Management Information Systems Chapter 13 Organizing the MIS Resources Copyright 1998-2002 by Jerry Post MIS 1
Outline Organizing & Managing Information Systems Resources MIS Roles MIS Jobs, Skills, & Salaries Outsourcing MIS Organization Centralization Decentralization Client-Server MIS 2
Hardware administration Software support Corporate data access Software development End user support Computing standards DB administration Advocacy Advocacy Database administration MIS Roles Corporate computing standards Software development Hardware administration Access to corporate data Software training and support Support end user development MIS 3
IS Management Salaries 2001 CIO/VP IS/CTO $165,000 Includes bonus Systems Development 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 Internet Manager $94,000 Webmaster 72,000 Application developer 70,000 EC specialist 74,000 EDI specialist 66,000 Networks Director $106,000 Manager 83,000 Administrator 60,000 Network analyst 40,000 Junior analyst 34,000 Security Manager $86,000 Administrator 72,000 Specialist 64,000 IS audit manager 81,000 IS audit staff 53,000 Database Manager $94,000 Administrator 89,000 Database analyst 67,000 User Support Manager $69,000 Help desk operator 40,000 PC technical support 43,000 Operations Director $106,000 Manager 74,000 Lead operator 42,000 Computer operator 35,000 http://careers.wsj.com http://www.computerworld.com MIS 4
International Salaries Systems Analyst salary Textile Worker per hour nonsalary Computer Programmer salary nonsalary nonsalary 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 MIS 5
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 Computerworld, 1998 Arnett and Litecky, 1994 MIS 6
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 5 Wireless COBOL COBOL MIS 7
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 Total (billion dollars) 3.4 42.9 60.6 83.5 88.4 MIS 8
Globalization, new competitors. Shorter product life-cycles, mass customization. Rapidly changing markets, flexible manufacturing. Cost cutting, staff cuts, loss of middle management. Pressure on profits. Need to focus on increasing revenues and decreasing fixed/semi-fixed costs. Need for flexibility and responsiveness. Desire to minimize amount of management time devoted to non-revenue generating functions. Outsourcing Forces Outsource non-revenue generate functions (staff/operations) Economies of Scope Want one vendor to provide multiple functions. Big Outsourcing Vendors & Big 6 Firms Economies of Scale - leverage expertise and methodologies. - invest in expensive technologies (state-of-the-art) - process-oriented approach MIS 9
Summary of MIS Organization Hardware Software Data Personnel Centralization Share data Control purchases Control usage Less duplication Efficient use of resources Compatibility Bulk buying discounts Easier training Ease of maintenance Easy backup Easier to share Less duplication Security control & monitoring Similar worker backgrounds Easier training Straightforward career path Specialized staff Easier to see & control costs Decentralization Less chance of breakdown Users get personalized machines Different user preferences Easier access Customization Not all data needs to be shared Control & politics Faster response to users More time with users Better understanding & communication Different career path MIS 10
Complete Centralization Hardware Data and software MIS personnel User departments MIS 11
Easier to share Data Expensive hardware (printers) Easier to control Purchases Usage Less duplication Efficiency less unused resources Hardware Centralization Advantages MIS 12
Compatibility Bulk buying discounts Easier training Ease of maintenance & upgrades Easy backup Easier to Share Less duplication Security control\monitoring Software Centralization Advantages Data Centralization Advantages MIS 13
Personnel Centralization Workers with similar backgrounds Advantages Easier training Straightforward growth path Specialized staff Easier to see/control costs MIS 14
Complete Decentralization MIS personnel are members of user departments Human Resource Management Finance Marketing Accounting MIS 15
Less chance of total breakdown Users get personalized equipment Hardware Decentralization Advantages Micros are cheaper than mainframes Software Decentralization Advantages Different users have different preferences Easier access Customization without affecting others Can overcome objections Lower prices minimize benefits of bulk purchases. Similarities of packages make training easier. Conversion tools enable sharing. MIS 16
Data Decentralization Advantages Not all data needs to be shared Easier find and access Control & politics MIS 17
Closer to users Faster response More time spent with users Better understanding/communication Different career path Personnel Decentralization Advantages MIS 18
Client-Server Shared Data & Software Server Hardware Transaction processing Corporate standards Network management Shared databases MIS support Central MIS staff: Operations, network and systems programmers MIS support Human Resource Management Finance Marketing Accounting MIS 19
Client-Server Benefits Immediate 1 to 2 years Users Better access to data Near-Term 3 to 5 years System Integration Tighter integration across the company Long Term 6 to 10 years IT Efficiency Resource utilization Increased participation Faster IT responses New technology Improved productivity Business process reengineering Adaptive systems MIS 20