Chapter 11 Information Systems Management "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 Copyright © 2016 Pearson Education, Inc 11-2 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 Copyright © 2016 Pearson Education, Inc 11-3 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 Copyright © 2016 Pearson Education, Inc 11-4 Study Questions Q1: What are the functions and organization of the IS department? Q2: How 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? Copyright © 2016 Pearson Education, Inc 11-5 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 Copyright © 2016 Pearson Education, Inc 11-6 How Is the IS Department Organized? Copyright © 2016 Pearson Education, Inc 11-7 What IS-Related Job Positions Exist? Copyright © 2016 Pearson Education, Inc 11-8 What IS-Related Job Positions Exist? (cont'd) Copyright © 2016 Pearson Education, Inc 11-9 What IS-Related Job Positions Exist? (cont'd) Copyright © 2016 Pearson Education, Inc 11-10 What Are Outsourcing Alternatives? Copyright © 2016 Pearson Education, Inc 11-21 Risks of Outsourcing Copyright © 2016 Pearson Education, Inc 11-22 Benefits Outweighed by Long-Term Costs • 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 Copyright © 2016 Pearson Education, Inc 11-23 Q4: What Are Your IS Rights and Responsibilities? Copyright © 2016 Pearson Education, Inc 11-24 What Are Your IS Rights and Responsibilities? (cont’d) Copyright © 2016 Pearson Education, Inc 11-25 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 Copyright © 2016 Pearson Education, Inc 11-26 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 Copyright © 2016 Pearson Education, Inc 11-27 Security Guide: Are We Protecting Them from Me or Me from Them? • 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? Copyright © 2016 Pearson Education, Inc 11-28 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? Copyright © 2016 Pearson Education, Inc 11-29 Guide: Is Outsourcing Fool’s Gold? • 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 profitgenerating 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 Copyright © 2016 Pearson Education, Inc 11-30 Active Review Copyright © 2016 Pearson Education, Inc 11-31 Case Study 11: iApp$$$$ U • 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 Copyright © 2016 Pearson Education, Inc 11-32 What Are Your Options? • Do as much as you can yourself • Determine how many SDLC stages you can 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) Copyright © 2016 Pearson Education, Inc 11-33 What Are Your Options? (cont’d) • 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 Copyright © 2016 Pearson Education, Inc 11-34 Copyright © 2016 Pearson Education, Inc 11-35 ... Inc 11- 9 What IS-Related Job Positions Exist? (cont'd) Copyright © 2016 Pearson Education, Inc 11- 10 What IS-Related Job Positions Exist? (cont'd) Copyright © 2016 Pearson Education, Inc 11- 11... Education, Inc 11- 20 What Are Outsourcing Alternatives? Copyright © 2016 Pearson Education, Inc 11- 21 Risks of Outsourcing Copyright © 2016 Pearson Education, Inc 11- 22 Benefits Outweighed by Long-Term... someone else’s front room.” (Drucker) Copyright © 2016 Pearson Education, Inc 11- 17 Popular Reasons for Outsourcing IS Services Copyright © 2016 Pearson Education, Inc 11- 18 Risk Reduction • Caps