1. Dinesh Mirchandani University of Missouri – St. Louis
Information Technology: Strategic Decision Making For Managers Henry C. Lucas Jr. John Wiley & Sons, Inc
Dinesh Mirchandani
University of Missouri – St. Louis
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3. Management Control of Information Technology
Chapter 11
Management Control of Information Technology
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Control Systems
The components of control systems are
Standards for performance
Sensory determination of actual conditions
Comparison of standard with actual conditions
Compensatory action if the deviation is too great
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6. Control in the Organization
Controls can be created through
Structure of the organization
Decentralized or centralized
Rewards
Management committee
Budget
Direct supervision
Procedures
Routine audits help establish control
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Failure of Control
Control breakdown
Worldcom
Qwest
Global Crossing
Reward systems for senior managers may have caused these control failures
Stock options
IS can strengthen routine control systems though they can tend to be complex
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9. Control of Systems Development
It is difficult to predict development time and development cost for new systems
Package implementation can reduce this uncertainty
Projects slip for a number of reasons
Lack of user input
Too few resource
Too few individuals working on the project
Lack of top management support
Poor project management
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Control of Operations
The Foreign Corrupt Practices Act requires publicly held companies to devise and maintain a system of internal accounting controls pertaining to the
Execution of transactions
Recording of transactions
Records of assets
Managerial sign-off on financial statements (Sarbanes-Oxley Act)
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11. Vulnerability of Systems to Transaction Processing Errors
Errors and intrusion of the operating system for clients and servers
Application programs errors
Database security
Network operating system reliability and security
Adequate control of manual procedures
Organizational control
Network connectivity
Misuse by external users
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13. Control and Electronic Commerce
Security of transmitted credit card information
Encryption of data
Secure electronic transmission
Secure payment schemes
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Security
Firewalls
Corporate firewalls
Host based firewalls
Monitoring programs
Virus checking
Monitoring firms
Can examine connectivity logs to determine hostile threats to the organization
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15. Auditing Information Systems
Auditors examine
Databases
Transactions
Processing logic
Controls of critical information systems
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Management Issues
Backup
Security
Budget
Project management
Data control
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Summary
Management control of IT deals with planning organizing and monitoring information processing
Management issues for controlling IT include backup, security, keeping within the budget, and project management
Managers need to be concerned about malicious programs that can damage computers, networks and the organization
Copyright 2004 John Wiley & Sons, Inc.