7-1 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Chapter 7 IT Infrastructures Business-Driven Technology

7-2 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Presentation Overview Organizational Goals and Strategies Organizational Goals and Strategies Increase Employee Productivity Increase Employee Productivity Enhance Decision Making Enhance Decision Making Improve Team Collaboration Improve Team Collaboration Create Business Partnerships and Alliances Create Business Partnerships and Alliances Enable Global Reach Enable Global Reach Facilitate Organizational Transformation Facilitate Organizational Transformation IT Infrastructures and The Real World IT Infrastructures and The Real World

7-3 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Opening Case Study What’s The Difference Between Napster and Gnutella? Napster and Gnutella have similar products that use different IT infrastructures. Napster and Gnutella have similar products that use different IT infrastructures. Why is it important for a company to build a solid IT infrastructure? Why is it important for a company to build a solid IT infrastructure?

7-4 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Introduction IT infrastructure - includes the hardware, software, and telecommunications equipment that, when combined, provide the underlying foundation to support the organization’s goals. IT infrastructure - includes the hardware, software, and telecommunications equipment that, when combined, provide the underlying foundation to support the organization’s goals.

7-5 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Organizational Goals and Strategies 1. Increase employee productivity 2. Enhance decision making 3. Improve team collaboration 4. Create business partnerships and alliances 5. Enable global reach 6. Facilitate organizational transformation

7-6 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Client/server network Client/server network Internet Internet Intranets and extranets Intranets and extranets Backup/recovery Backup/recovery Disaster recovery plan Disaster recovery plan

7-7 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Client/Server Network Client/server network - a network in which one or more computers are servers and provide services to the other computers which are called clients. Client/server network - a network in which one or more computers are servers and provide services to the other computers which are called clients. Thin client - a workstation with a small amount of processing power and costs less than a full powered workstation. Thin client - a workstation with a small amount of processing power and costs less than a full powered workstation.

7-8 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Client/Server Network

7-9 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Internet Global reach - the ability to extend a company’s reach to customers anywhere there is an Internet connection, and at a much lower cost. Global reach - the ability to extend a company’s reach to customers anywhere there is an Internet connection, and at a much lower cost.

7-10 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Intranets and Extranets Intranet - an internal organizational Internet that is guarded against outside access by a special security feature called a firewall (which can be software, hardware, or a combination of the two). Intranet - an internal organizational Internet that is guarded against outside access by a special security feature called a firewall (which can be software, hardware, or a combination of the two). Extranet – is an intranet that is restricted to an organization and certain outsiders, such as customers and suppliers. Extranet – is an intranet that is restricted to an organization and certain outsiders, such as customers and suppliers.

7-11 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Backup/Recovery Backup - the process of making a copy of the information stored on a computer. Backup - the process of making a copy of the information stored on a computer. Recovery - the process of reinstalling the backup information in the event the information was lost. Recovery - the process of reinstalling the backup information in the event the information was lost.

7-12 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Disaster Recovery Plan Disaster recovery plan - a detailed process for recovering information or an IT system in the event of a catastrophic disaster such as a fire or flood. Disaster recovery plan - a detailed process for recovering information or an IT system in the event of a catastrophic disaster such as a fire or flood. Hot site - a separate and fully equipped facility where the company can move immediately after the disaster and resume business. Hot site - a separate and fully equipped facility where the company can move immediately after the disaster and resume business. Cold site - a separate facility that does not have any computer equipment, but is a place where the knowledge workers can move after the disaster. Cold site - a separate facility that does not have any computer equipment, but is a place where the knowledge workers can move after the disaster.

7-13 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Disaster Recovery Plan Disaster recovery cost curve – charts Disaster recovery cost curve – charts 1. The cost to your organization of the unavailability of information and technology. 2. The cost to your organization of recovering from a disaster over time.

7-14 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Factors That Increase Employee Productivity Availability - determining when your IT system will be available for knowledge workers to access. Availability - determining when your IT system will be available for knowledge workers to access. Accessibility - determining who has the right to access different types of IT systems and information. Accessibility - determining who has the right to access different types of IT systems and information. Reliability - ensures your IT systems are functioning correctly and providing accurate information. Reliability - ensures your IT systems are functioning correctly and providing accurate information.  Data cleansing - the process of ensuring that all information is accurate.

7-15 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Factors That Increase Employee Productivity Scalability – how well your system can adapt to increased demands. Scalability – how well your system can adapt to increased demands. Flexibility - the systems ability to change quickly. Flexibility - the systems ability to change quickly. Performance - measures how quickly an IT system performs a certain process. Performance - measures how quickly an IT system performs a certain process.  Benchmark - a set of conditions used to measure how well a product or system functions.

7-16 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Factors That Increase Employee Productivity Capacity planning - determines the future IT infrastructure requirements for new equipment and additional network capacity. Capacity planning - determines the future IT infrastructure requirements for new equipment and additional network capacity. Team Work IT Components and Factors (p. 339)

7-17 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Increase Employee Productivity Factors That Increase Employee Productivity On Your Own Increase Student Productivity (p. 340)

7-18 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enhance Decision Making Integration Integration Enterprise application integration (EAI) Enterprise application integration (EAI) Enterprise application integration middleware (EAI middleware) Enterprise application integration middleware (EAI middleware) Storage devices Storage devices

7-19 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enhance Decision Making Integration Integration - allows separate systems to communicate directly with each other by automatically exporting data files from one system and importing them into another. Integration - allows separate systems to communicate directly with each other by automatically exporting data files from one system and importing them into another.

7-20 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enhance Decision Making Enterprise Application Integration (EAI) Enterprise application integration (EAI) - the process of developing an IT infrastructure that enables employees to quickly implement new or changing business processes. Enterprise application integration (EAI) - the process of developing an IT infrastructure that enables employees to quickly implement new or changing business processes.

7-21 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enhance Decision Making Enterprise Application Integration Middleware Enterprise application integration middleware (EAI Middleware) - allows organizations to develop different levels of integration from the information level to the business process level. Enterprise application integration middleware (EAI Middleware) - allows organizations to develop different levels of integration from the information level to the business process level.

7-22 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enhance Decision Making Storage Devices A storage architecture takes into account the types and sizes of devices where information is stored. A storage architecture takes into account the types and sizes of devices where information is stored. Archived information is stored on a storage server. Archived information is stored on a storage server.

7-23 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Improve Team Collaboration Document management system Document management system Enterprise information portals (EIP) Enterprise information portals (EIP) Workflow systems Workflow systems

7-24 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Improve Team Collaboration Document Management System Document management system - manages a document through its life cycle. Document management system - manages a document through its life cycle. Primary functions of a document management system include: Primary functions of a document management system include:  Creation: For creating different document types.  Modification: Manages the integrity of a document as it’s edited.

7-25 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Improve Team Collaboration Document Management System  Security: Controls access to a document.  Approval: Sends documents to knowledge workers for approval.  Distribution: Knowledge workers distribute documents via or the web.  Archiving: Saving documents in a storage facility.

7-26 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Improve Team Collaboration Enterprise Information Portals Enterprise information portals (EIPs) - allow knowledge workers to access company information via a Web interface. Enterprise information portals (EIPs) - allow knowledge workers to access company information via a Web interface.  Collaborative processing enterprise information portal - provides knowledge workers with access to workgroup information such as s, reports, meeting minutes, and memos.  Decision processing enterprise information portal - provides knowledge workers with corporate information for making key business decisions.

7-27 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Improve Team Collaboration Workflow Systems Workflow - defines all of the steps or business rules, from beginning to end, required for a process to run correctly. Workflow - defines all of the steps or business rules, from beginning to end, required for a process to run correctly. Workflow systems - automate business processes. Workflow systems - automate business processes.

7-28 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Improve Team Collaboration Workflow Systems Messaging-based workflow systems - send work assignments through an system. Messaging-based workflow systems - send work assignments through an system. Database-based workflow systems - store the document in a central location and automatically asks the knowledge workers to access the document when it’s their turn to edit the document. Database-based workflow systems - store the document in a central location and automatically asks the knowledge workers to access the document when it’s their turn to edit the document.

7-29 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Improve Team Collaboration Workflow Systems On Your Own Working Together As A Team (p. 345)

7-30 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances Customer Relationship Management (CRM) Systems Customer Relationship Management (CRM) Systems Sales Force Automation (SFA) Systems Sales Force Automation (SFA) Systems Electronic Catalog Electronic Catalog Supply Chain Management (SCM) Systems Supply Chain Management (SCM) Systems

7-31 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances Customer Relationship Management Systems Customer relationship management (CRM) systems - use information about customers to gain insights into their needs, wants, and behaviors in order to serve them better. Customer relationship management (CRM) systems - use information about customers to gain insights into their needs, wants, and behaviors in order to serve them better.

7-32 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances Customer Relationship Management Systems Front office systems - the primary interface to customers and sales channels, and send all of the customer information to the data warehouse. Front office systems - the primary interface to customers and sales channels, and send all of the customer information to the data warehouse. Back office systems - used to fulfill and support customer orders, and send all of the customer information to the data warehouse. Back office systems - used to fulfill and support customer orders, and send all of the customer information to the data warehouse.

7-33 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances Customer Relationship Management Systems A sample CRM infrastructure A sample CRM infrastructure

7-34 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances Sales Force Automation Systems Sales force automation (SFA) systems - automatically track all of the steps in the sales process. Sales force automation (SFA) systems - automatically track all of the steps in the sales process.

7-35 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances Electronic Catalog Electronic catalog - designed to present products to customers or partners all over the world via the Web. Electronic catalog - designed to present products to customers or partners all over the world via the Web.

7-36 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Create Business Partnerships and Alliances Supply Chain Management System Supply Chain Management (SCM) Systems - track inventory and information among business processes and across companies. Supply Chain Management (SCM) Systems - track inventory and information among business processes and across companies.

7-37 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enable Global Reach Internet Service Provider (ISP) Internet Service Provider (ISP) Application Service Provider (ASP) Application Service Provider (ASP) Collocation Facilities Collocation Facilities Server Farms Server Farms

7-38 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enable Global Reach Internet Service Provider Internet service provider (ISP) - a company that provides individuals, organizations, and businesses access to the Internet. Internet service provider (ISP) - a company that provides individuals, organizations, and businesses access to the Internet.

7-39 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enable Global Reach Application Service Provider Application service provider (ASP) - a company that provides an outsourcing service for businesses software applications. Application service provider (ASP) - a company that provides an outsourcing service for businesses software applications. Service Level Agreements (SLAs) - define the specific responsibilities of the service provider and set the customer expectations. Service Level Agreements (SLAs) - define the specific responsibilities of the service provider and set the customer expectations.

7-40 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enable Global Reach Application Service Provider A sample ASP infrastructure A sample ASP infrastructure

7-41 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enable Global Reach Collocation Facilities Collocation - a company rents space and telecommunications equipment from another company, or a collocation vendor. Collocation - a company rents space and telecommunications equipment from another company, or a collocation vendor.

7-42 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Enable Global Reach Server Farm Server farm - the name of a location that stores a group of servers in a single place. Server farm - the name of a location that stores a group of servers in a single place. Web farm – is either a Web site that has multiple servers, or an ISP that provides Web site outsourcing services using multiple servers. Web farm – is either a Web site that has multiple servers, or an ISP that provides Web site outsourcing services using multiple servers.

7-43 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation Enterprise Resource Planning (ERP) and Enterprise Software Enterprise Resource Planning (ERP) and Enterprise Software Data Warehouse Data Warehouse Infrastructure Documentation Infrastructure Documentation

7-44 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation ERP and Enterprise Software Enterprise resource planning (ERP) - the method of getting and keeping an overview of every part of the business (a bird’s eye view, so to speak), so that production, development, selling, and servicing of goods and services will all be coordinated to contribute to the company’s goals and objectives. Enterprise resource planning (ERP) - the method of getting and keeping an overview of every part of the business (a bird’s eye view, so to speak), so that production, development, selling, and servicing of goods and services will all be coordinated to contribute to the company’s goals and objectives.

7-45 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation ERP and Enterprise Software Enterprise software - a suite of software that includes: Enterprise software - a suite of software that includes: 1. A set of common business applications. 2. Tools for modeling how the entire organization works. 3. Development tools for building applications unique to your organization. Computer-aided software engineering (CASE) tools - software suites that automate systems development. Computer-aided software engineering (CASE) tools - software suites that automate systems development.

7-46 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation ERP and Enterprise Software A sample enterprise software infrastructure A sample enterprise software infrastructure

7-47 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation ERP and Enterprise Software Legacy systems - are IT systems previously built using older technologies such as mainframe computers and programming languages such as COBOL. Legacy systems - are IT systems previously built using older technologies such as mainframe computers and programming languages such as COBOL. Business process reengineering (BPR) - the reinventing of processes within a business. Business process reengineering (BPR) - the reinventing of processes within a business.

7-48 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation Data Warehouse The data warehouse consolidates the ERP information along with other sources of information in order to perform and support analysis. The data warehouse consolidates the ERP information along with other sources of information in order to perform and support analysis. A data warehouse can help knowledge workers organize, understand, and analyze the information collected by the organization. A data warehouse can help knowledge workers organize, understand, and analyze the information collected by the organization.

7-49 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Facilitate Organizational Transformation Infrastructure Documentation One of the keys to building a solid IT infrastructure is to ensure every component is well documented and the documentation is available to all company employees. One of the keys to building a solid IT infrastructure is to ensure every component is well documented and the documentation is available to all company employees. A major issue for organizations today is the lack of system documentation. A major issue for organizations today is the lack of system documentation.

7-50 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved IT Infrastructures and the Real World Remember to ask yourself the following questions before approving the IT infrastructure designs: Remember to ask yourself the following questions before approving the IT infrastructure designs:  How big is your department going to grow?  Will the system be able to handle additional users?  How are your customers going to grow?  How much additional information do you expect to store each year?  How long will you maintain information in the systems?  How much history do you want to keep on each customer?

7-51 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved IT Infrastructures and the Real World  When do the people in your department work?  What are the hours you need the system to be available?  How often do you need the information backed up?  What will happen to your system if there is a disaster?  What is the disaster recovery plan for your system?  How easy is it to change the system?  How flexible is the system?

7-52 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved IT Infrastructures and the Real World Team Work Choosing An ERP Vendor (p. 356)

7-53 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Closing Case Study One University Infrastructures A university’s IT infrastructure is an important criterion students use when deciding which university they want to attend. A university’s IT infrastructure is an important criterion students use when deciding which university they want to attend. How can a university ensure they have implemented a solid IT infrastructure? How can a university ensure they have implemented a solid IT infrastructure?

7-54 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Closing Case Study Two Document Management Solutions In The Automotive Industry Ford has helped to improve product quality and customer satisfaction by implementing a document management system and employee information portal. Ford has helped to improve product quality and customer satisfaction by implementing a document management system and employee information portal. What types of IT infrastructure components has Ford used to help increase employee productivity and team collaboration? What types of IT infrastructure components has Ford used to help increase employee productivity and team collaboration?

7-55 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Summary Student Learning Outcomes 1. Explain the relationship between the organization’s roles and goals and the IT infrastructure. 2. List and describe four of the seven factors that help increase employee productivity. 3. Explain system integration and how it enhances decision making.

7-56 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Summary Student Learning Outcomes 4. List and describe two different types of workflow systems. 5. List and describe two IT infrastructure components that create business partnerships and alliances. 6. List and describe two of the four IT infrastructure components that enable global reach.

7-57 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Summary Assignments & Exercises 1. An EIP for your course 2. Sponsor of the IT Infrastructure 3. IT Infrastructure components and the real world 4. Creating the ideal infrastructure 5. The complete IT infrastructure 6. Creating a campus IT infrastructure

7-58 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Visit the Web to Learn More Online magazines Online magazines Online movie listings and reviews Online movie listings and reviews Cooking from the Internet Cooking from the Internet Highly useful miscellaneous sites Highly useful miscellaneous sites Capacity planning Capacity planning