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(1)

Management Information Systems

Chapter 13

(2)

Outline

¾

Organizing & Managing Information Systems

Resources

¾

MIS Roles

¾

MIS Jobs, Skills, & Salaries

¾

Outsourcing

¾

MIS Organization

™

Centralization

™

Decentralization

(3)

MIS Roles

Hardware

administration

Software

development

Support end user

development

Database

administration

Advocacy

Access to

corporate data

Software training

and support

Corporate

computing

standards

¾

Hardware administration

¾

Software support

¾

Corporate data access

¾

Software development

¾

End user support

¾

Computing standards

¾

DB administration

¾

Advocacy

(4)

Salaries 2001

IS Management

CIO/VP IS/CTO $165,000

Includes bonus

Database

Systems Development

Networks

Manager $94,000 Administrator 89,000 Database analyst 67,000 Director $123,000 Manager 88,000 Project manager 85,000 System analyst 79,000 Senior developer 74,000 Programmer/analyst 55,000 Junior programmer 45,000 Director $106,000 Manager 83,000 Administrator 60,000 Network analyst 40,000 Junior analyst 34,000

User Support

Manager $69,000

Help desk operator 40,000 PC technical support 43,000

Internet

Security

Manager $94,000 Webmaster 72,000 Application developer 70,000 EC specialist 74,000 Manager $86,000 Administrator 72,000 Specialist 64,000 IS audit manager 81,000

Operations

Director $106,000

(5)

International Salaries

Systems Analyst

Computer

Programmer

Textile Worker

salary

non-salary

salary

non-salary

per

hour

non-salary

United States

46,757

14,443

36,022

10,578

8.74

2.87

Japan

51,938

12,581

42,316

9,415

14.12

9.53

Germany

49,286

15,821

40,124

13,951

13.12

7.38

France

44,050

27,113

26,311

19,210

9.73

6.76

Britain

41,808

9,680

25,529

5,718

8.23

2.04

India

2,248

3,196

1,769

2,206

0.41

0.15

Mexico

20,794

15,057

14,917

11,161

1.68

1.25

Hong Kong

51,277

12,185

28,211

6,404

3.33

0.52

The Economist: 7/30/94

(6)

MIS Job Skills Needed

Skill

1998 Companies

(%)

1998 Salary

Premium (%)

1994

Job Ads (%)

Enterprise resource planning

17

Oracle (DBMS)

15

13

Groupware tools

14

UNIX

13

22

Networking

12

11

40

Cobol

11

12

19

Database management skills

10

13

28

Microsoft NT Server

9

11

AS/400

6

Internet experience/skills

6

11

Visual Basic

6

20

Project management

6

11

(7)

Skills in Demand

Rank

2001

1998

1994

1

ERP

ERP

Networking

2

Object engineering

Groupware

Database

3

Data warehouse and data

visualization

Database

UNIX

4

Groupware

Networking

Visual Basic

(8)

Outsourcing

Company

1991

1995

1997

1999

2000

IBM Global Services

0.4

17.7

24.6

35.0

37.0

EDS

1.2

12.4

15.2

18.7

19.2

CSC

0.4

4.2

6.6

9.4

10.5

Accenture

0.5

4.2

6.3

9.5

9.8

ADP

0.3

3.0

4.9

6.3

7.0

Affiliated Computer

0.16

0.4

1.2

2.0

2.1

Fiserv

0.23

0.7

1.0

1.4

1.7

Perot Systems

0.16

0.3

0.8

1.2

1.1

(9)

Outsourcing

Forces

Globalization, new competitors.

Shorter product life-cycles, mass customization.

Rapidly changing markets, flexible manufacturing.

Pressure on profits.

Need to focus on increasing revenues and decreasing fixed/semi-fixed costs.

Need for flexibility and responsiveness.

Outsource non-revenue

generate functions (staff/operations) Desire to minimize amount

of management time devoted to non-revenue generating functions.

Economies of Scale

- leverage expertise and methodologies.

- invest in expensive

technologies (state-of-the-art) - process-oriented approach

Economies of Scope

Want one vendor to provide multiple functions.

Cost cutting, staff cuts, loss of middle management.

(10)

Summary of MIS Organization

Centralization

Decentralization

Hardware Share

data

Control purchases

Control usage

Less duplication

Efficient use of resources

Less chance of breakdown

Users get personalized machines

Software Compatibility

Bulk buying discounts

Easier training

Ease of maintenance

Different user preferences

Easier access

Customization

Data Easy

backup

Easier to share

Less duplication

Security control & monitoring

Not all data needs to be shared

Control & politics

Personnel

Similar worker backgrounds

Easier training

Straightforward career path

Specialized staff

Easier to see & control costs

Faster response to users

More time with users

Better understanding &

communication

(11)

Complete Centralization

Data and

software

MIS personnel

Hardware

User departments

(12)

Hardware Centralization

Advantages

¾

Easier to share

™

Data

™

Expensive hardware (printers)

¾

Easier to control

™

Purchases

™

Usage

¾

Less duplication

(13)

Software Centralization

Advantages

¾

Compatibility

¾

Bulk buying discounts

¾

Easier training

¾

Ease of maintenance & upgrades

Data Centralization

Advantages

Easy backup

Easier to Share

Less duplication

Security control\monitoring

(14)

Personnel Centralization

Advantages

¾

Workers with similar backgrounds

¾

Easier training

¾

Straightforward growth path

¾

Specialized staff

(15)

Complete Decentralization

MIS personnel are members

of user departments

Marketing

Finance

Accounting

(16)

Hardware Decentralization

Advantages

¾

Less chance of total breakdown

¾

Users get personalized equipment

¾

Micros are cheaper than mainframes

¾

Different users have different preferences

¾

Easier access

¾

Customization without affecting others

¾

Can overcome objections

™

Lower prices minimize benefits of bulk purchases.

Software Decentralization

Advantages

(17)

Data Decentralization

Advantages

¾

Not all data needs to be shared

¾

Easier find and access

(18)

Personnel Decentralization

Advantages

¾

Closer to users

™

Faster response

™

More time spent with users

™

Better understanding/communication

(19)

Client-Server

Marketing

Accounting

Finance

Human Resource

Management

Central MIS staff:

Operations, network

and systems programmers

MIS support

MIS support

Shared Data

& Software

Server Hardware

•Transaction processing

•Corporate standards

•Network management

•Shared databases

(20)

Client-Server Benefits

Immediate

1 to 2 years

Users

Near-Term

3 to 5 years

System Integration

Long Term

6 to 10 years

IT Efficiency

Better access to data

Tighter integration

across the company

Resource utilization

Increased participation Faster IT responses

New technology

Improved productivity

Business process

reengineering

References

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