1. Chapter 12 Strategies for Managing the Technology Infrastructure

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

3. 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

4. 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

5. 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

6. 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

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

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

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

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

11. 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

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

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

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

15. Logical Security Photo Fingerprints Voice Eye Signature Password

16. Data Security Minimal privilege Minimal exposure

17. Communication Security Firewall Decryption Encryption Private & public key

18. Administrative Security Policy Procedure Hardware Software Employee Data

19. Application Security Input security Processing security Output security

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

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

22. 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

23. 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

24. 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

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

26. Technology Strategies High potential Strategic Key operational Support

27. 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

28. 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

29. 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

30. 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