INCLASS exam
ISDS 351 - Information Technology for Managers
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Information Technology for Managers IT Governance
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Objectives
What is IT governance and what are the key elements of an IT effective governance process?
How can an effective IT governance program improve the likelihood of organizational success?
Information Technology for Managers
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IT Governance
Guide to Microsoft Virtual PC 2005 and Virtual Server 2007
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Corporate Governance
Processes, customs, rules, procedures, policies, and traditions
Determine how to direct and control management activities
Key players
Board of directors, CEO, senior executives, and shareholders
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Issues Addressed by Corporate Governance
Preparing of the firm’s financial statements
Monitoring the choice of accounting principles and policies
Establishing internal controls
Hiring of external auditors
Nominating and selecting of people to the board of directors
Managing risk
Dividend policy
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IT Governance
Framework that ensures IT decisions are based on goals and objectives
Includes defining:
Decision-making process
Who makes the decisions
Who is held accountable for results
How the results of decisions are communicated, measured, and monitored
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Primary Goals of Effective IT Governance
Ensuring that an organization achieves good value from its investments in IT
Mitigating IT-related risks
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Figure 5.1 - Board of Directors and Various Subcommittees Involved in Governance
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Figure 5.2 - Two Primary Goals of IT Governance
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Ensuring that an Organization Benefits from IT Investments
Efficient governance is needed in the management of IT by business managers
Effective IT strategic planning process ensures close alignment between business and IT project goals and objectives
Involves applying good project management principles
Guide to Microsoft Virtual PC 2005 and Virtual Server 2007
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Mitigating IT-Related Risks
Requires use of good internal controls and management accountability
Sarbanes-Oxley Act
Holds senior management accountable for the integrity of organization’s financial data and internal controls
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Mitigating IT-Related Risks
Internal control
Fundamental concept involves separation of duties
Affected by improper conduct of senior managers and failure to hold the managers accountable
Offers reasonable assurance for:
Effectiveness and efficiency of operations
Reliability of financial reporting
Compliance with applicable laws and regulations
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Figure 5.3 - Key Activities Needed for Effective IT Governance
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Why Managers Must Understand IT Governance
Guide to Microsoft Virtual PC 2005 and Virtual Server 2007
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Importance of IT Governance for Managers
Universal goal for businesses
Leveraging IT to transform an enterprise and create value-added services, increased revenue, and decreased expenses
Effective IT governance:
Aligns and integrates the IT organization with the business
Reduces risks and costs
Helps the company gain a business advantage
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IT Governance Frameworks
Guide to Microsoft Virtual PC 2005 and Virtual Server 2007
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IT Infrastructure Library (ITIL)
Set of guidelines initially formulated by the UK government
Used to standardize, integrate, and manage IT service delivery
Provides a proven and practical framework to plan and deliver IT operational services
Organized around a five-phase service life cycle
Levels of training and certification
Foundation, practitioners, and managers
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Figure 5.4 - Five Phases of ITIL Process Life Cycle
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Source: Ingerstedt, Anders, “ITIL and LEAN in IT Service Management,” Alite International, October 24, 2014,
www.alite-international.com/blog/itil-and-lean-in-it-service-management.
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Control Objectives for Information and Related Technology (COBIT)
Set of guidelines
Goal
Aligning IT resources and processes with business objectives, quality standards, monetary controls, and security needs
Issued by the IT Governance Institute
www.isaca.org/COBIT/Pages/default.aspx
Provides guidance for 37 IT-related processes grouped into five major categories and two domains of governance and management
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Table 5.4 - Grouping of COBIT 5.0 Processes
ormation Technology for Managers
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Table 5.4 - Grouping of COBIT 5.0 Processes
ormation Technology for Managers
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Control Objectives for Information and Related Technology (COBIT)
Maturity level of management processes evaluated on a scale of 0 to 5
Used for each process to evaluate a number of items
Use the information to choose:
Which processes have priority for improvement
Which can be addressed later
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Using PDCA and an IT Governance Framework
Plan-Do-Check-Act (PDCA) model
Proven method
Applied to a specific targeted process
Each step in the model has specific objectives
Plan step
Do step
Check step
Act step
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Figure 5.5 - Process Improvement Using PDCA and COBIT or ITIL
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Business Continuity Planning
Guide to Microsoft Virtual PC 2005 and Virtual Server 2007
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Business Continuity Planning
Defines the people and procedures required to ensure timely and orderly resumption of an organization’s processes with minimal interruption
International Standards Organizational standard ISO 22301:2012
Specifies requirements to plan, establish, implement, operate, monitor, review, maintain, and continually improve a documented management system
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Business Continuity Planning
Due diligence: Effort made by an ordinarily prudent or reasonable party to avoid harm to another party
Failure to make the effort is considered negligence
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Disaster Recovery Plan
Component of the business continuity plan
Defines the process to recover business information system assets, in the event of a disaster
Focuses on technology recovery
Identifies the people or teams responsible for taking action in the event of a disaster
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Figure 5.6 - Process to Develop a Business Continuity Plan
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Process for Developing a Disaster Recovery Plan
Identify vital records and data
Determine where and how they are being stored and backed up
Assess the adequacy of the current data storage plan
Offsite backup recommended
Conduct a business impact analysis
Recovery time objective: Time within which a business function must be recovered
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Table 5.8 - Business Function Classification
ormation Technology for Managers
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Process for Developing a Disaster Recovery Plan
Define resources and actions required to recover
AAA priority business functions
Document all the resources needed to recover the business function within the recovery time objective
Identify the sequences of steps that must occur to recover from a disaster
Specific features to consider for inclusion in the recovery of a AAA priority business function
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Process for Developing a Disaster Recovery Plan
When all the preceding tasks have been completed for the AAA priority business functions:
Repeat the process for all the AA priority business functions, then for all A priority business functions
Disaster recovery as a service (DRaaS)
Replication and hosting of physical or virtual servers and necessary hardware and software
Hosted by a third-party service provider
Delivers IT services in the event of a disaster
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Process for Developing a Disaster Recovery Plan
Define emergency procedures
Involve establishing the steps to be taken during a disaster and immediately following the steps
Planning and practice:
Minimize loss of life and injuries
Reduce the impact on the business and its operations
Develop plans in conjunction with professional first responders
Computer, data, and equipment backup processes should be triggered automatically
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Process for Developing a Disaster Recovery Plan
Identify and train disaster recovery teams
Disaster recovery teams
Control group
Emergency response team
Business recovery team
Members should be selected based on:
Area of expertise, experience, and ability to function under extreme pressure
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Process for Developing a Disaster Recovery Plan
Train employees
Employees should be trained to recognize and respond to various types of disaster warnings
Identify floor wardens who are responsible for evacuating a given floor or work area
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Process for Developing a Disaster Recovery Plan
Practice and update the plan
Test disaster recovery plan to ensure that it is effective and that people can execute it
Employees are expected to exercise the plan and restore operations within the desired recovery time
Capture problems or issues not addressed by the plan and revise it to incorporate solutions
Plan must be continually updated to account for changes
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Summary
IT governance is a framework
Ensures information technology decisions are made, taking into consideration the goals and objectives of the business
IT governance is the responsibility of executive management
Five central themes of IT governance
Use frameworks as a basis to develop their own governance model
ITIL and COBIT are best known frameworks
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Summary
Business continuity plan, people, and procedures are required to ensure timely and orderly retrieval of data in case of a disaster
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