• What are the functions of the IS department?
• How do organizations plan the use of IS?
• What tasks are necessary for managing computing infrastructure?
• What tasks are necessary for managing enterprise applications?
• What are the advantages and disadvantages of outsourcing?
• What are your user rights and responsibilities?
What are the functions of the IS department?
• The major functions of a typical IS department
– Planning the use of information technology to
accomplish the organization’s goals and strategy.
– Developing, operating, and maintaining the
organization’s computing infrastructure.
– Developing, operating, and maintaining enterprise
– Protecting information assets.
– Managing outsourcing relationships.
• Each organization’s IS structure varies
depending on these factors:
– Competitive environment
– Other factors
Fig 11-1 Typical Senior-level Reporting Relationships
This organizational structure chart shows the typical top-level reporting
relationships. Depending on the organization, the Chief Information
Officer (CIO) may report to the Chief Executive Officer (CEO), the Chief
Operating Officer (COO), or the Chief Financial Officer (CFO).
• The Technology office, headed by the Chief
Technology Officer (CTO) investigates new
information systems technologies and
determines how the organization might
benefit from them.
• The Operations function manages the
computing infrastructure, monitors system
users, and responds to their problems. It
includes system and network administrators.
• The Development department manages the
process of creating new information systems
while maintaining existing information
systems. It includes analysts who work with
users, operations, and vendors to acquire and
install licensed software. It may include
programmers, test engineers, and technical
• If an organization uses outsourcing vendors, it
may have a department devoted to managing
its outsourcing relationships. It negotiates
outsourcing agreements with other
companies to provide equipment,
applications, and other services.
• Some companies have a
administration function that
is responsible for protecting
data and information assets
by establishing data
standards and data
management practices and
Information systems help a
business achieve its goals and
objectives and include five
software, data, procedures, and
Information technology focuses
on products, techniques,
procedures, and designs of
Planning the Use of IS
• The CIO is responsible for most of
these items. It’s a never-ending
process as organizations change,
grow, or merge with other
• The steering committee, a group
of senior managers from major
business functions, works with
the CIO to set IS priorities, make
decisions about major IS projects,
and serve as a communication
channel between users and the IS
What tasks are necessary for managing computing
• The IS infrastructure must mirror the
organization’s structure. That is, if the
organization itself is highly controlled and
centralized, then the IS infrastructure should
be also. If the organization is decentralized
with autonomous operating units, then the IS
infrastructure should support that
Monitoring & Prioritizing
• The IS department is responsible for creating, operating, and
maintaining the organization’s computing infrastructure for end-
users, networks, data centers, data warehouses, and data marts.
• The IS department must establish technology and product
standards and ensure end-users do not deviate from them. On the
other hand, IS configurations must support the type of work users
• The IS department must track user problems and monitor their
resolution. They assign a tracking number to the problem, enter it
into the queue according to its priority, and monitor the problem
until it’s resolved. CIOs and managers should also monitor problem
• The figure below shows a typical IS operations
group. Note all of the people necessary to
support an information system.
Fig 11-6 Organization of a Typical IS Operations Group
What tasks are necessary for managing
• If an organization uses enterprise applications, it may need support staff for managing
them. Either the IS department manages everything, or individuals and workgroups
manage their own applications. Enterprise applications include some functional
applications and all cross-functional applications including CRM, ERP, EAI, and SCM
• This figure provides a list of tasks involved in managing enterprise applications.
Fig 11-7 Managing Enterprise Applications
Administering Data Resources
Administering data resources is a very important function with two
Data administration, which pertains to all of an organization’s data assets.
Database administration, which pertains to a particular database.
A data administrator/database administrator supervises the entire data
This figure describes the responsibilities of data administration.
Fig 11-10 Example of Data Dictionary Fields
One of the responsibilities of data administration is to establish and
maintain a data dictionary. This figure is an example of some of the fields
found in a data dictionary.
What are the advantages and disadvantages of outsourcing?
• Outsourcing, the process of hiring another organization to perform a
service, can provide advantages like the ones shown in this figure.
• India is the most popular foreign outsourcer because of its large, well-
educated, English-speaking population who earn 20 to 30 percent less in
labor costs than their U.S. counterparts.
Fig 11-11 Popular Reasons for Outsourcing IS Services
International outsourcing is well-suited to 24/7 operations like customer
Some say outsourcing is a threat to U.S. technology leadership.
Everything can be Outsourced!
Fig 11-12 IS/IT Outsourcing Alternatives
This figure shows alternatives businesses have for outsourcing some or all
of their information system components.
Disadvantages to Outsourcing
There are a lot of risks to outsourcing information systems as this figure