1. Alex Domínguez
alexdfar@yahoo.com
jadoming@mail.unitec.mx
www.unitec.mx
Lecture notes, Grenoble Graduate School of Business,
France, May 2008.

2. Objective and Contents
From the point of view of non-IT management, the main objective of this
course is to analyse, represent and apply the theoretical models and
frameworks which support the strategic analysis and development of an
organisation‘s Information Strategy and Information Systems
5. Project
1. Organisation 2. IS, IT, and all Identification,
3. Types of IS 4. IS Strategy
Components That Justification
and Planning
10. IS
9. IS Testing, 7. Business
Operations, 8. IS 6. IS
Installation, Process
Maintenance, Acquisitions Architecture
and Integration Reengineering
and Updating
12. Enterprise
11. 13. Managing
IS: ERP, CRM,
Internetworks International IS
and SCM
2

3. Information Technology Requirements
Hardware
• Lap Top computer, if possible
• Speakers
Software applications
• Acrobat Reader – Version 7 or higher
• Windows Media Player – Version 9 or higher
• Real Player – Version 6 or higher
Telecommunications
• Internet Connection
3

4. Bibliography
Books
• Applegate, L.M., R.D. Austin, and F.W. McFarland. Corporate Information
Strategy and Management. 7th Edition. McGraw-Hill, USA, 2007.
• Carr, N.G. Does IT Matter: Information Technology and the Corrosion of
Competitive Advantage. HBS Press, USA, 2004.
• Laudon, K.C., and J.P. Laudon. Management Information Systems: Managing
the Digital Firm. 10th Edition. Prentice-Hall, USA, 2007.
• Lutchen, M.D. Managing IT as a Business: A Survival Guide for CEOs. John
Wiley & Sons, USA, 2004.
• O‘Brien, J.A. and G.M. Marakas. Enterprise Information Systems. 13th Edition.
McGrah-Hill International Edition, USA, 2007.
• Smith, H.S. and P. Fingar. IT Doesn´t Matter: Business Process Do. Meghan-
Kiffer Press, USA, 2003.
• Turban, E., E. McLean, and J. Wetherbe. Information Technology for
Management. 6th Edition. Wiley, USA, 2008.
Websites
• BRINT: www.brint.com/
• CIO: www.cio.com/
4

5. Organisation Components
An organisation is made of …
PEOPLE
must posses knowledge and skills required to perform assigned
tasks and job positions must be fulfilled by appropriate people
Other people participating in organisation:
• Customers
• Suppliers
• Partners
• Outsourced people
5

6. Organisation Components
An organisation is made of PEOPLE, …
PEOPLE
uses
is required by
INFORMATION
must be self-consistent
and normalised
Information = data + meaning
= (symbols + structure) + meaning
• It provides answers about ―who‖, ―what‖, ―where‖, and ―when‖
• It is independent of the way it is obtained
Major types of information in organisation:
• Human resources information
• Finance and accounting information
• Manufacturing and production information
• Sales and marketing information
6

7. Organisation Components
An organisation is made of PEOPLE,
INFORMATION, …
PEOPLE
• Human resources processes
• Hiring employees
• Evaluating employees‘ job performance
• Evaluating employees‘ in benefits plans
• Finance and accounting processes
INFORMATION respond • Paying creditors
defines • Creating financial statements
feeds • Managing cash accounts
• Manufacturing and production processes
• Assembling the product
respond
• Checking for quality
• Producing bills of materials
• Sales and marketing processes
• Identifying customers
PROCESSES • Making customers aware from the product
must be normalised • Selling the product
and controlled
7

8. Organisation Components
An organisation is made of PEOPLE,
INFORMATION, PROCESSES, …
PEOPLE
feedback • Products are made; services are delivered
• Products are used; services are experienced
• Products possess physical characteristics we
INFORMATION can evaluate before we buy; services do not
modify even exist before we buy them
• Products are impersonal; services are personal
feeds define
modify
produce
PROCESSES PRODUCTS /
SERVICES
8

9. Organisation Components
An organisation is made of PEOPLE, INFORMATION,
PROCESSES, PRODUCTS/SERVICES, and …
• Technology is the relationship that an
organisation has with its tools and crafts,
and to what extent organisation can
PEOPLE
control its environment
• Technology is machines, equipment, and
systems considered as a unit
INFORMATION TECHNOLOGY
is fed by and interacts
with each component
It refers to technological side of systems
PROCESSES PRODUCTS /
SERVICES
9

10. Organisation Components
The organisation as a system
PEOPLE
Complexity of model:
• 30 communication channels
• Each component must be linked
with itself as well as among other
4 components
INFORMATION TECHNOLOGY
Complexity reveals the intrinsic
systemic nature of a organisation
A system is a set of interacting or
interdependent entities, real or
PROCESSES PRODUCTS / abstract, forming an integrated
SERVICES whole
10

11. Organisation Components
Organisation’s internal and external attributes
Government
Customers Communities
Environment
Standard
operating
procedures
Internal Internal
Competitors culture politics Suppliers
Internal
structure
Regulatory Agencies Stakeholders Worker Unions
11

12. IS, IT, and All That
Information Systems (IS)
An Information System (IS) collects, processes, stores, analyses, and
disseminates information for a specific purpose
Environment
Inputs Processing Output
Information Processing Information
(input) Information (output)
Control
Control
Information Feedback
12

13. IS, IT, and All That
Types of IS
Agreed-upon
procedures
Standard inputs and
Information features
outputs
Fixed definitions
Long-range planning
policies
Strategic information
Decision Support
Formal Systems
Policy implementation
and control
Managerial information
Management
Information Systems
Information needed to
operate business
Operational information
Data processing
Information Systems Systems
Office gossip networks
Group of friends
Informal
Information exchange
Chat systems
Based on computers
Computer-based
Used for handling
business applications 13

14. IS, IT, and All That
Computer-based IS (CBIS)
A CBIS is a IS that uses computer technology to perform
some or all of its intended task
Hardware Software Network
Databases Procedures People
14

15. IS, IT, and All That
Computers versus IS
An IS involves much more than computers
Organisation
Technology
• Computer-
Based Management
Information
Systems
The successful application of an IS requires an understanding
of the business and its environment that is supported by the IS
15

16. IS, IT, and All That
Information Technology (IT)
IT is the organisation‘s collection of information systems,
their users, and the management to oversees them
IT is also known as:
• Information and Communication Technology (ICT)
• Information Technology and Telecommunications (IT&T) in Australia
• Infocomm in Asia
16

17. Paper - IT Doesn’t Matter
Objective
Dimension the importance of IT into organisations
DIRECTIONS
Create multidisciplinary
Before lecture: Read the
international teams
paper
(3 people)
Discuss the paper in your
Review the paper
own team
(5 minutes)
(10 minutes)
Explain your conclusions to
Free discussion
other teams
(10 minutes)
(3 minutes by team)
17

18. Types of IS
IS versus Groups served
KIND OF IS GROUPS SERVED
Strategic Senior
Executive Support Systems
Level Managers
Decision Support Systems
Management
Level Middle
Management Information Systems Managers
Knowledge Work Systems
Knowledge Knowledge &
Level Data Workers
Office Automation Systems
Operational Operational
Transaction Processing Systems
Level Managers
Sales and Manufacturing Finance and Human
Source: Laudon & Laudon, Chapter 2 Marketing & Production Accounting Resources 18

19. Types of IS
IS definitions
Executive
• Address non-routine decisions requiring judgment, evaluation,
Support
and insight because there is no agreed-on procedure for arriving
Systems
a solution
(ESS)
• Support non-routine decision making, focus on problems
Decision-
that are unique and rapidly changing, for which the
Support
procedure for arriving at a solution may not be fully
Systems (DSS)
predefined in advance
Management • Provide managers with reports and, in some
Information Systems cases, with online access to the organisation‘s
(MIS) current performance and historical records
• Promote the creation of a new knowledge
Knowledge Work Systems and ensure that new knowledge and
(KWS) technical expertise are properly integrated
into the business
• Increase productivity by supporting
Office Automation Systems (OAS) the coordinating and communicating
activities of the typical office
• Perform and record the daily
routine transactions
Transaction Processing Systems (TPS)
necessary to conduct
business
19

20. Types of IS
Systemic nature of IS
Information Groups
Kind of IS Type of IS Information Inputs Processing
Outputs Served
Executive Graphics Projections
Strategic Aggregate data, Senior
Support Simulations Responses to
Level external, internal Managers
Systems (ESS) Interactive queries
Special reports
Decision- Low-volume data Interactive Professionals
Analytic models Decisions analyses
Support Simulations Staff
Systems (DSS) Data analysis tools Responses to managers
Analysis
Management queries
Level Summary transactions
Management Routine reports
data Summary Middle
Information Simple models
High-volume data Exception reports Managers
Systems (MIS) Low-level analysis
Simple models
Knowledge Work Design specifications Models Professionals
Modelling simulations
Systems (KWS) Knowledge base Graphics Technical staff
Knowledge
Level Office Document management Documents
Automation Clerical
Documents schedules Scheduling Schedules
workers
Systems (OAS) Communications Mail
Sorting
Transaction Operations
Operational Transactions Listing Detailed reports lists
Processing personnel
Level Events Merging Summaries
Systems (TPS) Supervisors
updating 20

21. Types of IS
The six major types of IS
Sales and Manufacturing Human Groups
Kind of IS Type of IS Finance Accounting
Marketing & Production Resources Served
Executive N-year sales N-year
Strategic N-year Profit Personnel Senior
Support trend budget
Level operating plan planning planning Managers
Systems (ESS) forecasting forecasting
Decision- Pricing /
Sales region Production Cost Contract cost
Support profitability
analysis scheduling analysis analysis
Management Systems (DSS) analysis Middle
Level Management Capital Managers
Sales Inventory Annual Relocation
Information investment
management control budgeting analysis
Systems (MIS) analysis
Knowledge
Work Systems Engineering IS Graphics IS Managerial IS
(KWS) Knowledge
Knowledge
and Data
Level Office Workers
Automation Word processing Document imaging Electronic calendars
Systems (OAS)
Machine
Compensation
control Payroll
Order Securities
Training and
Transaction tracking Plant trading Accounts
Operational development Operational
Processing Scheduling payable
Level Managers
Systems (TPS) Order Cash
Employee
processing Material management Accounts
record
movement receivable
keeping
control 21

22. Types of IS
IS and decision making
Organisational Level
Type of Decision Operational Knowledge Management Strategic
Structured Accounts
Receivable
Electronic Production
Scheduling Cost Overruns
TPS
OAS MIS
Budget
semi-structured
Preparation
Project
DSS
scheduling
Facility
KWS Location ESS
Unstructured Product New Products
Design New Markets
22

23. Types of IS
Interrelationships among IS
ESS
MIS DSS
KWS
& TPS
OAS
23

24. Video case - UPS International Distribution
What external factors affect international operations at UPS? How do these factors
cause UPS to adjust its operations?
Explain how ISPS facilitates the ability of UPS to ship packages internationally.
Describe the type and role that the Delivery Information Acquisition Devise (DIAD:
a handheld computer) plays in UPS business processes.
How important is information to the global expansion of UPS? What advantages
does UPS gain by carefully capturing information?
Discuss the role of volume in the business activities of UPS.
DIRECTIONS
Create multidisciplinary
Before lecture: Watch the Review the video
international teams
video (10 minutes)
(3 people)
Explain your conclusions to Discuss the video in your own
Free discussion
other teams team
(10 minutes) 24
(3 minutes by team) (10 minutes)

25. IS Strategy
Alignment
•Performance Measurement
/ Analysis / Reporting
•Business Management
IS Management Lens
Liaison / Service Level
Agreement
•Governance and
Leadership • 6 IS business risk
Resiliency
•Data Quality and
drivers
Operations
•Service Delivery
Management • 14 main
•Business Continuity /
(Operations & Initiatives)
Disaster Recovery competencies
•Enterprise Core Systems
•Security /Confidentiality / • Qualitative and
Privacy
quantitative focus
Context Filter
Leverage
Futures
•User Technology
•Emerging Technologies
Competencies & Skills
Support
•Organisation / People /
Skills
•Marketing Communications
•Sourcing Management &
Legal Contract Issues
•Finance / Budgeting
25

26. IS Strategy
Managers of IS
IS
Management
CIO & IT
CEO & CIO CIO & CTO
Managers
Managing Managing the Managing the
Managing Managing IS Managing
Application IT IT
Business Strategy Technology
Development Organisation Infrastructure
26

27. IS Strategy
The Chief Information Officer (CIO)
CIO: A senior strategic-level management position that oversees all IS and
personnel for an organisation, concentrating on long-range IS planning and strategy
27

28. IS Strategy
The CIO yesterday and today
28

29. IS Strategy
Strategy and IS
IS IMPACT AND
POTENTIAL
Business Strategy
Business Where is the business going and
Strategies why
• Business Decisions
• Objectives and Direction
• Change
Business
Applications
Processes Supports Direction for
business business
IS Strategy
What is required
• Business Based
• Demand Orientated
• Application Focused
Organisational Infrastructure Needs and
Data Classes
Databases
and services priorities
IT Strategy
How it can be delivered
Information
Architecture • Activity Based
• Supply Orientated
• Technology Focused
29

30. IS Strategy
5 major steps in IS strategy and planning
Step 1 - Project Identification, Justification, and Planning
IS and enabler Identify IS projects
From business goals to information needs Justify IS investment
System-required functionalities
Need to solve problems
Step 2 – IS Architecture
Business Information Architecture Technical Architecture
IT
Process Data Architecture Organisation Architecture
Infrastructure
Reengineering Application Architecture Feasibility
Step 3 – Acquisition /Development) Options
Management
Build – How, which methodology
Buy – What, from whom Vendor Management
Business
Lease – What, from whom Project Management
Partners Partner – Which partner, how to partner Evaluation
Outsource – Where to outsource
Step 4 – Testing, Installation, and Integration
Business
Testing Installation
Partners
Business Integration Training
Partners Security Conversion
Deployment
Step 5 – Operations, Maintenance, and Updating
Operations Maintenance
Updating Replacement
30

31. Video case - Cisco and Centrica: E-working and IS
Transformation
What are Centrica's guiding principles?
How does Centrica's CIO define a network?
What are the components of Centrica's E-working model?
What are some of the challenges that Centrica faces in maintaining effective
networking systems?
What are some of the specific tools that Centrica has implemented?
Provide examples of quantifiable benefits that Centrica has experienced as a result
of its Cisco initiatives
How does Centrica plan to extend the benefits of its E-working systems?
DIRECTIONS
Create multidisciplinary
Before lecture: Watch the Review the video
international teams
video (10 minutes)
(3 people)
Explain your conclusions to Discuss the video in your own
Free discussion
other teams team
(10 minutes) 31
(3 minutes by team) (10 minutes)

32. Project Identification, Justification, and Planning
Step 1 - IS strategic planning process
Understanding of Business Objectives IS Objectives
Organisation
Strategy Business Strategic
Plan
Identifying IS
IS Vision
Vision
Defining IS
IS Strategic
Strategic
Initiatives
Objectives
Financial Investment
Internal Efforts
(Cost/Benefit)
(Activities)
Analysing IS
Risk Assessment
Objectives (Project Risks) IS Activities Portfolio External Efforts
Portfolio (Environment trends)
Personnel Requirements
Project Schedule Analysis
(Skills needed)
Analysing IS
Gantt Chart First Year Budget
Objectives IS Strategic Plan
Time and Links among activities First Year Profits
Portfolio 32

33. Project Identification, Justification, and Planning
Step 1 – IS strategic planning (growth model)
Data
Administration
Integration
• Information
• Expenditures on requirements rather
integrating (via than processing drive
Control telecommunications the applications
• In response to and databases) portfolio
management existing systems
concern about
Expansion cost versus
(Contagion) benefits, systems
• Centralised projects are
expected to show
growth takes
place as users a return
Initiation demand more
applications
• When
computers
are initially
introduced
33

34. Project Identification, Justification, and Planning
Step 1 – Determining Critical Success Factors
What
objectives are
central to the
organisation?
What are the
critical factors
What IS can
that are
supply these
essential to
measures?
meeting these
objectives?
Ask
What What
variables decisions or
underlie these actions are
decisions, and key to these
how are they critical
measured? factors?
34

35. Project Identification, Justification, and Planning
Step 1 – Defining scenarios
• Descriptions of alternative coherent and plausible futures
• ―Narratives‖ of the evolving dynamics of the future
They are • Specific strategy-focused views of the future
• The combination of tacit and explicit knowledge
• Predictions
They are • Variations around a midpoint/base case
not • Generalised views of feared or desired Futures
• The product of outside futurists or consultants
• The short to medium term prognosis is unstable / uncertain
Do use • You need to understand ―why‖ something is happening
them if • You need to create a shared understanding of key issues and uncertainty
•
… •
You need to create a more outward looking open and customer focused culture
You need to have a strategic conversation with stakeholders, employees, users, etc.
Do not • The scenarios aren‘t designed to address a clear strategic question
use them • You can‘t get a reasonable level of support or visibility within the organisation
• You can‘t ensure a reasonable level of involvement in the process
if …
35

36. Project Identification, Justification, and Planning
Step 1 – Scenario planning
Develop a
Strategic Vision
• Balance Commitment
• Flexibility
Implement Identify Key
Effectively Success Factors
Develop Multiple Monitor in Real
Future Scenarios Time
• Embracing • Adjust Dynamically
• Uncertainty
Generate Strategic
Options
36

37. Project Identification, Justification, and Planning
Step 1 – From scenarios to strategy
Actions that are needed
whatever the scenario
(Imperatives)
Recommen-
dations for
Drivers of Strategic
Scenarios future
change implications
strategy &
action
Actions needed to reach
a preferred future outcome
(Preferences)
Involves assessing actions against capabilities and
competencies, identifying opportunities and reviewing
risks
37

38. Project Identification, Justification, and Planning
Step 1 - Why invest in IS projects
Strategic
Support to Top Competitive Long-term-
objectives of
corporate management performance costs and
investment
strategy support objectives benefits
in IS
Strategic
Considerations
Performance
Involvement
indicators Evaluation
Priority of Market ROI & profit Security of senior
Budgets Product cost generating methods
investment research level managers
data
Tangibles
• Financial Tactical
• Nonfinancial Considerations
Labour Defective rate
Lead-time Inventory Setup time
absence of products
Operational
Intangibles
Considerations
Quality and Improve Securing
Competitive Data User‘s System
image customer future Teamwork Existing IS Servers
Advantage migration perception integration
improvement relationship business
38

39. Project Identification, Justification, and Planning
Step 1 – Project identification
Project
Identification
1. Identification of IS project 2. Project description 3. Project value 4. Project costs
(Project ownership) (What is the project?) (Benefits) (Anticipated costs)
Anticipated
Requestor and/or Project's objectives Strategic Technical
resources and
department and deliverables criteria criteria
funding needed
Outcome(s) to be Organisational Intra- or Inter-
IS and IT needed
realised excellence dependencies
Stakeholders for Communication Organisational Staff effort
this project? improvement prioritisation required
Impacted on Architecture &
Leadership
infrastructure
organisation development
dependencies
Customer service
Timetable learning
Impact of not doing Affordable &
accessible
this project products/services
“Best practice" to Risk reduction
be used as guidance 39

40. Project Identification, Justification, and Planning
Step 1 – Project types
Type 4 Projects
Type 2 Projects
(research-and-
(product-development-
organisational-change-
like
METHODS WELL DEFINED
like projects)
NO projects)
Project Management
Project Management
Style: Eagle
Style: Coach
Type 3 Projects
Type 1 Projects
(systems-development-
(engineering-like
like
projects)
projects)
YES
Project Management
Project Management
Style: Conductor
Style: Sculptor
YES NO
GOAL WELL DEFINED
40

41. Project Identification, Justification, and Planning
Step 1 – Why projects fail
Inexperience Lack of
in scope and communication
complexity 20%
17% Failure to define
objectives
17%
Technical
issues
14%
Project Management Problems
32%
41

42. Project Identification, Justification, and Planning
Step 1 - Constraints in planning
A: An IS project B: An IS project
is managed stumbles on crisis
Overrun
As an IS
Time Cost project is Time Cost
A managed B
Resources Resources
Performance Performance
42

43. Videocase - Blue Rhino Slows Down to Get
Ahead
What is Blue Rhino's business strategy? How well was that strategy supported
by information systems?
Why did Blue Rhino have to revamp its systems and business processes?
What management, organisation, and technology issues did the company have
to deal with as it built its new systems?
What management, organisation, and technology issues did the company have
to deal with as it built its new systems?
How successful has Blue Rhino been in responding to the requirements of the
Sarbanes-Oxley legislation?
DIRECTIONS
Create multidisciplinary
Review the case
Before lecture: Read the case international teams
(10 minutes)
(3 people)
Explain your conclusions to Discuss the casein your own
Free discussion
other teams team
(10 minutes) 43
(3 minutes by team) (10 minutes)

44. IS Architecture
Step 2 – IS architecture framework
What is an Architecture? A definition of the IS via models
What is an Architecture A representation of the IS via views of
Framework? models
How does this relate to an IS The architecture model guides the
implementation? implementation
44

45. IS Architecture
Step 2 – Building a 2D IS business architecture
Scope (Planner) What
External Requirements and
Business Function Modeling Data
Drivers
Enterprise Model - Conceptual (Business Owner) How
Business Process Models Process
System Model – Logical (Designer) Where
versus
Logical Models Requirements Definition Location Network
Technology Model - Physical (Implementer) Who
Solution Definition and
Physical Models People Role
Development
Detailed Representation - Out of Context (Builder
When
Subcontractor)
As Built Deployment Time Schedule
Functioning Enterprise (User’s View) Why
Functioning Enterprise Evaluation Motivation
45

46. IS Architecture
Step 2 – IS architecture rules
Basic Model = Entities and Relationships
Relationship
Entity Entity
Rule 1: Rule 2: Rule 3: Rule 4: Rule 5:
• Each column • Basic model • Each row • Each cell is • Combining the
has a simple, of each represents a unique cells in one
basic model column is distinct view row forms a
unique complete
description
from that view
What How Where Who When Why
(Data) (Function) (Locations) (People) (Time) (Motivation)
Scope
(Contextual)
Planner
Enterprise Model
(Conceptual)
Business Owner
System Model
(Logical)
Designer
Technology Model
(Physical)
Implementer
Detailed Representation
(Out-of-Context)
Subcontractor
Functioning System 46

47. IS Architecture
Step 2 - Zachman Enterprise Architecture
Framework
What How Where Who When Why
(Data) (Function) (Location) (People) (Time) (Motivation)
List of List of locations List of List of List of
Scope List of things
processes that in which the organisations events/cycles business
(Contextual) important to
the business business important to the important to goals/strategi
Planner the business
performs operates business the business es
Enterprise Model e.g., Business
e.g., Semantic e.g., Business e.g., Workflow e.g., Master e.g., Business
(Conceptual) Logistics
Model Process Model Model Schedule Plan
Business Owner System
System Model e.g., Distributed e.g., Human
e.g., Logical e.g., Application e.g., Process e.g., Business
(Logical) System Interface
Data Model Architecture Structure Rule Model
Designer Architecture Architecture
Technology
e.g., e.g.,
Model e.g., Physical e.g., System e.g., Control e.g., Rule
Technology Presentation
(Physical) Data Model Design Structure Design
Architecture Architecture
Implementer
Detailed
Representation e.g., Data e.g., Network e.g., Security e.g., Timing e.g., Rule
e.g., Program
(Out-of-Context) Definition Architecture Architecture Definition Definition
Subcontractor
Functioning e.g.,
e.g., Data e.g., Function e.g., Network e.g., Schedule e.g., Strategy
System Organisation
47

48. IS Architecture
Step 2 - General enterprise IS architecture
Processes
Enterprise
Systems
Supply Customer
Chain Processes Relationship
Management Management
Customers & Systems Processes Systems Customers &
Distributors Distributors
Enterprise IS automate
Knowledge processes that span
Management multiple business
Systems functions and
organisational levels and
may extend outside the
Sales and Manufacturing Finance and Human organisation
Source: Laudon & Laudon, Chapter 2 Marketing & Production Accounting Resources 48

49. IS Architecture
Step 2 - Specific enterprise IS architecture
Suppliers, Distributors,
Resellers
Supply Chain Management
(Sourcing, Procuring)
Knowledge Management IS, Collaboration IS,
Decision Support IS, Administrative Control
Financial(Accounting/Auditing IS, Partner
IS, Human Resources/Procurement IS,
Relationship Management IS, (Selling,
Distribution), Management Control IS
Logistics Production Distribution
Enterprise Resource Planning IS
Stakeholders
Employees
Partners,
Enterprise Application
Decision Support IS
Integration
Customer Relationship Management IS
Customer
Marketing Sales
Service
Supply Chain Management
(Delivering)
Customers, Resellers
49

50. IS Architecture
Step 2 – A simple network architecture
Network consists of two or more connected computers
Network interface device
(NIC) is the connection Network operating system (NOS)
point between one routes and manages communications on
computer and the network the network and coordinates network
resources (saving or retrieving files on
your hard drive versus a network drive)
Switch has more intelligence than Router (bridge) is a special
a hub and can forward data to a communications processor used to
specified device or destination. route packets of data through different
The switch is used within a given networks, ensuring that the message
network to move information sent gets to the correct address
Number of possible connections on a network
Hub connects network composed of N computers is N×(N-1)
components, sending a packet of
data to all other connected devices If there are 10 computers on a network, there
are 10×9 = 90 possible connections
Source: Laudon & Laudon, Chapter 7 50

51. IS Architecture
Step 2 – IS feasibility
Objectives
• To find out if an IS development project can be done
• ...is it possible?
• ...is it justified?
To suggest possible alternative solutions
• Alternative 1: Insourcing (Build)
• Alternative 2: Buy
• Alternative 3: Lease
• Alternative 4: Partner
• Alternative 5: Outsource
To provide management with enough information to know
• Whether the project can be done
• Whether the final product will benefit its intended users
• What the alternatives are
• Whether there is a preferred alternative
A management-oriented activity
• After a feasibility study, management makes a ―go/no-go‖ decision
• Need to examine the problem in the context of broader business strategy
51

52. IS Architecture
Step 2 – IS feasibility analysis
Operational
Feasibility
• It is the measure of how
well particular IS will
work in a given
environment
• It is people-oriented
Technical
Schedule Feasibility
Feasibility • It is the measure of the
practicality of a specific
• It is a measure of how technical IS solution
reasonable the project and the availability of
timetable is technical resources
• It is computer oriented
Feasibility
Analysis
Legal Feasibility
• It is the measure of Economic
legal aspects such as Feasibility
contracts, liability,
violations, and legal • It is the measure of the
other traps frequently cost-effectiveness of an
unknown to the IS solution
technical staff 52

53. IS Architecture
Step 2 – Feasibility study contents
1. Purpose & scope of the study
• Objectives (of the study)
• Who commissioned it & who did it
• Sources of information
• Process used for the study
• How long did it take,…
2. Description of present situation
• Organisational setting, current system(s)
• Related factors and constraints
3. Problems and requirements
• What‘s wrong with the present situation?
• What changes are needed?
4. Objectives of the new system
• Goals and relationships between them
5. Possible alternatives
• …including ‗do nothing‘
6. Criteria for comparison
• Definition of the criteria
7. Analysis of alternatives
• Description of each alternative
• Evaluation with respect to criteria
• Cost/Benefit analysis and special implications
8. Recommendations
• What is recommended and implications
• What to do next
•E.g. may recommend an interim solution and a permanent solution
9. Appendices
• To include any supporting material
53

54. Whitepaper – Developing a Enterprise
Architecture
Objective
Discus the growing role and importance of enterprise architectures in the
management of organisations
DIRECTIONS
Create multidisciplinary
Before lecture: Read the
international teams
whitepaper
(3 people)
Discuss the whitepaper in
Review the whitepaper
your own team
(5 minutes)
(10 minutes)
Explain your conclusions to
Write team‘s conclusions other teams
(3 minutes by team)
Free discussion
(10 minutes)
54