Information Systems Management

Chapter 11

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"I Don't Know Anything About Doing Business in India."

• PRIDE development team discuss pros and cons of outsourcing to India.

• Ajit Barid former programmer of SharePoint cloud features.– Record of success, personally known by Maggie

• Started own company that's growing quickly.

• Don’t know if it's well managed.

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Bottom Line

• Offshore outsourcing risky, especially for small projects and organizations

• Decisions need to be made, even without strong evidence—tough for small business or project

• Only time will tell if decision was good or bad

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IS Management Must Be Performed Somehow

• Plan information systems and infrastructure

• Develop and adapt IS and infrastructure

• Maintain IS and operate and manage infrastructure

• Protect infrastructure and data

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Study Questions

Q1: What are the functions and organization of the IS department?

Q2: How do organizations plan the use of IS?

Q3: What are the advantages and disadvantages of outsourcing?

Q4: What are your user rights and responsibilities?

Q5: 2025?

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Q1: What Are the Functions and Organization of the IS Department?

• Plan use of IS to accomplish organizational goals and strategy

• Manage outsourcing relationships

• Protect information assets

• Develop, operate, and maintain organization’s computing infrastructure

• Develop, operate, and maintain applications

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How Is the IS Department Organized?

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What IS-Related Job Positions Exist?

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What IS-Related Job Positions Exist? (cont'd)

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What IS-Related Job Positions Exist? (cont'd)

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What IS-Related Job Positions Exist? (cont'd)

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What IS-Related Job Positions Exist? (cont'd)

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Q2: How Do Organizations Plan the Use of IS?

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So What? Why Do You Need to Know About IS Management?

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• Users of IS services, helpful to know the factors driving standards and policies

• Need to know the responsibilities and organization of your future employment

• Help you guide your employees behavior

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Ethics Guide: Using the Corporate Computer

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• Suppose you are a manager at a company with this stated policy. “Computers, email, and the Internet are to be used primarily for official company business. Small amounts of personal email can be exchanged with friends and family, and occasional usage of the Internet is permitted, but such usage should be limited and never interfere with your work.”

You learn one of your employees has been engaged in activities listed in the Ethics Guide.

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Ethics Guide: Wrap Up

• Employers have right, both legally and ethically, to monitor your computer use. Many do.

• How to deal with employees who are misusing their computer resources. Know the organization’s official policy.

• Understand excessive personal computer use by your employees reflects negatively on your managerial ability.

• Manage positively. Give employees sufficient work.

• Follow up with schedules and deadlines.

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Q3:What Are the Advantages and Disadvantages of Outsourcing?

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• Process of hiring another organization to perform services• Any value chain business activity can be outsourced• Outsourcing done to save costs, gain expertise, and free

management time

• “Your back room is someone else’s front room.” (Drucker)

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Popular Reasons for Outsourcing IS Services

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Risk Reduction

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• Caps financial risk

• Ensures level of quality or avoids substandard quality

• Less likely to pick wrong hardware, software, network protocol, or implementing tax law changes incorrectly

• Risk management vendor’s responsibility

• Easier to hire another vendor than fire and rehire internal staff

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International Outsourcing

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• India– Large, well-educated, English-speaking, labor cost

70-80% less than US

• China and other countries

• Modern telephone technology and Internet-enabled service databases

• Customer support and other functions operational 24/7

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What Are Outsourcing Alternatives?

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Risks of Outsourcing

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Benefits Outweighed by Long-Term Costs

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• Unit fixed cost contract may prevent benefits of economies of scale

• Vendor defacto sole source

• Changing pricing strategy

• No easy exit

• Difficult to know if vendor well managed

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Q4: What Are Your IS Rights and Responsibilities?

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What Are Your IS Rights and Responsibilities? (cont’d)

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Q5: 2025?

• Internal hardware infrastructure moved to the cloud

• Rise in use of mobile devices at work

• BYOD policies that meet employer needs and strategies

• Use of social media inside the organization in true Enterprise 2.0 style

• Organizational knowledge management will be done using social media

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Q5: 2025? (cont'd)

• Social media sites will have a project component

• SDLC will be a thing of the past

• BYOD policies are doomed as employees move off the company network

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Security Guide: Are We Protecting Them from Me or Me from Them?

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• Illustration of a company in the process of setting a BYOD policy

• Risk of data loss isn’t new

• Thumb drives and laptops make it easier

• Why would an employee steal data?

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Security Guide: Are We Protecting Them from Me or Me from Them? (cont'd)

Wrap Up

• Get involved in IS committees as a user to increase your personal social capital while learning

• BYOD policy is leading edge of organizational IT use

• In a job interview, ask if the company has a BYOD policy. If so, what does he or she think of it?

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Guide: Is Outsourcing Fool’s Gold?

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• Outsourcing computer infrastructure has advantages and disadvantages

• Pay premium for services of former employees, now managed by strangers and paid by vendor

• Vendor managers evaluated on how well they follow vendor’s profit-generating procedures

• Turn your operation into a clone of their other clients

• All critical knowledge in vendor’s employees, prohibited from going to work for you

• Expensive leap away from responsibility

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Active Review

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Case Study 11: iApp$$$$ 4 U

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• Ideas are only as good as their implementation

• How can you go about getting your iOS application developed?

• Average cost of creating an iPhone app $6453– Programming time cost excluding time for specifying

requirements, designing user interface, testing, Apple review process

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What Are Your Options?

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• Do as much as you can yourself

• Determine how many SDLC stages you can do yourself

• Design user-interface and specify ways users will employ it

• Develop a test plan skeleton

• Perform some testing tasks yourself

• Outsource to US or EU programmer ($10k)

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What Are Your Options? (cont’d)

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• Outsource off-shore or hire a computer-science student–Students may be undependable.

• Elance.com – clearing house for iOS development experts – Lists developers, their locations, typical costs and

ratings of previous customers

• Hire developers in India, Russia, the Ukraine, Romania, and other countries ($2000+)

• Break big app into smaller, easily doable smaller apps

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