Managing Information Systems In The Digital Firm

CSIT-217
Module-V
 Challenges of IT Security
Unused, inactive, and/or unidentified devices open penetration points for security attacks.

Third-party software, open source inventory, and unsecured assets outside the data center introduce new
risk.
Regulatory standards continue to evolve, often with poorly defined processes that IT security teams must
manually address.
Failure to meet compliance standards puts IT and the business at risk for time-consuming audits and
expensive fines.
Business expectations continue to skyrocket, from the C-suite to individual users.

Information remains stuck in silos, so security and operations teams rely on outdated processes.

Outdated processes translate to poor service quality, unnecessary business downtime, and an environment
that can’t scale with today’s multi-cloud reality.
Why Security Management?

Technical solutions are available – but NOT always correctly

adopted
Observations: Human is the weakest link in information security
Simple technique and simple control turned out to be very
effective

“Information security in the modern organization is a management

problem, but not one that technology alone can answer.”
Information security management system
Critical success factors for ISMS Adopting ISMS is a very complex process and there are
several critical factors. For an ISMS to be effective in a specific organization, it must
• Be managed centrally based on organization's strategy and policy;
• Be part of overall management, closely related to organization's approach to risk
management;
• Have the continuous support of organization's top management;
• Have appropriate human and financial resources;
• Have the security objectives and activities based on business objectives and
requirements;
• Undertake only necessary tasks and avoid waste of valuable resources;
• Be a never-ending, constantly improving process;
• Be based on continuous awareness and training of staff
Process approach of building ISMS
 Global Information Systems (GIS)

Facilitates communication between headquarters and subsidiaries in other

countries

Incorporates technologies and applications found in a typical information

system
• Gathers, stores, manipulates, and transmits data across cultural and geographic boundaries
Global Information Systems (GIS)

Increase control over its subsidiaries

Helps international companies: Better coordinate their activities and access
new global markets

Core function: Strategic planning

Organizations may use different

Includes control and coordination combinations of the dimensions
dimensions
 The IS Function Within the Multinational Corporation

Multinational information International information

systems:
• This most prevalent model • This model is
is characterized by
essentially autonomous
data-processing centers in
each nation-state in which
the MNC operates. This
approach suffers from
problems of redundancy
and duplication in data,
applications, and
operations. .
Global information systems:
systems:
• This relatively new model
characterized by a is fundamentally
computer network that characterized by the
operates in more than one integration of data.
nation-state and in which Support for manufacturing
data cross international operations that must
borders in the process of coordinate inputs and
completing a transaction. outputs of plants located
in different countries on a
real-time basis has been
one of several driving
forces leading to the
establishment of such
systems.
IS and its application in Global Business
Global IS strategies

According to the study, there are three main global IT strategies,

each related to a specific type of multinational organization:
• Low dispersal with high centralization is an approach used mostly by small
companies that conduct business in relatively few countries. For them, the
enterprise's domestic IS needs control much of the planning for international
information systems.
• High dispersion with low centralization is best suited for large, diverse
conglomerates that let their wholly owned subsidiaries and joint ventures maintain
their own strategic IS plans.
• High dispersal with high centralization is the structure of choice for truly global
companies that have strong strategic alliances with organizations in host countries.
The approach includes both domestic and international IS plans and encourages
communication among IT executives in the corporation and its subsidiaries.
 Organizational Structures and Global
Information Systems

Types of organizations
Multinational Global International Transnational

Organization’s structure determines the architecture of its GIS

 Multinational Structure

Production, sales, and marketing are decentralized

• Financial management remains the parent company’s responsibility

Advantage
• Reduces the need for communication between subsidiaries and
headquarters
• Subsidiaries make decisions on their own
A Multinational Structure
 Global Structure (Franchiser)

Uses highly centralized information system

Rely on headquarters for all process, control

Subsidiaries have less autonomy decisions and system design and
implementation

Requires extensive communication network

Integration needed to manage production, Duplicate information systems have to be

marketing, and human resources is difficult developed
A Global Structure
 International Structure

Organization operates like a Subsidiaries depend on headquarters for

multinational corporation process and production decisions

Information systems personnel are regularly exchanged among locations

Encourages cooperative culture

Centralization of subsidiaries’ GISs depend on the extent to which they cooperate

An International Structure
 Transnational Structure

Parent company and subsidiaries work together

• Design policies, procedures, and logistics for delivering products and services to
the right market

Headquarters is not set up in a particular country

• Regional divisions share authority and responsibility
 Transnational Structure

Focuses on optimizing supply sources using advantages

available in subsidiary locations

GIS requires high standardization and uniformity for global

efficiency
• Local responsiveness should be maintained
Transnational structure
 Obstacles to Using Global Information
Systems

Lack of Cultural Diverse Poor Lack of skilled

standardization differences regulatory telecommunicat analysts and
practices ion programmers
infrastructures