managing inforamation system

Rahul De
MIS
MANAGING INFORMATION SYSTEMS IN BUSINESS,
GOVERNMENT AND SOCIETY
Copyright © 2018 by Wiley India Pvt. Ltd., 4436/7, Ansari Road, Daryaganj, New Delhi-110002

MIS : Managing Information Systems in Business, Government and Society by Rahul De
LEARNING OBJECTIVES
• Learn about challenges of managing the IT function
• The role of the CIO
• Vendor Management
• Understand IT Governance
2

MINDMAP OF CHAPTER TOPICS
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CHALLENGES OF MANAGING THE IT FUNCTION
The modern IT Environment is dynamic and changing, with technology leading
changes in both the competitive space and in the internal functions of the organisation.
Introduction of IT in the organisation, has -
• First-order impacts felt immediately, leading to increased speed, accuracy and
efficiency
• Second-order impacts arise by rendering manual processes redundant; they have
medium term impact; leading to restructuring of the organisation including re-
assignment and retraining of employees affecting the firm's competitive position
• Third-order impacts are felt over time, leading to industry restructuring
4

CHALLENGES OF MANAGING THE IT FUNCTION: MODERN IT ENVIRONMENT
5

CHALLENGES OF MANAGING THE IT FUNCTION : CENTRALISED VS DECENTRALISED
Centralization – Where an organisation's IT infrastructure is located and managed from
a central point. All functions and applications are accessed by departments and units
from this centre, making standardisation key
Decentralization – Where an organisation's IT infrastructure is distributed across
departments and functional units. Each unit manages IT on its own, hence is flexible
and supports innovation, allowing multiplicity of standards or no standards at all
IT infrastructure has to support the organisational culture
6

CENTRALISATION VERSUS DECENRALISATION
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CENTRALISED VS DECENTRALISED: STANDARDISATION
• A Standard is an externally defined set of parameters that specify hardware and
software in an organisation
• Data standardisation makes sharing easy, though it implies lock-in to specific
software, which in turn makes switching costs, in moving to other standards, very high
• Standardisation, when driven from the centre, excludes employees from the decision-
making process
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CHALLENGES OF MANAGING THE IT FUNCTION: IT SECURITY
Security is one of the most difficult challenges of managing modern IT infrastructure,
consuming up to 50% of the total IT budget
• External Threats – Malware – Viruses and worms; human threat; phishing
• Internal Threats
• Managing Security – Authentication and monitoring; issues of breach of privacy;
the need to have a security level not too high that it slows down the organisation;
but not too low as to make the organisation vulnerable to threats
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CHALLENGES OF MANAGING THE IT FUNCTION: TECHNOLOGY SELECTION
Technology most appropriate for the organisation is decided based on -
• Cost – the price at which the technology can be acquired
• Scalability – can it scale to meet the growth needs?
• Interoperability – ease of use with existing technology
• Security – is it secure w.r.t the organisation's activities
• Maturity – how mature is it? Is it well- tested? What's the associated risk?
• Upgrades – How will it mature further and how will it integrate with existing
technologies?
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TECHNOLOGY SELECTION CRITERIA
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VENDOR MANAGEMENT
12
Vendors are critical to organizations who manage their own IT
• Vendor Selection
• Initial Screening
• Capability presentations
• Site visits
• Technical and commercial bids

VENDOR MANAGEMENT
13
• Vendor Contracts and Service levels
• Service Level Agreements
• Service Guarantees
• Ongoing Relationship Management
• Point of Contact
• Reporting
• Vendor Retention and Termination
• Assessment on adequacy of services

THE ROLE OF THE CIO
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• The Chief Information Officer (CIO) participates in high-level decision making about
the management of the organisation's IT infrastructure and is responsible for -
• Information Systems (IS) Plan
• Vendor Coordination
• Technology Updates
• ROI of Technology – specifies the increase in revenues or other benefits realised
from an investment - the CIO computes it for the organisation's IT investments

IT GOVERNANCE
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• IT Governance – a high-level specification of who makes IT decisions in an
organisation
• IT principles- High-level ideas about how to use it
• IT Architecture – Blueprint of hardware, software and networks
• IT Services – Functions require throughout the organisation
• Business application – Specific application required for different departments and
functional needs
• IT Budgets – Money allocated for spending on IT16

IT GOVERNANCE: ARCHETYPES
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• IT governance archetypes refer to the models used for decision making, involving
different individuals and groups, to address IT Governance -
• Business Monarchy – All decision-making powers are held by business heads of the
organisation; the CIO may be included
• IT Monarchy – the head of IT solely makes decisions with other senior people from
the IT function

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• Feudal – Decisions are taken by the Unit or Divisional Heads
• Federal – Decisions made jointly by business heads and unit heads; may or may not
include IT Heads
• IT Duopoly – Decisions jointly taken by IT Heads and Business Unit Heads
• Anarchy -Need-based decisions taken by users at the lower level; no higher
oversight or control

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