omis 6402 - 1. Just creating a good system isnt enough to...

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1. Just creating a “good” system isn’t enough to ensure that an organization will get value from an IT project. What barriers exists and how can they be overcome? 2. What benefit(s) does an organization gain from separating the funding “buckets” for different types of IT projects? What is a balanced scorecard and how is it used in the management of the IT function? A balanced scorecard uses not only financial data but also customer, learning, and business process measures to see how a company is doing. Certainly, the balanced scorecard includes financial data such as operating income, capital, etc. The customer point of view is measured by such metrics as customer satisfaction, return customers, etc. The business process is measured by things such as procurement, production, etc. Of course, part of the strategy is also learning measured by how long employees stay at an organization, satisfaction, etc. When IT uses balanced scorecards, the customer is essentially the internal employee within the organization. The balanced scorecard helps IT promote projects that will hopefully give value to an organization while recognizing strategies that do not. What has caused the poor reputation (perception) of the IT function? The biggest issues that resulted in IT having a poor reputation includes their deficiency in fully understanding the business process they are working on before tackling it, not communicating effectively, and promising what they can’t deliver. Many times, IT professions are new to an organization and may not fully understand what the organization does and the strategies behind the technology needed. Although taking the role of enabler may seem like a good idea, they may not fully understand what needs to be done in the actual system as compared to the day-to-day functions. Certainly, part of the blame may be cast on operational managers who do not fully define business needs and requirements or have completely unrealistic expectations of what IT should create. IT is also one of the most diverse departments which results in many IT professionals not speaking English as their first language. This results in communication problems with either party not being able to understand the other. IT professionals also have the reputation of thinking they are smarter than everyone else which doesn’t help others when trying to gauge a full explanation on what they want. Finally, IT may promise the world or promise something impossible only to get a manager’s hopes up before breaking the bad news that whatever they wanted is completely impossible. What impact has Sarbanes-Oxley (SOX) had on the IT function? One of the biggest impacts SOX had on organizations is that in 2002, the Act Made anyone who modifies, demolishes or alters documents accountable with possibly legal consequences. In IT, many times it was assumed that if nothing went wrong that controls were in place working. IT functions to not only provide sustainability to support obedience to the SOX Act but also maintain their
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This note was uploaded on 01/25/2011 for the course OMIS 640 taught by Professor Russo during the Summer '10 term at Northern Illinois University.

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omis 6402 - 1. Just creating a good system isnt enough to...

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