Chapter 7

1. Chapter 7 Enterprise Infrastructure and Integration

2. STUDENT LEARNING OUTCOMES • Define an enterprise system. • Describe an enterprise resource planning (ERP) system. • List and describe the seven “ilities.”

3. STUDENT LEARNING OUTCOMES • List the key traits that an IT infrastructure should exhibit. • Describe the differences among the four types of IT infrastructures. • Explain the difference between backup and recovery.

4. STUDENT LEARNING OUTCOMES • State the purpose of a disaster recovery plan. • Explain the need for system integration.

5. One View for Del Monte Foods • Del Monte needed to overhaul its IT infrastructure • Migrate from multiple platforms • Consolidate applications to a central single system

6. One View for Del Monte Foods • Develop an ERP system • Merge multiple systems • Quick and cost effective

7. One View for Del Monte Foods • Class poll… • Why did Del Monte need to integrate its systems? • Why does knowing the sales of Kibbles ‘n Bits and the sales of vegetables help the overall organization? • Do you think Del Monte would like to know who is buying combinations of its products? Why?

8. INTRODUCTION • Successful IT systems provide an integrated view of: • Business • Extend analytical capabilities to users • Leverage a corporation's information and expertise

9. INTRODUCTION • Enterprises need to encompass a range of intelligence systems and analytical applications that include: • Data warehouses and data marts • Online analytical processing (OLAP) • Decision support systems (DSSs) • Executive information systems (EISs)

10. ENTERPRISE SYSTEMS • An enterprise system (ES) -large software application that companies use to manage their operations • Key way by which large organizations distribute content of all kinds to their: • Workforce • Suppliers • Customers

11. ENTERPRISE SYSTEMS

12. ENTERPRISE SYSTEMS • Enterprise systems are suited for information transactions • They are the underlying information “factory” • Enterprise systems offer the first great opportunity to achieve true connectivity • A state in which everyone knows what everyone else is doing in the business all over the world at the same time

13. ERP Systems • Enterprise resource planning (ERP) systems are software systems for business management, supporting areas such as planning, manufacturing, sales, marketing, distribution, accounting, financial, human resource management, project management, inventory management, service and maintenance, transportation, and e-business

14. ERP Systems • ERP systems allow companies to implement a single integrated system by replacing legacy information systems. • Legacy information system (LIS) - represents a massive, long-term business investment; such systems are often brittle, slow, and nonextensible

15. ERP Systems

16. ERP Systems • An ERP system is required to have the following characteristics: • Modular design comprising many distinct business functions such as financial, manufacturing, distribution, and the like • Centralized DBMS • Integrated functions that provide seamless information flow among the functions • Flexible, best business practices • Functions that work in real-time • Internet-enabled

17. Accounting Financial Manufacturing Production Transportation Sales and distribution Human resource Supply chain Customer relationship E-business Core ERP Functions

18. ERP Systems

19. ERP Systems • ERP systems are big business • At the top of the IT spending list is the ERP market • The United States federal government will spend $7.7 billion on ERP products and services in fiscal year 2009 • Up 37 percent from 2004 spending of $5.6 billion

20. ERP Systems • Advantages… • Reliable information access • Avoid redundant data and operations • Cost reduction • See more on page 230 • Disadvantages • Time-consuming • Expensive • Vendor dependence • See more on page 230

21. Evolution of ERP Systems • The early stage of ERP was carried out in the 1970’s through a system called Materials Requirement Planning (MRP) • Early 1980s MRP was reengineered under the name of Manufacturing Resources Planning or MRPII

22. Evolution of ERP Systems • The beginning of the 1990’s came enterprise resource planning (ERP) • ERP systems have evolved into what is now commonly referred to as ERPII

23. Evolution of ERP Systems

24. ERP Vendors & Market Trends • The top dominating ERP software suppliers are: • SAP • Oracle/PeopleSoft • SSA Global • Microsoft • Together they control more than 70 % of the multi­billion dollar global market

25. ERP Vendors & Market Trends • Complete list is very long • Invensys (www.invensys.com) • Epicor (www.epicor.com) • Mapics (www.mapics.com) • Navison (www.navison.com) • Deltek (www.deltek.com) • Many more on page 233

26. ERP Vendors & Market Trends • The ERP market has been growing at a rate more than 30 % • The growth of the ERP market has been boosted both by business reasons as well as by technical reasons • The main cited reason is globalization

27. DEVELOPING AGILE IT SYSTEMS • Business agility means being prepared for change at a moment’s notice • Factors to consider whenever you are developing an IT system - these are commonly referred to as the “ilities”: • Availability • Accessibility • Reliability • Scalability • Flexibility • Performance • Capacity planning

28. Availability • Availability is determining when an IT system will be available for employees to access • Most companies have IT systems available 24 x 7 x 365

29. Accessibility • Accessibility is determining who has the right to access different types of IT systems and information • Accessibility also means who can access or manipulate the information, whether they can create, read, update, and/or delete information

30. Reliability • Reliability ensures your IT systems are functioning correctly and providing accurate information • Inaccurate information exists for many reasons: • The information being entered incorrectly • The information becoming corrupt

31. Scalability • Scalability refers to how well a system can adapt to increased demands • A number of factors can affect organizational growth including: • The market • The industry • The economy

32. Flexibility • A single system can be designed in a number of different ways to perform exactly the same function • When choosing which design to implement, think about the system’s “flexibility,” or the system’s ability to change quickly

33. Performance • Performance measures how quickly an IT system performs a certain process • Benchmarks are baseline values a system seeks to attain • Benchmarking is a process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance

34. Capacity Planning • Capacity planning determines the future IT infrastructure requirements for new equipment and additional network capacity • It’s cheaper for an organization to implement an IT infrastructure that considers capacity growth at the beginning of a system deployment

35. INFORMATION SYSTEMS INFRASTRUCTURE • An IT architecture is the blueprint for translating a business strategy into a plan • An infrastructure is a relative term meaning “the structure beneath a structure” • This definition implies different layers of structure, which provide support or services

36. INFORMATION SYSTEMS INFRASTRUCTURE

37. Why Architecture Matters • The IT architecture identifies what information must be standardized corporate-wide and what will be standardized at a regional level • An IT architecture specifies where and how information will be located and accessed

38. Why Infrastructure Matters • Global markets are creating enormous demands for increased information sharing • A powerful, flexible IT infrastructure has become a prerequisite for doing business

39. Why Infrastructure Matters • IT infrastructure should exhibit several key traits, such as: • Efficiency • Effectiveness • Agility

40. Why Infrastructure Matters • Translating the architecture into an infrastructure entails creating details about certain technologies: • Hardware • Software • Network • Information

41. INFORMATION TECHNOLOGY INFRASTRUCTURE • There are four types of information technology infrastructures: • Decentralized infrastructure • Centralized infrastructure • Distributed infrastructure • Client/server infrastructure

42. INFORMATION TECHNOLOGY INFRASTRUCTURE

43. Decentralized Infrastructure • A decentralized infrastructure involves little or no sharing of information systems • Gives users the liberty to develop applications that meet their needs and maintain control over the applications they develop

44. Decentralized Infrastructure

45. Centralized Infrastructure • A centralized infrastructure involves sharing of information systems in one central area or one central mainframe • Mainframes were originally the only computers available for business

46. Centralized Infrastructure

47. Distributed Infrastructure • A distributed infrastructure involves distributing the information and processing power of IT systems via a network • By connecting all the information systems via a distributed infrastructure, all locations can share information and applications

48. Distributed Infrastructure

49. Client/Server Infrastructure • A client/server infrastructure (or client/server network) has one or more computers that are servers which provide services to other computers, called clients • The client/server infrastructure is a form of distributed infrastructure

50. Client/Server Infrastructure