MANAGEMENT INFORMATION SYSTEMS 8/E

Raymond McLeod, Jr. and George Schell

Chapter 18
Information Resources
Information Systems

18-1
Copyright 2001 Prentice-Hall, Inc.
Information Resources Include:
 Specialists
– Systems analysts, programmers, database administrators,
network specialists, operations personnel, and others
 Hardware
 Software
 Users
 Data Represents a large
organizational
 Information investment!

18-2
 Information Specialists

 Most located in the information services unit

 There is a trend to locate specialists throughout
the firm
 Actual organization chart depends on the needs
of the firm

18-3
 A Functional Organization Structure
for Information Services
CIO

Manager Manager Manager Manager

of systems Network
of systems of computer of systems
development manager
maintenance operations administration

Systems Systems Operations Database Network

analyst analyst personnel administrators specialists

Programmers Programmers

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 Information Resources

 Most are located in information services

 Most that are centrally located are CIO’s
responsibility
 Those located in functional areas are the
responsibility of the area manager

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 Model of an IRIS
 Input subsystems
– AIS
– Information resources research
– Information resources intelligence
 Output subsystems
– Hardware
– Software
– Human resources
– Data and Information
– Integrated resource

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 A Model of an Information Resources
Information System
Hardware
subsystem

Accounting
information Software
system subsystem
sources
Internal

Database
Information Human resources
Environmental sources

resources subsystem Users

research
subsystem

Data and
information
Information
subsystem
resources
intelligence
subsystem Integrated
resource
subsystem

18-7
 Information Resources
Research Subsystem
 Describes functions involved in special research
projects within the firm
 Performed by systems analysts interacting with
users

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Information Resources Intelligence
Subsystem
 Describes functions involved in gathering
information from elements in the firm’s environment
– Government
– Suppliers
– Labor unions
– Global community
– Customers
– Competitors

18-9
 CIO Responsibilities
 Can be top-level executive who participates on executive
and MIS steering committee
 Contributes to strategic planning for firm and IS
functions
 Primary source of leadership for:
– Achieving and maintaining information quality
– Keeping information resources secure
– Planning for contingencies
– Keeping information costs under control

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 Achieving Quality Products and
Services

1) Identify IS customers
– MIS steering committee
– Use of a formal system works best
2) Define customer quality needs
– Product quality needs
– Service quality needs

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 IS Takes Six Basic Steps in
Achieving Quality Management
1 Identify IS customers

Define customer quality

2 needs

3 Establish quality metrics

4 Define quality strategy

Implement IS quality
5 programs

6 Monitor IS quality
performance
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 Comparison of How IS and Middle-Level
Manager-Users Perceive Product Quality
Perceived Value
Dimension IS User Aggregate
Accurate 4.91 4.88 4.89
Trusts output 4.90 4.86 4.87
Works as specified 4.75 4.73 4.73
User friendly 4.50 4.75 4.68
Relevant 4.59 4.53 4.53
Fast response time 4.12 4.55 4.42
Meets all user needs 4.22 4.48 4.41
No downtime 3.96 4.25 4.16
Delivered on time 3.80 4.16 4.05
Has user documentation 4.21 3.93 4.01
Can be changed quickly 3.84 4.04 3.98
Delivered on budget 3.45 3.67 3.61
Low cost of operation 3.19 3.49 3.40
Has programmer documentation 3.74 3.23 3.39
Uses new technology 3.04 3.28 3.21
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 Achieving Quality Products
and Services [cont.]
3) Establish quality metrics
– Information product quality
– Information service quality
4) Define the IS quality strategy
– Recruiting and training
– User-oriented systems development
» Market analysis
» Product acceptance analysis
» Task analysis
» Prototype tests
» Operational Systems tests

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 Basic Competencies Expected
of IS Job Applicants

1. Concern for effectiveness

2. Initiative
3. Enthusiasm for work
4. Self-confidence
5. Concern with impact
6. Interpersonal astuteness
7. Conceptual thinking
8. Analytical thinking
9. Effective communication
10. Flexibility

See Table 18.2 18-15

 Special Attention to Human Factors
Ensures That Users’ Needs are Incorporated
into Systems Designs
Conduct a
1. market analysis
5. Planning
Use phase phase

2. Conduct a product
4. Analysis phase acceptance analysis
Implementation
Conduct
phase
operational
system tests
3.
Design Conduct a
phase task analysis

Conduct
prototype tests 18-16
 Achieving Quality Products
and Services [cont.]

5) Implement IS quality programs

– Implementation varies with firm
6) Monitor IS quality
– Performance of IS specialists and the unit

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Security Objectives
 Confidentiality
 Availability
 Integrity

Current attention is focused on

malicious software such as computer
viruses.

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 Unauthorized Acts Threaten System Security Objectives
Unauthorized
Information use

Unauthorized
disclosure
and theft
Confidentiality

Availability Integrity

Unauthorized Security Unauthorized

destruction and modification
denial of service
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 Users

User Identification
Profiles
Authentication

Access Authorization
Audit
control
log
files

Software Report
Database
library writer

Access Control Functions Security

reports
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 Access Control
 Identification
– What you know (password) or
– Where you are (terminal location)
 Authentication
– What you have (badge)
 Authorization
– Level of use

High-grade threats are

from sophisticated
computer criminals 18-21
 Contingency Planning
 Emergency plan
 Backup plan
– Redundancy
– Diversity
– Mobility
» Reciprocal agreement
» Hot site
» Cold site
» Empty shell

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 Vital Records Plan
 Electronic vaulting
– Day end backup of files electronically
 Remote journaling
– Transmission of transaction data as the transactions occur
– Used to update remote database in batch form later
 Database shadowing
– Involves updating of duplicate database at remote site as
transaction occur

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 Cost-Reduction Strategies

 Consolidation
– Reduces number of separate locations for
information resources
– Easiest to achieve in terms of information resources
– More difficult by end-user computing needs

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 Cost-Reduction Strategies [cont.]

 Downsizing
– Migrating to smaller platforms
– Advantage of cost reduction
– Advantage of increased productivity with PCs
located in user areas
– Risk of lost security

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 Cost-Reduction Strategies [cont.]

 Outsourcing
– Data entry and simple processing (editing,
formatting)
– Contract programming
– Facilities management (FM)
– Systems integration (SI)
– Support for maintenance, service, or disaster
recovery

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 Objectives of Outsourcing

 Manage costs better

 Reduce
 Contain
 Predict
 Obtain relief from systems maintenance so as to
concentrate on new system development
 Acquire needed expertise

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 Information Management in Three
Pacific Rim Countries
 Countries were U.S., Korea, and Mexico
 Centralization versus decentralization
– Most firms were centralized
 CIO participation in strategic business planning
– CIO has a long way to go before achieving status as
a top-level executive

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 Information Management
in Three Pacific
Rim Countries [cont.]
 Information systems planning
– Most firms have IS plan
– CIO is primarily responsible
 Sharing information resources with users
– In general, CIOs support end-user computing trends

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 Proactive CIO Strategy
1) CIO must emphasize quality management of the IS
resource
2) Achieve strong user ties
3) Strengthen executive ties
4) Assemble an IS management team
5) Assemble staff competent in leading-edge
technologies and methodologies
6) Build an IRIS

18-30
 The Future of the CIO
 Business computing is moving from centralized to
decentralized computing in terms of:
– Equipment
– Development
– Decision making
 CIO Roles
– Big brother
– Helping hand
– Watchdog
– Networker

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Donovan’s Four Stages of Decentralized Computing

Centralized
D Network

Decentralized Watchdog
C

Decentralized
Development

B Helping hand
ing
a k
m
o n
isi
c
De Big brother
A
Centralized Decentralized
Equipment

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 Summary
 Information resources located in IS are the
responsibility of the CIO
 IRIS is used to manage information resources
within an organization
 CIO must:
– Promote quality information products and services
– Ensure security of IS
– Prepare for disasters

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 Summary [cont.]
 IS cost cutting considerations
– Consolidation
– Downsizing
– Outsourcing
 CIO can be proactive

18-34