Managing Operations

1
Chapter 8

• Managing Operations

2
Key Points in Chapter 8

• Outsourcing IS Functions
• Security in the Internet Age
• Disaster Recovery

3
What are Operations?

• Operations vary for every company
• Hardware, communications lines and equipment,
  software, data center personnel, disaster
  recovery, etc.
• The Operations management perspective
• Moving from an inward to an outward approach

4
Outsourcing IS Functions

• Focus and Value driven
• Expansion of Outsourcing
• IT Outsourcing
• Transitional Outsourcing
• Best-of-Breed Outsourcing
• Shared Services
• Business Process Outsourcing
• E-Business Outsourcing
• Application Service Providers (ASPs)

5
Outsourcing IS Functions Cont

• Managing Outsourcing
• Organizational Structure
• Joint committees should be utilized with an
  executive representing each party
• Governance
• Service Level Agreements (SLAs) should be
  established
• Day-to-Day Working
• Manage expectations
• Communicate frequently

6
Security in the Internet Age

• Threats
• Most security breaches occur on the inside and
  through viruses
• Mobile computing increases threat
• Securitys Five Pillars
• Authentication verifying authenticity of users
• Identification identifying users to grant them
  access
• Privacy protecting info from being seen
• Integrity keeping info in original form
• Nonrepudiation preventing parties from denying

7
Security in the Internet Age Cont

• Countermeasures
• Firewalls
• Hardware or software that controls access between
  networks
• Public Key Encryption
• Uses two keys and requires significant
  administration -
• Virtual Privacy Networks
• Private line that uses tunneling technology and
  constant encryption

8
Disaster Recovery for Distributed Systems

• Internal Resources
• Multiple Data Centers
• Distributed Processing
• Backup Telecom Facilities
• LANs

• External Resources
• Integrated Disaster Recovery Services
• Specialized Disaster Recovery Services
• Online and Offline Data Storage

9
Whats New?

• Y2K changed company mindset from survival mode
  to planning mode
• Third party data centers are becoming more
  popular
• Companies that keep data centers in-house still
  outsource e-business operations
• Simplification achieved through application
  centralization

10
CLJ

• How to Plan for the Inevitable by Sarah D. Scalet
  http//www.cio.com/archive/031502/plan.html
• Fleet Credit Card Example
• Incident Response Planning
• knowing how to respond to a security
  incidentbe it a computer worm, mistake, hacker
  or the mere suspicion of a problemcan save a
  company time, money and even its reputation.
• Best measures are preventative
• Pull together an incident response team

11
CTQs

• In regard to security threats, insider abuse and
  unauthorized access rank second and third highest
  in percentage of misuse. What can companies do to
  prevent this from occurring ? How might this
  affect employees who have never thought of doing
  such things?
• What can be learned about disaster recovery from
  the September 11th incident? What precautions
  would you take for your company?

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The End