1. 1242.2219 Information System Economics IT PROJECT MANAGEMENT - revisited

2. 1242.2219 Information System Economics IT OPERATIONS MANAGEMENT

3. The IT Operations Management Goals  Effectiveness: To ensure smooth functioning of the application systems on which the organization depends.  Efficiency: To do so at reasonable cost

4. IT OPERATIONS MANAGEMENT Measures of Effectiveness Correlated With Efficiency  Functional quality of applications  Technical quality of applications  Application age  Portfolio coverage  Uptime vs. downtime

5. IT OPERATIONS MANAGEMENT Cost of Operations COST ELEMENTIT Budget Systems and programming – of which 70% maintenance and 30% new development 33% Department administration and training10% Operations57%

6. IT OPERATIONS MANAGEMENT Service Level Measures of Effectiveness  User satisfaction  Response time  Uptime vs. downtime  MTBF  Data accuracy  Data recency

7. Evaluation methods – Summary IT ACQUISITION Selection evaluation Performance Evaluation Projected Design Synthetic Programs, Benchmarks Simulation, Analytic Models Monitors Evaluation Techniques Purpose of evaluation primary use secondary use

8. The Concept of Balance Cost/Utilization - Interpretation processor printerprinter F =.42 B =.53 disk 2 disk 1 I/Os

9. The Concept of Balance A 0.4 B 0.6 C 0.5 D 0.4 E 0.7 F 0.4 G 0.6 H 0.5 Kiviat Charts – a poorly balanced system

10. IT OPERATIONS MANAGEMENT Contingency Planning for Disaster Recovery  Internal resources  Multiple data centers  Distributed processing  Backup communications  LAN server backup  External resources  Disaster recovery services  Redundant and remote data storage  Service bureaus

11. IT OPERATIONS MANAGEMENT Trends in Operations Management  Network Integration  Automatic operations  Automatic network management  Outsourcing  Internet applications  Response time  Security  Payment services  Logistic integration