Chapter 1Information Systems and the Role of General

and Functional Managers

Why every modern manager must be proficient with Information Systems

Chapter 1

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Course Roadmap

• Part I: Foundations– Chapter 1: Introduction– Chapter 2: Information Systems Defined– Chapter 3: Organizational Information Systems and Their

Impact

• Part II: Competing in the Internet Age• Part III: The Strategic use of Information Systems• Part IV: Getting IT Done

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Learning Objectives

1. To define the terms general manager, functional manager and end user. You will also learn to articulate the difference between these concepts.

2. To define the role of the modern chief information officer (CIO).

3. To identify organizational and information technology trends that have led to the current popularity of IT-based information systems.

4. To identify why it is important for general and functional managers to be involved in information systems decisions.

5. To identify, and avoid, the risks that arise when general and functional managers decide to abdicate their right (and duty) to make important information systems decisions.

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Introduction

• It is very hard to escape the hype and publicity surrounding information technology (IT) and its business applications

• A key driving force has been the affordability and accessibility of I/T and business applications

• This has resulted in I/T and business applications becoming criticial investment for business operation

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Basic Manager Definitions

• Manager: A trained knowledge worker who is in charge of a team often hold a master’s degree in management or business administration

• General Manager: Knowledge worker in charge of an entire organization or business unit

• Functional Manager: Knowledge worker in charge of a functional area or team

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The Importance of IS

“All the value of this company is in its people. If you burned down all our plants, and we just kept our people and our information files, we should soon be as strong as ever.” ~Thomas Watson Jr.

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What This Means For You

• Selecting, designing, and managing IT and IS: Not a job of the “IT guy”

• Modern general and functional managers are responsible for working in partnership with IT professionals.

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Critical Lessons

• Managers have to make educated decisions about the use of IT

• Organizations use new IT to serve growing/changing business needs

• Savvy managers partner with IT pros to ensure information systems success

• Managers may or may not be end-users of the new systems they help intorduce

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What is an End User?

• End User: Individuals who have direct contact with software applications as they use them to carry out specific tasks.

• Anyone who uses a software program is an end-user– Students who use office productivity tools in write papers for

their classes– Customers who use online systems to order goods & services– Supplies who use business systems to deliver goods & services– Managers & employees who use simple office productivity

programs (MS Office) or advanced programs (organizational business systems) for their day-to-day activities

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The End User• Come into direct contact with the technology: Software and

hardware• Use the technology to complete their day-to-day work and

improve their own productivity• General and Functional Managers often are also end-users.

But the critical skills are different• General and Functional Managers must

– Understand the role IT plays in an information system– Be able to identify opportunities to use IT to their organization’s

advantage– Plan for the effective use of IS resources– Manage the design, development, selection, and implementation of

organizational information systems

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Organizational Priorities

Top 10 Business Priorities Top 10 Technology Priorities Business process improvement Virtualization Reducing enterprise costs Cloud computing Increasing the use of information/analytics Web 2.0 Improving enterprise workforce effectiveness Networking, voice and data communications Attracting and retaining new customers Business Intelligence Managing change initiatives Mobile technologies Creating new products or services (innovation) Data/document management and storage Targeting customers and markets more effectively Service-oriented applications and architecture Consolidating business operations Security technologies Expanding current customer relationships IT management

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Next Wave of CIOs

• Increasing prevalence of IT → necessary understanding of how to use resource

• Broad view of operations, business processes, inter-organizational coordination challenges, and opportunities

• Broad understanding of how the firm is positioned to execute strategy

• No longer seen not as the endpoint of a career but as a stepping stone to other executive positions (CEO, president, etc.)

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Key CIO Skills

• Perpetually develop the IT Team/Organization• Effectively manage change while in pursuit of:– Marketplace Innovation– Process Improvement– Maximum Agility– Leverage of Legacy Systems

• Achieve 100% Customer Satisfaction• Consistently improve business performance

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What’s an Information System?

An organizational system that enables the processing and management of an

organization’s information

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Key I/T Trends

• IT is the enabler of new strategy, initiatives, and effective management

• Processing power, storage capacity, and battery life continue to increase rapidly

• IT costs continue to decline rapidly• IT continues to improve in user friendliness,

thus becoming accessible to more and more people

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More IT Trends of Managerial Significance

• Data storage cost continues to decline• More and more devices are networked• Intelligent devices are now mainstream

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Implications of IT Trends

Computing power (computation and

storage) increases.

Cost of computing power declines

Computers become

easier to use

Network bandwidth increases

Interconnected computing devices become more pervasive and

embedded in more aspect of our lives

Computers become

interconnected

Cost of data transmission

declines

Digitization and miniaturization increase

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Effects of Managerial Significance

• Huge increases in capital expenditures related to I/T has resulted in – Advances in communication systems

• Affordable high-speed Internet access• Reliance on instant messenging tools

– Access to entertainment options• Access to games & movies online

– Increased productivity– Management relying on newer intelligence tools to

improve decision making capability

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Hiring the “Right” IT Person

• Skills of managers are complementary to those of IT professionals

• Communication and a good relationship are critical to capitalize on such complementarities

• No longer important to just good enough to hire “good” IT professionals and let them worry about all the IT stuff

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The Recap• Chief information officers (CIOs) are increasingly being selected from the

functional and managerial ranks rather than from the technology ranks. This job is no longer looked at as a career ender

• The enduring effects of Moore’s law have led to increasingly powerful yet cheaper computing strength, declining costs of computer memory, and a dramatic improvement in the ease and breadth of use of digital devices

• Moreover, increasingly available network connectivity and storage capacity, improved battery life for portable devices, and the proliferation of intelligent devices have contributed to dramatically change the business and social landscape

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The Recap

• Managers can no longer abdicate their right, and duty, to be involved in information systems and IT decisions

• Managers must act in partnership with the firm’s information systems and technology professionals

• The skilled manager is one who can use information technologies to the firm’s advantage; can properly plan & manager the firm’s information systems resources; and who can manage, design, develop, select, and implement information systems

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What We Learned

1. To define the terms general manager, functional manager and end user. You will also learn to articulate the difference between these concepts.

2. To define the role of the modern chief information officer (CIO).

3. To identify organizational and information technology trends that have led to the current popularity of IT-based information systems.

4. To identify why it is important for general and functional managers to be involved in information systems decisions.

5. To identify, and avoid, the risks that arise when general and functional managers decide to abdicate their right (and duty) to make important information systems decisions.