Chapters 7Chapters 7

INFRASTRUCTURE, CLOUD INFRASTRUCTURE, CLOUD COMPUTING, METRICS, COMPUTING, METRICS,

AND BUSINESS AND BUSINESS CONTINUITY PLANNINGCONTINUITY PLANNING

Building and Sustaining the Building and Sustaining the Dynamic EnterpriseDynamic Enterprise

Opening Case: Opening Case: Money will always be MoneyMoney will always be Money

The use of paper money is on the decline; the use of electronic money has more than doubled in the past 10 years.

INTRODUCTIONINTRODUCTION

Successful IT systems provide an Successful IT systems provide an integrated view of:integrated view of:

1.1. BusinessBusiness

2.2. Extend analytical capabilities to Extend analytical capabilities to usersusers

3.3. Leverage a corporation's Leverage a corporation's information and expertise information and expertise

INTRODUCTION: SoAINTRODUCTION: SoA

Service-oriented architecture (SoA)Service-oriented architecture (SoA) perspective that focuses on the perspective that focuses on the

development, use, and reuse of small self-development, use, and reuse of small self-contained blocks of code (called contained blocks of code (called servicesservices) ) to meet all application software needsto meet all application software needs

Software code is not developed solely Software code is not developed solely for a single applicationfor a single application

Rather Rather servicesservices are built that can be are built that can be used and reused across all applicationsused and reused across all applications

INTRODUCTION: SoAINTRODUCTION: SoA CustomersCustomers should be able to “plug and play” into should be able to “plug and play” into

your organization and have the same pleasurable your organization and have the same pleasurable experience regardless of the channelexperience regardless of the channel

End usersEnd users should have access to whatever should have access to whatever information and software they need regardless of information and software they need regardless of where they (the end users) arewhere they (the end users) are

Software development Software development should focus on reusable should focus on reusable components (services) to accelerate systems components (services) to accelerate systems development. development.

InformationInformation would be treated appropriately as a would be treated appropriately as a valuable organizational resource – protected, valuable organizational resource – protected, managed, organized, and made available to everyone managed, organized, and made available to everyone who needs it.who needs it.

HardwareHardware is both integrated and transparent. is both integrated and transparent.

ERP and SoAERP and SoA Enterprise resource planning (ERP) Enterprise resource planning (ERP)

systemsystem collection of integrated software for business collection of integrated software for business

management, accounting, finance, supply chain management, accounting, finance, supply chain management, inventory management, customer management, inventory management, customer relationship management, e-collaboration, etc.relationship management, e-collaboration, etc.

ERP and SoAERP and SoA For ERP to integrate everything, everything must be For ERP to integrate everything, everything must be

plug-and-play components or servicesplug-and-play components or services All modules of an ERP vendor must be interoperableAll modules of an ERP vendor must be interoperable Software from multiple ERP vendors must be Software from multiple ERP vendors must be

interoperableinteroperable The infrastructure beneath must be hidden from The infrastructure beneath must be hidden from

users and customersusers and customers

Supporting Network Supporting Network InfrastructuresInfrastructures

Computer network Computer network – fundamental – fundamental underlying infrastructure for any IT underlying infrastructure for any IT environmentenvironment DistributedDistributed Client/serverClient/server TieredTiered

Distributed Network Distributed Network InfrastructureInfrastructure

DistributedDistributed

First true First true network network infrastructureinfrastructure

Processing activity Processing activity is allocated to the is allocated to the location(s) where it location(s) where it can most efficiently can most efficiently be donebe done

Client/Server InfrastructureClient/Server Infrastructure Client/server Client/server

infrastructureinfrastructure

Servers and clients Servers and clients work together to work together to optimize processing, optimize processing, information storage, information storage, etcetc

When you surf the When you surf the Web, the underlying Web, the underlying network infrastructure network infrastructure is client/serveris client/server

Tiered InfrastructureTiered Infrastructure Tiered (layer)Tiered (layer) – the IT – the IT

system is partitioned into system is partitioned into tiers (layers) where each tiers (layers) where each tier performs a specific tier performs a specific type of functionalitytype of functionality 1-tier1-tier – single machine– single machine 2-tier2-tier – basic – basic

client/server client/server relationshiprelationship

3-tier3-tier – client, – client, application server, data application server, data or database serveror database server

N-tierN-tier – scalable 3-tier – scalable 3-tier structure with more structure with more serversservers

CLOUD COMPUTINGCLOUD COMPUTING

Cloud computing Cloud computing – model in which any and all IT – model in which any and all IT resources are delivered as a set of services via the resources are delivered as a set of services via the InternetInternet Application softwareApplication software Processing powerProcessing power Data storageData storage Backup facilitiesBackup facilities Development toolsDevelopment tools Literally everythingLiterally everything

Many Implementations of the Many Implementations of the CloudCloud

All called ???-as-a-service, or ?aaSAll called ???-as-a-service, or ?aaS SaaS (software) SaaS (software) – pay for software on a pay-per-– pay for software on a pay-per-

use basisuse basis IaaS (infrastructure) IaaS (infrastructure) – pay for the use of – pay for the use of

infrastructure components (communications servers, infrastructure components (communications servers, network servers, etc) on a pay-per use basisnetwork servers, etc) on a pay-per use basis

PaaS (platform) PaaS (platform) – SaaS plus ability to customize – SaaS plus ability to customize forms, reports, etc., and ability to add modules with forms, reports, etc., and ability to add modules with software development toolssoftware development tools

Public and Private CloudsPublic and Private Clouds Public cloud Public cloud – comprises cloud services that exist – comprises cloud services that exist

on the Internet offered to anyone and any business. on the Internet offered to anyone and any business. Amazon Web Services (AWS)Amazon Web Services (AWS) Windows AzureWindows Azure Rackspace CloudRackspace Cloud Google Cloud ConnectGoogle Cloud Connect ElasticHostsElasticHosts

Private cloud Private cloud – cloud computing services – cloud computing services established and hosted by an organization on its established and hosted by an organization on its internal network and available only to employees internal network and available only to employees and departments within that organization.and departments within that organization. All benefits of cloud computing, except held private within All benefits of cloud computing, except held private within

an organizationan organization

Advantages of the CloudAdvantages of the Cloud

Lower capital expendituresLower capital expenditures Lower barriers to entryLower barriers to entry Immediate access to a broad range Immediate access to a broad range

of application softwareof application software Real-time scalabilityReal-time scalability

IT SUCCESS METRICSIT SUCCESS METRICS

To justify costs of technology, you To justify costs of technology, you need to measure its successneed to measure its success

Metrics are also called Metrics are also called benchmarksbenchmarks, , baseline values a system seeks to baseline values a system seeks to attain.attain.

BenchmarkingBenchmarking

Efficiency & Effectiveness Efficiency & Effectiveness MetricsMetrics

EfficiencyEfficiency – doing something right – doing something right In the least timeIn the least time At the lowest costAt the lowest cost With the fewest errorsWith the fewest errors EtcEtc

EffectivenessEffectiveness – doing the right things – doing the right things Getting customers to buy when they visit your siteGetting customers to buy when they visit your site Answering the right question with the right answer Answering the right question with the right answer

the first timethe first time EtcEtc

Types of IT Success MetricsTypes of IT Success Metrics

1.1. Infrastructure-centric metricsInfrastructure-centric metrics

2.2. Web-centric metricsWeb-centric metrics

3.3. Call center metricsCall center metrics

1.1. Infrastructure-Centric Infrastructure-Centric MetricsMetrics

Infrastructure-centric metricInfrastructure-centric metric

A.A. ThroughputThroughput – amount of information that can pass through – amount of information that can pass through a system in a given amount of timea system in a given amount of time

B.B. Transaction speed Transaction speed – speed at which a system can process – speed at which a system can process a transactiona transaction

C.C. System availability System availability – measured inversely as downtime, or – measured inversely as downtime, or the average amount of time a system is down or unavailablethe average amount of time a system is down or unavailable

D.D. AccuracyAccuracy – measured inversely as error rate, or the number – measured inversely as error rate, or the number of errors per thousand/million that a system generatesof errors per thousand/million that a system generates

E.E. Response time Response time – average time to respond to a user-– average time to respond to a user-generated event, such as a mouse clickgenerated event, such as a mouse click

F.F. ScalabilityScalability – conceptual metric related to how well a system – conceptual metric related to how well a system can be adapted to increased demandscan be adapted to increased demands

2.2. Web-Centric MetricsWeb-Centric MetricsWeb-centric metricWeb-centric metric

A.A. Unique visitorsUnique visitors – # of unique visitors to a site – # of unique visitors to a site (Nielsen/Net Ratings primary metric)(Nielsen/Net Ratings primary metric)

B.B. Total hits Total hits – number of visits to a site– number of visits to a site

C.C. Page exposures Page exposures – average page exposures to an – average page exposures to an individual visitorindividual visitor

D.D. Conversion rate Conversion rate - % of potential customers who visit - % of potential customers who visit your site and who actually buy somethingyour site and who actually buy something

E.E. Click-throughClick-through - # of people who click on an ad and are - # of people who click on an ad and are taken to another sitetaken to another site

F.F. Cost-per-thousandCost-per-thousand – sales dollars generated per dollar – sales dollars generated per dollar of advertisingof advertising

G.G. Abandoned registrations Abandoned registrations - # who start to register at - # who start to register at your site and then abandon the processyour site and then abandon the process

H.H. Abandoned shopping carts Abandoned shopping carts - # who create a shopping - # who create a shopping cart and then abandon itcart and then abandon it

3.3. Call Center MetricsCall Center MetricsCall center metricCall center metric

A.A. Abandon rateAbandon rate - % number of callers who hang - % number of callers who hang up while waiting for their call to be answeredup while waiting for their call to be answered

B.B. Average speed to answer (ASA) Average speed to answer (ASA) – average – average time, usually in seconds, that it takes for a call time, usually in seconds, that it takes for a call to be answered by an actual personto be answered by an actual person

C.C. Time service factor (TSF)Time service factor (TSF) - % of calls - % of calls answered within a specific time frame, such as answered within a specific time frame, such as 30 or 90 seconds30 or 90 seconds

D.D. First call resolution (FCR) First call resolution (FCR) - % of calls that - % of calls that can be resolved without having to call backcan be resolved without having to call back

IT Metrics and Service Level IT Metrics and Service Level AgreementsAgreements

Service level agreement (SLA)Service level agreement (SLA) – – formal, contractually obligated formal, contractually obligated agreement between 2 partiesagreement between 2 parties

SLAs must include IT success metricsSLAs must include IT success metrics SLAs are between your organization SLAs are between your organization

and outsourcing organizations (and outsourcing organizations (SLAs SLAs define how you will measure the outsourcing define how you will measure the outsourcing organization’s efforts)organization’s efforts)

SLAs are also between your organization and SLAs are also between your organization and an application service provideran application service provider

Supporting an IT Supporting an IT InfrastructureInfrastructure

BackupBackup is the process of making a is the process of making a copy of the information stored on a copy of the information stored on a computercomputer

RecoveryRecovery is the process of is the process of reinstalling the backup information in reinstalling the backup information in the event the information was lostthe event the information was lost

BUSINESS CONTINUITY BUSINESS CONTINUITY PLANNINGPLANNING

Business continuity planning Business continuity planning (BCP)(BCP)

BCP is very necessary today given BCP is very necessary today given terror threats, increased climate terror threats, increased climate volatility, etcvolatility, etc

Disaster Recovery PlanDisaster Recovery Plan Disaster recovery planDisaster recovery plan

Collocation facilityCollocation facility

Hot SiteHot Site

Cold SiteCold Site

Disaster Recovery ExampleDisaster Recovery Example

Birthday cardsBirthday cards Payroll checksPayroll checks Inventory managementInventory management Accounts receivableAccounts receivable Company Web site (advertising only)Company Web site (advertising only) Company Web site (ordering available)Company Web site (ordering available)

Hot or cold site?Hot or cold site? Frequency of backup?Frequency of backup?