1 Planning IT Architecture & BPR

2 Planning IT Architecture  IT Architecture An IT architecture consists of a description of the combination of hardware, software, data, personnel, and telecommunications elements within an organization, along with procedures to employ them.

3 IT Architecture Computing  Architecture Options Centralized computing puts all processing and control authority within one computer and all other computing devices respond. Distributed Computing handles the choices for computing at the point of the computing need; individual needs are met with individualized computing. A Blended approach combines the two models above. The mainframe (centralized resource) can operate as a peripheral device for other (distributed) computing resources.

4 Distribution Architectures  Distribution Architecture Refers to how the organization distributes data and database processing physically among the computers in a network Manager can use DMBS with one of the four data architectures  Decentralized Architecture  Centralized Architecture  Client/Server Architecture  Distributed Architecture Very complex  Mixed Architecture

5 DecentralizedCentralizedClient/ServerDistributed DefiningShared dataNoYes CharacteristicsData locationDistributedCentralized Distributed Processing location DistributedCentralizedSharedDistributed Processing power required Low compared to centralized High compared to centralized Performance and usage PerformanceExcellentNetwork Constrained Mixed CharacteristicsEase of management SimpleEasyModerateDifficult RedundancyHighLow Moderate ConsistencyLowHigh ScalabilityHighLowModerateHigh

6 Client/Server Architecture

7 Example: Mincase  XYZ minicase The owner of a chain of five leather goods (XYZ) has decided to install a set of computerized information systems to support accounting, sales, operations, and human resource functions for the stores as an outcome of there strategic information systems planning (SISP). Located in small suburban shopping centers, these stores carry an assortment of luggage, briefcases, wallets, and other leather products as well as travel accessories and small electronic products. So far, each store in the chain has operated independently, with a single personal computer to support store functions at the manager’s discretion. Some stores use it to record transactions; others maintain inventory records on it; still others use it for primitive payroll systems. XYZ has made available $50,000 during the fiscal year to begin computerizing the company’s systems.

8 Planning for Reengineering Legacy Systems  Legacy Systems are holdovers of earlier architectures that are still in use after an organization migrates to a new architecture. The decision—to keep, improve, or replace—can present management with agonizing alternatives.  Reverse engineering is the process of examining systems to determine their present status, and to identify what changes are necessary to allow the system to meet current and future business needs.

9 Business Process Reengineering  Business process reengineering (BPR) refers to a situation in which an organization fundamentally and radically redesigns its business process to achieve dramatic improvement. Initially, attention was given to a complete restructuring of organizations. Later, the concept was changed due to failures of BPR projects and the emergence of Web-based applications. Today, BPR can focus on anything from the complete restructuring of an organization to the redesigning of individual processes. Major objective of BPR = Information Integration.

10 Business Processes Across Functional Areas

11 The Enabling Role of IT Old RuleIntervening Technology New Rule Information appears in only one place at one time. Shared databases, client/server architecture, Internet, intranets Information appears simultaneously wherever needed. Only an expert can perform complex work. Expert systems, neural computing Novices can perform complex work. Business must be either centralized or distributed. Telecommunication and networks: client/server, intranet Business can be both centralized and distributed. Only managers make decisions. Decision support systems, enterprise support systems, expert systems Decision making is part of everyone’s job.

12 Planning for Organizational Change  The Business Context Globalization of Management Organizational Flexibility, Adaptability and Collaboration Work Teams and Empowered workers The Changing workforce Knowledge management  Information Requirements for Organizations Accessible, Reliable, Secure, and Accurate information At appropriate cost

13 Flattening the Organizational Structure

14 Matrix Organizational Structure

15 Modular Structure: Virtual Organizational Structure Modular structure tied together by IT, to share skills, costs, etc.

16 Networked Organizations  Today some organizations are turning away from the hierarchical organization toward the networked organization. Networked organizations refer to organizational structures that resemble computer networks and are supported by information systems.  In the information-based economy, most people do knowledge work, and the subordinate often has more expertise than the “hierarchical” supervisor.  A flattened organization has fewer layers of management and a broader span of control than the hierarchical organization.

17 Networked Organizations (cont.)

18 Empowerment and Knowledge Management  Empowerment is the vesting of decision-making or approval authority in employees where, traditionally, such authority was a managerial prerogative.  Empowerment can be enhanced through IT. Empowered employees are expected to perform better.