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6. Chapter. IT Infrastructure and Platforms. Management Information Systems Chapter 6 IT Infrastructure and Platforms. OBJECTIVES. Define IT infrastructure and describe the components and levels of IT infrastructure Identify and describe the stages of IT infrastructure evolution

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slide1

6

Chapter

IT Infrastructure and Platforms

slide2

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

OBJECTIVES

  • Define IT infrastructure and describe the components and levels of IT infrastructure
  • Identify and describe the stages of IT infrastructure evolution
  • Identify and describe the technology drivers of IT infrastructure evolution
slide3

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

OBJECTIVES (Continued)

  • Assess contemporary computer hardware platform trends
  • Assess contemporary software platform trends
  • Evaluate the challenges of managing IT infrastructure and management solutions
slide4
Challenge: fragmented, high-cost IT infrastructure slowed down market and customer response times

Solutions: integrated storage area network to enable the flow of information among different types and brands of computer servers

Reduce number of servers from 107 to 70

Illustrates the importance of IT infrastructure for achieving business objectives

Management Information Systems

Chapter 6

IT Infrastructure and Platforms

Hong Kong’s New World Telecommunications Case

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Defining IT Infrastructure

  • Includes hardware, software, and services
  • A set of physical devices and software applications that are required to operate the entire enterprise
  • Your firm is largely dependent on its infrastructure for delivering services to customers, employees, and suppliers.
  • You can think of infrastructure as digital plumbing, but its much more than that!
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Figure 6-1

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

The Connection between the Firm, IT Infrastructure, and Business Capabilities

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Levels of IT Infrastructure

  • Three major levels of infrastructure:
  • Public
  • Enterprise
  • Business unit
slide8

Figure 6-2

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Levels of IT Infrastructure

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Evolution of IT Infrastructure: 1950–2005

  • Electronic accounting machine era: (1930–1950)
  • General-purpose mainframe and minicomputer era: (1959 to present)
  • Personal computer era: (1981 to present)
  • Client/server era: (1983 to present)
  • Enterprise internet computing era: (1992 to present)
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Figure 6-3

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Eras in IT Infrastructure Evolution

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Figure 6-4

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

A Multitiered Client/Server Network (N-tier)

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Technology Drivers of Infrastructure Evolution

  • Moore’s law and microprocessing power
  • The law of mass digital storage
  • Metcalfe’s law and network economics
  • Declining communications costs and the Internet
  • Standards and network effects
slide13

Figure 6-5

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Moore’s Law and Microprocessor Performance

slide14

Figure 6-6

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Falling Cost of Chips

slide15

Figure 6-7

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Examples of Nanotubes

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Figure 6-8

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

The Capacity of Hard Disk Drives Grows Exponentially, 1980–2004

Source: Authors.

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Figure 6-9

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

The Cost of Storing Data Declines Exponentially,1950–2004

Source: “Exponential Growth an Illusion?: Response to Ilkka Tuomi,” by Ray Kurzweil, KurzweilAl.net, September 23, 2003. Used with permission.

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Figure 6-10

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

IT INFRASTRUCTURE

Exponential Declines in Internet Communications Costs

Source: Authors.

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Seven Key Infrastructure Components

  • Computer Hardware Platforms
  • Operating System Platforms
  • Enterprise Software Applications
  • Data Management and Storage
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Seven Key Infrastructure Components (Continued)

  • Networking/Telecommunications Platforms
  • Internet Platforms
  • Consulting and System Integration Services
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Figure 6-11

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

The IT Infrastructure Ecosystem

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Computer Hardware Platforms

  • $110 billion annually spent in the United States
  • Dominance of Intel, AMD, and IBM 32-bit processor chips at the client level
  • Server market increasingly dominated by inexpensive generic processors from the same manufacturers
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Computer Hardware Platforms (Continued)

  • Strong server market growth for 64 bit generic processors from AMD, Intel and IBM
  • Blade servers replace box servers
  • Mainframes continue as a presence working as very large servers
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Operating System Platforms

  • $100 billion annually spent in the United States
  • Continued dominance of Microsoft OS in the client (95%) and handheld market (45%)
  • Growing dominance of Linux (UNIX) in the corporate server market (85%)
  • Windows 2002 and 2003 Server remains strong in smaller enterprises and workgroup networks
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Enterprise Software Applications

  • $165 billion annually spent in the United States for basic enterprise software infrastructure
  • SAP, Oracle, PeopleSoft (now Oracle), and Siebel dominate this market.
  • Middleware firms like BEA and JD Edwards serve smaller firms, and work also in the Web services space.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Enterprise Software Applications (Continued)

  • The enterprise market is consolidating around a few huge firms that have gained significant market share such as SAP and Oracle.
  • Microsoft is expanding into smaller firm enterprise systems where it can build on its Windows server-installed base.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Data Management and Storage

  • $70 billion annually spent in the United States.
  • Oracle and IBM continue to dominate the database software market.
  • Microsoft (SQL Server) and Sybase tend to serve smaller firms.
  • Open source Linux MySQL now supported by HP and most consulting firms as an inexpensive, powerful database used mostly in small to mid-size firms.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Data Management and Storage (Continued)

  • $35 billion annually spent in the United States for physical hard disk storage
  • The hard disk market is consolidating around a few huge firms like EMC and smaller PC hard disk firms like Seagate, Maxtor, and Western Digital
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Networking/Telecommunications Platforms

  • $150 billion annually spent on networking and telecommunications hardware
  • $700 billion annually spent on telecommunications services, e.g. phone and Internet connectivity
  • Local area networking still dominated by
  • Microsoft Server (about 75%) but strong growth
  • of Linux challenges this dominance
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Networking/Telecommunications Platform (Continued)

  • Enterprise networking almost entirely Linux or UNIX
  • Cisco, Lucent, Nortel, and Juniper Networks continue to dominate networking hardware.
  • The telecommunications services market is highly dynamic with MCI, AT&T, and Sprint providing most trunk line services for both phone and Internet.
  • Growth of non-telephone Wi-Fi and Wi-Max services, and Internet telephony
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Internet Platforms

  • $32 billion annually spent on Internet infrastructure in the United States
  • Internet hardware server market concentrated in Dell, HP, and IBM
  • Prices falling rapidly by up to 50% in a single year for low-power servers
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Internet Platforms (Continued)

  • Open-source Apache remains the dominant Web server software, followed by Microsoft’s IIS server.
  • Sun’s Java grows as the most widely used tool for interactive Web applications.
  • Microsoft and Sun settle a long-standing law suit and agree to support a common Java.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Consulting and System Integration Services

  • Most firms today, even large firms, cannot develop their systems without significant outside help.
  • $130 billion annually spent on computer system design, and related business services like business process redesign in the United States
  • About 85% of business consulting in the United States involves IT business consulting.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

INFRASTRUCTURE COMPONENTS

Consulting and System Integration Services (Continued)

  • Integration services involves integrating data, and applications in a firm.
  • Connecting new applications and systems to legacy systems
  • IBM has transformed itself into a systems integration firm with IBM Global Services, the largest system integration firm.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

The Integration of Computing and Telecommunications Platforms

  • Increasingly computing takes place over the network.
  • Client level: integration of cell phones and PDAs (Example: Palm Treo)
  • Television, video, and radio move toward digital production.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

The Integration of Computing and Telecommunications Platforms (Continued)

  • Server level: The integration of voice telephone and the Internet bring together two historically separate and distinct global networks.
  • The network in many respects is the source of computing power.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

Grid Computing:

  • Involves connecting geographically remote computers into a single network capable of working in parallel on business problems that require short-term access to large computational capacity
  • Rather than purchase huge mainframes or super computers, firms can chain together thousands of smaller desktop clients into a single computing grid.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

Grid Computing (Continued)

  • Most computers in the world are loafing, and at night they are sleeping.
  • It is estimated that from 25% - 50% of the computing power in the United States is unused.
  • Grid computing saves infrastructure spending, increases speed of computing, and increases the agility of firms.
  • Examples: Royal Dutch/Shell Group and the National Digital Mammography Archive
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

On-Demand (Utility) Computing:

  • Firms off-loading peak demand for computing power to remote, large-scale data processing centers
  • Developed by IBM, SUN, and HP
  • Firms pay only for the computing power they use, as with an electrical utility.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

On-Demand (Utility) Computing: (Continued)

  • Excellent for firms with spiked demand curves caused by seasonal variations in consumer demand, e.g. holiday shopping
  • Example: Harry and David use IBM’s On-Demand computing
  • Saves firms from purchasing excessive levels of infrastructure
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

Autonomic Computing:

  • Computer systems (both hardware and software) have become so complex that the cost of managing them has risen.
  • Thirty to fifty percent of a company’s IT budget is spent preventing or recovering from system crashes.
  • Operator error is the most common cause of crashes.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

  • Autonomic computing is an industry-wide effort to develop systems that can:
    • Configure, optimize, and tune themselves
    • Heal themselves when broken
    • Protect themselves from outside intruders and self-destruction
  • Example: Windows XP and Max X OS automatically download patches and updates.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

Edge Computing:

  • Edge computing is a multitier, load-balancing scheme for Web-based applications.
  • Processing load is distributed closer to the user and handled by lower-cost servers.
  • Lowers cost of hardware
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

Edge Computing: (Continued)

  • Increases service levels
  • Provides firm greater flexibility in responding to service requests
  • Seasonal spikes in demand can be off-loaded to other edge servers.
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Figure 6-12

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY HARDWARE PLATFORM TRENDS

Edge Computing Platform

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

The four major themes in contemporary software platform evolution:

  • Linux and open-source software
  • Java
  • Web services and service-oriented architecture
  • Software outsourcing
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

The Rise of Linux and Open-Source Software

  • Open-source software is free and can be modified by users.
  • Developed and maintained by a worldwide network of programmers and designers under the management of user communities
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

The Rise of Linux and Open-Source Software (Continued)

  • Linux is the most widely used open-source software program. Linux is an operating system derived from Unix.
  • Mozilla Firefox browser and Thunderbird mail clients are the most widely used open-source applications. Others include MySQL.
  • IBM, HP, Intel, Dell, and Sun have adopted and support Linux. Linux is a major alternative to Windows server and even client operating systems.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Java Is Everywhere

Java:

  • An operating system—Independent, processor-independent, object-oriented programming language
  • Applications written in Java can run on any hardware for which a Java virtual machine has been defined.
  • Java is embedded in PDAs, cell phones, and browsers.
  • Java is a leading interactive programming environment for the Web.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Software for Enterprise Integration:

  • One of the most important software trends of the last decade is the growth of “enterprise in a box” or the purchase of enterprise-wide software systems by firms.
  • Rather than build all their own software on a custom basis, large firms increasingly purchase enterprise applications prewritten by specialized software firms like SAP, Oracle, PeopleSoft, and others.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Software for Enterprise Integration: (Continued)

  • The goal is to achieve an integrated firm-wide information environment, reduce cost, increase reliability, and to adopt business best practices which are captured by the software.
  • Enterprise software firms achieve economies of scale by selling the same software to hundreds of firms.
  • Today's enterprise systems are capable of integrating older legacy applications with newer
  • Web-based applications.
slide52

Figure 6-13

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Enterprise Application Integration (EAI) Software Versus Traditional Integration

EAI software (a) creates a common platform through which all applications can freely communicate with each other. EAI requires much less programming than traditional point-to-point integration (b).

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Web Services and Service-Oriented Architecture

  • Web Services:
  • An alternative to enterprise systems is to use new Web-based standards to create a communication platform allowing older applications to communicate with newer applications.
  • Web services refers to a set of loosely coupled software components that exchange information with each other using Web communication standards and languages.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Web Services and Service-Oriented Architecture (Continued)

  • Web services permit computer programs to communicate with one another and share information without rewriting applications, or disturbing older legacy systems.
  • Web services are based on XML, and standards like SOAP, WSDL, and UDDI to create this communication environment.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Service-Oriented Architecture

  • SOA refers to the use of Web services in a firm to achieve integration among disparate applications and platforms.
  • A firm might have applications (payroll) running on older AS400 IBM machines, IBM mainframes (customer data and inventory) and newer applications running on client/server networks.
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Service-Oriented Architecture (Continued)

  • In SOA, these applications are integrated so that information stored on various systems can be brought together and fed into newer applications running on more contemporary equipment.
  • SOA is generally less expensive than rebuilding all the older applications and adopting a new enterprise wide system.
slide57

Figure 6-14

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

How Dollar Rent a Car Uses Web Services

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Software Outsourcing

  • Today large and small firms purchase most of their software from outside vendors.
  • Three kinds of outsourcing:
  • Purchase of software packages
  • Using application service providers
  • Custom outsourcing
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Purchase of Software Packages and Enterprise Software

Enterprise software packages: prewritten off-the-shelf software

  • Application Service Providers:
  • A business that delivers and manages applications and computer services from remote computer centers to multiple users using the Internet or a private network
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Purchase of Software Packages and Enterprise Software (Continued)

  • Application Service Providers:
  • Rather than purchase hardware and software, firms can go onto the Internet and find providers who offer the same functionality over the entertainment, and charge on a per-user or license basis.
  • Example: Salesforce.com provides customer relationship management and sales force management services to firms
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Software Outsourcing of Custom Applications

  • A firm contracts custom software development or maintenance of existing legacy programs to outside firms, often in low-wage countries.
  • Example: Dow Chemical hired IBM for $1.1 billion to create an integrated communication system for 50,000 Dow employees in 63 countries.
  • Why would Dow not build this system itself?
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Figure 6-15

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

CONTEMPORARY SOFTWARE PLATFORM TRENDS

Changing Sources of Firm Software

Sources: BEA National Income and Product Accounts, Forrester Research, December 2003; eMarketer Inc., “IT Spending 2004,” www.emarketer.com; and author estimates.

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Management Opportunities:

Because of changes in hardware and software platforms, firms face significant new opportunities to obtain hardware and software capabilities

that are more reliable, less costly, and more flexible than in the past.

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Management Challenges:

  • Making wise infrastructure investments
  • Choosing and coordinating infrastructure components
  • Dealing with infrastructure change
  • Management and governance
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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Solution Guidelines:

  • Consider your strategic situation
  • Start out small, develop one module at a time
  • Consider the total cost of ownership

Figure 6-16, “Competitive Forces Model for IT infrastructure” illustrates six strategic factors you should consider when making infrastructure decisions

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Figure 6-16

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Competitive Forces Model for IT Infrastructure

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Management Information Systems

Chapter 6 IT Infrastructure and Platforms

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

Starting out small:

  • Experiment with new technologies on a smaller scale before taking up a large-scale infrastructure project.
slide68

Management Information Systems

Chapter 6 IT Infrastructure and Platforms

MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS

  • Total cost of ownership of technology assets:
  • When calculating the costs of systems, be sure to include all the costs:
    • Hardware acquisition
    • Software acquisition
    • Installation
    • Training
    • Support
    • Maintenance
    • Infrastructure requirements
    • Downtime
    • Space and energy