STUDY GUIDE

Topic 12:

BMIT5103

Information Technology for Managers

Security, Crime, Compliance and Continuity

Learning Outcomes
By the end of this topic, you should be able to:
1.

Explain the value of aligning IT and business strategies and how this
alignment can be achieved;

2.

Recognise the importance, functions and challenges of IT governance;

3.

Describe the reasons and benefits of aligning IT and business

strategies;

4.

Describe the IT strategic planning process;

5.

Discuss major types of outsourcing, reasons for outsourcing and the

risks and benefits; and

6.

Take a forward-look at the future of BI in the form of mobile intelligence

(MI).

Topic Overview
This topic highlights the value of aligning IT and business strategies, and
ways to achieve this alignment. IT governance is concerned with ensuring
that organisational investments in IT return full value. IT performance
management enables failures to be anticipated before it is too late.
Therefore, it is vital for managers to realise the importance, functions and
challenges of IT governance. The IT planning process results in a formal IT
strategy. Several tools and methodologies are used to facilitate IT strategic
planning. Examples of these methodologies are Business Service
Management and Business Systems Planning Model. Business Service
Management uses real-time dashboard views to understand and predict how
IT impacts business and how business impacts IT architecture. Balanced
scorecard is a business management concept that transforms both financial
and non-financial data into a detailed roadmap which helps measure
performance. Scenario planning is a methodology which planners first create
several scenarios, then a team compile as many future events as possible
that may influence the outcome of each scenario. Companies should
understand major types and reasons for outsourcing as well as the risks and
benefits of outsourcing. It is also worth identifying the factors that drive the
growth in outsourcing as an IT strategy. Prediction of future BI in the form of
mobile intelligence (MI) is extrapolated.

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BMIT5103

Information Technology for Managers

Focus Areas and Assigned Readings

Focus Areas

Assigned Readings
Turban, E., & Volonino, L. (2012).
Information technology for
management, International student
version. Asia: John Wiley.

12.1
12.2
12.3
12.4
12.5

IT Strategies
Corporate and IT Governance
Aligning IT with Business
Strategy
IT Strategic Planning Process
IT Outsourcing Strategies

Chapter 12, pp 361364.

Chapter 12, pp 364366.
Chapter 12, pp 367371.
Chapter 12, pp 371378.
Chapter 12, pp 378383.
Extra Readings
Balanced Scorecard Institute
balancedscorecard.org/
Outsourcing Professionals best
outsourcing service providers
outsourcingprofessional.org/content/
23/152/1197/
Visual Ark virtualark.com/
Windows Azure
microsoft.com/windowsazure/
Rackspace Hosting rackspace.com/
CIO Insights and Strategy
IBM.com/CIO/
Debate Over Offshore Outsourcing
quality-web-solutions.com/offshoreoutsourcing-debate.php
Outsource Blog
theoutsourceblog.com/
Bloomberg Real-time Information
Services bloomberg.com/
IT Governance Institute itgi.org/
Video on SaaS & Outsourcing
Relationship Management
janeeva.com/blog/

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BMIT5103

Information Technology for Managers

Content Summary
12.1

IT Strategies
x
x

IT strategies: in-house and outsourcing.

IT and business strategy success cases.

12.2

IT governance.
What does IT governance cover?

Aligning IT with Business Strategy

x

x
x
x
12.4

Business and IT strategies defined.

Corporate and IT Governance

x

12.3

IT and business strategy disconnects.

IT at Work 12.1 CIOs Strategic Direction and Initiative.

Strategic role of IT.
Competitive advantage through IT.
Key resource attributes that create competitive advantage.

IT Strategic Planning Process

x
x

IT at Work 12.2 IT Steering Committees.

Tools and methodologies of IT strategic planning.

Business systems planning model.

CSF model.

IT strategic planning process.

Business service management.

Balanced scorecard.

Scenario planning.
Resource application.

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12.5

BMIT5103

Information Technology for Managers

IT Outsourcing Strategies
x
x
x

IT at Work 12.3 eBays Rapid Growth Pains.

IT at Work 12.4 CIO Discusses J. P. Morgan Chases Sourcing
Strategy.

BPO and ITES.

Risk concerns and hidden costs.

Factors driving growth in outsourcing as an IT strategy.

Offshoring.
The outsourcing life cycle.

Study Questions
1.

Explain the difference between in-house and outsourcing IT strategies.

2.

What are the possible reasons why a high percentage of IT projects are
abandoned?

3.

What are the goals of ITbusiness alignment?

4.

Why is IT performance management a key part of IT governance?

5.

How can ITbusiness alignment be improved?

6.

Describe three types of resources that information systems can

contribute to a firm.

7.

Why is it important for the CIO to be included as a member of the

CEO's senior management team?

8.

Why must IT strategic planning be revisited on a regular basis?

9.

Describe the IT strategic planning process.

10.

Describe project portfolio and applications portfolio. When are these

portfolios developed?

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BMIT5103

Information Technology for Managers

11.

What tools and methodologies are available to assist in the IT strategic

planning process? How are these methods used to help organisations?

12.

What are some of the major reasons for outsourcing?

13.

What are the benefits of outsourcing? What are the risks of

outsourcing?

14.

Discuss the strategies organisations should consider in managing the

risks associated with outsourcing contracts.

15. Distinguish between outsourcing and offshore outsourcing.

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