Page 462 - Using MIS

430 Chapter 11 Information Systems Management

• Develop, operate, and maintain the organization’s computing infrastructure.
• Develop, operate, and maintain applications.

We will consider the first two functions in Q2 and Q3 of this chapter. The protection func-
tion was the topic of Chapter 10. The last two functions are important for IS majors, but less
so for other business professionals; therefore, we will not consider them in this text. To set the
stage, consider the organization of the IS department.
How Is the IS Department Organized?

Figure 11-1 shows typical top-level reporting relationships. As you will learn in your manage-
ment classes, organizational structure varies depending on the organization’s size, culture,
competitive environment, industry, and other factors. Larger organizations with independent
divisions will have a group of senior executives such as those shown here for each division.
Smaller companies may combine some of these departments. Consider the structure in
Figure 11-1 as typical.
The title of the principal manager of the IS department varies from organization to orga-
nization. A common title is chief information officer, or CIO. Other common titles are vice
president of information services, director of information services, and, less commonly, director
of computer services.
In Figure 11-1, the CIO, like other senior executives, reports to the chief executive officer
(CEO), though sometimes these executives report to the chief operating officer (COO), who, in
turn, reports to the CEO. In some companies, the CIO reports to the chief financial officer (CFO).
That reporting arrangement might make sense if the primary information systems support only
accounting and finance activities. In organizations such as manufacturers that operate signifi-
cant nonaccounting information systems, the arrangement shown in Figure 11-1 is more com-
mon and effective.
The structure of the IS department also varies among organizations. Figure 11-1 shows a
typical IS department with four groups and a data administration staff function.
Most IS departments include a Technology office that investigates new information systems
technologies and determines how the organization can benefit from them. For example, today
many organizations are investigating social media and elastic cloud opportunities and planning

Chief Executive Officer (CEO)/
Chief Operating Officer (COO)

HR Legal ...other staff functions

Chief Chief Chief Chief
Marketing VP VP Information Financial VP Security
Officer (CMO) Sales Manufacturing Officer (CIO) Officer (CFO) Engineering Officer (CSO)

Data Administration

Chief
Technology Outsourcing Information
Figure 11-1 (CTO) Operations Development Relations Security
Typical Senior-Level Officer (CISO)
Reporting Relationships