BUS 188: Chapter 11 Outline

Matthew Mercado

08/06/16

BUS 188 (11:00am-3:00pm)

Chapter 11 Outline (2 page minimum)

Aggarwal

Chapter 11 Outline: Information Systems Management

            In the previous chapter, we talked about how IS security is important to consider and how we can respond. However, we will be talking about the functions and organization behind the Information Systems Department. The major functions of IS systems department include: Plan the use of IS to accomplish organizational goals and strategies, manage outsourcing relationships, protect information assets, develop, operate, and maintain the organization’s computing infrastructure, and finally develop, operate, and maintain applications.

            The Chief Information Officer (or CIO) is the title for the IS Department head. Some of the other titles he/she has are vice president of information services, director of information services, and director of computer services.  The CIO always reports to the CEO while sometimes-executive reports are sent to the Chief operating officer (or COO). The CIO’s IS department is in charge of technology, operations, development, and outsourcing relations. Operations department manages the computing infrastructure that includes computers, in-house server farms, network, and communications media. The development department manages the processes of creating new IS as well maintain the already existing ones. Lastly, the outsourcing relations IS department exists in organizations that have negotiated outsourcing agreements with other companies to provide equipment, applications, and other services. Another function to take into consideration is the data administration that’s sole duty is to protect data and information assets by establish data standards and data management practices and policies. This shows how in-depth the IS department and how they function in every field.

            There are a variety of IS-related jobs that are both interesting and paid well. Some of these jobs include (but not limited to): Business analysts, systems analyst, programmers, test QQ engineers, technical writers, tech support engineers, network administrator, IT consults, technical sales, IT Project manager, IT manager, database administrator, business intelligence analyst, CTOs, CIOs, and CISOs. The amount of responsibility is different for each field, but all serve a purpose with different criteria, tasks, and salary ranges. To get up to CTO, CIO, and CISO positions, workers would have to work their way up, adapt to situations/scenarios, and have a very deep and in-depth knowledge on security threats, protections, and trends.

            Outsourcing the process of hiring another organization to perform a service. This is often done to save costs, gain expertise, and to free management time. Organizations and companies often chose to outsource portions of there IS system activities. For management as said above, outsourcing is used to obtain expertise, avoid managerial problems, and free management time. For cost reduction, outsourcing can be used to obtain part-time services as well as gain economies of scale. Lastly for risk reduction, outsourcing can be used to cap financial exposure, improve equality, and reduce implementation risk. Businesses and organizations have found hundreds of ways to outsource information services and portions of information systems. Some businesses choose to outsource the acquisitions and operation of computer hardware, the development of software, and even outsource an entire system. PeopleSoft, for example, gained popularity by providing payroll function as an outsourced service.

            Where there are advantages of outsourcing, there are also risks. Some of these include loss of control, benefits outweighed by long-term (or LT) costs, and they’re not being an easy exit. The loss of control include vendor in driver’s seat, technology direction, potential loss of intellectual capital, product enhancements in wrong priority, vendor management, direction or identity changes, and finally if the CIO is superfluous. Benefits outweighing by LT costs include having a higher unit costs forever, paying for someone else’s mismanagement, outsource vendor is de facto sole source in time, and may not get what you pay for but you don’t know it. Lastly, the no easy exist include critical knowledge in minds of vendors, NOT employees and expensive and risky to change vendors. When choosing to outsource, it is quite a difficult decision because businesses are constantly thinking about ups and downs. The correct decision in outsourcing may not be clear, but only time and events will enable the company to make a decision in doing so.

            Lastly, when becoming a user of information systems, we have both rights and responsibilities with your relationship with the IS department. We have the right to computer hardware and programs, reliable network and internet connections, a secure computing environment, protection from viruses/worms/threats, contribute to requirements for new system features and functions, reliable systems development and maintenance, prompt attention to any problems or concerns, properly prioritize problem fixes and resolutions, and effective training. Our list of responsibilities includes: Learning basic computer skills, learn standard techniques and procedures for the applications we use, follow security and backup procedures, protecting your passwords, use computers and mobile devices according to employer’s computer-use policy, make no unauthorized hardware modifications, install only authorized programs, apply software patches and fixes when directed to do so, devote time to respond carefully to requests for requirements for new system features and functions, and avoid reporting trivial problems.