Chapter 11
Information Systems Management
"I Don't Know Anything About Doing Business in India."
• Team discuss outsourcing PRIDE development to India.
• Ownership of Ajit Barid (“Invincible Cloud”) not known.
• Successfully developed iOS for iPAD.
– Can they do Android?
• Company growing quickly, but is it well managed?
• Security, time risks?
• Bite the bullet and hire own programmers?
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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: 2026?
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Q1: What Are the Functions and Organization of the IS Department?
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Plan use of IS to accomplish organizational goals and strategy.
Manage outsourcing relationships.
Protect information assets.
Develop, operate, maintain computing infrastructure.
Develop, operate, 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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Salaries for Information Systems Jobs
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Q2: How Do Organizations Plan the Use of IS?
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So What? Managing the IS Department
• Know factors driving IS standards and policies.
• Know user responsibilities and organization of your future profession.
• Help guide employees IS-related behavior.
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Ethics Guide: Privacy vs Productivity BYOD Dilemma
• New committee to provide input for company BYOD policy.
• Misconception: How to restrict mobile devices to improve productivity.
• IS staff role
– Users need guidance on acceptable/unacceptable use.
– Suggested “configuring” people’s personal devices.
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Ethics Guide: Privacy vs Productivity BYOD Dilemma (cont’d)
• Company security concerns
– Data theft
– Malware
• Employee security concerns
– Personal privacy
Key loggers, monitoring software.
Deleting personal files and programs/apps.
• Ethical to control devices employees purchased?
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Q3:
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What Are the Advantages and Disadvantages of Outsourcing?
Process of hiring another organization to perform services.
Save costs, gain expertise.
Save direct/indirect management time and attention.
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Any value chain business activity can be outsourced.
“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 quality or avoids substandard quality.
Less likely to pick wrong hardware, software, network protocol, or implementing tax law changes incorrectly.
Vendor’s responsible for managing risks.
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International Outsourcing
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India
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China and other countries, too.
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Large, well-educated, English-speaking, labor cost 70-80% less than US.
Modern telephone technology and Internet-enabled service databases.
Customer support and other functions operational 24/7.
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IS/IT Outsourcing Alternatives
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What Are the Risks of Outsourcing?
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Benefits Outweighed by Long-Term Costs
Dangers
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Unit fixed cost contract prevents economies of scale.
Vendor defacto sole source.
Changing pricing strategy.
No easy exit (tightly integrated vendor).
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)
Treat IS dept. employees
professionally.
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Q5: 2026?
• Internal hardware infrastructure moved to the cloud.
• Ubiquitous mobile devices at work.
• BYOD policies meet employer needs and strategies.
• Use of social media in true Enterprise 2.0 style.
• Social media support project management.
• IoT provides opportunity for innovation within company.
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Q5: 2026? (cont'd)
• IS depts. lose control of devices.
• IS department cultural change.
– CIO full-fledged member of executive suite.
– Key player for gaining competitive advantage.
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