Expository Essay about Information Technology

Information technology for business. Company name – Nestle

This assignment illustrates information security breaches with the help of recent articles and news. However, in this report we will study about business or company uses IT, the importance of information technology in business survival, requirements of information technology for applying in business-like, planning, designing, equipment, etc., business uses information technology for internal or externally, the benefits of information technology in the business, type of risks by the information technology in the business and maintaining and monitoring of international technology in the business.

Introduction:-

Nestle is a multinational company that deals in the food and beverage industry. Nestle was funded in 1866, by Henri Nestlé in the Vevey, Switzerland. The first product of the company was a combination of sugar, milk, and flour with a good formulation which was named Farine Lactee. However, this product was first used on a baby who could not tolerate his mother’s milk. Nestle came to Australia in 1906 and the first factory was made in South East Queensland. The purpose of the company is to improve the quality of life and to make the healthier world. Furthermore, for customers’ health, the company provides quality, safe, and perfectly nutritious foods to meet the physiological needs of the consumers and provides different types of tests. For the proper running of the business, the company needs information technology for some factors like planning, designing, manufacturing, cost, etc., So information technology plays an important role in the Nestle company. It is the process of storing information and data, retrieving, transmitting, and manipulating data in computers, frequently in the circumstance of a business or enterprise. Approximately in this era all businesses and companies use information technology to store previous data and information for more profits and for better running of the business.

Need of IT in business:-

In this advanced world, every company needs information technology and Nestle also uses the information technology. However, there are many tasks that are done by the use of IT. To use long-term business opportunities Nestle focused on using present information technology in the Australian market. To get smooth operations and increase the sales by civilizing its efficiency of packaging company take help of the information technology. Through the use of information technology, the company got various new technological capabilities. The company uses the information and ideas of other companies which can be found on the internet for making new products more innovative and to add new features to products. Nestle takes the help of its website for calling attention to customer-related information, the company used advanced information from IT means to make its strategy grow around the world. One privacy policy was made by Nestle in Australia which kept the personal information of the customer secure. The information system is used to create value, create trust among customers, ensure that the highest standards are met throughout the organization, recruit of right people and ongoing training and development, and continue to maintain its commitment.

Importance of IT for business survival:-

Information technology is the main part of all companies. However, IT systems lead companies to better profit and help to save important information which can be important in the present and future, also helps to make a good relationship between the company and consumers. Nestle has an extensive portfolio, in this digital era, a company depends on the information system and technologies as we do supply chain networks. Implementing and maintaining is not only the responsibility of the specialists of the company, they also have to develop new solutions to connect consumers with the company. Any business can get several types of benefits from the use of technology for protecting financial data, intimate executive decisions, and other exclusive information that leads to many advantages. However, it also helps to keep the important information and ideas of the company away from other companies or competitors. Nestle’s system gives the vital edge to critical or most complex functions of business covering all things to manufacturing, human resources, finance, and sales. The use of information technology makes the company more flexible, which provides business with fast action ability for speedy variation in the market environment, at the same time maintaining high standards of execution and internal obedience. Nestle information technology teams carry out the unnecessary cost and complexity and hard problem solutions.

Use of IT in business (internally, externally):-

Every company needs a good information system Nestle also uses information technology for effective working. However, Nestle uses internal as well as external information, internally is like, employees, and externally is like suppliers & consumers. Some organizations are more externally-oriented drawing on publications, universities, consultants, customers, etc. Others are more internally-oriented, like making exclusive experiences and understanding which competitors can’t match. However, information which is collected by the research was done with the help of employees at Nestle Middle East and also from other resources like the internet, case studies, and articles. The company also consults with the concerned employees from time to time, who share their comments and feedback. Nestle work with its employees to assemble detailed social plans to alleviate the impact of the reform for the people concerned.

To minimize the problems and increase efficiency Nestle uses the following information technology systems:-

    1. Enterprise resource planning(ERP)
    2. Manufacturing executive system (MES)
    3. Product lifecycle management (PLM)
    4. Supply chain management (SCM)

Enterprise resource planning: It regulates and organize information system, combine all departments and functions into one computer system, and put together and automate lots of business practices.

Functions of Manufacturing executive system (MES):- Resource scheduling, Product quality, Management for overall equipment effectiveness, Order execution and dispatch, and Production analysis.

Product lifecycle management (PLM) is the course of managing the whole lifecycle of a product from the beginning, through engineering design and manufacture, to the service and disposal of manufactured products.

Product lifecycle of Nestle: Sustainability by design, Identifying and addressing environmental hotspots, Mandatory rating system, Environmental life cycle of products, managing environmental sustainability, Promoting access to data.

Nestle is also dedicated to adding $80 million to be spent on consulting, maintenance, and upgrades like, Reducing overstocking, Data sharing, Keeping track of customer orders, Enables group buying of materials.

Benefits and advantages of IT in business:-

Ans. Any business can get several types of benefits from the use of technology for protecting financial data, intimate executive decisions, and other exclusive information that leads to many advantages. However, it also helps to keep the important information and ideas of the company away from other companies or competitors. Nestle’s system gives the vital edge to critical or most complex functions of business covering all things to manufacturing, human resources, finance, and sales. The use of information technology makes the company more flexible, which provides businesses with fast action ability for speedy variation in the market environment, at the same time maintaining high standards of execution and internal obedience. Nestle focuses on rearranging parts of its IT to get more benefits from existing technology hubs in Spain and other locations. However, this speed up its digital transformation and there is more quick response to technology change. The company aims to access wider digital skills and to benefit from IT innovation. These actions would also improve Nestlé’s operational success. Over the next 18 months, this reform could decrease of up to 500 IT positions in Switzerland.

Risks in business by the use of IT:-

Management of Nestle faces many problems before having a sound management information system like, Avoid serious customization, the contribution of the right persons from the start, low understanding of workers to the new system, Failure to integrate various modules, Training employees throughout the project, At first project decide not to use SAP’s supply chain software because that module was brand new and appeared to be risky. For using personal information there are privacy policy strict rules which users have to follow to use the information, however, this was the main issue for the company and this issue also happens when the company operates through its social networking sites. To get customer information from third parties company has to follow the customer credit applications. In Australia Nestle have more than 5 laces of suppliers in the distribution process, it’s become too hard to manage the information database of suppliers and it becomes messy and complicated. To overcome this issue company started upgrading the quality of data. Furthermore, the company started maintaining its IT system with new software like SAP, which provided many changes in the company’s processing. The taste of LC-1 was liked by the consumers in France but research shows that consumers didn’t repurchase yogurt because DONONE product tests better. There is massive competition faced by the company from organized and unorganized fields. Rising prices of raw materials and fuels increased the cost of packaging and manufacturing. Training or user education is another problem the IT function faces when maintaining and upgrading this current infrastructure.

Maintaining and monitoring of information technology:-

Maintaining IT:-

Maintaining is to take care of the present technology, and to update and modify the past technology with more efficient technology. However, an impact analysis is performed, code and other parts of the IT system are modified, testing is performed, and a new version of the IT product is released for better and more efficient working of the system. Training and other daily actions which are used to provide support also come under maintenance. Some main IT maintenance activities are Process implementation, Problem and modification analysis, Modification implementation, and Maintenance review. Three main techniques are used in software maintenance:

    1. Program Comprehension: is used to develop tools and training.
    2. Re-engineering: is the adjustment of a software system, generally to add new functionality, or to correct errors.
    3. Reverse Engineering: is used to make a new system with improved functioning and adapt to the hardware and software quality limitations.

Monitoring of IT:-

Monitoring is the regular observation and recording of activities taking place in a project or program. It is a process of normally collecting information on all features of the project. Business activity monitoring is the use of technology to analyze critical prospects and hazards in an enterprise to maximize profitability and optimize efficiency. Nestle was the first international food company to organize a satellite-based monitoring system in 2018. However, the 100% palm oil supply chain was monitored all around the world from the sky. With the help of satellite monitoring company can act rapidly and effectively, the company can see if there is something erroneous situation, and the company is more translucent. The company considers that there is strong internet monitoring of our ethics through corporate auditor’s methods. Furthermore, there is a more developed quality assurance system for areas like food safety and the environment.

Conclusion:-

    1. https://www.slideshare.net/openinnovation/visions-missions-of-fortune-global-100/53-NestleVisionTo_bring_consumers_foods_that
    2. https://www.nestle.in/aboutus
    3. https://australianassignmenthelp.com/nestle-case-study
    4. https://www.nestle.com.au/careers/our-business/technology
    5. https://www.nestle-esar.com/careers/experience_professional/information-technology
    6. https://www.ukessays.com/essays/information-technology/develop-a-knowledge-management-strategy-for-nestle-information-technology
    7. https://www.nestle.com/media/pressreleases/allpressreleases/nestle-reorganization-global-information-technology-activities
    8. https://www.slideshare.net/abrsimple/nestle-62543881
    9. https://www.ukessays.com/essays/marketing/strategic-business-management-and-planning-of-nestle-marketing-essay.php

Multimedia Essay

The various shared resource materials have presented a detailed insight into the birth, development, and changes in multimedia and how it continues to refine and influence today’s communication landscape and human interaction activities.

Multimedia is defined as media content that is made by combining two or more forms of media such as text, audio, images, animations, and videos, which are delivered electronically and can be consumed and enjoyed using electronic information processing devices. Audiences may view multimedia presentations on-site, using projection devices and media players. Moreover, we also have multimedia games and simulations that can happen in the physical environment or online network.

Multimedia is broadly divided into two categories. Linear multimedia content, such as cinema, often progresses without needing any navigational control from viewers while non-linear content, such as video games, uses interactivity from users.

Since its introduction, multimedia content has continued to be widely used in various areas and industries. Creative industries heavily use multimedia for a variety of purposes. Multimedia is widely used as a tool in commercial marketing and advertising strategies while entertainment media relies on multimedia content in keeping relevant to audiences and discovering and introducing new and exciting techniques and ways of bringing media content to viewers.

Multimedia contents are now also becoming an innovative and effective tool in education. Because of multimedia, computer-based training courses are now becoming a trend, academic references are now accessible online, and learning is now easy because interactive content that aims to educate can be now easily found such as edutainment and video tutorials.

Multimedia is also now a big part of journalism. Broadsheets and news outlets are now utilizing multimedia for fast and wider reach. And with mobile phones with many features at hand, journalists, and even the so-called mobile journalist, can now cover and report the news. This, along with its applications to other fields such as engineering, mathematical and scientific research, and medicine, shows the role and importance of multimedia in the society that we know today.

Concepts and terms related to multimedia include hypertext, a text that links the users to the pool of interconnected information. Hypermedia, on the other hand, works in the same principle but employs multiple forms of media such as graphics, images, sounds, and videos and can be presented together. The best example of hypermedia is the World Wide Web. Both hypertext and hypermedia allow users to interactively navigate the multimedia product.

Multimedia materials also allow interactivity, or the two-way interaction with either in-between multimedia contents, multimedia devices, or multimedia users, as opposed to non-responsive, one-way communication media such as TV and videos. Input pertains to any activities or actions that come from the users. Interactivity outputs include displayed images and texts, printouts, motion video sequences, and sounds. Interactivity is necessary for a multimedia product to be usable because control is given to the user to navigate and find the way around.

This interactivity feature of multimedia is heavily featured in the World Wide Web. Evolution in the World Wide Web has also changed the interactivity dynamics and characteristics of this platform. The worldwide web that we have access to right now has undergone major changes and development across the years. New features and functionalities are being introduced and the existing ones are either removed or refined every time the web evolves.

Web 1.0 allows computers to form networks with each other. The main highlights of the web during this phase are search engines such as Yahoo, which are still static and read-only back then. Interaction among internet users was introduced during the Web 2.0 era when “read-write” websites such as blogs and social media were developed. Web 2.0 facilitated content creation, sharing, and collaboration among users. The most prominent websites introduced during this phase are Facebook and Wikipedia and websites that allow inquiry-seeking and answering and discussion forums.

Web 3.0 is known as the semantic web and where the mobile web emerged. Information is enriched and standardized systems, languages, publications, and tools are developed. Various data items are combined together to create context and give meaning to the information set. Various 3D virtual and interspatial applications also emerged. The experience becomes more audience-center and offers a wide range of functionalities and features. On the other hand, there has been discussion on what Web 4.0 could be with some experts comparing it to the human brain because of the much smarter, user-centered, and rich information it may offer to audiences.

One of the offshoots of the emergence and recent development of the web is the proliferation of social networking sites and their users. Social media facilitates the creation and sharing of information, and ideas from one person to many and is done through virtual communities and networks. Social media is filled with content generated by users such as text messages, digital photos, and videos. Social media is designed and maintained by social media organizations and these websites or applications allow users to be creative and specific in making their profiles and identities as much as they want to appear on the platform. Moreover, social networks are forms within the online space where individuals, with their user profile, can connect with other individuals or groups.

Unlike paper-based media and traditional electronic media which operate in a mono-logic transmission model or one source to many receivers, social media operates in the dialogic transmission system or many sources to many receivers. Social media has 13 types, these are blogs, business networks, collaborative projects, enterprise social networks, forums, microblogs, photo sharing, products/service reviews, social bookmarking, social gaming, social networks, video sharing, and virtual networks. And with the advent of smartphones and tablet computers, accessing social media now becomes easier.

Since its introduction to internet users, the number of social media users around the world continues to escalate every year. As of 2019, there are about 3 billion social media users. Most popular networks include Facebook, Youtube, messaging apps such as WhatsApp, Facebook Messenger, WeChat, and the photo-video sharing platform Instagram.

Information Technology Gives a Platform for Organization, Efficiency, and Easy Accessibility

Introduction

Information Technology is the way forward for any organization that is trying to stay ahead in the market. This applies to all the departments within a given company. This may range from production, human resource, and even accounts. It gives a platform for organization, efficiency, and easy accessibility. The above advantages and many others will be explained in the later sections of the essay. (Zvi, 1994).

Advantages in the Human Resource Department

Information technology through the internet facilitates communication between two parties who may be separated by miles and miles. This means that even if the head of the Human resource department is away, he or she can be able to convey information without leaving the confines of their location. People in the department can also be able to access ideas that are not available in the company. This means that the company can become more unified as there will be coordination through these various departments.

IT will enable the HR department to save on time because it will be able to focus more of its energy on the generation of ideas rather than input, processing, and storage of data. This will all be done by IT. The advantage of this is that it will help boost the productivity of the department because members of the team will see that they do not have to spend too much of their time manually and yet have very little to show for it. This increases their morale and will therefore increase profits for the company.

Before this system will be put in place, individuals think that it will improve their working hours and they would not have to spend most of their time commuting from home to work. On the contrary, people will now spend more of their time working especially where pay is directly related to the input. This is because it will be possible to work at home and employees who have their work with them at home can hardly avoid the temptation to work for long hours.

The human resource department looks into the development of new ideas that motivate workers in the whole company. This means that the department must examine the product of the various departments that exist in a company. This means that it is possible to monitor progress within various categories through IT and hence come up with better strategies to boost sales in the Company. (Chris, 2006)

The company could also experience some problems in its running especially when private information that is highly sensitive is accessed. This implies that some information or company secrets can be accessed. This will bring about a drug in the profits gained by a given company because this will eliminate any competitive edge which a particular industry had over others; their trade secrets have been discovered.

Conclusion

IT will enable the Human resource department to improve its efficiency as a result of many reasons. Some of these include; coordination of interdepartmental activities which is a crucial role for any human resource department. IT will also increase the productivity of individuals because they can save on time and resources that they would have spent when trying to store or access data. It will also cause an increase in the generation of ideas because communication will be enabled through the internet. Lastly, it will facilitate information transmission between management in the department and other members of the team.

Reference

Chris, F. (2006): Diffusion of Information and Communication Technologies to Business; Handbook of Information Systems, Economics and Information Systems.

Zvi, G. (1994): Productivity, R&D, and the Data Constraint; journal of American Economic Review.

Enterprise Profitability and Information Technologies

Refined conceptual framework

Refined conceptual framework

The study required data on the levels of adoption of IT to be collected in order to determine whether its increase or decrease leads to a subsequent increase or decrease in the level of payoffs or profits from the business venture. Different organizations adopt technology at different times or at different capacities hence the effect or outcome differs considerably. Those that easily adopt it are more successful compared to those that do not easily adopt them.

The dependent variable in the current study would be the level of information technology adoption in different firms. The dependent variable is usually altered by the researcher during the study. Depending on the level of adoption of the information technology by the organizations, the level of performance and success in terms of profitability would be assessed. The performance of the organizations would be the dependent variable in this case and it would be studied to determine its relationship to the level of adoption. The dependent variable will be a measure of what is to be collected in the field and it is believed that it is greatly altered by the other variable which is the independent one.

The mediating variable in this study is technology since it explains the relationship between the dependent and independent variables of the hypothesis in this research. The reason why different levels of payoff are expected for different levels of adoption of information technology is because of the presence or effects of technological advancements. Other companies that have not adopted information technology in their practices and business ventures do not experience the benefits that come with its adoption. Previous research has suggested that the adoption of an electronic marketplace has an effect on the transaction cost and market structure (Lee & Clark, 1996).

Information technology is important since it improves the effectiveness of the organization’s transactions hence reduces the costs incurred during such activities during purchases. However, this must be coupled with good management strategies in order to realize the full potential of IT adoption.

Hypotheses

  • H1: Level of adoption of Information Technology has an effect on the performance levels in corporations in terms of payoffs.
  • H0: The level of adoption of Information Technology does not have an effect on the performance levels in corporations in terms of payoffs.

The variables or constructs in this hypothesis are likely to yield a positive relationship because the level of information technology adoption may determine the level of performance in terms of payoffs in the organization. The benefits from IT to organizations have been studied and it has been determined that it profits the companies if well adopted and in the corporate market, it has been used to improve the effectiveness of their transactions (Loh & Venkatraman, 1992). Other similar studies have also concluded that IT can be used successfully to trade items online (Clarke & Jenkins, 1993).

Different companies have different levels of adoption of information technology since not all firms readily embrace technology as it advances. The world, including the business world, is in an ever-changing place and firms might have their different perceptions of it. Those that readily embrace and adopt it are in a better position in facing competition than those that do not. Such firms experience greater profits and improve performance. With the different levels of adoption, depending on the flexibility of the organization, the companies will experience different levels of benefits in terms of payoffs from the information technology. This would be reflected in the number of profits obtained due to the adoption of information technology and in the effectiveness of the services.

Summary of what was learned

It has been learned that information technology is important in every organization if the firm needs to experience greater profits. The benefits from IT go beyond the tangible form since some are intangible and unrealized by many corporations. The attempt by some firms to measure profitability using economic analysis only gives estimates of the profits but cuts off a large portion of the benefits from IT.

It can also be learned that electronic market systems are very much adopted by many corporations and they are meant to make the firms improve the effectiveness of their transactions. Many companies and corporations have introduced an electronic market system to the industry and have succeeded in managing it for the good of the company. However, others have not succeeded in using it or have not successfully been adopted in other areas due to the slow nature of adoption. This means that there are a number of barriers to this venture.

Various authors have attempted to analyze the reasons for the failure of the electronic systems to be adopted successfully. This was made possible through the assessment of the risk of the financial implication of the process of adoption. Suggestions to address this issue were then provided by the authors.

The importance of IT has also been realized in terms of trade whereby some firms have realized greater successes in online trading. This is whereby firms seek to sell their commodities over the computer network without actually taking their goods to the marketplace. This system has been successfully introduced in Australia where livestock trading schemes have been developed to trade livestock over the internet. The use of IT to trade livestock in Australia has been successful and this is an encouragement to any businessman who feels that there is a product that he would want to trade without actually taking it to the market place (Neo, 1992).

It has been learned that the electronic market has been used severally for the purpose of competitive gains. However, little has been done to describe the reality of situations in the event that an electronic market is introduced and implemented. An assumption that underlies this venture is that strategic IT is put in place to enable the firm to compete in the business world. Little has also been done to study how the government uses information technology initiatives to alter the industrial structure for the purpose of regulation.

The paper that addressed the case study of an industry in Singapore was meant to provide a real-case scenario whereby an electronic market was used to alter the market structure of pig trade. This was done in order to shape the market to ensure efficiency and to deal with the social issue. The results describe the impacts of the electronic market and various lessons from the case study have been highlighted. The research looked at whether the electronic market could be used to alter the current market structure.

It has been learned that information technology greatly contributes to the organization’s agility. When an organization invests more in information technology and information systems, it would experience greater agility. However, it should be noted that IT is not always advantageous since it might prove to be a hindrance or an impediment to the organization’s agility.

For an organization to succeed in the management of information technology resources and realize agility, it must develop superior firm-wide capabilities in information technology. The measure of the company’s agility in information may be in three forms, which include the information technology infrastructure adopted, the companies’ spanning capabilities with reference to information technology and its proactive stance in accordance with information technology.

It has been realized that for firms to successfully compete in a highly dynamic marketplace, companies have to adapt and align their information technology systems and strategies frequently. Various issues such as the need for a fine-grained approach had not been addressed in previous studies. This approach is useful for the assessment of the specific areas of misfit between the organization’s information systems capabilities and its competitive strategies.

Information technology is observably and evidently a weapon of choice when it comes to the business fight. Organizations that readily embrace technology have a much greater chance of experiencing greater success in terms of performance and profitability than those that do not. Information technology aids in making work much easier and hence reduces some of the losses involved in transactions.

As a firm embraces technology, it targets a greater proportion of potential customers since most move with technology. Those companies that do not change their systems with the changing environment would be lucky to sell their products to the lesser majority consisting of the conservative lot. This would mean fewer profits or even losses. Firms that embrace technology and integrate it into their systems are more likely to compete in the current market than those that do not. The less fit in the industry is always eliminated because only the fit survive.

References

Clarke, R., & Jenkins, M. (1993). The strategic intent of on-line trading systems: A case study in national livestock marketing. Journal of strategic Information System, 2(1), 57-76.

Lee, H., & Clark, T. (1996). Impact of electronic marketplace on transaction cost and market structure. International Journal of Electronic Commerce, 1(1), 127-149.

Loh, L., & Venkatraman, N. (1992). Determinants of Information Technology Outsourcing: A cross-sectional Analysis. Journal of Management Information Systems, 9(1), 7-24.

Neo, B. (1992). The implementation of an electronic market for pig trading in Singapore. Journal of Strategic Information Systems, 1(5), 278-288.

The Most Important Trends in Information Technologies

Introduction

The contemporary world lives in an era of rapid development of information technologies. Over the last several decades, IT became one of the most important and influential spheres around the globe with a major impact the other industries, driving their growth, progress, and development. The evolution of IT has resulted in the creation of multiple branches, tendencies, and trends, some of which are extremely promising and may change the world in the immediate future. The discussion and analysis carried out in the present paper will focus on three of the most important trends in the sphere of IT today. The selected trends are the internet of things, artificial intelligence, and virtual reality.

These specific topics were chosen because they are highly influential and capable of providing new experiences and providing new opportunities for both average users and professionals in many areas; additionally, all of these trends may change the sphere of IT itself and cause shifts in the specialties that are popular in the field today. Also, for further discussion, a noteworthy problem will be identified in one of these selected trends: the issue is corrigibility, or the question of control over artificial intelligence, which is a quickly advancing contemporary technology.

Top Trends in the IT Industry

As a fast developing sphere of knowledge, IT has multiple trends that are recognized as promising for the industry. However, virtual and augmented reality, artificial intelligence, and the internet of things are some of the most commonly discussed ones.

Virtual reality

VR and AR are viewed as extremely broadly applicable trends that would benefit a wide variety of industries such as healthcare and medicine, the military, education, and entertainment, to name a few. The rationale for choosing this particular trend for the description in this report is that today, the future of digital technology is seen as tightly connected with the advancements in AR and VR (Garner, 2017). With the appearance of VR devices within the last few years, the technology has drawn considerable attention as a trend in the IT industry (Forbes Agency Council, 2017).

However, regardless of its quickly spreading popularity and the interest that it attracts from many consumers, the technology itself does not seem to demonstrate much advancement. Currently, it is mainly employed in the spheres of entertainment and education, and its use is highly limited by a series of disadvantages that need to be addressed if it is to attain the anticipated hypergrowth (Forbes Agency Council, 2017).

VR and AR are recognized by many business professionals as a trend that will not pass anytime soon; it is believed to have a particularly promising future in advertising and marketing, where some of the earliest adopters have already managed to employ this technology for various products and promotional campaigns (Forbes Agency Council, 2017). Also, the technology is widely used in the entertainment industry, where it has been successfully employed for video gaming. VR and AR have also been used in education for helping engage students and create an immersive environment for learning, and in psychology for re-creating traumatic situations and helping people with phobias and PTSD cope with their conditions (Wakefield, 2016)

Artificial intelligence

As recently as a few decades ago, AI used to dwell mainly in science fiction stories and films. The prospect of intelligent computers was definitely attractive and fascinating, but seemed unattainable. Today, the developers of computer technologies are nearing the moment when they can turn fantasy into practice by creating programs that can learn and improve their skills and performance (Knight, 2017). This process is based on a system of positive and negative reinforcements where the programs memorize the positive outcomes and attempt to find solutions to various context-related problems in order to achieve a positive result (Knight, 2017).

For now, reinforcement learning has proved successful for machines whose purpose was to win intellectual games against human players. In the future, this capacity of the current versions of AI is expected to be used in many different spheres and activities. In time AI could potentially impact many aspects of technological progress and many different areas of contemporary society, so that AI is clearly an IT trend deserving attention in this report and in the future.

Some of the first professional applications of AI learning through reinforcement will be industrial robotics and automated driving. Such machines will be able to correct their own errors and improve their performance independently without producing a negative impact on the working process or slowing it down (Knight, 2017). Other aspirations and plans of modern AI developers include the creation of programs not only for learning languages by means of using voice recognition but also for generating natural-sounding spoken language. The trend of AI learning has been driven by developments in the field of neural networks, especially the creation of dueling networks that interact with one another, thus learning from the generated data and improving their performance (Knight, 2017).

While the development of artificial intelligence is moving forward, so do fears and worries concerning the moral aspects of AI alongside it. The potential for the machines to go out of control is recognized as a very realistic possibility and not just as a science fiction scenario that people have seen too many times on TV (Reese, 2016).

The internet of things

One of the largest and the most commonly discussed IT trends in the contemporary world is the internet of things (IoT). It is predicted to become one of the mega-trends that will initiate what is known as the “third wave of the internet” (“The internet of things explained: Making sense of the next mega-trend,” 2017). The IoT works based on ubiquitous connections between everyday consumer objects that enable them to create a network where all the appliances and devices people use on a daily basis can communicate with one another as well as with their owners.

Such networks are anticipated to be able to connect the devices in individual homes (microwaves, stoves, thermostats, lights), the elements of the city infrastructure (traffic lights, parking meters), and personal wearable items (smart glasses, watches, fitness bands) (“The internet of things explained: Making sense of the next mega-trend,” 2017). This trend was chosen for this report not just because of its potential usefulness but also for its potential transformation of everyday life that would accompany it, not to mention how it would fundamentally affect our overall understanding of the internet and connectivity.

The major practical obstacles that prevented the development of the IoT were the cost of connections and bandwidth (which have significantly decreased over the last several years), the lack of robust WiFi connections, and the absence of functional smartphones and other end-user connective devices to establish communication between all the other objects in the network. Needless to say, these obstacles have by now largely disappeared so that the establishment of the IoT is a possibility today. For this reason, the trend toward establishing the IoT is currently experiencing rapid growth driven by consumers’ readiness to embrace it and to purchase various smart devices capable of connecting with one another via the IoT.

An Important Emerging Issue in a Trend and What It Means in Context to the Industry

The three IT trends chosen for the discussion in this report are rather interesting but are also significant in that they could potentially change the entire way of life of the society embracing them. However, one of them – the AI trend – faces an important and pressing issue that has been recognized as a serious problem slowing down development and making it potentially dangerous to move forward with AI development without finding solutions to this problem first. The selected issue is that of corrigibility –people’s ability to control and change machines powered by AI. In practical terms, this is the problem that prevents the aforementioned grim science fiction scenarios from becoming reality in the daily lives of human society.

In order to work and fulfil its purpose, an artificial intellect would have to be stimulated and rewarded. In other words, it would need to have values to care about that would align with its major function. Since machines and computer programs do not have a human (or even non-human) sense of right and wrong preventing them from doing things that are considered immoral, they would require some kind of reward in order to reinforce their further completion of tasks (Reese, 2016).

However, since in this way, the successful completion of a task would outweigh all other considerations, it is possible that a machine may choose unethical approaches to the achievement of its goal. In addition, switching the program or a machine off will be interpreted by it as an attempt to prevent it from completing its goal, and as a result, the machine will do everything to avoid being switched off. This issue is also known as the shutdown problem (Jakobsen, 2015). The only way to prevent this would be to assign a reward for switching off that would be higher than that for task completion; however, in that case, the machines would have no stimuli for working at all (Soares, Fallenstein, Yudkowsky, & Armstrong, 2015). As a result, a conflict between people willing to control, correct, and direct intelligent computers and the machines themselves is practically unavoidable.

Conclusions

Contemporary technologies are developing very rapidly, and new and promising trends emerge almost every year. The possibilities that used to belong solely to science fiction stories are now an approaching reality. Some of the present and emerging trends in the world of IT are very interesting to explore. Three of the most commonly discussed IT trends that were selected for this report are virtual reality, the internet of things, and artificial intelligence. The latter trend is also known to face the pressing problem of corrigibility and shutdown, which serves as a major barrier to the further advancement of the technology or its application. Progress does not stop, however, and within the next few decades, it will be the responsibility of IT professionals to the new generation to find solutions to the existing problems and continue the development of these technologies.

References

Forbes Agency Council. (2017). Web.

Garner, T. (2017). . Web.

. (2017). Web.

Jakobsen, S. K. (2015). The Shutdown problem. Web.

Knight, W. (2016). . Web.

Reese, H. (2016). Artificial intelligence: The 3 big trends to watch in 2017. Web.

Soares, N., Fallenstein, B., Yudkowsky, E., & Armstrong, S. (2015). . Web.

Wakefield, J. (2016). . Web.

Risk Management in Information Technology Projects

Informational technology (IT) is among the most rapidly developing industries. At the same time, it is characterized by a high failure rate. A study by Baccarini, Salm, and Love explores the reasons behind poor performance and offers several suggestions based on its results.

According to the summary given in the article, the risk management process in the IT industry does not differ significantly from its iterations in other areas. Thus, such steps as establishing the context, identification, analysis, evaluation, treatment, monitoring, and communication apply to IT projects without the need for adjustment. The authors also identify 27 common risks in the IT industry by reviewing the existing literature and group them in seven categories: commercial and legal relationships, economic circumstances, human behavior, political circumstances, technology, and technical issues, management activities and controls, and individual activities (Baccarini, Salm, and Love 288).

To simplify further and generalize the findings, the authors suggest two broad categories for differentiating the processes and risks associated with the categories. The particularities of project organization such as the project’s scope, human resources management, quality control, budgeting, and timeframe are generally described as project management processes. These issues do not differ across the projects and thus require generic managerial knowledge and skill to operate.

The technical and technological details that depend on the project’s nature are defined as production processes. These usually require in-depth understanding and expertise from the management team and necessitate the involvement of technically proficient consultants to assist in managerial provisions. Notably, only one of the categories outlined above falls entirely into the latter group while the other six reside mostly within the project management domain.

The data obtained from structured interviews allowed the researchers to come up with an outline of project risks in the IT industry. First, according to the responses, 60 percent of risks in question have high consequences. This qualifies the IT segment as a high-risk environment.

Second, five of the most common risks were, in decreasing order, personnel shortfalls (insufficient number of employees leading to inability to complete a project), unreasonable schedule and budget (budgeting constraints or unrealistic time restrictions), unrealistic expectations (distorted perception of the expected result by the customer or other stakeholders), incomplete requirements (inability of the client thoroughly to describe the shape of a final product), and diminished window of opportunity caused by late delivery of software (the need to arrive at the market before the competitors, determined largely by tight time management) (Baccarini, Salm, and Love 290).

Of particular interest is the fact that two of the identified risks – personnel shortfalls and unreasonable budget and schedule – are confirmed in existing literature as the most common, while others are defined as unlikely. Specifically, the diminished window of opportunity is not considered a serious risk mostly due to the difference in dynamics of the IT market at the time of research. The responses also identified the preferred strategies of risk management, which could be boiled down to a single approach in approximately half of the possible risks.

The other half required more than one strategy and saw an unequal distribution of suggestions (Baccarini, Salm, and Love 293). Most importantly, the analysis revealed that in most cases, the risks, as well as the strategies, fall within the project management category, which means they can be mitigated using generic approaches.

The research outlines key weaknesses in risk management for the IT industry and offers valuable suggestions for improving the situation. The original findings should be approached with caution, considering the fluent and dynamic nature of the field and the outdated sources used by the authors. Nevertheless, with minor adjustments, the suggested approach can be utilized to minimize risks not only in the IT industry but also in the bordering fields.

Work Cited

Baccarini, David, Geoff Salm, and Peter Love. “Management of risks in information technology projects.” Industrial Management & Data Systems 104.4 (2004): 286-295. Print.

Information Technologies Compliance Audits

Introduction

Over the past few decades, the use of Information Technologies (IT) has been extremely prevalent (Kayrak, 2014). Many sectors, including private and public institutions, are increasingly adopting IT in their operations driven by the needs to augment efficacy and effectiveness.

Nonetheless, the embracing of IT in the management of information in public and private sectors raises numerous concerns pertaining security, confidentiality, reliability, and integrity of information (Kayrak, 2014; Wongpinunwatana & Panchoo, 2014; Héroux & Fortin, 2013).

Furthermore, the failure of companies to carry out IT auditing has been disastrous in the past leading to great losses and even collapse of firms (Weiss & Solomon, 2011).Therefore, it is of paramount importance for sectors that adopt IT to carry out regular IT audits.

It is generally agreed that IT auditing is a function of accounting since it independently examines and assesses operation systems and records while evaluating “organization’s internal policies and activities” (Weiss & Solomon, 2011, p. 6).

IT auditing is broadly categorized into organizational, compliance, application, and technical auditing (Weiss & Solomon, 2011). This paper carries out a research on IT compliance auditing. IT “compliance auditing pertains to ensuring that specific guidelines, laws, or requirements have been met” (Weiss & Solomon, 2011, p. 7).

IT compliance auditors, therefore, are concerned with testing or evaluating whether IT controls are designed acquiescent with management policies and set procedures. In IT auditing, compliance is based on internally set procedures and guidelines or on externally established regulations that IT infrastructure should be in line with to enhance effectiveness and efficacy while preventing information related security breaches (Kayrak, 2014; Weiss & Solomon, 2011).

Literature review

According to Kayrak (2014), IT is increasingly becoming a central aspect of organizational operations and, therefore, information management is vital. He noted that annual global investments in IT go beyond $3.6 trillion and are likely to increase drastically in the future. Nonetheless, data breaches continue to be major sources of concern for both public and private institutions. Furthermore, the increasing levels of noncompliance affect all countries regardless of the level of their development.

The findings of his study on the Turkish courts of account revealed that the levels of IT compliance were extremely low. A major part of his recommendations included the need for IT audit methodologies that have SAIs guidelines as well as internationally accepted standards. Therefore, IT audit methodologies should incorporate both compliance testing and substantive testing. IT compliance, according to the definition of his paper, pertains with the adherence of an organization to laws, regulations, and contractual arrangements that are externally imposed criteria and internal policies.

IT compliance audits, therefore, are carried out on IT infrastructures to test their compliance with set guidelines. There are various IT auditing bodies with different auditing guidelines. As such, compliance audits are based on specific and generally agreed guidelines. The Turkish courts, which were the subject of his study, could adopt specific guidelines to enhance effectiveness and the ease of IT compliance audits.

He suggested, among others, the TCA guidelines as the source of external compliance that Turkish public organizations (Turkish courts) should adopt. The TCA guidelines adopt a three-step procedure that includes audit planning, assessing system control, and monitoring audit results. IT compliance auditors should adhere to these procedures to enhance competence and effectiveness in checking the courts’ compliance (Kayrak, 2014).

According to Nkwe (2011), the increasing impact of IT in auditing and the need to manage information has led to the revolution of IT auditing from Electronic Data Process (EDP) to the current sophisticated methods. Besides, noncompliance has resulted in accounting scandalous scenarios that have had adverse effects on organizations (Nkwe, 2011). In the developing world, where IT-based accounting is still relatively newer, CAIS is more prone to manipulation than the traditional manual accounting. Therefore, adopting IT auditing require high levels of internal and external compliance to prevent organizations from risks.

The study revealed that IT auditing firms are still not yet fully developed and are still establishing auditing departments (Nkwe, 2011). In addition, few organizations have adopted internal policies and frameworks and are striving to be compliant. Nkwe (2011) suggests that IT auditing should be adopted fully as opposed to the current partial adoption. His paper uses Botswana, a developing country, and focusses on (among other IT related issues) IT auditing and levels of compliance in private and public institutions. He notes that Botswanan organizations are increasingly adopting and depending on IT-based operations.

However, great concerns arise from the fact that IT audits, including infrastructural compliance audits, are yet to be properly established exposing organizations to IT related breaches and information management risks.

Demonstrating the lack of readiness for IT compliance audits in Botswana, Nkwe (2011) revealed that major audit firms such as KPMG, Enerst & Young, and Deloitte are yet to put in place effective IT auditing departments. In addition, The Institute of Internal Auditors in Botswana is endeavoring to adopt improved IT auditing (Nkwe, 2011). Without properly established IT departments, carrying out compliance audits is hampered.

It is worth noting that when Nkwe’s (2011) study was done, ineffective organizational frameworks and the lack of research hindered IT auditing. Nkwe (2011) noted that insignificant academic research on IT auditing had been done in Botswana and, therefore, IT compliance audits could not be carried out effectively.

Moreover, Nkwe (2011) noted that globally, IT auditing has become a significant aspect of general auditing and is likely to take over auditing in the near future. Botswana and other developing countries should ensure that IT auditing is effectively adopted.

Security issues are major concerns that deter many public and private organizations from adopting some of the IT related operations such as cloud-computing services (Rasheed, 2014). One of the major concerns in the developed countries is the absence of mechanisms of auditing in some aspects of IT operations. Rasheed (2014) investigated IT auditing issues in cloud computing environments paying key interest on auditing requirement compliance and infrastructural security. He realized that IT infrastructure security compliance has been a major concern for many information users. Some of the infrastructures that need constant compliance auditing include user domains, workstation domains, LAN domain, WAN domain, and remote access domains.

Rahman et al. (2014) observed that information management is vital. The study also noted that IT compliance audits have specific goals that differ from performance auditing.

The need for IT compliance audits

Managing information is a vital aspect in private and public sectors. As such, IT auditing is highly necessitated to ensure smooth operations while preventing information insecurity, unreliability, and integrity problems. In addition, IT auditing is vital in ensuring that confidential information is not leaked to unauthorized people.

Understanding the need and the meaning of IT compliance

IT compliance auditing is a central part of IT auditing, which involves the determining of whether companies follow set guidelines pertaining integrity in information systems. The term compliance has varied definitions (different organizations and industries have their ways of defining and viewing what is and what is not compliant) (Weiss & Solomon, 2011). Nonetheless, IT compliance can be categorized into two broad groups, including external and internal compliance. An internally compliant company adheres to its own rules (set based on policies) while externally complaint firm is able to demonstrate the desire/need to adhere to guidelines set by external organizations (Weiss & Solomon, 2011).

Companies that do not comply with internally or externally set rules are exposed to huge risks. Cases of noncompliant companies collapsing are evident. Companies such as Enron and WorldCom faced financial fiascos leading huge revenue losses and insolvencies due to internal and external noncompliance (Kayrak, 2014).

IT noncompliance exposes companies’ confidential information to unauthorized users and can lead to huge damages. For instance, TJX Companies, Inc. had various IT compliance breaches, including “failure to maintain proper security control, specifically citing lack of firewalls, wireless security, failure to patch vulnerabilities, and failure to update antivirus signatures” (Weiss & Solomon, 2011, p. 15). The IT noncompliance made the TJX stakeholders vulnerable leading to what is considered one of the biggest credit card breaches.

Weiss and Solomon (2011) categorizes the repercussions of noncompliance as follows

  1. Court fines and imprisonment.
  2. Legal fees resulting from infringement contained within set regulations.
  3. Brand damage and lost revenue as consumers abandon a business/organization.
  4. Negative effect upon stock price, hurting shareholder value.
  5. Increases in cost of capital.

It is evident, thus, that noncompliance has huge consequences that can adversely hurt both public and private organizations. Therefore, firms should constantly carry out IT compliance audits to ensure that all the vulnerabilities are exposed and addressed.

It compliance audit guidelines, procedure, and rules

Compliance guidelines are similar to the overall IT audit guidelines, which according to Kayrak (2014) are “aimed at guiding the auditors on how an IT audit is planned, performed, and reported” (p. 18).

In carrying out an IT Compliance audit, compliance auditors should begin by understanding the organization and the established IT system and its implications on information management. Further, risk assessments, determination of audit strategies, and the preparation of audit programs should be done during the initial stages of the compliance audit. The second phase of the compliance audit should comprise carrying system control assessments.

The auditors should check how compliant the firms control systems are to the set rules and procedures. The effectiveness of the control systems should be a key area of focus. The last stage of the IT compliance audit will involve the reporting of the audit findings. Blaming for noncompliance should be attributed to the relevant individuals in the noncompliant sectors when the IT compliance results are given.

It is worth to understand what compliance auditors based their activities on and what regulatory requirements are for a firm to be IT compliant. In the US, for instance, the regulatory requirements are properly set to include different geopolitical levels comprising the state, federal and international jurisdictions (Weiss & Solomon, 2011). Therefore, firms and organizations should check their levels (using legal guidance where necessary) to understand which regulations are pertinent and applicable.

Moreover, Weiss and Solomon (2011) indicated that organizations rely on different avenues, including texts of laws, administrative codes, external/internal auditors, industry associations, and third-party guidelines to check on IT compliance. For the US federal government, Weiss and Solomon (2011) showed that The Federal Information Security Management Act, The US Department of Defense Requirements, and other legislative acts provide detailed compliance guidelines that IT compliance audits should base their actions while carrying out audits on government institutions.

Internationally, IT compliance audits rely on country or region based guidelines, as international IT audit bodies do not provide globally acceptable, comprehensive, and exhaustive guidelines (Kayrak, 2014).

In Europe, for example, IT compliance auditors rely on the provisions of the European Court of Auditors and National Audit Office of the United Kingdom, which do not have exclusive IT guidelines, unlike the US that provide purely technical IT auditing requirements.

The future of IT compliance audits

Studies have revealed that information management is critical and can make organizations succeed or collapse (Héroux & Fortin, 2013; Weiss & Solomon, 2011; Nkwe, 2011; Bani-Ahmad & Dalabeeh, 2014). Public and private organizations, therefore, are working hard to ensure that their IT infrastructures are compliant with the necessary guidelines to avoid information breaches.

Cyber-crimes and cases of information mismanagement are in increasing trends (Weiss & Solomon, 2011). Companies and government institutions, therefore, should find better ways of ensuring that confidential information does not reach unauthorized people.

In the attempts to improve information security, IT audit firms are likely to invest in research and development in the future. Therefore, IT compliance audits are likely to be more prevalent and embraced by organizations in the future (Nkwe, 2011). Additionally, guidelines that are more stringent are likely to guide future IT auditors making IT compliance audits more effective.

Conclusion

The significance of IT compliance audits is increasingly becoming more apparent. Many organizations, including institutions in private and public sectors, are embracing IT-based operations. As such, information is becoming more important and, therefore, mismanagement of information increasing insecurity issues.

IT compliance audits are guided by various auditing guidelines with various countries adopting specific regulatory frameworks. Moreover, organizations are adopting internally and externally set guidelines to audit the compliance of their IT infrastructure.

Some of the IT infrastructures that increase information security vulnerability include user domains, workstation domains, LAN domain, WAN domain, and remote access domains. Compliance issues still raise concerns in many countries regardless of their levels of development. Lack of preparedness, insufficient research, insufficient legal knowledge, the lack of clarity on compliance guidelines are some the major issues that increase noncompliance. Cyber-crime and information security breaches are in increasing trends creating needs for research and development for IT auditing.

Recommendations

  1. IT compliance auditors should uphold highest levels of professionalism and demonstrate competence since what they do is extremely critical to survival of organizations.
  2. The private and public sectors should invest in IT auditing, including auditing for compliance..
  3. More research should be done on IT auditing to counter the escalating cases of information insecurity and cyber-crime. Developing countries should carry out more academic research to fill the existing IT audit and compliance related knowledge gaps.
  4. International IT auditing guidelines should be clearer, comprehensive, and up-to-date to enhance compliance auditing.
  5. All organizations should treat IT compliance audits as vital and pertinent part of auditing.

References

Bani-Ahmad, A. A., & Dalabeeh, A.-R. K. (2014). The Effect of Applying the Information Technology Audit Standard # 21 on the Risk Related to ERP System in the Jordanian Companies. Global Journal of Management and Business Research: Accounting and Auditing, 14(1), 24-32.

Héroux, S., & Fortin, A. (2013). . Journal of Information Systems, 27(1), 189-217. Web.

Kayrak, M. (2014). Information Technology Audit and the Practice of the Turkish Court of Account. Alphanumeric Journal, 2(1), 013-022.

Nkwe, N. (2011). State of Information Technology Auditing in Botswana. Asian Journal of Finance & Accounting, 3(1), 125-137. Web.

Rahman, A. A., Al-Nemrat, A., & Preston, D. (2014). Sustainability in Information System Auditing. European Scientific Journal, 3, 458-472.

Rasheed, H. (2014). Data and Infrastructure Security Auditing in Cloud Computing Environments. International Journal of Information Management, 34(3), 364-368.

Weiss, M., & Solomon, M. G. (2011). Auditing IT Infrastructures for Compliance. Burlington, Massachusetts: Jones & Bartlett Learning.

Wongpinunwatana, N., & Panchoo, P. (2014). Creating Self-Efficacy In Internal Auditors For Information Technology Audits: An On-The-Job Training Perspective. International Journal of Management & Information Systems (IJMIS), 18(3), 213-222.

Privacy Policies in Information Technology Firms

Introduction

Data stored in computers need to be secured to prevent its leakage to unauthorised people. Firms, both public and private, must develop policies to prevent privacy intrusion as a way of securing their customers and employees’ data. This paper examines the privacy policies that are applied by IT firms to guarantee data privacy for their clientele and workforce.

Privacy Policies in IT Firms

Establishment of Firewalls and Passwords

More IT firms today are using computers to store customers and employees’ details. The storage of data in computers increases the risk of unofficial access by criminals. It is important to note that computers are also prone to attacks by malware if proper policies are not in place. Notwithstanding, the law requires public and private IT organisations to protect their stakeholders’ data at all cost (Bhadauria et al. 2011). To secure the data from unauthorised access, most IT firms maintain full-time employees who ensure that the Local and Wide Area Networks are safe. The IT departments work in line with the security policies served to them by the company. One of the tactics used to protect the network and computers from attacks is by creating a firewall. The firewall bars intruders from accessing data stored in computers. Any attempt by an intruder to use the company’s network is repelled to the extent that only the permissible individuals have the privilege of accessing other persons’ credentials. Besides, computers are protected from unauthorised access using authenticated passwords, which are only known to authorised individuals.

Physical Inventory Protection

In addition to the protection of the firms’ network, the IT firms must maintain the physical security of the computers. Physical security is important since it helps to protect the privacy of the data stored in the computers. Additionally, physical protection ensures that important data regarding the firm remains inaccessible by intruders. To guarantee physical security, most IT organisations store computers containing sensitive information under lock and key where only the authorised staffs have access to them. The authorised staffs must follow the security procedures outlined by the company to combat insecurity of any data stored in the devices. IT firms install CCTV cameras inside the rooms in which the gadgets are stored, as well as their surroundings, to track the entry of unauthorised individuals (Bhasin 2007). A security team is usually in place on a full-time basis to repel any attempt by unauthorised individuals to access the site.

Malware Prevention Mechanisms

Another measure that IT firms employ to enhance cybersecurity is malware prevention, which is achieved by installing antivirus software on its system. In most IT firms, the malware prevention policy entails installing detectors on the entire systems. Such malware detectors often notice any form of cyber threat and warn the IT security team of an imminent danger (Ertaul, Singhal & Saldamli 2010). In some firms such as Google Inc., malware detectors are designed in a way that they warn customers of any possible threats. Such warnings often help users to refrain from navigating through websites that are deemed precarious, thus preventing possible threats to the clients’ security. Data in transit is secured using Transport Layer Security system, which ensures that the information is encrypted during its shipment. Such encryption ensures that unauthorised people cannot understand the messages between Google and its customer.

Conclusion

Conclusively, other than the prevention measures described above, IT companies also have an incident management policy, which specifies the measures to be adopted in case a security issue occurs. Most companies have an incident management team, which is available 24 hours per day (Bhasin 2007). Incidences revolving around customer information are prioritised, followed by those that involve the company’s data. If an emergency incident occurs, the incident management team analyses it and develops immediate mitigation measures. The emergency response team is composed of IT experts and security personnel who receive continuous training to prepare them for emergencies.

Reference List

Bhadauria, R, Chaki, R, Chaki, N & Sanyal, 2011, ‘A survey on security issues in cloud computing’, IEEE Communications Surveys and Tutorials, vol. 7, no. 3, pp. 1-15.

Bhasin, M 2007, ‘Mitigating cyber threats to banking industry’, The Chartered Accountant, vol. 50, no. 10, pp. 1618-1624.

Ertaul, L, Singhal, S & Saldamli, G 2010, ‘Security challenges in cloud computing’, Security and Management, vol. 1, no. 1, pp. 36-42.

Information Technologies: Virtual Machines

Abstract

The present has discussed virtual machines in IT contexts, their benefits, as well as their drawbacks or limitations. Drawing from the discussion, it is concluded that virtue machines provide immense benefits to firms in the IT industry, though more work needs to be done to ensure the security and reliability of these machines.

Although the concept of virtue machines first came into the limelight during the 1960s when technology firms led by IBM attempted to create a system that could avail concurrent and interactive access to a mainframe computer, its development has been lukewarm until some few years ago when the inherent benefits of the concept became more pronounced (Ali & Meghanathan, 2011).

Today, the interest in virtue machines has grown tremendously as firms in the information technology (IT) come to terms with the unending possibilities presented by the concept. The present paper discusses virtual machines in IT contexts, their benefits, as well as their drawbacks or limitations.

A virtual machine has been described in the literature as an efficient and isolated imitation of an actual machine (Bradbury, 2008), or a replica of the original physical machine which provides users with numerous computing possibilities that appear to be running directly on the physical computer (Kotsovinos, 2011).

Virtue machines are divided into two main categories (system and process) based on their utilization and level of correspondence to any physical machine, with available literature demonstrating that a system virtual machine avails a complete system platform which sustains the execution of a complete operating system, while a process virtual machine is designed to run a single system and hence can only support a single process (Pearce, Zeadally, & Hunt, 2013).

Some of the important virtualization tools used to run virtue machines in contemporary times include Virtue Network User Mode Linux (VNUML), VMware Server, Virtual Box, Qemu, and Xen.

While VNUML enables multiple Linux-based operating systems (guests) to be run as applications within the normal Linux system (host), hence providing users with the capacity to run and manage multiple virtual Linux machines on a single piece of hardware, VMware allows a physical computer to host several virtual machines with different operating systems.

Additionally, while the Virtual Box tool deploys virtual machines destined to desktop computers and enterprise servers, Qemu manages and executes virtual machines under Linux or Windows (Ali & Meghanathan, 2011).

In terms of benefits, available literature demonstrates that “virtualization is often touted as the solution to many challenging problems, from resource underutilization to data-center optimization and carbon emission reduction” (Kotsovinos, 2011, p. 61).

Additionally, virtual machines also provide users with the capacity to (1) isolate processes and functions using available infrastructure, (2) share resources as is the case in cloud computing, (3) enhance the manageability of the enterprise infrastructure, (4) minimize costs without compromising quality of service, (5) allow a considerably large infrastructure to be run in a more flexible manner, and (6) enhance developer productivity and minimize time to market, which is important in today’s fast-moving business environment (Ali & Meghanathan, 2011; Kotsovinos, 2011).

Lastly, in terms of drawbacks, many users worry about the security of virtue machines as there is a possibility that the framework could be used to deliver malware to client personal computers with the view to stealing important data or information (Bradbury, 2008; Pearce et al., 2013). According to these authors, users of virtual machines are also not sure about how reliable it is to put all of their virtual machines on one physical box, as a failure of the hardware or components would obviously result in massive data losses and other disastrous outcomes.

Drawing from this discussion, it can be concluded that virtue machines provide immense benefits to firms in the IT industry, though more work needs to be done to ensure the security and reliability of these machines.

References

Ali, I., & Meghanathan, N. (2011). Virtual machines and networks – Installation, performance, study, advantages and virtualization options. International Journal of Network Security & Its Applications, 3(1), 1-15.

Bradbury, D. (2008). Virtually secure? Engineering & Technology, 3(19), 54-55.

Kotsovinos, E. (2011). Virtualization: Blessing or curse. Communications of the ACM, 54(1), 61-65.

Pearce, M., Zeadally, S., & Hunt, R. (2013). Virtualization: Issues, security threats, and systems. ACM Computing Systems, 45(2), 17-17:39.

Surveillance Cameras and Information Technologies

Introduction

While the increased use of information systems has helped to improve efficiency in business operations, it has also created new problems for organizations and information technology (IT) experts (Baltzan, Detlor & Welsh, 2012). Drawing from a study by Ross (2012), the existence of all manner of information systems and networks with unrestricted connectivity complicates the work done by security professionals to ensure confidentiality, data integrity, and availability of services to users. This is further worsened by the increased sophistication of threats to information technology systems.

Organizations, through information technology systems experts are thus compelled to make use of different strategies to manage information technology systems. This paper looks at how surveillance cameras may be utilized to help with the management of information technology systems. As noted by Vigne, Lowry, Dwyer and Markman (2011), surveillance systems can be integrated with other technologies to improve the management of information technology systems.

Surveillance Cameras and Information Technology Systems Management

Advancements in technology have led to the discovery of complex systems such as surveillance cameras and other satellite-based systems that can help to identify and locate those involved in criminal activities with ease (Reynolds, 2014). Video surveillance systems comprise of components that help to watch public as well as private places (Dufour, 2012).

Images that are captured using the cameras are later transmitted to an identified control center to be used in real-time. Surveillance cameras come in different forms and can be overt, semi-overt or covert (Vigne, Lowry, Dwyer & Markman, 2011). Overt cameras are those that are visible to the public. With overt cameras, it is possible for one to know what is being recorded by looking at the direction of the camera. Semi-covert cameras are designed in such a way that would be offenders can not easily determine the direction of the surveillance camera.

Semi-overt cameras are thus preferred for crime prevention purposes since people with a criminal intent cannot tell whether they are being recorded. As a consequence, criminals may be forced to refrain from being involved in criminal activities. Covert cameras on the other hand are completely concealed from the pubic for security reasons.

Specifically, covert cameras are used for observation purposes and because they are not visible to possible wrongdoers, they can not prevent individuals from taking part in criminal activities (Vigne, Lowry, Dwyer & Markman, 2011). Consequently, a powerful feature of covert cameras is that they can be used to help IT experts to capture records of criminals without their knowledge. The information gathered can later be used in a legal process to convict suspected offenders.

In general, surveillance systems are used to monitor activities and movement of people in order to address security challenges in private as well as public places. Certainly, the use of surveillance cameras presents those responsible for the management of information technology systems with data and information that would otherwise be difficult to come by. According to proponents, surveillance cameras are very helpful in curbing criminal activities and acts of terrorism. The data that is captured using surveillance cameras can be used to provide evidence in a court of law against a suspected offender.

There are, however, concerns among opponents that the use of surveillance cameras interferes with the privacy of individuals. This notwithstanding, surveillance cameras are used in different parts of the world for different purposes. In a study by Baltzan, Detlor and Welsh (2012), they argued that the monitoring of employee must be discussed openly to eliminate any form of suspicion and lack of collaboration. In general, resistance to the use of surveillance systems is encountered when the reason for monitoring is not properly communicated to employees. It is thus important to devise appropriate policies as far as monitoring employees is concerned.

How Surveillance Cameras Help IT Systems Management

Due to increased use of Internet Protocol (IP) Network Cameras and Network Video Recorder (NVR), current systems used for surveillance purposes have simplified the process of converting analog data to digital data for storage. As explained by Park, Leung, Wang and Shon (2012), IP surveillance software causes applications that are used to provide physical security and those designed to ensure logical security to converge.

Practically, a number of IP cameras operate on systems that use Linux making it possible for security professionals to provide additional security functions critical for the management of IT systems. Apparently, recent releases of IP cameras are designed with computer technologies that make it possible to identify, track and place objects in different categories.

The NVR can be altered into Video Management Solution (VMS) that makes use of a Personal Computer (PC) server platform. Ordinarily, this incorporates the use of PC servers and storage apparatus used to maximize the performance of surveillance systems. Improved designs of VMS present security professionals with powerful features such as video content analysis and facial recognition which help to simplify the management of IT systems.

Usually, the video records captured through VMS are securely stored in as ordinary files that can be accessed and used by IT professionals whenever necessary. Whenever a human object is detected in an area covered by an IP camera, the camera triggers an event that notifies a video server. The video server then sends instructions to a network video recorder to save the video record and proceed to analyze an on-screen image of the current video so as to identify and detect the movements of the object until it disappears from the screen.

The video server also generates data through an analysis process and passes it to a database server for storage. In general, the process of retrieving or recovering any video of interest is similar to the process of recovering files that used in digital forensics. The videos that are retrieved are later used by criminal investigators to pin down culprits. For example, in the event that criminal investigators come across surveillance cameras while investigating a crime, they must retrieve video files from the surveillance camera’s storage system for use during investigation.

Conventional forensic techniques can then be utilized to disclose the details about a particular crime that serve a very important purpose in legal processes. According to Park, Leung, Wang and Shon (2012), forensic video analysis is regarded as the scientific examination, comparison, and examination of video records in a legal process. During the analysis process, a person or something of interest in the video may be highlighted in order to gather evidence about a crime. It may involve the analysis of an individual’s behavior in the video being examined.

To ensure that surveillance cameras are used efficiently to provide crucial evidence about criminal activities to be used in legal processes, the evidence video management (EVM) methodology should be used (Park, Leung, Wang & Shon, 2012). It is a methodology that is used to securely backup archives of videos that contain evidence. EVM is used to gather data for forensic purposes from IP Cameras to NVR and is used throughout the video process right from the recording stage. In addition, EVM presents IT experts with alternative storage methods to help guard against deletion of videos that contain vital evidence. In some unavoidable circumstances, it may become necessary to overwrite or delete videos in order to create space for new videos to be stored.

While computer operating systems present IT experts with numerous tools for reinforcing security, it may not be possible to ascertain the identity of culprits. Furthermore, experienced IT professionals can easily evade security configurations and commit criminal activities without being detected. As earlier explained, the data records captured using surveillance systems can be subjected to forensic analysis in order to generate evidence for use in legal processes. While electronic control systems can help to detect misuse of electronic systems, they must be backed with surveillance cameras to provide additional information about the identity of culprits.

Conclusion

As the requirements of security become sophisticated, it is imperative for those responsible for the management of information technology systems to integrate surveillance cameras with electronic access control systems in order to create a reliable security system. The use of surveillance systems compliments electronic access control systems by making it possible for IT experts to capture images of those involved in criminal activities.

Despite the fact that concerns have been raised by opponents of surveillance systems who are convinced that the use of surveillance cameras is an infringement of the privacy of individuals, proponents are interested in having security systems that would enable IT professionals to access as much information as possible so as to conduct successful investigations that can eventually lead to arrests and compel individuals to refrain from taking part in criminal activities. To clear this conflict, it is necessary to formulate guidelines that must be followed when using surveillance cameras alongside electronic control systems for the management of information technology systems.

References

Baltzan, P., Detlor, B. & Welsh, C. (2012). Business Driven Information Systems. Ontario, CA: McGraw-Hill Ryerson.

Dufour, J. (2012). Intelligent Video Surveillance Systems. Hoboken, NJ: John Wiley & Sons.

Park, J. J., Leung, V. C.M., Wang, C. & Shon, T. (2012). Future Information Technology, Application, and Service. New York, NY: Springer.

Reynolds, G. (2014). Ethics in Information Technology. Stamford, CT: Cengage Learning.

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