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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 Business Driven Information Business Driven Information Systems 2e Systems 2e
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Page 1: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 2: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 3: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

MANAGING ENTERPRISE ARCHITECTURES

MANAGING ENTERPRISE ARCHITECTURES

SECTION 5.1

Page 4: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 5: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-5

LEARNING OUTCOMES

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

5.4 Compare web services and open systems

Page 6: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 7: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-7

ENTERPRISE ARCHITECTURES

• Primary goals of enterprise architectures

Page 8: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-8

ENTERPRISE ARCHITECTURES

Page 9: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 10: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-10

INFORMATION ARCHITECTURE

Page 11: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 12: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 13: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 14: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-14

Disaster Recovery

• Financial Institutions Worldwide Spending on Disaster Recovery

Page 15: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 16: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-16

Disaster Recovery

Page 17: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 18: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 19: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-19

Information Security

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

Page 20: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

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5-21

INFRASTRUCTURE ARCHITECTURE

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INFRASTRUCTURE ARCHITECTURE

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

2. Scalability

3. Reliability

4. Availability

5. Performance

Page 23: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 24: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 25: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 26: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

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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

Page 28: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 29: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 30: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-30

Web Services

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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

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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

Page 33: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 34: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

ARCHITECTURE TRENDSARCHITECTURE TRENDSARCHITECTURE TRENDSARCHITECTURE TRENDS

SECTION 5.2

Page 35: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 36: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-36

LEARNING OUTCOMES

5.7 Identify the logical functions used in a virtualized environment

5.8 Explain the business benefits of grid computing

Page 37: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 38: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 39: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-39

SERVICE ORIENTED ARCHITECTURE

Page 40: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-40

SOA Business Benefits

• The key technical concepts of SOA are:– Services

– Interoperability

– Loose coupling

Page 41: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-41

SOA Business Benefits

Page 42: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 43: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-43

Service

Page 44: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 45: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 46: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 47: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-47

VIRTUALIZATION

Page 48: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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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

Page 49: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-49

What are Virtual Machines?

Page 50: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 51: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-51

Additional Virtualization Benefits

• Rapid application deployment

• Dynamic load balancing

• Streamlined disaster recovery

Page 52: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 53: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-53

GRID COMPUTING

Page 54: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 55: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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

Page 56: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

5-56

Grid Computing Business Benefits

Page 57: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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?

Page 58: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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?

Page 59: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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?

Page 60: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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?

Page 61: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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?

Page 62: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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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?

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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?

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5-64

BUSINESS DRIVEN BEST SELLERS

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

Page 65: Business Driven Information Systems, Chapter 5 by Baltzan & Phillips

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BUSINESS DRIVEN BEST SELLERS

• DOES IT MATTER?, by Nicholas G. Carr


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