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Chapter 11

BUS 237 Chapter 11: BUS 237 Chapter 11 Notes

Business Administration
Course Code
BUS 237
Zorana Svedic

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Lecture notes
How is the IT Department organized?
Most organizations rely on information technology (IT) services. All these services: email
systems, accounting applications, desktop computers, and mobile devices - used in an
organization require some form of technical support.
The department of people who support this is often referred to as IT Services or
Information Systems Services. This group needs to be organized and managed like any
other business department.
The title of the principal manager of a company is chief information officer (CIO). Other
common titles are: VP Information Services, Director of Information Services, Director of
Computer Services, etc.
CIO reports to the CEO, or even the COO sometimes who later reports to the CEO. In
some companies, the CIO reports to the CFO, if the company is involved in accounting
and finance primarily.
Structure of an IT department:
Most IT departments include a technology office that investigates new information
systems technologies for possible application at organization. A Chief Technology
Officer (CTO) often heads the technology group. The CTO sorts through new ideas and
products to identify those that are most relevant to the organization. The CTO’s jo
requires deep knowledge of information technology and the ability to envision how the
new IT will affect the organization over time.
The next group is operations. It manages the computing infrastructure, including
individual computers, computer centres, networks, and communication media. This
group includes systems and networks administrators. An important function of this
group is to monitor user experience and respond to user concerns or problems.
The third group in the IT department is development. This group manages projects that
acquire new IS and maintains existing IS. The size and structure of the development
group depends on whether programs are developed in-house. If they are not, this
department will be staffed primarily by business analysts and/or systems analysts who
work with users, operations, and vendors to acquire and install licensed software and to
set up the system components around that software.
Business analysts are normally involved in developing the business case for a newly
proposed system as well as the requirements of that system.
System analysts are normally involved in designing and implementing the new
system. If the organization develops the program in-house, then this department will
also need programmers, project managers, test engineers, technical writers, and
other development personnel.
The last IT department is Outsourcing relations. This department monitors service levels
and handles affairs with outsourcing vendors. It exists in organizations that have
negotiated outsourcing agreements with other companies to provide equipment,
applications, or other services.
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A data administration staff function may also exist, the function of which is to protect
data and information assets by establishing data standards and data management
practices and policies.
What about the web?
Afte opaies eogized the ipat of a esite o a opa’s ustoes ad
brand, this responsibility of content and website design were shifted to the marketing
departments, while the IT departments maintained the technical responsibilities.
Recognition of the importance of website design created a whole new set of related
jobs. These jobs combine traditional business skills with technical skills. This resulted in
the growth of a new industry altogether, called web design consulting industry.
A web design project of any size will require the following people:
Project manager: responsible for interacting with the client and moving the
project successfully towards completion
Lead designer/analyst: responsible for understanding client needs and
developing the overall look and feel of the site and all the design elements
(colours, navigation, graphics, buttons, animation, etc.)
Developer: responsible for taking the design and creating the functioning of site;
usually specializes in static content (i.e., information that is not automatically
Technical architect: responsible for making decisions about technical issues
related to the site, including server/browser support, database integration,
administrator access, and any scripting issue.
It is easier to put up a website on the web, however it is the work of professionals to ensure
that the site is properly designed, maintained, and provides an enjoyable customer
What Jobs exist in IT services?
The data, procedures, and people component of IS require professionals with highly
developed interpersonal communication skills. The reality is that most jobs that are
in the highest demand in the ICT sector require a mix of interpersonal and technical
The industry needs people who can bridge the knowledge gap between computer
technicians and business system users.
High-paying jobs require communication, leadership, and business skills
The poesses of outsouig ad tehologial ioatio hae ee alled as eatie
destutio, as these poesses ae the leases of the fee aket. Eooi
processes operate to remove unneeded jobs, companies, and even industries, thereby
keeping the economy growing and prospering.
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