Chapter 3

Organizing Information
Technology Resources

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IS architecture
IS management
organizing the IS staff Learning Objectives
Describe the ways in which IS/IT resources are
deployed in organizations
Describe the ways in which information
technology personnel are deployed in
organizations
Contrast the advantages and disadvantages of
charge-back methods for IS services

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 IS Architecture
Centralized IS Architecture
– systems development and operation are done at a
central location (home base), using terminals that
are attached to the home base unit.
Decentralized IS Architecture
– systems development and operation are
occurs at individual business unit.
– Allows departments and foreign units design
and utilize its own unique solutions and
systems.
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 Centralized IS Architecture

In centralized IS architecture, information resources

are maintained on one or several large computers
that are centrally controlled. 4
Centralized IS Architecture

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Decentralized IS Architecture

In decentralized IS architecture, workers at different sites and

departments (A, B, C) use information resources that are
dedicated to their site or department.
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IT Architecture Vs. IS Management
Usually, the companies with centralized IS
architecture to have centralized IS
management style.

Companies with decentralized IS architecture to

have decentralized IS management style .

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 Information System
Management
Centralized management – staff positions
and departments in strict vertical
hierarchy and places control of
organization in a few hands (top
management).
Centralized IS management  A
relatively large IT unit that is responsible
for almost all IT related issues for the
whole company .
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Centralized vs. Decentralized
IS Management (Cont.)

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Centralized vs. Decentralized
IS Management
Advantages of Centralized IS Management
– Economies of scale
– Efficient administration of resources
– Effective staffing
– Easier training
– Common reporting systems
– Easier strategic planning
– Tighter control by top management

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 Centralized vs. Decentralized
IS Management
Advantages of Centralized IS Management
 Economies of scale
- Standardized hardware and software across different unit.

 Efficient administration of resources

- Efficient use of software & hardware resources

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 Centralized vs. Decentralized
IS Management
Advantages of Centralized IS Management
 Effective staffing
- IT professionals at a corporate central IS unit are usually more
knowledgeable about IT and IT skills than other business unit
managers, they can do a better job in identifying the most
competent individuals to fill IT positions speed up the
recruitment process.

 Easier training
- Easier for the staff to pick up the necessary skill /knowledge.

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 Centralized vs. Decentralized
IS Management
Advantages of Centralized IS Management
 Common reporting systems
- With standardized reporting format/structure, managers do not
have to “re-map” the information they receive from one unit to
others.

 Easier strategic planning

- IS Strategic plan decides an organization’s entire IS resources
allocation
- Easier to link an overall IS strategic plan to an organization’s
overall business strategic plan

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 Centralized vs. Decentralized
IS Management
Advantages of Centralized IS Management
 Tighter control by top management
- Easier for top management to control one central IS unit rather
than many sub-IS unit under the different departments.

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Centralized vs. Decentralized
Management (Cont.)

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Centralized vs. Decentralized
Management (Cont.)
Advantages of Decentralized IS Management
– Better fit of ISs to business needs
– Timely response of IS units to business
demands
– Encouragement of end-user development of
applications
– Support for delegation of authority
– Less competition for resources

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 Centralized vs. Decentralized
Management (Cont.)
Advantages of Decentralized IS Management
 Better fit of ISs to business needs
- Separate IS unit for each department/branches

 Timely response of IS units to individual business

unit demands

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 . Centralized vs. Decentralized
Management (Cont)
Advantages of Decentralized IS Management
 Encouragement of end-user development of applications
- End users are encouraged to develop their own small applications to
increase productivity.

 Support for delegation of authority

– Top management can delegate more authority to lower level
management.
– For example, the decision making is now can be made by business
unit IS personnel in-charge rather than the central IS unit staff.
– Inspired more new, innovative idea or knowledge from all these lower
level IS personnel. ~work closely with respective business unit.

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Centralized vs. Decentralized
Management (Cont.)
Advantages of Decentralized IS Management
 Less competition for resources
– When business unit manage its own ISs and IS budget,
it usually does not have to compete for IT resources
with other business units.
– Save organization efforts in resolving conflict or fight
between different business units

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 Organizing the IS Staff
How to organize the IS unit itself?
(the way how you organize/position IS
professionals within an organizations)

 Central
 Dispersed/Functional

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Organizing the IS Staff (Cont.)
Central IS Organization: A corporate IS team to
take care of all business units IT needs.
– Has one IS director oversees several departments
– Usually involved in every aspect of IT in an org.
– Determines which computers and peripheral equipment
are approved for purchase
– Approves or rejects software purchases
– In charge of training new users
– In charge of developing & maintaining ISs for business
units.
– Involved with IT related R&D project/study 21
Organizing the IS Staff (Cont.)

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 Organizing the IS Staff (Cont.)
Central IS Organization Advantage:
Ensure compatibility of hardware and software
- Make sure that the different business units using the
standardized and compatible h/w and s/w

Provide the interface between different systems (business

units/ branches) that enable them to work together.

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 Organizing the IS Staff (Cont.)
Central IS Organization Advantage:
Perform strategic planning easier and more efficient.

Support planning of enterprise wide applications such as

ERP system, which are shared by several departments
/branches.

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Organizing the IS Staff (Cont.)
Dispersed (Functional) IS Organization
– Each business unit fulfills its IS needs individually
– Each business unit has one IS team or several IS
professionals
– Each business unit has its own funds/budget for
IS development and maintenance.
– Each business unit make decision independently
(individual business unit IS professional may
consult the central IS colleagues, but not
necessary to follow it

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Organizing the IS Staff (Cont.)

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 Organizing the IS Staff (Cont.)
Dispersed (Functional) IS Organization Advantage:
Better fit of business unit’s unique needs
- separate IS unit for each department/branches  100 %
perfect fit IS

Faster response to business unit’s demand

- separate IS unit for each department/branches  allow IS
staff work closely with that particular dept/branch staff

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 Organizing the IS Staff (Cont.)
As a conclusion,
-Usually, large and complex companies, especially
those multinational firms which consist of chain of
outlets across the different countries or regions are
implementing this dispersed IS organization mode.
-Usually , large and complex company which consist of
chain of outlets within the same region/country are
implementing this central IS organization mode.
****But this may not true all the while as final decision
still lay in the hand of the company CEO/board of
directors.
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 CIO Vs. CTO
The highest ranking IS officer in an organization
is with the title of Chief Technology Officer
(CTO), usually that person is also a vice
president.
In some large organization, they will have vice
president called Chief Information Officer (CIO).

However, rarely does an organization have both

CIO and CTO at the same managerial level. (If
yes, CTO usually reports to CIO)

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 CIO Vs. CTO (refer to pg. 7)
CTO is similar to CIO, except CIO take on the additional
responsibility for effectiveness of ensuring that IT is aligned with
the organization's strategic initiatives.
- e.g. Chief Information Officer (CIO) responsible for all aspects
of ISs
Oversee the planning, development and implementation of IS
in the organization.
Involved with analysing & reworking existing business
process, with identifying and developing the capability to use
new tools to reshape the enterprise wide business process/IT
infrastructure.
Oversees IS research and development effort

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 CIO Vs. CTO (refer to pg. 7)
CTO is responsible for ensuring the throughput, speed,
accuracy, availability, and reliability of IT.
-e.g.
-Serve as chief technologist.
-oversee technical staff at an org.
-involved & in-charge of implementing the R&D
project.

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Information Center (Help Desk)
Information Center (also called Help Desk), is a special
facility consists of hardware, software and technical
specialists to supply end users with tools, training and
expert advice so that they can create, use and maintain
information system applications on their own.
To provide ad hoc advice about hardware, software and
telecommunications to business units.
To show people how to use system resources more
effectively, to provide answers to technical or operation
questions and to make users more productive by
teaching them how to meet their own information needs.

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Information Center (Help Desk)
Coordination and Control
Central contact point for all IT maintenance activities.
Center to coordinate and control of users report of
system problems, ask for maintenance or submit new
systems requests.

Support and Services

Show a user how to create a data query or report that
displays specific business information
Provide information about system specifications
Recommend a system solution that integrates data
from different locations to solve a business problem.
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