Management of Corporate Information System

The Business of IT
Widijanto S. Nugroho, PhD 8/10 Oktober 2013

Chapter MODULE
2

Graduate Program in Information Technology Universitas Indonesia wnugroho@cs.ui.ac.id

Applegate, L.M., Austin, R.D, and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Module 2 The Business of IT in perspective

IT increasingly embedded in business model Advancing technologies drive new products, processes, &
industries IT capability critical to business model execution Operational results affect business value creation Requires sound IT management We need to explore how: Changing infrastructure affects business Management priorities must shift To exploit opportunities and reduce operational risks

Module 2 The Business of IT in perspective

Chapter 5

Introduces elements of modern IT infrastructure and core IT management issues Addresses the robustness of IT capabilities; system availability and security Explores contemporary IT service models and their management requirements Examines IT project management

Chapter 6

Chapter 7

Chapter 8

Reading assignment 2-4: The Power of Virtual Integration (Dells Computer Operation)
Century-old

U.S. Manufacturer CASE 2-3: Ford Motor

Company Trying to determine whether to model operations on acclaimed young company (Dell) Complex questions regarding how IT supports business operations

Chapter 5: Understanding IT Infrastructure

Group discussion - preliminary
CareGroup

Case

Read page 322 326 on Company Profile Group needs to exhibit the company characteristics...any.... Read page 326 327 on CareGroup IT Group need to identify how IT supports the company operation

Read page 327 333 on the system failure Group needs to identify whether a response system is in place

What caused the outage at CareGroup? How well did the company handle the crisis?

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

Companys characteristics CareGroup (1)

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

Companys characteristics CareGroup (1)

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter

Management of Corporate Information System

Understanding IT Infrastructure
Key Learning

Objectives for Chapter 5:

Recognize the

core components of modern IT infrastructure and understand the management issues associated with these components Understand the business opportunities and challenges associated with pervasive internetworked computing power Note: infrastructure refers to the entire layered fabric of hardware, software, systems, and media that collectively deliver IT services
Applegate, L.M., Austin, R.D, and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

What are We trying to understand?
Consider
New

things that you have to manage:

VS -Our living organization -IT characteristics -Its 21st Century now

Existing client-server systems

externally provided services Existing legacy systems older??

What
There is more

is the overall effect on companys business?

inherent uncertainty in the operational environment more degrees of freedom, larger # of smaller components Seventy-five percent of all IT dollars go to insfrastucture. Isnt it time you learned what it is?

IBM ad in major newspapers Fall 2001

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure What are We trying to understand?

What

does the public infrastructure of the Internet mean to your business operations?
Are we

leveraging this infrastructure to maximum advantage? How dependent are we still on proprietary technologies?
How

close do your company operations come to running in real time?

What value

creation opportunities can still be obtained by moving more in the direction of real time value capture?

Has your

company taken appropriate advantage of the many degrees of architectural and operational freedom offered by internetworking technologies?

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure What are We trying to understand?

Have

you thought through the inherent complexities and risks in those additional degrees of freedom? Are you exploring new service delivery models aggresively enough? Have you examined your management frameworks in light of the news and more adaptive capabilities that internetworking technologies offer?
Most important, do

senior business managers play an active and informed role in infrastructure design and planning decisions?

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

A Graphical Representation of Moores Law

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

The Evolution of Corporate IT Infrastructure

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

IT Industry Structural Evolution Timeline

1950
Early Information Automation

1960
Data Processing Era

1970

1980 Micro Era

1990

1995 Network & Internet Era

2000 Wireless Mobile Era??

Emergence of Customer Driven Value Chain ?

Mainframe Era

Client-Server Era

Pre-value Chain Era, Vertically Integrated Mainframes

Minicomputer Steps toward Horizontal

Online Services, Handhelds, and Wireless Begin as Vertical Integrated

Music Finance Health Education Exchanges

Government

IBM BUNCH

Oracle EMC HP Sun

CompuServe Cell Phones AOL Palm

Emerging ThirdParty Supplier Support

EDS CA CSC

PC-Driven Full Horizontal Value Chain

Microsoft Intel Cisco Dell Compaq

Internet-Driven Premature Dis-Integration

eBay Yahoo! Amazon.com Earthlink Google Dot-coms

Source:S. Poesposoetjipto KIPNAS VIII 2003

Chapter 5: Understanding IT Infrastructure

A Graphical Illustration of Metcalfes Law

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

The Bandwidth Explosion

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

The Basic Components of Internetworking Infrastructures
The

technological elements of Networks

FO,

cable systems, DSL, internetworking h/w, identity and policy management, etc.....

The

technological elements of Processing Systems

Transaction

s/w (e.g. Oracle, SAP), servers, client devices, mobile phones, etc.....

The

technological elements of Facilities

Corporate

data centers, collocation data centers, managed service data centers, etc.....

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure Operational Characteristics of Internetworks

Based on

Open Standards Operate asynchronously Have inherent latency in communications They are decentralized They are scalable

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

10

Chapter 5: Understanding IT Infrastructure

A Simple LAN

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

An Example of a WAN

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

11

Chapter 5: Understanding IT Infrastructure

Servers in a Possible E-commerce Configuration

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

Chapter 5: Understanding IT Infrastructure

A Modern Data Center

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009

12