Infrastructure Applications Requirements for classes of applications

IT Drivers zData Warehousing zEnterprise Management ySAP and others ySupply chain management zElectronic Commerce yBusiness to business yElectronic retail

Data Warehousing Building a database to support the decision making activities of a department or business unit

Data Warehouse A read-only database for decision analysis –Subject Oriented –Integrated –Time variant –Nonvolatile consisting of time stamped operational and external data.

Data Warehouse Architecture Enterprise Data Warehouse Data Marts Business Packages

Three Approaches zClassical Enterprise Warehouse Contains integrated operational data from all areas of the organization. zData Mart Extracted and summarized data designed for departmental or EUC applications zData Project Data for a specific application or analysis

Data Warehouse vs Operational Databases zHighly tuned zReal time Data zDetailed records zCurrent values zAccesses small amounts of data in a predictable manner z Flexible access z Consistent timing z Summarized as appropriate z Historical z Access large amounts of data in unexpected ways

Access Tailored access programs in user form, usually client-server zSpecialist interfaces zGeneral purpose GUI products (e.g. Access, PowerBuilder) zCustom access routines

Enterprise Resource Planning

ERP Reality zComplete systems can cost tens of millions of dollars zImplementation can take several years zCompanies may lose flexibility

What is SAP? Systems Applications and Products in Data Processing zSAP is the leading global provider of client/server business application solutions zSAP is the number one vendor of standard business applications software zSAP is the fifth largest independent software supplier in the world

Facts About SAP: zFounded in 1972 in Walldorf, Germany zSAP employs a workforce of over 7,000 zSAP has offices in over 40 countries zMore than 6,000 companies worldwide have implemented SAP zReported revenues for 1995 were billion dollars

Acquiring Products or Services zRequest for Proposal zRequest for Quote zRequest for Information

Request for Proposals OBJECTIVE: OPEN, FAIR COMPETITION WITH UNDERSTOOD CRITERIA Qualified vendors should be offered an opportunity to bid.

Intelligence zIn-house zVendors zConsultants zLiterature zSimilar installations zReview services (Auerbach, DataPro)

RFP Process zFirst Pass: Eliminate unacceptable alternatives; reduce the choices to 2-4 alternatives. zSecond Pass: Select the final product.

Need to publish: zWritten requirements zFormal presentation Don't let vendors run the selection zEvaluation standards

RFP Contents zIntroduction zInstructions Objectives Contacts Timetable zSystem Requirements Mandatory Requirements Desirable Features zEvaluation Method

Evaluation Criteria zFeatures Table Hard Dollar Evaluations Soft Dollar Evaluations zDelivery Date zAcceptance Criteria & Penalties zMandatory Features  Desirable features

Desirable Features zModularity zCompatibility zReliability zMaintainability  Vendor Support

Acquisition Strategies zRent: Short term, complete vendor support, high cost zLease: Intermediate term, local support, user specified equipment zPurchase: Cheaper, total user responsibility zContract: Full vendor responsibility, contract sensitive

Validation Test the proposed system to assure that it does what you want: yModeling ySimulation yBenchmarking yWork sample analysis

Electronic Commerce Interorganizational Systems: zBusiness-to-business zElectronic storefront

Market Exchange Interorganizational Structure zVertical integration Multiple activities in the same firm xRisk: range of expertise required zSelective sourcing Some outsourced activities xRisk: control of outsourcer zVirtual corporation Coordination of separate activities xRisk: loss of core competency

Questions zDo we benefit from electronic commerce? zDo we use information to add value to customers? zAre we managing the product/service channel? zHave we redesigned business with our partners to take advantage of technology and provide security zDo we have partners with shared vision and common purpose? zDo we have the right infrastructure?

External / Internal Hosting zOutside (Cheaper) yminimize bandwidth and hardware problems yuse external experts yinstalled infrastructure ylittle additional staffing required zInside (More Control) ydependent on third party reliability ypossible single vendor software solutions ypossible single vendor payment scheme

External / Internal Hosting zExternal better at storefronts but requires close integration with core business zInternal better at business to business but often creates a self-contained replicated system that can be outsourced

Payment zCredit Cards SET (Secure Electronic Transaction) with http zElectronic Checks Public/private key transactions with banks zElectronic Cash 3rd party software to create virtual cash zEDI/EFT Value added network using 3rd party. Common in business to business.

Infrastructure Drivers