The IT Environment. Section Four The IT Department

Transcription

1 Vocational Education and Training Training Toolbox Series Student Manual ICA11v1.0 Information, Digital Media & Technology Cert. 1, 2 & 3 ICA10111, ICA20111, ICA30111 The IT Environment Section Four The IT

2 EdSonic Publications Pty Ltd PO Box 975 COWES VICTORIA 3922 All rights reserved. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the written permission of EdSonic or an authorised representative. Authored by Robin Lick PUBLISHED IN AUSTRALIA

3 3 INTRODUCTION This manual is designed to be used by the student as further learning materials in conjunction with any classroom presentation and supplemented by the classroom presentation handouts. Introduction The materials in this manual is cross referenced in the classroom presentation handouts by page numbers. This allows the student to source additional information to that which was presented in the classroom. Alternatively, the teacher may instruct the student during any presentation to review the materials in this manual by referring the relevant page numbers.

4 4 Introduction Continued SELF ASSESSMENT At the end of each section you, the student, will be asked a series of YES and NO questions. If any question is unclear our you have answered NO, then you are encouraged to review the materials in that section again. The Self Assessment section is indicated with an icon.? Self Assessment

5 5 Table of Contents SECTION FOUR THE IT DEPARTMENT Section Learning Objectives Page 6 Section Introduction Page 7 Centralised Information Systems Page 8 Decentralised Information Systems Page 9 Distributed Information Systems Page 10 Advantages Centralised and Decentralised Page 11 Organisational Structures (Personnel) Page 13 The Central IT Organisation Page 14 The Functional IT Organisation Page 16 Best of Both Structures Page 17 Communication and Interaction Page 18 Clients Page 20 Section Summary Page 23

6 6 SECTION 4 THE IT DEPARTMENT WHAT OUTCOME CAN YOU EXPECT FROM THIS SECTION? You will learn in this section the various IT personnel structures, and where they fit within the organisation structure. SECTION LEARNING OBJECTIVES On completion of this section you will learn: The differences between a centralised and decentralised management structure The benefits of each type of structure The management structures within a centralised and decentralised structure The relationships between the IT department and other departments What the term client means.

7 7 SECTION INTRODUCTION As we have mentioned in previous sections the term Information Technology means the processing of information by computer. Information Technology or IT is the latest title for the information processing industry. The IT department in an organisation is the group of people with the responsibility of managing the information processing of the organisation. This is done through Information Systems. Again, remember that information systems are the application or implementation of information technology. The method of management relating to IT or information systems in an organisation can be classified in two ways: Centralised management Decentralised management Centralised management of information systems places total control of the system and any related issues directly with one department and with a few persons. Decentralised management delegates management control of IT to lower level managers and allows them a fair degree of independence on how they organise and utilise the information systems. If an organisation has a centralised management style it is likely that the IT department will be centralised and the same holds true for organisations that have a decentralised management style their IT department is likely to be decentralised although there are some exceptions to this rule. In this section we look at the two types of IT departments the centralised and the decentralised.

8 8 CENTRALISED INFORMATION SYSTEMS For many years the only type of computer that was available for business organisations was the mainframe computer. This meant that all the company s data and applications were stored on one computer. With the introduction of inexpensive desktop/pc computers and reliable data communications, many organisations moved to more of a decentralised IT management style allowing departments to manage their own IT needs. However, centralised IT management is still preferred by many organisations. Centralised IT management allows top management and the IT department a high degree of control making it easier to maintain the standards of hardware, software, procedures and operations as well as tighter control of access to the system and the information. The main disadvantage of a fully centralised information system is its inflexibility. Everyone uses a centralised system but that does not mean the system is perfect for everyone. Different departments or remote sites would have different information needs and a centralised system services everyone but few are completely satisfied. Mainframe Centralised USER USER USER USER USER

9 9 DECENTRALISED INFORMATION SYSTEMS A decentralised system allows departments and remote sites a large degree of independence in how they set up and use the information system. Most decentralised systems allow the departments to acquire hardware and software applications that meet their information needs without necessarily considering the needs of other departments or remote sites. In a fully decentralised system, the computers are not even linked to the organisation s headquarters, although nowadays this is rare because the Internet can link even the remotest sites. Almost all decentralised systems are PC based, each as a stand-alone operating system. The main disadvantage of a fully decentralised system is that it is difficult to share software applications and share data. USER USER USER Decentralised All Stand Alone USER USER USER

10 10 DISTRIBUTED INFORMATION SYSTEMS Distributed System Organisations that wish to provide independence to their employees without totally losing a centralised control, use what is known as a Distributed Information System. It has the benefits of both a centralised and decentralised system. Each department or site is given a sufficient amount of independence to satisfy their information needs, and the ability to share the resources throughout the operation via communication lines. USER USER The increased reliability and the lower costs of data communications and personal computer (PC) technology, has attracted many organisations to change from either a fully centralised or decentralised system to a distributed information system. Today there are fewer completely decentralised systems, most converting to the distribution information system. The conversion tends to give the organisation more control over its IT than it previously had. USER Central USER USER USER

11 11 ADVANTAGES CENTRALISED AND DECENTRALISED When choosing centralised or decentralised IT management, there are trade offs in areas such as training, efficiency, level of control and numerous other factors. We look in detail at some of the advantages of each. ADVANTAGES OF CENTRALISED IT MANAGEMENT Advantages of centralised IT management include: Standardised hardware and software saves money and time when purchasing, installing and sharing resources. It also makes maintenance and servicing easier and less expensive. Easier training Training is a major cost in most company s budgets. Training becomes less expensive and more efficient when there is standard hardware and software being used. Common reporting systems A central IT department can standardise reporting systems across departments. This is especially important in the financial reporting for legal, tax and regulation reasons. Reports are more accurate due to the fact that they re being created in the same format, and do not require conversion or re-entry. Effective planning of shared systems Large systems required by organisations are best developed by a centralised IT department who are servicing the needs of all departments, not just one. Strategic planning It is easier to link the IT strategic plan to the overall corporate plan when the IT management is centralised. Efficient use of IT personnel A centralised IT management would likely comprise of highly specialised personnel capable of developing and maintaining complex systems, than those IT professionals employed on a department by department basis. Tighter control by top management With a centralised IT department top management can have a tighter control over costs and access to the system.

12 12 ADVANTAGES OF DECENTRALISED IT MANAGEMENT Historically most companies do move from centralised management to decentralise IT management using a distributed information system set up. They maintain the control factors and efficiencies along with important advantages that decentralised IT management brings. Advantages of decentralised IT management include: Better fit of information systems to the business needs Individual departments and their IT specialist can develop systems more closely matched to their needs. Quicker response to business demands Individual departments and their IT specialist can respond quicker to their business unit s priorities. End user development of applications In a decentralised setting, end users are encouraged to develop their own minor applications to increase their productivity. Innovative use of IT Since the IT specialist knows the department or business unit better, they have a better chance of developing an innovative information system. Delegation of authority a decentralised management structure is the best option when top management wishes to delegate authority to lower levels over management. A person would find many organisations with fully centralised IT management structures. There are however, very few fully decentralised management structures. With the communication technology the way it is today, it is affordable and easy to take advantage of sharing information and data. This cannot happen with fully decentralised structures and therefore many decentralised management structures have evolved somewhat to allow networking of information systems. Each business unit or department would still maintain independence and take advantage of the benefits associated with such independence. However a central IT department would be established to take advantage of shared resources and where possible, information security and create some control.

13 13 ORGANISATIONAL STRUCTURES (PERSONNEL) The term organisational structures refers to the relationship between management and personnel in a particular organisation. There are organisational structures in schools, businesses, churches, governments, clubs and sports teams just to name a few. The IT function within an organisational structure is as many and varied as there are types of organisations. In the previous paragraphs we have discuss centralised and decentralised information/distributed information systems. We will now discuss the organisational personnel structures based on a centralised system and decentralised/distributed systems. These two types can be more aptly called: The Central IT Organisation The Functional IT Organisation (decentralised/distributed information systems) These two types of structures are at opposite ends of the organisation structure spectrum. The type of organisational structure would be determined by the type and size of the organisation and the IT needs and objectives of each. This would lead to a wide range of variants when it came to the role and control of the IT staff within an organisational structure. Centralised IT Organisation De -Centralised IT Organisation Spectrum Functional IT Organisation

14 14 THE CENTRAL IT ORGANISATION Generally the Central IT Organisation would have an Information Systems Director who headed up the department or unit. This would be a very senior role and this person would likely report to the Director of Finance or Director of Operations. Organisation s IT In some larger organisations a Chief Information Officer (CIO) or Chief Technology Officer (CTO) which is the highest ranking position relating to IT and all other IT positions, would report to the CEO (Chief Executive Officer). In a centralised IT organisation the IT department may be a business unit that has several departments. This would mean the CIO or CTO could be overseeing several departments within the unit. These departments might include: Systems Implementation and Maintenance installs and maintains hardware and software Information Centre internal help department providing advice and training relating to hardware and software being used Communications networks, LANs (Local Area Network), WANs (Wide Area Network), installation and maintenance Data Administration develops and maintains databases, data manipulation and security. Research and Development researches and recommends new hardware, software and other technologies. Web Technologies design, developing and maintaining the organisation s Internet presence including E-commerce. Within each department would be managers and these managers could also have one or more staff reporting to them. Some of these departments in some organisations are merged and in others broken into even more departments, again depending on the type and size of the organisation.

15 15 Organisation s IT The central IT unit would be involved in virtually every aspect of IT in the organisation. Through the IT unit, all purchasing decisions regarding hardware, peripherals and software would be made and, in many cases could be the only department in the organisation authorised to make these types of purchases. The advantages of a centralise IT business unit or department are: IT Steering Committee Ensures compatibility of hardware and software Tighter control over budgets and costs Ability to provide an interface across different systems that must work together Top managers share an organisational vision of how IT will serve the company in the future An organisation with a centralised IT unit or department traditionally has what is popularly known as a Steering Committee. The steering committee comprises of representatives from all key non-it business units or departments within the organisation. The steering committee hears and decides on all IT needs, priorities and the development of IT budgets. Many large organisations are looking outwards to satisfy their IT needs. This means external suppliers or consultants may handle many IT functions on a project basis, thus eliminating the need for fulltime staff and the associated costs. The IT department would still have the responsibility of approving the external suppliers/consultants and managing their work.

16 16 IT Specialist IT Specialist IT Specialist Organisation s IT Unit IT Specialist IT Specialist THE FUNCTIONAL IT ORGANISATION At the other end of the IT staffing spectrum is where each business unit satisfies its own IT needs independent of the other business units. As we mentioned before there are very few totally decentralised systems these days. It is likely with the Functional IT type of organisation there is still an IT unit. This unit would be relatively small and would provide assistance to other business units that were not capable to handle their own IT requirements. There may also be large and complex systems that may affect all business units and the IT department would maintain these systems. IT Specialist IT Specialist IT Specialist In a functional type structure each business unit would normally have their own IT specialist. This specialist would report to the business unit s manager. In this type of structure the IT specialists are working within the business unit on a day-to-day basis. They would know the business units functions and IT needs better that that of a centralised structure. The IT needs, and funds required to satisfy those needs, would come from the general budgets of each business unit. This tends to see IT needs scrutinised more closely and money spent more carefully. Even though the business unit manager and IT specialist may consult with the central IT unit, they would not report directly to this unit. The central IT unit would likely be concentrating on the larger and more complex enterprisewide systems.

17 17 BEST OF BOTH STRUCTURES Small companies or organisations typically use the centralised approach because their IT staffs are small. Medium to large companies rarely use a fully centralised structure or a fully functional structure. Most use elements of both. A large centralised IT business unit would coordinate all intraorganisational systems, while different business units and/or locations would also maintain their own systems. This is especially true where large companies have branches in different locations around the world or the business unit has very specific IT needs that other business units do not require.

18 18 COMMUNICATION AND INTERACTION Not matter what structure is used in the organisation, few would disagree that IT today plays an important role in the efficiency and success of the organisation. To fully utilise the power of IT within the organisation there must be a cooperative interaction between the IT specialists/it departments and the other business units and their line managers. The term line mangers refers to managers in other areas of the business other than IT. Line managers in many cases are not expected to be well versed in IT and IT applications. The line managers must have a constant dialog with the company s IT specialists to explore new ways to utilise IT in a way that will help their operations. Line managers need to clearly communicate their future plans so that IT managers can assist in providing the best IT solutions. In short, both must understand what one expects from the other, and together find the best ways to respond to those expectations. LINE MANAGER S EXPECTATION OF THE IT DEPARTMENT Line managers need the following from the IT department: A Broad Understanding of the Business Activities The IT specialist is expect to learn and understand the nature of the activities of the business or business unit they support so that they can develop systems that are in tune with the needs of the user. Prompt Response Line managers are often disappointed if it takes too long to develop systems to meet information needs. Simple, Jargon-free Explanations Communication can breakdown if the line managers are unable to understand technological terminology used to describe or explain IT systems. It is human nature to not openly admit that they cannot understand and this can lead to costly misunderstandings. System Limitations It is important that the IT professional explains in simple terms what the system can or cannot do. Outlining system limitations will eliminate disappointment and ensure proper use of the system. Accurate Budgeting Line managers rely heavily on accurate cost estimates, especially if those costs are coming out of their own business unit s budgets. Single Point of Contact Especially in larger organisations line managers prefer one point of contact for IT assistance especially after a system has been installed or modified. IT managers usually assign one person to manage the questions or problems of a particular business unit.

19 19 IT MANAGER S EXPECTATIONS OF LINE MANAGERS IT managers need clear communication from line managers in three basic areas basic business planning, general systems planning and specific systems development. Business Planning To plan ahead the IT professional needs to know the business units plans and needs for the future. An example would be if the business unit plans on hiring 6 new employees, then the IT manager would need to plan for new equipment, software and training. Systems Planning In order to develop a new system, the IT manager requires a clear explanation of all the business processes the system needs to support. Systems Development Once a system plan has been agreed on then the IT manager needs to know what features the line manager wants and/or expects from the system.

20 20 CLIENTS The term client generally means a person using the services of a professional. In the IT environment the client is the user of the information systems established and maintained by IT professionals whether through a centralised IT department or as an IT specialist within a business unit. In general, IT specialists in an organisation should treat the users within the company as clients. Clients within the organisation include all employees and management using the systems. As a client the user of the system is entitled to quality and professional service as would be expected from an outside supplier of the same services.

21 21 The term client within the IT context is also used in two other ways. There may be external IT clients to an organisation such as those using the organisation s system to access company product information, to communicate with the organisation and/or to electronically order products or services from the organisation through the information system or IT infrastructure. External clients would expect easy to use and efficient system access as well as a quick response to any questions or problems. Internet Intranet Extranet Organisation s IT System Clients Clients Clients Clients Clients

22 22 The term client is also used in a hardware context. In an IT infrastructure where several PCs are connected via a network to a larger computer known as a mainframe or server, the PCs are known as clients. This means that the PC or sometimes called the workstation, is operating a software application that allows it to access and use data/information from the server (mainframe computer). Client Client Server Client Client

23 23 SECTION SUMMARY The IT department as this section explains can be of many forms. However the basis of every IT department is that it is either a centralised or decentralised structure or a combination of both. This section showed that there are benefits to each. Today though many organisations are choosing a centralised system that includes many of the beneficial decentralised elements. This gives control to top management where and when needed and still allows reasonable flexibility to the rest of the organisation when it comes to developing specific and at times specialised information system needs. To get a greater understanding of the IT environment we next look what is included in a basic IT infrastructure.

24 24? Self Assessment DID YOU LEARN? THE FOLLOWING QUESTIONS ARE YES AND NO QUESTIONS. IF YOU CANNOT ANSWER YES TO EACH QUESTION IT IS SUGGESTED YOU REVIEW THE MATERIAL AGAIN. SECTION FOUR CENTRALISED INFORMATION SYSTEMS Can you recall the reasons many businesses prefer Centralised Information Systems? DECENTRALISED INFORMATION SYSTEMS Do you remember the advantages to a Decentralised Information System? DISTRIBUTED INFORMATION SYSTEMS Are you able to explain why Distributed Information Systems are becoming more popular to business? ADVANTAGES CENTRALISED AND DECENTRALISED Can you describe the advantages of the following; a) Centralised IT Management? b) Decentralised IT Management? ORGANISATIONAL STRUCTURES (PERSONNEL) Do you know what determines the type of organisational structure of a business? THE CENTRAL IT ORGANISATION Are you able to understand what the departments in a centralised IT organisation might include?

25 25? Self Assessment THE DID FUNCTIONAL YOU LEARN? IT ORGANISATION Can THE you FOLLOWING remember QUESTIONS if the Functional ARE IT YES Organisation AND NO QUESTIONS. would have an IT specialist? BEST OF BOTH STRUCTURES IF YOU CANNOT ANSWER YES TO EACH QUESTION IT IS SUGGESTED YOU REVIEW THE MATERIAL AGAIN. Do you recall the reasons a large business would use elements of both a fully centralised structure and a fully functional structure? COMMUNICATION AND INTERACTION Are you able to explain the needs a line manager would require of an IT manager, and visa-versa? CLIENTS Can you describe the two meanings of the term clients in the IT environment?

26 26 NOTES