Monday, September 20, 2010

Why do we need IT Auditing?

During first few sessions of MIS class, we were discussing on IT Auditing. But what is IT Auditing and why do we need it?  
The increased usage of IT has been further enhanced and witnessed by its wider adoption in commerce, industry, education and health, as well as in mainstream daily life since 1965. During the period, Malaysian government had actively embarked on several IT projects that were involved in computerizing government departments, including the Royal Malaysian Police, Royal Customs and Excise Department, and Dewan Bahasa dan Pustaka. Our one of his kind Prime Minister, Tun Dr. Mahathir Mohamad, had taken a big step in year 1996 when Multimedia Super Corridor (MSC) was launched in an effort to achieve Malaysia’s Vision 2020. With his mission and vision  that Malaysia will be a fully developed nation by 2020, he continued to provide a platform enabling an environment for further promoting the development of the IT industry.
However, off late, many organizations and companies in Malaysia are facing major information systems (IS) security threats such as intrusion, spamming, negligence, and misuse and abuse of information technology (IT) resources. These abnormalities and security risks pose a great challenge for most businesses when it comes to protecting and safeguarding business processes and vital information assets. The reasons for security concerns are primarily due to lack of sufficient and effective IT standards and controls over IT risks in organization business processes. Thus, auditing of IT systems based on established international standard is a practice that should be established and regulated in all companies in Malaysia to ensure that such IT controls are in place and functioning efficiently and effectively.

Sunday, September 19, 2010

Should SMEs embrace technology to expand and compete globally?

 The Government’s move to transform Malaysia into a knowledge-based and high-income economy is transpired in the 10th Malaysian Plan which among others, places strong emphasis on innovation and technology to drive the country’s growth.
As Malaysian Small Medium Enterprises (SMEs) have a significant presence and role in the Malaysia economy as there are more than half a million of them, recognizing critical function that technology breeds innovation is very crucial. At the recent United States-India Business council, Washington DC, it is agreed that innovation is an important tool for business to leapfrog into the overseas market. Through innovation the company is able to differentiate its products from competitors, enhance product quality which gives the company competitive advantage, reduce production and operation costs and at the same time increase earnings over the long term.
One of the discussions in MIS class, I learned that technology and innovation working in parallel. Thus, SMEs will be able to strategies their business plans to serve customers more efficiently and effectively. I believe, compared to other Asian countries, SMEs in Malaysia still lack in technology area and there is a need for improvement.  Otherwise SME will not be able to expand and compete globally.   

Saturday, September 4, 2010

I was born in a business family background and never come across to my mind that one day I need to know what is “IT” and how this “IT” thing could help me to excel in my career. All the time, I’m very much amaze with those people who have IT background and how they can understand and enjoy all those IT “jargons”. Unless and until I was assigned to be part of the team who involved in developing a communication system right from loan approved till loan disbursed. This happened when I was working with one of the prestigious bank in Malaysia. The experience really opened up my eyes that anyone can be “IT expert”; understand and know to use “IT jargons” as long as the person has open mind and willing to learn anything in this world. Nothing can stop a business person to become an IT person within one night like what happened to me. I was thankful to IT as with the experience that I gained during the project had given me opportunity to climb one step ahead of my career at that time.


Currently I’m taking MIS subject as one of my EMBA programs and through the study of MIS, I have not only learned useful knowledge in a great variety of skills but also have come to the realization concerning human knowledge whereby any human mankind can solve his/her target problems most efficiently and effectively through a comprehensive application knowledge in the related fields. One of the instances which I learned in the class that really interest me is “ information concept”. The concept of information in an organizational sense is more complex and difficult than the frequent use of this common word would suggest. Every society, no doubt, is an information society and every organization is an information organization. Therefore, information is a basic resource like materials, money and personnel. Information can be considered either as an abstract concept (ideas) or as a commodity, usually in the form of letters and reports. Essentially, therefore, information has become a critical resource, just like energy, both of which are vital to the wellbeing of individuals and organizations in the modern world.

Like energy and politics, technology is changing the ways in which information is captured, processed, stored, disseminated and used. Information, therefore, like any other resource in an organization, should be properly managed to ensure its cost-effective use. It is an ingredient that is vital to good management and if properly managed, should rank in importance with the organization's personnel, material and financial resources. In an organizational context, it is increasingly being recognized as a resource independent of the technology used in manipulating it.

The implication of this realization is the further recognition that information is the cohesive element that holds an organization together. It is also about the value of the information presented would lead to actions that management takes as a result of using that information. In an organization, the functions of management can be grouped into five areas: planning; decision making; organization and co-ordinating; leadership and motivation and control. Obviously, the emphasis given to each area varies from manager to manager and is especially dependent on the level of the manager in the organization. There are clear differences in information requirements between a manager at the operational or transactional level, such as transport supervisor, and a manager at the tactical level, such as accounts or sales manager, or at the strategic level, such as managing director/board of directors. At the highest (strategic) level, structured, formal MIS may actually be counter-productive, for at these levels informal MIS and external influences become increasingly important.

To be successful, an MIS must be designed and operated with due regard to organizational and behavioural principles as well as technical factors. Management must be informed enough to make an effective contribution to system design, and information specialists (including systems analysts, accountants and operations researchers) must become more aware of managerial functions and needs so that, more effective MIS are developed. Management do not always know what information they need and information professionals often do not know enough about management in order to produce relevant information for the managers they serve. There is no doubt that better communication between management and information professionals and a wider knowledge by both groups of MIS principles would greatly facilitate the task of developing relevant and appropriate information systems. It should be noted, however, that there is no simple checklist of essential features which, if followed, will automatically produce the perfect MIS. What is required is an awareness and understanding of key principles and functions so that the design, implementation and operation of the MIS is the result of informed decisions and judgement rather than random development without regard to real organizational requirements.

As I may conclude that MIS is the lifeblood of any organization. Both public and private sectors must be committed to seeking formal or organized information before taking decisions. Today's managers must be careful, as they can become inundated with only marginally relevant facts rather than be presented with concrete and absolutely useful information. This situation can be avoided if a functional MIS unit is put in place.