Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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Business Driven Information Systems discusses various business initiatives first and how technology supports those initiatives second. The premise for this unique approach is that business initiatives should drive technology choices. Every discussion first addresses the business needs and then addresses the technology that supports those needs. This text provides the foundation that will enable students to achieve excellence in business, whether they major in operations management, manufacturing, sales, marketing, etc. BDIS is designed to give students the ability to understand how information technology can be a point of strength for an organization.ISBN: 0073195588Copyright year: 2008All works belong respectively to:Baltzan, Paige, and Amy Phillips. Business Driven Information Systems. Columbus: McGraw Hill, 2008.The publishing of these presentation slides are in no way intended to advertise the information was written by anyone but the original authors. The information is for supplemental use to the textbook written by these respected authors. I do not take credit for the information provided, and in no way mean to infringe on any copyrights imposed by The McGraw-Hill Companies.

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McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved

CHAPTER 5

ENTERPRISE ARCHITECTURES

CHAPTER 5

ENTERPRISE ARCHITECTURES

Business Driven Information Systems 2eBusiness Driven Information Systems 2e

5-2

Chapter Five Overview

• SECTION 5.1 - MANAGING ENTERPRISE ARCHITECTURES– Enterprise Architectures– Information Architecture– Infrastructure Architecture– Application Architecture

• SECTION 5.2 - ARCHITECTURE TRENDS– Service Oriented Architecture– Virtualization – Grid Computing

McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved

MANAGING ENTERPRISE ARCHITECTURES

MANAGING ENTERPRISE ARCHITECTURES

SECTION 5.1

5-4

LEARNING OUTCOMES

5.1 Explain the three components of an enterprise architecture

5.2 Describe how an organization can implement a solid information architecture

5-5

LEARNING OUTCOMES

5.3 List and describe the five-ilities in an infrastructure architecture

5.4 Compare web services and open systems

5-6

ENTERPRISE ARCHITECTURES

• Enterprise architecture - includes the plans for how an organization will build, deploy, use, and share its data, processes, and IT assets

• Enterprise architect (EA) - a person grounded in technology, fluent in business, a patient diplomat, and provides the important bridge between IT and the business

5-7

ENTERPRISE ARCHITECTURES

• Primary goals of enterprise architectures

5-8

ENTERPRISE ARCHITECTURES

5-9

INFORMATION ARCHITECTURE

• Information architecture - identifies where and how important information, such as customer records, is maintained and secured

• Enterprise information architecture should focus on:1. Backup and recovery

2. Disaster recovery

3. Information security

5-10

INFORMATION ARCHITECTURE

5-11

Backup and Recovery

• Backup - an exact copy of a system’s information

• Recovery - the ability to get a system up and running in the event of a system crash or failure and includes restoring the information backup

5-12

Backup and Recovery

• Fault tolerance - a computer system designed that in the event a component fails, a backup component or procedure can immediately take its place with no loss of service

• Failover - a backup operational mode in which the functions of a computer component (such as a processor, server, network, or database) is assumed by secondary system components when the primary component becomes unavailable through either failure or scheduled down time

5-13

Disaster Recovery

• Disaster recovery best practices include:– Mind the enterprise architectures– Monitor the quality of computer

networks that provide data on power suppliers and demand

– Make sure the networks can be restored quickly in the case of downtime

– Set up disaster recovery plans– Provide adequate staff training

5-14

Disaster Recovery

• Financial Institutions Worldwide Spending on Disaster Recovery

5-15

Disaster Recovery

• 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 cost curve - charts (1) the cost to the organization of the unavailability of information and technology and (2) the cost to the organization of recovering from a disaster over time

5-16

Disaster Recovery

5-17

Disaster Recovery

• Hot site - a separate and fully equipped facility where the company can move immediately after a disaster and resume business

• Cold site - a separate facility that does not have any computer equipment, but is a place where employees can move after a disaster

5-18

Disaster Recovery

• Business continuity planning (BCP) - is a plan for how an organization will recover and restore partially or completely interrupted critical function(s) within a predetermined time after a disaster or extended disruption

5-19

Information Security

• Good information architectures include…– A strong information security plan– Managing user access – Up-to-date antivirus software and patches

5-20

INFRASTRUCTURE ARCHITECTURE

• Infrastructure architecture - includes the hardware, software, and telecommunications equipment that, when combined, provides the underlying foundation to support the organization’s goals

• As an organization changes, its systems must be able to change to support its operations

5-21

INFRASTRUCTURE ARCHITECTURE

5-22

INFRASTRUCTURE ARCHITECTURE

• Five primary characteristics of a solid infrastructure architecture:1. Flexibility

2. Scalability

3. Reliability

4. Availability

5. Performance

5-23

Flexibility

• Organizations must watch today’s business, as well as tomorrow’s, when designing and building systems

• Systems must be flexible enough to meet all types of business changes

5-24

Scalability

• Scalability - refers to how well a system can adapt to increased demands

• Capacity planning - determines the future IT infrastructure requirements for new equipment and additional network capacity– Performing a capacity plan is one way to

ensure the IT infrastructure is scalable

5-25

Reliability

• Reliability ensures all systems are functioning correctly and providing accurate information

• Reliability is another term for accuracy when discussing the correctness of systems within the context of efficiency IT metrics

5-26

Availability

• Availability - addresses when systems can be accessed by users

• High availability - refers to a system or component that is continuously operational for a desirably long length of time

5-27

Performance

• Performance - measures how quickly a system performs a certain process or transaction (in terms of efficiency IT metrics of both speed and throughput)

• Not having enough performance capacity can have a devastating, negative impact on a business

5-28

APPLICATION ARCHITECTURE

• Application architecture - determines how applications integrate and relate to each other

• With new architectures, IT can build new business capabilities faster, cheaper, and in a vocabulary the business can understand

5-29

Web Services

• Web service - contains a repertoire of Web-based data and procedural resources that use shared protocols and standards permitting different applications to share data and services

• Interoperability - the capability of two or more computer systems to share data and resources, even though they are made by different manufacturers

5-30

Web Services

5-31

Web Services

• The two primary parts of web services are:

1. Event - detect threats and opportunities and alert those who can act on the information

2. Service - more like software products than they are coding projects• Need to be reusable if they are going to have an

impact on productivity

5-32

Open Systems

• Open system - a broad, general term that describes nonproprietary IT hardware and software made available by the standards and procedures by which their products work, making it easier to integrate them

• Open source - refers to any program whose source code is made available for use or modification as users or other developers see fit

5-33

OPENING CASE QUESTIONSVirgin Mobile

1. How can an organization use an information architecture to protect its IT investment in electronic devices outlined in the case?

2. How can an organization use the architectures mentioned in the case to protect information security?

3. Identify the five-ilites and rank them in order of importance for a cell phone (1 highest, 5 lowest)

4. Describe the importance of web services and open systems to companies such as Virgin Mobile

McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved

ARCHITECTURE TRENDSARCHITECTURE TRENDSARCHITECTURE TRENDSARCHITECTURE TRENDS

SECTION 5.2

5-35

LEARNING OUTCOMES

5.5 Describe the business value in deploying a service oriented architecture

5.6 Explain the need for interoperability and loose coupling in building today’s IT systems

5-36

LEARNING OUTCOMES

5.7 Identify the logical functions used in a virtualized environment

5.8 Explain the business benefits of grid computing

5-37

ARCHITECTURE TRENDS

• Organizations today must continually watch new architecture trends to ensure they can keep up with new and disruptive technologies

• Three architecture trends that are quickly becoming requirements for all businesses including:1. Service oriented architecture2. Virtualization3. Grid computing

5-38

SERVICE ORIENTED ARCHITECTURE

• Service oriented architecture (SOA) is a business-driven IT architectural approach that supports integrating a business as linked, repeatable tasks or services

• SOA ensures IT systems can adapt quickly, easily, and economically to support rapidly changing business needs

5-39

SERVICE ORIENTED ARCHITECTURE

5-40

SOA Business Benefits

• The key technical concepts of SOA are:– Services

– Interoperability

– Loose coupling

5-41

SOA Business Benefits

5-42

Service

• Service oriented architecture begins with a service

• (A SOA) service - can be a business task, such as checking a potential customer's credit rating only opening a new account

• Services are “like” software products

5-43

Service

5-44

Interoperability

• Interoperability - is the capability of two or more computer systems to share data and resources, even though they are made by different manufacturers

• Extensible Markup Language (XML) - a markup language for documents containing structured information

5-45

Loose Coupling

• Loose coupling - is the capability of services to be joined together on demand to create composite services, or disassembled just as easily into their functional components

• Loose coupling is a way of ensuring that the technical details are decoupled from the service

5-46

VIRTUALIZATION

• Virtualization - is a framework of dividing the resources of a computer into multiple execution environments

• It is a way of increasing physical resources to maximize the investment in hardware

5-47

VIRTUALIZATION

5-48

What are Virtual Machines?

• System virtualization - is the ability to present the resources of a single computer as if it is a collection of separate computers ("virtual machines")

• Each with its own virtual CPUs, network interfaces, storage, and operating system

5-49

What are Virtual Machines?

5-50

Virtualization Business Benefits

• Trends that have moved virtualization into the spotlight:

– Hardware being underutilized

– Data centers running out of space

– Increased energy costs

– System administration costs mounting

5-51

Additional Virtualization Benefits

• Rapid application deployment

• Dynamic load balancing

• Streamlined disaster recovery

5-52

GRID COMPUTING

• Grid computing - is an aggregation of geographically dispersed computing, storage, and network resources, coordinated to deliver improved performance, higher quality of service, better utilization, and easier access to data

5-53

GRID COMPUTING

5-54

Grid Computing Business Benefits

• Improving productivity and collaboration of virtual organizations and respective computing and data resources

• Allowing widely dispersed departments and businesses to create virtual organizations to share data and resources

• Building robust and infinitely flexible and resilient operational architectures

5-55

Grid Computing Business Benefit

• Providing instantaneous access to massive computing and data resources

• Leveraging existing capital investments, which in turn help to ensure optimal utilization and costs of computing capabilities

5-56

Grid Computing Business Benefits

5-57

OPENING CASE STUDY QUESTIONSVirgin Mobile

5. Explain the advantages Virgin Mobile has using a service oriented architecture

6. Why does Virgin Mobile need to use interoperability and loose coupling in their architecture?

7. Explain the business drivers for Virgin Mobile using virtualization

8. What business benefits would Virgin Mobile experience deploying grid computing?

5-58

CLOSING CASE ONEChicago Tribune

1. Review the five characteristics of infrastructure architecture and rank them in order of their potential impact on the Tribune Co.’s business

2. What is the disaster recovery cost curve? Where should the Tribune Co. operate on the curve?

3. Define backups and recovery. What are the risks to the Tribune’s business if it fails to implement an adequate backup plan?

5-59

CLOSING CASE ONEChicago Tribune

4. Why is a scalable and highly available enterprise architecture critical to the Tribune Co.’s current operations and future growth?

5. Identify the need for information security at the Tribune Co.

6. How could the Tribune Co. use a classified ad web service across its different businesses?

5-60

CLOSING CASE TWOThe US Open Supports SOA

1. Review the five characteristics of infrastructure architecture and rank them in order of their potential impact on the USOpen.org

2. What are the USTA security concerns regarding interoperability between the tournament database and its website?

3. How could the USTA benefit from virtualization?

5-61

CLOSING CASE TWOThe US Open Supports SOA

4. Identify the value of integrating the tournaments information with the USTA website USOpen.org?

5. Explain why a sudden surge in server utilization during the middle of the US Open could spell disaster for the USTA

6. Why is loose coupling a critical business component to the USTA architecture?

5-62

CLOSING CASE THREEeBay’s Grid

1. Review the five characteristics of infrastructure architecture and rank them in order of their potential impact on eBay’s business

2. What are the business benefits that eBay enjoys thanks to grid computing?

3. What precautions would eBay take to ensure 100 percent security?

5-63

CLOSING CASE THREEeBay’s Grid

4. How can eBay take advantage of implementing SOA?

5. Explain how eBay uses fault tolerance

6. Describe the potential value of eBay using virtualization

7. What ethical and security concerns should eBay be aware of to ensure its business operates properly?

5-64

BUSINESS DRIVEN BEST SELLERS

• THE NEW LANGUAGE OF BUSINESS: SOA & WEB 2.0, by Sandy Carter

5-65

BUSINESS DRIVEN BEST SELLERS

• DOES IT MATTER?, by Nicholas G. Carr