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MIS IT -architecture-presentation

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  • 1. David HewittJon HannahsChris GrovesIT/IS ARCHITECTURE &BUSINESS STRATEGY
  • 2.  IT/IS Architecture and the Human AnalogyIT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 1 - INTRODUCTION
  • 3.  What is Information Technology Architecture?Information Technology (IT) Architecture is a blueprintthat is developed, implemented, maintained, and usedto explain and guide how an organization’s IT andinformation management elements work together toefficiently accomplish the mission of the organization.Source: DOC Enterprise IT Architecture Advisory GroupIT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 1 - INTRODUCTION
  • 4. Information Technology Architecture Encompasses theFollowing: Channel Management Security and Risk Management Communications Data Management Application Infrastructure IT Facilities Management IT Management IT Architectures and Standards IT Education IT Research and DevelopmentSource: MIT Sloan Center for Information Systems ResearchIT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 1 - INTRODUCTION
  • 5. A traditional IT ArchitectureImplementation:1. Management decides on thestrategic direction for thecompany.2. IT, in conjunction with thebusiness unit, developstechnology solutions tosupport the new initiative.3. IT unit delivers theapplications, data, andtechnology infrastructure toimplement the solution.4. This process starts over eachtime management definesanother strategic initiative.This process can go wrongin 3 ways:1. The strategy isn’t clearenough to act upon, so thecompany builds IT solutionsrather than IT capabilities.2. The company implements ITsolutions piecemeal. Eachstrategic initiative having itsown IT solution, often withdifferent systemsimplemented.3. Because IT is reacting to eachstrategic initiative, ITbecomes a bottleneck andnever becomes an asset inshaping the company’sstrategic future.IT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 1 - INTRODUCTIONSource: Enterprise architecture as strategy: creating a foundation for business execution.
  • 6. 4 Distinct Architecture Stages:1. Silos2. Standardized IT3. Standardized Business Processes4. Business ModularitySource: CIO MagazineIT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 1 - INTRODUCTION
  • 7. Chubb Group of InsuranceCompanies 11th Largest Property andCasualty Insurer Network of 120 Offices in 27countries Over 10,200 employees $50 billion in assets Offer businesses more than 170commercial insuranceproducts, tailored to individualcustomer needsIT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 2 - BUSINESS
  • 8. Chubb Group IT/ISChallenges The company wanted to move from alocalized business unit architectureto a balanced common infrastructureserving both enterprise and businessunit needs. Each of Chubb’s 5 lines of businesshad its own architecture andarchitects. IT architecture needed to bestandardized across the enterprisebut be flexible enough for each of the5 lines of business. The organization had to learn whatwas good to do at the enterprise leveland what was best left to eachbusiness unit.Reasons for Chubb Group’sSuccess Established comprehensive ITArchitecture plan. Established a Chief EnterpriseArchitect. Core IT Architects set strategic ITdirection and standards for theentire organization. IT staff viewed as part of thebusiness team.IT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 2 - BUSINESS
  • 9. Nike Words largest athletic shoecompany. 32 percent worldwide marketshare. $20 billion market cap. Sell 120,000 products during 4cycles of the year.IT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 2 - BUSINESS
  • 10. Nike IT/IS ArchitectureChallenges Nike had 27 order managementsystems around the globe. Had plan to integrate ERP, SCM andCRM into single platform. Goal to decrease manufacturing cycleto match ordering cycle. Decided to implement SAP’s R/3 ERP,I2 supply, demand, and plannersoftware, and Siebel’s CRM software. Estimate project cost: $400 million. Caused company to produce wrongproducts: $100 million in lost sales.Reasons for Nike’s Failure The IT architecture issue was aproblem closely tied to a corebusiness process (factory orders). I2 dealt with predicting demandwhich is not part of Nike’s corebusiness strategies. Implemented the i2 system whilestill using legacy ERP and SCMSystem. Didn’t devote enough resourcesto i2 System because it was thesmaller of the systems.IT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 2 - BUSINESS
  • 11. United Way of Central Ohio Largest nonprofit in central Ohio. 12th largest United Way infederation of over 1300 85 employees $52 million annual fundraisingcampaignIT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 3 – COMPANY RELEVANCE
  • 12. United Way Current IT/ISArchitecture IT/IS functions spread throughout theorganization. Assistant Vice President ofInformation Technology highestranking IT professional in theorganization. Many data silos and legacy systems,each with their own information. Outsource IT/IS technology to ashared service system used by manyUnited Ways. In Silo phase of IT/IS Architecture.Recommendations Basedon Research Develop map of all systemswithin the organization. Develop plan to tie systemstogether via shared database, Involve AVP of IT in Sr.Leadership Team strategicplanning.IT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 3 – COMPANY RELEVANCE
  • 13. IT Architecture and CRM Success Components of a properly installed CRM system are afunction of business drivers. CRM should help a business evolve into a “customer centric”operation. Too often, businesses focus on the technology and not thebusiness strategy results. Customers increasingly expect instant, 24×7 access toinformation and resources. Business must organize their IT/ISArchitecture around the customers desire for 24/7 richinformation.Source: N2Growth.comIT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 4 – BIG 4 SYSTEMS
  • 14. Implementation of MIS Systems and Business Strategy Many companies look to the implementation ofCRM, ERP, BI, and SCM as ways to supercharge their business. The project loses focus of the business strategy and getsmired in the success of the software installation. Businesses should make sure CRM, ERP, SCM, and BIconsultant understand the business strategy. Focus as much on the policies and processes behind the IT/ISarchitecture and not just focus on the software andtechnology.Source: SAP-ROIIT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 4 – BIG 4 SYSTEMS
  • 15. Is You IT/IS Architecture Geared Toward Web 2.0 andSocial Media? Business IT/IS Architecture needs to be flexible for futuregrowth. Having systems that are able to drive business strategyaround Web 2.0 and Social Media openness is important. Having a CRM system that enables the company to listen tocustomers through social media channels is high priority formany businesses currently. Enabling customer information through the website that givesthe same answers as internal systems are important.IT/IS ARCHITECTURE & BUSINESS STRATEGYSUB-TOPIC 4 – BIG 4 SYSTEMS
  • 16.  Gruman, Galen. "The Four Stages of Enterprise Architecture." CIO.com. N.p., 1 Dec.2006. Web. 29 Mar. 2013. <http:// www.cio.com/article/print/27079>. Koch, Christopher. "Nike Rebounds: How (and Why) Nike Recovered from Its Supply ChainDisaster - CIO.com." CIO Magazine. N.p., 15 June2004. Web. 29 Mar. 2013.<http://www.cio.com/article/32334/Nike_Rebounds_How_and_Why_Nike_Recovered_from_Its_Supply_Chain_Disaster?page=8&taxonomyId=3207>. Myatt, Mike. "Customer Relationship Management | N2Growth Blog." n2growth homepage - CEO Coach . N.p., n.d. Web. 29 Mar. 2013.<http://www.n2growth.com/blog/customer -relationship-management/>. Ross, Jeanne W., Peter Weill, and David Robertson. Enterprise architecture as strategy:creating a foundation for business execution . Boston, Mass.: Harvard Business SchoolPress, 2006. Print. Smith, Heather, Richard Watson, and Patrick Sullivan. "Delivering an Effective EnterpriseArchitecture at Chubb Insurance." MIS Quarterly Executive 11.2 (2012): 75-85. Print. Weill, Peter, Mani Subramani, and Marianne Broadbent. "IT Infrastructure for StrategicAgility." Center for Information Systems Research 329 (2002): 1 - 29. Print. Wood, Bill. "CRM, ERP, BI, and IT Investment -- Where Do You Find the Business Benefit?| SAP ROI -- Enterprise Architecture & Business Solutions." SAP ROI -- EnterpriseArchitecture & Business Solutions . N.p., 19 Sept. 2009. Web. 29 Mar. 2013.http://www.r3now.com/crm-erp-bi-and-it-investment-where-do-you-find-the-business-benefit/.SOURCES
  • 17. ?QUESTIONS

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