Session 6 Commentary 

AGENDA

Assignment II Presentations: 

Reconsider:
   User Support & Training
   Help Desk
   Staff Training

Break

Review:
    Change Management Primer
    Risk Management
   

Discussion Questions

QnA on Assignment 2 

Assignment II Presentations

• each presentation is limited to 10 minutes with a QnA (Question and Answer) of an additional 5 minutes
• each presentation is reviewed by the audience with a short feedback form completed by every student
• the presenters get the feedback forms at the following session
• order of presentation (randomly determined by teacher using shuffled cards)
  t
• SUGGESTION: each team should limit each slide to 70 seconds or less which translates to expressing the MAJOR thought for that section.

• ___ team  1 -- Hanif Kalota, Sujata Sharma, Arattra Sivarak, Deidre Anne Young
• ___ team  2 -- Alexandra Figueroa, Beena Loharikar, Shipra Verma, Aisha Wilson
• ___ team  3 -- Nigam Dalal, Vincent Hsin, Jon Van Kuiken
• ___ team  4 -- Katie Krakowiak, Edyta Krzeczowski, Rajesh Pandya
• ___ team  5 -- Javelin Lawrence, Shawn Lenise Little, Jyothi San Juan, Beth Sliazas
• ___ team  6 -- Kimberly Aldridge, Camille Eze, Deena Fazio
• ___ team  7 -- Poorav Chaudhari, Ben Sahaphong, Catherine Taylor
• ___ team  8 -- Amit Bhatia, Deena Bhatia, Ninan Shibu, Heather Sullivan, Kshama Swamy
• ___ team  9 -- Carl Basedow, Luke Lyons, Erik Meier, Dan Mourning, Michelle Trayne
• ___ team 10 -- Natasja Linggananda, V. Ramani, Chibing Wang, Peter Wang, Aileen Hsieh 

Reconsider User Support, Help Desk, Information Center

Driven by Support Strategy

What does HELP DESK really do?

Need to define in advance (manage expectations) and measure performance

Define contact procedure
1-800-HELPME2, for example

Most prevalent models

Three tier model – all issues

Two tier model – selected/new applications

Two tier model – all issues

Driven by Strategic Intent

Response time to caller

Response time to resolve problem

Part of support process to improve application

User Support and Training

• Integral part of application design
• Must be considered and validated during General Design
• Integral to low cost on going operation of the asset
• Should be managed by User on Steering Committee
• Goal is always to Minimize Operations Stage Costs-- How?

Operations Stage Cost Minimization-- comes from superior user support and training

Why? 

• People -->> Most expensive component
• Wait time  on Problem Resolution -->> Idleness -->> impacts Productivity negatively -->> Adds to costs
• Problems erode confidence -->> resolution time is greater -->> adds to costs
• Opportunity costs rise because system is not exploited fully

How?

• System made easy to use; makes errors difficult to do
• Build in extensive HELP capability
• Supply users with job-specific training and job aids
• Training focus is on individual's job
• Aids show user how new application helps in the user's job
• Develop "user leaders" as first line of defense
• These "user leaders" are experienced people from work area and are trained first
• Always, always have a hardcopy backup of materials
• Extensive trial runs for debugging user interface and handholding users in their training
• Have user approval BEFORE roll-out 
• Establish a specific HELP desk for application roll-out that ultimately becomes part of regular HELP desk
• Track ALL problems and their resolution
• Quarterly review of all issues, resolutions. and possible need for application changes

User Leaders --

• responsible for guiding users for the first several weeks
• act as point of contact with development team
• responsible for ensuring development team fixes/responds
• coach individuals having trouble

Old Solutions for User Training

• accept implementation "problems" as normal and staff help desk
• turn problem over to Users' management
• accept the existence of bugs and respond as resources permit
• Guess What??  None are acceptable >> they destroy user satisfaction

All functions must work together for same goal

Some historic boundaries (Mental and Physical ) need to go

Need to consider how to monitor the ongoing health and return from the investment

Break

Review Change Management Primer

CHANGE MANAGEMENT PRIMER

 the need for educated executives so IT innovations are possible.  Also discusses uses of meetings /seminars for bringing execs up-to-date.  Questionable success if IT mgt has no track record -- may seem self-serving.  Critical need is to understand the firm and its industry and the competitive forces that are working.

Focus for the class -- CIO + line mgrs-- managing the POLITICAL RISKS (see C.5 above) -- means for getting buy-ins from top mgt & mid mgt through-out the firm --

definition  -- change management (the overarching concept behind risk management) -- process of  assisting people in making major changes in their work environment.  

Disruptive nature of change in a business person's life?

 Change Management Roles Involved

• Sponsor -- legitimizes the change
• Change Agent -- causes change to happen
• Target -- expected to change

4 step approach for describing / assessing change (c.)

1. describe the c.
2. assess sponsor's commitment to c.
3. evaluate support/resistance of targets.
4. assess change agent's skills

The need for CHAMPION (someone who has vision and gets it implemented 

• by obtaining the funding (work facilitation), 
• by pushing project over hurdles (interaction facilitation & work faciltation)
• putting reputation on the line (trust and integrity)
• taking on the risk of project

How IS can help?

Champion needs from IS

• information (help gather / assess info)
• resources (staff time from IS for researching)
• support (corroborate champion's statements, handle technical aspects, create plans for introduction)

End User Training

• teach concepts and understanding as well as
• teach skills and know-how/

Computer-Based Training (CAI, CMI, CBT, IPSS)

End User Training Needs (5)

1. IS concepts -- classes usually 
2. Quick start -- web browser for giving big picture
3. Refresher aids -- embedded in s/w
4. Explanation of assumptions -- embedded in s/w
5. Help in overcoming difficulties  --HELP DESKS

Review Risk Management

Risk Management 

A. Paul, Lauren Gibbons, "High Wire Acts," CIO 6/15/98, 
http://www.cio.com/archive/enterprise/061598_risk_content.html  

B. Hildebrand, Carol " A Road Map for Risk," CIO, 4/15/96
http://www.cio.com/archive/041596_method_print.html/

C.  Radosevich, Lynda and Cheryl Dahle, "Risk Management: Taking Your Changes," CIO 4/15/96, 
http://www.cio.com/archive/041596_risk_print.html

Risk Management

Highlights from Web Based Articles

A. Paul, Lauren Gibbons, "High Wire Acts," CIO 6/15/98, 
http://www.cio.com/archive/enterprise/061598_risk_content.html  
smart companies take portfolio approach -
- a mix of high risk (high potential return) 
- mid risk (mid potential return) 
- low risk (low potential return)

understand EVERY ASPECT of the risk so you know the level of risk you are taking on

should FACTOR risk into their return on investment calculations -
- some might think activity is profitable when in fact is not -- why this happens -- risk is calculated on only 1 dimension from one group's point of view -

technological risks -- MS intro of new ergonomic keyboard -- legal liability for repetitive stress syndrome

- therefore use interdisciplinary teams (h/w, legal, finan, mktg, risk mgt-- probability of failure) to calc risk & dev strategies -- h/w designed best k/b, legal drafted warning msgs, mktg promised to NOT advertise k/b as an ergonomic cure-- calc % that have a potential for repetitive stress syndrome., cost of lawsuit defense & potential judgments, etc.

- Fidelity Management Trust Co.  log of every loss > $5000 with details on incident and what ctls were put in place to get around it.
getting the right measures, understanding root causes-- learn from mistakes

   "R" is for return: Are we achieving an appropriate return for the risks we take?
    "I" is for immunization: Do we have the controls and limits in place to manage downside risk?
    "S" is for systems: Do we have the systems to measure and report risk?
    "K" is for knowledge: Do we have the right people, skills, culture and incentives for effective risk management?
    These questions, as well as a listing of best practices for each category, appear on the Global Risk page of the corporate intranet--the hope is that they'll never be far from executives' desktops and minds.

-- For joint ventures & partnerships -- grief-to-revenue ratio

B.  Hildebrand, Carol " A Road Map for Risk," CIO, 4/15/96
http://www.cio.com/archive/041596_method_print.html/

"Often a CIO is so concerned with being an advocate for a project that he or she hides the uncertainties of a project" he (finance Professor Nalin Kulatilaka of Boston University) says. .. "not only did the CIO not get blamed for bad decision making, but his credibility increased.  By translating an IS project into terms of risk and rates of return, he could speak the same language as the CFO."

By using the model of options trading-- develop a flowchart ("tree") of decisions and their possible outcomes extending into 5 years into the future.. Then, probabilities of occurrence are attached.  Then the projects are done in modules where at each stage, the risks are reevaluated and recalculated.  If the project's success now is iffy and its likely payoff is too small then the project is canned.  Some of this modeling comes from Chaos theory -- particularly 
"the butterfly effect" -- small changes can result in states totally different from the originally expected.  A butterfly fluttering in Argentina results in a snowstorm in Chicago five days later. 

example -- early users of technology face more risks  than mid users or late users of same technology and therefore must expect a much higher rate of return starting sooner because higher risks must have bigger payoffs in order to make sense.

C.  Radosevich, Lynda and Cheryl Dahle, "Risk Management: Taking Your Changes," CIO 4/15/96, 
http://www.cio.com/archive/041596_risk_print.html

presents a framework for making sure all major categories of risks are examined

1. Cost Analysis -- cost, savings, potential new revenues. -- start with demonstrating that new project's  Internal Rate of Return (IRR) exceed a set rate.

IRR is the discount rate at which the present value of the future cash flows of an investment equal the cost of an investment.  It is found by trial and error; it is the rate that occurs when the net present value of cash outflows (the cost of the investment) and the net present value of cash inflows (the returns on the investment) equal zero, the discount rate used is the IRR.   

2. Opportunity Lost: the Risk of Inaction or Failure -- weighing the cost of NOT launching a project or FAILING in attempt.
    Those costs of a potential failure are subtracted from the expectied benefits to give the true costs.

3 . Vendor Management: Buying Smart -- negotiating with vendors and managing resulting contracts.  Assessing the costs that would incurr  if vendor goes out of business, or drops its support of a product that the firm bought,

4. Developing Practices: Getting It RIght -- setting clear business objectives. conducting modular projects. shortening development, increasing user involvement. and using more off the shelf software.

5. Political Risk: Stumping for the Project -- cannot be overemphasized that a CIO must get buy-ins from peers and superiors-- particularly when system spans functional areas (e.g., ERP) -- must not just get buy-in but also reassess situation constantly.

Ranking IT Projects -- {sum of reward factor scores - sum of risk factor scores} = Project Risk Score 
   Higher the score the better.  -- list is a good place to start with risks, rewards, contract risks

D. Carol Hildebrand, "Beware the Weak Links," CIO 8/15/98.

The risks inherent in Supply Chain Managment (SCM) are explored.  The "gapping the line" risk -- causing a break in assembly line.  

Solution:  cooperative, not antagonistic partner relations where meeting common goals means sharing more information and sharing logistic workload to get the goods where they need to be when they need to be there. 

"But as chains linking suppliers, manufacturers, distributors and customers grow ever more intricate, so do the inherent risks.  One company's problem could have repercussions through a far wider array of companies and functions than ever before."  

Risks:

• acts of God,
• reconciling different cultures so agreement on SCM issues can be reached (e.g. Partner is IT poor)
• noncompliant data down/up the chain -- who's in charge?
• sharing the SC wealth so weaker partners are viable financially and technically
• information distortion (parlor game Telephone):
  • signal inflation -- forecasts on trend/signal gets adjusted again/again
  • supply fluctuations -- buying 'bargains' can send wrong message upstream
  • shortage overreaction  -- when orders partially filled then compensate in next order (phantom demand, not real
  • uneven orderings because ordering is done infrequently causing oversupply from the shocks
  • SOLUTION  order from POS info (Walmart), low cost ordering like EDI & web.
• technology  -- no phones, power -- backups -- keeping up-to-date key issue
  
  

Topics

General Business Risks:

• business environment changes
• vendor survival 
• integrating technology with existing portfolio

Ineffective use by users
    Poor Training
    Poor Procedures

 
Inability to resolve problems
    Poor Help Desk
    Poor Monitor/Control

Lack of trained support
    Poor access to user support
    Lack of trainers

Risk Management Topics

• Overview
• Risk management approaches
• Technology risks
• Management processes
• Implementation issues

Risk Management Overview - External Risks 
(some others not mentioned in readings)

• Board of Directors (legally accountable for the system's operations and outcomes)
• Fiduciary [f.] responsibility of managers (a f. holds assets in trust for a beneficiary )
• Shareholder assets (the firm c/hold the f.s or mgt as responsible for losses)
• Foreign Corrupt Practices Act (started out to make sure MNCs didn't bribe foreign govts -now its been expanded -- basically the firm is held responsible for its own mgt's actions and c/be for its consultants)
• Personal financial and criminal liability (from shareholder lawsuits and FCPA)
• U. S. Government policies inappropriately administered

Risk Management Overview - Internal Risks

• Risk is anything that can go wrong
• Murphy applies (If something can go wrong, it will)
• Ancient problem - compounded by new technology (esp. distributed processing, ERP, e-commerce)
• Year 2000 issues -- so far so good for most organizations but not out of woods yet
• Electronic Commerce

 

Risk Management Approaches

• Policies as rules to govern behavior
• Cost-benefit tradeoff
• Audit processes and plans
• Management accountable - personally
• Avoid risk - don’t go there
• Mitigate risk - prevention
• Recovery scenarios - plans
• Recovery capability - drills/skills
• Process audits - break in

• Technology Risks

  • Information corruption and theft
  • Virus attacks
  • Hackers, disgruntled employees
  • Competitors
  • Crooks
  • Physical theft
  • Problem is everywhere
  • Problems require strong solutions
  • Solutions require some level of:
  •         --Awareness
  •         --Cooperation
  •         --Discipline

• Year 2000 -- so far, so good, but story is not all told yet

 

Management Processes

• Recognize IT risks
• Policies and audit
• Standard risk review process which looks at both:

--Design issue

--Project issue

• Discipline and will
• Process to identify risks and mitigation approaches
• Process to understand impacts
• Process to develop recovery skills -- Fire Drills
• Personal accountability
• Regular communications reinforcement

Implementation Issues

• No one wants to do this!
• An insurance cost at best
• Resource drain/competitor
• No perceived present value
• Usually must force from the top
• Safety and environment usually easiest
• Executives must consider IMPACT of interruptions

  Temporarily unavailable

  Permanently unavailable

• Business operations impact
• Business existence imperiled

Questions to consider:

• What happens if network is down?
• How long can you do without it ?
• How do you plan to keep recording transactions ?
• How long can you do this ?
• When do you go out of business ?

Risk Management Tools

• Common awareness and policies
• Security environment and ongoing management
• Management process to review risks
• Management decisions to accept level of risk and costs
• Oftentimes replicate some key technologies

Managing Distributed Computing Risks

• New media - old problem
• Some technology to help
• Management needs to understand IT is another business risk to be managed
• IT CANNOT do this alone
• Risk Management is a BUSINESS ISSUE