Slide 7.1
Organising and
positioning IS activities
Ch 7 – Boddy et al
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Alternative ways to structure IS activities
Outsourcing or in-house?
Charging for IS activities
Managing IS as a partnership of three interest
groups
• IS staff
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.2
IS in one user department
IS positioned in one functional department: computers, software and data
directed to one specific functional department
Figure 7.1
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.3
Centralised IS
Centralised IS architecture: centrally controlled computers, software
and data
Figure 7.2
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.4
Decentralised IS
Figure 7.3
Decentralised IS architecture
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.5
Characteristics of centralised and
decentralised dominance
Table 7.1
Characteristics of centralised and decentralised dominance
Source: Reprinted from Corporate Information Systems Management: Text and Cases (Applegate, L.M., McFarlan, F.W. and Kennedy, J.L.) 2007, Irwin/McGraw-Hill, p. 420.
Copyright © McGraw-Hill Companies, Inc.
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.6
Federated IS
Figure 7.4
Federated IS: resources jointly owned
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.7
IS as a resource pool
Figure 7.6
IS supply as a resource pool
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.8
Outsourcing
Figure 7.7
Outsourcing IS activities
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.9
Advantages and
disadvantages of outsourcing
Advantages
• Access to know how and consulting
• Lower personnel and fixed costs
• Greater attention to core business
Risks
• loss of control and dependency
• Loss of experienced employees
• Paying too much for the service
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.10
Questions on outsourcing
(Lacity, 2001)
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Are the systems not strategic?
Are we certain that our IS requirements will not change?
Even if a system is a commodity, can it be broken off?
Could the IT department provide this more efficiently?
Do we have the knowledge to outsource an unfamiliar or
emerging technology?
• What pitfalls should we expect when negotiating the
contract?
• Can we design a contract that minimises the risks and
maximises control and flexibility?
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.11
Four ways to control IS activities
Figure 7.9
Three (internal) interest groups in relation to IS
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.12
Perceived failings from
other parties’ perspectives
Table 7.5
Perceived failings from other parties’ perspectives
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.13
Technochange vs IT projects
Table 7.6
Technochange vs. IT projects and organisational change programmes
Source: Based on Markus (2004), pp. 94–5
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.14
IS activities
Figure 7.10
Activities of a typical IS department
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009
Slide 7.15
IT governance
Figure 7.11
Domains of IT governance according to COBIT (2007)
Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009