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Session 2 - IT Infrastructure.ppt

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ENRIQUE EGLESIAS

The document discusses information systems and IT infrastructure. It describes four main actors in information systems: suppliers of hardware/software, business firms seeking value from technology, managers/employees seeking business value, and the legal/social/cultural context. It also discusses the evolution of IT infrastructure from mainframes to client/server systems to enterprise computing and cloud computing. The core components of IT infrastructure are described as computer hardware, operating systems, enterprise applications, data management, networking, internet platforms, and consulting services.

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2.1 © 2006 by Prentice Hall Lecture 2 Information Systems in the Enterprise and IT Infrastructure
2.2 © 2006 by Prentice Hall Four main actors: Suppliers of hardware and software (the technologists); business firms making investments and seeking to obtain value from the technology; managers and employees seeking to achieve business value (and other goals); and the contemporary legal, social, and cultural context (the firm’s environment). Together these actors produce what we call management information systems Management Information Systems 8/e Chapter 1 Managing the Digital Firm Socio-Technical Systems
2.3 © 2006 by Prentice Hall Optimize systems performance: • Technology and organization • Organizations mutually adjust to one another until fit is satisfactory Management Information Systems 8/e Chapter 1 Managing the Digital Firm Socio-Technical Systems
2.4 © 2006 by Prentice Hall Management Information Systems 8/e Chapter 1 Managing the Digital Firm SOURCE: Liker, et al, 1987 Figure 1-7 Socio-technical Systems CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
2.5 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems Business processes: • Manner in which work is organized, coordinated, and focused to produce a valuable product or service • Concrete work flows of material, information, and knowledge—sets of activities • Unique ways to coordinate work, information, and knowledge • Ways in which management chooses to coordinate work INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
2.6 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Examples of Business Processes Manufacturing and production: • Assembling product, checking quality, producing bills of materials Sales and marketing: • Identifying customers, creating customer awareness, selling INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Table 2.6
2.7 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Finance & accounting: • Paying creditors, creating financial statements, managing cash accounts Human resources: • Hiring employees, evaluating performance, enrolling employees in benefits plans INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Examples of Business Processes (Continued) Table 2.6 continued
2.8 © 2006 by Prentice Hall
2.9 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems Cross-Functional Business Processes: • Transcend boundary between sales, marketing, manufacturing, and research and development • Group employees from different functional specialties to a complete piece of work Example: Order Fulfillment Process INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
2.10 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise The Order Fulfillment Process Figure 2-12 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
2.11 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems (Continued) • Information systems help organizations achieve great efficiencies by automating parts of processes • IS also contributes to completely rethinking processes. • Business processes typically span several different functional areas. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
2.12 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Types of Information Systems Figure 2-1
2.13 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Different Kinds of Systems 1. Operational-level systems: support operational managers, keeping track of the elementary activities and transactions 2. Management-level systems: serve the monitoring, controlling, decision-making, and administrative activities 3. Strategic-level systems: help senior management tackle and address strategic issues Three main categories of information systems serve different organizational levels:
2.14 © 2006 by Prentice Hall Types of Information Systems
2.15 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS The Four Major Types of Information Systems Figure 2-2
2.16 © 2006 by Prentice Hall OSS • Operations Support Systems- Is to process business transactions, control industrial processes, support communications and collaboration, update corporate databases efficiently -- TPS- records business transaction – Process Control Systems – monitor & control physical processes. Water reservoir system, power generation system – Enterprise Collaboration Systems- e-mail,chat & video conferencing group
2.17 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Transaction Processing Systems (TPS) • A computerized system that performs and records the daily routine transactions necessary to the conduct of the business such as • Sales order entry, hotel reservations, payroll, employee record keeping • Answer routine question and track flow of transaction • Provides status of internal operation Batch – transaction data accumulate over time, processed periodically. Real-time – data processed immediately after a transaction occurs.
2.18 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS A Symbolic Representation for a Payroll TPS Figure 2-3
2.19 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Typical Applications of TPS Figure 2-4
2.20 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information Systems (MIS) – pre-specified reports & displays to support decision- making for mid level Managers • Inputs: High volume transaction level data • Processing: Simple models • Outputs: Summary reports/current performance • Users: Middle managers Example: Annual Sales figure of a particular product category
2.21 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information Systems (MIS) (continued) Figure 2-5
2.22 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information Systems (MIS) (continued) Figure 2-6 A sample MIS report
2.23 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Decision-Support Systems (DSS) Non routine decision making for middle management • Inputs: Output from TPS and MIS • Processing: Interactive • Outputs: Decision analysis • Users: Mid-level Managers Example: Double sales, what production? Voyage estimating system
2.24 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Decision-Support Systems (DSS) (Continued) Voyage-estimating decision-support system Figure 2-7
2.25 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS EXECUTIVE SUPPORT SYSTEMS (ESS): Addresses non-routine decisions requiring judgment, evaluation and insight • Inputs: Aggregate data (TPS,MIS,DSS) • Processing: Interactive • Outputs: Projections • Users: Senior managers Example: 5 year operating plan
2.26 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Model of a Typical Executive Support System Figure 2-8
2.27 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued) • Top Level Management • Designed to the individual senior manager • Ties CEO to all levels • Very expensive to keep up • Extensive support staff
2.28 © 2006 by Prentice Hall
2.29 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing Systems SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Order processing Enter, process, and track orders Operational Pricing analysis Determine prices for products and services Management Sales trend forecasting Prepare 5-year sales forecasts Strategic Table 2-2
2.30 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Machine control Control the actions of machines and equipment Operational Production planning Decide when and how many products should be produced Management Facilities location Decide where to locate new production facilities Strategic Manufacturing and Production Systems
2.31 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Overview of an Inventory System Figure 2-10 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
2.32 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Financing & Accounting Systems (Continued) SYSTEM DESCRIPTION ORGANIZATION- AL LEVEL Accounts receivable Tracks money owed the firm Operational Budgeting Prepares short-term budgets Management Profit planning Plans long-term profits Strategic Table 2-4
2.33 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems (Continued) SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Training and development Tracks employee training, skills, and performance appraisals Operational Compensation analysis Monitors the range and distribution of employee wages, salaries, and benefits Management Human resources planning Plans the long-term labor force needs of the organization Strategic Table 2-5
2.34 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems (Continued) An Employee Recordkeeping System Figure 2-11 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
2.35 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Relationship of Systems to One Another Interrelationships among systems Figure 2-9
2.36 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Relationship of Systems to One Another In contemporary digital firms, the different types of systems are closely linked to one another. This is the ideal. In traditional firms these systems tend to be isolated from one another, and information does not flow seamlessly from one end of the organization to the other. Efficiency and business value tend to suffer greatly in these traditional firms
2.37 © 2006 by Prentice Hall Management Information Systems • IT infrastructure: – Set of physical devices and software required to operate enterprise – Set of firmwide services including: • Computing platforms providing computing services • Telecommunications services • Data management services • Application software services • Physical facilities management services • IT management, standards, education, research and development services – “Service platform” perspective more accurate view of value of investments IT Infrastructure CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 37
2.38 © 2006 by Prentice Hall Management Information Systems CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES • Evolution of IT infrastructure – General-purpose mainframe & minicomputer era: 1959 to present • 1958 IBM first mainframes introduced • 1965 Less expensive DEC minicomputers introduced – Personal computer era: 1981 to present • 1981 Introduction of IBM PC • Proliferation in 80s, 90s resulted in growth of personal software – Client/server era: 1983 to present • Desktop clients networked to servers, with processing work split between clients and servers • Network may be two-tiered or multitiered (N-tiered) • Various types of servers (network, application, Web) IT Infrastructure © Prentice Hall 2011 38
2.39 © 2006 by Prentice Hall Management Information Systems IT Infrastructure STAGES IN IT INFRASTRUCTU RE EVOLUTION Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution. FIGURE 5-2 CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 39
2.40 © 2006 by Prentice Hall Management Information Systems • Evolution of IT infrastructure (cont.) – Enterprise computing era: 1992 to present • Move toward integrating disparate networks, applications using Internet standards and enterprise applications – Cloud Computing: 2000 to present • Refers to a model of computing where firms and individuals obtain computing power and software applications over the Internet or other network • Fastest growing form of computing IT Infrastructure CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 40
2.41 © 2006 by Prentice Hall Management Information Systems IT Infrastructure STAGES IN IT INFRASTRUCTU RE EVOLUTION (cont.) Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution. FIGURE 5-2 CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 41
2.42 © 2006 by Prentice Hall Management Information Systems IT Infrastructure A MULTITIERED CLIENT/SERVER NETWORK (N-TIER) In a multitiered client/server network, client requests for service are handled by different levels of servers. FIGURE 5-3 CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 42
2.43 © 2006 by Prentice Hall Management Information Systems • IT Infrastructure has 7 main components 1. Computer hardware platforms 2. Operating system platforms 3. Enterprise software applications 4. Data management and storage 5. Networking/telecommunications platforms 6. Internet platforms 7. Consulting system integration services Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 43
2.44 © 2006 by Prentice Hall Management Information Systems IT Infrastructure THE IT INFRASTRUCTU RE ECOSYSTEM There are seven major components that must be coordinated to provide the firm with a coherent IT infrastructure. Listed here are major technologies and suppliers for each component. FIGURE 5-9 CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 44
2.45 © 2006 by Prentice Hall Management Information Systems • Computer hardware platforms – Client machines • Desktop PCs, mobile devices – PDAs, laptops – Servers • Blade servers: ultrathin computers stored in racks – Mainframes: • IBM mainframe equivalent to thousands of blade servers – Top chip producers: AMD, Intel, IBM – Top firms: IBM, HP, Dell, Sun Microsystems Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 45
2.46 © 2006 by Prentice Hall Management Information Systems • Operating system platforms – Operating systems • Server level: 75% run Windows; 25% run Unix or Linux • Client level: – 90% run Microsoft Windows (XP, 2000, CE, etc.) – Handheld device OS’s (Android, iPhone OS) – Cloud computing OS’s (Google’s Chrome OS) • Enterprise software applications – Enterprise application providers: SAP and Oracle – Middleware providers: BEA Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 46
2.47 © 2006 by Prentice Hall Management Information Systems • Data management and storage – Database software: •IBM (DB2), Oracle, Microsoft (SQL Server), Sybase (Adaptive Server Enterprise), MySQL – Physical data storage: •EMC Corp (large-scale systems), Seagate, Maxtor, Western Digital – Storage area networks (SANs): •Connect multiple storage devices on dedicated network Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 47
2.48 © 2006 by Prentice Hall Management Information Systems • Networking/telecommunications platforms – Telecommunication services •Telecommunications, cable, telephone company charges for voice lines and Internet access •AT&T, Verizon – Network operating systems: •Windows Server, Novell, Linux, Unix – Network hardware providers: •Cisco, Alcatel-Lucent, Nortel, Juniper Networks Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 48
2.49 © 2006 by Prentice Hall Management Information Systems • Internet platforms – Hardware, software, management services to support company Web sites, (including Web hosting services) intranets, extranets – Internet hardware server market: Dell, HP/Compaq, IBM – Web development tools/suites: Microsoft (FrontPage, .NET) IBM (WebSphere) Sun (Java), independent software developers: Adobe, RealMedia Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 49
2.50 © 2006 by Prentice Hall Management Information Systems • Consulting and system integration services – Even large firms do not have resources for a full range of support for new, complex infrastructure – Software integration: ensuring new infrastructure works with legacy systems – Legacy systems: older TPS created for mainframes that would be too costly to replace or redesign – Accenture, IBM Global Services, EDS, Infosys, Wipro Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 50
2.51 © 2006 by Prentice Hall Management Information Systems • The emerging mobile digital platform – Cell phones, smartphones (BlackBerry, iPhone) •Have assumed data transmission, Web surfing, e-mail and IM duties – Netbooks: •Small, low-cost lightweight notebooks optimized for wireless communication and core computing tasks – Tablets (iPad) – Networked e-readers (Kindle) Contemporary Hardware Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 51
2.52 © 2006 by Prentice Hall Management Information Systems • Grid computing – Connects geographically remote computers into a single network to combine processing power and create virtual supercomputer – Provides cost savings, speed, agility • Virtualization – Allows single physical resource to act as multiple resources (i.e., run multiple instances of OS) – Reduces hardware and power expenditures – Facilitates hardware centralization Contemporary Hardware Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 52
2.53 © 2006 by Prentice Hall Management Information Systems • Cloud computing – On-demand (utility) computing services obtained over network • Infrastructure as a service • Platform as a service • Software as a service – Cloud can be public or private – Allows companies to minimize IT investments – Drawbacks: Concerns of security, reliability Contemporary Hardware Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 53
2.54 © 2006 by Prentice Hall Management Information Systems • Green computing – Practices and technologies for manufacturing, using, disposing of computing and networking hardware • Autonomic computing – Industry-wide effort to develop systems that can configure, heal themselves when broken, and protect themselves from outside intruders – Similar to self-updating antivirus software; Apple and Microsoft both use automatic updates • High performance, power-saving processors – Multi-core processors Contemporary Hardware Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 54
2.55 © 2006 by Prentice Hall Management Information Systems • Software outsourcing and cloud services – Three external sources for software: 1. Software packages and enterprise software 2. Software outsourcing (domestic or offshore) – Domestic: » Primarily for middleware, integration services, software support – Offshore: » Primarily for lower level maintenance, data entry, call centers, although outsourcing for new-program development is increasing Contemporary Software Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 55
2.56 © 2006 by Prentice Hall Management Information Systems • Three external sources for software (cont.) 3. Cloud-based software services • Software as a service (SaaS) • Accessed with Web browser over Internet • Ranges from free or low-cost services for individuals to business and enterprise software • Users pay on subscription or per-transaction • E.g. Salesforce.com • Service Level Agreements (SLAs): formal agreement with service providers Contemporary Software Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 56
2.57 © 2006 by Prentice Hall Management Information Systems • Making wise infrastructure investments – Amount to spend on IT is complex question • Rent vs. buy, outsourcing – Total cost of ownership (TCO) model • Analyzes direct and indirect costs • Hardware, software account for only about 20% of TCO • Other costs: Installation, training, support, maintenance, infrastructure, downtime, space and energy • TCO can be reduced through use of cloud services, greater centralization and standardization of hardware and software resources Management Issues CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 57
2.58 © 2006 by Prentice Hall Management Information Systems • Competitive forces model for IT infrastructure investment 1. Market demand for firm’s services 2. Firm’s business strategy 3. Firm’s IT strategy, infrastructure, and cost 4. Information technology assessment 5. Competitor firm services 6. Competitor firm IT infrastructure investments Management Issues CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 58
2.59 © 2006 by Prentice Hall Thank you! ???

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Session 2 - IT Infrastructure.ppt

  • 1. 2.1 © 2006 by Prentice Hall Lecture 2 Information Systems in the Enterprise and IT Infrastructure
  • 2. 2.2 © 2006 by Prentice Hall Four main actors: Suppliers of hardware and software (the technologists); business firms making investments and seeking to obtain value from the technology; managers and employees seeking to achieve business value (and other goals); and the contemporary legal, social, and cultural context (the firm’s environment). Together these actors produce what we call management information systems Management Information Systems 8/e Chapter 1 Managing the Digital Firm Socio-Technical Systems
  • 3. 2.3 © 2006 by Prentice Hall Optimize systems performance: • Technology and organization • Organizations mutually adjust to one another until fit is satisfactory Management Information Systems 8/e Chapter 1 Managing the Digital Firm Socio-Technical Systems
  • 4. 2.4 © 2006 by Prentice Hall Management Information Systems 8/e Chapter 1 Managing the Digital Firm SOURCE: Liker, et al, 1987 Figure 1-7 Socio-technical Systems CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
  • 5. 2.5 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems Business processes: • Manner in which work is organized, coordinated, and focused to produce a valuable product or service • Concrete work flows of material, information, and knowledge—sets of activities • Unique ways to coordinate work, information, and knowledge • Ways in which management chooses to coordinate work INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
  • 6. 2.6 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Examples of Business Processes Manufacturing and production: • Assembling product, checking quality, producing bills of materials Sales and marketing: • Identifying customers, creating customer awareness, selling INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Table 2.6
  • 7. 2.7 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Finance & accounting: • Paying creditors, creating financial statements, managing cash accounts Human resources: • Hiring employees, evaluating performance, enrolling employees in benefits plans INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications Examples of Business Processes (Continued) Table 2.6 continued
  • 8. 2.8 © 2006 by Prentice Hall
  • 9. 2.9 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems Cross-Functional Business Processes: • Transcend boundary between sales, marketing, manufacturing, and research and development • Group employees from different functional specialties to a complete piece of work Example: Order Fulfillment Process INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
  • 10. 2.10 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise The Order Fulfillment Process Figure 2-12 INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
  • 11. 2.11 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Business Processes and Information Systems (Continued) • Information systems help organizations achieve great efficiencies by automating parts of processes • IS also contributes to completely rethinking processes. • Business processes typically span several different functional areas. INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
  • 12. 2.12 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Types of Information Systems Figure 2-1
  • 13. 2.13 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Different Kinds of Systems 1. Operational-level systems: support operational managers, keeping track of the elementary activities and transactions 2. Management-level systems: serve the monitoring, controlling, decision-making, and administrative activities 3. Strategic-level systems: help senior management tackle and address strategic issues Three main categories of information systems serve different organizational levels:
  • 14. 2.14 © 2006 by Prentice Hall Types of Information Systems
  • 15. 2.15 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS The Four Major Types of Information Systems Figure 2-2
  • 16. 2.16 © 2006 by Prentice Hall OSS • Operations Support Systems- Is to process business transactions, control industrial processes, support communications and collaboration, update corporate databases efficiently -- TPS- records business transaction – Process Control Systems – monitor & control physical processes. Water reservoir system, power generation system – Enterprise Collaboration Systems- e-mail,chat & video conferencing group
  • 17. 2.17 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Transaction Processing Systems (TPS) • A computerized system that performs and records the daily routine transactions necessary to the conduct of the business such as • Sales order entry, hotel reservations, payroll, employee record keeping • Answer routine question and track flow of transaction • Provides status of internal operation Batch – transaction data accumulate over time, processed periodically. Real-time – data processed immediately after a transaction occurs.
  • 18. 2.18 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS A Symbolic Representation for a Payroll TPS Figure 2-3
  • 19. 2.19 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Typical Applications of TPS Figure 2-4
  • 20. 2.20 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information Systems (MIS) – pre-specified reports & displays to support decision- making for mid level Managers • Inputs: High volume transaction level data • Processing: Simple models • Outputs: Summary reports/current performance • Users: Middle managers Example: Annual Sales figure of a particular product category
  • 21. 2.21 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information Systems (MIS) (continued) Figure 2-5
  • 22. 2.22 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Management Information Systems (MIS) (continued) Figure 2-6 A sample MIS report
  • 23. 2.23 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Decision-Support Systems (DSS) Non routine decision making for middle management • Inputs: Output from TPS and MIS • Processing: Interactive • Outputs: Decision analysis • Users: Mid-level Managers Example: Double sales, what production? Voyage estimating system
  • 24. 2.24 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Decision-Support Systems (DSS) (Continued) Voyage-estimating decision-support system Figure 2-7
  • 25. 2.25 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS EXECUTIVE SUPPORT SYSTEMS (ESS): Addresses non-routine decisions requiring judgment, evaluation and insight • Inputs: Aggregate data (TPS,MIS,DSS) • Processing: Interactive • Outputs: Projections • Users: Senior managers Example: 5 year operating plan
  • 26. 2.26 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Model of a Typical Executive Support System Figure 2-8
  • 27. 2.27 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS EXECUTIVE SUPPORT SYSTEMS (ESS) (Continued) • Top Level Management • Designed to the individual senior manager • Ties CEO to all levels • Very expensive to keep up • Extensive support staff
  • 28. 2.28 © 2006 by Prentice Hall
  • 29. 2.29 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Sales and Marketing Systems SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Order processing Enter, process, and track orders Operational Pricing analysis Determine prices for products and services Management Sales trend forecasting Prepare 5-year sales forecasts Strategic Table 2-2
  • 30. 2.30 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Machine control Control the actions of machines and equipment Operational Production planning Decide when and how many products should be produced Management Facilities location Decide where to locate new production facilities Strategic Manufacturing and Production Systems
  • 31. 2.31 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Overview of an Inventory System Figure 2-10 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
  • 32. 2.32 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Financing & Accounting Systems (Continued) SYSTEM DESCRIPTION ORGANIZATION- AL LEVEL Accounts receivable Tracks money owed the firm Operational Budgeting Prepares short-term budgets Management Profit planning Plans long-term profits Strategic Table 2-4
  • 33. 2.33 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise SYSTEMS FROM A FUNCTIONAL PERSPECTIVE Human Resource Systems (Continued) SYSTEM DESCRIPTION ORGANIZATIONAL LEVEL Training and development Tracks employee training, skills, and performance appraisals Operational Compensation analysis Monitors the range and distribution of employee wages, salaries, and benefits Management Human resources planning Plans the long-term labor force needs of the organization Strategic Table 2-5
  • 34. 2.34 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise Human Resource Systems (Continued) An Employee Recordkeeping System Figure 2-11 SYSTEMS FROM A FUNCTIONAL PERSPECTIVE
  • 35. 2.35 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Relationship of Systems to One Another Interrelationships among systems Figure 2-9
  • 36. 2.36 © 2006 by Prentice Hall Management Information Systems Chapter 2 Information Systems in the Enterprise MAJOR TYPES OF SYSTEMS IN ORGANIZATIONS Relationship of Systems to One Another In contemporary digital firms, the different types of systems are closely linked to one another. This is the ideal. In traditional firms these systems tend to be isolated from one another, and information does not flow seamlessly from one end of the organization to the other. Efficiency and business value tend to suffer greatly in these traditional firms
  • 37. 2.37 © 2006 by Prentice Hall Management Information Systems • IT infrastructure: – Set of physical devices and software required to operate enterprise – Set of firmwide services including: • Computing platforms providing computing services • Telecommunications services • Data management services • Application software services • Physical facilities management services • IT management, standards, education, research and development services – “Service platform” perspective more accurate view of value of investments IT Infrastructure CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 37
  • 38. 2.38 © 2006 by Prentice Hall Management Information Systems CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES • Evolution of IT infrastructure – General-purpose mainframe & minicomputer era: 1959 to present • 1958 IBM first mainframes introduced • 1965 Less expensive DEC minicomputers introduced – Personal computer era: 1981 to present • 1981 Introduction of IBM PC • Proliferation in 80s, 90s resulted in growth of personal software – Client/server era: 1983 to present • Desktop clients networked to servers, with processing work split between clients and servers • Network may be two-tiered or multitiered (N-tiered) • Various types of servers (network, application, Web) IT Infrastructure © Prentice Hall 2011 38
  • 39. 2.39 © 2006 by Prentice Hall Management Information Systems IT Infrastructure STAGES IN IT INFRASTRUCTU RE EVOLUTION Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution. FIGURE 5-2 CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 39
  • 40. 2.40 © 2006 by Prentice Hall Management Information Systems • Evolution of IT infrastructure (cont.) – Enterprise computing era: 1992 to present • Move toward integrating disparate networks, applications using Internet standards and enterprise applications – Cloud Computing: 2000 to present • Refers to a model of computing where firms and individuals obtain computing power and software applications over the Internet or other network • Fastest growing form of computing IT Infrastructure CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 40
  • 41. 2.41 © 2006 by Prentice Hall Management Information Systems IT Infrastructure STAGES IN IT INFRASTRUCTU RE EVOLUTION (cont.) Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution. FIGURE 5-2 CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 41
  • 42. 2.42 © 2006 by Prentice Hall Management Information Systems IT Infrastructure A MULTITIERED CLIENT/SERVER NETWORK (N-TIER) In a multitiered client/server network, client requests for service are handled by different levels of servers. FIGURE 5-3 CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 42
  • 43. 2.43 © 2006 by Prentice Hall Management Information Systems • IT Infrastructure has 7 main components 1. Computer hardware platforms 2. Operating system platforms 3. Enterprise software applications 4. Data management and storage 5. Networking/telecommunications platforms 6. Internet platforms 7. Consulting system integration services Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 43
  • 44. 2.44 © 2006 by Prentice Hall Management Information Systems IT Infrastructure THE IT INFRASTRUCTU RE ECOSYSTEM There are seven major components that must be coordinated to provide the firm with a coherent IT infrastructure. Listed here are major technologies and suppliers for each component. FIGURE 5-9 CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 44
  • 45. 2.45 © 2006 by Prentice Hall Management Information Systems • Computer hardware platforms – Client machines • Desktop PCs, mobile devices – PDAs, laptops – Servers • Blade servers: ultrathin computers stored in racks – Mainframes: • IBM mainframe equivalent to thousands of blade servers – Top chip producers: AMD, Intel, IBM – Top firms: IBM, HP, Dell, Sun Microsystems Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 45
  • 46. 2.46 © 2006 by Prentice Hall Management Information Systems • Operating system platforms – Operating systems • Server level: 75% run Windows; 25% run Unix or Linux • Client level: – 90% run Microsoft Windows (XP, 2000, CE, etc.) – Handheld device OS’s (Android, iPhone OS) – Cloud computing OS’s (Google’s Chrome OS) • Enterprise software applications – Enterprise application providers: SAP and Oracle – Middleware providers: BEA Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 46
  • 47. 2.47 © 2006 by Prentice Hall Management Information Systems • Data management and storage – Database software: •IBM (DB2), Oracle, Microsoft (SQL Server), Sybase (Adaptive Server Enterprise), MySQL – Physical data storage: •EMC Corp (large-scale systems), Seagate, Maxtor, Western Digital – Storage area networks (SANs): •Connect multiple storage devices on dedicated network Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 47
  • 48. 2.48 © 2006 by Prentice Hall Management Information Systems • Networking/telecommunications platforms – Telecommunication services •Telecommunications, cable, telephone company charges for voice lines and Internet access •AT&T, Verizon – Network operating systems: •Windows Server, Novell, Linux, Unix – Network hardware providers: •Cisco, Alcatel-Lucent, Nortel, Juniper Networks Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 48
  • 49. 2.49 © 2006 by Prentice Hall Management Information Systems • Internet platforms – Hardware, software, management services to support company Web sites, (including Web hosting services) intranets, extranets – Internet hardware server market: Dell, HP/Compaq, IBM – Web development tools/suites: Microsoft (FrontPage, .NET) IBM (WebSphere) Sun (Java), independent software developers: Adobe, RealMedia Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 49
  • 50. 2.50 © 2006 by Prentice Hall Management Information Systems • Consulting and system integration services – Even large firms do not have resources for a full range of support for new, complex infrastructure – Software integration: ensuring new infrastructure works with legacy systems – Legacy systems: older TPS created for mainframes that would be too costly to replace or redesign – Accenture, IBM Global Services, EDS, Infosys, Wipro Infrastructure Components CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 50
  • 51. 2.51 © 2006 by Prentice Hall Management Information Systems • The emerging mobile digital platform – Cell phones, smartphones (BlackBerry, iPhone) •Have assumed data transmission, Web surfing, e-mail and IM duties – Netbooks: •Small, low-cost lightweight notebooks optimized for wireless communication and core computing tasks – Tablets (iPad) – Networked e-readers (Kindle) Contemporary Hardware Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 51
  • 52. 2.52 © 2006 by Prentice Hall Management Information Systems • Grid computing – Connects geographically remote computers into a single network to combine processing power and create virtual supercomputer – Provides cost savings, speed, agility • Virtualization – Allows single physical resource to act as multiple resources (i.e., run multiple instances of OS) – Reduces hardware and power expenditures – Facilitates hardware centralization Contemporary Hardware Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 52
  • 53. 2.53 © 2006 by Prentice Hall Management Information Systems • Cloud computing – On-demand (utility) computing services obtained over network • Infrastructure as a service • Platform as a service • Software as a service – Cloud can be public or private – Allows companies to minimize IT investments – Drawbacks: Concerns of security, reliability Contemporary Hardware Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 53
  • 54. 2.54 © 2006 by Prentice Hall Management Information Systems • Green computing – Practices and technologies for manufacturing, using, disposing of computing and networking hardware • Autonomic computing – Industry-wide effort to develop systems that can configure, heal themselves when broken, and protect themselves from outside intruders – Similar to self-updating antivirus software; Apple and Microsoft both use automatic updates • High performance, power-saving processors – Multi-core processors Contemporary Hardware Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 54
  • 55. 2.55 © 2006 by Prentice Hall Management Information Systems • Software outsourcing and cloud services – Three external sources for software: 1. Software packages and enterprise software 2. Software outsourcing (domestic or offshore) – Domestic: » Primarily for middleware, integration services, software support – Offshore: » Primarily for lower level maintenance, data entry, call centers, although outsourcing for new-program development is increasing Contemporary Software Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 55
  • 56. 2.56 © 2006 by Prentice Hall Management Information Systems • Three external sources for software (cont.) 3. Cloud-based software services • Software as a service (SaaS) • Accessed with Web browser over Internet • Ranges from free or low-cost services for individuals to business and enterprise software • Users pay on subscription or per-transaction • E.g. Salesforce.com • Service Level Agreements (SLAs): formal agreement with service providers Contemporary Software Platform Trends CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 56
  • 57. 2.57 © 2006 by Prentice Hall Management Information Systems • Making wise infrastructure investments – Amount to spend on IT is complex question • Rent vs. buy, outsourcing – Total cost of ownership (TCO) model • Analyzes direct and indirect costs • Hardware, software account for only about 20% of TCO • Other costs: Installation, training, support, maintenance, infrastructure, downtime, space and energy • TCO can be reduced through use of cloud services, greater centralization and standardization of hardware and software resources Management Issues CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 57
  • 58. 2.58 © 2006 by Prentice Hall Management Information Systems • Competitive forces model for IT infrastructure investment 1. Market demand for firm’s services 2. Firm’s business strategy 3. Firm’s IT strategy, infrastructure, and cost 4. Information technology assessment 5. Competitor firm services 6. Competitor firm IT infrastructure investments Management Issues CHAPTER 5: IT INFRASTRUCTURE AND EMERGING TECHNOLOGIES © Prentice Hall 2011 58
  • 59. 2.59 © 2006 by Prentice Hall Thank you! ???