Chapters 7Chapters 7

ENTERPRISE ENTERPRISE INFRASTRUCTURE, INFRASTRUCTURE,

METRICS, AND BUSINESS METRICS, AND BUSINESS CONTINUITY PLANNINGCONTINUITY PLANNING

Building and Sustaining the Building and Sustaining the Dynamic EnterpriseDynamic Enterprise

INTRODUCTIONINTRODUCTION

Successful IT systems provide an Successful IT systems provide an integrated view of:integrated view of:

1.1. BusinessBusiness

2.2. Extend analytical capabilities to Extend analytical capabilities to usersusers

3.3. Leverage a corporation's Leverage a corporation's information and expertise information and expertise

INTRODUCTION: SoAINTRODUCTION: SoA Service-oriented architecture (SoA) Service-oriented architecture (SoA)

- perspective that focuses on the - perspective that focuses on the development, use, and reuse of small development, use, and reuse of small self-contained blocks of code (called self-contained blocks of code (called servicesservices) to meet all application software ) to meet all application software needsneeds

Software code is not developed solely for Software code is not developed solely for a single applicationa single application

Rather Rather servicesservices are built that can be are built that can be used and reused across all applicationsused and reused across all applications

INTRODUCTION: SoAINTRODUCTION: SoA CustomersCustomers should be able to “plug and play” into should be able to “plug and play” into

your organization and have the same pleasurable your organization and have the same pleasurable experience regardless of the channelexperience regardless of the channel

End usersEnd users should have access to whatever should have access to whatever information and software they need regardless of information and software they need regardless of where they (the end users) arewhere they (the end users) are

Software development Software development should focus on reusable should focus on reusable components (services) to accelerate systems components (services) to accelerate systems development. development.

InformationInformation would be treated appropriately as a would be treated appropriately as a valuable organizational resource – protected, valuable organizational resource – protected, managed, organized, and made available to everyone managed, organized, and made available to everyone who needs it.who needs it.

HardwareHardware is both integrated and transparent. is both integrated and transparent.

ERP RevisitedERP Revisited Enterprise resource planning (ERP) system Enterprise resource planning (ERP) system

– collection of integrated software for business – collection of integrated software for business management, accounting, finance, supply chain management, accounting, finance, supply chain management, inventory management, customer management, inventory management, customer relationship management, e-collaboration, etc.relationship management, e-collaboration, etc.

ERP is big businessERP is big business Federal government will spend $7.7 billion on Federal government will spend $7.7 billion on

ERP in 2009ERP in 2009 60% of Fortune 1000 companies have ERP 60% of Fortune 1000 companies have ERP

systemssystems

ERP EvolutionERP Evolution MRP – 1970s; focus on production planning, MRP – 1970s; focus on production planning,

calculating time requirements, procurement; calculating time requirements, procurement; basic automated manufacturing focusbasic automated manufacturing focus

MRP II – 1980s; closed the loop to include MRP II – 1980s; closed the loop to include financial and accounting systems and serve as financial and accounting systems and serve as a decision support tool for managersa decision support tool for managers

ERP EvolutionERP Evolution ERP – late 1980s/early 1990s; focus on critical ERP – late 1980s/early 1990s; focus on critical

“time to market”; shorter lead times; customers “time to market”; shorter lead times; customers want it nowwant it now

ERP II – today; focus on complete ERP integration ERP II – today; focus on complete ERP integration with CRM, business intelligence, and a host of with CRM, business intelligence, and a host of other applications across the organizationother applications across the organization

ERP and SoAERP and SoA

For ERP to integrate everything, For ERP to integrate everything, everything must be plug-and-play everything must be plug-and-play components or servicescomponents or services

All modules of an ERP vendor must be All modules of an ERP vendor must be interoperableinteroperable

Software from multiple ERP vendors Software from multiple ERP vendors must be interoperablemust be interoperable

The infrastructure beneath must be The infrastructure beneath must be hidden from users and customershidden from users and customers

Supporting Network Supporting Network InfrastructuresInfrastructures

Computer network – fundamental Computer network – fundamental underlying infrastructure for any IT underlying infrastructure for any IT environmentenvironment DecentralizedDecentralized CentralizedCentralized DistributedDistributed Client/serverClient/server TieredTiered

Decentralized Network Decentralized Network InfrastructureInfrastructure

DecentralizedDecentralized

Almost nonexistent todayAlmost nonexistent today

Centralized Network Centralized Network InfrastructureInfrastructure

CentralizedCentralized

Like decentralized, almost Like decentralized, almost nonexistent todaynonexistent today

Distributed Network Distributed Network InfrastructureInfrastructure

DistributedDistributed

First true First true network network infrastructureinfrastructureProcessing activity is allocated to the Processing activity is allocated to the location(s) where it can most location(s) where it can most efficiently be doneefficiently be done

Distributed Network Distributed Network InfrastructureInfrastructure

Client/Server InfrastructureClient/Server InfrastructureClient/server infrastructureClient/server infrastructure

Servers and clients work together to Servers and clients work together to optimize processing, information optimize processing, information storage, etcstorage, etc

When you surf the Web, the When you surf the Web, the underlying network infrastructure is underlying network infrastructure is client/serverclient/server

Client/Server InfrastructureClient/Server Infrastructure

Tiered InfrastructureTiered Infrastructure

Tiered (layer)Tiered (layer) – the IT system is – the IT system is partitioned into tiers (layers) where each partitioned into tiers (layers) where each tier performs a specific type of functionalitytier performs a specific type of functionality 1-tier 1-tier – single machine– single machine 2-tier 2-tier – basic client/server relationship– basic client/server relationship 3-tier 3-tier – client, application server, data or – client, application server, data or

database serverdatabase server N-tierN-tier – scalable 3-tier structure with more – scalable 3-tier structure with more

serversservers

Tiered InfrastructureTiered Infrastructure

CLOUD COMPUTINGCLOUD COMPUTING

Cloud computing Cloud computing – model in which – model in which any and all IT resources are delivered any and all IT resources are delivered as a set of services via the Internetas a set of services via the Internet Application softwareApplication software Processing powerProcessing power Data storageData storage Backup facilitiesBackup facilities Development toolsDevelopment tools Literally everythingLiterally everything

Many Implementations of the Many Implementations of the CloudCloud

All called ???-as-a-service, or ?aaSAll called ???-as-a-service, or ?aaS SaaS (software) SaaS (software) – pay for software on a – pay for software on a

pay-per-use basispay-per-use basis HaaS (hardware) HaaS (hardware) – pay for the use of – pay for the use of

hardware on a pay-per-use basishardware on a pay-per-use basis IaaS (infrastructure) IaaS (infrastructure) – pay for the use of – pay for the use of

infrastructure components (communications infrastructure components (communications servers, network servers, etc) on a pay-per servers, network servers, etc) on a pay-per use basisuse basis

EaaS (everything) EaaS (everything) – pay for the use of – pay for the use of prewritten software components prewritten software components

IT SUCCESS METRICSIT SUCCESS METRICS

To justify costs of technology, you To justify costs of technology, you need to measure its successneed to measure its success

Metrics are also called Metrics are also called benchmarksbenchmarks, , baseline values a system seeks to baseline values a system seeks to attain.attain.

BenchmarkingBenchmarking

Efficiency & Effectiveness Efficiency & Effectiveness MetricsMetrics

EfficiencyEfficiency – doing something right – doing something right In the least timeIn the least time At the lowest costAt the lowest cost With the fewest errorsWith the fewest errors EtcEtc

EffectivenessEffectiveness – doing the right things – doing the right things Getting customers to buy when they visit your siteGetting customers to buy when they visit your site Answering the right question with the right answer Answering the right question with the right answer

the first timethe first time EtcEtc

Types of IT Success MetricsTypes of IT Success Metrics

1.1. Infrastructure-centric metricsInfrastructure-centric metrics

2.2. Web-centric metricsWeb-centric metrics

3.3. Call center metricsCall center metrics

4.4. Financial metricsFinancial metrics

1.1. Infrastructure-Centric Infrastructure-Centric MetricsMetrics

Infrastructure-centric metricInfrastructure-centric metric

A.A. ThroughputThroughput – amount of information that – amount of information that can pass through a system in a given can pass through a system in a given amount of timeamount of time

B.B. Transaction speed Transaction speed – speed at which a – speed at which a system can process a transactionsystem can process a transaction

C.C. System availability System availability – measured inversely – measured inversely as downtime, or the average amount of as downtime, or the average amount of time a system is down or unavailabletime a system is down or unavailable

Infrastructure-Centric Infrastructure-Centric MetricsMetrics

D.D. AccuracyAccuracy – measured inversely as error – measured inversely as error rate, or the number of errors per rate, or the number of errors per thousand/million that a system generatesthousand/million that a system generates

E.E. Response time Response time – average time to – average time to respond to a user-generated event, such respond to a user-generated event, such as a mouse clickas a mouse click

F.F. ScalabilityScalability – conceptual metric related – conceptual metric related to how well a system can be adapted to to how well a system can be adapted to increased demandsincreased demands

2.2. Web-Centric MetricsWeb-Centric Metrics

Web-centric metricWeb-centric metric

A.A. Unique visitorsUnique visitors – # of unique visitors to a – # of unique visitors to a site (Nielsen/Net Ratings primary metric)site (Nielsen/Net Ratings primary metric)

B.B. Total hits Total hits – number of visits to a site– number of visits to a site

C.C. Page exposures Page exposures – average page – average page exposures to an individual visitorexposures to an individual visitor

D.D. Conversion rate Conversion rate - % of potential - % of potential customers who visit your site and who customers who visit your site and who actually buy somethingactually buy something

Web-Centric MetricsWeb-Centric Metrics

E.E. Click-throughClick-through - # of people who click on - # of people who click on an ad and are taken to another sitean ad and are taken to another site

F.F. Cost-per-thousandCost-per-thousand – sales dollars – sales dollars generated per dollar of advertisinggenerated per dollar of advertising

G.G. Abandoned registrations Abandoned registrations - # who start - # who start to register at your site and then abandon to register at your site and then abandon the processthe process

H.H. Abandoned shopping carts Abandoned shopping carts - # who - # who create a shopping cart and then abandon itcreate a shopping cart and then abandon it

3.3. Call Center MetricsCall Center MetricsCall center metricCall center metric

A.A. Abandon rateAbandon rate - % number of callers who hang - % number of callers who hang up while waiting for their call to be answeredup while waiting for their call to be answered

B.B. Average speed to answer (ASA) Average speed to answer (ASA) – average – average time, usually in seconds, that it takes for a call time, usually in seconds, that it takes for a call to be answered by an actual personto be answered by an actual person

C.C. Time service factor (TSF)Time service factor (TSF) - % of calls - % of calls answered within a specific time frame, such as answered within a specific time frame, such as 30 or 90 seconds30 or 90 seconds

D.D. First call resolution (FCR) First call resolution (FCR) - % of calls that - % of calls that can be resolved without having to call backcan be resolved without having to call back

4.4. Financial MetricsFinancial Metrics

Ultimately, an IT system must make Ultimately, an IT system must make financial sensefinancial sense

Financial metrics are also called Financial metrics are also called capital analysis financial modelscapital analysis financial models

You will learn these and their You will learn these and their applications in other classesapplications in other classes

Ex – net present value, return on Ex – net present value, return on investment, etc.investment, etc.

IT Metrics and Service Level IT Metrics and Service Level AgreementsAgreements

Service level agreement (SLA)Service level agreement (SLA) – – formal, contractually obligated formal, contractually obligated agreement between 2 partiesagreement between 2 parties

SLAs must include IT success metricsSLAs must include IT success metrics SLAs are between your organization SLAs are between your organization

and outsourcing organizations (and outsourcing organizations (SLAs SLAs define how you will measure the outsourcing define how you will measure the outsourcing organization’s efforts)organization’s efforts)

SLAs are also between your organization and an SLAs are also between your organization and an application service providerapplication service provider

Supporting an IT Supporting an IT InfrastructureInfrastructure

Backup Backup is the process of making a is the process of making a copy of the information stored on a copy of the information stored on a computercomputer

RecoveryRecovery is the process of is the process of reinstalling the backup information in reinstalling the backup information in the event the information was lostthe event the information was lost

BUSINESS CONTINUITY BUSINESS CONTINUITY PLANNINGPLANNING

Business continuity planning Business continuity planning (BCP)(BCP)

BCP is very necessary today given BCP is very necessary today given terror threats, increased climate terror threats, increased climate volatility, etcvolatility, etc

Disaster Recovery PlanDisaster Recovery Plan Disaster recovery planDisaster recovery plan

Collocation facilityCollocation facility

Hot SiteHot Site

Cold SiteCold Site

Disaster Recovery ExampleDisaster Recovery Example

Birthday cardsBirthday cards Payroll checksPayroll checks Inventory managementInventory management Accounts receivableAccounts receivable Company Web site (advertising only)Company Web site (advertising only) Company Web site (ordering available)Company Web site (ordering available)

Hot or cold site?Hot or cold site? Frequency of backup?Frequency of backup?