Managing Operations

1
Managing Operations

• Information Technology Management

Orlando Moreno omoreno_at_hotmail.com 408.656.2498
2
Presented to ALTAMINA S.A.
3
Operations Budget Elements

• Hardware
• Software
• IT, Communication and equipment
• Data center AND personnel
• Disaster recovery planning
• Security
• Invention AND Collaboration

4
Operations Problems Solutions

• Technology
• Continuously fight fires and rearrange priorities
  - getting people to solve the problem at hand
• Continuously document and measure what is done so
  as to find the real solutions, not just the
  apparent ones

5
Applications Characteristics

• Functional quality of the applications, measured
  by how they meet user needs
• Technical quality of the applications, measured
  by how easy they are to maintain and how
  efficiently they run
• Application age and life expectancy
• Portfolio coverage, measured by how much work
  that can be automated is automated

6
5-step Automation Process 1 of 2

• 1.- Define areas of human intervention and divide
  them into
• Procedures that are easy to eliminate
• Procedures that are hard to eliminate
• 2.-Define instructions that could be added to
  application software to eliminate procedures
  identified in previous step

7
5-step Automation Process 2 of 2

• 3.- Agree on a method to incorporate the new
  instructions into new applications and into all
  changes made to existing applications
• 4.- Isolate the easy-to-implement instructions
  into projects and execute them
• 5.- When unattended operation appears easy to
  achieve, organize a project to do it.

8
Drivers of Outsourcing

• Focus on core business
• Value based on their discounted cash flow
  (shareholder value)

9
Customer-vendor Relationships 1-2

• Buying their professional value (planning or
  consulting, building or maintaining applications,
  building or maintaining networks, and training)
• Buying their products (may or may not include
  training)
• Buying their transactions (checks, or credit
  reports)

10
Customer-vendor Relationships 2-2

• Using a systems integrator, to generally handle
  some turnkey solutions and projects
• Outsourcing, where the outsource provider
  contracts to handle all or certain information
  systems
• Systems integration is project based outsourcing
  is time-based

11
Outsourcing Changes 1-6

• Strategic view of outsourcing
• Selective outsourcing
• Transformational outsourcing
• Outsourcing application development
• One stop shopping approach to outsourcing

12
Outsourcing Changes 2-6

• Strategic view of outsourcing -
• Outsourcing now an accepted practice
• Now a way to improve competitive position often
  resulting in major restructuring
• This restructuring results in mega-deals and
  full-service outsourcing

13
Outsourcing Changes 3-6

• Selective outsourcing
• Only specific areas of the IS department
  outsourced
• Deals are short termed (2-5 years) as opposed to
  strategic deals (5-10 years)
• Driving forces are lack of skills and desire to
  offload non-core competency areas to providers

14
Outsourcing Changes 4-6

• Transformational outsourcing
• Assistance in bridging gap between in-place
  infrastructure (mainframe based) and the desired
  future environment (client/server based)
• Companies willingness to admit failure (success
  is based on the clients expectations)
• Some restructuring of a large number of deals
  seems to be in the offing

15
Outsourcing Changes 5-6

• Outsourcing applications development
• Idea that applications were competitive edge is
  dying
• Now better to get applications built faster
  because competitive edge comes from begin first
• Sometimes speedy development can only come from
  outsource providers

16
Outsourcing Changes 6-6

• One-stop Shopping approach
• Firms use it when they outsource infrastructure
  functions (LAN operation, desktop, mainframes)
  along with a best of breed approach when
  outsourcing applications
• Client and prime contractor seek a partnering
  relationship than a customer/supplier relationship

17
Key Questions

• Which IS activities are strategic?
• Will outsourcing save at least 15?
• Does our firm have access to the needed
  technology and expertise?
• Does outsourcing increase our firms flexibility?

18
Key Questions

• Is the vendor likely to exist in five year's
  time?. If not, you and your subscribers may find
  yourself stranded with an obsolete, unsupported
  billing system.
• Is the system fully integrated or does it rely on
  patching components from several different
  vendors, which increases implementation and
  support costs and complexity?

19
Key Questions

• Can the system translate easily to the languages
  of your country, without additional expensive and
  time-consuming coding?
• Does the system deliver true customer care
  enabling, for example, at least 60 per cent of
  queries to Customer Service Representatives to be
  answered from the first screen seen by the
  contact centre agent?

20
Network Management

• Fault handing
• Performance monitoring
• change management
• Tactical planning
• Cost control

21
Net Management Trends

• Integrated net management is a major goal
• Management of distributed applications on horizon
• Automation of network operations on increase
• Outsourcing of network management on increase

22
Internet Security

• Use layered approached
• Begins at the internet connection device (router)
• Screening router can be used to verify the source
  as well as the destination of every packet sent
  to the corporate network by packet filtering

23
Internet Security

• Protect against 5 kinds of attacks
• Eavesdropping
• Password sniffing
• Data Modification
• Spoofing
• Repudiation

24
Internet Security

• Firewalls provide access protection but do not
  ensure end-to-end transaction security
• Cryptographic protocols used to provide security
  on the Net
• Another method is to secure the data in
  individual transactions and not worry about
  securing the Net

25
Disaster Recovery

• Create an effective disaster plan
• Learn the strengths of different data backup
  systems
• Make use of vaulted backups
• Recover e-mail services
• Defend systems from attack
• Lead and manage effectively during times of
  crises

26
Internal Disaster Recovery

• Multiple data centers
• Backup telecommunications facilities
• Build duplicate communication facilities
• Use alternate technologies that re-deploy in case
  of an emergency
• Local area networks (servers backup servers)

27
External Disaster Recovery

• Integrated disaster recovery services
• Specialized disaster recovery services
• On-line and off-line data storage facilities
• Service bureaus, consortia and informal
  cooperative arrangements

28
Questions
Orlando Moreno omoreno_at_hotmail.com 408.656.2498