Chapter 1 McNurlin - 01

THE IMPORTANCE OF INFORMATION SYSTEMS MANAGEMENT
Chapter 1
Information Systems Management In Practice 7E McNurlin & Sprague
PowerPoint Edited by VENZON L. LIMPIADA, Instructor, MIS and Computers, PSU-GS, 1ST Sem, SY 2011-2012 SPECIAL CREDITS TO Michael Matthew, Visiting Lecturer, GACC, Macquarie University Sydney Australia
SUMMARY OF CHAPTER TOPICS

Introduction A Little History The Organizational Environment
External Business Environment Internal Organizational Environment Goals of the New Work Environment
The Technology Environment

Hardware Trends Software Trends Data Trends Communication Trends
2006 Barbara C. McNurlin. Published by Pearson Education. 1-2
INFORMATION SYSTEMS
When we talk about ISM we need to understand the nature of IT and management; IT: Are a capital asset managed like any other (an abstract asset, like reputation, or goodwill or personal experience) Depreciate over time if not maintained Become obsolescent, then eventually obsolete
MANAGEMENT FUNCTIONS
The role of a manager: Get the job done On time Within budget Satisfactorily Using available resources
Planning
Devise short-range and longrange plans and set goals to help achieve the plans
Organizing
How to use resources
Directing
Guiding employees to perform their work
Controlling
2006 Barbara C. McNurlin. Published by Pearson Education.
Monitoring progress towards goals
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MANAGEMENT LEVELS
High level (strategic)

Long-range view Planning
Middle level (tactical)

Carry out the plan
Assemble the material Hire the resources
Organize
Low level (operational)
Supervisor Directing and controlling

MANAGEMENT LEVELS
Job titles
Chief information officer (CIO) Director of information services Information resource manager MIS manager
Comfortable with
Computer technology Organizations business
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MANAGEMENT LEVELS
Flattening the pyramid

INTRODUCTION
(Finally) Information Technology (IT) computers and telecommunications - is having the kind of revolutionary, restructuring impact that has been expected and promised for years Rapid advances in speed and capacity + pervasiveness of Internet, wireless, portable devices etc. = making major changes in the way we live and work Go Back 5, 10, 15 years
INTRODUCTION CONT.
Due to the growth and pervasiveness of IT, organizations are operating in a different environment from just a few years ago Themes this unit emphasizes:
Globalization
The world seems to be getting smaller Backlash local needs Vs. standard Jobs to stay local IS executives need balancing act
E-enablement
Knowledge Sharing and Knowledge Management
Internet has become a hub for conducting business Interconnectivity plus! Between people Out of peoples heads and into lasting things e.g. systems, policies and procedures etc.
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INTRODUCTION
CONT.
Management of Information Systems

3 Major Trends 1. Governance of IT = a collaborative effort from IS executives and all other members of Senior Management 2. Role of IS is shifting from application delivery to system integration and infrastructure development 3. Outsourcing total / selective
Developing and managing contracts and relationships
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INTRODUCTION
CONT.
Historically, managing IT has been the job of technical managers

NOW = increasingly becoming an important part of the responsibilities of:
Senior executives Line managers Employees at all levels of an organization
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THE KEY (WHATS IT ALL ABOUT?)

Technology is configured into systems that help manage information to improve organizational performance
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A LITTLE HISTORY
U.S. passed from the industrial era to the information era as early as 1957
The number of U.S. employees whose jobs were primarily to handle information surpassed the number of industrial workers
In the late 50s / 60s IT to support information work = largely non-existent (except telephone)
People factories?
Information work = mostly done in general offices without much support from technology
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A LITTLE HISTORY
CONT.
70s = it all started with many of the foundations of IT today invented and costs starting to fall
Typewriters, fax, smaller computers
1980s = number of US information workers surpassed the number in all other sectors (>50%)
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A LITTLE HISTORY
Information Technology:
CONT.
Initially used to perform existing information work more quickly and efficiently Then = used to manage work better Now = well into the 3 rd stage of technology assimilation
IT makes pervasive changes in the structure and operation of:
Work Business practices Organizations Industries The Global Economy (=enabler?)
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MIS- CONCERNS IN THE PHILIPPINES

Information Technology and E -Commerce Council UNESCO Projects National Computer Center of the Philippines
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PHILIPPINES E-COMMERCE, INTERNET AND TECHNOLOGY LAW

This law "aims to facilitate domestic and international dealings, transactions, arrangements, agreements, contracts and exchanges and storage of information through the utilization of electronic, optical and similar medium, mode, instrumentality and technology to recognize the authenticity and reliability of electronic documents related to such activities and to promote the universal use of electronic transaction in the government and general public."
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E-COMMERCE LEGAL SERVICES COMPONENTS

Legal and corporate framework and safeguard for business models Drafting electronic contracts and user agreements Internet Jurisdiction Digital Signatures Copyright infringement online publishing Electronic retailing (e -tailing) Online & email related defamation (libel & slander) Software licenses and various other technology -related agreements
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Online content licensing Privacy and data control issues in a changing legal environment Liability risks in dealing with third party information E-Commercial intellectual property basics: copyright, DMCA Property rights beyond intellectual property: the right to control and protect ones own computer and online system Laws validating electronic transactions Online contract formation
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Attribution: identifying the parties Domain names and their control Website and online jurisdiction issues Terms of service: access contracts, online site or service agreements and application service providers Linking Liability for informational content Consumer law issues in e -commerce E-Mails and evidence in e -commercial contexts Structuring the analysis of tax issues in the e -commerce context
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www.ncc.gov.ph
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MANDATE AND FUNCTIONS OF NCC

As provided in EO 269, the CICT shall be the "primary policy, planning, coordinating, implementing, regulating, and administrative entity of the executive branch of Government that will promote, develop, and regulate integrated and strategic ICT systems and reliable and cost -ef ficient communication facilities and services."
In fulfilling its mandate, the Commission shall be guided by the following policies: (a) To ensure the provision of strategic, reliable and cost ef ficient information and communications technology (ICT) infrastructure, systems and resources as instruments for nation building and global competitiveness;
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"Information and Communications Technology" (ICT) is defined as the totality of electronic means to collect, store, process and present information to end -user s in suppor t of their activities. It consists, among other s, of computer systems, of fice systems and consumer electronics, as well as networked information infrastructure, the components of which include the telephone system, the Internet, fax machines and computer s.
(b) To ensure a policy and legal environment that will promote a level playing field, par tner ships between the public and the
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(b) To ensure a policy and legal environment that will promote a level playing field, par tnerships between the public and the private sector s, strategic alliances with foreign investors, balanced investments between high-growth and economically -depressed areas, and broader private sector par ticipation in ICT development; (c) To foster and accelerate convergence of ICT facilities such as but not limited to the development of networks; (d) To ensure universal access and high -speed connectivity at fair and reasonable cost; (e) To ensure the provision of information and communication ser vices in areas not adequately ser ved by the private sector; (f) To foster the widespread use and application of emerging ICT; (g) To establish a strong and ef fective regulator y system that will ensure consumer protection and welfare and foster a healthy competitive 1-25 environment;

(h) To promote the development of ICT expertise in the country's human capital to enable Filipinos to compete in a fast -evolving information and communication age; (i) To ensure the growth of the ICT industries; (j) To preserve the rights of individuals to privacy and confidentiality of their personal information; (k) To encourage the use of ICT in support of efforts for the development and promotion of the country's arts and culture, history, education, public health and safety, and other socio -civic purposes; (l) To sustain the development of the nationwide postal system as an integral component of the overall development of ICT in the country.
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SOME NCC PROJECTS (WWW.NCC.GOV.PH)

ISSP One Million ICT Jobs Philippine Cyber-Services Corridor Community eCenter eLGU eUniversity eGovernment Portal
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THE ORGANIZATIONAL ENVIRONMENT

The way IT is used depends on the environment surrounding the organization that uses it
Simultaneously, technological advances af fect the way IT is used
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THE ORGANIZATIONAL ENVIRONMENT C ON T.

The External Organizational Environment IT allows information to move faster, thus increasing the speed at which events take place and the pace at which individuals and organizations respond to events. The Internet Economy B2C, B2B etc. IT is a major underpinning of the way the old and new worlds interface

The External Organizational Environment cont.
Global Marketplace
The entire world has become the marketplace The Internet allows companies to work globally Globalization is a two way street Internet allows small firms to have a global reach Business environment is now global, but local tastes still matter
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The External Organizational Environment cont.
Business Ecosystems Decapitalization
Tangible items, such as capital, equipment and buildings were the tenets of power in the industrial age Today = power of intangibles such as ideas and knowledge
Managing talent = as important as e.g. managing finance
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The External Organizational Environment
cont.
Faster Business Cycles

Rely on IT
Accountability and Transparency

Rise and fall of dot-coms probably should have been expected
Many business plans could not make $$$
Debacle in Telco and business shenanigans have shaken investor confidence

Call for greater transparency of corporate operations and greater accountability of corporate officers IT will play a significant role in implementing the ensuing regulations and fostering transparency
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The External Organizational Environment Rising Societal Risks of IT
IT has negatively affected millions of people Network shutdowns Computer viruses Identity theft Email scams Movement of white collar jobs offshore Led to increasing calls for Government regulation and for vendors and corporations to take action
cont.

The Internal Organizational Environment The work environment is also changing, and the art of managing people is undergoing significant shifts
From Supply-Push to Demand-Pull
Old
Companies did their best to figure out what customers wanted Organized to build a supply of products or services and then push them out to end customers on stores shelves, in catalogs etc.
New (Internet)
Allows much closer and one-to-one contact between customer and seller Offer customers the components of a product/service then the customer creates their own version by pulling what they want

The Internal Organizational Environment
cont. Self- Service
ATMs = early example 1990s saw an increase in systems that let consumers access corporate computer systems to:
Learn about products Purchase products Inquire about orders Communicate and do business with the firm
Now = heaps e.g. FedEx parcel tracking
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cont.
Real-Time Working
Sales people have up-to-the-minute information about customers Knowing e.g. inventory and cash levels as the are NOW not as they were a week or a month ago Being able to reach someone when you need them
Instant messaging?
Team-Based Working
Working together on projects
Anytime, Anyplace Information Work
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cont.
Outsourcing and Strategic Alliances

To become more competitive, organizations are examining types of work that should be done internally or externally by others Ranges from a simple contract for services to a long -term strategic alliance The thinking is: We should focus on what we do best and outsource the other functions to people who specialize in them
Note = not new (especially in non-IT) Also = some backlash
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The Demise of Hierarchy
Traditional hierarchical structure groups, several people performing the same type of work, overseen by a supervisor
No longer the most appropriate in factories or offices
cont.
Hierarchical structures cannot cope with rapid change

Communications up and down the chain of command takes too much time for todays environment
IT enables team-based organizational structures by facilitating rapid and far-flung communication Note: = some of the time. Still has its place in many organizations
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GOALS OF THE NEW WORK ENVIRONMENT

Leverage Knowledge Globally
Tap tacit knowledge by fostering sharing and supporting sharing through technology Note: driving force is culture!
Happens through organizational pull (people needing help) rather than organizational push which overloads people with information
Organize for Complexity
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GOALS OF THE NEW WORK ENVIRONMENT CONT.

Work Electronically
Taking advantage of the Internet and networks in general = 3 rd major goal of enterprises today
Requires different organizing principles, management tenets, compensation schemes, structure etc. Changes how organizations interact with others including customers
The microchip moved power within companies. Bandwidth moves power all the way to consumers Will increase exponentially as bandwidth capability increases and costs decrease
Handle Continuous and Discontinuous Change

Fits and starts
THE TECHNOLOGY ENVIRONMENT

IT enables advances in organizational performance. Hardware Trends 50s 60s + - Batch processing predominant; on-line systems emerged later Mid 70s processing power began to move out of the central site (at the insistence of users!) 1980s: Advent of personal computers Client-Server computing: Client machine user interfaces with Server on the network holding the data and applications Major current development = hand-held devices, wireless etc. Further distribution beyond organizational boundaries to suppliers, customers etc.
The Technology Environment cont.
Software Trends
1. In 1960s = Improve the productivity of in-house programmers who created transaction processing systems Problem = memory $ 2. Later, programming issues: First = Modular and structured programming techniques Then = Life cycle development methodologies and software engineering Goal = Introduction of rigorous project management techniques
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Software Trends cont.
3. Prototyping: quick development of a mock-up 4. Purchasing software became viable alternative to inhouse development 5. Paying attention to applications other than transaction processing Decision support systems (DSS), report generation, database inquiry
6. End users develop their own systems


Purchasers were tired of being locked in to proprietary software (or hardware)
7. Push for open systems
8. 1990s trend towards Enterprise Resource Planning (ERP) e.g. SAP, PeopleSoft
DANGER : BEWARE Expensive and troublesome, especially for companies wanting to modify the ERP software to fit their unique processes A fundamental organizational change!
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9. Like hardware, software is migrating to be network centric.

Web front ends to empower employees rather than replacing legacy systems Looming change = move to Web Services packages of code that each perform a specific function and have a URL
e.g FedEx parcel tracking, MacAfee's virus updates
The significance of Web Services is that it moves software and programming to being truly network centric the network becomes the heart of the system, linking all Web Services
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Data Trends
At first = File management
Organizational techniques for files that served individual applications
Then = Corporate databases

Serving several applications Led to concept of establishing a data administration function

Data Trends cont.
70s = focus on Technical solutions

Database management systems Dictionary/directory Specification and format Now = Data definitions: information about relationships among systems, sources and uses of data, and time cycle requirements
First 20 years: techniques to manage data in a centralized environment


Data Trends cont.
Late 70s / early 80s = 4th generation languages and PCs:
Employees directly access corporate data Users demanded it!
Also = Distributing data from data resources to information resources

Data management organizes internal facts into data record format Information management focuses on concepts
Contains a much richer universe of digitized media including voice, graphics, animation and photographs (digitized media)
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Data Trends cont.
Managing this expanded array of information resources requires new technologies
Data warehousing
Stores huge amounts of historical (not live) data from systems such as retailers Point-Of-Sale systems
Data mining
Uses advanced statistical techniques to explore data warehouses looking for previously unknown relationships in data e.g which customers are the most profitable
Knowledge management (intellectual capital)

New The Holy Grail?
Web has broadened data to mean content

Text, graphics, animation, maps, photos, video etc. Now tightly controlled Vs. early proliferation

Data Trends cont.
Two major data issues are now facing CIOs: 1. Security protecting data from those who should not see it 2. Privacy safeguarding the personal data of employees, customers etc.
Regulations such as Sarbanes-Oxley in the U.S. now require company officers to verify their financial data
The processes that handle financial data are automated = need to document and ensure the accuracy of these processes
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Communications Trends
Final core technology = Telecommunications. This area has (is?) experienced enormous change and is now taking centre stage Early use = online and time-sharing systems Then = interest in both public and private (intra-company) data networks blossomed Internet = changed everything! Today the Internets protocol has become the worldwide standard for LANs and WANs
- Will also soon be the standard for voice

Communications Trends cont.
Telecom opened up new uses of IS so it became an integral component of IS management
Communications-based information systems link organizations to their suppliers and customers Explosion of wireless 2nd generation, instant messaging, Wi-Fi, 3rd generation (3G) Doesnt just enable mobility = changes how people communicate, how they live and how they work
EXCITING TIMES!!!
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THE MISSION OF INFORMATION SYSTEMS

Early days: paperwork factories to pay employees, bill customers, ship products etc.
Objectives of information systems defined by productivity measures
Later = MIS era: produced reports for management by exception for all levels of management Today = Improve the performance of people in organizations through the use of information technology
Improving organizational performance is accomplished by the people and groups that comprise the organization
One resource for this improvement is IT
THE MISSION OF INFORMATION SYSTEMS The mission is to improve the performance of people in organizations through the use of information technology
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A SIMPLE MODEL
(FIG. 1-2)
In the early days of Information Systems, the translation between IT and users was performed almost entirely by systems analysts
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SYSTEMS PROFESSIONALS BRIDGING THE TECHNOLOGY GAP

(FIG. 1-3)
Over the last 50 years technology has become increasingly complex and powerful Users have become increasingly sophisticated Information systems are now viewed as products and users have become customers
More specialization is required of systems professionals to bridge this wider gap
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USERS BRIDGING THE TECHNOLOGY GAP

(FIG. 1-4)
Technology has become sophisticated enough to be used by many employees and consumers Today, some of the technology is truly userfriendly, and some applications such as Web page development, database mining and spreadsheet manipulation, are handled by non IT staff Transaction systems, however, are still developed by professional developers, either inside or outside the firm
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WHY TALK ABOUT THE TECHNOLOGY GAP?

The main point of this discussion is that technology is getting more complex, applications are becoming more sophisticated, and users are participating more heavily in the development of applications The net result is that management of the process is becoming more complex and difficult as its importance increases
A BETTER MODEL

(FIG 1-6)
Expanding the simple model gives us more guidance into managerial principles and tasks We suggest a model with four principal elements:
1. 2. A set of technologies that represent the IT infrastructure installed and managed by the IS department A set of users who need to use IT to improve their job performance A delivery mechanism for developing , delivering and installing applications Executive leadership to manage the entire process of applying the technology to achieve organizational objectives and goals
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3.
4.
A FRAMEWORK FOR IS MANAGEMENT
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1. THE TECHNOLOGIES
Several forces contribute to the increased importance and complexity of IT:
1. 2. 3. Growth in capacity + reduction in cost & size Merging of previously separate technologies of computers, telephones/telecom/cable TV, office equipment and consumer electronics Ability to store and handle multiple forms of data
Information systems now fill major roles in management reporting, problem solving and analysis, office support, customer service and communications
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2. THE USERS
Clerical? Managerial?
Note: the distinction between manager and worker is blurring! 2006 Barbara C. McNurlin. 1-65
Published by Pearson Education.
3. SYSTEM DEVELOPMENT AND DELIVERY

Systems development and delivery bridge the gap between technology and users
Systems for procedure-based (clerical) activities dif fer from systems for knowledge based information work (managerial)
Systems are built based on technology resources. Three main categories (essential technologies):
1. 2. 3. Hardware and software Telecommunications Information resources
Management of these is called infrastructure management

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4. IS MANAGEMENT
Chief Information Officer (CIO)

Must be high enough in the enterprise to influence organizational goals Must have enough credibility to lead the harnessing of technology to pursue those goals
Must work with all the other CXOs

IT has become too important to be left to one individual
Executive team must work together to govern it and leverage it well

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A BETTER MODEL - SUMMARY

This model has four major components:
1. The technology which provides the electronic and information infrastructure 2. Information workers who use IT to accomplish their work goals 3. System development and delivery which brings the technology and users together
4. The management of the IS function

Overall responsibility = to harness IT to improve the performance of the people and the organization
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A BETTER MODEL
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CASE EXAMPLE: MEADWESTVACO CORPORATION
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A FINAL THOUGHT
It is not the strongest species that survive, nor the most intelligent, but the ones responsive to change - Charles Darwin
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Chapter 1 McNurlin - 01

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THE IMPORTANCE OF INFORMATION SYSTEMS MANAGEMENT

SUMMARY OF CHAPTER TOPICS

The Technology Environment

Monitoring progress towards goals

High level (strategic)

Middle level (tactical)

Supervisor Directing and controlling

2006 Barbara C. McNurlin. Published by Pearson Education.

Flattening the pyramid

Knowledge Sharing and Knowledge Management

2006 Barbara C. McNurlin. Published by Pearson Education.

Management of Information Systems

2006 Barbara C. McNurlin. Published by Pearson Education.

Historically, managing IT has been the job of technical managers

2006 Barbara C. McNurlin. Published by Pearson Education.

THE KEY (WHATS IT ALL ABOUT?)

2006 Barbara C. McNurlin. Published by Pearson Education.

2006 Barbara C. McNurlin. Published by Pearson Education.

2006 Barbara C. McNurlin. Published by Pearson Education.

2006 Barbara C. McNurlin. Published by Pearson Education.

2006 Barbara C. McNurlin. Published by Pearson Education.

MIS- CONCERNS IN THE PHILIPPINES

PHILIPPINES E-COMMERCE, INTERNET AND TECHNOLOGY LAW

E-COMMERCE LEGAL SERVICES COMPONENTS

E-COMMERCE LEGAL SERVICES COMPONENTS

E-COMMERCE LEGAL SERVICES COMPONENTS

MANDATE AND FUNCTIONS OF NCC

MANDATE AND FUNCTIONS OF NCC

MANDATE AND FUNCTIONS OF NCC

MANDATE AND FUNCTIONS OF NCC

SOME NCC PROJECTS (WWW.NCC.GOV.PH)

THE ORGANIZATIONAL ENVIRONMENT

2006 Barbara C. McNurlin. Published by Pearson Education.

THE ORGANIZATIONAL ENVIRONMENT C ON T.

THE ORGANIZATIONAL ENVIRONMENT C ON T.

2006 Barbara C. McNurlin. Published by Pearson Education.

THE ORGANIZATIONAL ENVIRONMENT C ON T.

2006 Barbara C. McNurlin. Published by Pearson Education.

THE ORGANIZATIONAL ENVIRONMENT C ON T.

Faster Business Cycles

Accountability and Transparency

Debacle in Telco and business shenanigans have shaken investor confidence

2006 Barbara C. McNurlin. Published by Pearson Education.

THE ORGANIZATIONAL ENVIRONMENT C ON T.

THE ORGANIZATIONAL ENVIRONMENT C ON T.

THE ORGANIZATIONAL ENVIRONMENT C ON T.

Now = heaps e.g. FedEx parcel tracking

2006 Barbara C. McNurlin. Published by Pearson Education.

THE ORGANIZATIONAL ENVIRONMENT C ON T.

Anytime, Anyplace Information Work

2006 Barbara C. McNurlin. Published by Pearson Education.

THE ORGANIZATIONAL ENVIRONMENT C ON T.

Outsourcing and Strategic Alliances

Note = not new (especially in non-IT) Also = some backlash

2006 Barbara C. McNurlin. Published by Pearson Education.

THE ORGANIZATIONAL ENVIRONMENT C ON T.

Hierarchical structures cannot cope with rapid change

2006 Barbara C. McNurlin. Published by Pearson Education.

GOALS OF THE NEW WORK ENVIRONMENT

Organize for Complexity

2006 Barbara C. McNurlin. Published by Pearson Education.

GOALS OF THE NEW WORK ENVIRONMENT CONT.