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- Chapter 8
- Information Systems Management In Practice 5E
- McNurlin & Sprague
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- 33% Systems and Programming
- 70% Maintenance
- 30% New Development
- 10% Administration and Training
- 57% Operations - Involve more $ than any other part of the MIS
department
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- Buy more equipment
- Continuously fight fires and rearrange priorities, getting people to
solve the problems at hand
- Continually document and measure what you are doing, to find out the
real problems, not just the apparent ones. Then set standards - the
preferred solution
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- External: What the customer sees: system uptime, response time,
turnaround time equal customer satisfaction
- Internal: Of interest to systems people: computer usage as % of
capacity, disk storage used
- Problems reported by external measures can be explained by deviations in
internal measures.
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- Companies have “cleaned their operational house.”
- Operations managers are beginning to manage outward.
- Operations are being simplified.
- Certain operations are being offloaded.
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- Outsourcing means turning over a firm’s computer operations, network
operations, or other IT function to a vendor for a specified time.
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- Focus on core businesses: In the 1980s, this led to huge amount of
merger and acquisition activity.
- Shareholder value: Companies were “priced” based on their shareholder
value, that is, their discounted cash flow, as a result of high-yield
bonds that allowed a few people to buy a company and leverage it with
debt.
- Management must stress value, they must consider outsourcing in all
their nonstrategic functions.
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- Buying their professional services: planning, consulting, building, or
maintaining application, network and training
- Buying their products:- with or without training
- Buying their transactions: e.g., payroll checks, credit rating
- Systems integrator: to handle planning, development, maintenance, and
training for IS project
- Outsourcing: time-based contract for IS activities
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- Figure 8-2 Shows how IT has moved from the more traditional professional
services category to outsourcing.
Changes:
- IS Management loses an increasing amount of control
- Vendors take more risk
- Vendors’ margins improve
- Choosing the right vendor becomes more important
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- IT outsourcing
- Transitional outsourcing
- Best-of-breed outsourcing
- Shared services
- Business process outsourcing
- E-business outsourcing
- Application service providers (ASPs)
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- Typically, parties establish layers of joint teams.
- Top-level team: final word in conflict resolution
- Operational team: oversees day-to-day functioning
- Joint special purpose teams: created from time to time to solve
pressing issues
- Committees: oversee the use of formal change management procedures
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- The foundations of governing an outsourcing relationship are laid in the
contract.
- Service Level Agreement (SLA)
- Responsibilities, performance requirements, penalties, bonuses
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- Recommendations to manage day-to-day interactions:
- Manage expectations, not staff
- Realize that informal ways of
working may disappear
- Loss of informal ways of working
may add rigor
- Integration of the two staffs
requires explicit actions
- The best way to manage day-to-day
is communicate frequently
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- Buying parts and services that go into one’s own products and services
- Assisting one’s suppliers to improve their product and services by
generally improving their processes
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- Threats (see 2000 Survey – Figure 8-5)
- Organizations are under attack from inside and outside their electronic
perimeter
- Attacks are being detected
- Attacks can result in significant losses
- Defending from attacks requires more than the use of information
security technology
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- Approaches hackers use:
- Cracking the password
- Tricking someone
- Network sniffing
- Misusing administrative tools
- Playing middleman
- Denial of service
- Trojan horse
- Viruses
- Spoofing
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- Authentication: verifying the authenticity of users
- Identification: identifying users to grant them appropriate access
- Privacy: protecting information from being seen
- Integrity: keeping information in its original form
- Nonrepudiation: preventing parties from denying actions they have taken
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- Three techniques used by companies to protect themselves
- Firewalls: Control access between
networks
- Used to create intranets and
extranets, which only employees and authorized business partners can
access
- Implementation
- Packet filtering to block “illegal” traffic, which is defined by the
security policy… or
- By using a proxy server, which acts as an intermediary
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- Public key encryption: A third party issues two keys for a person and
then manages the keys.
- Private key: is meant to be kept secret and is used by the person to
send and receive encrypted messages.
- Public key: it is made public and can be used by anyone to send an
encrypted message to the person with the private key, or to read
messages from that person.
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- Virtual Private Networks (VPN): maintains data security as it is
transmitted by using:
- Tunneling: creates a temporary connection between a remote computer and
the CLEC’s or ISP’s local data center.
Blocks access to anyone trying to intercept messages sent over
that link.
- Encryption: scrambles the message before it is sent and decodes it at
the receiving end.
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- Three ways to use VPNs:
- Remote Access VPNs: give remote employees a way to access an enterprise
intranet by dialing a specific ISP.
- Remote Office VPNs: give enterprises a way to create a secure private
network with remote offices. The
ISP’s VPN equipment encrypts all transactions.
- Extranet VPNs: give enterprises a way to conduct e-business with trading
partners.
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- Multiple data centers
- Distributed processing
- Backup telecommunication facilities
- Local area networks
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- Integrated disaster recovery services
- Specialized disaster recovery services
- Online and off-line data storage facilities
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- Consider the risks of a natural disaster in selecting a data center
location.
- Create a plan to return to the primary site after a disaster.
- Do not expect damaged equipment, disks, and tapes to always be replaced,
monitor equipment.
- Plan for alternate telecommunications.
- Test site under full workload conditions.
- Maintain critical data at the alternate site.
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