IS IT Strategy Module - Report Example

Information Systems Name Institution Date Table of Contents Table of Contents 2 Introduction 2 Question 1 3 Components 3 Stages 4 Question 2 7 Reasons for outsourcing 7 Benefits of outsourcing 9 Negative impacts of information technology outsourcing 11 Question 3 12 SWOT analysis of the information technology infrastructure 13 Strengths 13 Weaknesses 14 Opportunities 15 Threats 16 Strategic plan 16 Conclusion 17 Bibliography 18 Introduction Information system is increasingly becoming one of the most popular concepts in the operations of businesses. This is due to the growing popularity and access to information technology tools. This has given a chance for most organizations to be involved with the use of information systems. The strategies used in the implementation of the information systems depend on the goals and objectives of the organization. It is also important to note that the use of information system is among the strategies of most of the business organizations. This attributed to the benefits of using information system for the purpose of carrying out the business operations. Smooth running of businesses has also been achieved by most of the organizations due to the adoption of the concepts of information system (Naffah, 2012). The paper thus discusses the concepts of information system and its relevance to business organizations. Question 1 Components The information systems have various components that enable its efficient use within a business organization. The hardware and software are the major components of an information system. The hardware is mainly the computers while the software is composed of programs that support the computers. Data and information is also a component that is required in the information system. This data is useful for the organization and contains the information that enables the company to operate. Procedures and policies are also required during the operations for the purpose of enabling the success of the process and preventing any misuse of the system. People are also considered as components during the operations of the information system. This is because the use of information system requires several the efforts of several people who are conversant with the issues of information systems. Communication networks forms a basis for enabling the system to be used by several people in the company in different departments. This plays an important role in connecting the people within the organization. This may involve the use of internet connectivity which is important during the process. The use of the internet enables various processes to be carried out automatically within the organization (Davis, 2010). Stages The information system has to undergo through various stages before it is successful. The first stage involves the business organization identifying the need for the use of information system within the business. This is then followed by the development of the system boundaries and concepts which also defines the cost effectiveness of the information system. The process of planning then begins art this stage and it involves sting up the project management plan and other planning documents that supports the information system. The requirements analysis is then done to determine the user requirements as well as the functional requirements of the information system. This stage is important as it defines the success of the information system. The information system may not achieve the ultimate goal if the requirements are not met. The design of the information system is then developed after the requirements have been established. The design is also for the purpose of ensuring that the requirements are met by the system. Converting the design into real information system is done at the development stage. This is achieved by installing the necessary components required in the information system. This process also requires a lot of expertise for it to work (Bélanger, 2011). Testing of the databases is important after the installation has been done and it acts as a measure of defining the success of the information system. The integration test is then done to ensure that the information system conforms to the required standards and is able to achieve the aims and objectives of the design. At this stage, the quality assurance staffs are always involved due to their expertise. The test analysis reports are then used for the purpose of making recommendations about the information system. The implementation stage is usually based on the test analysis results. The implementation stage involves putting the information system into use with the organization. This stage is also done after the organization is satisfied that the information system will meet the goals and objectives of the company. The operation and maintenance is an important stage and it is usually done on a regular basis in order to ensure the continuity of use of the information system. This process is usually done by experts in the information system field. Disposition is the last stage and it is usually done after the information system is no longer able to function. However, it is important to ensure that the process is done properly to avoid loss of data (Stair, 2011). The passive information systems are usually composed of data that cannot be altered. This type of system can only respond to the queries that are based on the data that it contains. It cannot answer any other query that has no relationship with the data that it contains. An example of this system within an organization is the file of the employees. Through an ordinary search, it is possible for a supervisor or manager to find the detail of the employees. However, they cannot alter the data of the employees as it is not possible to make changes on the file as it requires some codes which the managers do not have. On the other hand, the active information system contained data that can be altered when a certain procedure is carried out. An example of this system is the stock control system. The data is usually altered once the number of stock is reduced or increased. This system ensures that the process of stock taking is done automatically and hence improving on its accuracy. Information technology governance is also an important concept that supports the passive and active systems. This is due to the leadership that it offers in the information technology operations (Laudon, 2011). Information technology governance is composed of a structure that oversees the development of the information technology for the purpose of achieving the full benefits within the organization. This is done in a controlled way and it is also for the purpose of ensuring that the long term goals have been achieved. The information technology governance within an organization involves everyone. This includes the board members, executive management, staff and customers. The customers provide important feedback information that guides the process. However, it is important to note that the Chief Information Officer is the most important person in the development of information technology. This officer is in charge of developing the information technology infrastructure within an organization. The supervision of all the activities that involves the information technology in the organization is also done by this officer. Supervision of the staff in the information technology department is also done by the Chief Information Officer. The role played by the Chief Information Officer in realizing the goals and objectives of the company are thus important to an organization (Melville, 2010). During the development of the strategies of the company, this officer also plays an important role in advising the company on the issues regarding information technology. Question 2 The ownership of information technology strategy occurs in my organization. The purpose of ownership is to ensure that the correct strategies are developed as well as implemented within the company. The strategies related to the information technology are important to the organization as it is among the main objectives of the company. The Chief Information Officer is the owner of the information technology strategies. It is thus the responsibility of the officer to ensure that the information system of the company is working in accordance with the strategies developed. In order to ensure that the strategies are in line with the aims and objectives of the company, the information officer is usually consulted before any issue related to information technology is initiated. The Chief Information officer is also responsible for selecting the right team for implementing the strategies that he has developed. In other instances, the officer is allowed to hire personnel outside the company to assist in the implementation of the information technology strategies. The ownership of the information technology strategy has thus contributed greatly to the growth of the information technology infrastructure. The right ownership of information technology within an organization determines the rate of its growth (Schultze, et al, 2011). Reasons for outsourcing Information technology outsourcing is increasingly becoming popular among many organizations. This is due to various reasons that are associated with the outsourcing of information technology. Reduction of costs is one of the major reasons for outsourcing in many business organizations. Establishing an information system may require a lot of money due to the procedures that are involved. These procedures are quite costly as most of the items and components have to be purchased. It is also a must to pay for the labor costs which is also high. Putting up an information technology infrastructure is also very costly and requires huge investments. Most of the companies cannot afford putting up these infrastructures due to their costly nature and hence the reason for outsourcing. On the other hand it is also important to note that companies that already have the information technology infrastructure also seek the outsourcing services. This is also due to the cost implications in the operation of the information technology infrastructure. The reduction in the cost is also important for some organizations in terms of shifting the costs to other activities. The main objective of some companies which is cost reduction has thus been achieved through outsourcing (Dibbern, et al, 2009). In the current business world, the number of companies offering information technology services has been on the increase. This is also a major reason that has contributed to the outsourcing process. Most of the business organizations do not see the need for establishing the information technology infrastructure while the services are cheaper to outsource. On the other hand, outsourcing is much cheaper when dealing with the short term projects. This has thus made most of the companies prefer the outsourcing instead of engaging its department in the process. On the other hand, it is also important to note that outsourcing reduces the time implication factors that are experienced during the establishment of information technology infrastructure. It is evident that an information technology project may take months before it is fully implemented. This is a lot of time and the time taken could have been used for productive activities. It is for this reason that most of the companies prefer outsourcing. The company that has been outsourced already has the required facilities and infrastructure required for the development of the information technology. Outsourcing therefore makes the operations of the company easier within a short period of time. Other companies may outsource as it continues to develop it infrastructure. Outsourcing is thus becoming popular among most companies (Hirschheim, 2012). Benefits of outsourcing Outsourcing has been beneficial to the companies that have participated in it in many ways. One of the major benefits of outsourcing is the saving of costs while maintaining the good performance of the company. Most of the companies have limited budgets when it comes to the employment of personnel in the information technology department. However, the management of the companies and the customers require quality services despite the employee shortage. Outsourcing is much cheaper and it still leads to the accomplishment of the required tasks. Outsourcing is thus beneficial to an organization in terms of achieving the goals and objectives of the company in relation to the information technology as well as saving the costs of operation. It is also important to note that outsourcing plays an important role in the issue of addressing employee’s shortage within the information technology department. Employee’s shortage in most cases results in most of the employees being strained in their work. Outsourcing therefore provides a relief to the employees of the company who may otherwise be starin9ng. This is considering the nature of work in the information technology department. Outsourcing therefore plays an important role in increasing the efficiency of the company (Gasco, 2010). Outsourcing is also beneficial to an organization when it does not have adequate capacity or personnel qualified in the information technology field. It is difficult to find an expert in the information technology field with the master’s degree level and above. This could be because of the low levels of education in the particular country. In some of the Asian countries, it is difficult to find highly qualified personnel in the information technology field. Outsourcing therefore addresses this issue and fills the knowledge gap within the organization. It is through outsourcing that the company is able to get highly qualified personnel in the information technology field in most countries. This is beneficial to the company as the employees also benefit from this initiative. The employees will be able to sharpen their skills in the information technology sector by working with the highly qualified personnel in the field. This gives the company advantage in terms off reducing the cost that would have been used to sponsor the employees to train further in the information technology sector. It is thus evident that outsourcing in the information technology sector plays an important role in filling the knowledge gap as well as benefiting the employees (Chou, et al, 2009). Outsourcing of information technology also provides a strategic and tactical benefit to an organization. It is evident that in the current world information technology keeps on changing at a fast rate. This means that an organization has to ensure that it updates its system from time to time. This may be quite costly to the business organization in terms of financial implication. However, it is also important to note that business organizations require the latest technology so as to address the challenges in the information technology department. It is thus important for the business organizations to outsource in order to benefit from the latest information technology concepts. Developing the new system may also take long and may be outdated by the tome the company is through with the development. Outsourcing therefore plays an important role in ensuing that the company uses the latest technology. This gives the company due advantage over its competitors in terms of increasing the efficiency of the company. Adapting easily to the market changes is also one of the important roles that the outsourcing of information technology leads to. Through outsourcing, it is possible for a company to invest in non capital investments. This therefore plays an important role in terms of ensuring the success of the business organization (Llopis, 2010). Negative impacts of information technology outsourcing Outsourcing has several disadvantages in the information technology sector. The information technology sector is a sensitive area that has a lot of information regarding the operations of the company as well as the records of the employees. The confidential information of the company can easily be accessed incase of lack of ethics by the outsourced groups or individual. This may impact negatively on the company as the confidential information may be exposed to the competitors. The managerial control of he chief information officer may be lost due to the outsourcing process. This is because the company that has been outsourced assumes full responsibility of the work given. It may prove difficult to control the operation of the company. In some instances, the quality of the work done may not be god. This is because the company that has been outsourced is mainly about profit making. This may led to poor quality work in the information technology department as the company also tries to cuts expenses. On the other hand, the employees of the company may disagree with the employees of the outsourced company. This may result to poor results for the company due to the stand off. The outsourcing process therefore has some negative impacts on the operations on the company in terms of information technology (Elitzur, 2012). Question 3 IBM is one of the most innovative companies in the field of information technology. It is headquartered in the United States of America and has been in operation for a long period of time. The company also specializes in the production of computer software which is on high demand and has been extremely useful to most of the organizations (IBM, 2013). The company has been instrumental in the provision of information technology related products allover the world. The information strategy that is used by the company is ranked as one of the best in the world. This plays an important role in securing the data of the company and making it easy to access whenever the management needs. This has been achieved through the creation of a department that is charged with creating innovative ways of managing the data of the company. This department is thus responsible for handling all the information technology issues in the company. One of the innovative ideas developed by the department is the information on demand strategy. The information on demand strategy is an important strategy that has been utilized by the company over the years. This has lead to the improvement of the data management system within the company and hence ensuring the security of the data. The se of this strategy has also been adopted by other organizations in the world and has proved to be quite successful in the management of the data. This section thus discusses the analysis of the strategies used by the company to manage its information technology system. The information on demand strategy is important in terms of maximizing the information of the company during its operations. This information technology strategy is quite important in terms of ensuring that the customers are able to access the information of the company. The implementation of this strategy is achieved by the company through an efficient information technology infrastructure that has been put in place. The management of the company on the other hand can control the flow of information within the organization. Through the use of this information system strategy, handling of bulky data is easy for the company and hence ensuring that the data is not interfered with. This strategy is also important in terms of ensuring that the access to the data is only for the authorized personnel during the process of making changes. This has played an important role for IBM in terms of ensuring that the data security is enhanced and hence preventing the interference of the data which may be harmful. The use of information on demand strategy is also an important tool when it comes to the decision making proves by the management. This information technology strategy has been used by the company and it is in line with the goals and objectives of the company. Achieving the aims and objectives of an organization requires the use of the correct strategies. SWOT analysis of the information technology infrastructure Strengths Information technology plays an important role in the operations of IBM. This is because the company relies heavily on the information technology for it to advance. This is also considering that the company also provides goods and services in the information technology sector. The presence of highly trained personnel in the information technology field is one of the strengths of the company in terms of the information technology strategy. The company has professional in the information technology field who are well conversant with the issues of information technology. The development of information technology strategies is thus easier for the company. It is also important to note that the company has experts in all the fields of information technology. This makes the implementation of the information technology easier for the company. On the other hand, the innovative team in the company that is charged with implementing strategies as well as enhancing the infrastructure plays an important role in the company. The team is composed of information technology experts who are very innovative and hence the success of the infrastructure of the information technology. The company also has a variety of tools and equipment that supports the information technology infrastructure. This plays an important role in the operations of the company in terns of information technology management. The presence of experts in an organization plays an important role in the development of strategies as well as implementing (Xu, et al, 2012). Weaknesses The presence of highly qualified members of staff in the information technology sector is evident in the company. The company also invests a lot of money for the training of the experts. However, some of the experts have been leaving the company for green pastures in other companies. This has greatly affected the information technology department of the company. On the other hand, the company has to invest a lot on the innovative team so as to obtain the desired results. This has some negative impacts on the financial resources of the company. This not only affects the outcome of the company as a whole but also the information technology infrastructure. The company also has to invest in complex tools and equipment that supports the development of the information technology infrastructure. This is quite costly for the company as the equipment and tools also require a lot of maintenance. This has negative impacts on the information technology infrastructure of the company. Huge investments are also required in order to sustain the information technology infrastructure. This means that the infrastructure may collapse if the company faces a financial crisis. The weaknesses of a strategy may result to negative impacts on the company (Ghazinoory, 2011). Opportunities Although the company faces some weaknesses in the information technology infrastructure development, it also has some opportunities. The increase in the use of cloud based technology can be adopted by the company. Through the use of this technology, the company will be able to reduce the costs to a great extent and hence enhancing the prospects of the company. It is however important to note that the company is in the process of exploiting this new technology. Outsourcing may also provide the company with am opportunity of reducing the costs. The number of information technology firms that deals with the development of information technology infrastructure is on the increase. The company may consider outsourcing some of the activities in order to reduce costs during the operations of the information technology concepts. This also offers a solution to the hiring of experts which is quite costly to the company. The number of information technology experts is also on the increase and the company can take advantage of this situation to recruit the experts in the field. This is as opposed to investing heavily in the training of its personnel. The opportunities are thus for the purpose of countering the weaknesses that the organization face (Biehl, 2010). Threats The competition from the other companies poses a threat for the company in terms of poaching the experts. Most of the companies have realized that the staffs of the company are highly qualified. This has made it difficult for the company to maintain the experts who are being offered competitive packages elsewhere. The state of the economy is also a threat to the strategies of the company. This is because the profits of the company have impacted negatively by the global economic crisis and hence the difficulties in supporting the strategies that require huge investments. The threats to an organization have negative impacts and should be countered by strengthening the strategies as well as capitalizing on the opportunities (Zhang, et al, 2011). Strategic plan A strategic plan is required by the company for the purpose of monitoring and reviewing the strategic plans of the company. The company should first identify what needs to be done after reviewing the strengths, threats, opportunities and the weaknesses of the company. The goals and objectives of the company should then be identified in relation to the information technology infrastructure. This process should involve al the experts in the information technology department. New visions or missions should be developed at this point so as to ensure that it is in line with the strategies of the company. A proposal should then me made on how the goals and objectives should be attained. This decision should be anonymous and the management should ensure that it has fully supported the proposals. The full support of the management plays an important role in the implementation of the proposal (Steiner, 2010). Conclusion In conclusion, it is important to note that information technology field is quite important for the operation of a company. It is evident that this field requires a lot of expertise for it to be successful. Various components and stages are involved in the implementation of information technology systems. On the other hand governance also plays a role in the management of information systems. The ownership determines the strategies that will be used by the organization. It is also evident that outsourcing is becoming common in the field of information technology. This is due to various reasons like cost saving. However, it is also evident that outsourcing has advantages as well as disadvantages. The strategies used by the company also determine its success. However, a SWOT analysis is important in terms of determining the position of the company in terms of its strategies. Bibliography Melville, N, 2010, Information systems innovation for environmental sustainability, MIS Quarterly, 34(1), 1-21. Laudon, J, 2011, Essentials of management information systems, Prentice Hall, Boston. Stair, R, 2011, Principles of information systems, Cengage Learning. Bélanger, F, 2011, Privacy in the digital age: a review of information privacy research in information systems, MIS Quarterly, 35(4), 1017-1042. Davis, K, 2010, Business information systems, Pearson Education Limited. Naffah, N, 2012, Design of office information systems, Springer Publishing Company, Incorporated. Schultze, U, et al, 2011, Designing interviews to generate rich data for information systems research, Information and Organization, 21(1), 1-16. Dibbern, J, et al, 2009, Information systems outsourcing. Springer. Hirschheim, R, 2012, The information systems outsourcing bandwagon, Sloan management review, 34. Gasco, J, 2010, Information systems outsourcing reasons and risks: a new assessment, Industrial Management & Data Systems, 110(2), 284-303. Chou, D, et al, 2009, Information systems outsourcing life cycle and risks analysis, Computer Standards & Interfaces, 31(5), 1036-1043. Llopis, J, 2010, Information systems outsourcing: an empirical study of success factors, Human Systems Management, 29(3), 139-151. Elitzur, R, 2012, Information systems outsourcing projects as a double moral hazard problem, Omega, 40(3), 379-389. IBM, 2013, Information technology, Retrieved on 11 April 2013, from, Xu, Y, et al, 2012, SWOT analysis of information technology industry in Beijing, china using patent data, In Computational Science and Its Applications–ICCSA 2012 (pp. 447-461), Springer Berlin Heidelberg. Ghazinoory, S, 2011, SWOT methodology: a state-of-the-art review for the past, a framework for the future, Journal of Business Economics and Management, 12(1), 24-48. Biehl, M, 2010, Information and Technology Management (ITM): Competitive Advantage through, E-Business Managerial Aspects, Solutions and Case Studies, 222. Zhang, H, et al, 2011, Information Aggregation after SWOT Analysis-Regarding the Unknown Objectives Values, In Information Technology, Computer Engineering and Management Sciences (ICM), 2011 International Conference on (Vol. 1, pp. 163-166). IEEE. . Read More

The use of the internet enables various processes to be carried out automatically within the organization (Davis, 2010). Stages The information system has to undergo through various stages before it is successful. The first stage involves the business organization identifying the need for the use of information system within the business. This is then followed by the development of the system boundaries and concepts which also defines the cost effectiveness of the information system. The process of planning then begins art this stage and it involves sting up the project management plan and other planning documents that supports the information system.

The requirements analysis is then done to determine the user requirements as well as the functional requirements of the information system. This stage is important as it defines the success of the information system. The information system may not achieve the ultimate goal if the requirements are not met. The design of the information system is then developed after the requirements have been established. The design is also for the purpose of ensuring that the requirements are met by the system.

Converting the design into real information system is done at the development stage. This is achieved by installing the necessary components required in the information system. This process also requires a lot of expertise for it to work (Bélanger, 2011). Testing of the databases is important after the installation has been done and it acts as a measure of defining the success of the information system. The integration test is then done to ensure that the information system conforms to the required standards and is able to achieve the aims and objectives of the design.

At this stage, the quality assurance staffs are always involved due to their expertise. The test analysis reports are then used for the purpose of making recommendations about the information system. The implementation stage is usually based on the test analysis results. The implementation stage involves putting the information system into use with the organization. This stage is also done after the organization is satisfied that the information system will meet the goals and objectives of the company.

The operation and maintenance is an important stage and it is usually done on a regular basis in order to ensure the continuity of use of the information system. This process is usually done by experts in the information system field. Disposition is the last stage and it is usually done after the information system is no longer able to function. However, it is important to ensure that the process is done properly to avoid loss of data (Stair, 2011). The passive information systems are usually composed of data that cannot be altered.

This type of system can only respond to the queries that are based on the data that it contains. It cannot answer any other query that has no relationship with the data that it contains. An example of this system within an organization is the file of the employees. Through an ordinary search, it is possible for a supervisor or manager to find the detail of the employees. However, they cannot alter the data of the employees as it is not possible to make changes on the file as it requires some codes which the managers do not have.

On the other hand, the active information system contained data that can be altered when a certain procedure is carried out. An example of this system is the stock control system. The data is usually altered once the number of stock is reduced or increased. This system ensures that the process of stock taking is done automatically and hence improving on its accuracy. Information technology governance is also an important concept that supports the passive and active systems. This is due to the leadership that it offers in the information technology operations (Laudon, 2011).

Information technology governance is composed of a structure that oversees the development of the information technology for the purpose of achieving the full benefits within the organization.

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