Chapter 18Information ResourcesInformation Resources

Information SystemsInformation Systems

MANAGEMENT INFORMATION SYSTEMS 8/ERaymond McLeod, Jr. and George Schell

Copyright 2001 Prentice-Hall, Inc.18-1

Information Resources Information Resources Include:Include:

Specialists Specialists – Systems analysts, programmers, database Systems analysts, programmers, database

administrators, network specialists, operations administrators, network specialists, operations personnel, and otherspersonnel, and others

Hardware Hardware SoftwareSoftware UsersUsers DataData InformationInformation

Represents a largeorganizationalinvestment!

18-2

Information SpecialistsInformation Specialists

Most located in the information services Most located in the information services unitunit

There is a trend to locate specialists There is a trend to locate specialists throughout the firmthroughout the firm

Actual organization chart depends on the Actual organization chart depends on the needs of the firmneeds of the firm

18-3

A Functional Organization StructureA Functional Organization Structurefor Information Servicesfor Information Services

Networkmanager

Managerof computeroperations

Managerof systems

maintenance

Managerof systems

administration

CIO

Managerof systems

development

Systemsanalyst

Systemsanalyst

Operationspersonnel

Databaseadministrators

Networkspecialists

Programmers Programmers

18-4

Information ResourcesInformation Resources

Most are located in information servicesMost are located in information services Most that are centrally located are CIO’s Most that are centrally located are CIO’s

responsibilityresponsibility Those located in functional areas are the Those located in functional areas are the

responsibility of the area managerresponsibility of the area manager

18-5

Model of an IRISModel of an IRIS Input subsystemsInput subsystems

– AISAIS

– Information resources researchInformation resources research

– Information resources intelligenceInformation resources intelligence Output subsystemsOutput subsystems

– HardwareHardware

– SoftwareSoftware

– Human resourcesHuman resources

– Data and InformationData and Information

– Integrated resourceIntegrated resource

18-6

A Model of an Information ResourcesA Model of an Information ResourcesInformation SystemInformation System

Dat

abas

e

Accountinginformation

system

Informationresourcesresearch

subsystem

Informationresources

intelligencesubsystem

Hardwaresubsystem

Softwaresubsystem

Human resourcessubsystem

Data andinformationsubsystem

Integratedresource

subsystem

Inte

rnal

so

urce

s

Env

iron

men

tal s

ourc

es Users

18-7

Information Resources Information Resources Research SubsystemResearch Subsystem

Describes functions involved in special Describes functions involved in special research projects within the firmresearch projects within the firm

Performed by systems analysts interacting Performed by systems analysts interacting with userswith users

18-8

Information Resources Information Resources Intelligence SubsystemIntelligence Subsystem

Describes functions involved in gathering Describes functions involved in gathering information from elements in the firm’s information from elements in the firm’s environmentenvironment– GovernmentGovernment

– SuppliersSuppliers

– Labor unionsLabor unions

– Global communityGlobal community

– CustomersCustomers

– CompetitorsCompetitors

18-9

CIO ResponsibilitiesCIO Responsibilities Can be top-level executive who participates on Can be top-level executive who participates on

executive and MIS steering committeeexecutive and MIS steering committee Contributes to strategic planning for firm and IS Contributes to strategic planning for firm and IS

functionsfunctions Primary source of leadership for:Primary source of leadership for:

– Achieving and maintaining information qualityAchieving and maintaining information quality

– Keeping information resources secureKeeping information resources secure

– Planning for contingenciesPlanning for contingencies

– Keeping information costs under controlKeeping information costs under control

18-10

Achieving Quality Products Achieving Quality Products and Servicesand Services

1) Identify IS customers1) Identify IS customers– MIS steering committeeMIS steering committee– Use of a formal system works bestUse of a formal system works best

2) Define customer quality needs2) Define customer quality needs– Product quality needsProduct quality needs– Service quality needsService quality needs

18-11

IS Takes Six Basic Steps inIS Takes Six Basic Steps inAchieving Quality ManagementAchieving Quality Management

11

22

33

44

55

66

Identify IS customers

Define customer quality needs

Establish quality metrics

Define quality strategy

Implement IS quality programs

Monitor IS quality performance

18-12

Comparison of How IS and Middle-LevelComparison of How IS and Middle-LevelManager-Users Perceive Product QualityManager-Users Perceive Product Quality

Accurate 4.91 4.88 4.89Trusts output 4.90 4.86 4.87Works as specified 4.75 4.73 4.73User friendly 4.50 4.75 4.68Relevant 4.59 4.53 4.53Fast response time 4.12 4.55 4.42Meets all user needs 4.22 4.48 4.41No downtime 3.96 4.25 4.16Delivered on time 3.80 4.16 4.05Has user documentation 4.21 3.93 4.01Can be changed quickly 3.84 4.04 3.98Delivered on budget 3.45 3.67 3.61Low cost of operation 3.19 3.49 3.40Has programmer documentation 3.74 3.23 3.39Uses new technology 3.04 3.28 3.21

Dimension IS User AggregatePerceived Value

18-13

Achieving Quality Products Achieving Quality Products

and Services [cont.]and Services [cont.]3) Establish quality metrics3) Establish quality metrics

– Information Information productproduct quality quality– Information Information serviceservice quality quality

4) Define the IS quality strategy4) Define the IS quality strategy– Recruiting and trainingRecruiting and training– User-oriented systems development User-oriented systems development

» Market analysisMarket analysis» Product acceptance analysisProduct acceptance analysis» Task analysisTask analysis» Prototype testsPrototype tests» Operational Systems testsOperational Systems tests

18-14

See Table 18.2

Basic Competencies ExpectedBasic Competencies Expectedof IS Job Applicantsof IS Job Applicants

1. Concern for effectiveness 2. Initiative 3. Enthusiasm for work 4. Self-confidence 5. Concern with impact 6. Interpersonal astuteness 7. Conceptual thinking 8. Analytical thinking 9. Effective communication10. Flexibility

18-15

Special Attention to Human FactorsSpecial Attention to Human FactorsEnsures That Users’ Needs are Ensures That Users’ Needs are

IncorporatedIncorporatedinto Systems Designsinto Systems Designs1.

Planningphase

2.Analysis phase

3.Designphase

4.Implementation

phase

5.Use phase

Conduct amarket analysis

Conduct a productacceptance analysis

Conduct atask analysis

Conductprototype tests

Conductoperational

system tests

18-16

Achieving Quality Products Achieving Quality Products

and Services [cont.]and Services [cont.]

5) Implement IS quality programs5) Implement IS quality programs– Implementation varies with firmImplementation varies with firm

6) Monitor IS quality6) Monitor IS quality– Performance of IS specialists and the unitPerformance of IS specialists and the unit

18-17

Security ObjectivesSecurity Objectives

ConfidentialityConfidentiality AvailabilityAvailability IntegrityIntegrity

Current attention is focused on malicious software such as

computer viruses.

18-18

IntegrityIntegrityAvailabilityAvailability

InformationInformationUnauthorizedUnauthorized useuse

UnauthorizedUnauthorizeddisclosure disclosure and theftand theft

UnauthorizedUnauthorizeddestruction and destruction and denial of servicedenial of service

UnauthorizedUnauthorizedmodificationmodification

SecuritySecurity

ConfidentialityConfidentiality

Unauthorized Acts Threaten System Security Unauthorized Acts Threaten System Security ObjectivesObjectives

18-19

Identification

Authentication

Authorization

UserProfiles

Accesscontrol

files

DatabaseSoftwarelibrary

Auditlog

Reportwriter

Securityreports

Users

Access Control Functions18-20

Access ControlAccess Control Identification Identification

– What you know (password) or What you know (password) or – Where you are (terminal location)Where you are (terminal location)

Authentication Authentication – What you have (badge)What you have (badge)

Authorization Authorization – Level of useLevel of use

High-grade threats are from sophisticated computer criminals 18-21

Contingency PlanningContingency Planning

Emergency planEmergency plan Backup planBackup plan

– RedundancyRedundancy– DiversityDiversity– MobilityMobility

» Reciprocal agreementReciprocal agreement» Hot siteHot site» Cold siteCold site» Empty shellEmpty shell

18-22

Vital Records PlanVital Records Plan Electronic vaultingElectronic vaulting

– Day end backup of files electronicallyDay end backup of files electronically Remote journalingRemote journaling

– Transmission of transaction data as the transactions Transmission of transaction data as the transactions occuroccur

– Used to update remote database in batch form laterUsed to update remote database in batch form later Database shadowingDatabase shadowing

– Involves updating of duplicate database at remote site Involves updating of duplicate database at remote site as transaction occuras transaction occur

18-23

Cost-Reduction StrategiesCost-Reduction Strategies

ConsolidationConsolidation– Reduces number of separate locations for Reduces number of separate locations for

information resourcesinformation resources– Easiest to achieve in terms of information Easiest to achieve in terms of information

resourcesresources– More difficult by end-user computing needsMore difficult by end-user computing needs

18-24

Cost-Reduction Strategies Cost-Reduction Strategies [cont.][cont.]

DownsizingDownsizing– Migrating to smaller platformsMigrating to smaller platforms– Advantage of cost reductionAdvantage of cost reduction– Advantage of increased productivity with PCs Advantage of increased productivity with PCs

located in user areaslocated in user areas– Risk of lost securityRisk of lost security

18-25

Cost-Reduction Strategies Cost-Reduction Strategies [cont.][cont.]

OutsourcingOutsourcing– Data entry and simple processing (editing, Data entry and simple processing (editing,

formatting)formatting)– Contract programmingContract programming– Facilities management (FM)Facilities management (FM)– Systems integration (SI)Systems integration (SI)– Support for maintenance, service, or disaster Support for maintenance, service, or disaster

recoveryrecovery

18-26

Objectives of OutsourcingObjectives of Outsourcing

Manage costs betterManage costs better ReduceReduce ContainContain PredictPredict Obtain relief from systems maintenance so as Obtain relief from systems maintenance so as

to concentrate on new system developmentto concentrate on new system development Acquire needed expertiseAcquire needed expertise

18-27

Information Management Information Management in Three Pacific Rim in Three Pacific Rim

CountriesCountries Countries were U.S., Korea, and MexicoCountries were U.S., Korea, and Mexico Centralization versus decentralizationCentralization versus decentralization

– Most firms were centralizedMost firms were centralized CIO participation in strategic business CIO participation in strategic business

planningplanning– CIO has a long way to go before achieving CIO has a long way to go before achieving

status as a top-level executivestatus as a top-level executive

18-28

Information Management Information Management in Three Pacific in Three Pacific

Rim Countries [cont.]Rim Countries [cont.] Information systems planningInformation systems planning

– Most firms have IS planMost firms have IS plan– CIO is primarily responsibleCIO is primarily responsible

Sharing information resources with usersSharing information resources with users– In general, CIOs support end-user computing In general, CIOs support end-user computing

trendstrends

18-29

Proactive CIO StrategyProactive CIO Strategy

1) CIO must emphasize quality management of 1) CIO must emphasize quality management of the IS resourcethe IS resource

2) Achieve strong user ties2) Achieve strong user ties

3) Strengthen executive ties3) Strengthen executive ties

4) Assemble an IS management team4) Assemble an IS management team

5) Assemble staff competent in leading-edge 5) Assemble staff competent in leading-edge technologies technologies andand methodologies methodologies

6) Build an IRIS6) Build an IRIS

18-30

The Future of the CIOThe Future of the CIO Business computing is moving from centralized to Business computing is moving from centralized to

decentralized computing in terms of:decentralized computing in terms of:– EquipmentEquipment

– DevelopmentDevelopment

– Decision makingDecision making

CIO RolesCIO Roles– Big brotherBig brother

– Helping handHelping hand

– WatchdogWatchdog

– NetworkerNetworker

18-31

Equipment

Big brotherA

B Helping hand

D Network

WatchdogC

DecentralizedCentralized

Decentralized

Dev

elop

men

t Decentralized

Decisi

on m

aking

Centralized

Donovan’s Four Stages of Decentralized Donovan’s Four Stages of Decentralized ComputingComputing

18-32

SummarySummary Information resources located in IS are the Information resources located in IS are the

responsibility of the CIOresponsibility of the CIO IRIS is used to manage information resources IRIS is used to manage information resources

within an organizationwithin an organization CIO must: CIO must:

– Promote quality information products and servicesPromote quality information products and services

– Ensure security of ISEnsure security of IS

– Prepare for disastersPrepare for disasters

18-33

Summary [cont.]Summary [cont.] IS cost cutting considerationsIS cost cutting considerations

– ConsolidationConsolidation– DownsizingDownsizing– OutsourcingOutsourcing

CIO can be proactiveCIO can be proactive

18-34