The Importance of
Information Systems
Management
Chapter 1
Information Systems Management In
Practice 7E
McNurlin & Sprague
PowerPoints prepared by Michael Matthew
Visiting Lecturer, GACC, Macquarie University – Sydney Australia
Chapter 1
• This lecture / chapter traces the growing importance
of information systems management and presents a
conceptual model to show the key areas, how they fit
together, and the principal issues for CIOs in each
area
• It sets up the context for the book:
– First by describing today’s business organizational and
technical environment
– Second by describing a framework for viewing the work of
the IS organization; and
– Third by describing an IS organization’s evolution from 1985
to present
• MeadWestvaco, described from the mid-1980s to the
present, is a case example of how these areas are
being implemented in an IS organization
©2006 Barbara C. McNurlin. Published by Pearson Education.
1-2
Today’s Lecture
• Introduction
• A Little History
• The Organizational Environment
– External Business Environment
– Internal Organizational Environment
– Goals of the New Work Environment
• The Technology Environment
–
–
–
–
Hardware Trends
Software Trends
Data Trends
Communication Trends
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Today’s Lecture cont.
• The Mission of Information Systems
• A Simple Model
• A Better Model
–
–
–
–
The Technologies
The Users
Systems Development and Delivery
IS Management
• Organization of this Unit / Book
• Case example – MeadWestvaco Corporation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Introduction
• (Finally) Information Technology (IT) computers and telecommunications - is
having the kind of revolutionary, restructuring
impact that has been expected and promised
for years
• Rapid advances in speed and capacity +
pervasiveness of Internet, wireless, portable
devices etc. = making major changes in the
way we live and work
• ‘Go Back’ – 5, 10, 15 years
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Introduction cont.
• Due to the growth and pervasiveness of IT,
organizations are operating in a different environment
from just a few years ago
• Themes this unit emphasizes:
– Globalization
•
•
•
•
The world seems to be getting smaller
Backlash – local needs Vs. ‘standard’
Jobs to stay ‘local’
IS executives need ‘balancing act’
– E-enablement
• Internet has become a hub for conducting business
• Interconnectivity plus!
– Knowledge Sharing and Knowledge Management
• Between people
• Out of people’s heads and into ‘lasting’ things e.g. systems,
policies and procedures etc.
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Introduction cont.
•
Management of Information Systems
– 3 Major Trends
1. Governance of IT = a collaborative effort from IS
executives and all other members of Senior
Management
2. Role of IS is shifting from application delivery to
system integration and infrastructure development
3. Outsourcing – total / selective
•
Developing and managing contracts and relationships
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Introduction cont.
• Historically, managing IT has been the job
of ‘technical managers’
• NOW = increasingly becoming an important
part of the responsibilities of:
– Senior executives
– Line managers
– Employees at all levels of an organization
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The ‘Key’ (What’s it all about?)
Technology is configured into systems
that help manage information to
improve organizational performance
©2006 Barbara C. McNurlin. Published by Pearson Education.
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A Little History
• U.S. passed from the industrial era to the
information era as early as 1957
– The number of U.S. employees whose jobs were
primarily to handle information surpassed the
number of industrial workers
• In the late ’50s / ‘60s IT to support
“information work” = largely non-existent
(except telephone)
– Information work = mostly done in general offices
without much support from technology
• People factories?
©2006 Barbara C. McNurlin. Published by Pearson Education.
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©2006 Barbara C. McNurlin. Published by Pearson Education.
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A Little History cont.
• 70s = it all ‘started’ with many of the
foundations of IT today invented and costs
starting to fall
– Typewriters, fax, ‘smaller’ computers
• 1980s = number of US information workers
surpassed the number in all other sectors
(>50%)
©2006 Barbara C. McNurlin. Published by Pearson Education.
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A Little History cont.
• Information Technology:
– Initially used to perform existing information
work more quickly and efficiently
– Then = used to manage work better
– Now = well into the 3rd stage of technology
assimilation
• IT makes pervasive changes in the structure and
operation of:
–
–
–
–
–
Work
Business practices
Organizations
Industries
The ‘Global Economy’ (=enabler?)
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment
• The way IT is used depends on the
environment surrounding the organization
that uses it
• Simultaneously, technological advances
affect the way IT is used
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment cont.
• The External Organizational Environment
– IT allows information to move faster, thus increasing
the speed at which events take place and the pace
at which individuals and organizations respond to
events.
– The Internet Economy
• B2C, B2B etc.
• IT is a major underpinning of the way the ‘old’ and
‘new’ worlds interface
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment cont.
• The External Organizational Environment
cont.
– Global Marketplace
•
•
•
•
•
The entire world has become the marketplace
The Internet allows companies to work globally
Globalization is a ‘two way street’
Internet allows small firms to have a global reach
Business environment is now global, but local tastes
still matter
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment cont.
• The External Organizational Environment cont.
– Business Ecosystems
– Decapitalization
• Tangible items, such as capital, equipment and
buildings were the tenets of power in the industrial
age
• Today = power of ‘intangibles’ such as ideas and
knowledge
– Managing talent = as important as e.g. managing finance
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment cont.
• The External Organizational Environment cont.
– Faster Business Cycles
• Rely on IT
– Accountability and Transparency
• Rise and fall of dot-coms probably should have been expected
– Many business plans could not make $$$
• Debacle in Telco and business shenanigans have shaken
investor confidence
– Call for greater transparency of corporate operations and greater
accountability of corporate officers
– IT will play a significant role in implementing the ensuing
regulations and fostering transparency
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment cont.
• The External Organizational Environment
cont.
• Rising Societal Risks of IT
– IT has negatively affected millions of people
• Network shutdowns
• Computer viruses
• Identity theft
• Email scams
• Movement of white collar jobs offshore
– Led to increasing calls for Government regulation
and for vendors and corporations to take action
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment cont.
• The Internal Organizational Environment
The work environment is also changing, and the art of
managing people is undergoing significant shifts
– From Supply-Push to Demand-Pull
• ‘Old’
– Companies did their best to figure out what customers wanted
– Organized to build a supply of products or services and then
‘push’ them out to end customers on stores shelves, in catalogs
etc.
• ‘New’ (Internet)
– Allows much closer and ‘one-to-one’ contact between customer
and seller
– Offer customers the components of a product/service then the
customer creates their own version by ‘pulling’ what they want
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment cont.
• The Internal Organizational Environment
– Self- Service
cont.
• ATMs = early example
• 1990s saw an increase in systems that let
consumers access corporate computer systems to:
–
–
–
–
Learn about products
Purchase products
Inquire about orders
Communicate and ‘do business’ with the firm
• Now = heaps e.g. FedEx parcel tracking
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment cont.
• The Internal Organizational Environment
cont.
– Real-Time Working
• Sales people have up-to-the-minute information
about customers
• Knowing e.g. inventory and cash levels as the are
NOW – not as they were a week or a month ago
• Being able to reach someone when you need them
– Instant messaging?
– Team-Based Working
• Working together on projects
– Anytime, Anyplace Information Work
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment cont.
• The Internal Organizational Environment cont.
– Outsourcing and Strategic Alliances
• To become more competitive, organizations are
examining types of work that should be done
internally or externally by others
• Ranges from a simple contract for services to a
long-term strategic alliance
• The thinking is: We should focus on what we do best
and outsource the other functions to people who
specialize in them
– Note = not ‘new’ (especially in non-IT)
– Also = some ‘backlash’
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Organizational Environment cont.
• The Internal Organizational Environment
cont.
– The Demise of Hierarchy
• Traditional hierarchical structure groups, several
people performing the same type of work, overseen
by a supervisor
– No longer the most appropriate in factories or offices
• Hierarchical structures cannot cope with rapid
change
– Communications up and down the chain of command takes
too much time for today’s environment
• IT enables team-based organizational structures by
facilitating rapid and far-flung communication
• Note: = some of the time. Still has its place in many
organizations
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©2006 Barbara C. McNurlin. Published by Pearson Education.
Goals of the New Work Environment
• Leverage Knowledge Globally
– Tap tacit knowledge by fostering sharing and
supporting sharing through technology
– Note: driving force is culture!
 Happens through organizational pull (people
needing help) rather than organizational push
which overloads people with information
• Organize for Complexity
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Goals of the New Work Environment cont.
• Work Electronically
– Taking advantage of the Internet and networks in general
= 3rd major goal of enterprises today
• Requires different organizing principles, management tenets,
compensation schemes, structure etc.
• Changes how organizations interact with others including
customers
– The microchip moved power within companies.
Bandwidth moves power all the way to consumers
– Will increase exponentially as bandwidth capability
increases and costs decrease
• Handle Continuous and Discontinuous Change
– Fits and starts
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment
IT enables advances in organizational performance.
• Hardware Trends
– ’50s – ’60s + - Batch processing predominant; on-line systems
emerged later
– Mid ’70s processing power began to move out of the central site
(at the insistence of users!)
– 1980s: Advent of personal computers
– Client-Server computing: “Client” machine user interfaces with
“Server” on the network holding the data and applications
– Major current development = hand-held devices, wireless etc.
– Further distribution beyond organizational boundaries to
suppliers, customers etc.
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Software Trends
1. In 1960s = Improve the productivity of in-house
programmers who created transaction processing
systems
–
‘Problem’ = memory $
2. Later, programming issues:
•
First = Modular and structured programming
techniques
•
Then = Life cycle development methodologies and
software engineering
– Goal = Introduction of rigorous project
management techniques
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Software Trends cont.
3. Prototyping: quick development of a mock-up
4. Purchasing software became viable
alternative to in-house development
5. Paying attention to applications other than
transaction processing
• Decision support systems (DSS), report
generation, database inquiry
6. End users develop their own systems
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Software Trends cont.
7. Push for ‘open systems’
•
Purchasers were tired of being “locked in” to proprietary
software (or hardware)
8. 1990s – trend towards Enterprise Resource Planning
(ERP) e.g. SAP, PeopleSoft
•
DANGER : BEWARE
•
Expensive and troublesome, especially for companies
wanting to modify the ERP software to fit their ‘unique’
processes
•
A fundamental organizational change!
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Software Trends cont.
9. Like hardware, software is migrating to be network
centric.
•
Web front ends to empower employees rather than replacing
legacy systems
•
Looming change = move to Web Services – packages of
code that each perform a specific function and have a URL
-
•
e.g FedEx parcel tracking, MacAfee's’ virus updates
The significance of Web Services is that it moves software
and programming to being truly network centric – the
network becomes the heart of the system, linking all Web
Services
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Data Trends
– At first = File management
• Organizational techniques for files that served
individual applications
– Then = Corporate databases
• Serving several applications
• Led to concept of establishing a data
administration function
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Data Trends cont.
– ’70s = focus on Technical solutions
•
•
•
•
Database management systems
Dictionary/directory
Specification and format
Now = Data definitions: information about
relationships among systems, sources and
uses of data, and time cycle requirements
– First 20 years: techniques to manage data
in a centralized environment
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Data Trends cont.
• Late ’70s / early ’80s = 4th generation languages
and PCs:
– Employees directly access corporate data
– Users “demanded it”!
• Also = Distributing data from data resources to
information resources
– Data management organizes internal facts into data
record format
– Information management focuses on concepts
• Contains a much richer universe of digitized media including
voice, graphics, animation and photographs (digitized media)
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Data Trends cont.
• Managing this expanded array of information
resources requires new technologies
– Data warehousing
• Stores huge amounts of historical (not ‘live’) data from systems
such as retailers Point-Of-Sale systems
– Data mining
• Uses advanced statistical techniques to explore data
warehouses looking for previously unknown relationships in
data e.g which customers are the most profitable
• Knowledge management (intellectual capital)
– ‘New’ – The ‘Holy Grail’?
• Web has broadened ‘data’ to mean ‘content’
– Text, graphics, animation, maps, photos, video etc.
• Now ‘tightly’ controlled Vs. early proliferation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Data Trends cont.
•
Two major data issues are now facing CIOs:
1. Security – protecting data from those who should
not see it
2. Privacy – safeguarding the personal data of
employees, customers etc.
•
Regulations such as Sarbanes-Oxley in the U.S.
now require company officers to verify their financial
data
-
The processes that handle financial data are automated =
need to document and ensure the accuracy of these
processes
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Communications Trends
• Final core technology = Telecommunications.
• This area has (is?) experienced enormous
change and is now taking ‘centre stage’
• Early use = online and time-sharing systems
• Then = interest in both public and private (intracompany) data networks blossomed
• Internet = changed everything!
• Today the Internet’s protocol has become the
worldwide standard for LANs and WANs
- Will also soon be the ‘standard’ for voice
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Technology Environment cont.
• Communications Trends cont.
• Telecom opened up new uses of IS so it became an
integral component of IS management
– Communications-based information systems link
organizations to their suppliers and customers
– Explosion of wireless
• 2nd generation, instant messaging, Wi-Fi, 3rd generation
(3G)
• Doesn’t just enable mobility = changes how people
communicate, how they live and how they work
– EXCITING TIMES!!!
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Mission of Information Systems
• Early days: “paperwork factories” to pay employees, bill
customers, ship products etc.
– Objectives of information systems defined by productivity
measures
• Later = MIS era: produced reports for “management by
exception” for all levels of management
• Today = Improve the performance of people in
organizations through the use of information technology
• Improving organizational performance is accomplished by
the people and groups that comprise the organization
– One resource for this improvement is IT
©2006 Barbara C. McNurlin. Published by Pearson Education.
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The Mission of Information Systems
The mission is to improve the
performance of people in
organizations through the use of
information technology
©2006 Barbara C. McNurlin. Published by Pearson Education.
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A Simple Model (Fig. 1-2)
In the early days of Information
Systems, the ‘translation’ between IT
and users was performed almost
entirely by systems analysts
©2006 Barbara C. McNurlin. Published by Pearson Education.
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©2006 Barbara C. McNurlin. Published by Pearson Education.
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Systems Professionals Bridging
the Technology Gap (Fig. 1-3)
• Over the last 50 years technology has become increasingly
complex and powerful
• Users have become increasingly sophisticated
• Information systems are now viewed as ‘products’ and
users have become ‘customers’
• More specialization is required of systems
professionals to bridge this wider gap
©2006 Barbara C. McNurlin. Published by Pearson Education.
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©2006 Barbara C. McNurlin. Published by Pearson Education.
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Users Bridging the Technology
Gap (Fig. 1-4)
• Technology has become sophisticated enough to
be used by many employees and consumers
• Today, some of the technology is truly userfriendly, and some applications such as Web page
development, database mining and spreadsheet
manipulation, are handled by non-IT staff
• Transaction systems, however, are still ‘developed’
by professional developers, either inside or
outside the firm
©2006 Barbara C. McNurlin. Published by Pearson Education.
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©2006 Barbara C. McNurlin. Published by Pearson Education.
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Why talk about the ‘Technology Gap’?
• The main point of this discussion is that
technology is getting more complex,
applications are becoming more
sophisticated, and users are participating
more heavily in the development of
applications
• The net result is that management of the
process is becoming more complex and
difficult as its importance increases
©2006 Barbara C. McNurlin. Published by Pearson Education.
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A Better Model (Fig 1-6)
•
•
Expanding the simple model gives us more
guidance into managerial principles and tasks
We suggest a model with four principal
elements:
1.
2.
3.
4.
A set of technologies that represent the IT infrastructure
installed and managed by the IS department
A set of users who need to use IT to improve their job
performance
A delivery mechanism for developing , delivering and
installing applications
Executive leadership to manage the entire process of
applying the technology to achieve organizational objectives
and goals
©2006 Barbara C. McNurlin. Published by Pearson Education.
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A Framework for IS
Management
©2006 Barbara C. McNurlin. Published by Pearson Education.
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1. The Technologies
•
Several forces contribute to the increased
importance and complexity of IT:
1.
2.
3.
•
Growth in capacity + reduction in cost & size
Merging of previously separate technologies of computers,
telephones/telecom/cable TV, office equipment and
consumer electronics
Ability to store and handle multiple forms of data
Information systems now fill major roles in
management reporting, problem solving and
analysis, office support, customer service and
communications
©2006 Barbara C. McNurlin. Published by Pearson Education.
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2. The Users
Clerical?
Managerial?
Note: the distinction between manager and worker is blurring!
©2006 Barbara C. McNurlin. Published by Pearson Education.
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3. System Development and Delivery
•
Systems development and delivery bridge the gap
between technology and users
•
Systems for procedure-based (clerical) activities
differ from systems for knowledge based
information work (managerial)
•
Systems are built based on technology resources.
Three main categories (essential technologies):
1. Hardware and software
2. Telecommunications
3. Information resources
•
Management of these is called infrastructure
management
©2006 Barbara C. McNurlin. Published by Pearson Education.
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4. IS Management
•
Chief Information Officer (CIO)
–
–
•
Must work with all the other CXOs
–
•
Must be high enough in the enterprise to influence
organizational goals
Must have enough credibility to lead the
harnessing of technology to pursue those goals
IT has become too important to be left to one
individual
Executive team must work together to govern
it and leverage it well
©2006 Barbara C. McNurlin. Published by Pearson Education.
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A Better Model - Summary
•
This model has four major components:
1. The technology – which provides the electronic
and information infrastructure
2. Information workers who use IT to accomplish
their work goals
3. System development and delivery – which
brings the technology and users together
4. The management of the IS function
•
Overall responsibility = to harness IT to improve the
performance of the people and the organization
©2006 Barbara C. McNurlin. Published by Pearson Education.
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A Better Model
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Organization of this Book/Unit
•
•
•
•
•
Part I - Leadership
Part II - Technologies
Part III - Delivery
Part IV - Supporting work
Part V - Looking ahead
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Organization of this Book/Unit cont.
• Part I – Leadership
– Chapters 2 - 4
– Deals with the strategic issues that are the
responsibility of the top systems executive – CIO
– Chapter 2 = evolution of the IS function and the
CIO’s job
– Chapter 3 = strategic uses of IT
– Chapter 4 = IS planning
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Organization of this Book/Unit cont.
• Part II – Technologies
– Chapters 5 – 8
– Deals with the management of the essential
information technologies
– Distributed systems architecture
– Building and managing telecommunications
– Managing corporate information resources
– Managing day-to-day operations
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Organization of this Book/Unit cont.
• Part III – Delivery
– Chapters 9 and 10
– Deal with developing and delivering systems
– Chapter 9 = describes:
• The evolution of systems development, tools and
approaches
• The trend towards system integration, and
• The growth of Internet-based development
– Chapter 10 = discusses important issues in
managing system development and delivery
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Organization of this Book/Unit cont.
• Part IV - Supporting work
– Chapters 11 – 13
– Discuss different types of systems that support
knowledge work
– Chapter 11 looks at using IT to support decision
making
– Chapter 12 discusses systems that support
collaborative work
– Chapter 13 looks at supporting knowledge work
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Organization of this Book/Unit cont.
• Part V - Looking ahead
– Chapter 14
– Looks at the future
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Case Example: MeadWestvaco Corporation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Case Example: MeadWestvaco Corporation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Case Example: MeadWestvaco Corporation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Case Example: MeadWestvaco Corporation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Case Example: MeadWestvaco Corporation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Case Example: MeadWestvaco Corporation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Case Example: MeadWestvaco Corporation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Case Example: MeadWestvaco Corporation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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Case Example: MeadWestvaco Corporation
©2006 Barbara C. McNurlin. Published by Pearson Education.
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A ‘Final Thought’
“It is not the strongest species that
survive, nor the most intelligent,
but the ones responsive to change”
- Charles Darwin
©2006 Barbara C. McNurlin. Published by Pearson Education.
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McNurlin 6E Chapter 1