Chapter 12 Strategies for Managing the Technology Infrastructure

Agenda Technology infrastructure Objectives of IT infrastructure Business issues in managing technology Justify IS/IT investment Management issues Technology strategies

IT Infrastructure Physical infrastructure of hardware, software, & network Architectures (plan) for information, process, organization, & technology Management policies for service delivery, capacity, security, privacy, sourcing, & audit Management processes & services for facilities, training vendor management, & technical support

Objectives of IT Infrastructure Provide proper infrastructure to support business IS needs Maximize the use of information and IS for business Provide a high degree of IS/IT integration in terms of cost, quality, & benefit Facilitate rapid application development Reduce complexity and non-standardization Build a global communication infrastructure

Business issues in Managing Technology Link IT investment to business needs Identify technical opportunities Identify IS/IT investment by competitors & partners Business and technical awareness Relate IT resources to business needs Appropriate user support

Justify IS/IT Investment Application specific cost/benefit analysis Replace obsolete technology Using more efficient technology for reducing costs of existing applications An enable for the overall business strategy Embrace growth in business volumes

Management Issues Information era Location and control of technology Integration challenges Security & privacy Contingency management Vendor management New technology

Information Era New geopolitical order in world New environment in the market place New environment with business

Location and Control of Technology Centralization or decentralization Selection criteria –Economic –Enterprise style –Innovation –Resources –Multinational organization

Integration Challenges - I Environment –Various platforms of hardware & software –Decentralization –Global organization –Different policies & procedures

Integration Challenges - II Solutions –Common operating systems –Sharing databases –Common application development tools –Common or integrated hardware –Integration of legacy and new systems (middleware) –Integration of packages

Security & Privacy Security –Protect data, information, IS/IT facilities Privacy –Protect confidential information of individuals

Security & Privacy Logical security Physical security Data security Communication security Administration security Application security

Physical Security Location (traffic) Security (lock) Environmental (air) Fire Power

Logical Security Photo Fingerprints Voice Eye Signature Password

Data Security Minimal privilege Minimal exposure

Communication Security Firewall Decryption Encryption Private & public key

Administrative Security Policy Procedure Hardware Software Employee Data

Application Security Input security Processing security Output security

Contingency Management - I Types –Emergency plan (natural disaster) –Backup plan –Recovery plan Contents –Procedures –Testing –Practicing –Updating

Vendor Management Reputation Future growth Product consideration Good lawyer and contract Others?

Contingency Management - II Disaster Recovery firm –Outsource strategic function? Planning steps –Discovering the important critical IT functions and process –Identifying the cost to have information unavailable –Balancing the cost of unavailability with the cost of recovery

Contingency Management - III Hardware backup –Hot site –Cold site –Mobile facility Software and database backup –Selective backup –Incremental backup –Total backup –On site backup –Off site backup

Contingency Management - IV Telecommunication backup –Fault-tolerant networks Personnel backup –Name –Phone no. –Address Back-up power generators System –Scaled-down manual system –Parallel systems

New Technology Identification & investment Experimentation, learning, and adaptation Rationalization and management control Widespread technology transfer

Technology Strategies High potential Strategic Key operational Support

High Potential Prototyping development R&D control, separate actitivity New technology or new use of technology Application generator/ RAD tools External skills, knowledge transfer Application evaluation Determine next stage of development

Strategic Application generator Incremental development Relational or object oriented database Ideal technology – new skills Flexible architecture Peak demand capacity Tested contingency plan External technology influence Isolate risky systems Tailor package to needs

Key Operational Software engineering and SDLC Integrated architectures Quality/charge control Peak capacity planning Hierarchical or network database Tested contingency plan Incremental technology Application packages- enhanced Mandatory standards Careful technology selection – IT veto

Support Evolutionary technology Capacity plan on average requirements Disinvestment End user support Avoid obsolescence Low priority contingency plan General purpose application package/unmodified Sustained quality and efficiency