1. Chapter 8 Managing Operations

2. Key Points in Chapter 8 Outsourcing IS Functions Outsourcing IS Functions Security in the Internet Age Security in the Internet Age Disaster Recovery Disaster Recovery

3. What are Operations? Operations vary for every company Operations vary for every company Hardware, communications lines and equipment, software, data center personnel, disaster recovery, etc. Hardware, communications lines and equipment, software, data center personnel, disaster recovery, etc. The Operations management perspective The Operations management perspective Moving from an inward to an outward approach Moving from an inward to an outward approach

4. Outsourcing IS Functions Focus and Value driven Focus and Value driven Expansion of Outsourcing Expansion of Outsourcing IT Outsourcing IT Outsourcing Transitional Outsourcing Transitional Outsourcing Best-of-Breed Outsourcing Best-of-Breed Outsourcing Shared Services Shared Services Business Process Outsourcing Business Process Outsourcing E-Business Outsourcing E-Business Outsourcing Application Service Providers (ASPs) Application Service Providers (ASPs)

5. Outsourcing IS Functions Cont… Managing Outsourcing Managing Outsourcing Organizational Structure Organizational Structure Joint committees should be utilized with an executive representing each party Joint committees should be utilized with an executive representing each party Governance Governance Service Level Agreements (SLAs) should be established Service Level Agreements (SLAs) should be established Day-to-Day Working Day-to-Day Working Manage expectations Manage expectations Communicate frequently Communicate frequently

6. Security in the Internet Age Threats Threats Most security breaches occur on the inside and through viruses Most security breaches occur on the inside and through viruses Mobile computing increases threat Mobile computing increases threat Security’s Five Pillars Security’s Five Pillars Authentication – verifying authenticity of users Authentication – verifying authenticity of users Identification – identifying users to grant them access Identification – identifying users to grant them access Privacy – protecting info from being seen Privacy – protecting info from being seen Integrity – keeping info in original form Integrity – keeping info in original form Nonrepudiation – preventing parties from denying Nonrepudiation – preventing parties from denying

7. Security in the Internet Age Cont… Countermeasures Countermeasures Firewalls Firewalls Hardware or software that controls access between networks Hardware or software that controls access between networks Public Key Encryption Public Key Encryption Uses two keys and requires significant administration - Uses two keys and requires significant administration - Virtual Privacy Networks Virtual Privacy Networks Private line that uses “tunneling” technology and constant encryption Private line that uses “tunneling” technology and constant encryption

8. Disaster Recovery for Distributed Systems Internal Resources Internal Resources Multiple Data Centers Multiple Data Centers Distributed Processing Distributed Processing Backup Telecom Facilities Backup Telecom Facilities LANs LANs External Resources Integrated Disaster Recovery Services Specialized Disaster Recovery Services Online and Offline Data Storage

9. What’s New? Y2K changed company mindset from “survival mode” to “planning mode” Y2K changed company mindset from “survival mode” to “planning mode” Third party data centers are becoming more popular Third party data centers are becoming more popular Companies that keep data centers in-house still outsource e-business operations Companies that keep data centers in-house still outsource e-business operations Simplification achieved through application centralization Simplification achieved through application centralization

10. CLJ How to Plan for the Inevitable by Sarah D. Scalet http://www.cio.com/archive/031502/plan.html How to Plan for the Inevitable by Sarah D. Scalet http://www.cio.com/archive/031502/plan.html Fleet Credit Card Example Fleet Credit Card Example Incident Response Planning Incident Response Planning “…knowing how to respond to a security incident— be it a computer worm, mistake, hacker or the mere suspicion of a problem—can save a company time, money and even its reputation.” Best measures are preventative Best measures are preventative Pull together an incident response team Pull together an incident response team

11. CTQs In regard to security threats, insider abuse and unauthorized access rank second and third highest in percentage of misuse. What can companies do to prevent this from occurring ? How might this affect employees who have never thought of doing such things? In regard to security threats, insider abuse and unauthorized access rank second and third highest in percentage of misuse. What can companies do to prevent this from occurring ? How might this affect employees who have never thought of doing such things? What can be learned about disaster recovery from the September 11 th incident? What precautions would you take for your company? What can be learned about disaster recovery from the September 11 th incident? What precautions would you take for your company?

12. The End