1. 12.1 © 2003 by Prentice Hall 12 ISM 6021 MIS Implementing IS Chapter

2. 12.2 © 2003 by Prentice Hall Information systems plan What form of planning is correct for IS?What form of planning is correct for IS? Should ISP be formal or informal?Should ISP be formal or informal? How does environment affect the planning methodology for ISP?How does environment affect the planning methodology for ISP? Who should be involved in ISP?Who should be involved in ISP? SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Linking Information Systems to the Business Plan

3. 12.3 © 2003 by Prentice Hall Enterprise Analysis (Business Systems Planning) Analysis of organization-wide information requirementsAnalysis of organization-wide information requirements Identifies key entities and attributesIdentifies key entities and attributes SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Establishing Organizational Information Requirements

4. 12.4 © 2003 by Prentice Hall SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Process/Data Class Matrix Figure 12-1

5. 12.5 © 2003 by Prentice Hall Strategic Analysis or Critical Success Factors Small number of easily identifiable operational goalsSmall number of easily identifiable operational goals Shaped by industry, firm, manager, and broader environmentShaped by industry, firm, manager, and broader environment Used to determine information requirements of organizationUsed to determine information requirements of organization SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Establishing Organizational Information Requirements

6. 12.6 © 2003 by Prentice Hall SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Using CSFs to Develop Systems Figure 12-2

7. 12.7 © 2003 by Prentice Hall Automation : Speeding up performanceAutomation : Speeding up performance Rationalization of procedures: Streamlining of operating proceduresRationalization of procedures: Streamlining of operating procedures Business process reengineering: Radical design of business processesBusiness process reengineering: Radical design of business processes Paradigm shift: Radical reconceptualizationParadigm shift: Radical reconceptualization SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Systems Development and Organizational Change

8. 12.8 © 2003 by Prentice Hall SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Organizational Change Carries Risks and Rewards Figure 12-3

9. 12.9 © 2003 by Prentice Hall BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Redesigning Mortgage Processing in the United States Figure 12-4a

10. 12.10 © 2003 by Prentice Hall BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Redesigning Mortgage Processing in the United States Figure 12-4b

11. 12.11 © 2003 by Prentice Hall What steps should be taken in reengineering of business processes? develop broad strategic visiondevelop broad strategic vision measure performance of existing processes as baselinemeasure performance of existing processes as baseline IT should be allowed to influence process design from startIT should be allowed to influence process design from start IT infrastructure should be able to support business process changesIT infrastructure should be able to support business process changes BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Steps in Effective Reengineering

12. 12.12 © 2003 by Prentice Hall What are - 1.Systems development 2.Systems analysis OVERVIEW OF SYSTEMS DEVELOPMENT Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Overview

13. 12.13 © 2003 by Prentice Hall BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems The Systems Development Process Figure 12-5

14. 12.14 © 2003 by Prentice Hall Systems lifecycle Traditional methodology for developing information systemTraditional methodology for developing information system Partitions systems development process into formal stages that must be completed sequentiallyPartitions systems development process into formal stages that must be completed sequentially ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Traditional Systems Lifecycle

15. 12.15 © 2003 by Prentice Hall Prototyping Process of building experimental system quickly and inexpensively for demonstration and evaluationProcess of building experimental system quickly and inexpensively for demonstration and evaluationPrototype Preliminary working version of information system for demonstration and evaluationPreliminary working version of information system for demonstration and evaluation ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Prototyping

16. 12.16 © 2003 by Prentice Hall Application software packages Set of prewritten, precoded application software programs commercially available for sale or leaseSet of prewritten, precoded application software programs commercially available for sale or leaseCustomization Modification of software package to meet organization’s unique requirements without destroying the software’s integrityModification of software package to meet organization’s unique requirements without destroying the software’s integrity ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Application Software Packages

17. 12.17 © 2003 by Prentice Hall ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems The Effects of Customizing a Software Package on Total Implementation Costs Figure 12-8

18. 12.18 © 2003 by Prentice Hall Request for Proposal (RFP) Detailed list of questions submitted to vendors of software or other servicesDetailed list of questions submitted to vendors of software or other services Determines how well vendor’s product can meet organization’s specific requirementsDetermines how well vendor’s product can meet organization’s specific requirements ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Application Software Packages

19. 12.19 © 2003 by Prentice Hall What is End-User Development? Development of information systems by end users with little or no formal assistance from technical specialistsDevelopment of information systems by end users with little or no formal assistance from technical specialists Allows users to specify their own business needsAllows users to specify their own business needs ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems End-User Development

20. 12.20 © 2003 by Prentice Hall ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems End-User Versus System Lifecycle Development Figure 12-9

21. 12.21 © 2003 by Prentice Hall What is Outsourcing? Under what conditions should IT be outsourced? What are advantages and limitations of outsourcing? ALTERNATIVE SYSTEM-BUILDING APPROACHES Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Outsourcing

22. 12.22 © 2003 by Prentice Hall What is Object-Oriented Development? What are the advantages / disadvantages of OOD and OOP? Approach for software developmentApproach for software development De-emphasizes proceduresDe-emphasizes procedures Shifts focus from modeling business processes and data to combining data and procedures to create objectsShifts focus from modeling business processes and data to combining data and procedures to create objects APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Object-Oriented Software Development

23. 12.23 © 2003 by Prentice Hall What is RAD? What are some approaches to RAD? Process for developing systems in short time periodProcess for developing systems in short time period Uses prototyping, fourth-generation tools, and close teamworkUses prototyping, fourth-generation tools, and close teamwork APPLICATION DEVELOPMENT FOR THE DIGITAL FIRM Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Rapid Application Development (RAD)

24. 12.24 © 2003 by Prentice Hall 13 Measuring the Value of Systems Chapter

25. 12.25 © 2003 by Prentice Hall Measuring Systems What factors must be considered when measuring the value of systems? What methods are available for capital budgeting and investment analysis?

26. 12.26 © 2003 by Prentice Hall The Payback Method Measure of time required to pay back the initial investment on a projectMeasure of time required to pay back the initial investment on a project Accounting Rate of Return on Investment (ROI) Approximates the accounting income earned by the investmentApproximates the accounting income earned by the investment UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Case Example: Primrose, Mendelson, and Hansen

27. 12.27 © 2003 by Prentice Hall Present value Value of a payment or stream of payments to be received in dollarsValue of a payment or stream of payments to be received in dollars Net present value Amount of money an investment is worthAmount of money an investment is worth UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Case Example: Primrose, Mendelson, and Hansen

28. 12.28 © 2003 by Prentice Hall Cost-benefit ratio Calculates returns from capital expenditureCalculates returns from capital expenditure Profitability index Compares profitability of alternative investments by dividing the present value of total cash inflow by initial costCompares profitability of alternative investments by dividing the present value of total cash inflow by initial cost UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Case Example: Primrose, Mendelson, and Hansen

29. 12.29 © 2003 by Prentice Hall Internal Rate of Return (IRR) Rate of return or profit an investment is expected to earnRate of return or profit an investment is expected to earn Results of the Capital Budgeting Analysis Cash flow positive over the time period and returns more benefits than it costsCash flow positive over the time period and returns more benefits than it costs UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Case Example: Primrose, Mendelson, and Hansen

30. 12.30 © 2003 by Prentice Hall Portfolio Analysis Analysis of portfolio of potential applications within a firmAnalysis of portfolio of potential applications within a firm Determines risks and benefitsDetermines risks and benefits Selects among alternatives for information systemsSelects among alternatives for information systems UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Strategic Considerations

31. 12.31 © 2003 by Prentice Hall Scoring Models Method for deciding among alternative systems based on a system of ratingsMethod for deciding among alternative systems based on a system of ratings Real Options Pricing Models Models for evaluating information technology investments with uncertain returnsModels for evaluating information technology investments with uncertain returns UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Strategic Considerations

32. 12.32 © 2003 by Prentice Hall UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change A System Portfolio Figure 13-3

33. 12.33 © 2003 by Prentice Hall Knowledge Value–Added Approach Focuses on knowledge input into a business processFocuses on knowledge input into a business process Determines costs and benefits of changes in business processes from new information systemsDetermines costs and benefits of changes in business processes from new information systems UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Strategic Considerations

34. 12.34 © 2003 by Prentice Hall Productivity Measure of firm’s efficiency in converting inputs to outputsMeasure of firm’s efficiency in converting inputs to outputs Information Technology Reduces costReduces cost Increases quality of products and servicesIncreases quality of products and services UNDERSTANDING THE BUSINESS VALUE OF INFORMATION SYSTEMS Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Information Technology Investments and Productivity

35. 12.35 © 2003 by Prentice Hall System failure Information system does not perform as expected, is not operational at a specified timeInformation system does not perform as expected, is not operational at a specified time Poor design, inaccurate data, excessive expenditure, breakdown in operationsPoor design, inaccurate data, excessive expenditure, breakdown in operations IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Information System Problem Areas

36. 12.36 © 2003 by Prentice Hall What are the causes of IS project failures? What steps can management take to insure success of IS projects? IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Causes of Implementation Success and Failure

37. 12.37 © 2003 by Prentice Hall IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Factors in Information System Success or Failure Figure 13-5

38. 12.38 © 2003 by Prentice Hall Project size: Larger project has greater riskProject size: Larger project has greater risk Project structure: Clear and straightforward requirements help define outputs and processesProject structure: Clear and straightforward requirements help define outputs and processes Experience with technology: Project risk rises if project team and information system staff lack required technical expertiseExperience with technology: Project risk rises if project team and information system staff lack required technical expertise IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Level of Complexity and Risk

39. 12.39 © 2003 by Prentice Hall IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Consequences of Poor Project Management Figure 13-6

40. 12.40 © 2003 by Prentice Hall System Challenges of Mergers and Acquisitions Integrating systemsIntegrating systems Organizational characteristicsOrganizational characteristics Information technology infrastructuresInformation technology infrastructures IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Change Management Challenges for Enterprise Applications, Business Process Reengineering (BPR), and Mergers and Acquisitions

41. 12.41 © 2003 by Prentice Hall How are global IS problems different? Identify some global problems impacting the use of IS. Transborder data flow: Movement of information across international boundaries in any formTransborder data flow: Movement of information across international boundaries in any form Technology Hurdles: Lack of standards and connectivity in hardware, software, and telecommunicationsTechnology Hurdles: Lack of standards and connectivity in hardware, software, and telecommunications IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change The Challenge of Implementing Global Systems

42. 12.42 © 2003 by Prentice Hall Local User Resistance to Global Systems: Difficult to convince local managers to change their business processesLocal User Resistance to Global Systems: Difficult to convince local managers to change their business processes IMPORTANCE OF CHANGE MANAGEMENT IN INFORMATION SYSTEM SUCCESS AND FAILURE Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change The Challenge of Implementing Global Systems

43. 12.43 © 2003 by Prentice Hall Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Formal planning and control tools help to manage information systems projects successfully Figure 13-7 MANAGING IMPLEMENTATION

44. 12.44 © 2003 by Prentice Hall Creating a Global Technology Infrastructure Build international private networkBuild international private network Rely on value added network serviceRely on value added network service Use Internet technologyUse Internet technology Build global intranetsBuild global intranets Use Virtual Private NetworksUse Virtual Private Networks Essentials of Management Information Systems Chapter 13 Understanding the Business Value of Systems and Managing Change Managing Global Implementations MANAGING IMPLEMENTATION

45. 12.45 © 2003 by Prentice Hall 14 IS Security & Control Chapter

46. 12.46 © 2003 by Prentice Hall Why are information systems so vulnerable to destruction, error, abuse, and system quality problems?Why are information systems so vulnerable to destruction, error, abuse, and system quality problems? What types of controls are available for information systems?What types of controls are available for information systems? What special measures must be taken to ensure the reliability, availability and security of electronic commerce and digital business processes?What special measures must be taken to ensure the reliability, availability and security of electronic commerce and digital business processes? Essentials of Management Information Systems Chapter 14 Information Systems Security and Control

47. 12.47 © 2003 by Prentice Hall Advances in telecommunications and computer softwareAdvances in telecommunications and computer software Unauthorized access, abuse, or fraudUnauthorized access, abuse, or fraud HackersHackers Denial of service attackDenial of service attack Computer virusComputer virus SYSTEM VULNERABILITY AND ABUSE Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Why Systems are Vulnerable

48. 12.48 © 2003 by Prentice Hall SYSTEM VULNERABILITY AND ABUSE Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Telecommunication Network Vulnerabilities Figure 14-1

49. 12.49 © 2003 by Prentice Hall Disaster Destroys computer hardware, programs, data files, and other equipmentDestroys computer hardware, programs, data files, and other equipmentSecurity Prevents unauthorized access, alteration, theft, or physical damagePrevents unauthorized access, alteration, theft, or physical damage SYSTEM VULNERABILITY AND ABUSE Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Concerns for System Builders and Users

50. 12.50 © 2003 by Prentice Hall Bugs Program code defects or errorsProgram code defects or errors Maintenance Nightmare Maintenance costs high due to organizational change, software complexity, and faulty system analysis and designMaintenance costs high due to organizational change, software complexity, and faulty system analysis and design SYSTEM VULNERABILITY AND ABUSE Essentials of Management Information Systems Chapter 14 Information Systems Security and Control System Quality Problems: Software and Data

51. 12.51 © 2003 by Prentice Hall SYSTEM VULNERABILITY AND ABUSE Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Points in the Processing Cycle where Errors can Occur Figure 14-2

52. 12.52 © 2003 by Prentice Hall Data Quality Problems Caused due to errors during data input or faulty information system and database designCaused due to errors during data input or faulty information system and database design SYSTEM VULNERABILITY AND ABUSE Essentials of Management Information Systems Chapter 14 Information Systems Security and Control System Quality Problems: Software and Data

53. 12.53 © 2003 by Prentice Hall SYSTEM VULNERABILITY AND ABUSE Essentials of Management Information Systems Chapter 14 Information Systems Security and Control The Cost of Errors over the Systems Development Cycle Figure 14-3

54. 12.54 © 2003 by Prentice Hall Controls Methods, policies, and proceduresMethods, policies, and procedures Ensures protection of organization’s assetsEnsures protection of organization’s assets Ensures accuracy and reliability of records, and operational adherence to management standardsEnsures accuracy and reliability of records, and operational adherence to management standards CREATING A CONTROL ENVIRONMENT Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Overview

55. 12.55 © 2003 by Prentice Hall On-line transaction processing: Transactions entered online are immediately processed by computerOn-line transaction processing: Transactions entered online are immediately processed by computer Fault-tolerant computer systems: Contain extra hardware, software, and power supply componentsFault-tolerant computer systems: Contain extra hardware, software, and power supply components CREATING A CONTROL ENVIRONMENT Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Protecting the Digital Firm

56. 12.56 © 2003 by Prentice Hall High-availability computing: Tools and technologies enabling system to recover from a crashHigh-availability computing: Tools and technologies enabling system to recover from a crash Disaster recovery plan: Runs business in event of computer outageDisaster recovery plan: Runs business in event of computer outage Load balancing: Distributes large number of requests for access among multiple serversLoad balancing: Distributes large number of requests for access among multiple servers CREATING A CONTROL ENVIRONMENT Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Protecting the Digital Firm

57. 12.57 © 2003 by Prentice Hall Mirroring: Duplicating all processes and transactions of server on backup server to prevent any interruptionMirroring: Duplicating all processes and transactions of server on backup server to prevent any interruption Clustering: Linking two computers together so that a second computer can act as a backup to the primary computer or speed up processingClustering: Linking two computers together so that a second computer can act as a backup to the primary computer or speed up processing CREATING A CONTROL ENVIRONMENT Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Protecting the Digital Firm

58. 12.58 © 2003 by Prentice Hall Firewalls Prevent unauthorized users from accessing private networksPrevent unauthorized users from accessing private networks Two types: proxies and stateful inspectionTwo types: proxies and stateful inspection Intrusion Detection System Monitors vulnerable points in network to detect and deter unauthorized intrudersMonitors vulnerable points in network to detect and deter unauthorized intruders CREATING A CONTROL ENVIRONMENT Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Internet Security Challenges

59. 12.59 © 2003 by Prentice Hall Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Figure 14-5 CREATING A CONTROL ENVIRONMENT Internet Security Challenges

60. 12.60 © 2003 by Prentice Hall Encryption: Coding and scrambling of messages to prevent their access without authorizationEncryption: Coding and scrambling of messages to prevent their access without authorization Authentication: Ability of each party in a transaction to ascertain identity of other partyAuthentication: Ability of each party in a transaction to ascertain identity of other party Message integrity: Ability to ascertain that transmitted message has not been copied or alteredMessage integrity: Ability to ascertain that transmitted message has not been copied or altered CREATING A CONTROL ENVIRONMENT Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Security and Electronic Commerce

61. 12.61 © 2003 by Prentice Hall Digital signature: Digital code attached to electronically transmitted message to uniquely identify contents and senderDigital signature: Digital code attached to electronically transmitted message to uniquely identify contents and sender Digital certificate: Attachment to electronic message to verify the sender and to provide receiver with means to encode replyDigital certificate: Attachment to electronic message to verify the sender and to provide receiver with means to encode reply CREATING A CONTROL ENVIRONMENT Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Security and Electronic Commerce

62. 12.62 © 2003 by Prentice Hall Secure Electronic Transaction (SET): Standard for securing credit card transactions over Internet and other networksSecure Electronic Transaction (SET): Standard for securing credit card transactions over Internet and other networks CREATING A CONTROL ENVIRONMENT Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Security and Electronic Commerce

63. 12.63 © 2003 by Prentice Hall Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Public Key Encryption CREATING A CONTROL ENVIRONMENT Figure 14-6

64. 12.64 © 2003 by Prentice Hall Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Digital Certificates CREATING A CONTROL ENVIRONMENT Figure 14-7

65. 12.65 © 2003 by Prentice Hall Criteria for determining control structure Importance of dataImportance of data Efficiency, complexity, and expense of each control techniqueEfficiency, complexity, and expense of each control technique Level of risk if a specific activity or process is not properly controlledLevel of risk if a specific activity or process is not properly controlled CREATING A CONTROL ENVIRONMENT Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Developing a Control Structure: Costs and Benefits

66. 12.66 © 2003 by Prentice Hall MIS audit Identifies all controls that govern individual information systems and assesses their effectivenessIdentifies all controls that govern individual information systems and assesses their effectiveness CREATING A CONTROL ENVIRONMENT Essentials of Management Information Systems Chapter 14 Information Systems Security and Control The Role of Auditing in the Control Process

67. 12.67 © 2003 by Prentice Hall ENSURING SYSTEM QUALITY Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Sample Auditor’s List of Control Weaknesses Figure 14-8

68. 12.68 © 2003 by Prentice Hall ENSURING SYSTEM QUALITY Essentials of Management Information Systems Chapter 14 Information Systems Security and Control System Flow-Chart for a Payroll System Figure 14-12

69. 12.69 © 2003 by Prentice Hall Walkthrough: Review of specification or design document by small group of peopleWalkthrough: Review of specification or design document by small group of people Debugging: Process of discovering and eliminating errors and defects in program codeDebugging: Process of discovering and eliminating errors and defects in program code Local, System, and Acceptance TestingLocal, System, and Acceptance Testing ENSURING SYSTEM QUALITY Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Testing

70. 12.70 © 2003 by Prentice Hall Data quality audit Survey and/or sample of filesSurvey and/or sample of files Determines accuracy and completeness of dataDetermines accuracy and completeness of data Data cleansing Correcting errors and inconsistencies in data to increase accuracyCorrecting errors and inconsistencies in data to increase accuracy ENSURING SYSTEM QUALITY Essentials of Management Information Systems Chapter 14 Information Systems Security and Control Data Quality Audit and Data Cleansing

71. 12.71 © 2003 by Prentice Hall What are the organizational challenges to IT-enabled change?

72. 12.72 © 2003 by Prentice Hall What are the major barriers to B2B? What are the major barriers to B2C? Will e-commerce continue to grow? What areas will benefit?

73. 12.73 © 2003 by Prentice Hall 14 End Chapters 12-14 Is it ten o’clock yet? Chapter