IS Today Case Study

Assignment

By: xxxx

Introduction
Over the past decade, Information Systems has been progressing at an exponential rate. With the
fast advancements made every day in Information Systems, it became clear to companies that information technology could prove very useful in a number of ways. Information Technology can be applied to solving the companys existing problems, granting the company a competitive edge in the market, improving customer satisfaction, reaching out to new customers and markets, and many more. However, due to limited resources companies have to prioritize there requirements. Below, are some of the issues that companies face in Information Systems today.

1. Disparate Legacy Systems

Problem : A lot of companies that have embraced technology long ago, find themselves now using multiple databases across the various departments in the company. This is a very common problem with many companies, and it makes it more difficult for top level management to make informed decisions Solution: One way to solve this issue is to implement Business Intelligence systems. The company will need to create a data warehouse that will draw on the disparate data sources. Once a data warehouse is established, a BI system from various vendors such as Microsoft can be applied here to solve the issue.

Disparate legacy systems pose a major problem to a very large number of companies and organisations worldwide. A large amount of money is required migrating to an ERP solution, however the benefits gained from a centralised ERP will over time outweigh the costs invested in this project. I will be discussing this issue in greater details in the next sections of this report. Detailed analysis of the problems faced by SPORT1 T.V channel in Germany and the benefits gained.

2. Security (Banks Example)

Problem: Banks today are running completely on information technology for processing all kinds of transactions. Hackers have been successfully able to break into the systems of many banks and financial institutions over the past 10 years and steal large amounts of money Solution: Protecting a company or a bank against hackers will require a collection of different defensive measures: 1. The installation of a firewall is absolutely necessary. Installing a solution from a Major vendor such as Symantec will provide the first line of defence against hackers. 2. The way the servers are setup between the companys internal network and the internet is very important. Typically some servers will be located in a DMZ while others will be behind the firewall and communicating only through a proxy server. Therefore reducing the exposure of the companys internal servers to the internet. 3. The Continuous update of all Operating systems across all servers and clients to patch any new known vulnerability. 4. The use of Antivirus/Antispyware applications on all client and server computers. The implementation of a solution from Symantec or MacAfee should be sufficient.

3.

Disaster Recovery / Backup

Problem: Due to the heavy reliance on information Systems by most companies today, In the event of a disaster to the companys office, the organisation will be left in complete chaos. Companies should always have a backup solution for retrieval of their valuable data in such events. Solution: The implementation of one of various backup solutions: - Daily Backup of all the servers content to Magnetic Tapes and store them offsite - Daily backup of all the servers content to another location through a WAN Link - Implementing solutions such as IBM Tivoli for continuous data backup to a remote NAS Device.

4.

Inventory Tracking
Problem: Even with the use of complicated EDI systems to manage inventories, the tracking of goods through the supply chain remains a complex process and one that is difficult to manage. The current system involves the use of conventional barcodes and requires a lot of human intervention due to various issues such as the scanners unable to read the barcode because of a scratch as a result of mishandling. Therefore, this process is very labour intensive and thus costly and error prone. Solution: An advanced automatic identification technology such as the Auto-ID Labs system based on the Radio Frequency Identification (RFID) technology has significant value for inventory systems. Notably, the technology provides an accurate knowledge of the current inventory
{ Wikipedia. (2007). RFID Uses in Inventory systems. Available: http://en.wikipedia.org/wiki/Radiofrequency_identification#Inventory_systems.Last accessed 25 June 2010}. The implementation of a

RFID Solution which will allow the inventory to be updated in real time and without any product movement, scanning or human intervention. 5.

Piracy
Problem: A lot of companies fall victims to software piracy and lose millions of dollars as a result. The illegal copying of the companys applications thus poses a serious threat to the continuity of the business. Solution: The use of online validation tools such a username and password if possible. Otherwise an online activation of the software should be made necessary. Also the use of anti-coping techniques should be enforced of the CD.

6.

Data Base Management Systems

Problem: With the increase in user traffic to the website of a company and carrying out various transactions, it becomes absolutely necessary for the company to use a high performance ecommerce solution or the company will not be able to meet the demands of the users. Solution: The implementation of a solution, such as Microsoft SQL Server 2008 data management.

7.

Interoperability
Problem: A lot of companies that often grew too fast found themselves in a challenging position of managing thousands of computers running multiple operating systems. This can pose a very serious problem to the security of the organization as applying updates and patches across the different platforms will be an impossible task which can lead hackers to gain unauthorized access and steal valuable data. Solution: In order to simply I.T Management and improve business continuity, the company could standardize a single operating system across the entire organization. An example is the installation of a certain version of Windows across all client computers.

8.

Asset Management
Problem: Companies often find themselves with an inaccurate licensing count for various reasons. This poses a serious problem for companies as its illegal to report an incorrect total license number (Less than the actual) to the software developer, as this will be considered piracy. Most applications used in companies are covered under a volume license key, and therefore installation can be made on unrestricted number of computers, and with no means of tracking those installations. For large companies with thousands of computers, this can be a major challenge. Solution: There are only 2 ways of going about this issue. The company could either do it manually and go over each PC and take the count, which is possible for companies with small amount of computers, but can be an impossible task for large organisations. The second solution is the use of a Software Asset Management (SAM) system which will automatically track any installations on client computers and keep track in real time. Management will be able to get updated reports from the system at any time. An example of such solution is Microsoft Software Inventory Analyzer.

9.

Lack of Communication Channels

Problem: The lack of a centralised repository for individuals to share their work with each other will reduce the efficiency in meeting the demands of the various business units and divisions. Companies with this scenario miss out on a lot of creative work that can be shared between employees in various regions and offices. Solution: The creation of an Intranet based portal, which will allow all employees to access and share their work, find information on the various business units and the latest news in the company. Such a solution can be implemented using Microsoft Office SharePoint Server.

10.

Spam Emails

Problem: 1. In certain situations spam emails can become a major problem. Some companies reported that some of their employees received over 250 Spam emails in a single 24 hours {Microsoft
Website. Online. Available from http://technet.microsoft.com/en-us/library/cc512675.aspx . Accessed on June 25}. This means that at least 25% of the employees team is wasted on

cleaning his/her inbox, and this is a significant efficiency loss for the company. Solution: The implementation of an Anti-Spam filters to the companys email server. Several solutions exist to fight and stop spam emails before even reaching the mail server. An example of such a solution is GFI Mail essentials Spam Filter, or XWALL for Microsoft exchange.

Issue Details (Disparate Legacy Systems):

Reasons & Effects Maintaining and upgrading disparate systems is one of the most difficult challenges CIOs
face today. Disparate systems are often difficult to upgrade and maintain and modernizing these applications is often a struggle. This in turn leads to making the company unable to rapidly respond to market demands. A typical environment for such problems are found in large companies running complex heterogeneous IT systems which have been running in production for a long time{Federico
Zoufaly. (2002). Issues and Challenges Facing Legacy Systems. Available: http://www.developer.com/mgmt/article.php/1492531/Issues-and-Challenges-Facing-Legacy-Systems.htm. Last accessed 26 June 201}. Most legacy systems are also disparate systems with individual databases

and allow for minimal integration with other applications. These systems often become more problematic than useful. Below are some of the reasons why that happen:

Legacy systems often run on obsolete (and usually slow) hardware, and spare parts for such computers may become increasingly difficult to obtain. If legacy software runs on only antiquated hardware, the cost of maintaining the system may eventually outweigh the cost of replacing both the software and hardware unless some form of emulation or backward compatibility allows the software to run on new hardware. These systems can be hard to maintain, improve, and expand because there is a general lack of understanding of the system; the staff who were experts on it have retired or forgotten what they knew about it, and staff who entered the field after it became "legacy" never learned about it in the first place. This can be worsened by lack or loss of documentation. Integration with newer systems may also be difficult because new software may use completely different technologies. The kind of bridge hardware and software that becomes available for different technologies that are popular at the same time are often not developed for differing technologies in different times, because of the lack of a large demand for it and the lack of associated reward of a large market economies of scale, though some of this "glue" does get developed by vendors and enthusiasts of particular legacy technologies { Wikipedia. (). Problems With Legacy systems. Available:
http://en.wikipedia.org/wiki/Legacy_system#Potential_problems. Last accessed 25 June 2010}

Possible Solutions
Companies can try one of the following solutions when faced with a legacy system that is no longer able to support the business: 1. Upgrade the current system: - The company could opt to upgrade the current legacy software to meet the current needs. However, this solution presents a serious challenge which is keeping the functionality of the system intact during the upgrade. Also finding qualified developers to code in an old language that is no longer used in modern applications becomes increasingly difficult. 2. Rewriting the legacy system from scratch: - Rewriting the current legacy system could create the functionality required by the company, however the risk of failure associated with any large project lessens the chance of success {Federico Zoufaly (2002). Issues and Challenges facing legacy systems. ONLINE Available
from http://www.developer.com/mgmt/article.php/1492531/Issues-and-Challenges-Facing-Legacy-Systems.htm

approves major costs associated with a project that will only serve to lower the maintenance costs rather than add new functionalities to the business. 3. The implementation of an Enterprise Resource Planning Solution. - This solution is usually the best way to integrate all the companys systems and is the easiest to manage. This solution will be discussed in greater detail in the next section.

.Accessed on June 26} Furthermore, Management rarely

Case Study
Company Background: Previously known as Deutsches SportFernsehen (DSF), SPORT1 is a privately owned German
television channelwith headquarters in Ismaning, near Munichwhich broadcasts sports programmes. The Web site www.sport1.de is one of the most popular sports portals in Germany, with more than 26 million visits and 1.37 million unique users a month {Microsoft. (2010). Broadcasting
Company Cuts Costs by 15 Per Cent with Business Management Solution. Available: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=4000006903. Last accessed 25 June 2010}. One of the main competitive advantages of SPORT1 is technology. Reacting to changing

audience preferences is one of the companys main priorities.

Issue Details:
SPORT1 was using several disparate solutions, some developed in-house while others were supplied by small vendors. Each of the systems had its own database and was managed separately, with minimal interoperability with the other applications. This setup became a problem for the company to continue changing quickly with the audience demands and was difficult to maintain. They needed an integrated solution that would offer all the functionalities required to handle its core television business.

Solution:
SPORT1 had a choice between upgrading the current systems or implementing an Enterprise Resource Planning (ERP) solution. After further research, they realized that they cannot upgrade the existing system because it will require the restructuring of the entire business process. Therefore, the right decision was to implement an ERP solution. The company went ahead with the implementation of Microsoft Dynamics AX ERP Suit. The solution was adapted for the companys needs and included the following unique modules along with financial and other back office modules:

- Programme Managementhelps SPORT1 manage programme items such as live events, documentaries, and reports. - Media Managementmanages the media content, in physical and digital format. - License Managementsupports the license procurement process and is used to capture and track the rights associated with a programme. - Programme Planningcreates and manages programme plans for multiple channels. - Promotion Planningprovides functionality for inserting on-air promotions that can be invoked from within the Programme Management, Media Management, and Programme Planning modules. - Trailer Planningadds functionality for inserting programme trailers. - Secondary Event Managementallows the administration and planning of Secondary Events, used for inserting logos and banners. This is done through specific functions in the Programme Planning module.{ Microsoft. (2010). Broadcasting Company Cuts Costs by 15 Per Cent with Business Management

Result:
The implementation was a success, SPORT1 had an integrated system across all departments and used by all the staff in all areas of the business. The company was able to continue being flexible and meet changing business needs. Inaddition to the above mentioned benefits, the ERP solution presented SPORT1 with the following: Labour and IT Costs Are Cut by 15 Per Cent

The automation of many processes through ERP, allowed the company to cut down on resources. Reporting and Decision making have improved

The availability of data from across all the business units has allowed the top level management to make informed decisions. The data available is also more accurate than before and thats mainly due to the presence of a single database instead of the multiple databases presented earlier. Furthermore, the system also provides the flexibility to allow for programme changes at very short notice {TechNet. (2006). Security MVP Article of the Month. Available: http://technet.microsoft.com/enus/library/cc512675.aspx. Last accessed 25 June 2010}

Adapt to changing business needs

Due to the nature of ERP solutions, the current setup is flexible enough to allow for future changes and addition of further modules as the company grows further. This gives the administrators the ability to make small changes themselves and adapt quickly to changing business needs.

Summary
Companies are faced with a lot of challenges when it comes to the various Information system needs. Top level management needs to understand the risks of doing nothing about the challenges they face in IS { Govindan Marthandan, Chun Meng Tang,
"Information technology evaluation: issues and challenges", Journal of Systems and Information Technology, Vol. 12 Iss: 1, pp.37 55}. For some companies it could mean losing their

competitive advantage, while for others it could mean going out of business. In most likelihood however, upgrading Information systems and resolving any issues arising with it proves to be more helpful to the business as opposed to doing nothing. As mentioned in the case study, the company SPORT1 was able to keep up with changing audience trends and continued providing their audience with the latest technological means of watch the channel and maintained their competitive advantage.

References
1. Govindan Marthandan, Chun Meng Tang, "Information technology evaluation: issues and challenges", Journal of Systems and Information Technology, Vol. 12 Iss: 1, pp.37 55 2. Eich, M.. (2010, May). IT Security Trends: A Look Ahead to 2010. Illinois Banker, 95(5), 13. Retrieved June 26, 2010, from ProQuest Central. (Document ID: 2044915211). 3. Wikipedia. (2007). RFID Uses in Inventory systems. Available: http://en.wikipedia.org/wiki/Radio-frequency_identification#Inventory_systems. Last accessed 25 June 2010 4. Ethan, C. (2006). businesslink. Available: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1078659894&type=RESOURCE. Last accessed 25 June 2010 5. Microsoft Website. Online. Available from http://technet.microsoft.com/enus/library/cc512675.aspx 6. . Accessed on June 25} 7. Microsoft. (2010). Broadcasting Company Cuts Costs by 15 Per Cent with Business Management Solution. Available: http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=4000006903. Last accessed 25 June 2010 8. Federico Zoufaly. (2002). Issues and Challenges Facing Legacy Systems. Available: http://www.developer.com/mgmt/article.php/1492531/Issues-and-Challenges-FacingLegacy-Systems.htm. Last accessed 26 June 2010 9. Nadeem, A. (2003). Integrating Disparate Applications: Issues and Methods. Available: http://www.informit.com/articles/article.aspx?p=30654. Last accessed 25 June 2010 10. Wikipedia. (). Problems With Legacy systems. Available: http://en.wikipedia.org/wiki/Legacy_system#Potential_problems. Last accessed 25 June 2010