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Chapter 7Enterprise Infrastructure,Metrics,and Business Continuity Planning:Building and Sustaining the Dynamic EnterpriseCopyright 2010 by the McGraw-Hill Companies,Inc.All rights reserved.McGraw-Hill/IrwinSTUDENT LEARNING OUTCOMES1.Describe how a service-oriented architecture can be used as a philosophical approach to help the organization of the future.2.Define and describe the various hardware and software infrastructure considerations.3.Compare and contrast commonly used metrics for assessing the success of IT systems.4.Describe business continuity planning(BCP)and its phases7-2STATE OF CALIFORNIA DIGS ITSELF OUT OF A TECHNOLOGY HOLECalifornias Governor Arnold Schwarzenegger wants the state of be an“elite”information technology organizationThats a challenging task for a government entityTeri Takai,the first statewide CIO,has her work cut out for her7-3STATE OF CALIFORNIA DIGS ITSELF OUT OF A TECHNOLOGY HOLEIntegrate IT strategies across 144 state agencies and departmentsBreak down traditional silos among those departments and agenciesReevaluate the states current project list,which includes some projects that will take 10 years to completePlanning for the retirement of 50%(5,000)of the states IT workforce7-4STATE OF CALIFORNIA DIGS ITSELF OUT OF A TECHNOLOGY HOLE1.What sort of computer-based interactions have you had with your local,county,or state government?2.In what way(s)did technology support or hinder those interactions?3.Why do government entities seem to lag behind the private sector in the use of technology?7-5CHAPTER ORGANIZATION1.Introduction:SoALearning outcome#12.Hardware and Software InfrastructureLearning outcome#23.IT Success MetricsLearning outcome#34.Business Continuity PlanningLearning Outcome#47-6INTRODUCTION:SoAIntroduced SoA in Chapter 6Service-oriented architecture(SoA)-perspective that focuses on the development,use,and reuse of small self-contained blocks of code(called services)to meet all application software needsSoftware code is not developed solely for a single applicationRather services are built that can be used and reused across all applications7-7INTRODUCTION:SoACan extend SoA to the entire organizationAn SoA organization would beLean and agile using resources in the best wayProactive in addressing changes in the marketQuick to respond and adapt to advances in technologyTransformational in its processes,structure and HR initiatives to match a changing and dynamic workforce7-8INTRODUCTION:SoASoA focused specifically on ITCustomersEnd usersSoftware developmentInformation needsHardware requirements7-9INTRODUCTION:SoACustomers should be able to“plug and Customers should be able to“plug and play”into your organization and have the play”into your organization and have the same pleasurable experience regardless same pleasurable experience regardless of the channelof the channel7-10INTRODUCTION:SoAEnd users should have access to whatever End users should have access to whatever information and software they need information and software they need regardless of where they(the end users)regardless of where they(the end users)areare7-11INTRODUCTION:SoASoftware development should focus on reusable Software development should focus on reusable components(services)to accelerate systems components(services)to accelerate systems development.This means using component-development.This means using component-based development methodologies and taking based development methodologies and taking advantage of exciting Web 2.0 applications.advantage of exciting Web 2.0 applications.7-12INTRODUCTION:SoAInformation would be treated appropriately as Information would be treated appropriately as a valuable organizational resource a valuable organizational resource protected,managed,organized,and made protected,managed,organized,and made available to everyone who needs it.available to everyone who needs it.7-13INTRODUCTION:SoAHardware is both integrated and transparent.Hardware is both integrated and transparent.7-14HARDWARE AND SOFTWARE INFRASTRUCTUREInfrastructure the structure beneath a structureIT infrastructure is the implementation of your organizations architecture7-15ERP RevisitedFrom Chapter 2,Enterprise resource planning(ERP)system collection of integrated software for business management,accounting,finance,supply chain management,inventory management,customer relationship management,e-collaboration,etc.ERP is big businessFederal government will spend$7.7 billion on ERP in 200960%of Fortune 1000 companies have ERP systems7-16ERP RevisitedDominant ERP providers SAP,Oracle/PeopleSoft,SSA Global,and MicrosoftAbout 50 or so established emerging ERP vendors that will challenge the big 47-17ERP EvolutionMRP 1970s;focus on production planning,calculating time requirements,procurement;basic automated manufacturing focusMRP II 1980s;closed the loop to include financial and accounting systems and serve as a decision support tool for managers7-18ERP EvolutionERP late 1980s/early 1990s;focus on critical“time to market”;shorter lead times;customers want it nowERP II today;focus on complete ERP integration with CRM,business intelligence,and a host of other applications across the organization7-19ERP and SoAFor ERP to integrate everything,everything must be plug-and-play components or servicesAll modules of an ERP vendor must be interoperableSoftware from multiple ERP vendors must be interoperableThe infrastructure beneath must be hidden from users and customers7-20ERP and SoA7-21SoA-Enabled ERP AdvantagesReliable information accessAvoids data and operations redundancyDelivery and cycle time reductionCost reductionEasy adaptabilityImproved scalabilityGlobal outreachE-business support7-22SoA-Enabled ERP DisadvantagesTime-consumingExpensiveLack of conformity of modulesVendor dependenceToo many featuresToo much complexityQuestionable scalabilityNot enough extended ERP capability7-23Supporting Network InfrastructuresComputer network fundamental underlying infrastructure for any IT environmentDecentralizedCentralizedDistributedClient/serverTiered7-24Decentralized Network InfrastructureDecentralized involves little or no sharing of IT and other resources such as informationAlmost nonexistent today7-25Centralized Network InfrastructureCentralized sharing information systems in one central area or on one central mainframeLike decentralized,almost nonexistent today7-26Distributed Network InfrastructureDistributed distributing the information and processing power of IT systems via a networkFirst true network infrastructureProcessing activity is allocated to the location(s)where it can most efficiently be done7-27Distributed Network Infrastructure7-28Client/Server InfrastructureClient/server infrastructure(network)one or more computers that are servers which provide services to other computers,called clientsServers and clients work together to optimize processing,information storage,etcWhen you surf the Web,the underlying network infrastructure is client/server7-29Client/Server Infrastructure7-30Tiered InfrastructureTiered(layer)the IT system is partitioned into tiers(layers)where each tier performs a specific type of functionality1-tier single machine2-tier basic client/server relationship3-tier client,application server,data or database serverN-tier scalable 3-tier structure with more servers7-31Tiered Infrastructure7-32CLOUD COMPUTINGHottest term in technology todayCloud computing model in which any and all IT resources are delivered as a set of services via the InternetApplication softwareProcessing powerData storageBackup facilitiesDevelopment toolsLiterally everything7-33CLOUD COMPUTING7-34Many Implementations of the CloudAll called?-as-a-service,or?aaSSaaS(software)pay for software on a pay-per-use basisHaaS(hardware)pay for the use of hardware on a pay-per-use basisIaaS(infrastructure)pay for the use of infrastructure components(communications servers,network servers,etc)on a pay-per use basisEaaS(everything)pay for the use of prewritten software components 7-35Advantages of the CloudDevice agnostic use any end user device to access what you need on the cloudUtility computing pay for only what you use instead of buying technologySimilar to utilities like electricity and waterSimilar to taking a taxi instead of buying a car7-36Advantages of the CloudLower capital expendituresLower barriers to entryImmediate access to a broad range of application softwareReal-time scalability7-37IT SUCCESS METRICSTo justify costs of technology,you need to measure its successMetrics are also called benchmarks,baseline values a system seeks to attain.Benchmarking process of continuously measuring system results and comparing them to benchmarks7-38Efficiency&Effectiveness MetricsEfficiency doing something rightIn the least timeAt the lowest costWith the fewest errorsEtcEffectiveness doing the right thingsGetting customers to buy when they visit your siteAnswering the right question with the right answer the first timeEtc7-39Efficiency&Effectiveness MetricsBottom-line initiatives typically focus on efficiency,while top-line initiatives Bottom-line initiatives typically focus on efficiency,while top-line initiatives tend to focus on effectiveness.tend to focus on effectiveness.7-40Types of IT Success MetricsInfrastructure-centric metricsWeb-centric metricsCall center metricsFinancial metrics7-41Infrastructure-Centric MetricsInfrastructure-centric metric measure of efficiency,speed,and/or capacity of technologyThroughput amount of information that can pass through a system in a given amount of timeTransaction speed speed at which a system can process a transactionSystem availability measured inversely as downtime,or the average amount of time a system is down or unavailable7-42Infrastructure-Centric MetricsInfrastructure-centric metric measure of efficiency,speed,and/or capacity of technologyAccuracy measured inversely as error rate,or the number of errors per thousand/million that a system generatesResponse time average time to respond to a user-generated event like a mouse clickScalability conceptual metric related to how well a system can be adapted to increased demands7-43Web-Centric MetricsWeb-centric metric measure of the success of your Web and e-business initiativesUnique visitors#of unique visitors to a site(Nielsen/Net Ratings primary metric)Total hits number of visits to a sitePage exposures average page exposures to an individual visitorConversion rate-%of potential customers who visit your site and who actually buy something7-44Web-Centric MetricsWeb-centric metric measure of the success of your Web and e-business initiativesClick-through-#of people who click on an ad and are taken to another siteCost-per-thousand sales dollars generated per dollar of advertisingAbandoned registrations-#who start to register at your site and then abandon the processAbandoned shopping carts-#who create a shopping cart and then abandon it7-45Call Center MetricsCall center metric measures the success of call center effortsAbandon rate-%number of callers who hang up while waiting for their call to be answeredAverage speed to answer(ASA)average time,usually in seconds,that it takes for a call to be answered by an actual person7-46Call Center MetricsCall center metric measures the success of call center effortsTime service factor(TSF)-%of calls answered within a specific time frame,such as 30 or 90 secondsFirst call resolution(FCR)-%of calls that can be resolved without having to call back7-47Financial MetricsUltimately,an IT system must make financial senseFinancial metrics are also called capital analysis financial modelsMany and variedYou will learn these and their applications in other classes7-48Financial Metrics7-49IT Metrics and Service Level AgreementsService level agreement(SLA)formal,contractually obligated agreement between 2 partiesSLAs must include IT success metricsSLAs are between your organization and outsourcing organizationsSLAs define how you will measure the outsourcing organizations effortsThese measures are in service level specifications(SLS)or service level objectives(SLO)7-50IT Metrics and Service Level AgreementsSLAs are also between your organization and an application service providerApplication service provider(ASP)supplies software applications(and related services)over the Internet that would otherwise reside on customers computersIf you engage an ASP,you would do so with an SLA7-51BUSINESS CONTINUITY PLANNINGBusiness continuity planning(BCP)rigorous and well-informed organizational methodology for developing a business continuity plan,a step-by-step guideline defining how the organization will recover from a disaster or extended disruptionBCP is very necessary today given terror threats,increased climate volatility,etc7-52BUSINESS CONTINUITY PLANNING METHODOLOGY7-53BCP METHODOLOGY1.Organizational strategic plan2.Analysis3.Design4.Implementation5.Testing6.Maintenance7-54Organizational Strategic PlanIt all starts hereThe strategic plan defines what is and what is not importantYou must have a business continuity plan for what is important7-55AnalysisImpact analysis risk assessment,evaluating IT assets,their importance,and susceptibility to threatThreat analysis document all possible major threats to organizational assetsImpact scenario analysis build worst-case scenario for each threatRequirement recovery document identifies critical assets,threats to them,and worst-case scenarios7-56DesignBuild disaster recovery plan,detailed plan for recovering from a disaster.May includeCollocation facility rented space and telecommunications equipmentHot site fully equipped facility where your company can move toCold site facility where your company can move to but has no computer equipment7-57DesignDisaster recovery plan should include a Disaster recovery plan should include a disaster recovery cost curvedisaster recovery cost curve,which,which charts the cost of unavailable information/technology compared to the cost to charts the cost of unavailable information/technology compared to the cost to recover from a disaster over time.recover from a disaster over time.7-58ImplementationEngage any businesses that will provide collocation facilities,hot sites,and cold sitesImplement procedures for recovering from a disasterTrain employeesEvaluate each IT system to ensure that it is configured optimally for recovering from a disaster7-59TestingAs opposed to traditional SDLC,testing in BCP methodology occurs after implementationSimulate disaster scenariosHave employees execute disaster recovery plansEvaluate success and refine as necessary7-60MaintenancePerform testing annually,at a minimumChange business continuity plan as organizational strategic plan changesEvaluate and react to new threatsNo“system”is ever complete7-61
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