? A. “Data is an amazing journey. You can begin with an unstructured mess of numbers that has no meaning. By taking steps to clean and enrich that data, it can lead to findings that have real power. ” Q. What advice would you give to someone who is considering working in your field? A. “Study subjects related to data, take steps to understand business, and become an effective communicator. Look for opportunities to learn from others. Gaining experience with tools and real data sets can be difficult, but an internship can be an opportunity to do both. ” Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -28

Active Review Q 11 -1 What are the functions and organization of the IS department? Q 11 -2 How do organizations plan the use of IS? Q 11 -3 What are the advantages and disadvantages of outsourcing? Q 11 -4 What are your user rights and responsibilities? Q 11 -5 2027? Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -29

Automating Labor Case Study 11 • Mc. Donald’s former CEO Ed Rensia stated that a single $35, 000 robotic worker would cost less and be more productive than a $15 -an-hour human worker. – The hamburger-making robot can make 400 burgers per hour, every hour, without a break. – It can completely replace three human fast-food workers. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -30

Automating Labor (cont’d) Case Study 11 • In 2016, Foxconn (supplier to Apple) replaced 60, 000 factory workers with robots. • Airbus is going to use HRP-2 and HRP-4 humanoid robots to assemble its airplanes. • Amazon. com is using 30, 000 Kiva robots at 13 fulfillment centers to help process customer orders. Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -31

Automated Versus Human Labor Case Study 11 Benefits of Automated Labor Benefits of Human Labor 1. No healthcare expenses. 1. Unique problem solving 2. No time off, breaks, sick days, or vacations. 2. Create new products 3. No accidents, injuries, workman’s compensation claims. 3. Adaptable to rapidly changing environment 4. No unions, arguments, complaints, bad attitudes, layoffs, severance packages. 4. Integrative systems thinking 5. No smoke breaks, drinking on the job, sexual harassment, lawsuits. 5. Question poorly made decisions 6. No minimum wage, raises, or paychecks. 6. Prior experience to predict future events 7. Work 24 hours a day, 365 days a year. 7. Ethical decision making (hopefully) 8. More safe, accurate, and consistent work than humans. 8. Interact well with humans (i. e. sales) Figure 11. 10 Automated Versus Human Labor Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -32

Automating Labor (cont’d) Case Study 11 • By 2025, nearly 100 million workers may be taken out of the current labor force (146 million workers). – Robots will have IQs higher than 90 percent of the U. S. population. • They will likely take jobs that involve routine physical and mental tasks. • How might the automation of labor provide a competitive advantage forward-looking companies? Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved 11 -33