This document outlines chapter 3 on the management of IT. It discusses IT knowledge and management processes, asset management, software change control, problem management, IT security, and accounting software. Key points include the roles of IT in enabling business processes and establishing competitive advantages through technology, different approaches to IT performance management, and the importance of security controls, vulnerability management, and incident management in securing IT systems. The chapter also examines selecting accounting software based on required features.

1. Chapter 3
Management of IT
IT KNOWLEDGE
CA Professional Stage - Knowledge Level, ICAB
Teacher: Mohammad Abdul Matin

2. Chapter Outline
 Describe Policies and Management Processes
 Efficient Running of IT Systems
 What is an Asset? Describe IT Asset Management.
 What is a Software? How to Control Software Changes
 Management of IT Problems
 Information Technology Management
 IT Performance Management
 What is Informn. Security? Management of IT Security
 Accounting Software

3. IT and IT Managers’ Role
 Managing the accessibility, storage, analysis and
protection of Information using different technologies.
 Enabling business processes with the use of
technologies.
 Establish competitive advantage(s) for the Business
through use of Information processing technologies.

4. Roles of IT Function
Strategies and
Competitive Edges
Business Decision
Making
Business Processes
and Operations
Strategic Partner
Enabler
Support Function

5. Information Technology Architecture
Technology
Platform
Data
Resources
IT
Organization
Application
Portfolio

6. IT Performance Management
Budgetary of Financial Performances
• Historical Approach
– based on past IT costs
– do not take market condition, business strategy and other
important factors into account
• Top Down Approach
– set by the Management
– IT goals consistent with business goals
• Benchmarking Approach
– Bases on industry best practices
– Follows Technology trends

7. IT Performance Management
 Linked to Corporate Strategy
Corp. Vision & Strategy
IT Strategy
IT Aims
Key Performance
Indicators (KPIs)
Long term Company Goals and
Strategy to Achieve them
Developed to support Corporate
Strategy
IT Strategy detailed to specific IT
goals
Action oriented measurable
performance targets

8. IT Performance Management
 Consistent Framework
– Common denominators
– Can differ in functional targets based on entirely different
business nature
 Top Down Approach
– CIO / IT Management develops strategy
– Cascaded down to the Business Units
 Bottom Up Approach
– Integrated from the Balance Score Card and Business Goals
 Instrument Related Approach
– Balance Scorecard and other IT-PM solution driven

9. Information Security
 Security Objectives
– Confidentiality
– Integrity
– Availability
 Sensitive Information
– Strategic Plans
– Business Operation Information
– Financial Information

10. Types of Security Control
Physical Security Controls
Lock | Access Control | Fire Protection
Logical Security Controls
Authentication | Anti Virus | Encryption
Environmental Controls
Security Policy | SOP | License | AMC | Warranty
Information System Operating Controls
Performance | Completion | Accuracy | Backup & Restore

11. Management of IT Security
•Weaknesses in IT Assets (software) that can allow
damage
Vulnerability
Management
Threat Management • Virus, spamming, intrusions, etc.
• Logical security control through passwords, security
groups Trust Management
• Unification of user identity across systems,
enhance effective access/security management Identity Management
• Security logs, audit trails, monitoring against
standards
Control, Audit &
Monitoring
• Systematic reporting, prioritizing, resolving and
analyzing issues and their root causes Incident Management

12. Accounting System
 Core Modules:
– Cash Book
– General Ledger (GL)
– Sales Order & Billing
– Accounts Receivables (AR)
– Purchase Order & Purchasing
– Accounts Payables (AP)
– Stock / Inventory
– Fixed Asset (FA)

13. Accounting System
 Non Core Modules:
– Debt Control (typically part of AR)
– Electronic Payment Processing
– Expenses Management & Budgeting
– Inquiries (queries based on different custom conditions)
– Payroll
– Reports and MIS
– Timesheet
– Purchase Requisition
– Automatic Bank Reconciliation

14. Selecting Accounting Software
Feature Checklist
 Ability to drill down to transaction
 Import or export data with external sources
 Can generate custom reports
 Can post batch transactions
 Strong security
 Technical support available
 Historical data with comparability
 Cost center, profit center accounting
 Ability to integrate with external applications

15. Exam Questions
 Which criterion should be followed in purchasing an
Accounting Software?

16. SlideShare Link
Slides are uploaded at:
http://www.slideshare.net/mamatin

17. Thank You