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IS 483 Lecture 3

IS 483 Lecture 3 . IS/IT History Governance. Agenda. Review from last session:  Topic 1 - Human Resource Management      The 6 IT-HRM Components

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IS 483 Lecture 3

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  1. IS 483 Lecture 3 IS/IT History Governance Lecture 2 Sep 26 2005

  2. Agenda • Review from last session:  Topic 1 - Human Resource Management     The 6 IT-HRM Components • Consider in this session: Topic 2 - IS/IT History and Governance   IT Organization Models    IT Governance Issues Managerial Tools and Mechanisms Lecture 2 Sep 26 2005

  3. Team Exercise • You have just become the manager of the help desk, your first managerial position.  Your background has been as a lead analyst on the enterprise suite that is used by 90% of the firm (only the Anchorage location has not gone online). There are 12 people in the help desk group that report directly to you.  Based on last week’s interviews you have learned the following: • (see last week) you have learned the following: Lecture 2 Sep 26 2005

  4. Team Exercise (continued) * (came with a merger) --  poorly motivated because their salary and benefits were not upgraded when merger occurred.  ** are in process of training on the 8 applications. Last year at this time, there were 14 experienced help desk professionals handling 85% of today's volume.  They want to know your HR plans on:  retaining and limiting turnover, career development,  training,  compensation,  performance appraisal, & hiring plans.  What is your strategy – your priorities and why?. Lecture 2 Sep 26 2005

  5. Team Exercise • How would you go about determining your resource strategy – • What kind of help desk staff do you want? • When do you want to get there? • What are the priorities among the 6 HRM tasks: retaining and limiting turnover, career development,  training,  compensation,  performance appraisal, & hiring plans? Lecture 2 Sep 26 2005

  6. Exercise for this Week – Graded--DL • The DL students are to listen to the answers that each student gives to the discussion questions – they are then to post a one page paper to the COL assignments section (Hmwk #3) in which the DL student tells the reader for each discussion question (see next slide) 1) which answer was the most compatible with his/her own views on this week’s readings and why2) which answer was the least compatible with his/her own views on this week’s readings and why. • DL students post this paper to COL on or before next week’s session Lecture 2 Sep 26 2005

  7. Exercise for this week -- Graded Each member tells the class what they wrote on : • 3.1~ What impacts did the introduction of distributed IS have on the corporate or central IS department in a company which had been decentralized? which had been centralized? •  3.2~ When (in what era) and why did organizations start help desks? •  3.3~ Find a company (ideally one that is familiar to you):      Do you know or can you find out what the company's the strategic objective and issues are?      Was it easy of difficult to find out?       Do you know or can you find out what are considered the most significant processes?     Was it easy or difficult to determine? What inferences can you make about the company's strategic focus? Based on the comments made by others in the class, INCLASS students now revise their paper and post to the COL for HMWK #3a on or before next week’s session. Lecture 2 Sep 26 2005

  8. Short History of IT in Organizations • The Eras of IT Revolutions --  Short History of IT Table <<The Eras >> • Mainframe  << 1950's -- 1975 • Decentralized  << 1975 -- 1985 • Distributed  << 1985 to 1997   • Internet  << 1997 to ?? Lecture 2 Sep 26 2005

  9. The Dimensions • Dominant Technology Hardware • Dominant Technology Software (operating systems and applications) • IT Resources - Organizational Model Used • IS Development - Organizational Governance Model • Management of Corporate Information • Management of Communications • Tools for IT Pros • User Interface Lecture 2 Sep 26 2005

  10. Before IT Began • Dominant Technology Hardware  --Tabulating Equipment/Adding Machines/Typewriters/Telephones • Dominant Technology Software  -- On tabulating equipment -- wired boards which were "physical" programs (OS and applications) • IS/IT Users - Organizational Model Used – No IT but Large Functional Departments organized around key resources such as files • IS Development --  Did not exist • IS Organizational Structure/Governance–   Did not exist • Management of Corporate Information –   Paper files containing memos. reports etc. kept in cabinetsFirm Organizational Structure--  Functional   • Management of Communications  --  Telephone switchboards reporting to the administration exec, Carbon paper used for making copies of memos distributed through inter-office mail • Tools for IT Pros  --  None • User Interface --  None Lecture 2 Sep 26 2005

  11. Now here’s what happened Lecture 2 Sep 26 2005

  12. Dominant Technology -- Hardware • MainframeCPUs from IBM(80-90%), Honeywell, Burroughs, GE, Sperry-Rand, Control Data Corporation, Amdahl, etc. • Decentralized Minicomputers (cpu’s) from Data General, DEC, HP, IBM, etc.     -- the minis cover functional department needs while the central      mainframe is reserved for corporate financial applications • DistributedSystems are servers linked to PCs and Workstations using an open architecture where information and the application can be distributed on several servers. Enterprise databases become common. • InternetSoftware links PCs using TCP/IP protocol over communication lines through ISPs      (Internet Service Providers) Lecture 2 Sep 26 2005

  13. Dominant Technology -- Software • Mainframe now operating systems and applications exist)Operating System and Utilities -- hardware vendor supplied Application software --- firm's IS department developed using 3RD generation     language compiler software supplied by hardware vendor • Decentralized Starts same as mainframes -- soon software comes from 3rd party vendors  Operating System from vendor   Utilities such as source program libraries from 3rd party vendors   Applications such as Payroll now from 3rd party vendors -    then customized systems from 3rd party vendors for department function • Distributed Started with 3rd party vendors and internal IS developers  -- soon went to packaged enterprise systems from SAP, PeopleSoft, JD Edwards, etc.     requiring use of consulting implementers  -- Internal IT developers responsible for interfaces to existing legacy applications. • Internet Web based systems -- much is outsourced to web developers Lecture 2 Sep 26 2005

  14. IS/IT Users Organizational Models • Mainframe Still Large Functional Departments but now located near the central computer resources as well as near the paper files. See management of corporate information below for user interfaces • Decentralized The users are no longer organized around common paper files and near central computer resources -- now computer is within the functional department and user manager is also responsible for IT. • Distributed Departments are now start to organized internally around their principal processes • Internet Users organizational model is not changed directly through the internet but it does allow more telecommuting Lecture 2 Sep 26 2005

  15. IS Development Structure • Mainframe Done by an in-house group consisting of application programmers, system engineers, systems analysts often these individuals originally came from ranks of tabulating equipment operators. These groups worked for different managers whose primary responsibility was functional efficiency -- then in middle of era in-house group organized into projects under a project manager • Decentralized Functional user department purchases application software and it best sources customization. IS professionals perform maintenance -- they are either in functional department or IS. • Distributed IT Packaged enterprise software becomes the norm with IT dept project teams providing interfaces to legacy systems • Internet Web development best sourced. Lecture 2 Sep 26 2005

  16. IS Governance • Mainframe System engineers report to computer operations manager, application programmers report to programming manager, system analysts report to systems manager. Managers report to a Data Processing VP • Decentralized IT personnel are embedded in functional user area. • Distributed IT development personnel are usually located near Data Center but telecommuting common • Internet Development personnel organized on project basis and usually located near web sponsors. Lecture 2 Sep 26 2005

  17. Management of Corporate Information • Mainframe The information of a transaction is now captured on punched cards which is processed in a daisy chain fashion by a number of mainframe functional systems, They produce reports that are kept in the functional departments. Rather than having a multipart form travel around the corporation -- data travels from functional application to application on the mainframe with each keeping master files of functional information, Later, in MF era, online corporate databases become common. See user interface below. • Decentralized Corporate databases become the norm with departmental databases residing on departmental mini computers linked through file swapping - not linked electronically. • Distributed Enterprise databases now become the goal -- Email becomes norm • Internet See Distrib. - net affects user interfaces and usually tie into distributed systems. Lecture 2 Sep 26 2005

  18. Firm Organizational Structure • Mainframe Functional structure in beginning but later product structure takes off in consumer product firms. As firm grows larger then divisional structure • Decentralized Same. • Distributed Some reorganization along process lines -- particularly for “back office” operations. Org flattens with fewer managers needed because of email and collaborative technologies • Internet Structure is not tied to proximity to IT infrastructure Lecture 2 Sep 26 2005

  19. Communications Management • Mainframe PBX, photocopiers (Xerox) • Decentralized minis are standalone using tapes shuffled from corporate M/Fs to departmental minis • Distributed servers are able to talk to each other over communication lines using routers, modems, etc. • Internet TCP/IP is the protocol tying all together. Lecture 2 Sep 26 2005

  20. Tools for IT Professionals • Mainframe very poor -- memory dumps, file dumps, hex/octal calculators • Decentralized symbolic debuggers become common, operational tools increase functionality • Distributed debugging aids become more sophisticated, operational tools lag behind M/Fs • Internet Similar to Distrib above Lecture 2 Sep 26 2005

  21. User Interfaces • Mainframe hand coded forms are input to keypunch machines that generate punched cards that are input to application programs which generate printed reports that are sent to user. • Later, using dumb terminals users can input information directly into the computer and receive reports printed on the screen. • Decentralized Common inputs -- keypunched cards, keyed tapes, keyed dumb terminal and Common outputs -- printed reports and screen reports. • Distributed Most input is keyed on GUI enabled PCs and then processed on server and screen report is output • Internet Most input is keyed on GUI enabled PCs and then processed on server and screen report is output Lecture 2 Sep 26 2005

  22. Conclusions • What forces drove the shift from: • manual to mainframe? • mainframe to decentralized? • decentralized to distributed? • distributed to internet? • What basic forces drive most technological change?  Time, money, power, romance Lecture 2 Sep 26 2005

  23. Did the signature technology for an era have an: • Impact on user areas' structure/governance, or how the user area was designed? • Impact on user areas' linkages ( that is, the means that  linked together user areas, communicated and transferred things)? • Impact on user areas' information flows (that is, the path that information now took, and the quality and quantity of information flows? • Which eras had a "killer app" (something so popular that everyone has to have it), and what was the killer app? Lecture 2 Sep 26 2005

  24. IT/IS Organizational Models Lecture 2 Sep 26 2005

  25. Placement Organizational models are the basic ways that people structure the IT function within an organization.  Typically placement of computing & communication resources and the placement of IT personnel are the most important. •  Location of computing resources  • Centralized  • Decentralized  • Distributed  •    Placement of IT Personnel  • Aligned to User areas • Aligned to computing resources Lecture 2 Sep 26 2005

  26. Information Technology Service Management (ITSM) "Because one of the primary objectives of ITSM is to maintain stability in the production  environment while accommodating frequent and complex change, configuration  management and change management processes are often the hub around  which all other processes orbit."  From An Introduction to IT Service Management  Lecture 2 Sep 26 2005

  27. ITSM Where gray is currently done at state-of-art facilities(D) & (E) are future trend What can you surmise is the strategy on IT service when a firm implements this model?-- cost to be minimized-- value to be optimized Lecture 2 Sep 26 2005

  28. Some Other Organizational Models The Functional Alignment  -- Traditional System Delivery Approach Lecture 2 Sep 26 2005

  29. Functional IT Alignment Lecture 2 Sep 26 2005

  30. Project/Product IT Alignment Project -Alignment: Organizing IT personnel by tasks and services around outcomes. Lecture 2 Sep 26 2005

  31. Project IT Alignment Lecture 2 Sep 26 2005

  32. Matrix Alignment • Two managers for the team • One manager represents IT • Other manager represents functional area Lecture 2 Sep 26 2005

  33. Vertical Leadership: Information Systems  Standards: How will the task be done?  Logistics: Where will the task be done?  Resource Mgt.  Who will do the task?  IT Architecture How well has functional input been integrated into business unit efforts? Horizontal Leadership: Business/Operations Division Need Identification What is to be done? Project Management When will the task be done? Business Case Why will the task be done? Budget How much money is available? Quality Control How well has the total effort been done? Division of Labor in Matrix Lecture 2 Sep 26 2005

  34. Matrix Alignment Issues • Not aligned between horizontal and vertical dimensions • Goals • Objectives • Unclear or Un-communicated • Key Result Areas • Critical Success Factors • Unknown or Unclear priorities • Unknown or Unmanaged resource constraintsWhat the matrix managers need to resolve, communicate and manage together Lecture 2 Sep 26 2005

  35. Tools and Mechanisms Policies BudgetsService Level AgreementsRequest for Proposals Lecture 2 Sep 26 2005

  36. Policies • Besides structure, policies are a key managerial tool. • A policy is "a course or principle of action adopted by an enterprise to ensure its  affairs are conducted prudently and appropriately." (Mahoney) Lecture 2 Sep 26 2005

  37. Policies cover IT activities on: • Sourcing • Security • Data Privacy • Quality • Operations • Contractor/Employees • Procurement • Desktop Environment • Electronic Communications Use • Behavioral Expectations Lecture 2 Sep 26 2005

  38. Budgets Cover: • Personnel • Hardware • Software • Telecom services • Supplies • Travel and entertainment • Depreciation • Physical plan • Outside services Lecture 2 Sep 26 2005

  39. Budgets • Budgeting is assigning specific amounts of money to specific departments within a company for a fiscal year. • Usually starts 2 – 3 months before start of the fiscal year when • First step – estimating amt you plan to spend during the upcoming 12 months • Start with an overestimate – • Can later cut • Can handle unanticipated expense • Increases likelihood of staying within budget Lecture 2 Sep 26 2005

  40. Budgets • Superiors question/approve budget • Accounting reports on budgetary spending with variances • Revisions are often needed • Defending budget is important skill • Spending • Capital expenditure where useful life is several years • Expense item where useful life is done on few months. • Accounting dept makes choice. Lecture 2 Sep 26 2005

  41. Factors that affect Budgets • Growth • Technological change • Staff • Software maintenance • Hardware maintenance contracts • Time and material contracts • Warranties Lecture 2 Sep 26 2005

  42. Infrastructure Lecture 2 Sep 26 2005

  43. Inventory • Hardware • Server Software Inventory • Communications Facilities • Vendor list • Support services • To determine over/under utilizes resources Lecture 2 Sep 26 2005

  44. Users • Find them • Find out their needs • Find out who boss thinks they are Lecture 2 Sep 26 2005

  45. Downtime • Minimize • Estimate • Schedule • Announce Lecture 2 Sep 26 2005

  46. Testing • Test environment • Test versions • Test to Production Process • Formal steps • Formal approvals • Safeguards built into process • Legacy system problems Lecture 2 Sep 26 2005

  47. TCO and Asset Management • TCO = hardware + software+ support cost + network facilities + training + administrative + money costs • Asset management is the process of minimizing TCO Lecture 2 Sep 26 2005

  48. Next Week • http://facweb.cs.depaul.edu/nsutcliffe/483-00Currwork/LinksWeekly.htm#4 Lecture 2 Sep 26 2005

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