Managing Information: Information Technology Architecture Infsy 540 Dr. R. Ocker

Strategy n What is a business strategy?

Strategy n What is the relationship between IT and the business strategy?

managers’ dilemma managers’ dilemma: n cannot leave important IT decisions to computer professionals to make alone, but managers are not technically competent to make the “right” decisions without technologists

managers’ dilemma n dilemma resolved by developing an information technology architecture  bridge between strategy and technology  defines a company’s IT infrastructure  includes policies and guidelines that govern the IT resources computers, data, software, communications facilities

Link IS plan to business plan n Linkage achieved if –corporate business plan states information needs –IS plan refers to requirements of business plan & is checked against plan –non-IS managers participate in IS planning process and vice versa –corporate & IS planning calendars are in synch

Strategy n IT must support the business strategy n 3 dimensions of support –content –timing –people involved in planning process

Information Technology Architecture n provides a structure to facilitate decision making about technology investment and use

Architecture is the metaphor n Architecture is the metaphor - building IT infrastructure n to build a skyscraper: –owner starts with vision of building –works with architect who translates vision into a plan

Architecture is the metaphor n builders uses plan to construct building n owner does not have expertise in structural engineering, but must have clear ideas of what and how the building will be used. n Must understand some basics of design in order to communicate vision to the architect.

Architecture is the metaphor n to build an IT architecture: n executives start with a vision of “doing business” –vision has certain implications for information requirements n don’t have technical computer expertise n do have clear idea of business strategy n must communicate this to IT architect/planner

Architecture is the metaphor n general managers must be able to effectively integrate IT into their vision for the organization’s competitive strategy

Components of an IT Architecture n 1.Information technology inventory n 2.Functional use of the IT n 3.Strategic plan for the IT

1. Information technology inventory n answers the question “what do we have?” n basic building blocks of an IT architecture –hardware –software –data –communications links

1.Information technology inventory n this level is the “hard” technology from which most general managers are far removed n general manager should have a basic familiarity with computer systems to bridge the gap between his/her world and that of the IT architect; n IT architect must have a good understanding of the business and the organization

2.Functional use of the IT n answers the question “how do we use it?” n baseline blueprint - IT components and functions already in place n planned blueprint - prescription for future IT investments and designs n general manager and IT architect communicate on this conceptual level n 3 functional categories:applications, data and communications

3.Strategic plan for the IT n past - general managers were unfamiliar with technology and delegated IT architecture decisions to “gurus” n however, these experts in technology often had little knowledge of business strategies n now - can’t afford this approach; technology too expensive and too important n business strategy must drive IT architecture strategy

Developing an IT Architecture n designing and building an architecture is an ongoing business process n goal - to reach consensus between the IS organization and the business leaders - not easy to do

Developing an IT Architecture Steps: n 1. articulate business strategy and implications for IT architecture n start from the top with the overall business strategy and its functional IT requirements n 2. baseline the company architecture n baseline blueprint - assess existing IT n bottom-up approach

Developing an IT Architecture Steps: n 3.determine key architecture questions n outline set of questions to be answered, such as: –what technologies do we have? –are these the right technologies? –how does the current architecture support our business? –are we getting a strategic advantage from our architecture?

Developing an IT Architecture Steps: n then look into the future to the planned blueprint: –in what technologies should we invest? –how should it be structured? –how will it give us a competitive advantage? –should we outsource any functions? –etc.

Developing an IT Architecture Steps: n 4.design a planned architecture blueprint n decide what the architecture should be

Developing an IT Architecture Steps: n 5.initiate the architecture plan n two approaches - revolutionary vs. evolutionary n revolution - radical replacement of old technology n evolution - new technology layered on top of existing infrastructure; old systems gradually replaced over time

Understand? Questions?