MANAGEMENT INFORMATION

SYSTEM

Chapter 4

System Users and Developers

1

OVERVIEW

The Business Organization

IS Support for Organization

The information services

The information specialists

Trend from centralized to decentralized structure

End-User Computing

Benefits and Risks of End-User Computing

Systems Development Knowledge

Office Automation

Virtual Organization

The Societal Impact of Virtual Organization2

BUSINESS ORGANIZATION

A business organization is an individual or group

of people that collaborate to achieve certain

commercial goals.

Some business organizations are formed to earn

income for owners.

Other business organizations, called nonprofits, are

formed for public purposes.

Types are:

sole proprietorship,

partnership,

and corporation.

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INFORMATION SYSTEMS SUPPORT FOR

ORGANIZATION

IS have been developed to support the

entire organization, executives, and

business areas

Such business areas are:

finance,

information service,

human resource,

manufacturing,

and marketing.

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INFORMATION SYSTEMS ARE DEVELOPED

TO SUPPORT ORGANIZATIONAL LEVELS

AND AREAS

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INFORMATION SYSTEMS ARE DEVELOPED TO

SUPPORT ORGANIZATIONAL LEVELS AND

AREAS

In figure:

MIS intended to meet general information needs of

manager through out the firm.

Executive information system is designed for use by the

firm’s strategic level managers.

And the five information systems on the lower level

address the unique information needs of those business

areas.

Those information systems are tailored to physical

organization.

Physical resources are allocated to physical areas of firm.

Firm’s activities are conducted without physical location.6

INFORMATION SERVICES (IS) ORGANIZATION

IS is a unit of firm that is responsible to handle theinformation resources, also called IT department, orMIS unit etc.

Information resources:

Hardware,

Software,

Information Specialist,

Users,

Facilities,

Databases , and

Information.

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INFORMATION SERVICES (IS) ORGANIZATION

Information specialists: Employee whose full-timeresponsibility is the contribution for the availabilityof information resources in the firm.

System analysts Work with users to develop new systems and improve existing

systems.

Are expert at defining problems and in preparing writtendocumentations.

Programmers Use the system analyst’s documentation to code computer

programs.

Operators Run the large-scale computing environment, such as

mainframe computers and servers.8

INFORMATION SERVICES (IS) ORGANIZATION

Database administrators An information specialist who is responsible for the planning,

implementation, operations and security of databases.

Webmasters Is responsible for the content and presentation of firm’s web

site.

Generally have expertise in graphics, and design.

Ensure the communication between firm, partner andcustomer with the help of NA.

Network specialists Experts in the field of data communication/telecommunication,

also have web-based knowledge.

Responsible for establishing, maintaining, and updating thenetwork.

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THE INFORMATIONAL SERVICES ORGANIZATIONAL

STRUCTURE

Information specialists in information

services are organized in various ways.

In start, the centralized approach is used in

firms,

All information located in IT department/unit.

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TREND FROM CENTRALIZED TO

DECENTRALIZED STRUCTURE

Centralized approach:

Hierarchy.

System analysts and programmers are used to

developed new systems and maintenance of existing

system.

Manager is used to manage a group.

Other operations (DBMS & N/W unit)contributed in

development and maintenance.

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TREND FROM CENTRALIZED TO DECENTRALIZED

STRUCTURE

Decentralization introduces in 1980’s .

Resources and authorities allocated to business units.

Divisional information officer (DIO) was introduced to

manage information resources in areas.

Innovative

In 1990’s the centrally decentralized structure was

accomplish:

IS used to accomplish tasks related to IT resources and

business areas authority for strategic use.

Problems:

Prominent role of IT dept, fast technological change,

and lack of knowledge and skills about IT12

THREE INNOVATIVE STRUCTURES

Partner model

Information services works with business areas in using

IT to achieve business innovation.

Platform model

Information services will not initiate business

innovations, but will provide resources.

So that innovations can be accomplished by business

areas.

Scalable model

Resources must be obtained as soon as market

opportunities arise.

And must b shed quickly when those opportunities no

longer exists.13

A NETWORK MODEL OF INFORMATION SERVICES

ORGANIZATION

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Incorporates the features of all 3

models.

Visioning n/w enables CIO to

work with top level in strategic

planning.

Innovative n/w is provides

interface to CIO & business areas

for development of innovative

applications.

Sourcing n/w interfaces CIO with

vendors for the purpose of

acquiring information resources.

END-USER COMPUTING

End-user computing (EUC) is the development byusers of all or parts of their information systems.

EUC has 4 main influences:

The impact of computer education.

Education programs in school, colleges, anduniversities. Training programs for firm’s employees toimprove their IT skills.

The information services backlog.

Information services could not respond fast enough touser’s demand, and backlogs built-up with jobs waitingto go on the computers.

Low-cost hardware.

Prewritten software.15

BENEFITS & RISKS OF EUC

Benefits

Match capabilities and challenges.

Reduce the communication gap.

Risks

Poorly targeted systems.

Poorly designed and documented systems.

Inefficient use of information resources.

Loss of data integrity.

Loss of security.

Loss of control.16

EDUCATION CRITERIA, KNOWLEDGE, AND SKILLS

NEEDED FOR CAREERS IN INFORMATION SYSTEMS

Knowledge can be learned through formal courses

of study, individual effort as reading or observation.

Systems development knowledge

Computer literacy

Information literacy

Business fundamentals

Systems theory

Systems development process

Systems life cycle (SLC) and Systems development life

cycle (SDLC)

Systems modeling

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KNOWLEDGE REQUIREMENTS

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EDUCATION CRITERIA, …(CONT’D)

Systems development skills

Communications skills

Analytical ability

Creativity

Leadership

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MANAGING THE KNOWLEDGE REPRESENTED BY

THE FIRM’S INFORMATION RESOURCES

Firm’s information resources: Hardware

Software

Information specialists

Users

Facilities

Databases

Information

Valuable storehouse of knowledge: Software: stores knowledge in the form of processes and

procedures.

Databases: stores knowledge in the form of data and information.

Users: stores knowledge in the form of computer literacy,

development and modeling.20

MANAGING THE KNOWLEDGE REPRESENTED BY

THE FIRM’S INFORMATION RESOURCES

Office automation:

includes all of the formal and informal electronic

systems primarily concerned with the communication of

information to and from persons both inside and outside

the firm.

Word processing, email, fax, and electronic calendaring.

Shift from clerical to managerial problem solving.

First OA applications support clerks and secretaries.

Now professional and managers are computer literate

so that they are able to solve their problems.

Email to communicate,

Electronic calendaring to schedule meetings, and

Video conferencing to connect.21

THE VIRTUAL OFFICE

Virtual Office:

Firm’s work can be done every where employee is

located without physical location.

Telecommuting:

Telecommuting is working from a remote location outside

of a traditional office.

The remote location can be from home, a coffee shop, or

hotel room.

telecommuting is voluntary and may be terminated at any

time by either the employee or employer.

Telecommuting does not change the employee's salary, job

responsibilities and benefits.

Telecommuting means working from home full-time or

several days out of the work week.

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THE VIRTUAL OFFICE (CONT’D)

Hoteling:

is when the firm provides a central facility that can be

shared by employees as the need for office space and

support arises.

Advantages

Reduced facility cost.

Reduced equipment cost.

Reduced work stoppages.

Social contribution.

Disadvantages

Low morale.

Fear of security risks.23

THE VIRTUAL ORGANIZATION

Three I Economy is those industries that are most

attracted to the concept of the virtual office and the

virtual organization and those that add value in the

form of information, ideas, and intelligence.

The Human Element

Most important ingredient in the development and use

of information systems.

Main players

Users

Information specialists

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