INFORMATICS

Information Technology Management

Lecture 7

23rd January 2008

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Advanced Diploma (Thames College) 1

Information
o at o Tec
Technology
o ogy Management
a age e t

U i 19
Unit 19: Th
The IT Department
D

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Functions
Fu ct o s of
o IT
T Department
epa t e t
z Systems Development
z Operations
z Equipment Operations
z Production Support

z Technical Support
z End-User
E d U services
i
z Systems Programming
z Database Administration

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Systemss Development
Syste eve op e t
z The
Th purpose off the
th systems
t development
d l t
function is to develop p new applications
pp
and to maintain existing ones.
z The
Th systems developer
d l has
h to analyze
l the
h
application
pp area,, determine its
requirements, and design and program the
actual computer-based
computer based information system
system.

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Ope at o s
Operations
z There
Th r iis m
muchh lless abstraction
b tr ti n in
involved
l d when
h n
organizing the operational function for a
data-processing installation.
z The computer and associated machines must
be fun, and someone must schedule this;
essentially, that is the mission of operations.
z Equipment Operations
z Production Support

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Equipment
qu p e t Operations
Ope at o s
z Equipment operations means running the machine
and its peripheral equipment, keeping the printer
supplied
li d with
i h paper, mounting
i magnetic i tape onto
magnetic tape drives, and monitoring the
computer's ' console.
l
z In most installations data ppreparation
p is also one of
the responsibilities of operations.
z Since computer operations often run two or three
shifts, organization into these shifts is a key feature.
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Production
P oduct o Support
Suppo t
z Production support schedules the running
of the computer center and controls jobs
(
(programs) ) in
i terms off priorities,
i i i based
b d
p when output
upon p is required.
q
z In these respects, the manager of
computer operations will be implementing
the policies set by the data processing
i
installation
ll i manager.

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Technical
Tec ca Support
Suppo t
z This part of a computer center is meant to
support both systems development and
operations
i ffunctions.
i
z Technical support is divided into these key
areas:
z End-User
E dU SServices
i
z Systems Programming
z Database Administration

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End-User
d Use Se
Services
v ces
z Personnel
P l in
i this
thi group help
h l users gain i
p
access to computer-center facilities,
conduct training courses, and troubleshoot
when users have problems with their
computer support.

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Systemss Programming
Syste P og a g
z Here
H personnell iinstall
t ll the
th computer's
t '
p g system,
operating y tailor it and maintain it,
and improve the efficiency of application
programs.
programs

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Database
atabase Administration
d st at o
z The skill of setting up and administering the
organization's data base falls to this group.
z It is multifaceted assignment, which includes
establishing
estab s g thet e logical
og ca data requirements
equ e e ts ofo the
t e
enterprise; setting up the data base; controlling
security and providing backup to the data; and
helping the systems development staff use the
d iin ddesigning
data i i computer-basedb d iinformation
f i
systems.
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The Information Center Approach

pp
z It is necessary to The most common approach
to the management of End User Computing
(EUC) is the Information Center (IC) which
formalize the support to be provided by users.
z The
Th IC iis a uniti within
i hi the
h IT D
Department
which is specifically responsible for the EUC
support.
z Byy providing
p g dedicated support
pp personnel
p with
a separate budget, focused attention is ensured.

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Roles
o es of
o an
a Information
o at o CeCenter
te
z Advice
Ad i and
dCConsultancy
lt
z Training
z Procurement
z Define Standards

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Roles of an Information Center -

Ad i and
Advice nd C
Consultancy
n lt n
z Many IC are set up like a typical computer store.
store
z A user talk to the center consultant about computing
needs a product manager may also be involved if the
needs,
hardware or software requirements of the user go
beyond
y the consultant's expertise.
p
z Many IC run a hotline service to help end-users with
problems once an application
p pp is up
p and running.g
z Some centers will audit end-user applications on a
regular
g basis to ensure that theyy are workingg the wayy
they are supposed to.

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Roles of an Information Center -
Tr inin
Training
z Many end-users
end users needing knowledge about
computer technology to do their jobs more
effectively training has become a major priority -
effectively,
and a major expenses.
z IC training can be provided on an individual,
department wide, or company-wide basis.
z Training may be directed to a specific need or a
specific application (such as training the purchasing
department to use Excel to store and access
purchasing records)
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Roles of an Information Center -

Pr r m nt
Procurement
z Since the user or department will often acquire the computing
resources from its own budget, and not that of the MIS
department the center has little control over the final choices
maded by
b the
h user.
z Freedom of selection notwithstanding, the user must take into
account the fact that the center can,
can realistically,
realistically support only a
finite number of products.
z If the center supports only Microsoft Office,
Office and the user wants
Next Office, the user must bear complete responsibility for
training, advising, and dealing with any problems that might later
arise.
z It would be desirable for the IC to be part of the evaluation
committee for the acquisition of EUC products.
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Roles of an Information Center -
D fin Standards
Define St nd rd
z The Information Center should evaluate
user needs and arrive at a set of packaged
software
f for
f each h type off EUC C processing.
i

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Advantages
dva tages and
a d Disadvantages
sadva tages
z The IC approach
pp enables users to retain the autonomyy
to care for their own needs. Most end-users operate
under normal budgetary
g y constraints and are motivated
to spend funds wisely. If properly managed, the IC
provides some control over the unbridled p
p proliferation
of end-user systems.
z Some users may resent not having the complete
freedom to buy nay kind of software or hardware as
they see it. There will be some conflict of interests
between the objectives of the Information Centre and
those of any individual user.
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Thee Emergence
T e ge ce of
o the
t e CIO
CO
z The
Th Chi
Chieff IInformation
f ti Officers
Offi (CIO) is
i a
senior manager who takes part in business
strategy formulation and who can ensure that
the information strategy fits into and
complements the overall business strategy.
z This is reflective of the growing recognition
p
of the importance of information in the
pursuit of the company's strategic goals.
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Responsibilities
espo s b t es ofo the
t e CIO
CO
z The
Th Chi
Chieff Information
I f ti Officer
Offi (CIO) isi
the top
p executive in charge
g of information
technology and its usage.
z The
Th main i responsibilities
ibili i off the
h CIO are
described below :
z StrategicUse of IT
z Information Management

z Traditional Management Functions

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Responsibilities of the CIO -
Str t i Use
Strategic U off IT
z The
Th CIO mustt id
identify
tif ways ini which
hi h
information and information technology gy
are able to support the company's strategic
plans.
plans
z This can include supporting
pp gap particular
business activity, to actually developing a
new information-based
i f r ti b d pr product
d t fforr
customers.
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Responsibilities of the CIO -

Inf rm ti n M
Information Management
n m nt
z Information
I f ti is
i an important
i t t resource andd
especially
p y so in organizations
g which are
information intensive.
z The
Th management off information
i f i flows,
fl
processingg and p
p presentation is an
important responsibility of the CIO.

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Responsibilities of the CIO -
Tr diti n l M
Traditional Management
n m nt F Functions
n ti ns
z The
Th usuall managementt ffunctions
ti are also
l the
th
responsibilities of the CIO.
z These include budgeting and staffing of the
IT department
department.
z There will alwaysy be competing
p g demands on
the IT resources and the CIO must establish
the priorities of the IT staff and allocate
resources to areas that are more important.
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Information
o at o Tec
Technology
o ogy Management
a age e t

Unit 20: Information System

y
Planningg

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What is an Information Systems
Pl nnin (ISP)?
Planning
z With the advent of strategic systems,
systems information
systems planning took on new dimensions and required
new linkages with corporate strategic planning.
planning
z Mangers have had to become aware that uses of
computers can have
h significant
i ifi effects
ff on their
h i
organization's competitive position, and that
i f
information
i systems planning
l i needs d to be
b coupledl d
more closely with the goals of the organization.
z In fact, information systems planning, or lack of it, can
now affect business plans.
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Information Systems
y Planningg (ISP)
( )
z The long term-term
term term planning for computerized information
systems in order to meet corporate objectives.
z Cater for different corporate objectives,
objectives from introducing word
processing and other office automation products, to supporting
competitive measure to win greater market share.

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Contents
Co te ts of
o an
a ISP
SP
z The
Th IInformation
f ti Systems
S t Plan
Pl (ISP) willill
typically
yp y contain the followingg sections:
z Corporate Strategy
z Information
I f i Requirements
R i
z Current IT Installation

z IT Action Plan

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Contents of an ISP –
C rp r t Str
Corporate Strategy
t
z The
Th main
i points
i t off the
th corporatet strategy
t t
over the next 5 yyears will be outlined.
z These will be broken down into specific
corporate actions
i which
hi h may or may not
pp
be an opportunity y for IT involvement.

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Contents of an ISP -
Inf rm ti n R
Information Requirements
q ir m nt
z Future
F t information
i f ti needsd off the
th
organization
g will be described here.
z This will be based on the corporate
strategy andd other
h organizational
i i l
p
developments ((e.g.
g expected
p merger
g or
acquisitions).

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Contents of an ISP -
C rr nt IT In
Current Installation
t ll ti n
z The
Th existing
i ti IT hardware,
h d software
ft andd
communications p platforms will be
described here. In addition, the existing
staff and skill levels should also be
included.

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Contents of an ISP -
IT Action
A ti n Plan
Pl n
z This
Thi section
ti ddescribes
ib the
th overallll vision
i i off
how IT systems
y would look like in 3 years
y
time.
z It
I also
l prescribes
ib yearlyl targets to move
the IT setupp towards the ggoal.
z These in turn will be translated into
specific projects and actions.

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Applications
pp cat o s Backlog
ac og
z Each project have been initiated with a project
request.
z IT Steering
S i Committee
C i ddecides
id which hi h projects
j are to
be approved.
z At any one time, certain applications development
projects would have been completed, others would
be on-going while the rest would not have started
yet.
z The applications portfolio or project portfolio is the
list of all application projects that are in the approved
plan for next year,Advanced
plusDiploma
ongoing
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Applications
pp cat o s Backlog
ac og (co
(cont’)
t)
z Some companies practice a yearly evaluation of
project requests to decide, give the limited
resources andd the
h corporate strategic
i objectives,
bj i
which projects will proceed in the following
year.
z To assist in the decision
decision-making
making, the cost-
cost
justification is performed with financial ratios
lik payback
like b k andd Return
R t on Investment
I t t (ROI)
being used to assist in the ranking.
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Information
o at o Tec
Technology
o ogy Management
a age e t

U i 21
Unit 21: P
Project
j Management
M

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Taskss in P
Tas Project
oject Management
a age e t
z Managing an IT project encompasses
many tasks:
z Identification of Tasks
z Estimation
E tim ti n
z Allocation of Resources
z Scheduling

z Monitoring
M i i

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Tasks in Project Management -

Id ntifi ti n off Tasks
Identification T k
z All the tasks and deliverables must be
identified at a relatively high level of detail.
z It is not enough to simply identify the
ph
phases off th
the lif
life cycle.
l

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Tasks in Project Management -
E tim ti n
Estimation
z Each of the above tasks must be estimated
for effort and elapsed time.
z The total of the effort estimations is the
r ir d b
required budget.
d t

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Tasks in Project Management -

All ti n off Resources
Allocation R r
zA project team will comprise personnel
with different skills and experience.
z The right person must be allocated the
ri ht ttask.
right k

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Tasks in Project Management -
S h d lin
Scheduling
z Scheduling involves setting up a project
timetable which shows when the various
activities
i i i must take
k place.
l
z Gantt charts are commonly y used to show such
activities.

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Tasks in Project Management -

M nit rin
Monitoring
z Work actually done and
targets achieved must be
compared against the
project plan.
plan
z This will determine if the
project is on schedule or
if it is slipping behind.
behind

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Problems
P ob e s in Systems
Syste s Projects
P ojects
z Systems development and implementation projects
are seldom smooth sailing.
z A with
As i h projects
j iin other
h iindustries
d i or di disciplines,
i li
project sponsors, leaders and team members often
encounter difficulties in their projects.
z What are some of the p problems or challenges?
g
z Project Delays
z Cost Overruns
z Not Meeting Requirements

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Problems in Systems Projects -

Pr j t Delays
Project D l
z This is a common problem and is due to
either an over-optimistic estimation of
work (or perhaps where estimation was
not even done),
done) or lack of anticipation of
problems.

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Problems in Systems Projects -
C t Overruns
Cost O rr n
z Projects often seem to cost more than expected
z This is particularly so in in-house development
projects.
z There are a variety of reasons for this
this.
z Some of them are that there may not be a
proper change
h controll procedure,
d and
d that
h many
hidden costs are not factored into the original
cost calculations.

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Problems in Systems Projects –

N t Meeting
Not M tin Requirements
R q ir m nt
z In many cases
cases, when the finished system
product is shown to the user, the latter
says: "That's not what I asked for".

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Challenges
C a e ges in Systems
Syste s Projects
P ojects
z The most obvious aim of any systems project is to
ensure that the functional requirements are met.
z If the system does not even support the business,
business then
it is of little use.
z If we were to go beyondb d mere functional
f i l compliance,
li
there are certain qualities or characteristics of systems
that
h would ld set iit apart as an excellent
ll system.
z What are some of the challenges?
z Meeting Quality Requirements
z Strategic Use of Information Technology
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Challenges in Systems Projects -

M tin Q
Meeting Quality
lit Requirements
R q ir m nt
z It is sometimes difficult to write quality requirements but
important to do so.
z If we don
don'tt know how to state our vision of a high quality
product, how can we communicate this to the systems
developers?
p
z Similarly, systems developers face the challenge of
improving
p v g the systems
y that theyy develop
d v p in the area of
quality and performance.
z With increasing choices available to users, developers must
work hard to differentiate their product from others.

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Challenges in Systems Projects –
Strategic Use of Information Technology
z Organizations must learn to use
Information Technology in unique and
strategic ways.
z Instead
I t d off just
j t automating
t m ti labor-intensive
l b ri t i
work, IT should be used to change the way
business is done and thereby win
competitive advantage.
advantage

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Importance
po ta ce of
o User
Use Participation
Pa t c pat o
z As many employees as possible should be involved at the
planning stage of a new information system.
z During implementation,
implementation all employees,
employees and particularly
those who are directly involved, should be kept fully
informed.
z Every individual will want to know how their particular job
wouldd be
w b affected.
d
z The champion (usually the manager who initiated the
project) should enthusiastically support it and give strong
and clear leadership during the planning and
implementation
p stages.
g
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Organizational
O ga at o a Facto
Factorss
z Systems development does not occur in
isolation. It takes place in an organizational
setting.
i
z What are some of the organizational
g factors
which affect system development?
z Type of Business
z Corporate Culture

z Organizational Structure

z The Staff or Departments

p Affected
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Organizational Factors –
T p off Business
Type B in
z Different industries have their own
characteristics and style of working which
may have varying types of impact on
systems development projects.
projects
z For example, work in a hospital environment
tends to be very different from that in
advertisement.

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Organizational Factors -
C rp r t C
Corporate Culture
lt r
z Withina particular firm
firm, there may be a
strong corporate culture which also
influences systems projects.
z Forexample
example, some firms work very much by
consensus. In this environment, decision-
making
ki within
i hi the
h project
j may tend d to bbe
somewhat slow.

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Organizational Factors -
Or niz ti n l Str
Organizational Structure
t r
z Organizations which have many
hierarchical layers will be more
bureaucratic and slower to change.
z For example
example, the vision of the CEO may be
filtered or diluted before it reaches the
d l
development project
j team.

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Organizational Factors –
Th St
The Staff
ff orr Departments
D p rtm nts Affected
Aff t d
z The personalities which are involved in or
affected by a systems project must be
taken into consideration.
z Some
S m willill be
b very
r supportive
pp rti while
hil others
th r
will adopt a hands-off approach.

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Environmental
v o e ta Factors
Facto s
z Systems development is also affected by the
organization's external environment.
z Events and trends in business and technology
p on the systems
will have an impact y projects.
p j
z What are some of the environmental factors
which
hi h affect
ffe t systems
s stems development?
de elopment?
z Increasing Competition
z Rapid Technological Developments

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Environmental Factors –
In r in C
Increasing Competition
mp titi n
z Global communications and trade has
increased tremendously.
z Many companies have branches in many
parts of the world and demand that their
suppliers be able to service them on a
worldwide
ld id basis.
b i
z This means that information systems are
correspondingly much more complex.
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Environmental Factors –
R pid T
Rapid Technological
hn l i l D Developments
l pm nts
z Technology is changing very rapidly and
products are becoming obsolete at a faster
rate.
z The
Th expectation
p t ti thatth t a system
t m would
ld last
l t
for 5 or 10 years no longer holds since
improvements in technologies may offer
opportunities for enhancements.
enhancements

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Information
o at o Tec
Technology
o ogy Management
a age e t

U i 22
Unit 22: M
Management IIssues

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Business Process Reengineering

g g (BPR)
( )
z The fundamental rethinking g and
radical redesign of business
processes to achieve dramatic
i
improvements t in
i critical
iti l
contemporary measures of
pperformance,, such as cost,,
quality, service, and speed
z The radical redesign of business
processes, organizational
structures, information systems,
and values of the organization to
achieve a breakthrough in
business results
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BPR
P Principles
P c p es
z Organize around outcomes, not tasks.
z Have those who use the output of the process perform the
process.
z Incorporate information processing work into the real work
that produces the raw information.
z Treat geographically dispersed resources as though they were
centralized.
z Link
i k parallel
ll l activities
i i i instead
i d off integrated
i d their
h i results.
l
When different
z P t the
Put th decision
d i i point i t where
h theth workk is
i performed,
f d andd
build control into the process.
z Capture data once
once, at its source
source.
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Impact
pact on
o BPR
P
z Changing the way work is done
z Impact across multiple departments
z May meet resistance

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Impact
pact on
o BPR
P
z Changing the way work is done
z Impact across multiple departments
z May meet resistance

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Outsou c g
Outsourcing
z A relativelyy new phenomenon
p in information
technology.
z Another management option to deal with high IT
costs.
z Arose out of management's ' concern that the
company should focus on its core competencies.
z Tried to concentrate their resources on areas
where they could add value to the customer.
z A business issue as much as it is a technical
de ision
decision.
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Considerations
Co s de at o s of
o Outsourcing
Outsou c g
z By performing these functions for many
customers, outsourcing vendors may have
more experience doing
d the
h workk andd greater
abilityy to negotiate
g qquantityy discounts with
hardware & software vendors
z Extensive
E i outsourcing i off IS activities
i i i may
mean having a very small IS department
limited to developing IS plans and
negotiating with outsourcing vendors
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Advantages
dva tages of
o Outsourcing
Outsou c g
z The main advantages in outsourcing parts of
the IT departments are:
z Cost savings as vendor
d has economies of scale andd
is more efficient.
z Service quality may be better

z The cost is more p predictable with outsourcingg

contract in place
z Limited IT resources may be used for more
strategic work.

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Common Cause of System
y Quality
Q y Problems

z Requirements Gathering
z Hardware issues
z Capacity requirements
z Use of appropriate methodologies
z Implementation
Impl m nt ti n iissues

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Total Q
Qualityy Management
g (TQM)
( Q )
z Total Quality Management (TQM) is a concept
that makes quality control a responsibility to be
shared
h db by allll people
l iin an organization.
i ti

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Total Q
Qualityy Management
g (TQM)
( Q )
z Everyone is expected to contribute to the overall
improvement of quality
z The Engineer who avoids design errors
z The Production Worker who spots defects
z The Sales Representative who presents the
product properly to potential customers
z The Secretary who avoid typing mistakes
z Quality improvements not only raise the level of
product and service quality,
quality but they also lower
costs.

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TQM vs. BPR

TQ P
z Total Quality Management (TQM) is more
incremental than Business Process
Reengineering (BPR) because
b its efforts
ff
focus makingg a series of continuous
improvements rather than dramatic bursts
of change.
change
z Sometimes, however, processes may have to
be fully reengineered to achieve a specified
level of quality.
quality
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How ISS Contribute
Co t bute to TQM?
TQ ?
z Information System can help firms achieve
their quality goals by helping them
z Simplify products or processes
z Meet benchmarking standards

z Make improvements based on customer

d
demands
d
z Reduce cycle time

z Increase the quality and precision of design and

production
ITM Lecture 7
Advanced Diploma (Thames College) 69

Software
So twa e Liable
ab e
z It is very difficult
difficult, if not impossible,
impossible to hold software
producers liable for their software products failure or
injury because it is only when software acts as a part
of a defective product that strict liability pertains.
z If the
h software
f is
i strictly
i l a service
i (not
( part off a
product), these laws do not apply.
z As part of a product, software is still considered to be
like books, which historically are protected from
liability claims by the First Amendment guaranteeing
freedom of expression.
ITM Lecture 7
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Information
o at o Tec
Technology
o ogy Management
a age e t

U i 19
Unit 19: Th
The IT Department
D

ITM Lecture 7
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Functions
Fu ct o s of
o IT
T Department
epa t e t
z Systems Development
z Operations
z Equipment Operations
z Production Support

z Technical Support
z End-User
E d U services
i
z Systems Programming
z Database Administration

ITM Lecture 7
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Systemss Development
Syste eve op e t
z The
Th purpose off the
th systems
t development
d l t
function is to develop p new applications
pp
and to maintain existing ones.
z The
Th systems developer
d l has
h to analyze
l the
h
application
pp area,, determine its
requirements, and design and program the
actual computer-based
computer based information system
system.

ITM Lecture 7
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Ope at o s
Operations
z There
Th r iis m
muchh lless abstraction
b tr ti n in
involved
l d when
h n
organizing the operational function for a
data-processing installation.
z The computer and associated machines must
be fun, and someone must schedule this;
essentially, that is the mission of operations.
z Equipment Operations
z Production Support

ITM Lecture 7
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Equipment
qu p e t Operations
Ope at o s
z Equipment operations means running the machine
and its peripheral equipment, keeping the printer
supplied
li d with
i h paper, mounting
i magnetic i tape onto
magnetic tape drives, and monitoring the
computer's ' console.
l
z In most installations data ppreparation
p is also one of
the responsibilities of operations.
z Since computer operations often run two or three
shifts, organization into these shifts is a key feature.
ITM Lecture 7
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Production
P oduct o Support
Suppo t
z Production support schedules the running
of the computer center and controls jobs
(
(programs) ) in
i terms off priorities,
i i i based
b d
p when output
upon p is required.
q
z In these respects, the manager of
computer operations will be implementing
the policies set by the data processing
i
installation
ll i manager.

ITM Lecture 7
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Technical
Tec ca Support
Suppo t
z This part of a computer center is meant to
support both systems development and
operations
i ffunctions.
i
z Technical support is divided into these key
areas:
z End-User
E dU SServices
i
z Systems Programming
z Database Administration

ITM Lecture 7
Advanced Diploma (Thames College) 77

End-User
d Use Se
Services
v ces
z Personnel
P l in
i this
thi group help
h l users gain i
p
access to computer-center facilities,
conduct training courses, and troubleshoot
when users have problems with their
computer support.

ITM Lecture 7
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Systemss Programming
Syste P og a g
z Here
H personnell iinstall
t ll the
th computer's
t '
p g system,
operating y tailor it and maintain it,
and improve the efficiency of application
programs.
programs

ITM Lecture 7
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Database
atabase Administration
d st at o
z The skill of setting up and administering the
organization's data base falls to this group.
z It is multifaceted assignment, which includes
establishing
estab s g thet e logical
og ca data requirements
equ e e ts ofo the
t e
enterprise; setting up the data base; controlling
security and providing backup to the data; and
helping the systems development staff use the
d iin ddesigning
data i i computer-basedb d iinformation
f i
systems.
ITM Lecture 7
Advanced Diploma (Thames College) 80
The Information Center Approach
pp
z It is necessary to The most common approach
to the management of End User Computing
(EUC) is the Information Center (IC) which
formalize the support to be provided by users.
z The
Th IC iis a uniti within
i hi the
h IT D
Department
which is specifically responsible for the EUC
support.
z Byy providing
p g dedicated support
pp personnel
p with
a separate budget, focused attention is ensured.

ITM Lecture 7
Advanced Diploma (Thames College) 81

Roles
o es of
o an
a Information
o at o CeCenter
te
z Advice
Ad i and
dCConsultancy
lt
z Training
z Procurement
z Define Standards

ITM Lecture 7
Advanced Diploma (Thames College) 82
Roles of an Information Center -
Ad i and
Advice nd C
Consultancy
n lt n
z Many IC are set up like a typical computer store.
store
z A user talk to the center consultant about computing
needs a product manager may also be involved if the
needs,
hardware or software requirements of the user go
beyond
y the consultant's expertise.
p
z Many IC run a hotline service to help end-users with
problems once an application
p pp is up
p and running.g
z Some centers will audit end-user applications on a
regular
g basis to ensure that theyy are workingg the wayy
they are supposed to.

ITM Lecture 7
Advanced Diploma (Thames College) 83

Roles of an Information Center -

Tr inin
Training
z Many end-users
end users needing knowledge about
computer technology to do their jobs more
effectively training has become a major priority -
effectively,
and a major expenses.
z IC training can be provided on an individual,
department wide, or company-wide basis.
z Training may be directed to a specific need or a
specific application (such as training the purchasing
department to use Excel to store and access
purchasing records)
ITM Lecture 7
Advanced Diploma (Thames College) 84
Roles of an Information Center -
Pr r m nt
Procurement
z Since the user or department will often acquire the computing
resources from its own budget, and not that of the MIS
department the center has little control over the final choices
maded by
b the
h user.
z Freedom of selection notwithstanding, the user must take into
account the fact that the center can,
can realistically,
realistically support only a
finite number of products.
z If the center supports only Microsoft Office,
Office and the user wants
Next Office, the user must bear complete responsibility for
training, advising, and dealing with any problems that might later
arise.
z It would be desirable for the IC to be part of the evaluation
committee for the acquisition of EUC products.
ITM Lecture 7
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Roles of an Information Center -

D fin Standards
Define St nd rd
z The Information Center should evaluate
user needs and arrive at a set of packaged
software
f for
f each h type off EUC C processing.
i

ITM Lecture 7
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Advantages
dva tages and
a d Disadvantages
sadva tages
z The IC approach
pp enables users to retain the autonomyy
to care for their own needs. Most end-users operate
under normal budgetary
g y constraints and are motivated
to spend funds wisely. If properly managed, the IC
provides some control over the unbridled p
p proliferation
of end-user systems.
z Some users may resent not having the complete
freedom to buy nay kind of software or hardware as
they see it. There will be some conflict of interests
between the objectives of the Information Centre and
those of any individual user.
ITM Lecture 7
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Thee Emergence
T e ge ce of
o the
t e CIO
CO
z The
Th Chi
Chieff IInformation
f ti Officers
Offi (CIO) is
i a
senior manager who takes part in business
strategy formulation and who can ensure that
the information strategy fits into and
complements the overall business strategy.
z This is reflective of the growing recognition
p
of the importance of information in the
pursuit of the company's strategic goals.
ITM Lecture 7
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Responsibilities
espo s b t es ofo the
t e CIO
CO
z The
Th Chi
Chieff Information
I f ti Officer
Offi (CIO) isi
the top
p executive in charge
g of information
technology and its usage.
z The
Th main i responsibilities
ibili i off the
h CIO are
described below :
z StrategicUse of IT
z Information Management

z Traditional Management Functions

ITM Lecture 7
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Responsibilities of the CIO -

Str t i Use
Strategic U off IT
z The
Th CIO mustt id
identify
tif ways ini which
hi h
information and information technology gy
are able to support the company's strategic
plans.
plans
z This can include supporting
pp gap particular
business activity, to actually developing a
new information-based
i f r ti b d pr product
d t fforr
customers.
ITM Lecture 7
Advanced Diploma (Thames College) 90
Responsibilities of the CIO -
Inf rm ti n M
Information Management
n m nt
z Information
I f ti is
i an important
i t t resource andd
especially
p y so in organizations
g which are
information intensive.
z The
Th management off information
i f i flows,
fl
processingg and p
p presentation is an
important responsibility of the CIO.

ITM Lecture 7
Advanced Diploma (Thames College) 91

Responsibilities of the CIO -

Tr diti n l M
Traditional Management
n m nt F Functions
n ti ns
z The
Th usuall managementt ffunctions
ti are also
l the
th
responsibilities of the CIO.
z These include budgeting and staffing of the
IT department
department.
z There will alwaysy be competing
p g demands on
the IT resources and the CIO must establish
the priorities of the IT staff and allocate
resources to areas that are more important.
ITM Lecture 7
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Information
o at o Tec
Technology
o ogy Management
a age e t

Unit 20: Information System

y
Planningg

ITM Lecture 7
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What is an Information Systems

Pl nnin (ISP)?
Planning
z With the advent of strategic systems,
systems information
systems planning took on new dimensions and required
new linkages with corporate strategic planning.
planning
z Mangers have had to become aware that uses of
computers can have
h significant
i ifi effects
ff on their
h i
organization's competitive position, and that
i f
information
i systems planning
l i needs d to be
b coupledl d
more closely with the goals of the organization.
z In fact, information systems planning, or lack of it, can
now affect business plans.
ITM Lecture 7
Advanced Diploma (Thames College) 94
Information Systems
y Planningg (ISP)
( )
z The long term-term
term term planning for computerized information
systems in order to meet corporate objectives.
z Cater for different corporate objectives,
objectives from introducing word
processing and other office automation products, to supporting
competitive measure to win greater market share.

ITM Lecture 7
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Contents
Co te ts of
o an
a ISP
SP
z The
Th IInformation
f ti Systems
S t Plan
Pl (ISP) willill
typically
yp y contain the followingg sections:
z Corporate Strategy
z Information
I f i Requirements
R i
z Current IT Installation

z IT Action Plan

ITM Lecture 7
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Contents of an ISP –
C rp r t Str
Corporate Strategy
t
z The
Th main
i points
i t off the
th corporatet strategy
t t
over the next 5 yyears will be outlined.
z These will be broken down into specific
corporate actions
i which
hi h may or may not
pp
be an opportunity y for IT involvement.

ITM Lecture 7
Advanced Diploma (Thames College) 97

Contents of an ISP -
Inf rm ti n R
Information Requirements
q ir m nt
z Future
F t information
i f ti needsd off the
th
organization
g will be described here.
z This will be based on the corporate
strategy andd other
h organizational
i i l
p
developments ((e.g.
g expected
p merger
g or
acquisitions).

ITM Lecture 7
Advanced Diploma (Thames College) 98
Contents of an ISP -
C rr nt IT In
Current Installation
t ll ti n
z The
Th existing
i ti IT hardware,
h d software
ft andd
communications p platforms will be
described here. In addition, the existing
staff and skill levels should also be
included.

ITM Lecture 7
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Contents of an ISP -
IT Action
A ti n Plan
Pl n
z This
Thi section
ti ddescribes
ib the
th overallll vision
i i off
how IT systems
y would look like in 3 years
y
time.
z It
I also
l prescribes
ib yearlyl targets to move
the IT setupp towards the ggoal.
z These in turn will be translated into
specific projects and actions.

ITM Lecture 7
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Applications
pp cat o s Backlog
ac og
z Each project have been initiated with a project
request.
z IT Steering
S i Committee
C i ddecides
id which
hi h projects
j are to
be approved.
z At any one time, certain applications development
projects would have been completed, others would
be on-going while the rest would not have started yet.
z The e applications
pp c o s portfolio
po o o o or p
project
ojec po
portfolio
o o iss thee
list of all application projects that are in the approved
plan for next year, plus ongoing projects.
ITM Lecture 7
Advanced Diploma (Thames College) 101

Applications
pp cat o s Backlog
ac og (co
(cont’)
t)
z Some companies practice a yearly evaluation of
project requests to decide, give the limited
resources andd the
h corporate strategic
i objectives,
bj i
which projects will proceed in the following
year.
z To assist in the decision
decision-making
making, the cost-
cost
justification is performed with financial ratios
lik payback
like b k andd Return
R t on Investment
I t t (ROI)
being used to assist in the ranking.
ITM Lecture 7
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Information
o at o Tec
Technology
o ogy Management
a age e t

U i 21
Unit 21: P
Project
j Management
M

ITM Lecture 7
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Taskss in P
Tas Project
oject Management
a age e t
z Managing an IT project encompasses
many tasks:
z Identification of Tasks
z Estimation
E tim ti n
z Allocation of Resources
z Scheduling

z Monitoring
M i i

ITM Lecture 7
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Tasks in Project Management -
Id ntifi ti n off Tasks
Identification T k
z All the tasks and deliverables must be
identified at a relatively high level of detail.
z It is not enough to simply identify the
ph
phases off th
the lif
life cycle.
l

ITM Lecture 7
Advanced Diploma (Thames College) 105

Tasks in Project Management -

E tim ti n
Estimation
z Each of the above tasks must be estimated
for effort and elapsed time.
z The total of the effort estimations is the
r ir d b
required budget.
d t

ITM Lecture 7
Advanced Diploma (Thames College) 106
Tasks in Project Management -
All ti n off Resources
Allocation R r
zA project team will comprise personnel
with different skills and experience.
z The right person must be allocated the
ri ht ttask.
right k

ITM Lecture 7
Advanced Diploma (Thames College) 107

Tasks in Project Management -

S h d lin
Scheduling
z Scheduling involves setting up a project
timetable which shows when the various
activities
i i i must take
k place.
l
z Gantt charts are commonly y used to show such
activities.

ITM Lecture 7
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Tasks in Project Management -
M nit rin
Monitoring
z Work actually done and
targets achieved must be
compared against the
project plan.
plan
z This will determine if the
project is on schedule or
if it is slipping behind.
behind

ITM Lecture 7
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Problems
P ob e s in Systems
Syste s Projects
P ojects
z Systems development and implementation projects
are seldom smooth sailing.
z A with
As i h projects
j iin other
h iindustries
d i or di disciplines,
i li
project sponsors, leaders and team members often
encounter difficulties in their projects.
z What are some of the p problems or challenges?
g
z Project Delays
z Cost Overruns
z Not Meeting Requirements

ITM Lecture 7
Advanced Diploma (Thames College) 110
Problems in Systems Projects -
Pr j t Delays
Project D l
z This is a common problem and is due to
either an over-optimistic estimation of
work (or perhaps where estimation was
not even done),
done) or lack of anticipation of
problems.

ITM Lecture 7
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Problems in Systems Projects -

C t Overruns
Cost O rr n
z Projects often seem to cost more than expected
z This is particularly so in in-house development
projects.
z There are a variety of reasons for this
this.
z Some of them are that there may not be a
proper change
h controll procedure,
d and
d that
h many
hidden costs are not factored into the original
cost calculations.

ITM Lecture 7
Advanced Diploma (Thames College) 112
Problems in Systems Projects –
N t Meeting
Not M tin Requirements
R q ir m nt
z In many cases
cases, when the finished system
product is shown to the user, the latter
says: "That's not what I asked for".

ITM Lecture 7
Advanced Diploma (Thames College) 113

Challenges
C a e ges in Systems
Syste s Projects
P ojects
z The most obvious aim of any systems project is to
ensure that the functional requirements are met.
z If the system does not even support the business,
business then
it is of little use.
z If we were to go beyondb d mere functional
f i l compliance,
li
there are certain qualities or characteristics of systems
that
h would ld set iit apart as an excellent
ll system.
z What are some of the challenges?
z Meeting Quality Requirements
z Strategic Use of Information Technology
ITM Lecture 7
Advanced Diploma (Thames College) 114
Challenges in Systems Projects -
M tin Q
Meeting Quality
lit Requirements
R q ir m nt
z It is sometimes difficult to write quality requirements but
important to do so.
z If we don
don'tt know how to state our vision of a high quality
product, how can we communicate this to the systems
developers?
p
z Similarly, systems developers face the challenge of
improving
p v g the systems
y that theyy develop
d v p in the area of
quality and performance.
z With increasing choices available to users, developers must
work hard to differentiate their product from others.

ITM Lecture 7
Advanced Diploma (Thames College) 115

Challenges in Systems Projects –

Strategic Use of Information Technology
z Organizations must learn to use
Information Technology in unique and
strategic ways.
z Instead
I t d off just
j t automating
t m ti labor-intensive
l b ri t i
work, IT should be used to change the way
business is done and thereby win
competitive advantage.
advantage

ITM Lecture 7
Advanced Diploma (Thames College) 116
Importance
po ta ce of
o User
Use Participation
Pa t c pat o
z As many employees as possible should be involved at the
planning stage of a new information system.
z During implementation,
implementation all employees,
employees and particularly
those who are directly involved, should be kept fully
informed.
z Every individual will want to know how their particular job
wouldd be
w b affected.
d
z The champion (usually the manager who initiated the
project) should enthusiastically support it and give strong
and clear leadership during the planning and
implementation
p stages.
g
ITM Lecture 7
Advanced Diploma (Thames College) 117

Organizational
O ga at o a Facto
Factorss
z Systems development does not occur in
isolation. It takes place in an organizational
setting.
i
z What are some of the organizational
g factors
which affect system development?
z Type of Business
z Corporate Culture

z Organizational Structure

z The Staff or Departments

p Affected
ITM Lecture 7
Advanced Diploma (Thames College) 118
Organizational Factors –
T p off Business
Type B in
z Differentindustries have their own
characteristics and style of working which
may have varying types of impact on
systems development projects.
projects
z For example, work in a hospital environment
tends to be very different from that in
advertisement.

ITM Lecture 7
Advanced Diploma (Thames College) 119

Organizational Factors -
C rp r t C
Corporate Culture
lt r
z Withina particular firm
firm, there may be a
strong corporate culture which also
influences systems projects.
z For example
example, some firms work very much by
consensus. In this environment, decision-
making
ki within
i hi the
h project
j may tend d to bbe
somewhat slow.

ITM Lecture 7
Advanced Diploma (Thames College) 120
Organizational Factors -
Or niz ti n l Str
Organizational Structure
t r
z Organizations which have many
hierarchical layers will be more
bureaucratic and slower to change.
z For example
example, the vision of the CEO may be
filtered or diluted before it reaches the
d l
development project
j team.

ITM Lecture 7
Advanced Diploma (Thames College) 121

Organizational Factors –
Th St
The Staff
ff orr Departments
D p rtm nts Affected
Aff t d
z The personalities which are involved in or
affected by a systems project must be
taken into consideration.
z Some
S m willill be
b very
r supportive
pp rti while
hil others
th r
will adopt a hands-off approach.

ITM Lecture 7
Advanced Diploma (Thames College) 122
Environmental
v o e ta Factors
Facto s
z Systems development is also affected by the
organization's external environment.
z Events and trends in business and technology
p on the systems
will have an impact y projects.
p j
z What are some of the environmental factors
which
hi h affect
ffe t systems
s stems development?
de elopment?
z Increasing Competition
z Rapid Technological Developments

ITM Lecture 7
Advanced Diploma (Thames College) 123

Environmental Factors –
In r in C
Increasing Competition
mp titi n
z Global communications and trade has
increased tremendously.
z Many companies have branches in many
parts of the world and demand that their
suppliers be able to service them on a
worldwide
ld id basis.
b i
z This means that information systems are
correspondingly much more complex.
ITM Lecture 7
Advanced Diploma (Thames College) 124
Environmental Factors –
R pid T
Rapid Technological
hn l i l D Developments
l pm nts
z Technology is changing very rapidly and
products are becoming obsolete at a faster
rate.
z The
Th expectation
p t ti thatth t a system
t m would
ld last
l t
for 5 or 10 years no longer holds since
improvements in technologies may offer
opportunities for enhancements.
enhancements

ITM Lecture 7
Advanced Diploma (Thames College) 125

Information
o at o Tec
Technology
o ogy Management
a age e t

U i 22
Unit 22: M
Management IIssues

ITM Lecture 7
Advanced Diploma (Thames College) 126
Business Process Reengineering
g g (BPR)
( )
z The fundamental rethinking g and
radical redesign of business
processes to achieve dramatic
i
improvements t in
i critical
iti l
contemporary measures of
performance,, such as cost,, qquality,
p y,
service, and speed
z The radical redesign of business
processes, organizational
structures, information systems,
and values of the organization to
achieve a breakthrough in
business results
ITM Lecture 7
Advanced Diploma (Thames College) 127

BPR
P Principles
P c p es
z Organize around outcomes, not tasks.
z Have those who use the output of the process perform the
process.
z Incorporate information processing work into the real work
that produces the raw information.
z Treat geographically dispersed resources as though they were
centralized.
z Link
i k parallel
ll l activities
i i i instead
i d off integrated
i d their
h i results.
l
When different
z P t the
Put th decision
d i i point i t where
h theth workk is
i performed,
f d andd
build control into the process.
z Capture data once
once, at its source
source.
ITM Lecture 7
Advanced Diploma (Thames College) 128
Impact
pact on
o BPR
P
z Changing the way work is done
z Impact across multiple departments
z May meet resistance

ITM Lecture 7
Advanced Diploma (Thames College) 129

Impact
pact on
o BPR
P
z Changing the way work is done
z Impact across multiple departments
z May meet resistance

ITM Lecture 7
Advanced Diploma (Thames College) 130
Outsou c g
Outsourcing
z A relativelyy new phenomenon
p in information
technology.
z Another management option to deal with high IT
costs.
z Arose out of management's ' concern that the
company should focus on its core competencies.
z Tried to concentrate their resources on areas
where they could add value to the customer.
z A business issue as much as it is a technical
de ision
decision.
ITM Lecture 7
Advanced Diploma (Thames College) 131

Considerations
Co s de at o s of
o Outsourcing
Outsou c g
z By performing these functions for many
customers, outsourcing vendors may have
more experience doing
d the
h workk andd greater
abilityy to negotiate
g qquantityy discounts with
hardware & software vendors
z Extensive
E i outsourcing i off IS activities
i i i may
mean having a very small IS department
limited to developing IS plans and
negotiating with outsourcing vendors
ITM Lecture 7
Advanced Diploma (Thames College) 132
Advantages
dva tages of
o Outsourcing
Outsou c g
z The main advantages in outsourcing parts of
the IT departments are:
z Cost savings as vendor
d has economies of scale andd
is more efficient.
z Service quality may be better

z The cost is more p predictable with outsourcingg

contract in place
z Limited IT resources may be used for more
strategic work.

ITM Lecture 7
Advanced Diploma (Thames College) 133

Common Cause of System

y Quality
Q y Problems

z Requirements Gathering
z Hardware issues
z Capacity requirements
z Use of appropriate methodologies
z Implementation
Impl m nt ti n iissues

ITM Lecture 7
Advanced Diploma (Thames College) 134
Total Q
Qualityy Management
g (TQM)
( Q )
z Total Quality Management (TQM) is a concept
that makes quality control a responsibility to be
shared
h db by allll people
l iin an organization.
i ti

ITM Lecture 7
Advanced Diploma (Thames College) 135

Total Q
Qualityy Management
g (TQM)
( Q )
z Everyone is expected to contribute to the overall
improvement of quality
z The Engineer who avoids design errors
z The Production Worker who spots defects
z The Sales Representative who presents the
product properly to potential customers
z The Secretary who avoid typing mistakes
z Quality improvements not only raise the level of
product and service quality,
quality but they also lower
costs.

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TQM vs. BPR
TQ P
z Total Quality Management (TQM) is more
incremental than Business Process
Reengineering (BPR) because
b its efforts
ff
focus makingg a series of continuous
improvements rather than dramatic bursts
of change.
change
z Sometimes, however, processes may have to
be fully reengineered to achieve a specified
level of quality.
quality
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Advanced Diploma (Thames College) 137

How ISS Contribute

Co t bute to TQM?
TQ ?
z Information System can help firms achieve
their quality goals by helping them
z Simplify products or processes
z Meet benchmarking standards

z Make improvements based on customer

d
demands
d
z Reduce cycle time

z Increase the quality and precision of design and

production
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Advanced Diploma (Thames College) 138
Software
So twa e Liable
ab e
z It is very difficult
difficult, if not impossible,
impossible to hold software
producers liable for their software products failure or
injury because it is only when software acts as a part
of a defective product that strict liability pertains.
z If the
h software
f is
i strictly
i l a service
i (not
( part off a
product), these laws do not apply.
z As part of a product, software is still considered to be
like books, which historically are protected from
liability claims by the First Amendment guaranteeing
freedom of expression.
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Questions & Discussion

ITM Lecture 7
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