Ms2 Course Review

2013 Exam Review Session CGA MS2 Information Systems’ Strategy 1 Agenda Agenda will change as needed to suit your needs †¢ 2 pm Start. †¢ Introduction & Feedback Solicitation †¢ 2:10 – 2:30: Fundamentals of Business Case Analysis †¢ 2:30 – 3:45. Business Case Example/s †¢ Break 10 mins †¢ 3:55 – 5pm Review of key items from all modules †¢ 5pm Finish. 2 Nine-step approach to case analysis Spend about 40% of your time on the case – 90 minutes. 1. 2. 3. 4. 5. 6. 7. 8. 9. Skim the case. Read the case closely. Identify problems, threats, and opportunities. Analyze the data. Generate alternatives.Select the decision criteria. Analyze and evaluate the alternatives. Make a recommendation or decision. Determine Implementation steps & associated Risks. 3 Executive Summary (3 marks) †¢ †¢ †¢ †¢ Objective of the report Key problems/threats/opportunities identified State Alternatives (briefly) Recommendation s – Include completion date & Implementation strategy – Key Risk and mitigation (briefly) †¢ It should suffice as a Stand alone report REVIEW YOUR CASE†¦ 4 Current Situation (10 marks) †¢ List some of the strengths/ Strategic advantages †¢ Is there an existing system? What is wrong? – – – – – List & briefly explain the problems Categorize them if possible Determine Root cause, if there is one single cause? Business fundamental shortcomings? Conflicts? †¢ Does the technology used align / support the business model? †¢ Organizational misfits? †¢ Strategic misfits? 5 Current Situation contd†¦ †¢ What is the Impact? – Cost: quantified in $$ – Does it meet current or future business needs? – Intangible impacts – Strategic †¢ Threats †¢ Opportunities – Competitive – Technological 6 Criteria (5 marks) †¢ What is Criteria?What is it used for? †¢ State it at a high level where you can †¢ Prioritize the criteria – and show that you have done so. †¢ Explain why you chose each criterion †¢ Measuring each criterion? ($, market share/Sales, other goals) – Does it meet current or future business needs? – $ savings – Intangible benefits – Strategic †¢ Threats †¢ Opportunities – Competitive – Technological 7 Alternatives & Recommendation (15 marks) †¢ †¢ †¢ †¢ Improvise & use your imagination (just be logical). Each alternative should be a mostly complete Solution. Each alternative should be feasible.Assess each alternative based upon the criteria – show this analysis in your work. †¢ Other pros & cons (other than in the criteria) †¢ Alternatives don’t have to be mutually exclusive. They can be a combination of the options identified. †¢ Why did you choose the recommended alternative/s? – Benefit s – Explain how it achieves the objective/resolves the problem – Limitations / risks 8 Alternatives & Recommendation (Continued†¦) †¢ Make a recommendation (use a positive voice! ) – Do not just suggest something – Do not say it weakly or ambiguously †¢ I believe†¦ / In my opinion†¦ / My thoughts are†¦ Clearly recommend an action and explain †¢ what it is and †¢ why it fits the criteria. (if you have not already in the analysis). 9 Risk Management Plan (15 marks) Read Carefully the requirements of this section. Does it require an Implementation / Action plan as well? †¢ Narrative explanation – Implementation Strategy/Approach (at a high level)? – Assumptions / Requirements †¢ High level Risks, Ethical, Privacy issues? (Probability & Impact) †¢ Mitigation Strategies †¢ Plan ‘B’ †¢ Actual implementation steps and, within each step – Step Risk if any and mitiga tion plan if any †¢ †¢ †¢ Time Lines / Time Frame / Schedule Detail Costs Responsibilities Project Phases, if any†¦ short term, long term 10 Exam Review Session †¢ Go over Business Case – Tony’s Auto Services Inc. from 2010 June exam 11 Some multiple choice tips†¦ †¢ When answering a true and false question on the Exam simply break down complex sentences into smaller phrases. Each phrase has to be true or the entire sentence is false. †¢ And, for multiple choice questions try to answer the question before looking at the answer choices. Remember that a perfect answer may not be given as a choice.Choose the best answer. – Source Certified Fraud Examiners (CFE) Exam Coach. 12 Strategic Alignment †¢ Look for IT Strategy to support Business strategy. †¢ IT to differentiate from competition †¢ IT to reduce costs †¢ IT to bring business â€Å"Quick to market† †¢ IT to create new markets / products †¢ IT to tie suppliers and customers 13 Porter's five forces †¢ †¢ †¢ †¢ †¢ threat of new entrants bargaining power of customers bargaining power of suppliers threat of substitute products or services rivalry among existing competitors 14 Threat of New Entrants Mitigation Strategies: – High entry cost. Equipment, buildings, infrastructure, etc. – Mature Information Systems – Expertise & Knowledge – Compete aggressively on Price – Lock in partners for a competitive edge – Brand recognition. Product Differentiation. – Focus on a Market niche – Operating Efficiencies Pace of change – IT 16 Moore’s Law & Metcalfe’s Law †¢ †¢ †¢ †¢ Dropping price of computer Storage Dropping cost of processing (â€Å"mips†) Double the power every 18 months Metcalfe’s Law – The value of the network is the square of the sum of the nodes. Therefore stick with po pular technology 17 Strategic Planning for IS †¢ How is Planning done? – Top Down / Strategic Analysis – Bottom Up / Enterprise Analysis – Scenario Planning / â€Å"What if’† Analysis †¢ When is Planning done? – – – – – – Short Term Long Term Mergers & Acquistions Economic downturns As part of a Budgeting Exercise After a major disaster. 18 Planning Issues †¢ †¢ †¢ †¢ Scalability Capacity planning Standardization vs. differentiation Legacy systems – Upgrade to new system or integrate with new technology but old core. 9 Total Cost of Ownership †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Hardware Software Installation Training Support Ongoing Maintenance & S/W Upgrades Infrastructure costs Data Backups, Business Continuity, Insurance Downtime Space, Energy, Security 20 Six IT Decisions – IT should not make 1. 2. 3. 4. 5. 6. How mu ch to spend Allocation amongst Business Processes Firm-wide IT capabilities How much IT Security & Privacy issues Blame over failure 21 IT Governance 22 10. 3 OVERVIEW OF SYSTEMS DEVELOPMENT 23 Achieving Success in IS Projects †¢ †¢ †¢ †¢ †¢ clearly defined goals excellent communication management involvement definitive timelines Project management skills S. M. A. R. T Objectives. Why do they Fail? †¢ lack of understanding of the desired results (imprecise targets) †¢ poor estimating techniques for budgeting and scheduling †¢ small, unadjusted schedule slippage, which cumulatively results in a major delivery delay †¢ lack of project management skills or leadership †¢ poorly trained analysts and programmers †¢ conflicting goals and objectives among the project team members and users use of inappropriate software or hardware tools 25 Make Vs. Buy – Issues – – – – – – – â€⠀œ – Cost Specialized functionality Ability to integrate with other existing Systems Ability to change the s/w Maintenance / Service Contract Update / Upgrade Speed of delivery KNOWLEDGE – Business vs. Industry vs. Functional Responsibility vs. Control vs. Risk Conversion 27 Parallel †¢ Pros †¢ †¢ †¢ †¢ Least risk of not meeting objectives Compare results to ensure correctness Gentle weaning off of the ‘old’ system Resilient to errors. Cons †¢ Duplication of effort †¢ Requires additional computing resources †¢ Not possible in every situation 28 Pilot †¢ Pros – – – – Allows for a small, low risk, controlled test bed Allows for a Go-NoGo decision w/o large investment Limits disruption & harm Helps overcome user resistance †¢ Cons – Still Costly to run 2 systems – even if scaled down – Results may not extrapolate to ‘full install’ – Choice of Pilot site is critical 29 Phased †¢ Pros – – – Incremental approach with functional Phase-in Allows for Phased Systems’ Development Allows time for orientation of the new technology Usually easier to manage the change †¢ Cons – Still running 2 systems, – Longer disruption 30 Direct Cutover †¢ Pros – Quick – Easy on resource utilization (only 1 system running) – Low cost †¢ Cons – – – – – – Risky Requires full training & preparation Requires ‘all hands’ on deck for Implementation Causes spike in Help desk calls Creates disruption, uncertainty, confusion Errors can cause Business Loss / interruption 31Internet as a business tool Advantages †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Wider Market exposure New ways to communicate (text, voice, video) Economical (ISP, programming, Shipping) 24x7x365 Anywhere, Anytime Off loads work to the customer Convenient for the customer if well designed. Quick & Easy to update / Change – Real time Consistent Information / Prices 32 Internet as a business tool Disadvantages †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Not everybody has access & high speed Impersonal & not so interactive No touch & feel of the goods Replacement for good business practice?Lack of consumer trust Legal challenges Socio-economic factors (availability of access) Privacy Challenges Groupware & Collaborative s/w †¢ †¢ †¢ †¢ †¢ MS NetMeeting / Communicator / Remote PC support Rolling out s/w updates and self healing s/w IBM Lotus Notes & Domino EMC Documentum Virtual Meeting, avatars , e-Rooms (SDLC Project Mgmt) Private Cloud computing – – – – VPN Storage space Applications Virtualization †¢ Data Warehousing †¢ Data Mining †¢ Business Intelligence s/w Strategic use of the Internet †¢ †¢ †¢ †¢ †¢ Cost Reduction Strategic Alliances Differentiation of products & services Customer Loyalty (custom mass production) Value Chains To take advantage of Internet Technologies: – Keep focused on Business Strategy (Internet doesn’t compensate for bad or missing strategy) – Simplify & Integrate your customer facing processes – to enable self service – Adhere to evolving IT standards Rationale for E-Business †¢ Diminished Information Asymmetry †¢ Richness vs. Reach †¢ Reduced transaction costs Ways to Reduce Costs Customer Self serve – Eliminate middle person – Customer data entry – Self research and reduced consultation time †¢ †¢ †¢ †¢ Reduced Staffing levels Reduced Re-work Streamlined communication Faster 37 Securing online transactions The key issues in a transaction processing environment are †¢ identification (Who are you? ) †¢ authentication (How can I be sure you a re who you say you are? ) †¢ authorization (What authority do you have to make whatever transaction you seek? ) †¢ privacy (How can we be sure our transaction is private? †¢ nonrepudiation (How can we each be assured that the other will not later deny the transaction? ). Benefits / Limitations of Networking †¢ Sharing – Printers, Drives, Scanners, etc †¢ e-mail †¢ Centralized Administration – Distribution of S/W, Policies, Patches, A/V – Tracking, monitoring, Backing up data – Remote repair & Support †¢ Groupware †¢ Limitations – Cost, Security, Vulnerability 39 Client – Server Computing †¢ Centralized Computing †¢ Distributed Computing †¢ Advantages – Data Security & Centralization – Administration – Off Loads processing to Clients Disadvantages – extra complexity – Cost 40 Advantages of Outsourcing †¢ cost savings through economies of scale and s cope †¢ infusion of cash through liquidation of computer assets †¢ facilitate transition of data centre from cost centre to profit/loss centre †¢ ability to rapidly introduce new technology and access IT talent †¢ Better Scalability †¢ focus on core competencies †¢ Allows an objective look at process improvement by O/S 41 Limitations of Outsourcing loss of direct managerial control †¢ difficulty in reversing decision †¢ outsourcer’s viability (financial strength, responsiveness, service, and so on) †¢ dilutes the strength of in-house staff – Unique, one of a kind application support? – Will key staff stay permanent or be rotated? †¢ †¢ †¢ †¢ †¢ †¢ †¢ vendor doesn’t know your business lack of flexibility untenable long-term contracts; fixed price versus service trade-off requires skills in partnership management strategic factors Privacy issues Monitoring / Managing Outsourcers 42 Risk Mitigation Strategies †¢ Risk Assessment †¢ Restrict Physical access Log all visitors – in/out †¢ †¢ †¢ †¢ †¢ †¢ Cameras, Card Readers, Security Guards Alarms & monitoring Intrusion Detection Systems (network) Firewalls Restricted Network access Policies, signoff, and Security Awareness training 43 Risk Mitigation Strategies Cont†¦ †¢ Authentication (know, have, and are) – Password Strategies, Single Sign-on, Pass Phrase †¢ Authorization (Open / need to know) †¢ Access invocation / revocation procedures – Hiring / Firing / Promotion †¢ Segregation of Duties †¢ Adequate Supervision & Sign offs †¢ Monitoring, Logging, Reporting, and Acting on Information. 44 Good Luck!! 45