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Information Technology > Chapter 1 - Information Systems Functions > Flashcards

Chapter 1 - Information Systems Functions Flashcards

1
Q

Responsibilities of IS/IT Manager or Director:

A
  • IS/ IT strategy development.
  • IS/ IT risk management.
  • IS / IT infrastructure.
  • Overseeing steering committee.
  • Ensuring adequate resources available to IS/IT support team and org.
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2
Q

Required from IS/IT Manager or Director:

A
  • Technical Know how.
  • Business sense / understanding.
  • Management ability.
  • Organization`s understanding.
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3
Q

Common tasks of IS/IT committee

A
  • Compliance with IS/It strategy.
  • Compliance overall organization strategy.
  • IS/It resources used effectively.
  • Monitoring IS/IT projects.
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4
Q

Data Base Administrator Key tasks

A

• maintaining data dictionary.
• coordinating data and information to use.
• Analyzing data requirements.
· Data integrity implementation and controls.
Recording data ownership.

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5
Q

Operation Control - Key tasks include :

A 
·Maintain IS/IT infrastructure.
·Monitor network usage.
·keep users infromed.
·Virus protection.
·fault fixing.
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6
Q

System Development Staff tasks

A

·Analysis
·Design
·Testing
·Evaluation and review

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7
Q

Data Processing Staff tasks

A

·Decentralized processing.
·Key skills
i.Insert accurate data.
ii.Understanding and performing the task.

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8
Q

Information Center Staff tasks

A

·Definition
·Distribution systems + centralized support + coordination.
·Help
i.Telephone, email and searchable knowledge or in person.
ii.Remote diagnostic.
iii.Sufficient + efficient staff + better relations with suppliers.
·Problem Solving
i.FAQs.
ii.Training applications.
iii.Problem in system -> modify or invest in new.
·Improvements
i.Viable suggestions.
ii.Bring improveemnts.
·Standards
i.IC : set + encourage conformity to common standards.

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9
Q

Standards in IS/IT

A

Standards
a.Hardware standard : Equipment compatible + use in different departments.
b.Software standards : Information shared + worked upon.
c.Programming standards : apps developed following best practices + easy to modify.
d.Data processing standards : certain conventions -> facilitates sharing, storage and retrieval.
·Security
i.IC - > preserve security of data in many ways :
a.utility programs + procedures : backups + auto save.
b.Antivirus and firewalls.
·End user applications development.
i.Technical library / guide.
ii.Documentation.
Both extend life and usefulness of a program.

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10
Q
  1. Centralization and Decentralization
A

A centralized IS / IT department invloves all IS / It staff and functions being based out at a single central location such as headoffice.
A decentralized IS / IT Department invloves IS / IT functions being spread out throughout the organization.
No single best structure + each structure has its own merits and demerits.

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11
Q

Advantages of a Centralized IS/IT department

A
  • Single data used by all + centralized processing.
  • Better security + easy to apply standards and protocols.
  • Expert satff + assistance quick.
  • Economies of scale in computer equipment.
  • Better monitoring at head office.
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12
Q

Disadvantages of a Centralized IS/IT department

A
  • Local offices over-rely at head office.
  • Technical staff assistance is time consuming.
  • Fault at head office creates problems for local offices/branches.
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13
Q

Advantages of a Decentralized IS/IT department

A
  • System reports tailored for local needs + easy to modify system modules.
  • Easy to allocate costs.
  • Self sufficient for information.
  • Quick access to information.
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14
Q

Disadvantages of a Decentralized IS/IT department

A
  • Self sufficiency increases lack of coordination.
  • Increased risk of data duplication.
  • control may be difficult- uncoordinated info system.
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15
Q
  1. Accounting Issues
A

Maintenance and providing Is is expensive.

♦ Costs incurred :

1 - Capital Costs :
• Hardware
• system installation
• cabling

2 - Oneoff Costs:
• System redundancy cost.
• Initial Training
• System development.
	3 - Revenue Costs :
	• IS/IT staff cost
	• Supplies like paper, ink etc
	• Power
	• Maintenance
	• Ongoing training
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16
Q

♦ Accounting Costs

A

Charged out as :
• Administrative overheads.
• At cost.
• At market price.

17
Q

1 - IT as administrative overheads

A

Treated as general administrative overheads and not allocated to user departments.

Advantages
• Easy and cheaper to administer as not cost allocated.
• No conflict over cost between user dept and IS/IT dept.
• May encourage innovation nad experimentation as no cost allocated.

Disadvantages
• User dept may make economically unjustifiable demands.
• User dept may accept sub standard services.
• Inefficiencies of IS/IT dept are less exposed.
• True picture of financial performance of user depts is not shown.

18
Q

2 - IT charged out at cost *1

A

Allocation of cost to user departments.
Basis of allocation : Per hour/Per transaction / Per hour of analysts of Programmers time / No. of workstations etc. These are costly + complex and time consuming, therefore — > Estimate of IS/IT use.

Advantages
• simpler than MV method.
• user depts encouraged to consider cost of usage.
• Encourages efficiency. (Complaints)

Disadvantages
• Inefficiency of IS/IT dept passed on to others. To avoid -> charge budgeted cost.
• Basis of charging -> realistic. (or conflict)
• Difficult to choose realistic basis.

*1 Under both methods IS function is considered as a cost center and as drain for resources rather than a tool for competitive advantage

19
Q

3 - Market based charge out methods

A

IS/IT dept acts as a profit centre, sets own prices and charges; aim is profit.

Advantages
• User dept: right to standard quality services. If sub standard services; chance to improve +/ ultimately choose outside supplier

  • Encourages entrepreneurial attitude. IT manger = in charge of dept + make profit - motivation.
  • Efficiency + innovation + more better services = more buy = greater profit = greater bonuses.
  • True pic of dept performance + cost charged to each dept is market based.

Disadvantages
• Difficult to decide rates, esp if no comparable service provider outside org.
• If rates = excessive; service usage below optimal level = IS/IT & user dept relations strained.
• If services are poor, not in co.`s interest to but from outside. IS/IT costs need to be covered + under-use of resources available.

20
Q

Establishing IS/IT function as a separate company

A

○ Market based charge out method can be taken to a further step; a separate company.
○ Main co. purchases from the IS/IT co. + main co. have option to switch to other suppliers.
○ IT co. aims for profit.

Additional Advantages
♠ Market based advantages + 
• Increased revenue = increased profits.
• Increased opportunities + career.
• Economies of scale if co. grows.

Additional Disadvantages
♠ Market based disadvantages +
• IS/IT staff may lose touch with main co.
• Increased Admin staff.
• Standard of service to main co. may suffer + focus = new clients.
• Setting app prices for new customers is difficult - tasks differ from main co.

21
Q
  1. Other Organizational Issues
A

♦ Organization Structure
Org structure is related to IS/It structure + If org disperses decision making power to local offices - > require effective local management system.

♦ Constant Change
Reliance on IS/It commits an org to continual change -> technological obsolescence.

♦ Interoperability
Refers ability to share + exchange info & facilities to other systems regardless of technology platform / service provider.

Implies ability to cope with a variety of data structures + easy transfer of skills between applications and technologies.

♦ Backward compatibility
A program is backward compatible if it can use data files created on older versions.
Hardware is backward compatible if it can run the same software as previous model.
Much needed because it eliminates the need to start afresh.
Sacrifice it, if advantage of new technology is visioned.

♦ Legacy System
Old + outdated system + difficult to replace.
Main reason of continued use : replacement cost + time + efforts in introducing new system.
Need specialized knowledge to maintain + staff leave.
Data in specific format + compatibility issues.
Examples of File Conversion Issues:
• Establishing formats of data.
• Assessing data held for accuracy and completeness.
• Automatic file conversion issues due to compatibility.
• Ensuring transferred data is avilable in reqd format.

♦ Open System
Org develop system over time focusing on different functions at a time.
Ease of ineraction with each other is considered.
Examples of inefficiencies caused by systems incompatibility:
• Hardware from different suppliers do not interact.
• Separate systems can`t use data from same source.
• Software that is unable to interact with other packages.

Open system aim: compatibility between different systems. 								
An open system supports org wide functions + allow interoperability of networks and systems + Access data from any part of org.
22
Q

Outsourcing Definitions

A

Outsourcing is the contracting out of specified operations or services to an external vendor.

23
Q

Types of Outsourcing

A
  1. Adhoc
    Org has short term reqt of IS/IT skills. E.g programming an addon in software.
  2. Project management
    Development and installation of a particular IS/IT project is outsourced. E.g. New accounting software.
  3. Partial
    Some IS/IT services are outsourced. E.g. hardware and network management.
  4. Total
    3rd party responsible for Is/It services, software and staff.
24
Q

Levels of Services Provision

A
  1. Time-share
    Vendor charges on the basis of no. of hours used + software ownership rests with vendor or the co.
  2. Service bureaux usually focus on a specific function
    Traditionally bureaux provide same type of services to many org e.g payroll processing. Own IT infrastructure, bureaux services decreased.
  3. Facilities Management(FM)
    Facilities management is the managing of company`s IS/It facility by an FM Co. All equipments remain with the co. but the facility is managed by an FM co. E.g. Accenture and Cap Gemini.
25
Q

Organizations involved in Outsourcing

A
  1. Facilities Management Companies
    As discussed above
  2. Software Houses
    Software houses concentrate on provision of software services. Includes: feasibility studies, systems analysis + design, OS development, tailor made apps, specialist system advice.
  3. Consultancy Firms
    Some firm does it at high level giving mgt direct insights and advices on general approach to solving problems.
    Other specialize in feasibility studies and recommending on which software house/ manufacturer will supply right system.

Larger consultancies are provided by major accountancy firms and smaller consultancies are also provided by individuals with specialist experiences.

Categories of Consulting Activities (Beaumont and Sutherland)
• strategic studies, involving development of business strategy or IS strategy of an organization.
• Specialist studies, specialized area of expertise e.g. ERMS.
• Project management.
• body-shopping for a project.
• Recruitment of permanent and temporary staff.
4. Hardware manufacturers and suppliers
Computer manufactures provide equipment + services.

26
Q

Developments in Outsourcing

A

Outsourcing facilities are becoming increasingly flexible. Three trends:
• Multiple Sourcing : Outsourcing different functions of IS/IT to a range of suppliers.
• Incremental Approach : outsourcing different functions of IS/IT with the passage of time and feasibility.
• joint Venture Sourcing : Org entering in a JV with an IS/IT co. Agreed basis + esp development of specialized software that can be sold to other companies.

• Application Service Providers : ASPs are third parties that manage and distribute software services and solutions to customers across a WAN. Modern form of Bureaux.

27
Q

Managing Outsourcing Contract

when taken decision to outsource, consider:

A
  1. Do not outsource your strategic system - high degree of knowledge required.
  2. Do not outsource the complex / sophisticated.
  3. Isolated system are highly recommended to outsource e.g. payroll.
  4. System requirement should be made clear.
  5. Vendor should have expertise in IS/IT.
  6. Good relation with vendor.
  7. Legal contract with vendor should be tied for a reasonable time.
28
Q

Contents of services level agreement / contract (SLA/C)

A
  1. Service level required - Penalties, response time, uptime %, deadlines for tasks.e.g. City credit card division is outsourced.
  2. Time frame.(period)
  3. Exit route - another supplier or move-back in house.
  4. Priorities.
  5. Software ownership - At the end of contract who will retain the software, it should be mentioned in contract
  6. Employment issues - Work forced hired, who will retain the work forced.
29
Q

Advantages of Outsourcing

A
  • Fixed Price - FM co. bear cost + high quality.
  • Economies of scale - FM co. may serve different clients with new technology.
  • Long term contract - Encourages future planning.
  • Experienced work forced - moved on different projects, career development.
  • Skills are retained - Employee do not leave.
  • New skills availability - Different client, vast experience.
  • Flexibility - contract permitting. Project basis of work, FM co. rotates staff.
30
Q

Disadvantages of Outsourcing

A
  • Information in other hands.
  • Information / System unavailability
  • Information leakage
  • No Competitive advantage as new developments in IT shall be available to other companies as well.
  • Vendor Failure is our failure
  • Locked for long time - unsatisfactory level of service.
  • No experience of Information Technology
  • Cost may exceed expectation

Information Technology (2 decks)

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