What Executives Should Know and Do.
As technology is becoming more and more prevalent in today’s societies businesses are looking for more ways to secure account information that might include, home address, telephones, birthdays, and social security numbers. This information must be secured for people who might want to access it for unauthorized use including identity thieves. If account and personal information is stolen from consumers, your company might face serious consequences from the federal government and you could lose support from the very consumers you depend on.
Todd Fitzgerald from the National Government Services outlined 13 Questions that the Chief Information Office must ask of the Chief Executive Officer to ensure that all accounts, personal information, and company knowledge is kept secure. The questions are below. Fitzgerald examines how the changing workplace is affecting security at companies. Companies are having to evaluate how much money they need to spend on securing information without hurting the company’s bottom line. He argues that an employee’s security to certain types of information should be based on their position in the company, “Attention to security should be on a risk adjusted basis, with the higher priority projects receiving increased, formalized attention, while the smaller efforts could be accomplished by the development team through the use of internal peer reviews of the security requirements” (Fitzgerald 4). He goes on to point out that a CIO’s responsibility does not end there. CIO’s are responsible for making sure that servers are protected, codes secure, and insure that high standards are met by performing internal and external audits.
1. What is the minimum necessary effort required to produce code that is secure?
2. What do we need to do to avoid audit issues in the application development process without adding significant expense or delays to our projects?
3. Do you see your role as an after-the-fact reviewer of security controls or engaged in the implementation of the controls?
4. What technologies are available to reduce the labor intensive process of keeping up with the latest patches, system vulnerabilities, configuration management and compliance monitoring?
5. Can you provide information on the “real risks” that are present in our specific industry and the appropriate implementation alternatives that companies use to mitigate these risks?
6. How can we ensure that we have reduced our exposure to an acceptable risk?
7. What tangible benefit will we receive from the security investments that will enable the business?
8. Which internal/external audit issues will these investments eliminate?
9. What other information technology resources are required, in addition to ssstems Security staff, to implement the security solution presented? What support is required from the business?
10. How do the security requirements integrate with the systems development life cycle? Are we performing these tasks already?
11. Do we have the necessary experience in-house to implement these solutions? Should we consider outsourcing some of the functions?
12. What are the critical success factors for achieving success in our security efforts? How much security is “enough”?13. How can you help reduce the time I spend on compliance- related efforts in gathering documentation
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Monday, October 27, 2008
Monday, October 20, 2008
Computer Crimes
As the world becomes more and more dependent on computers, threats to those computers continue to increase at alarming rates. Computer crimes are flourishing despite the rigorous efforts of law enforcement and the business communities that try to stop it. According to a 2005 FBI survey, nearly nine out of 10 organizations experience computer security incidents in a year’s time. The survey revealed that virus and spyware led the list. Viruses and worms cost organizations $12 million annually.
Hackers are individuals who gains unauthorized access to computers. Crackers are hackers who have the intent of doing something criminal. According to the FBI, the newest threat to computers is through a wireless internet or network connection. The FBI stated that the Wireless Encryption Protocol is becoming increasingly vulnerable to hackers. They can gain access to a computer simply by being near your home. Once they have access, they can send illegal spam and pilfer your computer’s data. The FBI suggests that home computer owners setup password protection and change the default and security setting on the WEP.
Identity theft is also a serious computer crime plaguing our country. Personal information can be gained by a hacker through phishing. Phishing is accomplished by setting up fake web sites or sending emails to individuals asking to update personal information such as social security numbers, bank account information, or credit card information. The Internal Revenue Service has actually been warning individuals of this practice for several years now. Criminals pose as the IRS in an attempt to access confidential information. Many people are afraid of the IRS so this works out well for the criminals.
Setting router protocols is a small way to defend yourself from hackers and crackers. Another form of "self defense" is to pay a servicing company to "follow up" with your credit to help stop identity theft. I know this is a small price to pay, but once you have been hit, the cost of "recovering" your identity is very expensive and will be worth the investment. You should constantly get an updated credit report from the three major credit bureaus that you are entitled to each year. This will give you a chance to dispute, even report suspicious activities in your bureau. These credit/identity maintenance are very time consuming, but it is a small way of protecting yourself in the long run.
With all the advanced technological criminals in the world today, a few suggestions come to mind. Always make sure your computer is protected with some type of virus and firewall protection. If you haven’t already done so, make sure you setup passwords on your wireless internet connection. Most importantly, never ever give personal information to anyone in an email.
Hackers are individuals who gains unauthorized access to computers. Crackers are hackers who have the intent of doing something criminal. According to the FBI, the newest threat to computers is through a wireless internet or network connection. The FBI stated that the Wireless Encryption Protocol is becoming increasingly vulnerable to hackers. They can gain access to a computer simply by being near your home. Once they have access, they can send illegal spam and pilfer your computer’s data. The FBI suggests that home computer owners setup password protection and change the default and security setting on the WEP.
Identity theft is also a serious computer crime plaguing our country. Personal information can be gained by a hacker through phishing. Phishing is accomplished by setting up fake web sites or sending emails to individuals asking to update personal information such as social security numbers, bank account information, or credit card information. The Internal Revenue Service has actually been warning individuals of this practice for several years now. Criminals pose as the IRS in an attempt to access confidential information. Many people are afraid of the IRS so this works out well for the criminals.
Setting router protocols is a small way to defend yourself from hackers and crackers. Another form of "self defense" is to pay a servicing company to "follow up" with your credit to help stop identity theft. I know this is a small price to pay, but once you have been hit, the cost of "recovering" your identity is very expensive and will be worth the investment. You should constantly get an updated credit report from the three major credit bureaus that you are entitled to each year. This will give you a chance to dispute, even report suspicious activities in your bureau. These credit/identity maintenance are very time consuming, but it is a small way of protecting yourself in the long run.
With all the advanced technological criminals in the world today, a few suggestions come to mind. Always make sure your computer is protected with some type of virus and firewall protection. If you haven’t already done so, make sure you setup passwords on your wireless internet connection. Most importantly, never ever give personal information to anyone in an email.
Thursday, October 16, 2008
Telecommunications and the World Wide Web
The world is quickly emerging into one that no longer knows life without technology. Kids now have no idea what it was like to not have video games, remote controls, computers or cell phones. With each new idea that launches in the business world comes a new trade and way of doing things. The World Wide Web and the telecommunications industries seem to be going strong with no signs of slowing down.
Without the World Wide Web, we would not be taking this class or posting this blog. There are so many other options now available to us that only a few years ago were unthinkable. We have internet banking where we can check our account balance anytime without ever setting foot in the bank. There is also the option of using one of the many search engines to find information for research projects or just for fun. It all helps us stay connected at all times.
The telecommunications industry has grown so much that landline phones are almost no longer a necessity. A person with a smart phone can accomplish almost anything they could do while sitting at their work desk. Check e-mail, surf the net, write a Word document and talk on the phone. There is also the option on many phones of being able to take pictures and video and immediately have them sent to someone else. In the cellular world, there are CDMA, GSM and 3G networks, which is used by the Apple’s new iPhone. If at any time we get tired of holding the actual phone in our hands, or we must talk while driving, we have the option now using a Bluetooth paired with our phones. Bluetooth can also connect to other items such as a printer, keyboard or PDA, constantly keeping us connected and able to personally network.
On the opposite side of the telecommunications industry lays the Wi-Fi and wireless internet that almost every company offers to its customers. Cingular, Verizon and Alltel offer a WiFi/wireless internet package that can keep you connected to the internet so long as you are in a cellular service area. How many places can we go now that doesn’t advertise on its walls that it is a “Wi-Fi Hot Spot?” Even McDonald’s has jumped on board making most of its locations a hot spot to help draw that technology savvy crowd. And most people won’t even consider a hotel that doesn’t offer WiFi or wireless internet to its customers. Even now, this blog is being posted using a wireless internet connection.
Our technology is ever changing. The good part is that these services are only improving and getting cheaper to use. The competition has really heated up over the past few years and everyone major telecommunications company wants a slice of that pie. This works well for the consumer who wants to just enjoy always being connected.
Without the World Wide Web, we would not be taking this class or posting this blog. There are so many other options now available to us that only a few years ago were unthinkable. We have internet banking where we can check our account balance anytime without ever setting foot in the bank. There is also the option of using one of the many search engines to find information for research projects or just for fun. It all helps us stay connected at all times.
The telecommunications industry has grown so much that landline phones are almost no longer a necessity. A person with a smart phone can accomplish almost anything they could do while sitting at their work desk. Check e-mail, surf the net, write a Word document and talk on the phone. There is also the option on many phones of being able to take pictures and video and immediately have them sent to someone else. In the cellular world, there are CDMA, GSM and 3G networks, which is used by the Apple’s new iPhone. If at any time we get tired of holding the actual phone in our hands, or we must talk while driving, we have the option now using a Bluetooth paired with our phones. Bluetooth can also connect to other items such as a printer, keyboard or PDA, constantly keeping us connected and able to personally network.
On the opposite side of the telecommunications industry lays the Wi-Fi and wireless internet that almost every company offers to its customers. Cingular, Verizon and Alltel offer a WiFi/wireless internet package that can keep you connected to the internet so long as you are in a cellular service area. How many places can we go now that doesn’t advertise on its walls that it is a “Wi-Fi Hot Spot?” Even McDonald’s has jumped on board making most of its locations a hot spot to help draw that technology savvy crowd. And most people won’t even consider a hotel that doesn’t offer WiFi or wireless internet to its customers. Even now, this blog is being posted using a wireless internet connection.
Our technology is ever changing. The good part is that these services are only improving and getting cheaper to use. The competition has really heated up over the past few years and everyone major telecommunications company wants a slice of that pie. This works well for the consumer who wants to just enjoy always being connected.
Monday, October 13, 2008
Analog vs. Digital
Starting February 17, 2009 all full-power broadcast television stations will stop broadcasting on analog airwaves. They will be in digital only. This allows stations to offer improved picture and sound quality as well as additional channels (www.dtv.gov). The bad thing is once this takes place, unless you have a newer TV, anything made before March 1, 2007 will need a digital-to-analog converter box. Up until March 31, 2009 all households will be able to request up to two coupons to redeem for the converter which each is a $40 value.
The main reason this switch is even happening is because the government wants to free up all of the analog airways. The website, www.dtvanswers.com, says an important benefit of the switch to all-digital broadcasting is that it will free up parts of the valuable broadcast spectrum for other services. Also, some of the spectrum will be auctioned to companies, so they can provide consumers with more advanced wireless services, such as wireless broadband.
Consumers will also benefit from this transition. Not only will digital offer a better picture and sound quality, digital is also more efficient. This transition will actually mean more choices of shows to watch! Who wouldn't love that? Now channels like 7 could offer more than one show. You could watch 7-1, 7-2, or 7-3. It is called multicasting. How awesome is that?
What makes digital better than analog? Basically, the digital signal is transmitted as 1's and 0's, your TV or converter box then deciphers those 1's and 0's and puts them in the correct order which then gives you the picture. It's kind of complicated if you are not around it often, but it is much more efficient than transmitting the old analog signal. Analog signals use much more bandwidth therefore cutting down on the quality of the picture and sound.
There are many questions to consider. Many are concerned about their satellite reception. From what I read, they have nothing to be concerned about. The satellite companies already broadcast their shows in digital. "As a result, there should be no change in service for satellite subscribers unless the local TV stations are not provided by the satellite carrier."
" I have Directv and they sent us a notice telling us that it wouldn't affect us no matter what type of television we have because they broadcast over a digital signal so if they work now they will work later." Renita Brown said. That is great to know!
Let's talk about this converter box. "To help consumers with the DTV transition, the Government established the Digital-to-Analog Converter Box Coupon Program. The National Telecommunications and Information Administration (NTIA), a part of the Department of Commerce, administers this program. Every U.S. household is eligible to receive up to two coupons, worth $40 each, toward the purchase of eligible digital-to-analog converter boxes." That sounds good to me. They official website for the transition states that they started taking applications January 2008. These coupons are only good at participating electronic stores, so visit dtv2009.org for a list of the stores.
If you decide to just get rid of your old tv and buy a digital, they even have programs for that! There are several recycling programs available to use. My Green Electronics was listed on the website, and you can view all their information at http://www.mygreenelectronics.org
If you would like to know more information visit the official website for digital tv transition at dtv2009.org.
The main reason this switch is even happening is because the government wants to free up all of the analog airways. The website, www.dtvanswers.com, says an important benefit of the switch to all-digital broadcasting is that it will free up parts of the valuable broadcast spectrum for other services. Also, some of the spectrum will be auctioned to companies, so they can provide consumers with more advanced wireless services, such as wireless broadband.
Consumers will also benefit from this transition. Not only will digital offer a better picture and sound quality, digital is also more efficient. This transition will actually mean more choices of shows to watch! Who wouldn't love that? Now channels like 7 could offer more than one show. You could watch 7-1, 7-2, or 7-3. It is called multicasting. How awesome is that?
What makes digital better than analog? Basically, the digital signal is transmitted as 1's and 0's, your TV or converter box then deciphers those 1's and 0's and puts them in the correct order which then gives you the picture. It's kind of complicated if you are not around it often, but it is much more efficient than transmitting the old analog signal. Analog signals use much more bandwidth therefore cutting down on the quality of the picture and sound.
There are many questions to consider. Many are concerned about their satellite reception. From what I read, they have nothing to be concerned about. The satellite companies already broadcast their shows in digital. "As a result, there should be no change in service for satellite subscribers unless the local TV stations are not provided by the satellite carrier."
" I have Directv and they sent us a notice telling us that it wouldn't affect us no matter what type of television we have because they broadcast over a digital signal so if they work now they will work later." Renita Brown said. That is great to know!
Let's talk about this converter box. "To help consumers with the DTV transition, the Government established the Digital-to-Analog Converter Box Coupon Program. The National Telecommunications and Information Administration (NTIA), a part of the Department of Commerce, administers this program. Every U.S. household is eligible to receive up to two coupons, worth $40 each, toward the purchase of eligible digital-to-analog converter boxes." That sounds good to me. They official website for the transition states that they started taking applications January 2008. These coupons are only good at participating electronic stores, so visit dtv2009.org for a list of the stores.
If you decide to just get rid of your old tv and buy a digital, they even have programs for that! There are several recycling programs available to use. My Green Electronics was listed on the website, and you can view all their information at http://www.mygreenelectronics.org
If you would like to know more information visit the official website for digital tv transition at dtv2009.org.
Thursday, October 9, 2008
Google's Attempt of Total Control
Depending on an individual’s needs or goals and needs of a business determines the selection of software application and productivity tools. Whether an individual uses word processing application to compose class assignments or a business uses word processing to compose letters, a system is selected to accommodate objectives.
Microsoft Office (MO) long held the primary choice of such usage as other applications had phased out in its inability to provide services needed with the evolving needs and available conveniences of this technical era. MO’s suite includes applications that assists in composing professionally written correspondence such as letters and resumes from Word; creations of flyers and certificates from Publisher; slideshow presentations from Powerpoint, calculations and a user-friendly layout to analyze the information in Excel; and Access, which allows one to create databases and manage information. MO has the tools necessary for a smooth personal and business operation where information retrieval is easy by being saved to the hard drive or removable devices.
However, Google has embarked upon the barrier to entry with its Google Apps (GA). Although, the service is fairly new, it already has accumulated many former MO users as GA offers the same features of MO, but on a widened scale at a much more affordable cost. GA’s word processor, spreadsheet, Gmail, calendar and web page creator are direct competitors to MO’s Word, Excel, and Microsoft Outlook. GA may not have an application named Access or Powerpoint, but there are features available to allow one to produce similar end results by sharing the information online that can be accessed and edited all in real-time with the capability of instant online conversation.
GA offers a large amount of storage, strong spam filters and a calendar. It also has a chat feature built in, so it is not necessary to load another program for instant communication. It is convenient and most likely uses fewer resources, which are important when using a budget computer with lower computing capabilities. Google is geared to competing fiercely with MO, so it may not be long before comparative resources and performance levels exceeds the rival application. The unfamiliar applications are equipped with on-training sessions and video clips with and without sound capability for an easy transition.
Users of the Gmail account within GA claim that spam filters block 99% of the spam that usually makes it to your inbox. This convenience allows one to retaining an old email account without burdensome unwanted emails. Emails are tabbed into a thread for great organization, old emails are able to be archived, and all emails are online and even accessible by a mobile phone.
Gmail and Yahoo mail beta along with AOL mail to make up the vast majority of the 500 million or so web mail users around the world. Overall, web users prefer Gmail over all other web mail applications because the speed is consistently faster. They offer more features and more storage. But, Yahoo offers more mainstream Outlook-like user interfaces. If one is are looking for speed and tagging, then Gmail is a better choice. However, if one is looking for something that is closer to Outlook, then Yahoo mail is better.
The following are some comparisons of Gmail and Yahoo Mail:
GMail Yahoo Mail
Users 51m 250M
Storage 2.5Gb+ 1GB
Free Yes Yes
Search A B+
Speed A B+
“I’ve used GMail for a couple of years after using Yahoo! GMail is faster than Yahoo! and other email sites. The interface is easier to use and the inbox updates automatically. Spam very rarely gets through to my inbox, while my Yahoo! inbox was full of it,” exclaims a content Gmail user.
Smaller businesses with more simplified day to day tasks will benefit more from GA. The lower fees are important to this type of business and they most likely do not need to have strong presentation software. Although they need a good database, smaller businesses can handle their needs with a spreadsheet in GA. The spreadsheets can be networked to coworkers who can share the same online copy of each document, spreadsheet or presentation. All revisions are saved and recoverable.
The fact you must be on the internet to use GA is definitely a disadvantage when in an airport or if service is temporarily interrupted. The other applications are on your computer and used anywhere you have power. An offset to this is the Enterprise-class service, which are managed 24/7 by Google and phone support is available for critical issues. But who wants to wait while going through another avenue to pull up information that is wanted immediately? The idea of not having information and business secrets to be accessible at any time seems to be a great release of power.
It is clear that GA is significantly faster, has mounds and mounds of infinite space for storage that is added to when deemed necessary, less expensive than MO and Google is geared towards customer intimacy. Google encourages customers to offer their input on services they’d like to have which is not currently available. Google considers the information with available technology while working to improve its services. Google also takes into consideration the love of personalization that people enjoy in their messages and pages. They’ve added new emoticons and a wider array of colors.
Microsoft Office (MO) long held the primary choice of such usage as other applications had phased out in its inability to provide services needed with the evolving needs and available conveniences of this technical era. MO’s suite includes applications that assists in composing professionally written correspondence such as letters and resumes from Word; creations of flyers and certificates from Publisher; slideshow presentations from Powerpoint, calculations and a user-friendly layout to analyze the information in Excel; and Access, which allows one to create databases and manage information. MO has the tools necessary for a smooth personal and business operation where information retrieval is easy by being saved to the hard drive or removable devices.
However, Google has embarked upon the barrier to entry with its Google Apps (GA). Although, the service is fairly new, it already has accumulated many former MO users as GA offers the same features of MO, but on a widened scale at a much more affordable cost. GA’s word processor, spreadsheet, Gmail, calendar and web page creator are direct competitors to MO’s Word, Excel, and Microsoft Outlook. GA may not have an application named Access or Powerpoint, but there are features available to allow one to produce similar end results by sharing the information online that can be accessed and edited all in real-time with the capability of instant online conversation.
GA offers a large amount of storage, strong spam filters and a calendar. It also has a chat feature built in, so it is not necessary to load another program for instant communication. It is convenient and most likely uses fewer resources, which are important when using a budget computer with lower computing capabilities. Google is geared to competing fiercely with MO, so it may not be long before comparative resources and performance levels exceeds the rival application. The unfamiliar applications are equipped with on-training sessions and video clips with and without sound capability for an easy transition.
Users of the Gmail account within GA claim that spam filters block 99% of the spam that usually makes it to your inbox. This convenience allows one to retaining an old email account without burdensome unwanted emails. Emails are tabbed into a thread for great organization, old emails are able to be archived, and all emails are online and even accessible by a mobile phone.
Gmail and Yahoo mail beta along with AOL mail to make up the vast majority of the 500 million or so web mail users around the world. Overall, web users prefer Gmail over all other web mail applications because the speed is consistently faster. They offer more features and more storage. But, Yahoo offers more mainstream Outlook-like user interfaces. If one is are looking for speed and tagging, then Gmail is a better choice. However, if one is looking for something that is closer to Outlook, then Yahoo mail is better.
The following are some comparisons of Gmail and Yahoo Mail:
GMail Yahoo Mail
Users 51m 250M
Storage 2.5Gb+ 1GB
Free Yes Yes
Search A B+
Speed A B+
“I’ve used GMail for a couple of years after using Yahoo! GMail is faster than Yahoo! and other email sites. The interface is easier to use and the inbox updates automatically. Spam very rarely gets through to my inbox, while my Yahoo! inbox was full of it,” exclaims a content Gmail user.
Smaller businesses with more simplified day to day tasks will benefit more from GA. The lower fees are important to this type of business and they most likely do not need to have strong presentation software. Although they need a good database, smaller businesses can handle their needs with a spreadsheet in GA. The spreadsheets can be networked to coworkers who can share the same online copy of each document, spreadsheet or presentation. All revisions are saved and recoverable.
The fact you must be on the internet to use GA is definitely a disadvantage when in an airport or if service is temporarily interrupted. The other applications are on your computer and used anywhere you have power. An offset to this is the Enterprise-class service, which are managed 24/7 by Google and phone support is available for critical issues. But who wants to wait while going through another avenue to pull up information that is wanted immediately? The idea of not having information and business secrets to be accessible at any time seems to be a great release of power.
It is clear that GA is significantly faster, has mounds and mounds of infinite space for storage that is added to when deemed necessary, less expensive than MO and Google is geared towards customer intimacy. Google encourages customers to offer their input on services they’d like to have which is not currently available. Google considers the information with available technology while working to improve its services. Google also takes into consideration the love of personalization that people enjoy in their messages and pages. They’ve added new emoticons and a wider array of colors.
Monday, October 6, 2008
Green Computing?
Everything is going green, even computing, but what exactly is “green computing”? Wikipedia defines green computing as “the study and practice of using computing resources efficiently.” The problems addressed by green computing are increasingly complex and include but are not limited to the disposal of electronic waste, energy use, carbon free computing, telecommuting, and thin client solutions. All the major computer manufacturing companies are working on ways to make their products “greener” and providing solutions for companies with their existing systems. IBM has committed to a number of goals in reducing energy consumption with Project Big Green. To conserve energy they are implementing more intelligent design and more efficient cooling systems that may use liquid instead of air to cool. Fifty-five to sixty-five percent of power coming into data centers is from HVAC systems and lighting. IBM has created a "cold battery" to improve data center chillers, it can turn from a liquid into a solid, the temperature at which it turns to a solid can be set and can use less energy when charging up. The battery also holds power better than a traditional cooler and can be charged at night when it is cooler and utility rates are lower.IBM also claims to have become the first company to recycle 1 billion pounds of IT equipment last fall, and will continue recycling 40,000 systems per week. Solar power is one of the alternative energy sources. Solar powered computing is less polluting, more affordable, more reliable and more flexible for a wide variety of new markets, applications and environments. Some advantages of solar power are a clean non-polluting energy, silent operation, virtually free energy once the capital cost has been covered, no refueling, self sufficient, highly reliable, and virtually maintenance free. Carbon free computing is an idea to reduce the carbon footprint of users. This is the amount of greenhouse gases produced measured in units of carbon dioxide. VIA calculates how much carbon dioxide emissions will be released into the environment and the work with regional offset organizations to offset that amount of carbon dioxide. Some offsets are reforestation alternative energy, and energy conservation. Some benefits of carbon free computing are fulfilling corporate social responsibilities, eligibility for sales and tenders with green requirements, enhancing green working environment for employee comfort and morale, and raise awareness of energy conservation for further cost savings. Telecommuting is also an interesting way for companies to help "go green". By allowing their employees to work from home even a couple days a week helps companies cut down on power costs and saves gas and time on the commute. This doesn't solve the problem of cooling the servers but every little thing helps. Telecommuting reduces an individual’s carbon footprint by reducing the daily commute. Thin client computers are yet another way to help a company go green. A thin client does not store anything within it; instead it sends everything to the server for storage. Regular PCs pass only data to the server and store everything at the terminal instead. A thin client uses 70% less energy than a regular PC and can last longer. The topic of green computing is very vast and with the push from every direction for environmental responsibility this concept will only grow.
Outsourcing
Every day on the news we hear about companies closing down factories and outsourcing jobs to places like Mexico, India, and China. But what we don’t really know is if the outsourcing really helps the bottom line. Iacouvou and Nakatsu researched different companies and their outsourcing efforts over the years in an attempt to see what the common errors made by companies and the company contracted to do the outsourcing.
To begin they examined the case of Life Time Fitness (LTF) who went with a company in India to develop a decision support system in hopes that the company would develop a tool that would allow Life Time Fitness to decide where the best places were to put their gyms. Soon LTF began experiencing problems with transfer of knowledge, communication errors, and inexperienced IT personnel. This ended up costing the company a great deal of money and they decided to end the contract with the Indian company without the decision support system that they had originally needed.
Outsourcing is a unique method of getting work tasks done outside the walls of the actual business itself and possibly even outside the boundaries of the business' home country. Of course telephones are one way to enable outsourcing of jobs, but the internet opened many new doors for outsourcing especially for the information systems field. Everything has its advantages and disadvantages. First, it is very beneficial for companies to have many potential providers for information systems services and workers because of price competition and the huge demand on this field. On the other hand, outsourcing and offshoring can create more problems due to increased risks, communication barriers and inhibitors, culture clashes, and lack of knowledge.
The two kinds of outsourcing, domestic outsourcing among other U.S. companies and overseas offshoring to other low-wage countries, both have their own effects on the information systems field. Of course outsourcing occurring in our own country is going to have a smaller impact on overall employment demand since most businesses may lose a couple of their own workers as larger servicing firms hire them. However, the offshoring will have a much greater impact on the demand, especially the technical area as opposed to the management area, because most people overseas are learning the technical parts of the field, how things work, how they can be fixed, and how they can be serviced as opposed to how to manage people who do those things. The managers are those who remain in our own country, but more and more people overseas are learning the "grunt work" of certain fields, information systems and customer service call centers just to name a couple, and causing more competition when it comes to seeking employment in those areas.
For these reasons the researchers in the above mentioned article outlined several risk factors that US companies should take into account when considering outsourcing. “As the findings indicate, the risks focus on three major areas of concern: the communication between the client and the vendor, the client’s internal management of the project, and the vendor’s capabilities” (Iacovou and Nakatsu 91).
In conclusion, when it comes to learning new information systems skills, in order to maximize ones employment potential, it is very advantageous to not only develop a vast knowledge of the technical aspect (hardware, software, systems functions, etc.) but to also place an equal amount of importance on the managerial skills one would need to design new systems, solutions and implement them while leading others to do the same things.
To begin they examined the case of Life Time Fitness (LTF) who went with a company in India to develop a decision support system in hopes that the company would develop a tool that would allow Life Time Fitness to decide where the best places were to put their gyms. Soon LTF began experiencing problems with transfer of knowledge, communication errors, and inexperienced IT personnel. This ended up costing the company a great deal of money and they decided to end the contract with the Indian company without the decision support system that they had originally needed.
Outsourcing is a unique method of getting work tasks done outside the walls of the actual business itself and possibly even outside the boundaries of the business' home country. Of course telephones are one way to enable outsourcing of jobs, but the internet opened many new doors for outsourcing especially for the information systems field. Everything has its advantages and disadvantages. First, it is very beneficial for companies to have many potential providers for information systems services and workers because of price competition and the huge demand on this field. On the other hand, outsourcing and offshoring can create more problems due to increased risks, communication barriers and inhibitors, culture clashes, and lack of knowledge.
The two kinds of outsourcing, domestic outsourcing among other U.S. companies and overseas offshoring to other low-wage countries, both have their own effects on the information systems field. Of course outsourcing occurring in our own country is going to have a smaller impact on overall employment demand since most businesses may lose a couple of their own workers as larger servicing firms hire them. However, the offshoring will have a much greater impact on the demand, especially the technical area as opposed to the management area, because most people overseas are learning the technical parts of the field, how things work, how they can be fixed, and how they can be serviced as opposed to how to manage people who do those things. The managers are those who remain in our own country, but more and more people overseas are learning the "grunt work" of certain fields, information systems and customer service call centers just to name a couple, and causing more competition when it comes to seeking employment in those areas.
For these reasons the researchers in the above mentioned article outlined several risk factors that US companies should take into account when considering outsourcing. “As the findings indicate, the risks focus on three major areas of concern: the communication between the client and the vendor, the client’s internal management of the project, and the vendor’s capabilities” (Iacovou and Nakatsu 91).
In conclusion, when it comes to learning new information systems skills, in order to maximize ones employment potential, it is very advantageous to not only develop a vast knowledge of the technical aspect (hardware, software, systems functions, etc.) but to also place an equal amount of importance on the managerial skills one would need to design new systems, solutions and implement them while leading others to do the same things.
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