ITAB 2100

IT APPLICATION TOOLS IN BUSINESS

Organizing Information
Technology Resources
 ISs
Architecture
and
Management
 Information System
Architecture and Management
IS Infrastructure refers to the IS resources that an
organization owns: hardware, software,
telecommunications devices and lines, and other
IS assets.
IS Architecture refers to the manner in which
these assets are deployed and attached and the
ways they interact with each other.
 Information System
Architecture and Management
Centralized Information Decentralized Information
Systems Architecture Systems Architecture
Allows departments and remote sites a
large degree of independence in
Information resources are organizing and utilizing their
maintained on one or information systems.
several large computers In decentralized IS architecture, workers at
that are centrally different sites and department use
information resources that are
controlled. dedicated to their site or department.
 Information Systems
Architecture and Management
Distributed Information Systems
A computer service that runs at a single
central location is more likely to
become unavailable than a service
distributed to many sites.
 Information Systems
Architecture and Management
Distributed Information Systems
An organization can enjoy the benefits of both
decentralized and centralized architectures.
Each unit of enjoys sufficient independence in selecting
and implementing its own system to optimize its
operation, but it can also share resources remotely
with other unit through communications lines.
 Centralized vs. Decentralized ISs:
Advantages and Disadvantages
Advantage of Centralized IS Advantage of Decentralized IS
Management Management
Standardized hardware and Software • Better fit of ISs to Business needs
Easier training • Timely response of IS units to
Common Reporting Systems business demands
Effective Planning of Shared Systems • End user development of application
• Innovative use of ISs
Easier Strategic Planning
• Support for delegation of Authority
Efficient Use of IS Personnel
Tighter Control by top Management
 Organizing the IS Staff
Two extremes of organizing IS professionals
In central IS organization there is
a corporate IS team to whom all
units turn with there is needs.
A centrally organized IS
department has what we will call
an IS director.
 Organizing the IS Staff
In functional IS organization there is
a separate team for each business
unit. Each business unit has one or
several IS professionals who report
to the units manager. These workers
known their non-IS colleagues’ daily
operations well and understand their
information needs better than central
IS personnel do.
 Challenge for Information Systems
Managers and Line Managers
Line Managers’ Expectations of an IS Unit
• A broad understanding of the business activities
• Rapid response to the information needs of the business unit
• A clear, jargon-free explanation of what the technology can and
cannot do for the business unit
• Candid explanations of what information systems can and
cannot do
• Honest budgeting
• Single point of contact
 Challenge for Information Systems
Managers and Line Managers
IS Managers’ Expectations of Line Managers

• Business planning
• System planning
• Systems selection or development
 Information Center
Users of IT in all organization need professional
help with hardware, software, and
telecommunications on their daily work. To satisfy
this needs, organizations often establish a separate
organizational unit for support. The unit may have
many different names, but we refer to it by the
most common one: the Information Center.
 Information Center
Coordination and Control
One way to allow sufficient local independence in IS
acquisition and use, while controlling the problems it can
create, is to coordinate and control hardware and software
purchases by end users through an information center.
Central coordination and control is especially a challenge
when an organization is involved in mergers and acquisitions.
 Information Center
Support
Another important function of the information center is
providing hardware and software support through both
training and responding to ongoing request for help.
The help desk usually consists of small team specializing
in troubleshooting problems in different areas:
hardware, software, communications, and so on.
 Charge-Back Methods
Some companies treat the cost of the IS
function as a part of overhead cost.
A charge-back system is a method by
which organizational units pay for the
services they receive, often referred to
as service charges.
 Charge-Back Methods
Service Charges
Without a charge-back system, politics
often prevail as the controlling factor
in who receive IS services.
 Charge-Back Methods
What is Chargeable?
•Personnel hours
•Computer Time
•External Storage Space
•Number of Input and Output Operations
•Paper Output
 Charge-Back Methods
Desirable Charge-Back Features
• Accountability
• Controllability
• Timeliness
• Congruence with Organizational Goals
 Charge-Back Methods
Overhead Expenditures
Some IS departments expenses—such as
research and development, and corporate
wide data communications installation and
maintenance—cannot be directly attributed
to the services the IS department performs
for business units.
 Careers in Information
Systems
•The Systems Analyst
•Involved in designing new ISs and in updating and
maintaining existing ISs.
•Big part of the job includes developing alternative
system plans based on:1. analyzing system
requirements provided by user input, 2.
documenting development efforts and system
features, and 3. providing adequate specifications
for programmers to write code.
 Careers in Information
Systems
•The Database Administrator
•is the officer responsible for the databases and
data warehouses of an organization – a very
sensitive and powerful position.
•The Telecommunications Manager
•is responsible for the acquisition, implementation,
management, maintenance, and troubleshooting
of computer networks throughout the
organization.
 Careers in Information
Systems
•The Webmaster
•is responsible for creating and maintaining the organization’s
Web site and its intranet’s and extranet’s pages. Professional
webmasters must understand not only Web technologies (such
as HTML, XML, and CGIs) but business strategy and security
schemes as well.
•The CIO
•is responsible for all aspects of an organization’s ISs, is often,
but not always, a corporate vice-president. In a centralized IS
organization, the CIO supervises all IS professionals.
 Careers in Information
Systems
•The Chief Knowledge officer
•is responsible for coping with the daunting challenge
of accumulating, organizing, and retrieving knowledge.
•The Independent Consultant
References
Oz, Effy: Management Information Systems Third edition, Thomson Learning Center, 5 Shenton
Way UIC Building, Singapore 2002.