INTRODUCTION Successful IT systems provide an integrated view

INTRODUCTION Successful IT systems provide an integrated view of: n 1. 2. 3. 4. Business Extend analytical capabilities to users Leverage a corporation's information and expertise Allow the seamless flowing of information across diverse business functions, business units and geographic boundaries

INTRODUCTION n Enterprises need to encompass a range of intelligence systems and analytical applications that include: q q Data warehouses and data marts Online analytical processing (OLAP) Decision support systems (DSSs) Executive information systems (EISs)

ENTERPRISE SYSTEMS n n An enterprise system (ES) - large software application that companies use to manage their operations Key way by which large organizations distribute content of all kinds to their: q q q Workforce Suppliers Customers

ENTERPRISE SYSTEMS

ENTERPRISE SYSTEMS n Enterprise systems are suited for information transactions q n They are the underlying information “factory” Enterprise systems offer the first great opportunity to achieve true connectivity q q A state in which everyone knows what everyone else is doing in the business all over the world at the same time A complex product and there are failures in implementation – technology and people related problems

DEVELOPING AGILE IT SYSTEMS n n Business agility means being prepared for change at a moment’s notice Factors to consider whenever you are developing an IT system - these are commonly referred to as the “ilities”: q q q q Availability Accessibility Reliability Scalability Flexibility Performance Capacity planning

Availability n n Availability is determining when an IT system will be available for employees to access Most companies have IT systems available 24 x 7 x 365

Accessibility n n Accessibility is determining who has the right to access different types of IT systems and information Accessibility also means who can access or manipulate the information, whether they can create, read, update, and/or delete information

Reliability n n Reliability ensures your IT systems are functioning correctly and providing accurate information Inaccurate information exists for many reasons: q q The information being entered incorrectly The information becoming corrupt

Scalability n n Scalability refers to how well a system can adapt to increased demands A number of factors can affect organizational growth including: q q q The market The industry The economy

Flexibility n n A single system can be designed in a number of different ways to perform exactly the same function When choosing which design to implement, think about the system’s “flexibility, ” or the system’s ability to change quickly

Performance n n n Performance measures how quickly an IT system performs a certain process Benchmarks are baseline values a system seeks to attain Benchmarking is a process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance

Capacity Planning n n Capacity planning determines the future IT infrastructure requirements for new equipment and additional network capacity It’s cheaper for an organization to implement an IT infrastructure that considers capacity growth at the beginning of a system deployment

INFORMATION SYSTEMS INFRASTRUCTURE n n An IT architecture is the blueprint for translating a business strategy into a plan An infrastructure is a relative term meaning “the structure beneath a structure” q q This definition implies different layers of structure, which provide support or services It is the implementation of the architecture

INFORMATION SYSTEMS INFRASTRUCTURE

Why Architecture Matters n n The IT architecture identifies what information must be standardized corporate-wide and what will be standardized at a regional level An IT architecture specifies where and how information will be located and accessed

Why Infrastructure Matters n n Global markets are creating enormous demands for increased information sharing A powerful, flexible IT infrastructure has become a prerequisite for doing business

Why Infrastructure Matters n IT infrastructure should exhibit several key traits, such as: q Efficiency n q Effectiveness n q Reusable components that are priced reasonably and can be turned around quickly for application development projects Easy integration of all components in a way that supports their operation Agility n Good planning and design processes that allow companies to develop new applications quickly and to upgrade their existing infrastructure to support new requirements for existing and/or new applications

Why Infrastructure Matters n Translating the architecture into an infrastructure entails creating details about certain technologies: q q Hardware Software Network Information

INFORMATION TECHNOLOGY INFRASTRUCTURE There are four types of information technology infrastructures: n 1. 2. 3. 4. Decentralized infrastructure Centralized infrastructure Distributed infrastructure Client/server infrastructure

Types of Infrastructure and their Characteristics Decentralized Centralized Distributed Client/Server Cost efficiency Moderate Excellent Moderate Very reasonable Data location Distributed Centralized Distributed Management Ease Simple Easy Difficult Moderate Network performance Excellent Constrained Varies Constrained Processing location Distributed Centralized Distributed Shared User control Full Very limited Varies

Decentralized Infrastructure n n n A decentralized infrastructure involves little or no sharing of information systems Gives users the liberty to develop applications that meet their needs and maintain control over the applications they develop Disadvantages q Difficult to share applications and information across areas n q Each area may have their own hardware/software, maintenance and service contracts which could increase cost Encourages duplication of data which can lead to inconsistencies

Decentralized Infrastructure

Centralized Infrastructure n A centralized infrastructure involves the storing of application software and information in one central area or one central mainframe q q Mainframes were originally the only computers available for business Advantages: n n q High degree of control makes it easy to maintain h/w, s/w, procedures and operations standards Easy to control access to information Disadvantages: n Inflexibility – different departments have different needs and one size does not fit all

Centralized Infrastructure

Distributed Infrastructure n A distributed infrastructure involves distributing the information and processing power of IT systems via a network q n n The architecture must be able to determine the location as well as the optimal way to request specific applications and information By connecting all the information systems via a distributed infrastructure, all locations can share information and applications Processing activity can be allocated to the location(s) where it can most efficiently be done q Will duplicate the same application and/or information in multiple sites

Distributed Infrastructure

Client/Server Infrastructure n n A client/server infrastructure (or client/server network) has one or more computers that are servers which provide services to other computers, called clients The client/server infrastructure is a form of distributed infrastructure q Application processing is split between the client and server n q When surfing the web, your computer is the client using browser software and interacting with Web servers that have information you are seeking (shopping, news, education, etc. ) The server sends information to the client where it is processed – the network is heavily used which can become a bottleneck

Client/Server Infrastructure

Other Types of Infrastructure n In a tiered infrastructure (sometimes referred to as a layer infrastructure), the IT system is partitioned into tiers (or layers) where each tier (or layer) performs a specific type of functionality

Other Types of Infrastructure n n A 1 -tier infrastructure is the most basic setup because it involves a single tier on a single machine q An application running on a standalone PC A 2 -tier infrastructure is the basic client/server relationship q Server handles request for information, client displays it and application is either on the client (fat client) or server (thin client) A 3 -tier infrastructure is the most common approach used for Web applications today q Application (business logic) in 2 -tier is placed on a separate server An n-tier infrastructure balances the work of the network over several different servers

Other Types of Infrastructure

The Infrastructure Investment n n IT investments are one of the most important decisions made within an organization IT infrastructure investments are large, long term, and have no (real) value on their own An infrastructure's value lies in its ability to quickly and economically enable the implementation of new applications which in turn generate even more business value An infrastructure provides for standardization of services which allows for easier integration and information access across business units q Telecommunications, databases

The Infrastructure Investment n n n Infrastructure investement can account for more than 58% of IT dollars By developing a solid infrastructure, GM reduced the number of applications in use at the company from 7, 000 to 3, 000 and has saved $1 billion annually for the past 5 years Wachovia Corp (4 th largest financial services comp and 3 rd largest brokerage firm in the US) invested $1. 4 million in infastructure development and saved $2. 3 million within two years

Supporting an IT Infrastructure n n Backup is the process of making a copy of the information stored on a computer Recovery is the process of reinstalling the backup information in the event the information was lost q Storage area networks (SAN) is an infrastructure for building special, dedicated networks that allow rapid and reliable access to storage devices by multiple servers

Disaster Recovery Plan n n A disaster recovery plan is a detailed process for recovering information or an IT system in the event of a catastrophic disaster such as a fire or flood A collocation facility is a company that rents space and telecommunications equipment from another company Hot site – separate and fully equipped facility where a company can move immediately after a disaster and resume business Cold site – separate facility that does not have computer equipment but where employees can move after a disaster A disaster recovery cost curve charts (1) the cost of the unavailability of information and technology and (2) the cost of recovering from a disaster over time

Disaster Recovery Plan

INTEGRATING THE ENTERPRISE n n Integration allows separate applications to communicate directly with each other by automatically exporting data files from one application and importing them into another Building integrations between applications helps an organization maintain better control of its information

INTEGRATING THE ENTERPRISE n n n Gap Inc has 1, 900 stores around the world, employees more than 13, 000 people and genarated%16. 3 billion revenues in 2004 Their goal is to maintain a 20% growth rate each year – to do this they need to provide their employees with immediate access to real-time information By building an IT infrastructure based in system integrating and the use of the Internet, they are able to exchange real-time sales, inventory and shipping information among all its information systems and employees. This has increased employee and company performance

Why Integration Is Necessary n Integration requires the simplification and streamlining of organizational processes using techniques such as BPR and workflow redesign q q Business process reengineering (BPR) is the analysis and redesign of workflow within and between enterprises Workflow defines all the steps or business rules, from beginning to end, required for a business process

Motives for Integration n n An organization may choose to integrate because of its concerns about its operations, both with internal processes and external relationships Enterprise integration is viewed as a possible solution to a number of problems with internal organizational processes

Motives for Integration OPERATIONAL MOTIVES Poor performance TECHNICAL MOTIVES Disparate systems High cost structure Poor quality of information Responsiveness to customers Complex processes Systems not integrated Globalization Limited growth potential Obsolete systems

Benefits of Integration n Many of the benefits can be easily measured in financial terms q q q Cost reduction Reduction of inventory costs Reduction of personnel costs

Benefits of Integration RANK TANGIBLE INTANGIBLE 1 Inventory reduction Information visibility 2 Personnel reduction New/improved process 3 Productivity improvements Customer responsiveness 4 Order processing improvements Integration 5 IT cost reduction Standardization 6 Procurement reduction Flexibility 7 Revenue/profit increase Globalization 8 Transportation logistics Business performance

Integration Obstacles n n n People Process Technology