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Chapter 13

Organizing the MIS Resources

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Outline

  • How is an MIS department managed?
  • Is the MIS department doing a good job?
  • What roles and tasks does the MIS department perform?
  • What MIS jobs are available, and how much will it cost to hire IT employees?
  • Is it better to run MIS operations internally or pay someone else?
  • Who should control IT resources?
  • How can Internet technologies be used internally to centralize data but still support decentralized user access?
  • Why is the MIS department involved in so many conflicts? How do you solve them?

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Organizing IS Resources

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MIS Roles

  • Hardware administration
  • Software support
  • Network management
  • Software development
  • End user support
  • E-business/Internet
  • DB administration
  • Advocacy
  • Security

Hardware administration and operations

Software

development

Support end user

development

Database

administration

Advocacy

Network management

Software training

and support

Internet and e-business

Security

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Managing IS

  • Managing Workers
    • Hiring, Evaluating, Training
    • Are IT certifications useful?
    • No good answer. Are employers looking for narrowly-defined list of skills, or intelligent, adaptable workers?
  • Planning and Integration
    • A start of the discussion on centralization v. decentralization.
    • MIS needs to fit within the organizational structure.
  • Evaluation, Oversight, and Control
    • User satisfaction evaluation of IT.
    • Chargeback (transfer pricing).
    • Difficult to set correct prices.
    • Gives some control (yes/no) to users.
    • IT oversight committees

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Salaries�1995

IS Management

Operations

Networks

Systems Development

User Support

Computerworld 1995 Salary Survey

CIO/VP IS $91,568

Director

IS Operations 72,982

Networks 70,050

Systems Development 72,982

Computer manager $49,545

Supervisor 39,525

Lead operator 30,304

Operator 25,383

Technical specialist 36,801

Telecom. manager $60,278

Telecom. specialist 46,974

Network administrator 42,880

LAN manager 46,802

Support manager $49,825

Help desk manager 41,756

Help desk operator 29,486

PC technical specialist 33,045

Business analyst 37,205

Project manager $58,386

Sr. systems analyst 51,910

Systems analyst 45,416

Sr. systems program. 51,731

Systems programmer 41,887

Sr. programmer/analyst 45,981

Programmer/analyst 37,203

Database manager 55,669

Database analyst 47,774

Data security admin. 47,484

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Salaries 2005

IS Management

Operations

Networks

Systems Development

User Support

CIO/VP IS/CTO $164,000

Director $108,000

Manager 83,000

Systems Admin 61,000

Lead operator 40,500

Computer operator 35,000

Manager $69,000

Administrator 54,000

Network engineer 70,400

Junior analyst 34,000

Manager $68,300

Technical trainer 54,000

Help desk operator 47,800

PC technical support 43,000

Director $101,000

Project manager 95,000

System analyst 74,000

Senior developer 76,800

Programmer/analyst 71,000

Junior programmer 45,000

Includes bonus

Database

Manager $88,000

Architect 95,000

DBA 81,000

Analyst 65,000

Internet

Director/strategy $112,000

Manager 96,500

Application developer 56,000

EC specialist 71,000

EDI specialist 66,000

Security

Chief Security $113,000

Manager 97,000

Specialist 81,000

IS audit manager 91,000

IS audit staff 53,000

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Salaries 2014

IS Management

Operations

Networks

Systems Development

User Support

CIO/VP IS/CTO $240,000

Director $104,600

Manager 89,000

Systems Admin 75,000

Storage Admin 95,000

Lead operator 62,000

Manager $85,500

Administrator 67,000

Network engineer 87,000

Junior analyst 44,000

Manager $86,000

Technical trainer 76,000

Help desk operator 54,500

PC technical support I 32,200

Director $160,000

Project manager 117,000

System analyst 105,000

BI Analyst 85,000

Senior developer 98,600

Programmer/analyst 78,600

Junior programmer 56,200

Includes bonus

Database

Manager $121,000

Architect 101,000

DBA 93,000

Analyst 79,000

Internet

Director/strategy $162,000

Manager 98,000

Application developer 72,000

EC specialist 87,000

EDI specialist 66,600

Security

Chief Security $168,000

Manager 112,000

Specialist 95,000

IT audit manager 114,400

IT auditor I 53,400

Note: High variance

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Skills in Demand

Year/Rank

1

2

3

4

5

2014

Programming/App Devel.

Help Desk / Tech. Support

BI and DB Devel/Analysis

Security

Networks

2013

Programming/App Devel.

Project Management

Help Desk / Tech. Support

Security

Cloud/SaaS

2010

Java/J2EE

Security

Software Developer

SAP

Database Management

2007

Business Analyst

Windows Administrator

Program Manager

Offshore Project Manager

Vendor Manager

2004

Application Development

Project Management

Database Management

Networks

Security

2001

ERP

Object Engineering

Data Warehouse and Visualization

Groupware

Wireless

1998

ERP

Groupware

Database

Networks

COBOL

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International Salaries: 2001

Nation

Programmer/Analyst Salary

United States

55,000

Britain

57,000

Russia

10,800

India

2,508

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International Salaries 2003/2004

Nation

Programmer/Analyst Salary (USD/year)

United States

61,500

Britain

59,600

Russia

10,000

Romania

6,500

China

9,000

India

India/Bangalore

6,104

10,000

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International Salaries 2014

Nation

Programmer Salary (USD/year)

United States

49,800 – 90,000

Britain

53,200 – 63,200

Russia

21,000 – 45,000

China

10,800 – 39,000

Israel

60,000 – 90,000

India/Bangalore

8,200 – 16,300 – 25,400

Remember: Productivity also varies enormously

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Keyword: Outsourcing Video

Outsourcing Trends for 2021

Source: Annual Reports

*Est. because Dell no longer reports separately

Company

1991

1995

1997

2000

2003

2006

2010

2013

IBM Global Services

0.4

17.7

24.6

37.0

42.6

48.2

56.4

56.9

EDS/HP Services

1.2

12.4

15.2

19.2

19.8

21.3

40.8

51.7

Accenture

0.5

4.2

6.3

9.8

11.8

18.2

23.1

28.6

CSC

0.4

4.2

6.6

10.5

11.1

14.6

16.1

15.0

ADP

0.3

3.0

4.9

7.0

7.1

6.9

8.9

11.3

Affiliated/Xerox Serv.

0.2

0.4

1.2

2.1

3.8

5.3

9.5

11.9

Fiserv

0.2

0.7

1.0

1.7

2.7

4.5

4.1

4.8

Perot/Dell Services

0.2

0.3

0.8

1.1

1.5

2.3

3.5

*2.5

Tata/TCS

1.4

4.2

6.8

10.2

Wipro

0.3

1.3

2.4

6.1

6.9

InfoSys

1.0

3.2

4.8

7.4

Cognizant

0.1

0.4

1.4

4.6

8.8

Satyam/TechMahindra

0.2

0.5

1.1

1.2

2.6

HCL Tech.

0.1

0.2

0.4

1.0

2.7

5.0

Total (billion dollars)

3.4

43.2

60.7

88.9

105.4

134.6

188.5

223.7

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Keyword Outsourcing

Video Indian Outsourcing

Outsourcing Evaluation

Outsource

In-House

Specialized talent

High fixed costs

Level of technology

Standard workers, hardware, and software are readily available at fixed fees.

If you need expensive workers or technology, you can save the mark-up profits and keep control over selection.

Security and control

Providers can afford specialists and provide solid basic security.

Data that requires absolute secrecy needs to be kept in-house.

Strategic use of IT

Providers can handle standard technology.

Unique applications and new ideas come from in-house.

Company size/resources

Small companies get access to specialists and shared resources. You can purchase the level of technology you need and expand as you grow.

Large companies can afford IT staff and specialists, but might choose to convert fixed costs to monthly costs.

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Amazon Web Services

Google

Microsoft (Azure)

IBM

Almost all costs are variable per:

  • Virtual machine hours (size of machine)
  • Data storage
  • Data transfer (bandwidth usage)

Fixed costs you no longer pay:

  • Building, A/C, power
  • Labor/operators/engineers
  • Hardware, software purchases
  • Network equipment, management

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Economies of Scale

It takes an OC3 line at 155 mbps at full use before you come close to Amazon’s bandwidth pricing. Above that prices are similar. Not counting network engineer costs that you would have to pay yourself.

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Outsourcing and Contracting Problems

  • How do you control service levels?
  • How do you control costs?
  • What happens when you change strategies?
  • Define exactly what you want—do not assume workers understand your business.
  • Monitor progress and set deadlines.
  • Do not expect creativity or insight into your business.

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Outsourcing Questions

  • How will you ensure adequate service?
    • Keyword: Service Level Agreement (SLA) a defined performance measure that is specified in the contract. (see the section on SLA in cloud-based outsourcing)
    • What should be measured?
  • How will you control costs?
    • Add-on charges
    • Reduce costs over time as technology improves
  • Will it provide the flexibility you need if strategies change?

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Keyword: Offshoring, outsourcing to firms in other countries.

Offshoring vs Outsourcing

Video: Outsourcing and Offshoring Sector

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Keyword: Total Cost of Ownership (TCO): the purchase price of an asset plus the costs of operation. When choosing among alternatives in a purchasing decision, buyers should look not just at an item's short-term price, which is its purchase price, but also at its long-term price, which is its total cost of ownership.

The item with the lower total cost of ownership is the better value in the long run. Doesn't include costs of using the machine such as new software developed for a software company or materials input into a manufacturing process.

Video: Total Cost of Ownership of Cloud

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Complete Centralization

Data and

software

MIS personnel

Hardware

User departments

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Hardware Centralization Advantages

  • Easier to share
    • Data
    • Expensive hardware (printers)
  • Easier to control
    • Purchases
    • Usage
  • Less duplication
  • Efficiency — less unused resources

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Software Centralization Advantages

  • Compatibility
  • Bulk buying discounts
  • Easier training
  • Ease of maintenance & upgrades

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Data Centralization Advantages

  • Easy backup
  • Easier to Share
  • Less duplication
  • Security control\monitoring

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Personnel Centralization Advantages

  • Workers with similar backgrounds
  • Easier training
  • Straightforward growth path
  • Specialized staff
  • Easier to see/control costs

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Complete Decentralization

MIS personnel are members

of user departments

Marketing

Finance

Accounting

Human Resources Management

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Hardware Decentralization Advantages

  • Less chance of total breakdown
  • Users get personalized equipment
  • Micros are cheaper than mainframes
    • Now, servers are built from the same technologies as PCs
    • Not until Facebook in 2011 did vendors begin standardizing server hardware to help reduce costs.

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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.

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Data Decentralization Advantages

  • Not all data needs to be shared
  • Easier find and access
  • Control & politics

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Personnel Decentralization Advantages

  • Closer to users
    • Faster response
    • More time spent with users
    • Better understanding/communication
  • Different career path

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Key Concept: Web Clients The thin-client or browser-based approach uses a relatively simple computer to run a Web browser that is responsible for displaying data and getting input from the user. This approach recentralizes many of the MIS functions. All of the data and most of the applications reside on centralized servers.

Server

Data and applications

Browser-based client access

User interface

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Intranet and Cloud Network Solutions

High-bandwidth connections between servers.

Standard Internet connections to users.

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Key Term: Data Replication Video

Replication is the continuous copying of data changes from one database (publisher) to another database (subscriber). The two databases are generally located on a different physical servers, resulting in a load balancing framework by distributing assorted database queries and providing failover capability.