Experiencing MIS 8th by m kronenke chapter 11
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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.
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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?
• 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
• 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?
• 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
• 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
• 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
• 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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