Chapter 11 Information Systems Management. Fox Lake needs a senior manager to manage its IS function...

Chapter 11

Information Systems Management

Fox Lake needs a senior manager to manage its IS function

Jeff is told he is the best one to do it

Conflict of interest issues discovered

Security issues for servers, applications, data

Scenario video

This Could Happen to You: “You’ve Got the Fox in Charge of the Hen House”

11-2Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q1: Why do you need to know about the IS department?

Q2: What are the responsibilities of the IS department?

Q3: How is the IS department organized?

Q4: What IS-related job positions exist?

Q5: How do organizations decide how much to spend on IS?

Q6: What are your IS rights and responsibilities?

How does the knowledge in this chapter help Fox Lake and you?

Study Questions


You might someday be a manger of a business that is too small to hire a full-time IS manager.

To avoid problems like those that Jeff will find he has in Chapter 12:

You need to understand the responsibilities and duties of the IS department so you can be an effective consumer of the IS department’s resources.

To be a better informed and effective business planner or innovator.

IS a major element of nearly every organization. Understanding IS responsibilities and organization of IS department is key for every business professional.

Q1: Why Do You Need to Know About the IS Department?


Q2: What Are the Responsibilities of the IS Department?


Align IT activities with organization’s primary goals and objectivesAssess technology and determine if it can be used to advance organization’s goalsAgile enterprise infrastructure to support an agile business

Plan for Information Systems and IT Infrastructure


Develop and adapt information systems and IT infrastructure IS department responsible for creating computer

networks, servers, data centers, data warehouses, data marts, email systems, VPNs, company blogs, SharePoint sites, and related infrastructure.

Maintain information systems, operate and manage infrastructureManaging IT operations

Manage development processes

Manage outsourcing relations

Protect Infrastructure and data from threats

Plan for Information Systems and IT Infrastructure (cont’d)


Experiencing MIS InClass Exercise 11: What’s that Humming Sound?


Experiencing MIS InClass Exercise 11: What’s that Humming Sound? (cont’d)


a. All user computers run full time night and day.

b. All user computers run full time during work hours and in sleep mode during off-hours.

c. All user computers are shut off during non-work hours.

6. Calculate monthly cost, in watts, if:

a.Is computer power management during off-hours a significant concern?

b.In comparison to the other costs of running a university, does this issue really matter? Discuss this question among your group and explain your answer.

7. Given your answers to items 1–6:



Q3: How Is the IS Department Organized?


Q4: What IS-Related Job Positions Exist?


Business analyst

Programmer

PQA test engineer

Technical writer

User support rep.Computer technicianNetwork administratorConsultant

Service salesperson

Small-scale project managerLarge-scale project managerDatabase administrator

CTO

CIO

See Figure 11-3 for details

Job Positions in the Information Systems Industry


Job Positions in the Information Systems Industry (cont’d)


Most positions require business knowledge plus technical knowledge

Many require university degrees

Most require good verbal and writing skills

Think dual major with MIS/CIS to enhance your competitive advantage•Accounting and information systems•Marketing and information systems•Management and information systems•HRM and information systems

IT Position Requirements


Cost-benefit analysisEstimate dollar costs

Value tangible costs an tangible benefits

Software license (tangible cost)Reduce customer support cost 10% (tangible benefit)Value intangible costs and intangible benefitsValue of email system (intangible benefit)

Customer dissatisfaction (intangible cost)

Q5: How Do Organizations Decide How Much to Spend on IS?


Q6: What Are Your IS Rights and Responsibilities?


Q6: What Are Your IS Rights and Responsibilities? (cont’d)


Jeff needs this knowledge to understand how he should be managing IS and IT resources at Fox Lake.He could have prevented problem you will learn about in Chapter 12.

You can use knowledge to be a more informed consumer of IS department services.

Help your organization better manage and plan its information systems and IT Infrastructure.

Work better with IS department on innovative project you envision that have an IS component.

How Does the Knowledge in This Chapter Help Fox Lake and You?


Suppose you are a manager at a company 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 learn one of your employees has been engaged in the activities listed on following slide.

Ethics Guide: Using the Corporate Computer


10. Tweeting friends on your computer about your softball win last night.

11. Selling personal items on eBay12. Paying personal bills online13. Paying personal bills online

when traveling on company business

14. Buying an airplane ticket for an ill parent over the Internet

15. Changing content of a personal website

16. Changing content of a personal business website

17. Buying an airplane ticket for a personal vacation over Internet

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 involves hardly anyone from work

7. Updating your Facebook page

8. Reading news on CNN.com9. Checking stock market over

Internet

1. Explain how you would respond to each situation.

• If so, does that justify the company reading your email? Does this situation differ from having someone read your personal postal mail that happens to be delivered to you at work? Why or why not?

5. As an employee, if you know that your company occasionally reads emails, does that change your behavior?

6. Write what you think is the best corporate policy for personal computer usage at work.



Recent media reports blame U.S. job loss to overseas outsourcingReal culprit is increased productivity because of information technology

Creative destruction—“Cleansers of the free market” Economic processes remove unneeded jobs; keep

economy growing and prospering

Economic recovery without binge of new hiringWhat should you do to protect yours job from being outsourced? Be a business professional who can use technology Use technology and information systems to help your

company achieve goals and objectives Define yourself as an innovator

Guide: Jumping Aboard the Bulldozer


Active Review


Operates and franchises hotels and lodging facilities throughout world

2009 revenue was just over $10.91 billion

Marriott groups its business into segments according to lodging facility

Major business segments are:•Full-service lodging•Select-service lodging•Extended-stay lodging•Timeshare properties

Case Study 11: Marriott International, Inc.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 11-28

Three top corporate priorities are:

Profitability

Preference (traveler)

Growth

Revenue management system adjusts prices in accordance with real-time demand

Case Study 11: Marriott International, Inc. (cont’d)


Marriott developed two different revenue management systems, one for premium hotels and one for lower-priced properties.

Both developed using pre-Internet technology

Required installing updates locally, which was expensive and problematic

Two systems required separate interfaces for entering prices into a centralized reservation system.



Marriott created a single revenue-management system to be used by all of properties.

One Yield custom developed in-house, using process similar to SDLC

Understood importance of user involvement, formed joint IT-business user team to developed business case for new system and jointly manage development.

Team provided constant communication to system’s future users, and used prototypes to identify problem areas early.

Training is continuing activity for all employees, and training facilities were integrated into new system.



One Yield recommends prices for each room for given day, date, current reservation levels, and history. Revenue manager at each hotel property can override these recommendations.

Prices are communicated directly to centralized reservation system.

One Yield uses web-based technology, so upgrades are done only at web servers, not at individual hotels.

This strategy saves considerable maintenance cost, time, and frustration.



One Yield computes theoretical maximum revenue for each property and compares actual results to that maximum.

One Yield increased ratio of actual to theoretical revenue from 83% to 91%, which translated into substantial increase in revenues.



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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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