5. 9.2.1 Centralized IS Location
• A centrally located IS provision may be a continuation of always having been centralized or
may be a re-grouping in response to pressures for cost savings.
Advantage Disadvantage
• Greater Control
• Efficient Approach
• Reduce duplicate effort
• Central IS function
• Little Scope
• Chance of dis-economies of scale
• Communication costs is high
6. The section continues…
• Scenario for centralized siting and control
System for senior management
Common Service
Small business unit
Vital integration
Non-critical response time
Consistency with objective
7. 9.2.2 Non-centralized IS location
Decentralized IS location:
The proliferation of multiple IS departments brings IS geographically
closer to the user community but perhaps no nearer in culture or
understanding.
Devolved IS location:
The distinction between decentralized IS and developed IS is of the
degree of dispersion of control and authority.
8. The section continues…
Advantage Disadvantage
• Data recording is closer
• Autonomy
• Low communication costs
• Focused nature
• Integration
• Higher aggregated costs
• Higher risks
• Complex
• Career path is limited
9. The section continues…
• Scenario for non-centralized siting and control
Requirement for speed and flexibility
Unique service
Consistency
10. 9.2.3 Commercializing the IS function
• Co-operative processing
• Client/server computing
• Distributed database
• File server
• Database server
• Downsizing
• Upsizing
• Distributed processing
11. 9.2.4 Outsourced IS
This option is often closely related to downsizing and divesting to
concentrate upon core business competencies and so the management
logic can come from lowering costs, reducing the dilution of
management attention, or to cover temporary skills gaps
12. 9.3 The Organization of IS
A taxonomy of the generations of organization structures for the IS resource, and
when they first emerged, is given below:
• Traditional approach 1960s
• Database driven 1970s
• Functional project groups 1980s early
• Information Centers 1980s middle
• Decision support 1980s late
• Externally focused 1990s early
13. 9.3.1 Traditional IS function
DP Manager
Operations
Manager
Shift Supervisor
Operator
Data
Preparation
Supervisor
Control Clerk Validator
Data Entry Clerk
System
Development
Manager
Senior
Programmer
Development
Programmer
Maintenance
Programmer
Senior Analyst
System Analyst
Invoice/Stock
System Analyst
Payroll
14. 9.3.2 Database-driven structure
This structure organizes the IS resource around the needs
of data storage. Data is removed from applications and that
allows a regrouping of development staff into data analysis
and design and systems development.
15. 9.3.3 Functional project groups
The next generation of IS organizations to emerge combines
analysts and programmers into business function-based
project groupings, for instance the financial systems team and
the production systems team.
16. 9.3.4 Information centers and decision support
Director of MIS
R&D Systems
development
Tools and
methods and
standards
Consultancy
services
Data and
systems planning
Information
center
Division N info
center
Division 1 info
center
Operations and
network
Division N data
center
Division 1 data
center
18. 9.4 Matching IS resource to Business Community
Three elements of new IS
19. This section continues…
Roles Functional Unit Responsibility
Infrastructure Roles Operations
Telecommunications
Technical Support
Database Administration
Systems Development
Corporate systems
Network provisions
Hardware and systems software
Corporate databases
Corporate and critical systems;
software tools
User support roles Internal Consultancy
Training
Strategy
Feasibility studies; external
services; Information Center
End-user and IS staff training
Planning and monitoring
technology
Diffusion
Management roles R&D
Administration
New technologies; forecasting
Accounts; personnel
management
20. 9.4.1 Symptoms of structural fit
• Enable Rapid development of systems
• Ensure that the IS function and the business operations work in harmony
• Enable IS to provide a tailored service to the user community
• Be cost effective
• Support the developments of technology infrastructures
• Minimize redundancy or oversights of developments
21. 9.4.2 Symptoms of structural misfit
• Continual conflict
• Continual complaints about IS
• Competitive decline
• Lack of interest in IS
• Skills problems
• High staff turnover
• Gaps and overlaps
22. 9.4.3 Ownership of data controversy
Must resolve before devolving or lose corporate asset.
Fig 9.18 Ownership of data
Centralization
Decentralization
IS function ‘owns’ all data
Functional area ‘owns’ section of
data
Tends to
Tends to
23. 9.4.4 Related issues
• IS assessment measures might include measures of:
Performance metrics
Development productivity metrics
User satisfaction metrics
User support metrics
Organizational health metrics
