Information Systems

Management
 Why Study IT Management?
• Many companies throughout the world
are intent on transforming themselves
into global business powerhouses via
major investments in global e-business,
e-commerce, and other IT initiatives.
 Why Do You Need to Know About
the IT Department?
1. Need to understand responsibilities and duties of IT
department
– To be more effective consumer
– To obtain services, equipment, and systems needed
2. Need to know about functions of IT department to be
IS-savvy manager
– To better understand how to integrate disparate companies
or offices
– To raise IT issues early in merger or acquisition
– To better understand needs of IT department in supporting
new initiatives
3. Manager of small company needs to ensure
functions of IT department are performed
 What Are the Responsibilities of
the IT Department?
1. Plan for information systems and IT
infrastructure
– Align IT activities with organization’s primary goals
and objectives
– Assess new technology that might advance goals
– Adapt IT infrastructure and systems to new
business goals
 What Are the Responsibilities of
the IT Department? (cont’d)
2. Develop and adapt information systems
– IT department must create, develop, and adapt
information systems
– Create and adapt infrastructure
• Computer networks, servers, data centers, data
warehouses, data marts
– Create systems infrastructures
• Email, VPN, instant messaging, blogs, net meetings
– Specify standard computer systems
 Agile enterprise—organization that can quickly
adapt to changes in market, industry, product, law,
or other significant external factor
 What Are the Responsibilities of
the IT Department? (cont’d)
3. Maintain Information Systems infrastructures
– Operate and maintain infrastructure
• Networks and servers must be monitored,
tuned, and repaired
• System outages are expensive
– Respond to threats to infrastructure
 What Are the Responsibilities of
the IT Department? (cont’d)
4. Protect infrastructure and data from threats
– Threats to infrastructure and data from:
• Human error and mistakes
• Malicious human activity
• Natural events and disasters
– IT department helps organizations manage risk
• Identify potential threats
• Estimate financial and other risks
• Specify safeguards
• Determine which level of risk to assume
 How Is the IT Department
Organized?
• Chief Information Officer (CIO)
– Principal manager
– Reports to CEO, COO, or CFO
• Technology office
– Head: Chief Technology Officer (CTO)
– Investigates new information systems
technologies for possible application at
organization
• Operations
– Manages computing infrastructure
 How Is the IT Department
Organized? (cont’d)
• Development
– Manages process of creating new
information systems
– Maintains existing system
• Outsourcing relations
– Handles affairs with outsourced systems
• Data administration staff functions
– Establishes data standards and data
management practices and policies
Typical Senior-Level Reporting
Relationships

• Figure 11-2

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

 What IS-Related Job Positions
Exist?
• Systems analyst • Salesperson
• Programmer • Small-scale project
• PQA test engineer manager
• Technical writer • Large-scale project
• User support representative manager
• Computer technician • Database administrator
• Network administrator
• CTO
• Consultant
• CIO

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

 IT Position Requirements

• Most positions require business knowledge

plus technical knowledge
• Many require university degrees
• Most require good verbal and writing skills
• Think dual majors with MIS/CIS to enhance
your marketability (competitive advantage)
– Accounting and information systems
– Marketing and information systems
– Management and information systems
– HRM and information systems

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

 How Do Organizations Decide
How Much to Spend on IT?
• Analyze costs and benefits of system
– Estimate dollar costs
– Value tangible benefits
• Lifetime value of customers lost by not having support
system
• Anticipated customer support cost savings
– Value intangible benefits
• Value of email system
– Compute costs and tangible benefits to see if
project is justified
• If not, then compute intangibles

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

 What Are Your IS Rights and
Responsibilities?
• Users’ Rights include:
– Resources to perform work proficiently
– Reliable network and Internet services
– Secure computing environment
– Participating in requirements meeting for
applications
– Reliable systems development and maintenance
– Prompt attention to problems, concerns, and
complaints
– Effective training

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

 What Are Your IS Rights and
Responsibilities? (cont’d)
• Users’ Responsibilities include:
– Learning basic computer skills and techniques
– Following security and backup procedures
– Using computer resources in a manner consistent
with employer’s policies
– Making no unauthorized hardware modifications
– Installing only authorized programs
– Installing computer patches and fixes
– Treating information systems workers
professionally

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

User’s Rights and Responsibilities

• Figure 11-4

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

 Ethics Guide: Using the
Corporate Computer
• Suppose you are a manager at a company that with
the stated policy.
– “Computers, email, and the Internet are to be used primarily
for official company business. Small amounts of personal
email can be exchanged with friends and family, and
occasional usage of the Internet is permitted, but such usage
should be limited and never interfere with your work.”

• You find out that one of your employees has been

engaged in the activities listed on the following slide.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

 Ethics Guide: Using the
Corporate Computer (cont’d)
1. Playing computer games during work
hours
2. Playing computer games before and
after work hours
3. Responding to emails from an ill
parent
4. Watching DVDs during lunch and
breaks
5. Sending emails to plan a party that
mostly involves people from work
6. Sending emails to plan a party that
mostly involves no one from work
7. Searching the Web for a new car
8. Reading the news on CNN.com
9. Checking the stock market over the
Internet
What would you do? How would you handle the
situation?
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
8. Bidding on items for personal use on
eBay
9. Selling personal items on eBay
10. Paying personal bills online
11. Paying personal bills online when
traveling on company business
12. Buying an airplane ticket for an ill
parent over the Internet
13. Changing the content of a personal
Web site
14. Changing the content of a personal
business Web site
15. Buying an airplane ticket for a
personal vacation over the Internet
Offshore Systems Development
Offshore IS Development Challenges:
• Loss of control over foreign technology
workers

• Loss of control over quality of IT

projects
Offshore Systems Development
Solutions to Offshore IS Development:
• Use employees rather than contractors
• Keep workers informed of plans for
distributing various IT projects
• On-site management by a local national
• Ensure the economies of the local
environment are sustainable
Salaries of MIS personnel

Intro to MIS – Anderson & Post

 IS Management Salaries 2001
CIO/VP IS/CTO $165,000 Includes bonus

Systems Development Networks Database

Director $123,000 Director $106,000 Manager $94,000
Manager 88,000 Manager 83,000 Administrator 89,000
Project manager 85,000 Administrator 60,000 Database analyst 67,000
System analyst 79,000 Network analyst 40,000
Senior developer 74,000 Junior analyst 34,000
Programmer/analyst 55,000
Junior programmer 45,000 User Support
Manager $69,000
Help desk operator 40,000
PC technical support 43,000
Internet Security
Manager $94,000 Manager $86,000
Webmaster 72,000 Administrator 72,000 Operations
Application developer 70,000 Specialist 64,000
EC specialist 74,000 Director $106,000
IS audit manager 81,000
EDI specialist 66,000 Manager 74,000
IS audit staff 53,000
Lead operator 42,000
Computer operator 35,000

http://careers.wsj.com
http://www.computerworld.com
 International Salaries
Nation Programmer/Analyst
Salary
United States 55,000
Britain 57,000
Russia 10,800
India 2,508
Figure 1: Top-paid business majors at the bachelor's degree level

Source: Fall 2015 Salary Survey, National Association of Colleges and Employers

Major Average Starting Salary

Management sciences and quantitative
$63,555
methods (actuarial science)
Real estate $63,099
Management information systems and
$54,467
services
Business/managerial economics $54,415
Construction management $54,212
Finance and financial management services $53,143
Accounting $51,310
Figure 2: Top-paid business majors at the
master's degree level
Source: Fall 2015 Salary Survey, National Association of Colleges
and Employers

Major Average Starting Salary

Management information systems and
$70,189
services
Marketing $66,563
Finance and financial management
$60,881
services
Human resources management and
$59,201
services
Business administration, management,
$58,084
and operations
Accounting $56,377
 2016
Data

Source: https://www.quora.com