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Managing information resources involves all of the various components we have discussed including hardware, software, people, databases, telecommunications systems, the Internet, and procedures used with an organization s information systems (IS) It is far more complicated to discuss IS management than it is to discuss other areas of management The interrelationships among the various components in the field are complex and changing The value placed on information has increased over the past decade Most companies are dependent on information systems for competitive advantage New information systems often cause major organizational changes including changes in the roles people play in the company and their reporting relationships Top-level information positions exist in corporate structures; however, the responsibilities, power, and opportunities for advancement for information professionals within that structure are somewhat ambiguous because of the constant state of technological flux and the resulting dynamic structure of the modern organization Over the years technological innovations in information and communications have eliminated the need for many middle-level management positions Nonmanagement titles such as technical specialist and project leader have replaced many of these positions Reengineering has brought fundamental changes in how organizations view information systems careers A decentralization of IS functions has resulted from the increasing use of personal computers and networks The trend toward the outsourcing of IS activities has both eliminated jobs and reduced management responsibilities The assignment of IS professionals to independent business units, in which they report to business managers rather than managers in systems development, has reduced the power of IS managers And finally, the risk of making poor choices of technology in an environment of constant technological change threatens the very job security of IS managers Many IS managers today are carefully evaluating their career options
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Demand is great for top-level managers with expertise in database management, telecommunications, and the Internet Global information resource management is becoming very important as more organizations begin doing business in other countries Advances in telecommunications and networks have given rise to effective global information systems Some of the responsibilities of line managers, such as managers of systems analysis, programming, and operations, have been described in previous chapters This chapter will focus on top information systems management jobs and the complexity of these jobs in relationship to the rest of the corporation
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THE EVOLUTION OF INFORMATION SERVICES
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Back in the dark ages (ten to twenty years ago), computers were located in data processing departments Early data processing was used in most organizations primarily for mundane business tasks such as payroll and inventory applications Managers of data processing had very little power within the corporate structure They were viewed as highly technical specialists with little understanding of the organization and its activities other than basic accounting tasks The data processing manager was far more comfortable with his or her assemblers and compilers than with corporate strategic planning The data processing department was remote from the rest of the organization, with a culture and a language all its own Those outside the data processing department, including top management, felt uncomfortable with the language and somewhat intimidated by the machines Communication was thus limited The lack of knowledge of computers and their potential by top management and the inability of the data processing manager to communicate this potential to executives in language they could understand resulted in a failure to use the computer beyond the simplest applications The lack of understanding of the organization and its functions by data processing managers reinforced top management s view of them as purely technocrats Promotion to a line management position, from which advancement to executive levels was possible, simply did not occur Thus, the position of data processing manager was a deadend job It is no wonder that many programmers and systems analysts preferred to stay with their computers rather than assume the headaches of the data processing manager Often these technically oriented people lacked management and communication skills and infinitely preferred working alone The frustrations experienced by the data processing manager were numerous in that corporate decisions affecting the data processing department were made without involving him or her at all On the other hand, because top management had little or no knowledge of computers, the data processing manager had total control over the purchase of hardware and software, and this did not always result in the best business decisions As the technology became userfriendly and personal computers became every manager s best friend, most organizations realized that the computer could be used in far more valuable
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