Week 11 tutorial work The classes this week are mainly concerned with financial and performance related issues. Q1 Some initial discussion questions (write a paragraph on each of these in your submission): Why is it important for business managers (managers of end user areas) to participate in IT investment decisions?It is not uncommon for chargeback systems to result in some tensions between the IS department and business managers. What might be the cause of some of these tensions, and what should the CIO, or other IS managers do to help resolve these tensions?IT financial manage systems rarely account for shadow IT. What are some of the problems this might cause?Accounting for corporate networks can be difficult when chargeback systems are used – discuss some ways in which this might be done fairly. What might be the advantages or disadvantages of accounting for data networks as a corporate overhead? Q2 Luftman (2004) put forward a range of sample IT measurements – (see fig 13-3 below) we will use this list as a basis for some discussion. Select 2 measures that would be the most useful in a small government agency? Would these selected measures be still relevant if it was a non-government organisation? Why? Would these measures be easy to get the data on? What sort of difficulties may be evident in collecting this data? Sample Current IT Measurements Percent of employees in support, management, maintenance, and development rolesPercent of IT spending on legacy systems including cost by systemPercent of requests serviced by usersPercent of service level compliancePercent of software applications on current releasePercent of spending on top business priorities (moving the business forward)Percent of time spent on testingPercent of user participation by projectPercent projects on time, on budget, met user requirementsReturn on investment by projectRevenue per IT dollarRework cost: internal cost of rework across all IT processesTotal IT capital budget versus actualTotal IT expense budget versus actual (and by area within IT)Training hours both per IT employee and by skill level Overall—qualitative measures IT yield: ratio of projected value of IT projects to actual benefits attainedSales revenue generated by IT initiativesSpan of controlUser satisfaction survey of applicationsUser satisfaction survey resultsUser service level agreements Network: Cost per device or local area network (LAN) portLAN hardware, management cost per LAN portLAN ports supported by LAN administratorMean time to get project or modification implementedMean time to repairNetwork availability percentNetwork response timePercent utilization by line segment Data Center: Average response timeCost of service per userCosts per MIPS or combined power ratingInstalled release level of software compared with industry available releaseMemory, disk utilization statisticsPercent system availabilityPercent utilization per serverTotal on-time delivery percentageTurn around time for key batch jobs Overall IT—quantitative measures Average tenureAverage time positions are openBacklog aging: the projected dollar value of work beyond 30, 60, and 90 daysBacklog cost: the total dollar value of all work waiting to be completedBacklog in month and number of requestsCall volume or problems reported by application and root causeCost of quality: cost of cancelled projects and system failuresCost per function pointNumber of modifications to package softwareEmployees supported per IT employeeHardware, software, services, staff, overhead, supplies as a percent of total IT budgetIT employee satisfaction survey resultsIT expenditures as a percent of revenueIT expenditures per employeeIT turnover (by reason)Number of changes to designNumber of errors or defects per moduleNumber of incident reportsNumber of internal promotionsNumber of lines of code reusedNumber of open positionsNumber of telecommutersNumber of user requested changes per projectNumber of user stored queriesNumber of users requesting access to toolsOn-time completion rate of function pointOvertime per month by skill levelPercent development/support costsPercent IT budget increase/decreasePercent of applications that are custom compared with package softwarePercent of applications under service level agreementsPercent of areas using formal methods and processesRatio of contractors to employees (Fig 13-3, Luftman, 2004) Luftman, JN (2004) Managing the information technology resource: leadership in the information age, Pearson Education International, Upper Saddle River, NJ
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