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Current Information Technology Issues

Current Information Technology Issues. Norbert Mika NJ Mika Consulting Inc. norbert@njmconsulting.com. Agenda. Current hot issues SOX ISO-TS 16949 “IT Doesn’t Matter”, Nicholas Carr Security Types of breaches What can be done? Current Technologies. Role of IT.

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Current Information Technology Issues

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  1. Current Information Technology Issues Norbert Mika NJ Mika Consulting Inc. norbert@njmconsulting.com

  2. Agenda • Current hot issues • SOX • ISO-TS 16949 • “IT Doesn’t Matter”, Nicholas Carr • Security • Types of breaches • What can be done? • Current Technologies

  3. Role of IT • To provide the systems and technological infrastructure to support improvements in operational efficiency and responsiveness

  4. IT Should be Engaged In… • Process and Product Design • Analysis and Design Tools • Knowledge Management • Production Systems • Equipment controls • Scheduling • Simulators • Infrastructure • Data Communications Networks • Database Systems • Intranet, Intranet and Extranet, EDI • Disaster Recovery • Administration and Management • Productivity tools • Supply Chain Management • Decision Support Systems • IT Focused Education

  5. Challenges Resources Competition ITDepartment Customer Demands Shifting Priorities Regulations Production drivers (tactical vs. strategic)

  6. Sarbanes-Oxley Act of 2002Public Company Accounting Reform and Investor Protection Act • Affects publicly traded companies in the US • Resulting from cases of corporate fraud • Monitors auditors and company executives • Adds controls to keep statements of assets and revenues honest • Designed to bolster the confidence of the investing public • On March 30, 2004, the Canadian Securities Commission regulations were in force in most provinces. This covers best practices in corporate governance, annual reports and continuous disclosure.

  7. IT and SOX • 2/3 of IT managers believe they only need to update their documentation to be compliant1 • 45% said changes will be in contract management and supply-chain systems • 35% said changes will be in improving spending analysis and invoice reconciliation processes • None of those surveyed were going to spend money on IT • Other surveys2 showed that most agree IT must play an integral role in meeting SOX regulations by providing the systems and support necessary 1 Aberdeen Group 2 Hackett Group and Gartner Financial Services

  8. ISO-TS 16949 • ISO Technical Specification aligns American, German, French and Italian automotive quality systems • Specifies quality requirements for design/development, production, installation and servicing of automotive related products • Includes component of maintaining good customer service • Focuses on continuous improvement • Put together by International Automotive Task Force (IATF) and various national trade associations

  9. What does SOX and TS 16949 have in common? • Adds accountability • Adds fiscal challenges • Requires good IT Infrastructure • Examples of how external pressures are creating challenges to the IT departments

  10. IT Doesn’t Matter “IT has become a commodity. Affordable and accessible to everyone, it no longer offers strategic value to anyone.” Nicholas Carr, Harvard Business Review

  11. IT Doesn’t Matter • Carr suggests: • Spend less • Follow, don’t lead • Focus on risks, not opportunities • Needless to say, Carr spurred much debate with his paper

  12. Security • Backup • Disaster Recovery • Authentication • Authorization • Computer Crime

  13. Examples of Computer Crime • Theft • Illegal software • Viruses • Denial of Service • Network Eavesdropping • Scanners • Password Crackers • Sniffers • Spoofing • Backdoors • Internal

  14. Preventing Computer Crime • Identify and protect assets • Implement appropriate physical security • Implement user security • Deter programmers • Review logs • Protect network communications • Prosecute criminals

  15. Advances in IT • Business intelligence/knowledge • Wireless world • Convergence • Portal • Virtual meetings

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