IS Strategy, Governance and Ethics.docx

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Department
Computer Science
Course
Computer Science 1032A/B
Professor
Diane Goldstein
Semester
Winter

Description
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  This competitive strategy is supported through activities in the value chain, which consist of a collection of business processes supported by information systems Supporting an Organizations IT  How many computers?  What type of computers?  Purchased hardware when?  Operating system – which one to support?  What applications are being used?  Purchased licensed software when? Support?  Networks?  Internet access  Email  Upgrades – for everything! Information Technology Architecture  Basis framework for all the computers, systems and information management that supports organizational services  Enterprise architect (new job description) o Creates a blueprint of an 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 a complicated document  Popular method created by John Zachman (1980s) o Divides system into two dimensions  Six reason for communication (what-data, how-function, where-network, who- people, when-time, why-motivation)  Stakeholders (planner, owner, designer, builder, implementer and worker)  Intersection provides view of the enterprise  First step to understanding how IS support business objectives Alignment, its Importance and Difficulty  Alignment o Process of matching organizational objectives with IT architecture o Not a straightforward process  E.g. – low-cost retailer vs. High-end technology (Wal-Mart) o Measured as the degree to which the IT department’s missions, objective and plans overlapped with the overall business mission, objectives and plans  Ongoing continuous challenge o Fitting IT architecture to business objectives  Typically communication between business and IT executives is the most important indicator of alignment Information Systems Governance  Ensure organizations: o Produce good results o Avoid bad results  Development of consistent management policies and verifiable internal processes  Establishment of rules applying to o Sourcing, policy, security and internal investments  Goal is to improve the benefits of an organization’s IT investment over time o Reporting structures o Review processes o Improve quality o Reduce service costs and delivery times o Reduce IT risks o Better support for business processes  Organizational governance associated with information technology architecture  Laws o Sarbanes-Oxley (SOX) Act (US) o Bill 198 – Budget Measures Act (Canada)  Laws force companies to comply with standards o Collecting o Reporting o Disclosing information Sarbanes-Oxley Act and Budget Measures Act  Sarbanes-Oxley (SOX) Act (US) o Revision of Exchange Act (1934) o Governs reporting of publicly held companies o Enacted to prevent corporate fraud  WorldCom  Enron  Bill 198 – Budget Measures Act (Canada) o Similar legislation introduced in Canada o Increased level of responsibility and accountability of executive management of publicly held Canadian companies  Both require management o Create internal controls  Produce reliable financial statements  Protect organizations assets o Issue statement indicating this has been done  Organizations external auditor o Issues an opinion on the quality of controls and management’s statements  Expose management and external auditor to fin
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