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2. ENTERPRISE INFRASTRUCTURE AND INTEGRATION
Chapter 7
ENTERPRISE INFRASTRUCTURE AND INTEGRATION
Building the Dynamic Enterprise

3. STUDENT LEARNING OUTCOMES
Define an enterprise system.
Describe an enterprise resource planning (ERP) system.
List and describe the seven “ilities.”
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4. STUDENT LEARNING OUTCOMES
List the key traits that an IT infrastructure should exhibit.
Describe the differences among the four types of IT infrastructures.
Explain the difference between backup and recovery.
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5. STUDENT LEARNING OUTCOMES
State the purpose of a disaster recovery plan.
Explain the need for system integration.
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6. One View for Del Monte Foods
Del Monte needed to overhaul its IT infrastructure
Migrate from multiple platforms
Consolidate applications to a central single system
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7. One View for Del Monte Foods
Develop an ERP system
Merge multiple systems
Quick and cost effective
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8. One View for Del Monte Foods
Class poll…
Why did Del Monte need to integrate its systems?
Why does knowing the sales of Kibbles ‘n Bits and the sales of vegetables help the overall organization?
Do you think Del Monte would like to know who is buying combinations of its products? Why?
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9. INTRODUCTION Successful IT systems provide an integrated view of:
Business
Extend analytical capabilities to users
Leverage a corporation's information and expertise
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10. 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)
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11. 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
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12. ENTERPRISE SYSTEMS McGraw-Hill
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13. 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
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14. ERP Systems
Enterprise resource planning (ERP) systems are software systems for business management, supporting areas such as planning, manufacturing, sales, marketing, distribution, accounting, financial, human resource management, project management, inventory management, service and maintenance, transportation, and e-business
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15. ERP Systems
ERP systems allow companies to implement a single integrated system by replacing legacy information systems.
Legacy information system (LIS) - represents a massive, long-term business investment; such systems are often brittle, slow, and nonextensible
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16. ERP Systems McGraw-Hill
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17. ERP Systems
An ERP system is required to have the following characteristics:
Modular design comprising many distinct business functions such as financial, manufacturing, distribution, and the like
Centralized DBMS
Integrated functions that provide seamless information flow among the functions
Flexible, best business practices
Functions that work in real-time
Internet-enabled
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18. Core ERP Functions Accounting Financial Manufacturing Production
Transportation
Sales and distribution
Human resource
Supply chain
Customer relationship
E-business

19. ERP Systems VENDOR/WEB ADDRESS TARGET MARKET SAP (www.sap.com)
Large businesses
Oracle/PeopleSoft (
SSA Global (Baan) (
Microsoft (Great Plains) (
Small-to-medium businesses
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20. ERP Systems ERP systems are big business
At the top of the IT spending list is the ERP market
The United States federal government will spend $7.7 billion on ERP products and services in fiscal year 2009
Up 37 percent from 2004 spending of $5.6 billion
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21. ERP Systems Advantages… Disadvantages Reliable information access
Avoid redundant data and operations
Cost reduction
See more on page 322
Disadvantages
Time-consuming
Expensive
Vendor dependence
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22. Evolution of ERP Systems
The early stage of ERP was carried out in the 1970’s through a system called Materials Requirement Planning (MRP)
Early 1980s MRP was reengineered under the name of Manufacturing Resources Planning or MRPII
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23. Evolution of ERP Systems
The beginning of the 1990’s came enterprise resource planning (ERP)
ERP systems have evolved into what is now commonly referred to as ERPII
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24. Evolution of ERP Systems
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25. ERP Vendors & Market Trends
The top dominating ERP software suppliers are:
SAP
Oracle/PeopleSoft
SSA Global
Microsoft
Together they control more than 70 % of the multi­billion dollar global market
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26. ERP Vendors & Market Trends
Complete list is very long
Invensys (
Epicor (
Mapics (
Navison (
Deltek (
Many more on page 325
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27. ERP Vendors & Market Trends
The ERP market has been growing at a rate more than 30 %
The growth of the ERP market has been boosted both by business reasons as well as by technical reasons
The main cited reason is globalization
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28. 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
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29. 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
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30. 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
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31. 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
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32. 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
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33. 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
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34. 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
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35. 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
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36. 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
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37. INFORMATION SYSTEMS INFRASTRUCTURE
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38. 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
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39. 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
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40. Why Infrastructure Matters
IT infrastructure should exhibit several key traits, such as:
Efficiency
Effectiveness
Agility
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41. Why Infrastructure Matters
Translating the architecture into an infrastructure entails creating details about certain technologies:
Hardware
Software
Network
Information
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42. INFORMATION TECHNOLOGY INFRASTRUCTURE
There are four types of information technology infrastructures:
Decentralized infrastructure
Centralized infrastructure
Distributed infrastructure
Client/server infrastructure
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43. INFORMATION TECHNOLOGY INFRASTRUCTURE
Characteristics
Decentralized
Centralized
Distributed
Client/Server
Cost efficiency
Moderate
Excellent
Very reasonable
Data location
Management Ease
Simple
Easy
Difficult
Network performance
Constrained
Varies
Processing location
Shared
User control
Full
Very limited
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44. 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
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45. Decentralized Infrastructure
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46. Centralized Infrastructure
A centralized infrastructure involves sharing of information systems in one central area or one central mainframe
Mainframes were originally the only computers available for business
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47. Centralized Infrastructure
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48. Distributed Infrastructure
A distributed infrastructure involves distributing the information and processing power of IT systems via a network
By connecting all the information systems via a distributed infrastructure, all locations can share information and applications
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49. Distributed Infrastructure
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50. 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
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51. Client/Server Infrastructure
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52. 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
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53. Other Types of Infrastructure
A 1-tier infrastructure is the most basic setup because it involves a single tier on a single machine
A 2-tier infrastructure is the basic client/server relationship
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54. Other Types of Infrastructure
A 3-tier infrastructure is the most common approach used for Web applications today
An n-tier infrastructure balances the work of the network over several different servers
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55. Other Types of Infrastructure
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56. 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
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57. 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
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58. 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
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
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59. Disaster Recovery Plan
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60. 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
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61. Why Integration Is Necessary
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
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62. 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
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63. 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
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64. Benefits of Integration
Many of the benefits can be easily measured in financial terms
Cost reduction
Reduction of inventory costs
Reduction of personnel costs
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65. Benefits of Integration
RANK
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
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66. Integration Obstacles
People
Process
Technology
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67. CAN YOU… Define an enterprise system.
Describe an enterprise resource planning (ERP) system.
List and describe the seven “ilities.”
McGraw-Hill
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.

68. CAN YOU… List the key traits that an IT infrastructure should exhibit.
Describe the differences among the four types of IT infrastructures.
Explain the difference between backup and recovery.
McGraw-Hill
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.

69. CAN YOU… State the purpose of a disaster recovery plan.
Explain the need for system integration.