Final CoverageTopic 4: INFORMATION RESOURCES and INFORMATION SYSTEMS

By

Dr. Faustino Reyes

Information Resources Include1. Specialists Systems analysts, programmers, database administrators, network specialists, operations personnel, and others2. Hardware 3. Software4. Users5. Data6. Information

Information Specialists1. Most located in the information services unit2. There is a trend to locate specialists throughout the firm3. Actual organization chart depends on the needs of the firm

Networkmanager

Managerof computeroperations

Managerof systems

maintenance

Managerof systems

administration

CIO

Managerof systems

development

Systemsanalyst

Systemsanalyst

Operationspersonnel

Databaseadministrators

Networkspecialists

Programmers Programmers

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A Functional Organization Structure for Information Services

Information Resources1. Most are located in information services

2. Most that are centrally located are CIO’s responsibility

3. Those located in functional areas are the responsibility of the area manager

Model of an IRIS(Information Resources Intelligence Subsytem)

Input subsystems-AIS-Information resources research-Information resources intelligence

Output subsystems-Hardware-Software-Human resources-Data and Information-Integrated resource

DATABASE

Accountinginformation

system

Informationresourcesresearch

subsystem

Informationresources

intelligencesubsystem

Hardwaresubsystem

Softwaresubsystem

Human resourcessubsystem

Data andinformationsubsystem

Integratedresource

subsystem

Users

18-43

Information Resources Research Subsystem:-Describes functions involved in special research projects within the firm

-Performed by systems analysts interacting with users

Intelligence Subsystem

Describes functions involved in gathering information from elements in the firm’s environment-Government-Suppliers-Labor unions-Global community-Customers-Competitors

CIO Responsibilities- Can be top-level executive who participates on executive and MIS steering committee- Contributes to strategic planning for firm and IS functions- Primary source of leadership for:- Achieving and maintaining information quality- Keeping information resources secure- Planning for contingencies- Keeping information costs under control

Achieving Quality Products and Services

IS Takes Six Basic Steps inAchieving Quality Management

1

2

3

4

5

6

Identify IS customers

Define customer quality needs

Establish quality metrics

Define quality strategy

Implement IS quality programs

Monitor IS quality performance

1) Identify IS customers-MIS steering committee-Use of a formal system works best2) Define customer quality needs-Product quality needs-Service quality needs3) Establish quality metrics-Information product quality-Information service quality

4) Define the IS quality strategy-Recruiting and training-User-oriented systems development -Market analysis-Product acceptance analysis-Task analysis-Prototype tests-Operational Systems tests5) Implement IS quality programs- Implementation varies with firm6) Monitor IS quality-Performance of IS specialists and the unit

Security Objectives

1. Confidentiality2. Availability3. Integrity 

IntegrityAvailability

InformationUnauthorized use

Unauthorizeddisclosure and theft

Unauthorizeddestruction and denial of service

Unauthorizedmodification

Security

Confidentiality

Unauthorized Acts Threaten System Security Objectives

Access Control1. Identification What you know (password) or Where you are (terminal location)2. Authentication What you have (badge)3. Authorization Level of use

Contingency PlanningEmergency planBackup plan

Redundancy Diversity Mobility

Reciprocal agreementHot siteCold siteEmpty shell

Vital Records Plan

Electronic vaulting-Day end backup of files electronically

Remote journaling-Transmission of transaction data as the transactions occur-Used to update remote database in batch form later

Database shadowing-Involves updating of duplicate database at remote site as transaction occur

Cost-Reduction Strategies Consolidation

Reduces number of separate locations for information resources

Easiest to achieve in terms of information resources More difficult by end-user computing needs

DownsizingMigrating to smaller platformsAdvantage of cost reductionAdvantage of increased productivity with PCs located in user

areas Risk of lost security

Outsourcing Data entry and simple processing (editing, formatting) Contract programming Facilities management (FM) Systems integration (SI) Support for maintenance, service, or disaster recovery

Objectives of Outsourcing

£ Manage costs better£ Reduce£ Contain£ Predict£ Obtain relief from systems

maintenance so as to concentrate on new system development

£ Acquire needed expertise

Proactive CIO Strategy1) CIO must emphasize quality

management of the IS resource2) Achieve strong user ties3) Strengthen executive ties4) Assemble an IS management team5) Assemble staff competent in leading-

edge technologies and methodologies6) Build an IRIS

The Future of the CIOBusiness computing is moving from

centralized to decentralized computing in terms of:

Equipment DevelopmentDecision making

CIO RolesBig brotherHelping handWatchdogNetworker

TOPIC 5STRATEGIC PLANNING FOR

INFORMATION RESOURCES

Increasing Complexity of IM For the first 10 years or so of the computer

era, all the information resources were located in the firms information unit.

But as computer develops, more and more of the hardware are located outside of information services.

As firms acquire more information resources and as those resources are disperser throughout the organization, the task of information resource mgt. becomes complex

Strategic PlanningAlso called Long-range PlanningIdentifies objectives that are intended to

give the firm the most favorable position in its environment and specifies the strategies for achieving those objectives

Upper management level is also called the strategic planning level

Functional Areas of Strategic Planning (SP)

Strategic Planning for Information Resources (SPIR)The activity of identifying the information

resources that the firm will need in the future, acquiring those resources, and managing them.

SPIR is a responsibility of all the managerCIO is often used for the top information

services managerStrategic planning was less understood

before and was given little attention because it was viewed as technical concern rather than a managerial one.

SPIR contd.But in recent years, the attitude about

SPIR has been undergoing dramatic changes.

Increasingly, information is accepted as a resource that must be managed like any other resources and SPIR has emerged as a critical management concern

Overview of SPIR Late 1960s-Mid 1970s: Data Processing

Planning- An internal mgt tool of DP department- ensure the efficient interfacing of diverse technical systems- serves to enhance the quality of service provided by DP dept.

Late 1970s: Strategic planning for IT- I.T. was realized to increase productivity- “information society” an American economy was predominantly and commonly accepted

Overview of SPIR cont.Late 1970s: Strategic planning for IT

-Logical development in the concept of planning

-IT planning must not only serve the management needs of the DP department, but the organization as a whole

-IT plans is related to business plans, not only in supporting capacity, but also as equal partner, helping to define and even create business needs and opportunity

-IT planning came to be perceived as “strategic” to the interest of the organization

Overview of SPIR cont. 1980s: Integrated Planning for an

Integrated Information Resources Environment

- The latest stage in the concept of information resource planning is primarily a function of 3 key trends

Strategic Planning Methodologies

Used to ensure that all important activities and products are accomplished and produced.

Helps a company translate its strategic business goals into IS development plans to achieve these goals◦Critical Success Factors (CSF)◦IBM’s Business System Planning (BSP)◦Strategy Set Transformation◦Expanded Systems Life Cycle

Strategic Planning Methodologies cont.

Critical Success FactorsA small number of key factors that executives

consider critical to the success of the enterprise CSF analysis provides a very powerful method for

concentrating on key information requirements of an organization, a business unit, or of a manager.

Also, CSF analysis is easy to perform and can be carried out with few resources

Used for interpreting more clearly the objectives, tactics, and operational activities and strengths and weaknesses of the organization’s existing systems.

Strategic Planning Methodologies cont.Critical Success Factors

Strategic Planning Methodologies cont.

Business System Planning (BSP) by IBMassists an organization in developing information systems plans

should be planned from the top down and implemented piece-by-piece from the bottom up.

Strategic Planning Methodologies cont.

Business System Planning (BSP) by IBMTop-down planning - planning team

of top executives lay out the strategic mission and objectives of the organizations.

Bottom-up implementation – application development activities that are performed by teams of end users and IS professionals.

Strategic Planning Methodologies cont.Top-down planning

Business MissionAnd Objectives

Business MissionAnd Objectives

Business MissionAnd ObjectivesIT Architecture

Hardware/Software/Data/Networks

BusinessProcessesBusiness

Processes

BusinessProcesses

Business/ITCapabilities

Needed

BusinessProcessesBusiness

Application

BusinessProcesses

Business/ITCapabilities

Provided

Top-Down Planning Bottom-Up Planning

Strategic Planning Methodologies cont.

Strategy Set TransformationAn approach where an information services plan was

devised to support the firm’s objective.This approach seeks to transform the business

strategy set to corresponding IT strategy setStrategy set: (mission, vision, goals, objectives)

the information services plan used in strategy transformation, it consists of objectives, constraints, and strategies.

Basic Flow:Business areas do not always have the resource to

ensure the accomplishment of the firm’s strategic objectives.

Strategic Planning Methodologies cont.

Strategy Set Transformation

Mission

Objectives

Strategy

Other strategic Organizationalattributes

System Objective

System Constraints

System DesignStrategies

MISStrategic planning

process

OrganizationalStrategy Set

MISStrategy Set

Strategic Planning Methodologies cont.

Expanded SDLCPostulated that the development of all

complex system naturally evolved through a sequential series of phase that where most appropriately managed in different ways, and which demanded different mixes of resources to complete effectively and efficiently.

Strategic Planning Methodologies cont.

Expanded SDLCStrategic IS

PlanningSystem

IntegrationPlanning

System Evaluation

Divestment

System Definition

Physical Design System Implemen-tation

Strategic Planning Methodologies cont.

SPIR ApproachWhen a firm embraces SPIR, the

strategic plans for information services and the firm are concurrent

Strategic Planning Methodologies cont.

SPIR Approach

Business

strategy

Information

resources

And

IS strategy

Influence onInformation resources

OrganizationalStrategy Set

MISStrategy Set

Influence onbusiness strategy

Strategic Planning Methodologies cont.

Content of SPIREach firm will develop strategic plan

for information resources that meets its own particular needs.

But essentially, the plan contains: The objectives to be achieved Information resources necessary to achieve

its objective.

Strategic Planning Methodologies cont.

Content of SPIRSPIR

AISobjectives

RequiredInformationresources

Humanresources

Info anddate

Software

Hardware

MISobjectives

RequiredInformationresources

Humanresources

Info anddate

Software

Hardware

DSSobjectives

RequiredInformationresources

Humanresources

Info anddate

Software

Hardware

Virtual officeobjectives

RequiredInformationresources

Humanresources

Info anddate

Software

Hardware

RequiredInformationresources

Humanresources

Info anddate

Software

Hardware

KnowledgeBased system

objectives

Thank you!