7-27 Security Guide: One -Stop Shopping Copyright © 2017 Pearson Education, Inc. • IS design involves constant trade -offs – Risk of loss is higher, security can be focused – Inter -enterprise system can connect competitors with different incentives and agendas – How secure is the cloud vendor ? – Bitcoin  Centrally located, accessible from anywhere, very large sum of    electronic money 7-28 Active  Review Copyright © 2017 Pearson Education, Inc. Q1: How do information systems vary by scope? Q2: How do enterprise systems solve the problems of departmental silos? Q3: How Do CRM, ERP, and EAI support enterprise systems? Q4: How do inter -enterprise is solve the problems of enterprise silos?  How d oes the knowledge in this chapter help you? 7-29 Case Study 7: A Tale of Two Inter -organizational IS Copyright © 2017 Pearson Education, Inc. • Access CT – Enrolled 208,301 – Model of success for state -run exchanges • Cover Oregon – Spent $250 million, clearly inoperable –  Exchange’s board of directors decided to stop development and utilize the federal exchange 7-30 Healthcare Exchange Inter -organizational IS Copyright © 2017 Pearson Education, Inc. 7-31 Access CT Copyright © 2017 Pearson Education, Inc. • Exchange went live only 12 months • Counihan more than 30 years of experience working in insurance industry, key player in development of Massachusetts healthcare system • Hired senior staff with deep experience in insurance 7-32 Access CT (cont'd) Copyright © 2017 Pearson Education, Inc. • Wadleigh director of application development for CIGNA , a health services organization • Primary assignment -- hire and manage outside contractor to develop exchange website and supporting backend code, and manage implementation of exchange information system • Created project plan • Began search for contractor to develop the site 7-33 Cover Oregon Copyright © 2017 Pearson Education, Inc. • Did not hire a supervising contractor for project , instead took active role in    software’s development • Agency suffered high employee turnover, and difficulty hiring and keeping qualified personnel 7-34 Cover Oregon (cont'd) Copyright © 2017 Pearson Education, Inc. • Hired software development company to create major software components – Two of three finalists dropped out, leaving Oracle Corp. a sole source vendor – Oracle negotiated time and materials contracts – When problems developed, Oracle was paid tens of millions of additional money for change orders 7-35 Cover Oregon (cont'd) Copyright © 2017 Pearson Education, Inc. • Hired quality assurance contractor, Maximus Corp., to investigate project • Maximus reported significant problems involving divided control, lack of clear requirements , inappro.

1. 7-27
Security
Guide: One
-Stop
Shopping
Copyright © 2017 Pearson Education, Inc.
• IS
design involves constant
trade
-offs
– Risk of loss is
higher, security can be focused
– Inter
-enterprise
system can connect competitors with
different incentives and
agendas
– How secure is the cloud vendor

2. ?
– Bitcoin
Centrally located, accessible from anywhere,
very
large
sum
of electronic money
7-28
Active Review
Copyright © 2017 Pearson Education, Inc.
Q1: How do information systems vary by scope?
Q2: How do enterprise systems solve the problems of
departmental silos?
Q3:
How Do
CRM, ERP,

3. and
EAI
support enterprise
systems?
Q4: How do inter
-enterprise is solve the problems of enterprise
silos?
How d
oes the knowledge in this chapter help you?
7-29
Case Study 7: A Tale of Two Inter
-organizational IS
Copyright © 2017 Pearson Education, Inc.
• Access CT
– Enrolled 208,301
– Model of success for state
-run exchanges

4. • Cover Oregon
– Spent $250 million, clearly inoperable
– Exchange’s board of directors decided to stop development
and utilize the federal exchange
7-30
Healthcare Exchange Inter
-organizational
IS
Copyright © 2017 Pearson Education, Inc.
7-31
Access CT
Copyright © 2017 Pearson Education, Inc.
• Exchange went live
only
12
months
• Counihan more than

5. 30 years of experience working in
insurance industry, key
player in
development of
Massachusetts
healthcare
system
• Hired senior
staff with deep experience in
insurance
7-32
Access
CT (cont'd)
Copyright © 2017 Pearson Education, Inc.
• Wadleigh
director of application development
for CIGNA

6. , a
health services
organization
• Primary
assignment
-- hire
and manage outside contractor to
develop
exchange
website and supporting
backend code, and
manage
implementation of
exchange information system
• Created project plan
• Began search
for
contractor

7. to develop the
site
7-33
Cover
Oregon
Copyright © 2017 Pearson Education, Inc.
• Did
not hire a
supervising contractor
for
project
, instead took
active
role
in software’s
development
• Agency
suffered high employee

8. turnover, and
difficulty
hiring
and
keeping qualified
personnel
7-34
Cover
Oregon (cont'd)
Copyright © 2017 Pearson Education, Inc.
• Hired
software development company to create
major
software
components
– Two of three finalists
dropped out, leaving Oracle Corp.

9. a sole
source vendor
– Oracle negotiated
time
and materials contracts
– When
problems developed,
Oracle was
paid tens of millions of
additional money for change orders
7-35
Cover
Oregon (cont'd)
Copyright © 2017 Pearson Education, Inc.
• Hired quality assurance
contractor, Maximus
Corp.,
to

10. investigate
project
• Maximus
reported
significant problems
involving divided control, lack
of clear requirements
, inappropriate
contracting methodology, lack of
project planning
, and
lack of progress
• Unclear who got Maximus reports or what was done with
them
• Head
of OHA project threatened to withhold Maximus’
payment
•

11. End result: Exchange development failed