ITM Lecture 8

INFORMATICS Information Technology Management
Information Technology Management

Unit 19: The IT Department
Lecture 8
19th July 2006
ITM Lecture 8 ITM Lecture 8

Advanced Diploma (Thames College) 1 Advanced Diploma (Thames College) 2
Functions of IT Department Systems Development

z Systems Development z The purpose of the systems development
z Operations function is to develop new applications
z Equipment Operations and to maintain existing ones.
z Production Support
z The systems developer has to analyze the
z Technical Support
application area, determine its
z End-User services
requirements, and design and program the
z Systems Programming
z Database Administration
actual computer-based information system.

Operations Equipment Operations
z There is much less abstraction involved when z Equipment operations means running the machine
organizing the operational function for a and its peripheral equipment, keeping the printer
data-processing installation. supplied with paper, mounting magnetic tape onto
magnetic tape drives, and monitoring the
z The computer and associated machines must computer's console.
be fun, and someone must schedule this; z In most installations data preparation is also one of
essentially, that is the mission of operations. the responsibilities of operations.
z Equipment Operations z Since computer operations often run two or three
z Production Support shifts, organization into these shifts is a key feature.
Production Support Technical Support

z Production support schedules the running z This part of a computer center is meant to
of the computer center and controls jobs support both systems development and
(programs) in terms of priorities, based operations functions.
upon when output is required. z Technical support is divided into these key
z In these respects, the manager of areas:
computer operations will be implementing z End-User Services
the policies set by the data processing z Systems Programming
installation manager. z Database Administration

End-User Services Systems Programming
z Personnel in this group help users gain z Here personnel install the computer's
access to computer-center facilities, operating system, tailor it and maintain it,
conduct training courses, and troubleshoot and improve the efficiency of application
when users have problems with their programs.
computer support.

Database Administration The Information Center Approach

z The skill of setting up and administering the z It is necessary to The most common approach
organization's data base falls to this group. to the management of End User Computing
(EUC) is the Information Center (IC) which
z It is multifaceted assignment, which includes
formalize the support to be provided by users.
establishing the logical data requirements of the
z The IC is a unit within the IT Department
enterprise; setting up the data base; controlling
which is specifically responsible for the EUC
security and providing backup to the data; and support.
helping the systems development staff use the z By providing dedicated support personnel with
data in designing computer-based information a separate budget, focused attention is ensured.
systems.
Roles of an Information Center Roles of an Information Center -
Advice and Consultancy
z Advice and Consultancy z Many IC are set up like a typical computer store.
z A user talk to the center consultant about computing
z Training needs, a product manager may also be involved if the
hardware or software requirements of the user go
z Procurement beyond the consultant's expertise.
z Define Standards z Many IC run a hotline service to help end-users with
problems once an application is up and running.
z Some centers will audit end-user applications on a
regular basis to ensure that they are working the way
they are supposed to.

Roles of an Information Center - Roles of an Information Center -

Training Procurement
z Many end-users needing knowledge about z Since the user or department will often acquire the computing
resources from its own budget, and not that of the MIS
computer technology to do their jobs more department the center has little control over the final choices
effectively, training has become a major priority - made by the user.
and a major expenses. z Freedom of selection notwithstanding, the user must take into
account the fact that the center can, realistically, support only a
z IC training can be provided on an individual,
finite number of products.
department wide, or company-wide basis. z If the center supports only Microsoft Office, and the user wants
z Training may be directed to a specific need or a Next Office, the user must bear complete responsibility for
specific application (such as training the purchasing training, advising, and dealing with any problems that might later
arise.
department to use Excel to store and access
z It would be desirable for the IC to be part of the evaluation
purchasing records) committee for the acquisition of EUC products.
Roles of an Information Center - Advantages and Disadvantages
Define Standards
z The Information Center should evaluate z The IC approach enables users to retain the autonomy
to care for their own needs. Most end-users operate
user needs and arrive at a set of packaged under normal budgetary constraints and are motivated
software for each type of EUC processing. to spend funds wisely. If properly managed, the IC
provides some control over the unbridled proliferation
of end-user systems.
z Some users may resent not having the complete
freedom to buy nay kind of software or hardware as
they see it. There will be some conflict of interests
between the objectives of the Information Centre and
those of any individual user.
The Emergence of the CIO Responsibilities of the CIO

z The Chief Information Officers (CIO) is a z The Chief Information Officer (CIO) is
senior manager who takes part in business the top executive in charge of information
strategy formulation and who can ensure that technology and its usage.
the information strategy fits into and
z The main responsibilities of the CIO are
complements the overall business strategy.
described below :
z This is reflective of the growing recognition
z StrategicUse of IT
of the importance of information in the
z Information Management
pursuit of the company's strategic goals.
z Traditional Management Functions
Responsibilities of the CIO - Responsibilities of the CIO -
Strategic Use of IT Information Management
z The CIO must identify ways in which z Information is an important resource and
information and information technology especially so in organizations which are
are able to support the company's strategic information intensive.
plans. z The management of information flows,
z This can include supporting a particular processing and presentation is an
business activity, to actually developing a important responsibility of the CIO.
new information-based product for
customers.
Responsibilities of the CIO - Information Technology Management

Traditional Management Functions
z The usual management functions are also the
responsibilities of the CIO. Unit 20: Information System
z These include budgeting and staffing of the
IT department.
Planning
z There will always be competing demands on
the IT resources and the CIO must establish
the priorities of the IT staff and allocate
resources to areas that are more important.
What is an Information Systems Information Systems Planning (ISP)
Planning (ISP)?
z With the advent of strategic systems, information z The long term-term planning for computerized information
systems planning took on new dimensions and required systems in order to meet corporate objectives.
new linkages with corporate strategic planning. z Cater for different corporate objectives, from introducing word
processing and other office automation products, to supporting
z Mangers have had to become aware that uses of competitive measure to win greater market share.
computers can have significant effects on their
organization's competitive position, and that
information systems planning needs to be coupled
more closely with the goals of the organization.
z In fact, information systems planning, or lack of it, can
now affect business plans.
Contents of an ISP Contents of an ISP –

Corporate Strategy
z The Information Systems Plan (ISP) will z The main points of the corporate strategy
typically contain the following sections: over the next 5 years will be outlined.
z Corporate Strategy z These will be broken down into specific
z Information Requirements corporate actions which may or may not
z Current IT Installation be an opportunity for IT involvement.
z IT Action Plan

Contents of an ISP - Contents of an ISP -
Information Requirements Current IT Installation
z Future information needs of the z The existing IT hardware, software and
organization will be described here. communications platforms will be
z This will be based on the corporate described here. In addition, the existing
strategy and other organizational staff and skill levels should also be
developments (e.g. expected merger or included.
acquisitions).

Contents of an ISP - Applications Backlog

IT Action Plan
z This section describes the overall vision of z Each project have been initiated with a project
request.
how IT systems would look like in 3 years
z IT Steering Committee decides which projects are to
time. be approved.
z It also prescribes yearly targets to move z At any one time, certain applications development
the IT setup towards the goal. projects would have been completed, others would
be on-going while the rest would not have started yet.
z These in turn will be translated into
z The applications portfolio or project portfolio is the
specific projects and actions. list of all application projects that are in the approved
plan for next year, plus ongoing projects.
Applications Backlog (cont’) Information Technology Management
z Some companies practice a yearly evaluation of
project requests to decide, give the limited
resources and the corporate strategic objectives, Unit 21: Project Management
which projects will proceed in the following
year.
z To assist in the decision-making, the cost-
justification is performed with financial ratios
like payback and Return on Investment (ROI)
being used to assist in the ranking.
Tasks in Project Management Tasks in Project Management -

Identification of Tasks
z Managing an IT project encompasses z All the tasks and deliverables must be
many tasks: identified at a relatively high level of detail.
z Identification of Tasks z It is not enough to simply identify the
z Estimation phases of the life cycle.
z Allocation of Resources
z Scheduling
z Monitoring

Tasks in Project Management - Tasks in Project Management -
Estimation Allocation of Resources
z Each of the above tasks must be estimated zA project team will comprise personnel
for effort and elapsed time. with different skills and experience.
z The total of the effort estimations is the z The right person must be allocated the
required budget. right task.

Tasks in Project Management - Tasks in Project Management -

Scheduling Monitoring
z Scheduling involves setting up a project z Work actually done and
timetable which shows when the various targets achieved must be
activities must take place. compared against the
z Gantt charts are commonly used to show such project plan.
activities.
z This will determine if the
project is on schedule or
if it is slipping behind.

Problems in Systems Projects Problems in Systems Projects -
Project Delays
z Systems development and implementation projects z Thisis a common problem and is due to
are seldom smooth sailing. either an over-optimistic estimation of
z As with projects in other industries or disciplines,
work (or perhaps where estimation was
project sponsors, leaders and team members often
encounter difficulties in their projects.
not even done), or lack of anticipation of
z What are some of the problems or challenges?
problems.
z Project Delays
z Cost Overruns
z Not Meeting Requirements

Problems in Systems Projects - Problems in Systems Projects –

Cost Overruns Not Meeting Requirements
z Projects often seem to cost more than expected z Inmany cases, when the finished system
z This is particularly so in in-house development product is shown to the user, the latter
projects. says: "That's not what I asked for".
z There are a variety of reasons for this.
z Some of them are that there may not be a
proper change control procedure, and that many
hidden costs are not factored into the original
cost calculations.

Challenges in Systems Projects Challenges in Systems Projects -
Meeting Quality Requirements
z The most obvious aim of any systems project is to z It is sometimes difficult to write quality requirements but
ensure that the functional requirements are met. important to do so.
z If the system does not even support the business, then z If we don't know how to state our vision of a high quality
it is of little use. product, how can we communicate this to the systems
developers?
z If we were to go beyond mere functional compliance,
z Similarly, systems developers face the challenge of
there are certain qualities or characteristics of systems
improving the systems that they develop in the area of
that would set it apart as an excellent system.
quality and performance.
z What are some of the challenges? z With increasing choices available to users, developers must
z Meeting Quality Requirements work hard to differentiate their product from others.
z Strategic Use of Information Technology
Challenges in Systems Projects – Importance of User Participation

Strategic Use of Information Technology
z Organizations must learn to use z As many employees as possible should be involved at the
planning stage of a new information system.
Information Technology in unique and z During implementation, all employees, and particularly
strategic ways. those who are directly involved, should be kept fully
informed.
z Instead of just automating labor-intensive
z Every individual will want to know how their particular job
work, IT should be used to change the way would be affected.
business is done and thereby win z The champion (usually the manager who initiated the
competitive advantage. project) should enthusiastically support it and give strong
and clear leadership during the planning and
implementation stages.
Organizational Factors Organizational Factors –
Type of Business
z Systems development does not occur in z Differentindustries have their own
isolation. It takes place in an organizational characteristics and style of working which
setting. may have varying types of impact on
z What are some of the organizational factors systems development projects.
which affect system development?
z For example, work in a hospital environment
z Type of Business
tends to be very different from that in
z Corporate Culture
advertisement.
z Organizational Structure
z The Staff or Departments Affected

Organizational Factors - Organizational Factors -

Corporate Culture Organizational Structure
z Within a particular firm, there may be a z Organizations which have many
strong corporate culture which also hierarchical layers will be more
influences systems projects. bureaucratic and slower to change.
z For example, some firms work very much by z For example, the vision of the CEO may be
consensus. In this environment, decision- filtered or diluted before it reaches the
making within the project may tend to be development project team.
somewhat slow.

Organizational Factors – Environmental Factors
The Staff or Departments Affected
z The personalities which are involved in or z Systems development is also affected by the
affected by a systems project must be organization's external environment.
taken into consideration. z Events and trends in business and technology
will have an impact on the systems projects.
z Some will be very supportive while others
z What are some of the environmental factors
will adopt a hands-off approach.
which affect systems development?
z Increasing Competition
z Rapid Technological Developments

Environmental Factors – Environmental Factors –

Increasing Competition Rapid Technological Developments
z Global communications and trade has z Technology is changing very rapidly and
increased tremendously. products are becoming obsolete at a faster
z Many companies have branches in many rate.
parts of the world and demand that their z The expectation that a system would last
suppliers be able to service them on a for 5 or 10 years no longer holds since
worldwide basis. improvements in technologies may offer
z This means that information systems are opportunities for enhancements.
correspondingly much more complex.
Information Technology Management Business Process Reengineering (BPR)
z The fundamental rethinking and
radical redesign of business
processes to achieve dramatic
Unit 22: Management Issues improvements in critical
contemporary measures of
performance, such as cost, quality,
service, and speed
z The radical redesign of business
processes, organizational
structures, information systems,
and values of the organization to
achieve a breakthrough in
business results
BPR Principles Impact on BPR

z Organize around outcomes, not tasks. z Changing the way work is done
z Have those who use the output of the process perform the
process. z Impact across multiple departments
z Incorporate information processing work into the real work
that produces the raw information. z May meet resistance
z Treat geographically dispersed resources as though they were
centralized.
z Link parallel activities instead of integrated their results.
When different
z Put the decision point where the work is performed, and
build control into the process.
z Capture data once, at its source.
Impact on BPR Outsourcing
z Changing the way work is done z A relatively new phenomenon in information
z Impact across multiple departments
technology.
z Another management option to deal with high IT
z May meet resistance
costs.
z Arose out of management's concern that the
company should focus on its core competencies.
z Tried to concentrate their resources on areas
where they could add value to the customer.
z A business issue as much as it is a technical
decision.
Considerations of Outsourcing Advantages of Outsourcing

z By performing these functions for many z The main advantages in outsourcing parts of
customers, outsourcing vendors may have the IT departments are:
more experience doing the work and greater z Cost savings as vendor has economies of scale and
ability to negotiate quantity discounts with is more efficient.
z Service quality may be better
hardware & software vendors
z The cost is more predictable with outsourcing
z Extensive outsourcing of IS activities may
contract in place
mean having a very small IS department z Limited IT resources may be used for more
limited to developing IS plans and strategic work.
negotiating with outsourcing vendors
Common Cause of System Quality Problems Total Quality Management (TQM)
z Requirements Gathering z Total Quality Management (TQM) is a concept
that makes quality control a responsibility to be
z Hardware issues
shared by all people in an organization.
z Capacity requirements
z Use of appropriate methodologies
z Implementation issues

Total Quality Management (TQM) TQM vs. BPR

z Everyone is expected to contribute to the overall z Total Quality Management (TQM) is more
improvement of quality incremental than Business Process
z The Engineer who avoids design errors
z The Production Worker who spots defects
Reengineering (BPR) because its efforts
z The Sales Representative who presents the focus making a series of continuous
product properly to potential customers improvements rather than dramatic bursts
z The Secretary who avoid typing mistakes of change.
z Quality improvements not only raise the level of
z Sometimes, however, processes may have to
product and service quality, but they also lower
costs. be fully reengineered to achieve a specified
level of quality.
How IS Contribute to TQM? Software Liable
z Information System can help firms achieve z It is very difficult, if not impossible, to hold software
their quality goals by helping them producers liable for their software products failure or
injury because it is only when software acts as a part
z Simplify products or processes
of a defective product that strict liability pertains.
z Meet benchmarking standards
z If the software is strictly a service (not part of a
z Make improvements based on customer product), these laws do not apply.
demands z As part of a product, software is still considered to be
z Reduce cycle time like books, which historically are protected from
z Increase the quality and precision of design and
liability claims by the First Amendment guaranteeing
production freedom of expression.
Questions & Discussion
ITM Lecture 8
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ITM Lecture 8

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INFORMATICS Information Technology Management

Information Technology Management

19th July 2006

ITM Lecture 8 ITM Lecture 8

Functions of IT Department Systems Development

ITM Lecture 8 ITM Lecture 8

Production Support Technical Support

ITM Lecture 8 ITM Lecture 8

ITM Lecture 8 ITM Lecture 8

Database Administration The Information Center Approach

ITM Lecture 8 ITM Lecture 8

Roles of an Information Center - Roles of an Information Center -

The Emergence of the CIO Responsibilities of the CIO

Responsibilities of the CIO - Information Technology Management

Contents of an ISP Contents of an ISP –

ITM Lecture 8 ITM Lecture 8

ITM Lecture 8 ITM Lecture 8

Contents of an ISP - Applications Backlog

Tasks in Project Management Tasks in Project Management -

ITM Lecture 8 ITM Lecture 8

ITM Lecture 8 ITM Lecture 8

Tasks in Project Management - Tasks in Project Management -

ITM Lecture 8 ITM Lecture 8

ITM Lecture 8 ITM Lecture 8

Problems in Systems Projects - Problems in Systems Projects –

ITM Lecture 8 ITM Lecture 8

Challenges in Systems Projects – Importance of User Participation

z The Staff or Departments Affected

ITM Lecture 8 ITM Lecture 8

Organizational Factors - Organizational Factors -

ITM Lecture 8 ITM Lecture 8

ITM Lecture 8 ITM Lecture 8

Environmental Factors – Environmental Factors –

BPR Principles Impact on BPR

Considerations of Outsourcing Advantages of Outsourcing

ITM Lecture 8 ITM Lecture 8

Total Quality Management (TQM) TQM vs. BPR

Questions & Discussion

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