Enterprise Infrastructure and Integration

1. McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies,
All Rights Reserved
Chapter 7
Enterprise Infrastructure and
Integration

2. 7-2
STUDENT LEARNING OUTCOMES
1. Define an enterprise system.
2. Describe an enterprise resource planning
(ERP) system.
3. List and describe the seven “ilities.”

3. 7-3
STUDENT LEARNING OUTCOMES
4. List the key traits that an IT infrastructure
should exhibit.
5. Describe the differences among the four types
of IT infrastructures.
6. Explain the difference between backup and
recovery.

4. 7-4
STUDENT LEARNING OUTCOMES
7. State the purpose of a disaster recovery plan.
8. Explain the need for system integration.

5. 7-5
One View for Del Monte Foods
• Del Monte needed to overhaul its IT
infrastructure
– Migrate from multiple platforms
– Consolidate applications to a central single system

6. 7-6
One View for Del Monte Foods
• Develop an ERP system
– Merge multiple systems
– Quick and cost effective

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

8. 7-8
INTRODUCTION
• Successful IT systems provide an integrated
view of:
1. Business
2. Extend analytical capabilities to users
3. Leverage a corporation's information and expertise

9. 7-9
INTRODUCTION
• Enterprises need to encompass a range of
intelligence systems and analytical
applications that include:
– Data warehouses and data marts
– Online analytical processing (OLAP)
– Decision support systems (DSSs)
– Executive information systems (EISs)

10. 7-10
ENTERPRISE SYSTEMS
• An enterprise system (ES) - large software
application that companies use to manage their
operations
• Key way by which large organizations
distribute content of all kinds to their:
– Workforce
– Suppliers
– Customers

11. 7-11
ENTERPRISE SYSTEMS

12. 7-12
ENTERPRISE SYSTEMS
• Enterprise systems are suited for information
transactions
– They are the underlying information “factory”
• Enterprise systems offer the first great
opportunity to achieve true connectivity
– A state in which everyone knows what everyone
else is doing in the business all over the world at
the same time

13. 7-13
ERP Systems
• Enterprise resource planning (ERP) systems
are software systems for business
management, supporting areas such as
planning, manufacturing, sales, marketing,
distribution, accounting, financial, human
resource management, project management,
inventory management, service and
maintenance, transportation, and e-business

14. 7-14
ERP Systems
• ERP systems allow companies to implement a
single integrated system by replacing legacy
information systems.
• Legacy information system (LIS) - represents
a massive, long-term business investment;
such systems are often brittle, slow, and
nonextensible

15. 7-15
ERP Systems

16. 7-16
ERP Systems
• An ERP system is required to have the
following characteristics:
– Modular design comprising many distinct business
functions such as financial, manufacturing,
distribution, and the like
– Centralized DBMS
– Integrated functions that provide seamless
information flow among the functions
– Flexible, best business practices
– Functions that work in real-time
– Internet-enabled

17. 7-17
Core ERP Functions
• Accounting
• Financial
• Manufacturing
• Production
• Transportation
• Sales and distribution
• Human resource
• Supply chain
• Customer relationship
• E-business

18. 7-18
ERP Systems

19. 7-19
ERP Systems
• ERP systems are big business
• At the top of the IT spending list is the ERP
market
• The United States federal government will
spend $7.7 billion on ERP products and
services in fiscal year 2009
– Up 37 percent from 2004 spending of $5.6 billion

20. 7-20
ERP Systems
• Advantages…
– Reliable information access
– Avoid redundant data and operations
– Cost reduction
– See more on page 230
• Disadvantages
– Time-consuming
– Expensive
– Vendor dependence
– See more on page 230

21. 7-21
Evolution of ERP Systems
• The early stage of ERP was carried out in the
1970’s through a system called Materials
Requirement Planning (MRP)
• Early 1980s MRP was reengineered under the
name of Manufacturing Resources Planning or
MRPII

22. 7-22
Evolution of ERP Systems
• The beginning of the 1990’s came enterprise
resource planning (ERP)
• ERP systems have evolved into what is now
commonly referred to as ERPII

23. 7-23
Evolution of ERP Systems

24. 7-24
ERP Vendors & Market Trends
• The top dominating ERP software suppliers
are:
– SAP
– Oracle/PeopleSoft
– SSA Global
– Microsoft
• Together they control more than 70 % of the
multibillion dollar global market

25. 7-25
ERP Vendors & Market Trends
• Complete list is very long
• Invensys (www.invensys.com)
• Epicor (www.epicor.com)
• Mapics (www.mapics.com)
• Navison (www.navison.com)
• Deltek (www.deltek.com)
• Many more on page 233

26. 7-26
ERP Vendors & Market Trends
• The ERP market has been growing at a rate
more than 30 %
• The growth of the ERP market has been
boosted both by business reasons as well as by
technical reasons
– The main cited reason is globalization

27. 7-27
DEVELOPING AGILE IT SYSTEMS
• Business agility means being prepared for
change at a moment’s notice
• Factors to consider whenever you are
developing an IT system - these are commonly
referred to as the “ilities”:
– Availability
– Accessibility
– Reliability
– Scalability
– Flexibility
– Performance
– Capacity planning

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

29. 7-29
Accessibility
• Accessibility is determining who has the right
to access different types of IT systems and
information
• Accessibility also means who can access or
manipulate the information, whether they can
create, read, update, and/or delete information

30. 7-30
Reliability
• Reliability ensures your IT systems are
functioning correctly and providing accurate
information
• Inaccurate information exists for many
reasons:
– The information being entered incorrectly
– The information becoming corrupt

31. 7-31
Scalability
• Scalability refers to how well a system can
adapt to increased demands
• A number of factors can affect organizational
growth including:
– The market
– The industry
– The economy

32. 7-32
Flexibility
• A single system can be designed in a number
of different ways to perform exactly the same
function
• When choosing which design to implement,
think about the system’s “flexibility,” or the
system’s ability to change quickly

33. 7-33
Performance
• Performance measures how quickly an IT
system performs a certain process
• Benchmarks are baseline values a system
seeks to attain
• Benchmarking is a process of continuously
measuring system results, comparing those
results to optimal system performance
(benchmark values), and identifying steps and
procedures to improve system performance

34. 7-34
Capacity Planning
• Capacity planning determines the future IT
infrastructure requirements for new equipment
and additional network capacity
• It’s cheaper for an organization to implement
an IT infrastructure that considers capacity
growth at the beginning of a system
deployment

35. 7-35
INFORMATION SYSTEMS
INFRASTRUCTURE
• An IT architecture is the blueprint for
translating a business strategy into a plan
• An infrastructure is a relative term meaning
“the structure beneath a structure”
– This definition implies different layers of structure,
which provide support or services

36. 7-36
INFORMATION SYSTEMS
INFRASTRUCTURE

37. 7-37
Why Architecture Matters
• The IT architecture identifies what information
must be standardized corporate-wide and what
will be standardized at a regional level
• An IT architecture specifies where and how
information will be located and accessed

38. 7-38
Why Infrastructure Matters
• Global markets are creating enormous
demands for increased information sharing
• A powerful, flexible IT infrastructure has
become a prerequisite for doing business

39. 7-39
Why Infrastructure Matters
• IT infrastructure should exhibit several key
traits, such as:
– Efficiency
– Effectiveness
– Agility

40. 7-40
Why Infrastructure Matters
• Translating the architecture into an
infrastructure entails creating details about
certain technologies:
– Hardware
– Software
– Network
– Information

41. 7-41
INFORMATION TECHNOLOGY
INFRASTRUCTURE
• There are four types of information
technology infrastructures:
1. Decentralized infrastructure
2. Centralized infrastructure
3. Distributed infrastructure
4. Client/server infrastructure

42. 7-42
INFORMATION TECHNOLOGY
INFRASTRUCTURE

43. 7-43
Decentralized Infrastructure
• A decentralized infrastructure involves little
or no sharing of information systems
• Gives users the liberty to develop applications
that meet their needs and maintain control over
the applications they develop

44. 7-44
Decentralized Infrastructure

45. 7-45
Centralized Infrastructure
• A centralized infrastructure involves sharing
of information systems in one central area or
one central mainframe
• Mainframes were originally the only
computers available for business

46. 7-46
Centralized Infrastructure

47. 7-47
Distributed Infrastructure
• A distributed infrastructure involves
distributing the information and processing
power of IT systems via a network
• By connecting all the information systems via
a distributed infrastructure, all locations can
share information and applications

48. 7-48
Distributed Infrastructure

49. 7-49
Client/Server Infrastructure
• A client/server infrastructure (or client/server
network) has one or more computers that are
servers which provide services to other
computers, called clients
• The client/server infrastructure is a form of
distributed infrastructure

50. 7-50
Client/Server Infrastructure

51. 7-51
Other Types of Infrastructure
• In a tiered infrastructure (sometimes referred
to as a layer infrastructure), the IT system is
partitioned into tiers (or layers) where each tier
(or layer) performs a specific type of
functionality

52. 7-52
Other Types of Infrastructure
• A 1-tier infrastructure is the most basic setup
because it involves a single tier on a single
machine
• A 2-tier infrastructure is the basic client/server
relationship

53. 7-53
Other Types of Infrastructure
• A 3-tier infrastructure is the most common
approach used for Web applications today
• An n-tier infrastructure balances the work of
the network over several different servers

54. 7-54
Other Types of Infrastructure

55. 7-55
The Infrastructure Investment
• IT investments are one of the most important
decisions made within an organization
• IT infrastructure investments are large, long
term, and have no (real) value on their own
• An infrastructure's value lies in its ability to
quickly and economically enable the
implementation of new applications

56. 7-56
Supporting an IT Infrastructure
• Backup is the process of making a copy of the
information stored on a computer
• Recovery is the process of reinstalling the
backup information in the event the
information was lost
• Storage area networks (SAN) is an
infrastructure for building special, dedicated
networks that allow rapid and reliable access
to storage devices by multiple servers

57. 7-57
Disaster Recovery Plan
• A disaster recovery plan is a detailed process for
recovering information or an IT system in the event
of a catastrophic disaster such as a fire or flood
• A collocation facility is a company that rents space
and telecommunications equipment from another
company
• A disaster recovery cost curve charts (1) the cost of
the unavailability of information and technology and
(2) the cost of recovering from a disaster over time

58. 7-58
Disaster Recovery Plan

59. 7-59
INTEGRATING THE ENTERPRISE
• Integration allows separate applications to
communicate directly with each other by
automatically exporting data files from one
application and importing them into another
• Building integrations between applications
helps an organization maintain better control
of its information

60. 7-60
Why Integration Is Necessary
• Business process reengineering (BPR) is the
analysis and redesign of workflow within and
between enterprises
• Workflow defines all the steps or business
rules, from beginning to end, required for a
business process

61. 7-61
Motives for Integration
• An organization may choose to integrate
because of its concerns about its operations,
both with internal processes and external
relationships
• Enterprise integration is viewed as a possible
solution to a number of problems with internal
organizational processes

62. 7-62
Motives for Integration

63. 7-63
Benefits of Integration
• Many of the benefits can be easily measured in
financial terms
– Cost reduction
– Reduction of inventory costs
– Reduction of personnel costs

64. 7-64
Benefits of Integration

65. 7-65
Service-Oriented Architecture
• Service-oriented architecture (SOA, SoA) –
architecture perspective that develops and uses
small self-contained blocks of code to meet
application software needs
• Web services – small modules of software
(blocks of code) that are interoperable and can
run across a network

66. 7-66
Service-Oriented Architecture
• An SoA is a holistic perspective of software
and software development
• It reuses blocks of code to increase
productivity
• SoAs are the future

67. 7-67
CAN YOU…
1. Define an enterprise system.
2. Describe an enterprise resource planning
(ERP) system.
3. List and describe the seven “ilities.”

68. 7-68
CAN YOU…
4. List the key traits that an IT infrastructure
should exhibit.
5. Describe the differences among the four types
of IT infrastructures.
6. Explain the difference between backup and
recovery.

69. 7-69
CAN YOU…
7. State the purpose of a disaster recovery plan.
8. Explain the need for system integration.