The Future of IT Infrastructure: SoA, Cloud Computing, and Business Continuity Planning

1. Chapter 7 Infrastructure, Cloud Computing, Metrics, and Business Continuity Planning: Building and Sustaining the Dynamic Enterprise

2. STUDENT LEARNING OUTCOMES • Describe how an SoA can be used as a philosophical approach to help the organization of the future. • Define and describe the various hardware and software infrastructure considerations. • Describe cloud computing, its various implementations, and its advantages.

3. STUDENT LEARNING OUTCOMES • Compare and contrast commonly used metrics for assessing the success of IT systems. • Describe business continuity planning (BCP) and its phases.

4. MONEY WILL ALWAYS BE MONEY The use of paper money is on the decline; the use of electronic money has more than doubled in the past 10 years.

5. Questions • Do you use an electronic form of money such as Google wallet or a smartphone app? If so, which one? • Which do you think is easier—the counterfeiting of paper money or the counterfeiting of electronic money? Why? • Why does the government continue to mint pennies when the process costs more than a penny?

6. CHAPTER ORGANIZATION • Introduction: SoA • Learning outcome #1 • Hardware and Software Infrastructure • Learning outcome #2 • Cloud Computing • Learning outcome #3 • IT Success Metrics • Learning outcome #4 • Business Continuity Planning • Learning Outcome #5

7. INTRODUCTION: SoA • Service-oriented architecture (SoA) - perspective that focuses on the development, use, and reuse of small self-contained blocks of code (called services) to meet all application software needs • Software code is not developed solely for a single application • Rather services are built that can be reused

8. INTRODUCTION: SoA • Can extend SoA to the entire organization to be • Lean and agile using resources in the best way • Proactive in addressing changes in the market • Quick to respond and adapt to advances in technology • Transformational in its processes, structure and HR initiatives to match a changing and dynamic workforce

9. INTRODUCTION: SoA • SoA focused specifically on IT • Customers • End users • Software development • Information needs • Hardware requirements

10. INTRODUCTION: SoA Customers should be able to “plug and play” into your organization and have the same pleasurable experience regardless of the channel

11. INTRODUCTION: SoA End users should have access to whatever information and software they need regardless of where they (the end users) are

12. INTRODUCTION: SoA Software development should focus on reusable components (services) to accelerate systems development. This means using component-based development methodologies and taking advantage of exciting Web 2.0 applications.

13. INTRODUCTION: SoA Information would be treated appropriately as a valuable organizational resource – protected, managed, organized, and made available to everyone who needs it.

14. INTRODUCTION: SoA Hardware is both integrated and transparent.

15. HARDWARE AND SOFTWARE INFRASTRUCTURE • Infrastructure – the structure beneath a structure • IT infrastructure is the implementation of your organization’s architecture

16. ERP Revisited • From Chapter 2, Enterprise resource planning (ERP) system – collection of integrated software for business management, accounting, finance, supply chain management, inventory management, customer relationship management, e-collaboration, etc

17. ERP and SoA • For ERP to integrate everything, everything must be plug-and-play components or services • All modules of an ERP vendor must be interoperable • Software from multiple ERP vendors must be interoperable • The infrastructure beneath must be hidden from users and customers

18. ERP and SoA

19. Supporting Network Infrastructures • Computer network – fundamental underlying infrastructure for any IT environment • Distributed • Client/server • Tiered

20. Distributed Network Infrastructure • Distributed – distributing the information and processing power of IT systems via a network • First true network infrastructure • Processing activity is allocated to the location(s) where it can most efficiently be done

21. Distributed Network Infrastructure

22. Client/Server Infrastructure • Client/server infrastructure (network) – one or more computers that are servers which provide services to other computers, called clients • Servers and clients work together to optimize processing, information storage, etc • When you surf the Web, the underlying network infrastructure is client/server

23. Client/Server Infrastructure

24. Tiered Infrastructure • Tiered (layer) – the IT system is partitioned into tiers (layers) where each tier performs a specific type of functionality • 1-tier – single machine • 2-tier – basic client/server relationship • 3-tier – client, application server, data or database server • N-tier – scalable 3-tier structure with more servers

25. Tiered Infrastructure

26. CLOUD COMPUTING • Hottest term in technology today • Cloud computing – model in which any and all IT resources are delivered as a set of services via the Internet • Application software • Processing power • Data storage • Backup facilities • Development tools • Literally everything

27. CLOUD COMPUTING

28. Cloud Computing Goals • Pay for only what you need and use • Real-time scalability (up or down) • Align computing costs with level of business activity • Reduce fixed costs in IT infrastructure

29. Many Implementations of the Cloud • Software-as-a-service (SaaS) • Platform-as-a-service (PaaS) • Infrastructure-as-a-service (IaaS)

30. Software-As-A-Service • SaaS - delivery model for software in which you pay for software on a pay-per-use basis instead of buying the software outright. • Most well known • Supports multi-tenancy - multiple people can simultaneously use a single instance of a piece of software.

31. SaaS and Multi-Tenancy

32. Platform-As-A-Service • PaaS – delivery model for software identical to SaaS with the additional features of • The ability to customize data entry forms, screens, reports, and the like • Access to software development tools to alter the way in which the software works by adding new modules (services) and/or making modifications to existing modules

33. PaaS

34. Infrastructure-As-A-Service • IaaS - model in which you acquire all your technology needs—storage hardware and data, network equipment, application software, operating system software, data backups, CPU processing capabilities, anti-you-name-it software—in the cloud. • All you need – smartphone/tablet and peripheral devices (e.g., printer)

35. Public and Private Clouds • Public cloud – comprises cloud services that exist on the Internet offered to anyone and any business. • Amazon Web Services (AWS) • Windows Azure • Rackspace Cloud • Google Cloud Connect • ElasticHosts

36. Public and Private Clouds • Private cloud – cloud computing services established and hosted by an organization on its internal network and available only to employees and departments within that organization. • All benefits of cloud computing, except held private within an organization

37. Advantages of the Cloud • Lower capital expenditures • Lower barriers to entry • Immediate access to a broad range of application software • Real-time scalability

38. IT SUCCESS METRICS • To justify costs of technology, you need to measure its success • Metrics are also called benchmarks, baseline values a system seeks to attain. • Benchmarking – process of continuously measuring system results and comparing them to benchmarks

39. Efficiency & Effectiveness Metrics • Efficiency – doing something right • In the least time • At the lowest cost • With the fewest errors • Effectiveness – doing the right things • Getting customers to buy when they visit your site • Answering the right question with the right answer the first time

40. Efficiency & Effectiveness Metrics Bottom-line initiatives typically focus on efficiency, while top-line initiatives tend to focus on effectiveness.

41. Types of IT Success Metrics • Infrastructure-centric metrics • Web-centric metrics • Call center metrics

42. Infrastructure-Centric Metrics • Infrastructure-centric metric – measure of efficiency, speed, and/or capacity of technology • Throughput – amount of information that can pass through a system in a given amount of time • Transaction speed – speed at which a system can process a transaction • System availability – the average amount of time a system is down or unavailable

43. Infrastructure-Centric Metrics • Infrastructure-centric metric (cont’d) • Accuracy – measured inversely as error rate, or the number of errors per thousand/million that a system generates • Response time – average time to respond to a user-generated event like a mouse click • Scalability – conceptual metric related to how well a system can be adapted to increased demands

44. Web-Centric Metrics • Web-centric metric – success of your Web and e-business initiatives • Unique visitors – # of unique visitors to a site • Total hits – number of visits to a site • Page exposures – average page exposures to an individual visitor • Conversion rate - % of potential customers who visit your site and who actually buy something

45. Web-Centric Metrics • Web-centric metric (cont’d) • Click-through - # of people who click on an ad and are taken to another site • Cost-per-thousand – sales dollars generated per dollar of advertising • Abandoned registrations - # who start to register at your site and then abandon the process • Abandoned shopping carts - # who create a shopping cart and then abandon it

46. Call Center Metrics • Call center metric – measures the success of call center efforts • Abandon rate - % number of callers who hang up while waiting for their call to be answered • Average speed to answer (ASA) – average time, usually in seconds, that it takes for a call to be answered by an actual person

47. Call Center Metrics • Call center metric (cont’d) • Time service factor (TSF) - % of calls answered within a specific time frame, such as 30 or 90 seconds • First call resolution (FCR) - % of calls that can be resolved without having to call back

48. BUSINESS CONTINUITY PLANNING • Business continuity planning (BCP) – rigorous and well-informed organizational methodology for developing a business continuity plan, a step-by-step guideline defining how the organization will recover from a disaster or extended disruption • BCP is very necessary today given terror threats, increased climate volatility, etc

49. BUSINESS CONTINUITY PLANNING METHODOLOGY

50. BCP METHODOLOGY • Organizational strategic plan • Analysis • Design • Implementation • Testing • Maintenance