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Experiencing MIS 9th by m kronenke chapter 11

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Chapter 11

Information Systems Management


"I Don't Know Anything About Doing Business in India."

• Team discuss outsourcing PRIDE development to India.
• Ownership of Ajit Barid (“Invincible Cloud”) not known.
• Successfully developed iOS for iPAD.
– Can they do Android?
• Company growing quickly, but is it well managed?
• Security, time risks?
• Bite the bullet and hire own programmers?

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Study Questions
Q1: What are the functions and organization of the IS department?
Q2: How do organizations plan the use of IS?
Q3: What are the advantages and disadvantages of outsourcing?
Q4: What are your user rights and responsibilities?
Q5: 2026?

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Q1: What Are the Functions and Organization of the IS Department?







Plan use of IS to accomplish organizational goals and strategy.
Manage outsourcing relationships.
Protect information assets.
Develop, operate, maintain computing infrastructure.
Develop, operate, maintain applications.

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How Is the IS Department Organized?

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What IS-Related Job Positions Exist?

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What IS-Related Job Positions Exist? (cont'd)

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What IS-Related Job Positions Exist? (cont'd)

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What IS-Related Job Positions Exist? (cont'd)

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Salaries for Information Systems Jobs

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Q2: How Do Organizations Plan the Use of IS?

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So What? Managing the IS Department

• Know factors driving IS standards and policies.
• Know user responsibilities and organization of your future profession.
• Help guide employees IS-related behavior.

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Ethics Guide: Privacy vs Productivity BYOD Dilemma

• New committee to provide input for company BYOD policy.
• Misconception: How to restrict mobile devices to improve productivity.
• IS staff role
– Users need guidance on acceptable/unacceptable use.
– Suggested “configuring” people’s personal devices.

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Ethics Guide: Privacy vs Productivity BYOD Dilemma (cont’d)

• Company security concerns
– Data theft
– Malware
• Employee security concerns
– Personal privacy
 Key loggers, monitoring software.
 Deleting personal files and programs/apps.
• Ethical to control devices employees purchased?

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Q3:



What Are the Advantages and Disadvantages of Outsourcing?

Process of hiring another organization to perform services.
Save costs, gain expertise.
Save direct/indirect management time and attention.





 Any value chain business activity can be outsourced.
“Your back room is someone else’s front room.” (Drucker)

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Popular Reasons for Outsourcing IS Services

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Risk Reduction






Caps financial risk.
Ensures quality or avoids substandard quality.
Less likely to pick wrong hardware, software, network protocol, or implementing tax law changes incorrectly.
Vendor’s responsible for managing risks.

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International Outsourcing



India





China and other countries, too.



Large, well-educated, English-speaking, labor cost 70-80% less than US.

Modern telephone technology and Internet-enabled service databases.
Customer support and other functions operational 24/7.

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IS/IT Outsourcing Alternatives


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What Are the Risks of Outsourcing?

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Benefits Outweighed by Long-Term Costs
Dangers







Unit fixed cost contract prevents economies of scale.
Vendor defacto sole source.
Changing pricing strategy.
No easy exit (tightly integrated vendor).
Difficult to know if vendor well managed.

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Q4: What Are Your IS Rights and Responsibilities?

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

Treat IS dept. employees
professionally.

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Q5: 2026?

• Internal hardware infrastructure moved to the cloud.
• Ubiquitous mobile devices at work.
• BYOD policies meet employer needs and strategies.
• Use of social media in true Enterprise 2.0 style.
• Social media support project management.
• IoT provides opportunity for innovation within company.

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Q5: 2026? (cont'd)

• IS depts. lose control of devices.
• IS department cultural change.
– CIO full-fledged member of executive suite.
– Key player for gaining competitive advantage.

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