enterprise infrastructure and integration building the dynamic enterprise
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ENTERPRISE INFRASTRUCTURE AND INTEGRATION
Building the Dynamic Enterprise
INTRODUCTION
Successful IT systems provide an integrated view of:
1. Business
2. Extend analytical capabilities to users
3. Leverage a corporation's information and expertise
4. Allow the seamless flowing of information across diverse business functions, business units and geographic boundaries
INTRODUCTION
Enterprises need to encompass a range of intelligence systems and analytical applications that include: Data warehouses and data marts Online analytical processing (OLAP) Decision support systems (DSSs) Executive information systems (EISs)
ENTERPRISE SYSTEMS
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: Workforce Suppliers Customers
ENTERPRISE SYSTEMS
ENTERPRISE SYSTEMS
Enterprise systems are suited for information transactions They are the underlying information “factory”
Enterprise systems offer the first great opportunity to achieve true connectivity 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
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”: Availability Accessibility Reliability Scalability Flexibility Performance Capacity planning
Availability
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
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
Reliability ensures your IT systems are functioning correctly and providing accurate information
Inaccurate information exists for many reasons: The information being entered incorrectly The information becoming corrupt
Scalability
Scalability refers to how well a system can adapt to increased demands
A number of factors can affect organizational growth including: The market The industry The economy
Flexibility
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 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
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
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” 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
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
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 IT infrastructure should exhibit several key traits,
such as: Efficiency
Reusable components that are priced reasonably and can be turned around quickly for application development projects
Effectiveness Easy integration of all components in a way that supports their
operation Agility
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
Translating the architecture into an infrastructure entails creating details about certain technologies: Hardware Software Network Information
INFORMATION TECHNOLOGY INFRASTRUCTURE
There are four types of information technology infrastructures:
1. Decentralized infrastructure
2. Centralized infrastructure
3. Distributed infrastructure
4. Client/server infrastructure
Types of Infrastructure and their Characteristics
Characteristics Decentralized Centralized Distributed Client/Server
Cost efficiency Moderate Excellent Moderate Very reasonable
Data location Distributed Centralized Distributed 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 Varies
Decentralized Infrastructure 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 Difficult to share applications and information across areas
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 A centralized infrastructure involves the storing of
application software and information in one central area or one central mainframe Mainframes were originally the only computers
available for business Advantages:
High degree of control makes it easy to maintain h/w, s/w, procedures and operations standards
Easy to control access to information
Disadvantages: Inflexibility – different departments have different needs and
one size does not fit all
Centralized Infrastructure
Distributed Infrastructure A distributed infrastructure involves distributing the
information and processing power of IT systems via a network 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 Will duplicate the same application and/or information in
multiple sites
Distributed Infrastructure
Client/Server Infrastructure 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 Application processing is split between the client and server
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
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 A 1-tier infrastructure is the most basic setup because it involves a
single tier on a single machine An application running on a standalone PC
A 2-tier infrastructure is the basic client/server relationship 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 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 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 Telecommunications, databases
The Infrastructure Investment 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 (4th largest financial services comp and 3rd 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
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 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 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
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
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
Integration requires the simplification and streamlining of organizational processes using techniques such as BPR and workflow redesign 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
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
TECHNICAL MOTIVES
Poor performance Disparate systems
High cost structure Poor quality of information
Responsiveness to customers
Systems not integrated
Complex processes Obsolete systems
Globalization Limited growth potential
Benefits of Integration
Many of the benefits can be easily measured in financial terms Cost reduction Reduction of inventory costs Reduction of personnel costs
Benefits of IntegrationRANK 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
People Process Technology