Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Im information systems


Published on

  • Be the first to comment

  • Be the first to like this

Im information systems

  1. 1. Alex Domínguez Lecture notes, Grenoble Graduate School of Business, France, May 2008.
  2. 2. Objective and Contents 1. Organisation Components 2. IS, IT, and all That 3. Types of IS 4. IS Strategy 5. Project Identification, Justification and Planning 6. IS Architecture 7. Business Process Reengineering 8. IS Acquisitions 9. IS Testing, Installation, and Integration 10. IS Operations, Maintenance, and Updating 11. Internetworks 12. Enterprise IS: ERP, CRM, and SCM 13. Managing International IS 2 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
  3. 3. Information Technology Requirements 3 • Lap Top computer, if possible • Speakers Hardware • Acrobat Reader – Version 7 or higher • Windows Media Player – Version 9 or higher • Real Player – Version 6 or higher Software applications • Internet Connection Telecommunications
  4. 4. Bibliography • 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. Books • BRINT: • CIO: Websites 4
  5. 5. An organisation is made of … OrganisationComponents 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 PEOPLE 5
  6. 6. An organisation is made of PEOPLE, … 6 INFORMATION PEOPLE uses is required by must be self-consistent and normalised Major types of information in organisation: • Human resources information • Finance and accounting information • Manufacturing and production information • Sales and marketing information Information = data + meaning = (symbols + structure) + meaning • It provides answers about ―who‖, ―what‖, ―where‖, and ―when‖ • It is independent of the way it is obtained OrganisationComponents
  7. 7. An organisation is made of PEOPLE, INFORMATION, … • Human resources processes • Hiring employees • Evaluating employees‘ job performance • Evaluating employees‘ in benefits plans • Finance and accounting processes • Paying creditors • Creating financial statements • Managing cash accounts • Manufacturing and production processes • Assembling the product • Checking for quality • Producing bills of materials • Sales and marketing processes • Identifying customers • Making customers aware from the product • Selling the product INFORMATION PROCESSES PEOPLE respond feeds must be normalised and controlled defines respond 7 OrganisationComponents
  8. 8. An organisation is made of PEOPLE, INFORMATION, PROCESSES, … INFORMATION PROCESSES PEOPLE PRODUCTS / SERVICES modify produce • Products are made; services are delivered • Products are used; services are experienced • Products possess physical characteristics we can evaluate before we buy; services do not even exist before we buy them • Products are impersonal; services are personal modify feeds define feedback 8 OrganisationComponents
  9. 9. An organisation is made of PEOPLE, INFORMATION, PROCESSES, PRODUCTS/SERVICES, and … INFORMATION PROCESSES TECHNOLOGY PEOPLE PRODUCTS / SERVICES is fed by and interacts with each component • Technology is the relationship that an organisation has with its tools and crafts, and to what extent organisation can control its environment • Technology is machines, equipment, and systems considered as a unit It refers to technological side of systems 9 OrganisationComponents
  10. 10. The organisation as a system INFORMATION PROCESSES TECHNOLOGY PEOPLE PRODUCTS / SERVICES Complexity of model: • 30 communication channels • Each component must be linked with itself as well as among other 4 components Complexity reveals the intrinsic systemic nature of a organisation A system is a set of interacting or interdependent entities, real or abstract, forming an integrated whole 10 OrganisationComponents
  11. 11. Organisation’s internal and external attributes Standard operating procedures Internal politics Internal structure Internal culture EnvironmentCustomers Government Communities SuppliersCompetitors Worker UnionsStakeholdersRegulatory Agencies 11 OrganisationComponents
  12. 12. Information Systems (IS) An Information System (IS) collects, processes, stores, analyses, and disseminates information for a specific purpose Inputs Information (input) Processing Processing Information Output Information (output) Control Control Information Feedback Environment 12 IS,IT,andAllThat
  13. 13. Types of IS 13 Information Systems Formal Information features Agreed-upon procedures Standard inputs and outputs Fixed definitions Strategic information Long-range planning policies Decision Support Systems Managerial information Policy implementation and control Management Information Systems Operational information Information needed to operate business Data processing Systems Informal Office gossip networks Group of friends Information exchange Chat systems Computer-based Based on computers Used for handling business applications IS,IT,andAllThat
  14. 14. 14 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 IS,IT,andAllThat
  15. 15. Computers versus IS An IS involves much more than computers The successful application of an IS requires an understanding of the business and its environment that is supported by the IS Organisation Management Technology • Computer- Based Information Systems 15 IS,IT,andAllThat
  16. 16. 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 IS,IT,andAllThat
  17. 17. 17 Paper - IT Doesn’t Matter Before lecture: Read the paper Create multidisciplinary international teams (3 people) Review the paper (5 minutes) Discuss the paper in your own team (10 minutes) Explain your conclusions to other teams (3 minutes by team) Free discussion (10 minutes) Objective Dimension the importance of IT into organisations DIRECTIONS
  18. 18. Sales and Marketing Manufacturing & Production Finance and Accounting Human Resources KIND OF IS GROUPS SERVED Strategic Level Senior Managers Management Level Middle Managers Knowledge Level Knowledge & Data Workers Operational Level Operational Managers IS versus Groups served Source: Laudon & Laudon, Chapter 2 18 TypesofIS Executive Support Systems Management Information Systems Decision Support Systems Knowledge Work Systems Office Automation Systems Transaction Processing Systems
  19. 19. IS definitions • Address non-routine decisions requiring judgment, evaluation, and insight because there is no agreed-on procedure for arriving a solution Executive Support Systems (ESS) • Support non-routine decision making, focus on problems that are unique and rapidly changing, for which the procedure for arriving at a solution may not be fully predefined in advance Decision- Support Systems (DSS) • Provide managers with reports and, in some cases, with online access to the organisation‘s current performance and historical records Management Information Systems (MIS) • Promote the creation of a new knowledge and ensure that new knowledge and technical expertise are properly integrated into the business Knowledge Work Systems (KWS) • Increase productivity by supporting the coordinating and communicating activities of the typical office Office Automation Systems (OAS) • Perform and record the daily routine transactions necessary to conduct business Transaction Processing Systems (TPS) 19 TypesofIS
  20. 20. Kind of IS Type of IS Information Inputs Processing Information Outputs Groups Served Strategic Level Executive Support Systems (ESS) Aggregate data, external, internal Graphics Simulations Interactive Projections Responses to queries Senior Managers Management Level Decision- Support Systems (DSS) Low-volume data Analytic models Data analysis tools Interactive Simulations Analysis Special reports Decisions analyses Responses to queries Professionals Staff managers Management Information Systems (MIS) Summary transactions data High-volume data Simple models Routine reports Simple models Low-level analysis Summary Exception reports Middle Managers Knowledge Level Knowledge Work Systems (KWS) Design specifications Knowledge base Modelling simulations Models Graphics Professionals Technical staff Office Automation Systems (OAS) Documents schedules Document management Scheduling Communications Documents Schedules Mail Clerical workers Operational Level Transaction Processing Systems (TPS) Transactions Events Sorting Listing Merging updating Detailed reports lists Summaries Operations personnel Supervisors Systemic nature of IS 20 TypesofIS
  21. 21. Kind of IS Type of IS Sales and Marketing Manufacturing & Production Finance Accounting Human Resources Groups Served Strategic Level Executive Support Systems (ESS) N-year sales trend forecasting N-year operating plan N-year budget forecasting Profit planning Personnel planning Senior Managers Management Level Decision- Support Systems (DSS) Sales region analysis Production scheduling Cost analysis Pricing / profitability analysis Contract cost analysis Middle ManagersManagement Information Systems (MIS) Sales management Inventory control Annual budgeting Capital investment analysis Relocation analysis Knowledge Level Knowledge Work Systems (KWS) Engineering IS Graphics IS Managerial IS Knowledge and Data WorkersOffice Automation Systems (OAS) Word processing Document imaging Electronic calendars Operational Level Transaction Processing Systems (TPS) Order tracking Order processing Machine control Plant Scheduling Material movement control Securities trading Cash management Payroll Accounts payable Accounts receivable Compensation Training and development Employee record keeping Operational Managers The six major types of IS 21 TypesofIS
  22. 22. IS and decision making New Products New Markets TPS OAS MIS KWS DSS ESS Organisational Level Type of Decision Operational Knowledge Management Strategic Structured Accounts Receivable Electronic Scheduling Production Cost Overruns semi-structured Budget Preparation Project scheduling Facility Location Unstructured Product Design 22 TypesofIS
  23. 23. Interrelationships among IS ESS MIS DSS KWS & OAS TPS 23 TypesofIS
  24. 24. 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. Before lecture: Watch the video Create multidisciplinary international teams (3 people) Review the video (10 minutes) Discuss the video in your own team (10 minutes) Explain your conclusions to other teams (3 minutes by team) Free discussion (10 minutes) DIRECTIONS
  25. 25. 25 IS Management Lens Context Filter Alignment •Performance Measurement / Analysis / Reporting •Business Management Liaison / Service Level Agreement •Governance and Leadership Resiliency •Data Quality and Management •Business Continuity / Disaster Recovery •Security /Confidentiality / Privacy Futures •Emerging Technologies Support •Organisation / People / Skills •Marketing Communications •Sourcing Management & Legal Contract Issues •Finance / Budgeting Leverage •User Technology Competencies & Skills Operations •Service Delivery (Operations & Initiatives) •Enterprise Core Systems • 6 IS business risk drivers • 14 main competencies • Qualitative and quantitative focus ISStrategy
  26. 26. 26 Managers of IS ISStrategy IS Management CEO & CIO Managing Business Managing IS Strategy CIO & CTO Managing Application Development Managing Technology CIO & IT Managers Managing the IT Organisation Managing the IT Infrastructure
  27. 27. 27 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 ISStrategy
  28. 28. 28 The CIO yesterday and today ISStrategy
  29. 29. 29 Strategy and IS ISStrategy • Business Decisions • Objectives and Direction • Change Business Strategy Where is the business going and why • Business Based • Demand Orientated • Application Focused IS Strategy What is required • Activity Based • Supply Orientated • Technology Focused IT Strategy How it can be delivered Direction for business Needs and priorities Supports business Infrastructure and services IS IMPACT AND POTENTIAL Business Strategies Business Processes Data Classes Information Architecture Organisational Databases Applications
  30. 30. 30 5 major steps in IS strategy and planning ISStrategy IS and enabler Identify IS projects From business goals to information needs Justify IS investment System-required functionalities Need to solve problems Step 1 - Project Identification, Justification, and Planning Information Architecture Technical Architecture Data Architecture Organisation Architecture Application Architecture Feasibility Step 2 – IS Architecture Testing Installation Integration Training Security Conversion Deployment Step 4 – Testing, Installation, and Integration Operations Maintenance Updating Replacement Step 5 – Operations, Maintenance, and Updating Build – How, which methodology Buy – What, from whom Lease – What, from whom Partner – Which partner, how to partner Outsource – Where to outsource Step 3 – Acquisition /Development) Options Business Process Reengineering Business Partners Business Partners Vendor Management Project Management Evaluation Management IT Infrastructure Business Partners
  31. 31. 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? Before lecture: Watch the video Create multidisciplinary international teams (3 people) Review the video (10 minutes) Discuss the video in your own team (10 minutes) Explain your conclusions to other teams (3 minutes by team) Free discussion (10 minutes) DIRECTIONS
  32. 32. 32 Step 1 - IS strategic planning process Business Objectives Business Strategic Plan IS Objectives IS Vision IS Strategic Initiatives IS Activities Portfolio IS Strategic Plan Financial Investment (Cost/Benefit) Risk Assessment (Project Risks) Personnel Requirements (Skills needed) Internal Efforts (Activities) External Efforts (Environment trends) Project Schedule Analysis Gantt Chart Time and Links among activities First Year Budget First Year Profits Understanding of Organisation Strategy Identifying IS Vision Defining IS Strategic Objectives Analysing IS Objectives Portfolio Analysing IS Objectives Portfolio ProjectIdentification,Justification,andPlanning
  33. 33. 33 Step 1 – IS strategic planning (growth model) Initiation • When computers are initially introduced Expansion (Contagion) • Centralised growth takes place as users demand more applications Control • In response to management concern about cost versus benefits, systems projects are expected to show a return Integration • Expenditures on integrating (via telecommunications and databases) existing systems Data Administration • Information requirements rather than processing drive the applications portfolio ProjectIdentification,Justification,andPlanning
  34. 34. 34 Step 1 – Determining Critical Success Factors Ask What objectives are central to the organisation? What are the critical factors that are essential to meeting these objectives? What decisions or actions are key to these critical factors? What variables underlie these decisions, and how are they measured? What IS can supply these measures? ProjectIdentification,Justification,andPlanning
  35. 35. 35 Step 1 – Defining scenarios • Descriptions of alternative coherent and plausible futures • ―Narratives‖ of the evolving dynamics of the future • Specific strategy-focused views of the future • The combination of tacit and explicit knowledge They are • Predictions • Variations around a midpoint/base case • Generalised views of feared or desired Futures • The product of outside futurists or consultants They are not • The short to medium term prognosis is unstable / uncertain • You need to understand ―why‖ something is happening • 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 use them if … • The scenarios aren‘t designed to address a clear strategic question • 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 Do not use them if … ProjectIdentification,Justification,andPlanning
  36. 36. 36 Step 1 – Scenario planning Develop a Strategic Vision • Balance Commitment • Flexibility Monitor in Real Time • Adjust Dynamically Develop Multiple Future Scenarios • Embracing • Uncertainty Identify Key Success Factors Generate Strategic Options Implement Effectively ProjectIdentification,Justification,andPlanning
  37. 37. ProjectIdentification,Justification,andPlanning 37 Step 1 – From scenarios to strategy Actions that are needed whatever the scenario (Imperatives) Involves assessing actions against capabilities and competencies, identifying opportunities and reviewing risks Drivers of change Scenarios Strategic implications Recommen- dations for future strategy & action Actions needed to reach a preferred future outcome (Preferences)
  38. 38. ProjectIdentification,Justification,andPlanning Lead-time Inventory Labour absence Defective rate of products Setup time Budgets Priority of investment Product cost Market research ROI & profit level Competitive Advantage Quality and image improvement Improve customer relationship Securing future business Teamwork Existing IS Data migration User‘s perception Servers System integration Performance indicators generating data Evaluation methods Security Involvement of senior managers Strategic objectives of investment in IS Support to corporate strategy Top management support Competitive performance objectives Long-term- costs and benefits 38 Step 1 - Why invest in IS projects Strategic Considerations Tactical Considerations Operational Considerations Intangibles Tangibles • Financial • Nonfinancial
  39. 39. ProjectIdentification,Justification,andPlanning 39 Step 1 – Project identification Project Identification 1. Identification of IS project (Project ownership) Requestor and/or department 2. Project description (What is the project?) Project's objectives and deliverables Outcome(s) to be realised Stakeholders for this project? Impacted on organisation Timetable Impact of not doing this project “Best practice" to be used as guidance 3. Project value (Benefits) Strategic criteria Organisational excellence Communication improvement Leadership development Customer service learning Affordable & accessible products/services Risk reduction Technical criteria Intra- or Inter- dependencies Organisational prioritisation Architecture & infrastructure dependencies 4. Project costs (Anticipated costs) Anticipated resources and funding needed IS and IT needed Staff effort required
  40. 40. 40 Step 1 – Project types Type 2 Projects (product-development- like projects) Project Management Style: Coach Type 1 Projects (engineering-like projects) Project Management Style: Conductor Type 4 Projects (research-and- organisational-change- like projects) Project Management Style: Eagle Type 3 Projects (systems-development- like projects) Project Management Style: Sculptor GOAL WELL DEFINED METHODSWELLDEFINED YES NO YES NO ProjectIdentification,Justification,andPlanning
  41. 41. 41 Step 1 – Why projects fail Failure to define objectives 17% Project Management Problems 32% Technical issues 14% Inexperience in scope and complexity 17% Lack of communication 20% ProjectIdentification,Justification,andPlanning
  42. 42. 42 Step 1 - Constraints in planning A Resources Performance CostTime A: An IS project is managed As an IS project is managed Performance Time B: An IS project stumbles on crisis B Resources Overrun Cost ProjectIdentification,Justification,andPlanning
  43. 43. 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? Before lecture: Read the case Create multidisciplinary international teams (3 people) Review the case (10 minutes) Discuss the casein your own team (10 minutes) Explain your conclusions to other teams (3 minutes by team) Free discussion (10 minutes) DIRECTIONS
  44. 44. 44 Step 2 – IS architecture framework What is an Architecture? A definition of the IS via models What is an Architecture Framework? A representation of the IS via views of models How does this relate to an IS implementation? The architecture model guides the implementation ISArchitecture
  45. 45. ISArchitecture 45 Step 2 – Building a 2D IS business architecture Functioning Enterprise (User’s View) Functioning Enterprise Evaluation Detailed Representation - Out of Context (Builder Subcontractor) As Built Deployment Technology Model - Physical (Implementer) Physical Models Solution Definition and Development System Model – Logical (Designer) Logical Models Requirements Definition Enterprise Model - Conceptual (Business Owner) Business Process Models Scope (Planner) External Requirements and Drivers Business Function Modeling Why Motivation When Time Schedule Who People Role Where Location Network How Process What Data versus
  46. 46. 46 Step 2 – IS architecture rules Rule 1: • Each column has a simple, basic model Rule 2: • Basic model of each column is unique Rule 3: • Each row represents a distinct view Rule 4: • Each cell is unique Rule 5: • Combining the cells in one row forms a complete description from that view What (Data) How (Function) Where (Locations) Who (People) When (Time) Why (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 Basic Model = Entities and Relationships Entity Relationship Entity ISArchitecture
  47. 47. 47 Step 2 - Zachman Enterprise Architecture Framework What (Data) How (Function) Where (Location) Who (People) When (Time) Why (Motivation) Scope (Contextual) Planner List of things important to the business List of processes that the business performs List of locations in which the business operates List of organisations important to the business List of events/cycles important to the business List of business goals/strategi es Enterprise Model (Conceptual) Business Owner e.g., Semantic Model e.g., Business Process Model e.g., Business Logistics System e.g., Workflow Model e.g., Master Schedule e.g., Business Plan System Model (Logical) Designer e.g., Logical Data Model e.g., Application Architecture e.g., Distributed System Architecture e.g., Human Interface Architecture e.g., Process Structure e.g., Business Rule Model Technology Model (Physical) Implementer e.g., Physical Data Model e.g., System Design e.g., Technology Architecture e.g., Presentation Architecture e.g., Control Structure e.g., Rule Design Detailed Representation (Out-of-Context) Subcontractor e.g., Data Definition e.g., Program e.g., Network Architecture e.g., Security Architecture e.g., Timing Definition e.g., Rule Definition Functioning System e.g., Data e.g., Function e.g., Network e.g., Organisation e.g., Schedule e.g., Strategy ISArchitecture
  48. 48. Step 2 - General enterprise IS architecture Source: Laudon & Laudon, Chapter 2 Knowledge Management Systems Customer Relationship Management Systems Enterprise Systems Processes Processes Processes Customers & Distributors Customers & Distributors Enterprise IS automate processes that span multiple business functions and organisational levels and may extend outside the organisationSales and Marketing Manufacturing & Production Finance and Accounting Human Resources Supply Chain Management Systems 48 ISArchitecture
  49. 49. Step 2 - Specific enterprise IS architecture Suppliers, Distributors, Resellers Customers, Resellers Supply Chain Management (Sourcing, Procuring) Supply Chain Management (Delivering) Logistics Production Distribution Marketing Sales Customer Service Enterprise Resource Planning IS Customer Relationship Management IS Decision Support IS Enterprise Application Integration KnowledgeManagementIS,CollaborationIS, DecisionSupportIS,AdministrativeControl IS,HumanResources/ProcurementIS, Employees Financial(Accounting/AuditingIS,Partner RelationshipManagementIS,(Selling, Distribution),ManagementControlIS Partners, Stakeholders 49 ISArchitecture
  50. 50. 50 Step 2 – A simple network architecture Network consists of two or more connected computers Router (bridge) is a special communications processor used to route packets of data through different networks, ensuring that the message sent gets to the correct address Network interface device (NIC) is the connection point between one computer and the network Network operating system (NOS) routes and manages communications on the network and coordinates network resources (saving or retrieving files on your hard drive versus a network drive) Hub connects network components, sending a packet of data to all other connected devices Switch has more intelligence than a hub and can forward data to a specified device or destination. The switch is used within a given network to move information Number of possible connections on a network composed of N computers is N×(N-1) If there are 10 computers on a network, there are 10×9 = 90 possible connections Source: Laudon & Laudon, Chapter 7 ISArchitecture
  51. 51. 51 Step 2 – IS feasibility • To find out if an IS development project can be done • it possible? • it justified? Objectives • Alternative 1: Insourcing (Build) • Alternative 2: Buy • Alternative 3: Lease • Alternative 4: Partner • Alternative 5: Outsource To suggest possible alternative solutions • 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 To provide management with enough information to know • After a feasibility study, management makes a ―go/no-go‖ decision • Need to examine the problem in the context of broader business strategy A management-oriented activity ISArchitecture
  52. 52. 52 Step 2 – IS feasibility analysis Feasibility Analysis Operational Feasibility •It is the measure of how well particular IS will work in a given environment •It is people-oriented Technical Feasibility •It is the measure of the practicality of a specific technical IS solution and the availability of technical resources •It is computer oriented Economic Feasibility •It is the measure of the cost-effectiveness of an IS solution Legal Feasibility •It is the measure of legal aspects such as contracts, liability, violations, and legal other traps frequently unknown to the technical staff Schedule Feasibility •It is a measure of how reasonable the project timetable is ISArchitecture
  53. 53. 53 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 ISArchitecture
  54. 54. 54 Whitepaper – Developing a Enterprise Architecture Before lecture: Read the whitepaper Create multidisciplinary international teams (3 people) Review the whitepaper (5 minutes) Discuss the whitepaper in your own team (10 minutes) Write team‘s conclusions Explain your conclusions to other teams (3 minutes by team) Free discussion (10 minutes) Objective Discus the growing role and importance of enterprise architectures in the management of organisations DIRECTIONS
  55. 55. BusinessProcessReengineering 55 Steps 1 and 2 - Business Process Reengineering (BPR) BPR refers to the redesign of business processes, its associated systems and organisational structures The aim of BPR is to achieve dramatic improvement in process performance Business Operations Outcomes Process oriented approach to IS implementation Workflow management Streamlined business processes Cost Reduction Continuous improvement
  56. 56. BusinessProcessReengineering 56 1. Preparation & coordination of a BPR project Duration: 2 days Participants: BPR team, BPR consultants Objectives: • · To establish a strong management support • · To explain to the members of the BPR implementation team the implementation details of the project and their role in the successful outcome in the BPR effort 2. Business diagnosis & measurements (AS-IS model) Duration: 4 weeks Participants: BPR team, BPR consultants, personnel involved with processes Objectives: • To diagnose & identify problematic areas in the current processes • To measure the performance characteristics of the current processes based on measurable factors such as average cycle time, delays, number of mistakes or number of customer complaints 3. Selection of processes for change & modelling Duration: 7 weeks Participants: BPR team, BPR consultants Objectives: • To identify the strategic processes that are feasible to change • To redesign and model the selected processes 4. Technical design of the solution using IT (TO-BE model) Duration: 10 weeks Participants: BPR team, BPR consultants, IT experts Objectives: • To automate modelled business processes (step 2) using networks and workflow tools • To redesign and model the selected processes 5. Personnel adjustment & training Duration: 10 weeks Participants: Process team members, process coordinator, trainers Objectives: • To train personnel in the new ways of working using IS in the redesigned processes. • To redesign and model the selected processes 6. Management of change & employee empowerment Duration: 1 week Participants: BPR team, BPR consultants, process team, executive management Objectives: • To establish a positive attitude for the change between employees • To minimise the resistance to change between employees by empowering their position based on performance appraisal and bonus systems 7. Introduction of new processes into business operations Duration: Day and time are set by executive management Participants: The whole business organisation Objectives: • To set the time and date of operating under the new processes, emphasising the fact that working under the old processes is not an acceptable practice 8. Continuous improvement Duration: Runs dynamically and continuously after the end of the project Participants: BPR implementation team Objectives: • To capitalise from the BPR project and develop internal experts for other BPR projects
  57. 57. 57 Steps 1 and 2 - The 3 R’s of reengineering Redesign • Simplify • Standardise • Empowering • Employeeship • Groupware • Measurements Retool • Networks • Intranets • Extranets • Workflow Reorchestrate • Synchronise • Processes • IS • Human Resources Customer focus Speed Comprehension Flexibility Quality Innovation Productivity BusinessProcessReengineering
  58. 58. 58 So … who needs BPR? Is Information Management just another hype? (alternative link: Before lecture: Watch the video Create multidisciplinary international teams (3 people) Review the video (10 minutes) Discuss the video in your own team (10 minutes) Explain your conclusions to other teams (3 minutes by team) Free discussion (10 minutes) DIRECTIONS
  59. 59. 59 Step 3 – IS acquisition options Insourcing (Build) Buy Lease Partner Outsourcing IS Acquisition Options IS Acquisition Options Insourcing (Build) Buy LeasePartner Outsourcing ISAcquisitions
  60. 60. Strategy Recruit, Hire, Train Processes Management Tracking & Reporting 60 Step 3 – Insourcing environment Infra- Structure Desktop Computers Phones Inter- networking Computer Servers ISAcquisitions
  61. 61. 61 Step 3 – Insourcing types Insourcing (building) From scratch Considered only for specialised applications (Components are not available) Expensive and slow process, but it will provide the best fit From components Companies with experienced IS staff can use … Standard components Some software languages Third-party subroutines From a software standpoint It offers the greatest flexibility and can be the least expensive option in the long run It may also result in a number of false starts and wasted experimentations ISAcquisitions
  62. 62. 62 Step 3 – Reasons for insourcing Strategic Considerations Strengths Weaknesses Enable staff to develop professionally Project resources/timeline may not allow time for re-skilling Use existing best-in-class abilities • Opportunity cost of resources time may be high • Best use of resources may be elsewhere Maintain control over important agency projects Internal management and skills are insufficient to achieve project success Minimise risks of managing a vendor relationship • Must continue to resolve internal resource problems and weaknesses • If resources leave, project deadlines may be jeopardised Responsiveness to change – no contract adjustments needed Difficulties with addressing scope change may be still affect project timelines and budgets Financial Considerations Strengths Weaknesses Costs are more defined and explicit, and more easily controlled Time and labour overruns may occur in the environment, and cost impact on overtime, etc. may vary significantly from month-to-month Leverage the use of existing IT equipment and skills An optimal solution may require newer technologies and skills Extra costs of contract management overhead are foregone Day-to-day, detailed management costs are experienced ISAcquisitions
  63. 63. ISAcquisitions 63 Step 3 –Insourcing System Development Life Cycle (SDLC) and its deliverables Planning & Requirements Analysis Phase Identify business; functional and technical requirements Design & Development Phase Complete system design, build, and test prototype Integration, Test & Implementation Phase Deploy pilot and production system System Operation Phase Execute and control support operations plans Project Management Plan Project Schedule Feasibility Study Requirements Traceability Matrix Systems Boundary Document Requirements Document High Level Design and Development Project Schedule High Level Design Document Detailed Design Document Test Plan Document Prototype Test Results Document Support, Implementation, and Training Plan Documents Design and Development Project Management Plan and Schedule High Level Implementation Project Schedule Perform User, Administration and Support Training Execute and Test Pilot Implementation Post-Pilot Reconciliation Execute, Production System Implementation Execute Acceptance Testing Prepare As-Built Documentation Initiate System Operations and Support Plan Execute Change / Configuration Management Plan
  64. 64. 64 Step 3 – In house building pitfalls ISAcquisitions
  65. 65. ISAcquisitions 65 Step 3 – Buying advantages and disadvantages Advantages of the ―buy‖ option Many different types of-the-shelf software are available Much time can be saved by buying rather than building The organisation can know what it is getting before it invests in the software The organisation is not the first and only user Purchased software may avoid the need to hire personnel dedicated to the project The vendor updates the software frequently The price is usually much lower for a buy option Disadvantages of the ―buy‖ option Software may not exactly meet the organisation‘s needs Software may be difficult or impossible to modify, or it may require huge business process changes to implement The organisation will not have control over the software improvements and new versions (may only recommend) Purchased software can be difficult to integrate with existing (legacy) systems Vendors may drop a product or go out of business
  66. 66. ISAcquisitions 66 Step 3 – Buying cycle (example on software) Source: Become aware of a need Become aware that solutions exist to address the need Feel urgency to address the need Decide to seek a solution for a need Start Looking Research Alternatives Manage Risk Negotiate Purchase Pilot Solution Deploy Solution Broadly Develop plan and schedule for deployment Purchase/develop training programs Set up systems for solution operation Deploy solution broadly Manage solution deployment process Contact trusted colleagues for initial information and recommendations Research alternative solutions, costs, include extensions to current solutions Issue RFI to known vendors (formal process only) Justify and allocate resources to address the need Identify risk of purchase Develop risk mitigation needs Contact reference customers provided by vendors Request formal quote (RFQ) from select vendors Negotiate with top few vendors for best value solution Choose vendor and gain approval to purchase Contract to purchase and receive delivery of solution Train pilot program participants Deploy solution in pilot program Review pilot program results Defining Requirements Develop prioritised requirements for a solution Request form proposal (RFP) to vendors for more information and pricing Compare vendors, eliminate vendors that cannot address the need Request presentation, demonstration of vendor solutions
  67. 67. 67 Step 3 - Leasing Leasing can be done in one of two ways Leasing the application from an outsourcer and install it on the organisation‘s premises The vendor can help with the installation and frequently will offer to also contract for the operation and maintenance of the system Many conventional applications are leased this way Using an application system provider (ASP), is becoming more popular Lease An agreement whereby the owner of something (the Lessor) grants the right of possession to another party (i.e., the Tenant or Lessee) for a specified period of time (i.e., the Lease Term) and for a specified consideration (i.e., rent) Application Service Provider (ASP) •An organisation that hosts software applications on its own servers within its own facilities •Customers access the application via private lines or the Internet ISAcquisitions
  68. 68. 68 Step 3 – Reason to lease Reasons to Lease • Help smooth budget spikes • Facilitate rapid technology deployment • Facilitate standardisation efforts • Provide an effective disposal strategy for used equipment Reasons not to Lease • Lack of an in-house IS asset management program • Unacceptable risks of signing a multi-year contract committing to one technology or vendor • Lack of negotiation and contract management skills • Inability to strictly adhere to contract length, terms, and conditions • Lack of a strong architectural plan for technology ISAcquisitions
  69. 69. 69 Step 3 – How to decide to lease (example) Source: Gartner, Inc. Leasing Decision Drivers for PCs, Laptops and Distributed Equipment, January 1999. Replacement Cycle Is the desktop cycle 36 moths or less for notebooks and high- end workstations? Asset Management Are routines in place to track machines, order replacements, and facilities returns at the end of the lease term? Strategic View Is there a leveraged payback from acquiring equipment immediately? Stable Applications • Reasonable stable applications software? • Risk of early obsolescence an issue? Stop! Leasing may not be the low-cost solution for your organisation Yes No Yes Yes No No No LEASE Yes ISAcquisitions
  70. 70. 70 Step 3 – How to lease Lessee of IS Leasing Entity (Intermediary) Lessor1. Chosen IS provider 3. Lessee Analysis 2. Leasing request 4. Leasing agreement 5. Buy IS6. Deliver IS 7. Choose Final Option •Return •Buy •New Lease ISAcquisitions
  71. 71. ISAcquisitions 71 Step 3 – Some questions & answers about leasing • Attempt to match your lease term to the useful or optimum life of the equipment you are leasing How do I decide how long my lease term should be? • It is permissible to upgrade leased equipment as long as the upgrades do not diminish the value of the equipment • Remember that the leased item belongs to the Lessor in an operating lease, the Lessee only has the right to use the item Can upgrade be made to the leased equipment? • It is always prudent to plan your end of lease options in advance to avoid future surprises or inconvenience • Leases typically have a variety of end-of-term options: Return the equipment, extend the lease, and purchase the equipment for fair market value or residual value What are my options at the end of the lease? • Be aware that leasing companies are entitled to fair market compensation for the expected income and administrative costs related to the termination of your lease • In the extreme, terminating a lease can result in your requirement to completely fulfil the obligations of the lease equipment How do I terminate or buy the equipment before the lease term is over? • This is a complex situation and the course of action will vary depending on your particular circumstances • First contact the supplier of the equipment to have the issues attended to and to determine what remedies are available under the warranty What happens if I am unsatisfied with my equipment and wish to return it?
  72. 72. 72 Step 3 – Partnership Partnership A cooperative relationship between people or groups (partners) who agree to share responsibility for achieving some specific goal Supplies and Suppliers Manufacturing Assembly Production, HRM, Finance, Accounting, Engineering Sales, Customer Service Distribution, Marketing Channels Customers e-Commerce Back Office Front Office Integration Business Partners ISAcquisitions
  73. 73. 73 Step 3 – Partnership models Commodity Vendor Preferred Vendor Value Added Vendor Alliance Cooperation Strategic Partnership Maturity ISAcquisitions
  74. 74. ISAcquisitions 74 Step 3 – Internal partnership advantages Education, Information, and Experiences • Bi-directional exchange of know-how • Personnel attend, participate, and report on key conferences world-wide • Project attracts visits by world‘s leading experts • Regular seminar series and working group meetings • Early access to scientific publications, journals and technical report series • Relationship with other partners provides intelligence about world-wide activities • Video, computer, and paper library of key internal and external research work and results Demonstrations of and Experimentation with Advanced Systems • Dedicated demonstration facilities for prototyping of new systems • Field trials provide hands-on experience with advanced products and prototypes Technology Acquisition, Intellectual Property • Intellectual property policy enabling and encouraging technology transfer to partners • Prototype builds and deployment industry partner sites Access to Expertise • Recruitment of experts • Opportunity to involve leading academics in industry lead projects Alliance with World-Wide Partners • Build business alliances with other partners having complementary skills
  75. 75. 75 Step 3 - Outsourcing Outsourcing involves the transfer of the management and/or day-to-day execution of an entire business function to an external service provider Information Technology Outsourcing (ITO), therefore, is a subset of business process outsourcing ITO falls under the domain of the CIO Business Process Outsourcing (BPO) is the outsourcing of a specific business process task, such as payroll Back office outsourcing – It includes internal business functions such as billing or purchasing Front office outsourcing – It includes customer- related services such as marketing or tech support ISAcquisitions
  76. 76. ISAcquisitions Step 3 – Reasons for outsourcing 76 Strategic Considerations Strengths Weaknesses Can be leveraged to improve operating efficiency, and migration to better and more efficient methods of computing can be facilitated Loss of control over day-to-day decision-making Enable changes in an organisation‘s culture and processes Risk of becoming tied to one vendor or technology, making responsiveness to changes more difficult Allows IS personnel to focus on strategic planning and new areas of development/core processes • Outsourcing agreement must be managed effectively by knowledgeable staff to ensure vendor‘s ability to deliver services and products • Identification of core processes may change over time Provides access to expert knowledge in old and new technology areas Ensure knowledge transfer so that reductions in staff skills and staff knowledge of IS needs/systems is minimised Can be leveraged to respond quickly to legislative mandates, new technologies, and new business needs • High exist barriers • Once a contract is entered, it can be difficult to back out Financial Considerations Strengths Weaknesses Cost savings on equipment and staffing through vendors economies of scale May become tied to obsolete technology so vendor can achieve economies of scale Smother cash flow as predetermined amounts go to the vendor, who buys material and equipment Locking in to one vendor without the ability to take the program in- house or switch to another vendor will cause price increases when the contract is renewed Access to technology without capital investment • Cost of outsourcing agreement is dependent upon contract terms and conditions for changes, maintenance, etc. • Cost may spiral quickly Management time and money savings through reduced need to oversee day-to-day operations Costs to organisation in terms of staff time for contract management may be higher than anticipated
  77. 77. ISAcquisitions 77 Step 3 – Outsourcing top 10Top 10 Reasons to Outsource Top 10 Factors in Vendor Selection Reduce and control operating costs Commitment to quality Improve organisation focus Price Gain access to world-class capabilities Reference/reputation Free internal resources for other purposes Flexible contract terms Necessary resources are not available internally Scope of resources Accelerate reengineering benefits Additional value-added capability Function is difficult to manage internally or is out of control Cultural match Make capital funds available Existing relationship Share risks Location Cash infusion Other Top 10 Factors for Successful Outsourcing Top 10 IS Areas Being Outsourced Understand company goals and objectives Maintenance and repair A strategic vision and plan Training Selecting the right vendor Applications development Ongoing management of the relationship Consulting and reengineering A properly structured contract Mainframe data centres Open communication with affected individuals/groups Client/server services and administration Senior executive support and involvement Network administration Careful attention to personal issues Desktop services Near term financial justification End-user support Use of outside expertise Total IS outsourcing
  78. 78. 78 Step 3 – Outsourcing decision flowchart Are you evaluating all IS services or one activity? • Gather information on IS needs • Identify IS activities, strengths, weaknesses Gather information on organisation needs and priorities Is this activity required? Does the organisation need to own the activity? Does the organisation need to perform the process? Evaluate business needs by activity Consider Outsourcing Activity Measurement- Benchmarking Possibility of improvement? Accurate measures/understanding of activity? Keep internal, but evaluate performance • If no possibility for improvement, keep in house • If no accurate measures, or understanding exists, these must be known before outsourcing can proceed Choice of options Determined by cost- benefit analysis, business case All other options: reengineering, leasing, etc. Outsource activity Prepare for vendor selection, contract, etc. All activities One activity For each activity For the activity No Yes Yes No Yes Yes to both No to either Or Or No ISAcquisitions
  79. 79. 79 Step 3 – Outsourcing process Define organisation needs and outcomes Analyse options to achieve outcomes Establish measurements/ requirements Select vendors Negotiate contract Manage transition to outsourcing Manage, evaluate, monitor contract Manage transition at end- of-contract All other options Organisation Strategy Plan Organisation Information Resources Strategy Plan Outsourcing ISAcquisitions
  80. 80. 80 Step 3 – Offshoring Offshoring is a type of outsourcing Offshoring simply means having the outsourced IS business functions done in another country Offshoring is done in order to Reduce labor expenses Enter new markets Tap talent currently unavailable domestically Overcome regulations that prevent specific activities domestically Related terms to Offshoring are Nearshoring which implies relocation of business processes to (typically) lower cost foreign locations, but in close geographical proximity Inshoring which means picking services within a country Bestshoring picking the "best shore" based on various criteria ISAcquisitions
  81. 81. 81 Step 3 – Key factors to decide where offshore ISAcquisitions
  82. 82. 82 Step 3 – Offshoring in the world ISAcquisitions
  83. 83. ISAcquisitions 83 Step 3 – Insourcing versus Outsourcing (1) Insourcing Low Level Outsourcing MRD = Market Research Document PRD = Priorisation Research Document MRD = Market Research Document PRD = Priorisation Research Document
  84. 84. ISAcquisitions 84 Step 3 – Insourcing versus Outsourcing (2) High Level Outsourcing Complete Technical Outsourcing MRD = Market Research Document PRD = Priorisation Research Document MRD = Market Research Document PRD = Priorisation Research Document
  85. 85. 85 Case: Pilkington PLC Detail the reasons for the total outsourcing decision at Pilkington. Do you think the decision makes the most sense or was there an equally or more viable alternative? From your reading of the case, what do you think are the major business, technical and economic factors a company needs to take into account when making an IT sourcing decision? What in-house capability did Pilkington retain? Was this enough? Were there advantages in keeping in-house greater technical expertise? Consider the questions at the end of the case, and the problem posed by Jo Boyers. What directions would you recommend for Pilkington? Give reasons for your answers Identify any cultural, economic, or political factors that are relevant to this case Before lecture: Read the case Create multidisciplinary international teams (3 people) Review the case (5 minutes) Discuss the case in your own team (10 minutes) Write team‘s conclusions Explain your conclusions to other teams (3 minutes by team) Free discussion (10 minutes) DIRECTIONS
  86. 86. ISTestingInstallation,andIntegration 86 Step 4 – IS Testing IS Testing is any activity aimed at evaluating an attribute or capability of a IS and determining that it meets its required results IS Testing Information Processes SoftwareHardware Telecommu nications Functionality (Exterior Quality) Engineering (Interior Quality) Adaptability (Future Quality) Correctness Efficiency Flexibility Reliability Testability Reusability Usability Documentation Maintainability Integrity Structure
  87. 87. ISTestingInstallation,andIntegration 87 Step 4 – Testing process Organise Testing Project Design/Build Test Processes Execute System Test Execute Acceptance Test Sign off and Pilot Design System Test Build Test Environment IEEE standards • 829-1983 IEEE Standard for Software Test Documentation • 1008-1987 IEEE Standard for Software Unit Testing • 1012-1986 IEEE Standard for Software Verification & Validation Plans • 1059-1993 IEEE Guide for Software Verification & Validation Plans
  88. 88. 88 Step 4 - InstallationINSTALLATION PLAN 1 introduction 1.1 Purpose of this document 1.2 Objectives 1.3 Identification 1.4 References 1.5 Relationship to other plans 1.6 Key Stakeholders 1.7 Points of Contact 2 Installation Plan 2.1 Overview 2.2 Scope 2.3 Environment 2.4 Tasks 2.5 Security 2.6 Site Specific Information 2.7 Site Name [x] 2.7.1 Schedule 2.7.2 Software Inventory 2.7.3 Hardware Inventory 2.7.4 Network Inventory 2.8 Installation Procedures 2.9 Entry and Exit Criteria 2.10 Backup Procedure 2.11 Change Control Procedure. 2.12 Installation Test Procedure 2.13 Constraints 2.14 Issues 2.15 Assumptions 2.16 Dependencies. 2.17 Resource Requirements 3 Training 4 Project Management 4.1 Roles and Responsibilities 5 Appendices 5.1 Glossary of Terms 5.2 Acronyms and Abbreviations ISTestingInstallation,andIntegration
  89. 89. 89 Step 4 - Securing Senior Management Commitment & Support Security Policies & Training Security Procedures & Enforcement Security Tools: Hardware & Software 1st Layer: Perimeter Security (Network Layer Security) • Virus scanning • Firewalls • Virtual private networking • Operating system protection 2nd Layer: Authentication (Proof of Identity) • User name/password • Password synchronisation • Biometrics • Single sign-on 3rd Layer: Authorisation (Permissions Based on Identity) • User/group permissions • Enterprise directories • Enterprise user administration • Rules-based access control ISTestingInstallation,andIntegration
  90. 90. 90 Step 4 - Enterprise Application Integration (EAI) During the next 10 years, enterprises will face unprecedented levels of both business and technology change. Accordingly, IS organisations' primary value discipline must be agility EAI is a Technical foundation to support flexible information exchange by providing enterprise wide application connectivity on any system on any platform The mission of EAI is to control a heterogeneous computing environment in such a way it behaves as one system ENTERPRISE APPLICATION INTEGRATION ISTestingInstallation,andIntegration
  91. 91. ISTestingInstallation,andIntegration 91 Step 4 - EAI purposes Data (information) integration • Ensuring that information in multiple systems is kept consistent Process integration • Linking business processes across applications Vendor independence • Extracting business policies or rules from applications and implementing them in the EAI system, so that even if one of the business applications is replaced with a different vendor's application, the business rules do not have to be re-implemented Common façade • An EAI system could front-end a cluster of applications, providing a single consistent access interface to these applications and shielding users from having to learn to interact with different applications
  92. 92. ISTestingInstallation,andIntegration 92 Step 4 - Traditional view versus EAI view EAI View Focus on business processes Traditional View Focus on functional areas Sales R&D Purchasing Production Distribution Company Customer order Delivery to customer Sales F&E Purchasing Production Distribution Company
  93. 93. Step 4 - EAI helps to reduce complexity EAI Reduction of Complexity From n×n to n 93 ISTestingInstallation,andIntegration
  94. 94. ISTestingInstallation,andIntegration Step 4 - Multi-tiered EAI architecture 94 Successful implementation of consistent, scalable, reliable, incremental, cost-effective EAI solutions depends on the standards and methodologies that we define for these levels • Within an application • Between applications within an enterprise • Between enterprises • Directly with customers It must be determined how we need to share information
  95. 95. ISTestingInstallation,andIntegration 95 Step 4 - EAI implementation pitfalls • The very nature of EAI is dynamic and requires dynamic project managers to manage their implementation Constant change • EAI requires knowledge of many issues and technical aspects Lack of EAI experts • Within the EAI field, the paradox is that EAI standards themselves are not universal Competing standards • EAI is not a tool, but rather a system and should be implemented as such EAI is a tool paradigm • Engineering the solution is not sufficient. Solutions need to be negotiated with user departments to reach a common consensus on the final outcome. A lack of consensus on interface designs leads to excessive effort to map between various systems data requirements Building interfaces is an art • Information that seemed unimportant at an earlier stage may become crucial laterLoss of detail • Since so many departments have many conflicting requirements, there should be clear accountability for the system's final structure Accountability In 2003 it was reported that 70% of all EAI projects fail Most of these failures are not due to the software itself or technical difficulties, but due to management issues
  96. 96. 96 Step 4 - EAI implementation pitfalls Other potential problems may arise in these areas Emerging Requirements EAI implementations should be extensible and modular to allow for future changes. Protectionism The applications whose data is being integrated often belong to different departments which have technical, cultural, and political reasons for not wanting to share their data with other departments Advantages of EAI implementation • Real time information access among systems • Streamlines business processes and helps raise organisational efficiency • Maintains information integrity across multiple systems Disadvantages of EAI implementation • Prohibitively high development costs, especially for small and mid-sised businesses • EAI implementations are very time consuming, and need a lot of resources • Require a fair amount of up front design, which many managers are not able to envision or not willing to invest in. Most EAI projects usually start off as point-to-point efforts, very soon becoming unmanageable as the number of applications increase ISTestingInstallation,andIntegration
  97. 97. 97 Video case - PeopleSoft's Enterprise Performance Management (EPM) System How does PeopleSoft incorporate the concept of immediacy into its Enterprise Performance Management (EPM) system? Name the systems integrated into its EPM system? Concerning the integration of the EPM system, what can you say about EAI architecture and Internet architecture? For the EPM system, guess two types of testing and securing process performed before run EPM broadly? What kind of role does PeopleSoft assign to analytics in its EPM system? What kind of businesses are likely to benefit from using PeopleSoft EPM? Before lecture: Watch the video Create multidisciplinary international teams (3 people) Review the video (10 minutes) Discuss the video in your own team (10 minutes) Explain your conclusions to other teams (3 minutes by team) Free discussion (10 minutes) DIRECTIONS
  98. 98. 98 Step 5 – Operation versus Innovation Operating versus Innovating Operating Innovating Creating today's revenue Creating tomorrow's revenue Steps are pre-defined Steps are undefined Steps are mostly linear Steps are mostly non-linear Single route and result Multiple routes and results Driven by functional teams Driven by cross-functional teams Reworking is waste Reworking is part of learning Clear, shared goals Unclear, often conflicting goals Clear front end Fuzzy front end Easy to measure Tough to measure Rich historical data Poor historical data Forecasting possible Forecasting almost impossible Short cycle time Long cycle time Many common causes Many special causes Traditional players & roles New players & roles Doing things right Doing right things ISOperations,Maintenance,andUpdating
  99. 99. 99 Step 5 – Operations management planning criteria Control • By creating and maintaining a positive flow of work by utilising what resources and facilities are available Lead • By developing and cascading the organisations strategy/mission statement to all staff Organise • Resources such as facilities and employees so as to ensure effective production of goods and services Plan • By prioritising customer, employee and organisational requirements Maintaining • And monitoring staffing, levels, Knowledge-Skill-Attitude (KSA), expectations and motivation to fulfil organisational requirements ISOperations,Maintenance,andUpdating
  100. 100. 100 Step 5 – Disaster recovering Disaster Recovery It is the process, policies and procedures of restoring operations critical to the resumption of business, including regaining access to data (records, hardware, software, etc.), communications (incoming, outgoing, toll-free, fax, etc.), workspace, and other business processes after a natural or human-induced disaster ISOperations,Maintenance,andUpdating
  101. 101. 101 Step 5 – The disaster cycle Preparedness Disaster Event ReliefRestoration Rebuilding Risk Reduction ISOperations,Maintenance,andUpdating
  102. 102. 102 Step 5 – Disaster recovering strategies and precautions • Backups made to tape and sent off-site at regular intervals (preferably daily) • Backups made to disk on-site and automatically copied to off-site disk, or made directly to off-site disk • Replication of data to an off-site location, which overcomes the need to restore the data (only the systems then need to be restored). This generally makes use of Storage Area Network (SAN) technology • High availability systems which keep both the data and system replicated off- site, enabling continuous access to systems and data Disaster Recovery Strategies for Data Protection • Local mirrors of systems and/or data and use of disk protection technology such as RAID • Surge Protectors — to minimise the effect of power surges on delicate electronic equipment • Uninterruptible Power Supply (UPS) and/or Backup Generator to keep systems going in the event of a power failure • Fire Preventions — more alarms, accessible fire extinguishers • Anti-virus software and other security measures Precautionary Measures to Prevent a Disaster Situation ISOperations,Maintenance,andUpdating
  103. 103. 103 Step 5 – Business Continuity Planning Business Continuity Planning (BCP) It is an interdisciplinary peer mentoring methodology used to create and validate a practiced logistical plan for how an organisation will recover and restore partially or completely interrupted critical function(s) within a predetermined time after a disaster or extended disruption Business Continuity Planning Life Cycle 1. Initiate BCP project 2. Identify business threat 3. Conduct risk analysis 4. Establish BCP (establish recovery team) 5. Design BCP (design recovery plan) 6. Define BC process (define recovery process) 7. Test BCP (test recovery plan) 8. Review BCP (review recovery plan) ISOperations,Maintenance,andUpdating Creating a Business Continuity Plan (alternative link:
  104. 104. ISOperations,Maintenance,andUpdating 104 Step 5 –Business continuity & recovery Total Continuity Program Management • Overall project management • Risk management • Crisis management • Industry benchmark Business Continuity Program Design • Understanding business and IS requirements • Evaluate current capabilities • Develop continuity plan IS Recovery Program Design • Assess IS capabilities • Develop recovery procedures • Design solutions IS Recovery Program Execution • Recovery tasks • Testing • Other functional exercise plan & procedure
  105. 105. 105 Step 5 – Replacement Plan IS and IT Inventory • Executive Support IS and IT • Decision-Support Systems IS and IT • Management Information Systems IS and IT • Knowledge Work Systems IS and IT • Office Automation Systems IS and IT • Transaction Processing Systems IS and IT Replacement Plans • Executive Support IS and IT Replacement Plan • Decision-Support Systems IS and IT Replacement Plan • Management Information Systems IS and IT Replacement Plan • Knowledge Work Systems IS and IT Replacement Plan • Office Automation Systems IS and IT Replacement Plan • Transaction Processing Systems IS and IT Replacement Plan Budget needs to Funds Replacement Plan • Executive Support IS and IT • Decision-Support Systems IS and IT • Management Information Systems IS and IT • Knowledge Work Systems IS and IT • Office Automation Systems IS and IT • Transaction Processing Systems IS and IT ISOperations,Maintenance,andUpdating
  106. 106. 106
  107. 107. General enterprise IS architecture Source: Laudon & Laudon, Chapter 2 Knowledge Management Systems Customer Relationship Management Systems Enterprise Systems Processes Processes Processes Customers & Distributors Customers & Distributors Enterprise IS automate processes that span multiple business functions and organisational levels and may extend outside the organisationSales and Marketing Manufacturing & Production Finance and Accounting Human Resources Supply Chain Management Systems 107 ISArchitecture
  108. 108. Specific enterprise IS architecture Suppliers, Distributors, Resellers Customers, Resellers Supply Chain Management (Sourcing, Procuring) Supply Chain Management (Delivering) Logistics Production Distribution Marketing Sales Customer Service Enterprise Resource Planning IS Customer Relationship Management IS Decision Support IS Enterprise Application Integration KnowledgeManagementIS,CollaborationIS, DecisionSupportIS,AdministrativeControl IS,HumanResources/ProcurementIS, Employees Financial(Accounting/AuditingIS,Partner RelationshipManagementIS,(Selling, Distribution),ManagementControlIS Partners, Stakeholders 108 ISArchitecture
  109. 109. Components of a simple network Network consists of two or more connected computers Router (bridge) is a special communications processor used to route packets of data through different networks, ensuring that the message sent gets to the correct address Network interface device (NIC) is the connection point between one computer and the network Network operating system (NOS) routes and manages communications on the network and coordinates network resources (saving or retrieving files on your hard drive versus a network drive) Hub connects network components, sending a packet of data to all other connected devices Switch has more intelligence than a hub and can forward data to a specified device or destination. The switch is used within a given network to move information Number of possible connections on a network composed of N computers is N×(N-1) If there are 10 computers on a network, there are 10×9 = 90 possible connections Source: Laudon & Laudon, Chapter 7 109 internetworking
  110. 110. Client/Server computing Client/server software splits the processing of applications between the client and server to take advantage of strengths of each machine E-mail and browsers are examples 110 internetworking
  111. 111. Network topologies (architectures) Network Topology is the specific physical, logical, or virtual, arrangement of the network components and devices (nodes) Network topology is determined only by the configuration of connections between nodes 111 internetworking
  112. 112. internetworking PAN, LAN, and CAN networks Personal Area Network (PAN) • Area covered: 4-6 metres • Features: PAN is used for communication among computer devices close to one person (e.g., printers, fax machines, telephones, PDAs or scanners) Local Area Network (LAN) • Area covered: Up to 500 meters (half a mile); an office or floor of a building • Features: LAN connects personal computers in a small office, all the computers in one building, or all the computers in several buildings in close proximity. Common topologies are: star, ring, bus, and tree Campus Area Network (CAN) • Area covered: Up to 1,000 metres; a college campus or corporate facility • Features: A number of LANs interconnected within multiple buildings or a geographic area (school campus or military base) 112
  113. 113. internetworking MAN and WAN networks Metropolitan Area Network (MAN) • Area covered: A city or metropolitan area • Features: MAN is categorised between a LAN and a WAN Wide Area Network (WAN) • Area covered: Transcontinental or global area • Features: WAN connects LANs to each other and offers the means to provide services and resources in multiple locations – Internet is a WAN 113
  114. 114. Communication protocols: TCP/IP TCP/IP is the worldwide standard protocol TCP part Handles the movement of data between computers Establishes a connection between the computers, sequences the transfer of packets, and acknowledges the packets sent IP part Responsible for the delivery of packets Includes the disassembling and reassembling of packets during transmission A protocol is a set of rules and procedures governing transmission of information between two points of a network 114 internetworking
  115. 115. Internetworks Internetwork Any interconnection among or between public, private, commercial, industrial, or governmental networks In practice, a network using the IP protocol 3 variants of internetworks “The” Internet IntranetExtranet 115 internetworking
  116. 116. • Person to person messaging • Document sharing E-mail • Discussion groups on electronic bulletin boards Usenet newsgroups • Interactive conversations Chatting and instant messages • Logging on to one computer system and doing work to another Telnet • Transferring files from computer to computer File Transfer Protocol (FTP) • Retrieving, formatting, and displaying information (including text, audio, graphics, and video) using hypertext links World Wide Web (WWW) Major Internet services 116 internetworking
  117. 117. How Google works 4500 PCs linked together and connected to the Internet A PageRank software measures the “importance“ or popularity of each page by solving an equation with more than 500 million variables and 2 billion terms. These are likely the “best” pages for the query Results delivered to user, 10 to a page Small text summaries are prepared for each Web page 117 internetworking
  118. 118. Internet governance No one ―owns‖ Internet Worldwide Internet policies are established by the following organisations Abbreviation Key: • BCBS - Basel Committee on Banking Supervision • CERN - European Organisation for Nuclear Research • COE - Council of Europe et al. • FATF - Financial Action Task Force • GEO - Group on Earth Observations • ICANN - Internet Corporation for Assigned Names and Numbers • ICAO - International Civil Aviation Organisation • IETF - Internet Engineering Task Force • IMF - International Monetary Fund • ITU - International Telecommunication Union • OECD - Organisation for Economic Cooperation and Development • UNCITRAL - United Nations Commission on International Trade Law • UNESCO - United Nations Educational, Scientific and Cultural Organisation • W3C - World Wide Web Consortium • WIPO - World Intellectual Property Organisation • WTO - World Trade Organisation118 internetworking
  119. 119. Unique features of Internet Technology Feature Business Significance Ubiquity – Internet/Web technology is available everywhere: at work, at home, and elsewhere by using mobile devices, anytime • The market place is extended beyond traditional boundaries and is removed from a temporal and geographic location • Shopping can take place anywhere in a marketplace • Customer convenience is enhanced, shopping cost reduced Global reach – The technology reaches across national boundaries, around the earth • Commerce is enabled across cultural and national boundaries seamlessly and without modification • The marketplace includes potentially billions of consumers and millions of business worldwide Universal standards – There is one set of technology standards, namely Internet standards Ones set of technical media standards exists across the globe Richness – It is possible to transmit video, audio, and text messages Video, audio, and text marketing messages can be integrated into a single marketing message and consumer experience Interactivity – The technology woks through interactions with the user Business can engage consumers in a dialogue that dynamically adjust the experience for each individual consumer and makes the consumers a co-participants in process of delivering goods to market Information density – The technology reduces information costs and raises quality Information processing, information storage, and communication cost drop dramatically, while currency, accuracy, and timeliness improve greatly, information becomes plentiful, cheap, and accurate Personalisation / Customisation – The technology enables personalised messages to be delivered to individuals as well as groups Business can personalise marketing messages and customise products and services based on individual consumer characteristics and preferences Source: Laudon & Laudon, Chapter 7 119 internetworking
  120. 120. Intranets in organisations • It is a computer network that uses the same technology and protocols as the Internet but is restricted to certain users Intranet • Boots may have an Intranet in their main offices that is only available to employees of Boots Example • Integrate cross-platforms • Break down the communication barriers • Reduce information distribution cost • Immediate information delivery • Increase internal communication • Allow minimal learning curve • Get the customers involved • Use of Open standards • Allow Scalability Benefits of Intranets 120 internetworking
  121. 121. internetworking Use of Intranets F I R E W A L L Internet Extranet Customers, Suppliers, and Partners Everyone Intranet Enterprise Information Portal Employees Communication and Collaboration Communicate and collaborate with e-mail, discussion forums, chat and conferencing Business Operations and Management Secure, universal access to view and use corporate and external data Web Publishing Author, publish, and share hypermedia documents Intranet Portal Management Centrally administer clients, servers, security, directory, and traffic Existing e-mail, Voice- mail Systems Existing Databases and Enterprise Applications HTML, MS Office, XML, Java, and Other Document Types Existing Hardware and Networks Source: O‘Brien & Marakas Chapter 6 121
  122. 122. internetworking • It is a private network that uses Internet protocols, network connectivity, and possibly the public telecommunication system to securely share part of an organisation's information or operations with suppliers, vendors, partners, customers or other businesses Extranet • Fewer phone and fax enquiries • Less mismatching of orders and invoices • Accurate information on supplier ability • Reduced risk of supply and delays • Improved order fill rates • Reduced inventory levels • Reduced downtime and overtime • Lowered procurement/inventory costs • Improved asset utilisation Benefits to Buyers • Faster order-to-cash cycle • Fewer phone and fax enquiries • Insight into own performance • Better capacity utilisation • Increased inventory turns • Increased order fill rates • Increased revenue • Lowered costs • Improved asset utilisation Benefits to Suppliers Extranets in organisations 122
  123. 123. How an organisation uses the Internet, Intranets, and Extranets Source: Turban, et. al. Chapter 1 123 internetworking
  124. 124. 124 Discussion: Network Security Cisco - Security Training Video (alternative link: ATT's Anti Social Engineering Training Video (alternative link: internetworking
  125. 125. Corporate internetworking infrastructure 125 internetworking
  126. 126. internetworking Internetworking: management opportunities and challenges • Organisations have opportunities to radically reduce the cost of communicating with their employees, vendors, and customers • There are many new opportunities to develop new business models based on the new telecommunications technologies Management opportunities • Loss of management control • Distributed resources are harder to control • Employees have independent sources of computing power • Use of technology for non-business purposes • Organisational changes must take place as firms embrace new technologies • Polices for handling data • Reliability and security Management challenges 126
  127. 127. Enterprise IS – Traditional view 127 EnterpriseIS:ERP,CRM,andSCM Enterprise Resource Planning (ERP) System Integrate all departments and functions across a company onto a single computer system that can serve all those different departments‘ particular needs AFTERERP
  128. 128. ERP high level implementation framework Gap Resolution 1. Re-engineer process to agree with ERP 2. Use a Bolt-on (3rd party product) 3. Develop enhancement or extension 4. Interface to legacy or mandated system 5. Process not performed within ERP (current process remains) Evaluate against ERP functionality Define Business Processes / Assess Requirements Testing Process or step not supported with/in ERP Process supported with / in ERP Blueprint or Requirements Realisation or Construction Phase Final Prep If 1, 2, 3 or 4 Tailor ERP, and / or interface as required, to support new processes If 5 Interviews, workshops, prototypes, & demos with Process Owners and Stakeholders Go-Live Deployment Iterate through multiple rollouts, if necessary Continuous Change Management Activities 128 EnterpriseIS:ERP,CRM,andSCM
  129. 129. Cost of implementing an ERP 129 Reengineering 43% Hardware 12% Software 15% Training and Change Management 15% Data Conversions 15% ERP Costs SAP 29% Oracle Applications 10%The Sage Group 7% Microsoft Dynamics 4% SSA Global Technologies 3% Others 47% ERP Market Share EnterpriseIS:ERP,CRM,andSCM
  130. 130. E-mail Web Telephone Fax Prospect or Customer Marketing and Fulfilment Customer Service and Support Retention and Loyalty Programs Contact and Account Management Sales • Cross-sell • Up-sell Customer Relationship Management-IS (CRM-IS) 130 EnterpriseIS:ERP,CRM,andSCM
  131. 131. Supporting the 3 phases of CRM with IS Acquire Enhance Retain Direct Marketing Cross-sell and Up-sell Proactive Service Sales Force Automation Customer Support Shared Customer Data Collaborative Service Partner Organisation Customer The Internet CRM Phases (Customer Life Cycle) CRM Functional Solutions CRM-IS Integrated Solution 131 EnterpriseIS:ERP,CRM,andSCM
  132. 132. 132 CRM-IS business integrated solution EnterpriseIS:ERP,CRM,andSCM
  133. 133. EnterpriseIS:ERP,CRM,andSCM CRM-IS Integrated Solution Ad Hoc Query Report On Line Analytical Processing (OLAP) Data Mining Campaign Mgmt Churn Analysis Propensity Scoring Customer Profitability Analysis Web Call Centre Store Automated Teller Machine (ATM) E-mail Direct Mail Telemarketing Mobile devices 133 Data Warehouse Operational Store DATA CAPTURE EXECUTE PLAN ANALISE INTERACT Extract, Transform, Load Processes Implement Plans Analytical Tools Inbound Touchpoints Analytical Applications Outbound Touchpoints Analytical CRM Operational CRM Capture, store extract, process, interpret, and report customer data to a user, who then analyses them as needed Customer services, order management, invoice/billing, and sales/marketing automation and management MARKETING AUTOMATION SALES AUTOMATION SERVICES AUTOMATION Collaborative CRM Communication, coordination, and collaboration between vendors and customers
  134. 134. Causes of failure of CRM IS 134 Organisational Change 29% Company Politics / Inertia 22% Lack of CRM Understanding 20% Poor Planning 12% Lack of CRM Skills 6% Budget Problems 4% Software Problems 2% Bad Advise 1% Other 4% CRM Failure EnterpriseIS:ERP,CRM,andSCM
  135. 135. EnterpriseIS:ERP,CRM,andSCM The Supply Chain An organisation‘s Supply Chain is a network of organisations and business processes for procuring raw materials, transforming into products, and distributing them to customers Parts of a Supply Chain Upstream It includes the organisation's suppliers and their suppliers and the process for managing relationships with them Internal Supply Chain It includes process for transforming the materials, components, and services furnished by suppliers into finished goods and for managing materials and inventory Downstream It consists of the organisations and process for distributing and delivering products to the final customers 135
  136. 136. EnterpriseIS:ERP,CRM,andSCM The Bullwhip effect in SC • Inaccurate information can cause minor fluctuations in demand for a product to be amplified as one moves further back in the Supply Chain • Minor fluctuations in retail sales for a product can create excess inventory for distributors, manufacturers, and suppliers Source: Laudon & Laudon, Chapter 9 136
  137. 137. Supply Chain Management (SCM) SCM attempts to coordinate the business processes to speed information, product, and fund flows up and down a supply chain to reduce time, redundant effort, and inventory costs SCM Main Processes Source: Laudon & Laudon, Chapter 9 137 EnterpriseIS:ERP,CRM,andSCM
  138. 138. SCM-IS The primary goal of all SCM-IS systems is to automate flow of information between company and supply chain partners 2 types of SCM-IS Supply Chain Planning IS Generate demand forecasts for a product (demand planning) Help develop sourcing and manufacturing plans for that product Order Planning Advanced Scheduling Demand Planning Distribution Planning Transportation Planning Supply Chain Execution IS Track the physical status of goods, the management of materials, warehouse and transportation operations, and financial information involving all parties Order Commitments Final Production Replenishment Distribution Management Reverse Distribution Source: Laudon & Laudon, Chapter 9 138 EnterpriseIS:ERP,CRM,andSCM
  139. 139. Advantages of SCM-IS Business Value of SCM business Improved customer service and responsiveness (product availability) Cost reduction (SCM costs represent 75% of operating expenses for many firms; reducing SC costs can have major impact) Cash utilisation (improved cash flows) Effective and efficient SCM-IS can enable an organisation to Decrease the power of its buyers Increase its own supplier power Increase switching costs to reduce the threat of substitute products or services Create entry barriers thereby reducing the threat of new entrants Increase efficiencies while seeking a competitive advantage through cost leadership Internet-based advantages Provide standard set of tools Facilitate global supply chains Reduce costs Enable efficient customer response Allow concurrent supply chains Source: Laudon & Laudon, Chapter 9 139 EnterpriseIS:ERP,CRM,andSCM
  140. 140. EnterpriseIS:ERP,CRM,andSCM 140 The ideal organisation
  141. 141. 141 Multimedia case – Manugistics: Enterprise Profit Optimisation Important Notice You need Internet connection and a Web browser. If your web browser does not have the Flash plug-in installed, you will need the Macromedia Flash Player to view What business goals can Manugistics help a company meet? How does Manugistics promise to achieve these goals? Explain Manugistics's view of supplier relationship management and supply chain management Describe Manugistics's view of pricing and revenue optimisation Summarise the EPO method
  142. 142. 142 IS management challenges Challenges Growth of international IS Organising international IS Managing global systems Technology issues & opportunities Business Driver It is an environmental force to which businesses must respond and that influence a business‘s direction ManagingInternationalIS
  143. 143. International IS Architecture 143 International IS Architecture It consists of basic IS required by organisations to coordinate worldwide trade and other tasks Technological Platform Corporate Global Strategies Organisational Structure Management & Business Procedures Global Environment: Business Drivers & Challenges ManagingInternationalIS
  144. 144. Types of global strategies & business organisation Domestic Exporter • Centralisation in home country Multinational • Central home base • Decentralised production, sales, marketing in other countries Franchiser • Product created, initially produced in home country • Relies heavily on local workers to produce, market in other countries Transnational • Truly Global Firm • No national headquarters • Value-added activities managed from global perspective • Optimises supply & demand, taking advantage of local competitive strengths 144 ManagingInternationalIS
  145. 145. Types of global IS • Each unit has unique system • Integrated & coordinated at all locations • Copies of home system used in foreign locations • Domestic Home Base Centralised Duplicated DecentralisedNetworked 145 ManagingInternationalIS
  146. 146. Global business strategy & structure Function Strategy Domestic Exporter Multinational Franchiser Transnational Production Centralised Dispersed Coordinated Coordinated Finance / Accounting Centralised Centralised Centralised Coordinated Sales / Marketing Mixed Dispersed Coordinated Coordinated Human Resources Centralised Centralised Coordinated Coordinated Strategic Management Centralised Centralised Centralised Coordinated ManagingInternationalIS
  147. 147. 147 Global IS configurations System Configuration Strategy Domestic Exporter Multinational Franchiser Transnational Centralised Dominant Pattern Duplicated Dominant Pattern Decentralised Emerging Pattern Dominant Pattern Emerging Pattern Networked Emerging Pattern Dominant Pattern ManagingInternationalIS
  148. 148. Reorganise the business & develop global IS Reorganise the business Organise value-adding activities for comparative advantage Develop & operate IS at each level • National • Regional • International Establish single world headquarters • Have global CIO 148 Developing Global IS Agree on common user requirements Induce procedural business changes Coordinate applications development Coordinate software releases Encourage local users to accept ownership ManagingInternationalIS
  149. 149. Strategy: divide, conquer, pacify Define core business processes Identify core systems to coordinate centrally Choose an approach •Incremental •Grand design •Evolutionary Make benefits clear 149 GLObal loCAL GLOCAL CIO need to think globally and act locally ManagingInternationalIS
  150. 150. 150 Video case: Fedex IWAY Testimonial What role does WebFocus play in FedEx's operations? What goals does WebFocus help FedEx meet? Explain the analogy that Joe Namie uses to compare FedEx's information technology with the technology upon which the company's pilots rely Describe the scope of the reporting information that is available to FedEx as a result of WebFocus What type of global strategy is behing WebFocus? What type of global strategy and structure is behing WebFocus?
  151. 151. Conclusion: The strategic role of IS IS can change goals, operations, products, services, and environment to gain competitive advantage Cost Competitiveness Physical & Communications Infrastructure Innovation & Entrepreneurship Management Capability Sustainable Organisation Essential Conditions Competitive Advantages 151