7-1 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Chapter 7 IT Infrastructures Business-Driven Technology

7-2 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Presentation Overview Organizational Goals and Strategies Organizational Goals and Strategies Increase Employee Productivity Increase Employee Productivity Enhance Decision Making Enhance Decision Making Improve Team Collaboration Improve Team Collaboration Create Business Partnerships and Alliances Create Business Partnerships and Alliances Enable Global Reach Enable Global Reach Facilitate Organizational Transformation Facilitate Organizational Transformation IT Infrastructures and The Real World IT Infrastructures and The Real World

7-3 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Opening Case Study What’s The Difference Between Napster and Gnutella? Napster and Gnutella have similar products that use different IT infrastructures. Napster and Gnutella have similar products that use different IT infrastructures. Why is it important that a company build a solid IT infrastructure? Why is it important that a company build a solid IT infrastructure?

7-4 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Introduction IT infrastructure - includes the hardware, software, and telecommunications equipment that, when combined, provide the underlying foundation to support the organization’s goals. IT infrastructure - includes the hardware, software, and telecommunications equipment that, when combined, provide the underlying foundation to support the organization’s goals.

7-5 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Organizational Goals and Strategies 1. Increase employee productivity 2. Enhance decision making 3. Improve team collaboration 4. Create business partnerships and alliances 5. Enable global reach 6. Facilitate organizational transformation

7-6 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Client/server network - a network in which one or more computers are servers and provide services to the other computers which are called clients. Client/server network - a network in which one or more computers are servers and provide services to the other computers which are called clients.  Thin client - a workstation with a small amount of processing power. Global reach - the ability to extend a company’s reach to customers anywhere there is an Internet connection, and at a much lower cost. Global reach - the ability to extend a company’s reach to customers anywhere there is an Internet connection, and at a much lower cost.

7-7 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Intranet - an internal organizational Internet that is guarded against outside access by a special security feature called a firewall. Intranet - an internal organizational Internet that is guarded against outside access by a special security feature called a firewall. Extranet – is an Intranet that is restricted to an organization and certain outsiders, such as customers and suppliers. Extranet – is an Intranet that is restricted to an organization and certain outsiders, such as customers and suppliers. Backup and recovery Backup and recovery

7-8 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Disaster recovery plan - a detailed process for recovering information or an IT system in the event of a catastrophic disaster. Disaster recovery plan - a detailed process for recovering information or an IT system in the event of a catastrophic disaster.  Hot site  Cold site Disaster recovery cost curve – charts Disaster recovery cost curve – charts 1. The cost to your organization of the unavailability of information and technology. 2. The cost to your organization of recovering from a disaster over time.

7-9 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Availability Availability Accessibility Accessibility Reliability Reliability  Data cleansing - the process of ensuring that all information is accurate. Scalability – how well your system can adapt to increased demands Scalability – how well your system can adapt to increased demands Flexibility Flexibility

7-10 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Performance - measures how quickly an IT system performs a certain process. Performance - measures how quickly an IT system performs a certain process.  Benchmark - a set of conditions used to measure how well a product or system functions. Capacity planning - determines the future IT infrastructure requirements for new equipment and additional network capacity. Capacity planning - determines the future IT infrastructure requirements for new equipment and additional network capacity.

7-11 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity On Your Own Increase Student Productivity (p. 340) Team Work IT Components and Factors (p. 339)

7-12 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enhance Decision Making Integration - allows separate systems to communicate directly with each other by automatically exporting data files from one system and importing them into another. Integration - allows separate systems to communicate directly with each other by automatically exporting data files from one system and importing them into another.

7-13 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enhance Decision Making Enterprise application integration (EAI) - the process of developing an IT infrastructure that enables employees to quickly implement new or changing business processes. Enterprise application integration (EAI) - the process of developing an IT infrastructure that enables employees to quickly implement new or changing business processes. Enterprise application integration middleware (EAI Middleware) - supports different levels of integration from the information level to the business process level. Enterprise application integration middleware (EAI Middleware) - supports different levels of integration from the information level to the business process level.

7-14 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Improve Team Collaboration Document management system - manages a document through its life cycle. Document management system - manages a document through its life cycle. Enterprise information portals (EIPs) - allow knowledge workers to access company information via a Web interface. Enterprise information portals (EIPs) - allow knowledge workers to access company information via a Web interface.  Collaborative processing enterprise information portal - access to workgroup information such as e- mails, reports, meeting minutes, and memos.  Decision processing enterprise information portal - corporate information for making key business decisions.

7-15 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Improve Team Collaboration Workflow - defines all of the steps or business rules required for a process to run correctly. Workflow - defines all of the steps or business rules required for a process to run correctly. Workflow systems - automate processes. Workflow systems - automate processes.  Messaging-based workflow systems - send work assignments through an system.  Database-based workflow systems - store the document in a central location and automatically asks the knowledge workers to access the document.

7-16 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Improve Team Collaboration On Your Own Working Together As A Team (p. 345)

7-17 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances Customer relationship management (CRM) systems - use information about customers to gain insights into their needs, wants, and behaviors in order to serve them better. Customer relationship management (CRM) systems - use information about customers to gain insights into their needs, wants, and behaviors in order to serve them better.  Front office systems - the primary interface to customers and sales channels.  Back office systems - used to fulfill and support customer orders.

7-18 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances A sample CRM infrastructure A sample CRM infrastructure

7-19 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances Sales force automation (SFA) systems - automatically track all of the steps in the sales process. Sales force automation (SFA) systems - automatically track all of the steps in the sales process. Electronic catalog - designed to present products to customers or partners all over the world via the Web. Electronic catalog - designed to present products to customers or partners all over the world via the Web.

7-20 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances Supply Chain Management (SCM) Systems - track inventory and information among business processes and across companies. Supply Chain Management (SCM) Systems - track inventory and information among business processes and across companies.

7-21 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enable Global Reach Internet service provider (ISP) - a company that provides access to the Internet. Internet service provider (ISP) - a company that provides access to the Internet. Application service provider (ASP) - a company that provides an outsourcing service for businesses software applications. Application service provider (ASP) - a company that provides an outsourcing service for businesses software applications. Service Level Agreements (SLAs) - define the specific responsibilities of the service provider and set the customer expectations. Service Level Agreements (SLAs) - define the specific responsibilities of the service provider and set the customer expectations.

7-22 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enable Global Reach A sample ASP infrastructure A sample ASP infrastructure

7-23 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enable Global Reach Collocation - a company rents space and telecommunications equipment from another company, or a collocation vendor. Collocation - a company rents space and telecommunications equipment from another company, or a collocation vendor. Server farm - the name of a location that stores a group of servers in a single place. Server farm - the name of a location that stores a group of servers in a single place. Web farm – is either a Web site that has multiple servers, or an ISP that provides Web site outsourcing services using multiple servers. Web farm – is either a Web site that has multiple servers, or an ISP that provides Web site outsourcing services using multiple servers.

7-24 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation Enterprise resource planning (ERP) - the method of getting and keeping an overview of every part of the business (a bird’s eye view, so to speak), so that production, development, selling, and servicing of goods and services will all be coordinated to contribute to the company’s goals and objectives. Enterprise resource planning (ERP) - the method of getting and keeping an overview of every part of the business (a bird’s eye view, so to speak), so that production, development, selling, and servicing of goods and services will all be coordinated to contribute to the company’s goals and objectives.

7-25 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation Enterprise software - a suite of software that includes: Enterprise software - a suite of software that includes: 1. A set of common business applications. 2. Tools for modeling how the entire organization works. 3. Development tools for building applications unique to your organization. Computer-aided software engineering (CASE) tools - software suites that automate systems development. Computer-aided software engineering (CASE) tools - software suites that automate systems development.

7-26 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation A sample enterprise software infrastructure A sample enterprise software infrastructure

7-27 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation Legacy systems - are IT systems previously built using older technologies such as mainframe computers and programming languages such as COBOL. Legacy systems - are IT systems previously built using older technologies such as mainframe computers and programming languages such as COBOL. Business process reengineering (BPR) - the reinventing of processes within a business. Business process reengineering (BPR) - the reinventing of processes within a business.

7-28 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved IT Infrastructures and the Real World Remember to ask yourself the following questions before approving the IT infrastructure design: Remember to ask yourself the following questions before approving the IT infrastructure design:  How big is your department going to grow?  Will the system be able to handle additional users?  How are your customers going to grow?  How much additional information do you expect to store each year?  How long will you maintain information in the systems?  How much history do you want to keep on each customer?