prepared with Hashini Gunatilake, Sandra Perera,

1. Information
Systems
Management

2. • Making wise infrastructure investments
• Choosing and coordinating infrastructure
components
• Dealing with infrastructure change
• Management and governance
Management Challenges

3. Spending on Infrastructure
Total cost of
ownership
Starting out
small
Competitive
forces model

4. Competitive Forces Model

5. Question 1
Assume that you are an executive in a
multi-national Insurance company.
Discuss how you are going to develop
and manage a workable and powerful IT
infrastructure for your company using
this model.

6. 1. Market demand for the firm’s
customers, supplier &
employees
➜ Different categories of customers &
employees
➜ Make an inventory of the services
provide for customers, employees
➜ Survey each group
➜ Find out services provide for them
are meeting with the needs of each
group

7. 2. The firm’s business strategy
➜ Analyze the company for
particular time period - five
years business strategy
➜ Try to assess what are the
new services and capabilities
required to achieve company
goals

8. 3. The firm’s IT strategy,
infrastructure and cost
➜ Examine the information
technology plans - next five years
➜ Asses its alignment with company’s
business plan
➜ Determine total IT Infrastructure
cost
➜ Total Cost ownership analysis can
be performed

9. 4. Assessment of the firm’s
current Information
technology
➜ Check whether the firm is behind the
technology curve or at the bleeding
edge of IT
➜ Not advisable to spend resources on
advanced technologies that are still
experimental, expensive &
unreliable
➜ Spend on technologies which have
standards and IT vendors are
competing on cost, not design, and
where there are multiple suppliers

10. 5. Services of Competitor firms
➜ What technology services are offered
by the customers to their competitors
& employees
➜ Quantitative & qualitative methods
to compare them with your company
➜ If the service level is law - the
company is in a competitive
disadvantage
➜ Looks on the possible ways to
improve the service level

11. 6. Competitor firm IT
infrastructure investments
and returns on investments
➜ Gain a good idea of how much
you and your competitor firms
are spending on IT infrastructure
➜ What you are receiving in return
➜ How your competitive position
might be improved

12. Components of TCO
Hardware
acquisition
Software
acquisition
Training
Support
Space and
energy
Downtime
Infrastructure
Maintenance

13. Question 2
Discuss how you are going to
use this model to find out the
best option using a real life
example.

15. Question 3
Discuss how you would
approach this acquisition
process by using the above
model as your guide.

16. Five Major Steps in IS Acquisition

17. 1.Project identification, justification and
planning
➜ Should align the business process with the
company objectives
➜ Should consider the overall strategy
➜ Specific process may need to be prioritized
➜ Process should be carefully analyzed
➜ Investment

18. 2. IT architecture
➜ The purpose of the IT Architecture
➜ Identify what is compatible with the current
system

19. 2. IT architecture
➜ How well the new IS resources we plan to
implement could integrate with the current
business processes
➜ Whether they are comply with the rules and
policies.
➜ We have to consider about feasibility in
technical, operational, cultural, legal,
economical, etc

20. ➜ Build
➜ Buy
➜ Lease
Acquisition and Development.

21. Acquisition and Development.
➜ How does one know how to select the best
acquisition option???
➜ The advantages and disadvantages of each plan
➜ How well will the option fit with the organizations
business plan
➜ Organizations capabilities
➜ What impact will it have
➜ Cost/Benefit and risk analysis

22. Testing Installation and
Integration
➜ Testing
• Verify and validate acquired resources
➜ Installation & Integration
• Correctly introduced to the environment and
properly integrated with existing system
➜ Training
• The users need to be trained appropriately in
order to use the new acquisition effectively

23. Testing Installation and
Integration.
➜ Security
• Make sure appropriate controls are developed
and put in place
• Make sure proper recovery policies are in
place
• Make users aware of the controls and place
and how to adhere to them

24. Operations Maintenance and
Updating
➜ The phase in which the software is released to
operate in the production environment
➜ Change management
➜ The acquired resources need to be monitored,
sustained and supported as needed. (Benefit
realization)

25. Further
Discussion

26. Buy vs. Lease
Assume your company is planning on
implementing a new accounting
package. Discuss the buy and lease
options for the new system