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SMU CSE 7360 - Managing IT in the 1990s

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Managing IT in the 1990s A partnership among three constituenciesThe Management FrameworkIT Channels of DistributionThe IT Product LineThe IT ConsumerChanges in Consumer CostsFactors Influencing the Evolving IT EnvironmentPhases of IT AssimilationBalancing Hardware / Data DistributionArchitecture: A Plan For the Structure of IT CapabilitiesLevels of an IT ArchitectureComponents of an IT ArchitectureSample IT ArchitectureThe Ten Commandments of Information TechnologyManaging IT in the 1990sA partnership among three constituenciesGeneralManagementITManagementUserManagementThe Management FrameworkCompanySeniorManagementEnvironmentCIOMIPS DirectorD.P. ManagerUsers(Managersand Staff)ITStaffIT Channels of DistributionDistribution Factor The Past The FutureDevelopment by central IT Heavy Significant but smaller percent of totalDirect purchase of hardware / software by user Limited MajorService source for individual user Limited to service from Can obtain powerful independent system large, shared systemService bureaus Sell time Sell products and time bundled togetherUse of external databases via time-sharing Limited MajorNumber of software and processing services A few; crude ManySoftware development by users Limited Major (affiliated by packages and user- friendly languages)Reliance on external contract analysts / Very significant More significant; full outsourcing is a real programmers alternativeThe IT Product Line Focus Factor The Past The FutureProduct obsolescence Developing new products Heavy maintenance of old products to meet challenges of obsolescenceSource Most products manufactured inside Significant percent sourced from outsideDominant economic constraint Capital intensive (hardware; economy Personnel intensive (economy of skill( of scale)Product mix Many large, few medium, many Some large, many medium, thousands of small products small productsProfits / benefits Good return on investment Many projects have intangible benefitsNew-product technologies New technologies New technologies and regroupings of old onesServices Structured, such as automated Unstructured, such as executive decision accounting and inventory support systems and query systems controlThe IT Consumer Focus Factor Older YoungerExperience with established Experienced Inexperienced technologiesAttitude toward newer Leery Enthusiastic but unsophisticated (often they technologies do not recognize their lack of sophisticationVisibility Identifiable as consumers Often unidentifiable as consumers; numerous at all levels in organizationsAttitude toward IT unit Willing to accept IT staff as experts Many are hostile because they want to develop their own solutionsSelf-confidence Low confidence in their own abilities High confidence in their abilities and (often cautious because of cost) judgment (may be unwarranted)Turnover rate High HighChanges in Consumer Costs Cost to the Consumer Cost Factor The Past The FutureHardware Very expensive Very expensiveEconomies of scale Major in large systems; user Limited in large systems; user stand-alones stand-alones not feasible very attractive in most casesSoftware systems development Expensive Less expensive in some casesSoftware acquisitions Limited cost-effective outside Attractive cost-effective opportunities opportunitiesDevelopment and production Hard to estimate Hard to estimateMaintenance Underestimated SoaringFactors Influencing the Evolving IT EnvironmentBusiness Environment TechnologyThe Evolving IT EnvironmentSociopolitical Environment PeoplePhases of IT AssimilationPhase 1Decision to invest andproject initiationStagnationBlock APhase 2Technology learningand adaptationFailureSuccessStagnationBlock BNarrowly focused andnot marketedSuccessPhase 3Rationalization andmanagement controlStagnationBlock CPhase 4Widespread technologytransferToo efficiencydominatedSuccessBalancing Hardware / Data DistributionPressure Toward Increasing the Hub Toward Increasing Distribution Management Control More professional operation. User control.Flexible backup. User responsiveness.Efficient use of personnel. Simpler control.Improvement in local reliability.Technology Access to large-scale capacity. Efficiency of small scale.Efficient use of capacity. Reduction of telecommunications costs.Data Multiple access to common data. Easier access.Assurance of data standards. Fit with field needs.Security control. Data relevant to only one branch.Professional services Availability of a specialized staff. Stability of work force.Reduced turnover disruption. User career paths.Organizational Fit Corporate style: centralized. Corporate style: decentralized.Corporate style: functional Business need: transnationalsIT centralized from the beginning.Architecture:A Plan For the Structure of IT CapabilitiesWhy Do We Need an IT Architecture?• Facilitate decision making on specific technology acquisitions• Ensure compatibility of IT and business strategy• Improve likelihood of IT integration and interconnectivity• Define a framework for control• Influence user decision making concerning ITLevels of an IT ArchitecturePrinciples Beliefs about the way IT will be managed (e.g., a multi-vendor environment)Models Verbal or graphic pictures of the IT structure (e.g., ITarchitecture)Standards Preferences for particular vendors or industryprotocolsComponents of an IT ArchitectureOrganization Structures and processes for the human supportof computing and communicationsApplications Specific computer programs and how they arecreated and maintainedTools Software packages that enable rapid developmentof applicationsInformation Information assets of the firmTechnical Hardware, systems software, and communicationsInfrastructure linksSample IT ArchitectureApplicationsInformation Analysis(e.g. Lotus 123G)Information Packaging and Delivery(e.g. Commander EIS)Communications(e.g. E-Mail, Conferencing)Knowledge-BasedSystems(e.g. Expert System)Application Development(e.g. CASE)ToolsFound-ationCommunicationsWide area networkLocal area networkInformation ManagementClient Server architectureDB2 relational databaseData feeds from internal and external sourcesIndustrynews/IRIDow JonesManufac-turingAccounting Purchasing LogisticsSalesExecutive InformationSystemExternal Systems Internal Business Operations and


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