MIS Assignment 2: Risk Associated with Business and IT/IS change...

{ Posted on 1:24 AM by Ariel Serenado }


This assignment is with reference to the visited local organization in assignment 1. With this, it is not the Best IT/IS practices but the risks associated with business and IS/IT change.


Same company we visited for assignment 2 which was the Hubport Group Interactive, located at the 3rd Floor Conpinco Building, along J.P Laurel Avenue, Bajada, Davao City. The same person we interviewed regarding this assignment and it was Mr. Paulo Saravia, the Operations Officer at Hubport Interactive Inc. Also, he is a Web Designer, Project Manager and under training in Operations Management for Information Technology / Management and Business Process Outsourcing. Besides, he is specializing in IT business process development, IT product branding, human resource acquisition, project management, client negotiations, web design, application process design, interactive flash development and many more.

According to Mr. Saravia, Hubport started with only 6 (six) developers and 2 (two) designers; as to their facilities they started with the basic software, of course basic hardwareincludes computer units. Since it is not easy to invest with competitive systems, the company was not able to acquire it until late 2006-2007 marked the breakthrough of the company when it comes to the systems used, from basic software to high level ones, from basic hardware to the upgraded ones For this time, what we have known are the risks associated with business and IS/IT change. In this section “risks” is being centered.

By the way, what is risk??

By definition, RISK is a concept that denotes the precise probability of specific eventualities. Technically, the notion of risk is independent from the notion of values and, as such, eventualities may have both beneficial and adverse consequences. However, in general usage the convention is to focus only on potential negative impact to some characteristic of value that may arise from a future event. Risk can be defined as “the threat or probability that an action or event will adversely or beneficially affect an organization’s ability to achieve its objectives”. In simple terms risks is ‘Uncertainty of Outcome’, either from pursuing a future positive opportunity, or an existing negative threat in trying to achieve a current objective. In this case, the event is the change in the field of Information Technology/Information System and the change in Business Environment. With new technology as one of the key drivers in maintaining competitive advantage and continuity success in the business sector, change is one of the few constants within the said sector. Any change, especially fast-paced change creates risk – on a technical as well as operational level. Risk needs to be recognized, evaluated and managed if the organization and their customers are to benefit, rather than suffer, from change.

From the interview we conducted to the IT officer, he gave us this following information:

For the risk associated with IT/IS change, here are the following:

1. Rejection of the Staff.

Unfortunately, new information technology causes a fundamental change in the workplace. Thus, organizational change is always a challenge and often causes a rejection on the part of employees and the management side. Hubport is an international-based company, the company should relate to demand that there are still branches outside the main branch of the company which requires also the fast responsiveness on the change. Therefore, the company would understand rejection of employees, instead of having many employees to attain on the needs of every branch what; will happen is that only one employee will be managing the branch and that is the manager. This is to address that in every high flexible and more effective processes there is an optimizing cost.


2. Major Change:Data Loss


Despite technological advances in the reliability of magnetic storage media, data loss continues to rise, making data recovery more important than ever. Because of the IT/IS change, there is a risk on data loss. Data loss may come in different form – Intentional, Unintentional, Failure and Disaster. Failure and human error are the two identified causes of data loss. The only way to recover form data loss is having a Recovery Plan probably storage in separate location. Operating system errors account for a large percentage of data loss. Virus attacks and spyware can bring down a system and erase critical data. The operating system will not boot if located on the same drive as the compromised hard disk, as it will indicate that the operating system is not found. In the whole interview with Mr. Saravia, he centered his discussion on the major changes in business environment.

Here are the following changes in the business enviroment:

1. Security.

“Business is secured with IS”, Mr. Saravia added, with the help of the competitive systems that they are using it tends to update them with latest enhancement projection. There is a “one-way monitoring” with IS.

2. Dissemination is clear.

With the help of the Information System through a VOIP or Voice Over Internet Protocol, the company is providing a complete access on the services that the company is offering.


Some of the questions raised during the interview were:

  • What procedures are in place for controlling the development of software
applications and changes to those applications?

Software Development Life Cycle


This means that the applications of the systems are “time and material based”, for without this basis there is a risk factor that customer won’t follow do necessary payments regarding the application requested by the customer. The company is actually using the “waterfall method”. A waterfall method is a sequential software development process, to which progress is seen as flowing steadily through the phases of Requirements, Design, Implementation, Verification and Maintenance.
The waterfall method model maintains that one should move to a phase only when its preceding phase is completed and perfected.
  • Cite some trends in global business environment that have made IS vital?
Global Financial Crisis

Because of this Global Financial crisis the company is looking for other companies to become partners in managing the business. In order to mitigate and manage the service continuity plan of the company. High ystem Requirements System requirements may include License Certification. This enables to meet both the requirements of business and the broader needs of society. Also involves, requirement on effective and competitive systems to cope with the greater demand. Despite all the advances of technology there appear to have risks. This is because of the changes in terms of the systems that the company is using. That is why risks should be expected at any point and should be taken into account to avoid the greatest risk on business malfunction. Data loss is considered the major change on the IT/IS change and it seems to be apparent with the rest of the companies.Also, nowadays we all move along at such a fast pace that any disruption can prove to be disastrous, especially if that problem stems from computer data loss. We depend so much on one piece of machinery that losing precious data, time, and productivity can lead to bigger concerns. There are many common issues that arise that can be the culprit and happen at any time.

The visit…the interview…



The group with Mr. Paulo Saravia, Operations Manager, Hubport Interactive.




Ariel Serenado at Hubport Interactive.


Source:

http://en.wikipedia.org/wiki/Risk

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