2. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Architecture Class 5 Feb 4, 2003

3. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Topics Ch. 6 from Pearlson ERP Technology Note en passant CISCO Systems Architecture Case

4. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Figure 6.2 From strategy to business requirements Strategy Goal Biz. Req.

5. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Figure 6.3 From business requirements to architecture Biz. Req.Biz. Proc. Arch. Req. Architecture

6. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Figure 6.4 From architecture to infrastructure Interface Spec. Data Protocol Func. Spec. SW Spec. HW Spec. Architecture

7. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Information System Components Information systems have 4 basic components: Hardware: physical components that handle the computation, storage and transmission of data. Software: programs that run on hardware and enable work to be performed Network: hardware and software components connected according to a common protocol to create a shared computing environment. Data: numbers and text that the IT infrastructure performs work on.

8. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 A Framework for the translation (See Figure 6.5a in text). The framework for translating business strategy into an IT architecture begins with a simple overview of the current IS components, asking “what, who and where” for each. For example, for hardware: What hardware does the firm have? Who manages, uses and owns it? Where is it located? Where is it used? Similar questions apply to the software, network and data components of the system.

9. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 A Framework for translation(cont.) The next step is to ask questions about the future IT architecture and infrastructure for the components of the system under development: For example, for hardware: Arch.: Does our strategy require thick or thin clients? Infra.: What hard drives to we use on the thick clients? Arch.: Who knows most about servers in the the firm? Infra.: Who will operate the sever? Arch.: Does out architecture require centralized or decentralized servers? Infra.: Must we hire a server administrator for the Tokyo office?

10. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Examples of Architectures Two examples of generic architectural styles are client/server and mainframe architectures. Client/server architecture is an example of a type of architecture that is growing in use. Because it is modular, it is easy to add additional servers to a client/server architecture. Mainframe architecture has a central computer and is easier to manage in some ways because of this.

11. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 BluntCo. fictitious case The following fictitious case for BluntCo., a cigar clipper maker is intended to illustrate the process of creating IT architecture and infrastructure. The process includes four steps: –Step 1: Defining the Strategic Goals –Step 2: Define Related Architectural Goals –Step 3: Apply Strategy-to-Infrastructure Framework –Step 4: Evaluate Additional Issues

12. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Step 1: Defining the Strategic Goals Blunt Cos. business strategy is to respond to possible changes in demand by outsourcing clipper manufacturing. The company’s strategic goals are as follows: –To lower costs by outsourcing manufacturing –To lower costs by clipper distribution –To improve market responsiveness by outsourcing clipper manufacturing –To improve market responsiveness by outsourcing clipper distribution

13. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Step 2: Define Related Architectural Goals Consider the first goal: outsourcing clipper manufacturing. How can the company’s IT architecture support this goal? It must provide the following interfaces to its new manufacturing partners: –Sales to mfg. partners: send forecasts, confirm orders received –Mfg. partner to sales: send capacity, confirm orders shipped –Mfg. partner to accounting: confirm orders shipped, electronic invoices, various inventory levels, returns –Accounting to mfg. partners: transfer funds for orders fulfilled

14. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Step 3: Apply Strategy to Infrastructure Framework Translating the strategic goals to the architectural and infrastructural framework means asking the what, who and where questions discussed before. For example, for the network: –Arch.: What is the anticipated volume of transactions between BluntCo and its manufacturing partners? –High volume may require leased lines to carry transaction data, dial-up connections may suffice for low volume (I.e., what’s the best leased line to use?). Figure 6.7 presents a detailed list of questions.

15. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Step 4: Evaluate Additional Issues The last step is to compare managerial considerations such as strategic time frame, technological advances, etc., with the architectural goals listed in step 2. For example, regarding HR compatibility: –Arch.:The new model will displace some current human resources. BluntCo must analyze costs and the effect on morale. –Infra.: Current staff not familiar with EDI; must be trained, some new staff hired. BluntCo must analyze associated costs.

16. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 ERP Tech Note The Footprint

17. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Managers Beliefs ERP CANT help me, I’m special We CANT make the changes to make it work And if you make me… We’ll all die a horrible death

18. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Business Issues/ Considerations Level of Standardization in Business Process –What are arguments each way? Single Vendor or Best in Breed –Why do 60% of companies adopt best of breed Project Staffing Model –Where does the staff come from? –Where does it go when you are done?

19. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 CISCO SYSTEMS ARCH

20. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 How did CISCO Deal with the Management Belief Problems?

21. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 What decisions did CISCO reach? Level of standardization? Single Vendor /BoB? Project Staffing Model?

22. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 What decisions have your firms made? Level of Standardization Single Vendor How IT projects are staffed Why???

23. SCHOOL OF BUSINESS ADMINISTRATION BA 530 – John A. Hengeveld Winter 2003 Key questions How was the decision made to implement ERP? Evaluate the analysis made to recommend ERP to the board and the quality of the justification? (propose improvements) What made it possible to implement ERP in 9 months at CISCO? How did CISCO build out their I-Net to electronically connect with the customer? What benefits were enabled by this initiative? Identify the main benefits of the strategic I-net at Cisco, what benefits do you think they achieved?