BBA 3551, Information Systems Management

Course Learning Outcomes for Unit VII Upon completion of this unit, students should be able to:

6. Assess the key issues involved in managing the components of IT infrastructure. 6.1 Explore the concept of outsourcing, including the advantages and risks it presents. 6.2 Apply the concept of outsourcing to a given scenario.

Course/Unit Learning Outcomes

Learning Activity

6.1 Unit Lesson Chapter 11 Unit VII Case Study

6.2 Unit Lesson Chapter 11 Unit VII Case Study

Reading Assignment Chapter 11: Information Systems Management

Unit Lesson Managing Information Systems The information systems (IS) function of an organization is critical for organizational success. Because of this, it is important to manage this asset responsibly. There are five major functions to managing an IS department, and they are even more critical for young startup IS departments. You can learn about these functions in your textbook in uCertify. The readings for this unit discuss these major functions in detail, so in this lesson, we will expand upon this to take a closer look at effective leadership in IS. There are many challenges facing managers and organizational leaders today such as meeting organizational goals and strategies, coping with changes in business relationships and technology, encouraging innovation, managing organizational knowledge, managing an organizational environment that is embracing mobility, and handling a workforce that is becoming more virtual. Managing such a challenging and diverse environment requires strong leadership, but, unfortunately, many organizational leaders and managers are not well equipped for the job (Kroenke & Boyle, 2017). In the past, organizations used the top-down, or hierarchical, approach to manage IS in the organization. The top-down approach is when upper management makes the strategic decisions, and employees are expected to follow along, restricted in their ability to be creative or show initiative. This traditional style of leadership in IS can be problematic in that upper management may not have the experience or knowledge in IS to make those types of decisions. Organizational leadership must understand the nuances of IS and recognize that they cannot force IS to conform to the methods of the rest of the organization (Kroenke & Boyle, 2017).

UNIT VII STUDY GUIDE

Information Systems Management

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By using the bottom-up approach, IS managers and staff can act in a leadership capacity and interact with upper management regarding IS decisions (Figure 1). This is especially true when there are new innovations to technology. IS professionals will recognize the value of these innovations and better understand how this new technology could affect the organization’s future, especially its competitive strategy. Outsourcing Outsourcing occurs when you hire another company or organization to perform a service. The textbook uses a good example of how outsourcing can be used to help an organization perform a service. In this example, Google, known as an organization that provides search and mobile application services, did not have the resources to provide cafeteria services to its employees. In

order to provide this service to its employees, the company hired an outside vendor that specialized in food services to manage and maintain the employee cafeteria at Google. This way, Google can use its resources for its main function, providing search and mobile services (Kroenke & Boyle, 2017). The same concept applies to many organizations that do not specialize in IS. Instead of obtaining and maintaining IS resources, organizations can outsource IS activities so that they can concentrate on their essential function or front-room activities. Outsourcing provides several advantages such as obtaining expertise in an area in which the company lacks. In the Augmented Reality Exercise System (ARES) scenario discussed at the beginning of Chapter 11 in the textbook, management understood that they needed to build an application for this system but recognized that they did not have the staff or the expertise to do this. To solve the staff and management problem, they outsourced this activity (Kroenke & Boyle, 2017). Outsourcing can also help reduce costs. In the Google example from the textbook, by outsourcing the cafeteria activities to another company, Google will not have to deal with the costs of training new cafeteria employees or deal with the day-to-day costs of maintaining the cafeteria. All of these costs would generally be covered under a fixed-price cafeteria contract (Kroenke & Boyle, 2017). There are types of outsourcing, such as nearshore, offshore, and onshore (work-at-home), which can provide solutions for organizations that do not have the resources to perform certain activities outside the realm of their corporate function. Each of these will be discussed in the following paragraphs. Nearshore Outsourcing Nearshore outsourcing occurs when a company outsources to a nearby country such as from the United States to Canada, Mexico, or Puerto Rico (Figure 2).

Figure 1: Daily Sprint meeting with management (Klean Denmark, 2011)

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Nearshore outsourcing has several advantages. Because the source of the work is being provided relatively close to the company requesting the service, there may be fewer time zone issues and fewer cultural and/or language difficulties. Also, the geographical proximity makes communication and traveling between the two countries easier (Gerbl, McIvor, Loane, & Humphreys, 2016). This would be especially advantageous for companies outsourcing complex information technology (IT) projects that may require frequent and ongoing communication between the two entities. In addition, in many cases, workers in nearshore organizations will be more highly trained than those in countries much further away such as in India and China, two of the top IT outsourcing destinations for many U.S. organizations (Oshri, Kotlarsky, & Willcocks, 2015). Nearshore outsourcing also provides organizations with cost-saving benefits because work is sent to another location where workers will generally be paid lower wages. Another benefit is that, because of close proximity to the United States, foreign workers will be awake and working during the contracting organization’s hours of business should communication need to occur (Gerbl et al., 2016). On the other hand, it may not always be a good idea to use nearshore outsourcing. In some cases, it may be more expensive because the costs of using foreign workers may not be significantly lower. Another thing to consider is time costs. Will the nearshore organization be able to operate independently, or will the contracting company have to provide guidance and resources? Another cost to consider is traveling costs. Will traveling between the two countries be necessary, and if so, how often (Gerbl et al., 2016)? Nearshore outsourcing may not be feasible when the IT project is

complex or if the tasks involved require management oversight or direction from the contracting company (Gerbl et al., 2016). Nearshore outsourcing would be ideal for simple, day-to-day IT tasks such as customer service (help desk), development, analytics, maintenance, and production.

Figure 2: Nearshore outsourcing example

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Offshore Outsourcing Offshore outsourcing is when an organization contracts another company to perform operations in a foreign country (Figure 3). For example, a company might outsource to Europe, Japan, South America, and Asia.

Outsourcing to foreign countries can have some disadvantages. One disadvantage is cultural and/or language differences. Other disadvantages are time zone issues and the geographical distance, which could make communication and traveling between the two countries difficult, time- consuming, and expensive (Gerbl et al., 2016). However, in many cases, workers at offshore organizations may be highly trained and generally paid lower wages, which can help reduce costs for the contracting organization. As in nearshore outsourcing, the organization must consider whether or not the offshore company can operate independently or if it will need constant guidance and resources. If traveling may be required, consider the costs involved with that. If the offshore company cannot operate independently or if excessive traveling may be required, it might be better to use onshore outsourcing if the bottom line is to save money (Gerbl et al., 2016). Similar to nearshore outsourcing, offshore outsourcing would not be ideal for complex IT projects that may require frequent and ongoing communication. Again, much like nearshore outsourcing, it might be best to use offshore outsourcing for simple, day-to-day operations such as help desk, development, analytics, maintenance, and production (Gerbl et al., 2016). Onshore Outsourcing Onshore outsourcing is when operations are sent to another company located within the organization’s home country (Figure 4). In the Google example, Google outsourced their cafeteria operations to another company within the same locality. Several advantages to onshore outsourcing are that there will not be any cultural/language barriers, and communication can take place during the time that the contracting company is open for business. Traveling, if needed, can be managed efficiently to improve the bottom line (Gerbl et al., 2016). However, onshore outsourcing has some disadvantages; the main disadvantage is a decrease in cost savings. In most cases, onshore outsourcing will not provide cost savings because the direct labor costs can be high (Gerbl et al., 2016). Although, in the case of Google, as discussed above, by not having to expend resources into managing and maintaining a cafeteria, Google can use those resources for its own operations.

Figure 3: Offshore outsourcing example

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Summary IT assets are critical components of organizations and need to be managed efficiently. Organizational structure is also important. Depending on the size and type of the organization, the organizational structure will determine the relationships between employees and managers. This relationship is important for how business leaders develop processes and systems that align with the organization’s goals and strategies. One of the main reasons companies consider outsourcing is to save costs, gain expertise, and help free up time for managers. Offshore labor costs can be considerably less than wages for onshore and nearshore locations. Outsourcing can also provide expertise for the company that lacks this resource, especially in the development of innovate products. Outsourcing also helps management focus on the company’s main operations instead of on functions in which they do not have the expertise. Some of the disadvantages of outsourcing to foreign countries is time and cultural and language barriers. If travel is required, this may be expensive and difficult to manage efficiently. Another concern is that even though costs can be considerably less, there is no guarantee that the products or services will be of high quality.

References

Gerbl, M., McIvor, R., & Humphreys, P. (2016). Making the business process outsourcing decision: Why

distance matters. International Journal of Operations & Production Management, 36(9), 1037–1064. Retrieved from https://search-proquest- com.libraryresources.columbiasouthern.edu/docview/1826443062?accountid=33337

Klean Denmark. (2011). Daily Sprint meeting [Image]. Retrieved from

https://commons.wikimedia.org/wiki/File:Daily_sprint_meeting.jpg Kroenke, D. M., & Boyle, R. J. (2017). Using MIS (10th ed.). New York, NY: Pearson. Oshri, I., Kotlarsky, J., & Willcocks, L. P. (2015). The handbook of global outsourcing and offshoring (3rd ed.).

New York, NY: Palmgrave Macmillan.

Suggested Reading In order to access the following resources, click the links below. The following articles all explore the topic of outsourcing and are excellent materials that will help you complete your assignment for this unit. You are encouraged to review them. Gerbl, M., McIvor, R., & Humphreys, P. (2016). Making the business process outsourcing decision: Why

distance matters. International Journal of Operations & Production Management, 36(9), 1037–1064. Retrieved from https://search-proquest- com.libraryresources.columbiasouthern.edu/docview/1826443062?accountid=33337

Overby, S. (2017, February 17). Robotic process automation makes nearshore outsourcing more attractive.

CIO. Retrieved from https://search-proquest- com.libraryresources.columbiasouthern.edu/docview/1869482273?accountid=33337

Figure 4: Onshore outsourcing example

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Persson, J. S., & Schlichter, B. R. (2015). Managing risk areas in software developm offshoring: A CMMI level 5 case. JITTA: Journal of Information Technology Theory and Application, 16(1), 5–23. Retrieved from https://search-proquest- com.libraryresources.columbiasouthern.edu/docview/1693330445?accountid=33337

Ryan, P. (2009). Outsourcing: A historical cost-saving mainstay. CRM Magazine, 13(2), 34. Retrieved from

https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc t=true&db=a9h&AN=36315837&site=ehost-live&scope=site

Learning Activities (Nongraded) Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information. To test your knowledge of the material covered in this unit, complete the activities listed below.

 Chapter 11 Active Review

 Chapter 11 Using Your Knowledge

 Chapter 11 Collaboration Exercise

 Chapter 11 Review Questions

 Chapter 11 Cards The activities are located within the chapter readings in uCertify. The Chapter 11 Active Review, Using Your Knowledge, Collaboration Exercise, and Review Questions are located at the end of the chapter. The cards can be accessed by clicking on the Cards icon within uCertify, which is located to the right of the chapter title, and the icon in uCertify resembles the image shown below.

BBA 3551, Information Systems Management

Course Learning Outcomes for Unit VIII Upon completion of this unit, students should be able to:

1. Analyze the key differences between data, information, information technology (IT), and information systems (IS).

2. Explain the similarities and differences of personal knowledge and management tools.

3. Examine the importance of mobile systems with regard to securing information and knowledge.

4. Explain how information systems can be used to gain and sustain competitive knowledge.

5. Evaluate the approaches to developing organizational knowledge management strategies.

8. Evaluate major types of hardware and software used by organizations.

Course/Unit Learning Outcomes

Learning Activity

1 Unit VIII Essay

2 Unit Lesson Chapter 12 Unit VIII Essay

3 Unit VIII Essay

4 Unit VIII Essay

5 Unit Lesson Chapter 12 Unit VIII Essay

8 Unit VIII Essay

Reading Assignment Chapter 12: Information Systems Development

Unit Lesson Business Processes – The Software Development Life Cycle (SDLC) Information technology (IT) projects can fail for a number of reasons such as missed deadlines, failing to meet requirements, lack of upper-management support, and exceeding the projected budget. Using a development method can help reduce the risk of project failure. One of the development methods that system developers use is called the software development life cycle, or SDLC for short. The SDLC method is also known as the waterfall method because it has five phases; each phase is completed in sequence and serves as a framework for developing an information system (IS) or an IT project (Figure 1) (Kroenke & Boyle, 2017).

UNIT VIII STUDY GUIDE

Information Systems Development

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The first phase—the planning phase—is a very critical part of the SDLC process because, at this point, the system’s designer or developer must define the problem that the organization is facing. Common concerns are the lack of competitiveness with other organizations in the industry. For example, management might voice concerns about the lack of efficiency for an inventory control system because the system is outdated (Kroenke & Boyle, 2017). In the planning phase, it is helpful to remember the four “Ws”—who, why, when, and what.

 Who: Who will be the main users of the system?

 Why: What problem will the system solve?

 When: When will the system need to be implemented?

 What: What will the system do (Kroenke & Boyle, 2017)?

Testing System Scenario – Phase I In a recent management meeting, several managers voiced concerns about the high rate of project failure when implementing new systems. The organization has a facility for testing systems before they are deployed, but there is no formal process. It is this process that managers believe is the reason for the high rate of system implementation failure. For example, a new database system was implemented, but several users complained that their system would crash when using a certain feature. In phase I of the SDLC process, system developers will need to address the four “Ws”—who, why, when, and what.

1. Who: The main users of this system are applications testers, QA testers, systems engineers, security analysts, and software developers.

2. Why: The new system will provide a way to process and track the development and testing of new systems before they are implemented.

3. When: The system will need to be operational within the next 6 months before the next IT project is complete.

4. What: The new system will solve the testing process problem that appears to contribute to the failure of IT system implementations.

The second phase—requirements gathering and analysis—is where the designer or developer must identify and define the problem that needs to be solved. From this information, they can then develop the requirements for the system and analyze those requirements to determine if a new system will solve the problem with the current system. To analyze the problem and determine the requirements for the new system, system developers will need to use techniques for gathering the necessary information for the system. Some examples of information gathering are interviews, observations, surveys, or a joint application design (JAD) system. A JAD system is where users, management, and IT professionals gather in a workshop to discuss

Phase I: Planning

Phase II: Requirements Gathering and

Analysis

Phase III:

Design

Phase IV:

Implementation

Phase V:

Mainetenance

Figure 1: The five phases of the SDLC process (Kroenke & Boyle, 2017)

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and develop an application. The JAD approach incorporates various viewpoints so that the application is developed according to these requirements (Kroenke & Boyle, 2017).

Testing System Scenario – Phase II A JAD session was held where various personnel involved in the systems testing process were present. The system requirements were identified, and these are listed below:

 how the users would use the system,

 how they currently use the system,

 what problems were present and how the system should address these problems,

 what the users expect from the system,

 how decisions will be made and the data that will be needed to make the decisions,

 where the data will come from,

 how the data should be presented, and

 what tools should be made available to the users to help make decisions.

A formal workflow design diagram was developed to help develop the requirements (Figure 2).

Figure 2: Pictured is the testing process flow for system implementation. The workflow diagram clearly shows how data will flow between processes, external entities, and data stores.

In the third phase—design, a solution is defined for an IS that will best solve the problem that the organization is facing. Generally, this solution is outlined and documented with the requirements and specifications of the new system. This documentation can be in the form of diagrams, databases, files, forms, and reports. These documents should provide details about the hardware, software, processes, networking components, and any other system specifications (Kroenke & Boyle, 2017). The design phase is completed in three parts: conceptual design, logical design, and physical design. The conceptual design is generally an overview of the system that details how it will work. This can be done through the use of flowcharts, computer-aided software engineering (CASE) tools, or models. The second part is the logical design where more specific information is provided such as the hardware and software that will make up the system. The third part, physical design, is where a graphical representation of the system is presented. This includes the hardware, networking components, and other technical specifications. This is also where the final design/specification document is developed to assist in the final stage of the process (Kroenke & Boyle, 2017).

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Testing System Scenario – Phase III Now that the team has determined how the system should work, a conceptual design should be developed to illustrate the workings of the new system (Figure 3).

Figure 3: Pictured is a conceptual model example. Next, a logical design should be developed to illustrate how the system will work, including the hardware, software, and networking components.

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Figure 4: Pictured is a logical design example. Lastly, the physical design should be developed to explain the physical components and interaction.

Figure 5: Pictured is a physical design example.

In the next stage—implementation, the designs from phase II are implemented. Components for the system, such as hardware, software, and labor, are procured, and the system is configured. In addition, employees are trained, the system is tested, security measures are implemented, documentation is created, and a disaster recovery plan is developed (Kroenke & Boyle, 2017).

Testing System Scenario – Phase IV Now that the design phase has been completed and the final design approved, the team moves forward to put the system in place.

1. Procurement Team

a. Procure all hardware and software per the design/specifications document. b. Inventory all procurements.

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2. Design/Development Team

a. Put together the system including the software and networking components. b. Document processes, and record changes to the design/specifications document.

3. Testing Team

a. Test the system according to the QA checklist. b. Resolve any issues, and record events to the design/specifications document.

4. Training Team

a. Train users of the new system. b. Provide documentation as needed.

5. Security Team

a. Implement security scans and set user permissions. b. Resolve any issues and record events to the design/specifications document.

6. Deployment Team

a. Deploy system.

The final phase—maintenance—is probably the most undervalued process in the SDLC model. After the system has been implemented, there is still more work to do. In this phase, the maintenance team assesses the overall functionality of the system. This can be done by analyzing performance data and by talking with users to see if the system is meeting their expectations. If any issues or problems are encountered, the maintenance team should take action and resolve them. One way to accomplish this is to establish a help support system such as a help desk or to train a few technical support personnel on the system so they can provide support to users. If the team finds that the system is not performing as expected, it may be necessary to return to the planning phase and start all over. This is why it is important to not only follow a systems development method but to also have well-designed phases of development (Kroenke & Boyle, 2017).

Testing System Scenario, Phase V The system has been deployed, developers and testers are using the system, and several IS projects have been completed using the new system. Now, it is time to think about supporting the users and evaluating how well or not so well the system is working.

1. Perform system metrics on a monthly basis. 2. Interview system users 1 month after deployment. 3. Identify any system issues, and report them to management. 4. Resolve system issues. 5. Setup a support system for users (help desk, documentation).

Summary The SDLC methodology is only one of several development processes that can be used for developing IS or IT projects. Examples of other development models are service-oriented architecture (SOA), rapid application development (RAD), extreme programming (XP), pair programming, and agile methodology (Kroenke & Boyle, 2017). The type of method used will depend on the organization and the type of system or project being developed. For example, one would not use the SDLC method if the user’s needs keep changing, the system requirements keep changing, the scale of the project is too large or too small, personnel does not have the expertise, or the system specifications have not been fully defined. The SDLC can have more than five phases; for example, one can add an additional phase for testing or software installation, depending on the type of project. While some phases of the SDLC may be more difficult than others, none of these phases should be overlooked. Any oversight could cause the system to fail to meet expectations or perform poorly.

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Reference

Kroenke, D. M., & Boyle, R. J. (2017). Using MIS (10th ed.). New York, NY: Pearson.

Suggested Reading In order to access the following resource, click the link below. Inventor Jim Holley discusses the challenges in creating his first product and the difficult process of inventing his product. He explains how to get a prototype of a product. If needed, a transcript is provided once the video is accessed. Business2Learn. (2011). Entrepreneur’s journey: Making a prototype (Segment 4 of 21) [Video file]. Retrieved

from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://fod.infobase.com/PortalPla ylists.aspx?wID=273866&xtid=47860&loid=138513

Learning Activities (Nongraded) Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information. To test your knowledge of the material covered in this unit, complete the activities listed below.

 Chapter 12 Active Review

 Chapter 12 Using Your Knowledge

 Chapter 12 Collaboration Exercise

 Chapter 12 Review Questions

 Chapter 12 Cards The activities are located within the chapter readings in uCertify. The Chapter 12 Active Review, Using Your Knowledge, Collaboration Exercise, and Review Questions are located at the end of the chapter. The cards can be accessed by clicking on the Cards icon within uCertify, which is located to the right of the chapter title, and the icon in uCertify resembles the image shown below.