1. McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Infrastructure, Cloud Computing, Metrics, and Business Continuity Planning: Building and Sustaining the Dynamic Enterprise

2. 7-2 STUDENT LEARNING OUTCOMES 1. Describe how an SoA can be used as a philosophical approach to help the organization of the future. 2. Define and describe the various hardware and software infrastructure considerations. 3. Describe cloud computing, its various implementations, and its advantages.

3. 7-3 STUDENT LEARNING OUTCOMES 4. Compare and contrast commonly used metrics for assessing the success of IT systems. 5. Describe business continuity planning (BCP) and its phases.

4. 7-4 MONEY WILL ALWAYS BE MONEY The use of paper money is on the decline; the use of electronic money has more than doubled in the past 10 years.

5. 7-5 Questions 1. Do you use an electronic form of money such as Google wallet or a smartphone app? If so, which one? 2. Which do you think is easier—the counterfeiting of paper money or the counterfeiting of electronic money? Why? 3. Why does the government continue to mint pennies when the process costs more than a penny?

6. 7-6 CHAPTER ORGANIZATION 1. Introduction: SoA  Learning outcome #1 2. Hardware and Software Infrastructure  Learning outcome #2 3. Cloud Computing  Learning outcome #3 4. IT Success Metrics  Learning outcome #4 5. Business Continuity Planning  Learning Outcome #5

7. 7-7 INTRODUCTION: SoA  Service-oriented architecture (SoA) - perspective that focuses on the development, use, and reuse of small self-contained blocks of code (called services) to meet all application software needs  Software code is not developed solely for a single application  Rather services are built that can be reused

8. 7-8 INTRODUCTION: SoA  Can extend SoA to the entire organization to be  Lean and agile using resources in the best way  Proactive in addressing changes in the market  Quick to respond and adapt to advances in technology  Transformational in its processes, structure and HR initiatives to match a changing and dynamic workforce

9. 7-9 INTRODUCTION: SoA  SoA focused specifically on IT  Customers  End users  Software development  Information needs  Hardware requirements

10. 7-10 INTRODUCTION: SoA Customers should be able to “plug and play” into your organization and have the same pleasurable experience regardless of the channel

11. 7-11 INTRODUCTION: SoA End users should have access to whatever information and software they need regardless of where they (the end users) are

12. 7-12 INTRODUCTION: SoA Software development should focus on reusable components (services) to accelerate systems development. This means using component- based development methodologies and taking advantage of exciting Web 2.0 applications.

13. 7-13 INTRODUCTION: SoA Information would be treated appropriately as a valuable organizational resource – protected, managed, organized, and made available to everyone who needs it.

14. 7-14 INTRODUCTION: SoA Hardware is both integrated and transparent.

15. 7-15 HARDWARE AND SOFTWARE INFRASTRUCTURE  Infrastructure – the structure beneath a structure  IT infrastructure is the implementation of your organization’s architecture

16. 7-16 ERP Revisited  From Chapter 2, Enterprise resource planning (ERP) system – collection of integrated software for business management, accounting, finance, supply chain management, inventory management, customer relationship management, e- collaboration, etc

17. 7-17 ERP and SoA  For ERP to integrate everything, everything must be plug-and-play components or services  All modules of an ERP vendor must be interoperable  Software from multiple ERP vendors must be interoperable  The infrastructure beneath must be hidden from users and customers

18. 7-18 ERP and SoA

19. 7-19 Supporting Network Infrastructures  Computer network – fundamental underlying infrastructure for any IT environment  Distributed  Client/server  Tiered

20. 7-20 Distributed Network Infrastructure  Distributed – distributing the information and processing power of IT systems via a network  First true network infrastructure  Processing activity is allocated to the location(s) where it can most efficiently be done

21. 7-21 Distributed Network Infrastructure

22. 7-22 Client/Server Infrastructure  Client/server infrastructure (network) – one or more computers that are servers which provide services to other computers, called clients  Servers and clients work together to optimize processing, information storage, etc  When you surf the Web, the underlying network infrastructure is client/server

23. 7-23 Client/Server Infrastructure

24. 7-24 Tiered Infrastructure  Tiered (layer) – the IT system is partitioned into tiers (layers) where each tier performs a specific type of functionality  1-tier – single machine  2-tier – basic client/server relationship  3-tier – client, application server, data or database server  N-tier – scalable 3-tier structure with more servers

25. 7-25 Tiered Infrastructure

26. 7-26 CLOUD COMPUTING  Hottest term in technology today  Cloud computing – model in which any and all IT resources are delivered as a set of services via the Internet  Application software  Processing power  Data storage  Backup facilities  Development tools  Literally everything

27. 7-27 CLOUD COMPUTING

28. 7-28 Cloud Computing Goals  Pay for only what you need and use  Real-time scalability (up or down)  Align computing costs with level of business activity  Reduce fixed costs in IT infrastructure

29. 7-29 Many Implementations of the Cloud  Software-as-a-service (SaaS)  Platform-as-a-service (PaaS)  Infrastructure-as-a-service (IaaS)

30. 7-30 Software-As-A-Service  SaaS - delivery model for software in which you pay for software on a pay- per-use basis instead of buying the software outright.  Most well known  Supports multi-tenancy - multiple people can simultaneously use a single instance of a piece of software.

31. 7-31 SaaS and Multi-Tenancy

32. 7-32 Platform-As-A-Service  PaaS – delivery model for software identical to SaaS with the additional features of 1. The ability to customize data entry forms, screens, reports, and the like 2. Access to software development tools to alter the way in which the software works by adding new modules (services) and/or making modifications to existing modules

33. 7-33 PaaS

34. 7-34 Infrastructure-As-A-Service  IaaS - model in which you acquire all your technology needs—storage hardware and data, network equipment, application software, operating system software, data backups, CPU processing capabilities, anti-you-name-it software—in the cloud.  All you need – smartphone/tablet and peripheral devices (e.g., printer)

35. 7-35 Public and Private Clouds  Public cloud – comprises cloud services that exist on the Internet offered to anyone and any business.  Amazon Web Services (AWS)  Windows Azure  Rackspace Cloud  Google Cloud Connect  ElasticHosts

36. 7-36 Public and Private Clouds  Private cloud – cloud computing services established and hosted by an organization on its internal network and available only to employees and departments within that organization.  All benefits of cloud computing, except held private within an organization

37. 7-37 Advantages of the Cloud  Lower capital expenditures  Lower barriers to entry  Immediate access to a broad range of application software  Real-time scalability

38. 7-38 IT SUCCESS METRICS  To justify costs of technology, you need to measure its success  Metrics are also called benchmarks, baseline values a system seeks to attain.  Benchmarking – process of continuously measuring system results and comparing them to benchmarks

39. 7-39 Efficiency & Effectiveness Metrics  Efficiency – doing something right  In the least time  At the lowest cost  With the fewest errors  Effectiveness – doing the right things  Getting customers to buy when they visit your site  Answering the right question with the right answer the first time

40. 7-40 Efficiency & Effectiveness Metrics Bottom-line initiatives typically focus on efficiency, while top-line initiatives tend to focus on effectiveness.

41. 7-41 Types of IT Success Metrics  Infrastructure-centric metrics  Web-centric metrics  Call center metrics

42. 7-42 Infrastructure-Centric Metrics  Infrastructure-centric metric – measure of efficiency, speed, and/or capacity of technology  Throughput – amount of information that can pass through a system in a given amount of time  Transaction speed – speed at which a system can process a transaction  System availability – the average amount of time a system is down or unavailable

43. 7-43 Infrastructure-Centric Metrics  Infrastructure-centric metric (cont’d)  Accuracy – measured inversely as error rate, or the number of errors per thousand/million that a system generates  Response time – average time to respond to a user-generated event like a mouse click  Scalability – conceptual metric related to how well a system can be adapted to increased demands

44. 7-44 Web-Centric Metrics  Web-centric metric – success of your Web and e-business initiatives  Unique visitors – # of unique visitors to a site  Total hits – number of visits to a site  Page exposures – average page exposures to an individual visitor  Conversion rate - % of potential customers who visit your site and who actually buy something

45. 7-45 Web-Centric Metrics  Web-centric metric (cont’d)  Click-through - # of people who click on an ad and are taken to another site  Cost-per-thousand – sales dollars generated per dollar of advertising  Abandoned registrations - # who start to register at your site and then abandon the process  Abandoned shopping carts - # who create a shopping cart and then abandon it

46. 7-46 Call Center Metrics  Call center metric – measures the success of call center efforts  Abandon rate - % number of callers who hang up while waiting for their call to be answered  Average speed to answer (ASA) – average time, usually in seconds, that it takes for a call to be answered by an actual person

47. 7-47 Call Center Metrics  Call center metric (cont’d)  Time service factor (TSF) - % of calls answered within a specific time frame, such as 30 or 90 seconds  First call resolution (FCR) - % of calls that can be resolved without having to call back

48. 7-48 BUSINESS CONTINUITY PLANNING  Business continuity planning (BCP) – rigorous and well-informed organizational methodology for developing a business continuity plan, a step-by-step guideline defining how the organization will recover from a disaster or extended disruption  BCP is very necessary today given terror threats, increased climate volatility, etc

49. 7-49 BUSINESS CONTINUITY PLANNING METHODOLOGY

50. 7-50 BCP METHODOLOGY 1. Organizational strategic plan 2. Analysis 3. Design 4. Implementation 5. Testing 6. Maintenance

51. 7-51 Organizational Strategic Plan  It all starts here  The strategic plan defines what is and what is not important  You must have a business continuity plan for what is important

52. 7-52 Analysis  Impact analysis – risk assessment, evaluating IT assets, their importance, and susceptibility to threat  Threat analysis – document all possible major threats to organizational assets  Impact scenario analysis – build worst- case scenario for each threat  Requirement recovery document – identifies critical assets, threats to them, and worst-case scenarios

53. 7-53 Design  Build disaster recovery plan, detailed plan for recovering from a disaster. May include  Collocation facility – rented space and telecommunications equipment  Hot site – fully equipped facility where your company can move to  Cold site – facility where your company can move to but has no computer equipment

54. 7-54 Design Disaster recovery plan should include a disaster recovery cost curve, which charts the cost of unavailable information/technology compared to the cost to recover from a disaster over time.

55. 7-55 Implementation  Engage any businesses that will provide collocation facilities, hot sites, and cold sites  Implement procedures for recovering from a disaster  Train employees  Evaluate each IT system to ensure that it is configured optimally for recovering from a disaster

56. 7-56 Testing  As opposed to traditional SDLC, testing in BCP methodology occurs after implementation  Simulate disaster scenarios  Have employees execute disaster recovery plans  Evaluate success and refine as necessary

57. 7-57 Maintenance  Perform testing annually, at a minimum  Change business continuity plan as organizational strategic plan changes  Evaluate and react to new threats  No “system” is ever complete