Chapter Nine- Textbook Notes.docx

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Computer Science
Computer Science 1032A/B
Diane Goldstein

CompSci 1032a Taylor Ward November, 15, 2011 Chapter Nine: IS Strategy, Governance, and Ethics Relationship between Organizational Strategy and Information Technology Planning - Use Porter’s five forces model to consider the industry structure and then develop a competitive strategy for the organization - This competitive strategy is supported through activities in value chain, which consist of collection of business processes supported by information systems Supporting an Organizations IT - How many computers? Type of computers? Purchase hardware when? Operating system- which one to support? Applications being used? Purchased licensed software when? Networks, internet access, email Information Technology Architecture - Basic framework for all computers, systems, and information management that support organizational services - Enterprise architect (new job description) o Creates blueprint of organization’s information systems and the management of these systems o Organizational objectives, business processes, databases, information flows, operating systems, applications and software, and supporting technology, IT Architecture - No standards yet, typically complicated document - Popular method created by John Zachman (1980) o Divides system into two dimension: six reasons for communication (what-data, how-function, where-network, who-people, when-time, why-motivation) and stakeholders (planner, owner, designer, builder, implementer, and worker) - First step to understanding how IS support business objectives Enterprise Architecture- Framework Alignment: It’s Importance and Difficulty - Alignment: process of matching organizational objectives with IT architecture, not straightforward process (low-cost retailer vs. high-end technology of Wal-mart), measured as degree that IT department’s missions, objectives, and plans overlapped overall business missions, objectives and plans - Ongoing continuous change: fitting IT architecture to business objectives - Typically communication between business and IT executives is most important indicator of alignment CompSci 1032a Taylor Ward November, 15, 2011 Information Systems Governance - Ensure organizations: produce “good” results, avoid “bad” results - Development of consistent management policies and verifiable internal processes - Establishment of rules applying to sourcing, privacy, security, and internal investments - Goal is to improve benefits of organization’s IT investment over time o Reporting structures, review processes, improve quality, reduce service costs and delivery time, reduce IT risks, better support business processes o Organizational governance associated with Information Technology Architecture  Laws: Sarbanes-Oxley Act (US) and Bill 198- Budget Measures Act (Canada)  Laws, force companies to comply with standards of collecting, reporting, disclosing info Sarbanes-Oxley Act and Budget Measures Act - Sarbanes-Oxley Act (2002): revision of Exchange Act (1934), governs reporting of publicly held companies, enacted to prevent corporate fraud (WorldCom, Enron) - Bill 198: similar legislation introduced in Canada, increased level of responsibility and accountability of executive management of publicly held Canadian companies - Require managements to create internal controls: produce reliable financial statements, protect organization’s assets, and issue statement indicating this has been done - Organization’s external auditor issues opinion on quality of controls and management’s statements - Expose management and
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