Transcript Document 7258151

Corporate Information Systems
Management
BiMBA, Fall 1999
Dr. Jason Chen
Gonzaga University
Spokane, WA 99223
The Basics
• Professor
Jason Chen
Office
Office hours
before and after class by appt.
• Text
Applegate, L. M., McFarlan, F.W., and
McKenney, J. L., Corporate Information
Systems Management: Text and Cases. 4th ed.
Chicago: Irwin, 1996
Dr. Chen, The Challenge of the Information Systems Technology
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Conduct of the Course
• Discussion of text material (instructor)
• Presentation of cases (groups of students)
• Technology briefings (groups of students)
Dr. Chen, The Challenge of the Information Systems Technology
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Evaluation
• Participation in discussions and preparation
(10%)
• Case presentations (15%)
• Technology briefing (10%)
• Papers (20%)
• Midterm exam (20%)
• Final exam (25%)
Dr. Chen, The Challenge of the Information Systems Technology
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Why the course? (Corporate
Information Systems Management)
• … In the tumultuous last years of the 20th century,
when change was the only certainty and, one after
another, fierce new competitors rose up from every
corner of the globe to vie for dominance of the
world marketplace, enterprise organizations came to
understand that their only hope for survival lay with
Information Technology. And they called out to their
IT managers to instruct them in the ways of IT and
to fashion IT into a brave, finely-honed competitive
advantage with which to vanquish their enemies ...
Dr. Chen, The Challenge of the Information Systems Technology
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Overview of the Course
• “The broad objective of this book is to help
individuals and their organizations to better
adapt new technologies to their
circumstances and thus to compete in their
industry segments more effectively.”
Dr. Chen, The Challenge of the Information Systems Technology
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Topics
• The Challenge of Information System
Technology (Chapter 1)
• The Changing Environment of Information
Technology (Chapters 2–5)
–
–
–
–
Trends
Competitive Advantage
Electronic Commerce
Information, Organization, and Control
Dr. Chen, The Challenge of the Information Systems Technology
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• Organization, Management, and Control of
the Information Technology Function
(Chapters 6–9)
–
–
–
–
Architectural Alternatives
Organizing and Leading the IT Function
IT Operations
IT Management Processes
• Trends in IT Management (Chapters 10-13)
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–
–
–
Strategic Partnerships
IT Development Portfolio
Transnational IT Issues
The IT business
Dr. Chen, The Challenge of the Information Systems Technology
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Chapter 1
The Challenge of Information
Systems Technology
• What specific
components are
included in the
definition of
“Information
Systems”?
Dr. Chen, The Challenge of the Information Systems Technology
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INFORMATION SYSTEMS
ORGANIZATIONS
TECHNOLOGY
INFORMATION
SYSTEMS
MANAGEMENT
Dr. Chen, The Challenge of the Information Systems Technology
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SYSTEM INTERDEPENDENCE
INTERDEPENDENCE
HARDWARE
BUSINESS
SOFTWARE
DATABASE
Strategy
Rules
Procedures
ORGANIZATION
Dr. Chen, The Challenge of the Information Systems Technology
TELECOMMUNICATIONS
INFORMATION SYSTEM
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Information Systems Resources
•
•
•
•
•
•
Hardware
Software
Telecommunication
Data
Procedure
People
Dr. Chen, The Challenge of the Information Systems Technology
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Dr. Chen, The Challenge of the Information Systems Technology
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Information Technology
• What specific technologies are included in the
definition of “Information Technology”?
Computers
Telecommunications
Office automation
Software tools
Dr. Chen, The Challenge of the Information Systems Technology
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The IT Business
• What are the aspects of “The IT Business” that
must be understood and managed?
Strategic relevance
Corporate culture
Contingency
Technology transfer
Dr. Chen, The Challenge of the Information Systems Technology
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SCOPE OF INFO SYSTEMS
• 1950s: TECHNICAL
CHANGES
• 60s-70s:
MANAGERIAL
CONTROL
• 80s-90s:
INSTITUTIONAL
CORE ACTIVITIES
• 90s and beyond:
GROWING
IMPORTANCE
Dr. Chen, The Challenge of the Information Systems Technology
Automation
Information
Innovation
Paradigm Shift
TM -16
Challenges in IT Management
• What are the challenges in IT management?
Young technology
Technological growth
IT end-user coordination
Specialization
Shift in focus
Dr. Chen, The Challenge of the Information Systems Technology
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Paradigm Shift
I. Computing Paradigm Shift
II. Business Paradigm Shift
Dr. Chen, The Challenge of the Information Systems Technology
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I. Computing paradigm
Users
Networks
Computers
Dr. Chen, The Challenge of the Information Systems Technology
Users
Computers
Networks
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II. Business Paradigm Shift
New Enterprise, Expert Systems
BPR, Paperless Office
1990s
and Beyond
Client/Server,
Open
Systems
Multimedia
Distributed Computing
Object-Orientation
Automated Enterprise,
1980s
Back Office Automation
On-Line Transaction Processing
Proprietary
Systems
Mainframes
Legacy Enterprise, Manual Back Office
1970s
Manual Front Office
1960s
Dr. Chen, The Challenge of the Information Systems Technology
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NEW OPTIONS FOR
ORGANIZATIONAL DESIGN
•
•
•
•
FLATTENING ORGANIZATIONS
SEPARATING WORK FROM LOCATION
INCREASING FLEXIBILITY
REFINING ORGANIZATIONAL
BOUNDARIES
• REORGANIZING WORK FLOWS
*
Dr. Chen, The Challenge of the Information Systems Technology
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THE CHANGING
MANAGEMENT PROCESS
• ENTERPRISE RESOURCE PLANNING
• ELECTRONIC COMMERCE
• ELECTRONIC BUSINESS
*
Dr. Chen, The Challenge of the Information Systems Technology
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ENTERPRISE RESOURCE
PLANNING
SOFTWARE INTEGRATES ALL FACETS:
• PLANNING, MANUFACTURING,
INVENTORY, SALES, FINANCE,
ACCOUNTING
• TRANSACTIONS ALERT ALL
INVOLVED FACTORS
• UPDATES FILES, SPEEDS ACTION,
CUTS COST
*
Dr. Chen, The Challenge of the Information Systems Technology
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ELECTRONIC COMMERCE
• Electronic commerce (EC) is an emerging
concept that describes the buying and
selling of products, services and
information via computer networks,
including the Internet.
&
Dr. Chen, The Challenge
Trends of the
of the
Information
Information
Systems
Systems
Technology
Technology
TM -24
ELECTRONIC COMMERCE
• INTERNET LINKS BUYERS, SELLERS
• LOWERS TRANSACTION COSTS
• GOODS & SERVICES ADVERTISED,
BOUGHT, EXCHANGED WORLDWIDE
• BUSINESS-TO-BUSINESS
TRANSACTIONS INCREASING
*
Dr. Chen, The Challenge of the Information Systems Technology
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ELECTRONIC BUSINESS
• INTRANET: BUSINESS BUILDS
PRIVATE, SECURE NETWORK
• E-MAIL, WEB DOCUMENTS, GROUP
SOFTWARE EXTENDS EFFECTIVE
COMMUNICATION & CONTROL
• VIRTUAL ORGANIZATION
*
Dr. Chen, The Challenge of the Information Systems Technology
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WHAT YOU CAN DO ON THE
INTERNET
•
•
•
•
•
•
COMMUNICATE & COLLABORATE
ACCESS INFORMATION
DISCUSSIONS
OBTAIN INFORMATION
ENTERTAINMENT
BUSINESS TRANSACTIONS
*
Dr. Chen, The Challenge of the Information Systems Technology
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VIRTUAL ORGANIZATION
MANUFACTURING
DESIGN
COMPANY
COMPANY
SALES & MARKETING
CORE
CO
MPANY
COMPANY
LOGISTICS
COMPANY
FINANCE COMPANY
Dr. Chen, The Challenge of the Information Systems Technology
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Virtual Companies (Portable Computing)
A Virtual Company is an Organization composed
of several Business Partners that Uses
Information Technology to Link/Share People,
Assets, Ideas, Costs, and Resources
for the purpose of producing a product or service.
Virtual Companies are Adaptable and OpportunityExploiting Organizations Providing World-Class
Excellence in Their Competencies and
Technologies.
Dr. Chen, The Challenge of the Information Systems Technology
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Characteristics of Virtual Companies
Excellence
Borderless
Adaptability
Six
Characteristics
of Virtual
Companies
Opportunism
Trust-Based
Technology
N
Dr. Chen, The Challenge of the Information Systems Technology
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A Network Structure Facilitates the Creation of
Virtual Companies
Figure 04.10
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Five Challenges of
Information Systems
•
•
•
•
•
STRATEGIC: competitive and effective
GLOBALIZATION: multinational IS
INFO ARCHITECTURE: support goals
INVESTMENT: value of IS
RESPONSIBILITY & CONTROL: ethics and
social responsibility
– Government regulations
– Government deregulation
– Shrinking budgets and subsidies
Dr. Chen, The Challenge of the Information Systems Technology
N
TM -32
Six Questions
often asked by senior management
1.
2.
3.
4.
5.
6.
Is the firm being affected competitively either by omissions
in IT work being done or by poor execution of this work?
Is the firm targeting its IT application development efforts
effectively?
Is the IT asset of the firm being managed efficiently?
Is the firm’s IT activity sufficiently insulated against the
risks of a major operational disaster?
Are IT and business leaders capable of dealing with ITrelated management challenges?
Are the IT resources appropriately placed in the firm?
Dr. Chen, The Challenge of the Information Systems Technology
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Systems As Planned
Organizational Change
• When we design a new IS, we are
redesigning the organization. New IS
frequently mean new ways of doing
business and working together:
– the nature of tasks
– the speed with which they must be completed
– the nature of supervising (its frequency and
intensity)
*
Dr. Chen, The Challenge of the Information Systems Technology
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Systems As Planned
Organizational Change
– who has what information about whom
and when, where, and how will all be
decided in the process of building an
information system.
Dr. Chen, The Challenge of the Information Systems Technology
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Six Issues in
Information Technology
The IT environment
What are the eras of IT environment?
IT Architecture and Organization
 Is the firm’s IT architecture and organization
of IT resources evolving appropriately?
Management Processes
 Are the firm’s IT planning and control
processes appropriate?
*
Dr. Chen, The Challenge of the Information Systems Technology
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Six Issues in
Information Technology
Project Management
Is the firm’s project management process appropriate?
IT Strategy
Is the firm competitive and effectively focused on the
right questions?
The IT Business
 Is the overall direction of the IT asset appropriately
linked to general management and middle management
needs and values?
Dr. Chen, The Challenge of the Information Systems Technology
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The IT Environment
Figure 1–1
Administrative
Framework
Primary
Target
Justification/
Purpose
1950S 1970S
Era I
Regulated
monopoly
Organizational
Productivity/
Efficiency
1970S1980s
Era II
Free
market
Individual
Individual/Group
effectiveness
End
users
1980S1990s
Era III
Regulated
free market
Business process/
Interorganizational
Strategic/
Competitive
IntraOrga.
1990S -
Era IV
Collaborative
Electronic
integration
Organizational
effectiveness
InterOrga.
beyond
Dr. Chen, The Challenge of the Information Systems Technology
DP
mger
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IT Architecture and Organization
• Distribution of resources
• Networking and international coordination
• Outsourcing
– cost effectiveness and reliability
– outsourcing strategy
• IT operations
– cost efficiency and reliability
Dr. Chen, The Challenge of the Information Systems Technology
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Management Processes
• Cost allocation
– cost/profit
• Budgeting
– policy (fixed vs. transaction-driven)
• Performance monitoring
– types of reporting (batch vs. on-line)
Dr. Chen, The Challenge of the Information Systems Technology
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TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM
GROUPS SERVED
STRATEGIC LEVEL
SENIOR
MANAGERS
MANAGEMENT LEVEL
MIDDLE
MANAGERS
KNOWLEDGE LEVEL
KNOWLEDGE &
DATA WORKERS
OPERATIONAL
LEVEL
SALES &
MARKETING
OPERATIONAL
MANAGERS
MANUFACTURING FINANCE
Dr. Chen, The Challenge of the Information Systems Technology
ACCOUNTING HUMAN
RESOURCES
TM -41
Dr. Chen, The Challenge of the Information Systems Technology
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Vision
Mission,
Principles,
and Values
Goals / Objectives
Strategies
Plans
Tactics
Figure: Hierarchy of Leadership Tools
Dr. Chen, The Challenge of the Information Systems Technology
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Project Management
• Implementation risk
– project management processes and
methodologies
– advocates vs. opponents
• Development methodology
– SDLC, JAD, Rapid Prototyping
– single vs. multiple
Dr. Chen, The Challenge of the Information Systems Technology
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IT Strategy
• IT’s differing strategic roles in different
companies
– who should be involved, time and financial resources
• Familiarity with nuances of technology
– complete the project on time and within the budget
• Congruence with corporate culture
– nature of the corporate planning process,
– e.g., formality vs. informality of organizational decision
making
Dr. Chen, The Challenge of the Information Systems Technology
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IT Business
Is the overall direction of the IT asset
appropriately linked to general
management and middle management needs
and values?
• The marketing of IT solutions
– carefully blend the new product opportunities
posed by new technologies with the changing
needs of customers.
Dr. Chen, The Challenge of the Information Systems Technology
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Five Questions
to be asked every six months
1. Do the perspective and skills of the IT team, IT users, and general
management team fit the firm’s changing strategy and organization and the
IT applications, operating environment, and management processes?
2. Is the firm organized to identify, evaluate, and assimilate new information
technologies on a timely basis?
3. Are the three main management systems for integrating the IT
environment to the firm as a whole in place and implemented?
(strategic planning, management control, project management)
4. Are the security, priority-setting, and control systems for IT operations
appropriate for the role it plays in the firm?
5. Are organization structures and coordinating mechanisms in place to
ensure IT is appropriately aligned to the needs of the firm?
Dr. Chen, The Challenge of the Information Systems Technology
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Modern Manager’s Roles
Today's managers are not only expected to
use systems (Information Technology) but
are also expected to:
Know how to use information technology (IT) to design
competitive and efficient organizations.
 Understand the business and system requirements of a
global environment.
 Use information systems to ensure quality throughout the
firm.
 Participate in the design of a firm's information
architecture and systems.
*
Dr. Chen, The Challenge of the Information Systems Technology
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Modern Manager’s Roles
 Manage the procurement of a variety of IT.
 Choose among alternative telecommunications options.
 Manage and control the influence of systems on
employees and customers.
 Allocate resources to competing system alternatives.
 Suggest new uses for systems.
 Understand the ethical dilemmas and controversies that
surround the use of advanced information systems.
11. Understand a global perspective on business and support
systems needed to conduct business on an international
scale.
Dr. Chen, The Challenge of the Information Systems Technology
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Conclusion
• In essence, contemporary
managers (like you) are
expected to know enough
about IT to use in the
design and management of
their organizations.
• These new management
responsibilities require a
deeper understanding of IT
and systems than ever
before.
Dr. Chen, The Challenge of the Information Systems Technology
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Dr. Chen, The Challenge of the Information Systems Technology
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