Managing Digital Business

Infrastructure
Session 3
 Sub-CPMK
• Mahasiswa mampu menunjukkan komponen infrastruktur yang ada
pada bisnis digital dan faktor -faktor yang berkaitan dengan
infrastruktur bisnis digital yang di dalamnya mengenai customer
experience, digital services, jaringan, dan teknologi. (C3, A3)

Materi:
1. Management Issue 6. Focus on the Development of
2. Introduction Customer Experiences and Digital
3. Digital Business Infrastructure Services
Components 7. Managing Internet Digital
4. A Short Introduction to Digital Communications through Internal
Technology Networks and External Networks
5. Management Issue in Creating a 8. Technology Standards
New Customer Facing Digital 9. Focus On Internal and External
Service Governance Factors That Impact
Digital Business
1. Management Issue
 Management Issue
• What are the practical risks to the
organisation of failure to manage the e-
commerce infrastructure adequately?
• How should we evaluate alternative models of
delivering web services?
2. Introduction
 Introduction
• Defining an adequate digital technology infrastructure is vital
to all startup and existing companies making the
transformation to digital business.
• Digital business infrastructure is the architecture of hardware,
software, content, and data used to deliver digital business
services to employees, customers, and partners.
• Digital business infrastructure refers to the combination of
hardware such as servers and client desktop computers and
mobile devices, the network used to link this hardware and
the software application used to deliver services to workers
within business and also to its partners and customers.
 Introduction

Table 3.1 Key management issues of e-business infrastructure

 Introduction

Table 3.1 Key management issues of e-business infrastructure (Continued)

 Supporting The Growing Range Of
Digital Business Technology Platform
• There are also different software platforms that marketers can use to
reach and interact with their audience through content marketing or
advertising. So lets look at the range of options that are available:
Desktop, laptop, and notebook platforms
1. Desktop browser based platform
2. Desktop apps
3. Email platforms
4. Feed based and API data exchange platforms
5. Video marketing platforms
Mobile phone and tablet platforms
6. Mobile operating
7. Mobile based apps
3. Digital Business Infrastructure
Components
 Digital Business Infrastructure
Components
• Kampas (2000) describes an alternative five level infrastructure
model of what he refers to as the information systems function
chain:
1. Storage / physical : memory and disk hardware components
(equivalent to level IV in figure 3.2)
2. Processing: computation and logic provided by the processor
(processing occurs at level I and III)
3. Infrastructure: this refers to the human and external interfaces
and also the network, referred to as ‘extrastructure’ (this level III,
although the human or external interfaces are not shown there)
4. Application / content: this is the data processed by the application
into information (level V)
5. Intelligence: additional computer based logic that transforms
information to knowledge (level I)
 Digital Business Infrastructure
Components (Cont’d)

Figure 3.2 A five-layer model of e-business infrastructure

4. A Short Introduction to Digital
Technology
 A Short Introduction to Digital
Technology
• Client server: the client server architecture
consists of client computers, such as PC’s sharing
recourses such as a database stored on more
powerful server computers.
• Internet service provider : a provider providing
home or business users with a connection to
access the internet. They can also host web based
applications.
• Backbones: high speed communications link use
to enable internet communications across a
country and internationally.
 A Short Introduction to Digital
Technology (Cont’d)

Physical and network infrastructure components of the Internet

Figure 3.3
(Levels IV and III in Figure 3.3)
5. Management Issue in Creating a
New Customer Facing Digital
Service
 Management Issue in Creating a New
Customer Facing Digital Service
• In this section we consider some of the issues
that managers introducing new services need
to be aware of, including:
1. Domain selection
2. Selection of hosting service including cloud
providers
3. Selection of additional SaaS (Software as a
Service) platforms
 5.1 Domain Name Selection
• The extention is commonly known as the generic top
level domain is:
1. .com represents an international or American
Company such as www.amazon.com
2. .org is used by not for profit organizations such as
www.greenpeace.org
3. .mobi is introduced for sites configured for mobile
phones
4. .net is a network provider such as www.demon.net
5. .edu is an academic institution in the US
 5.1 Domain Name Selection
(Cont’d)
• There are also spesific country code top level
domains:
1. .co.uk represents a company based in the UK
such as www.guardian.co.uk
2. .au, .ca, .de, .fi, .fr, .it, .nl, etc. represent other
countries (the co.uk syntax is an anomaly!)
3. .ac.uk is UK based university or other higher
education institution (e.g. www.cranfield.ac.uk)
4. .org.uk is for a not profit organization focusing
on a single country (e.g. www.mencao.org.uk)
 5.1 Domain Name Selection
(Cont’d)
URLs
• Uniform resource locator (URL) is a web address
used to locate a web page on a web server.
• URL strategy defined approach to forming URLs,
including the use of capitalisation, hyphenation
and sub domains for different brands and
different locations. This has implications for
promoting a website offline through promotional
or vanity URLs, search engine optimisation and
findability.
 5.2 Domain Name Registration
• Domain name registration is the process of
reserving a unique web address that can be
used to refer to the company website.
 5.3 Managing Hardware and
Systems Software Infrastructure
Layer III – Systems Software
A key management decision is whether to
standardize throughout the organization.
Standardization lead to reduced numbers of
contacts for support and maintenance and can
reduce purchase prices through multiuser licences.
Systems software choices occur for the client,
server, and network. On client computers, the
decision will be which browser software to
standardize on.
 5.4 Managing Digital Business
Applications Infrastructure
• Digital business applications architecture is
applications that provide access to services
and information inside and beyond an
organization.
• Management of the digital business
applications infrastructure concern delivering
the right applications to all users of digital
business services.
 5.4 Managing Digital Business
Applications Infrastructure (Cont’d)

Figure 3.4 (a) Fragmented applications infrastructure

Source: Adapted from Hasselbring (2000).
 5.4 Managing Digital Business
Applications Infrastructure (Cont’d)

Figure 3.4 (b) integrated applications infrastructure (Continued)

Source: Adapted from Hasselbring (2000)
 5.4 Managing Digital Business
Applications Infrastructure (Cont’d)

Figure 3.5 Differing use of applications at levels of management within companies

 5.4 Managing Digital Business
Applications Infrastructure (Cont’d)

Figure 3.6 Elements of e-business infrastructure that require management

 6. Focus on the Development of
Customer Experiences and Digital
Services
 Focus on the Development of Customer
Experiences and Digital Services
• Web services is a business applications and software services
are provided through internet ad web protocols, with the
application managed on a separate server from where it is
accessed through a web browser on an end users computer.
• Web services or SaaS refers to a highly significant model for
managing software and data within the digital business age.
• The web services model involves managing and performing all
types of business processes and activities through accessing
web based services rather than running a traditional
executable application on the processor of your local
computer.
 6.1 Benefit of Web Services or
Saas
• Saas are usually paid for on a subscription
basis, so can potentially be switched on and
off payments paid according to usage, hence
they are also known as on demand. The main
business benefit of these systems is that
installation and maintenance cost are
effectively outsourced.
 6.2 Challenges of Deploying Saas
• Downtime or poor availability if the network
connection or server hosting the application or server
fails.
• Lower performance than local database. You know
from using Google’s Gmail or Microsoft Outlook.com
that, although responsive, they cannot be as
responsive as using a local email package such as the
Outlook application on Windows or Apple Mail.
• Reduced data security since, traditionally, data would
be backed up locally by in house IT Staff.
• Data protection.
 6.3 Cloud Computing
• Cloud computing : the use of distributed storage and processing on
servers connected by the internet, typically provided as software or
data storage as a subscription service provided by other companies.
Examples of cloud computing web service is:
1. Web mail readers
2. E-commerce account and purchasing management facilities such
as Amazon.com
3. Many service from Google such as Google Maps, Gmail, Picasa,
and Google Analytics
4. Office application solutions from Microsoft with Office 365
5. Customer relationship management applications from
Salesforces.com and Siebel / Oracle
6. Supply chain management solutions form SAP and Oracle
7. Social media services such as Facebook, Twitter, Instagram, etc
 6.4 Virtualisation and SOA
• Virtualization : the indirect provision of
technology services through another resources
(abstraction). Essentially one computer is using
its processing and storage capacity to do the
work another.
• Service orientated architecture : a service
orientated architecture is a collection of services
that communicate with each other as part of a
distributed systems architecture comprising
different services.
 6.5 Selecting Hosting Providers
• Hosting provider : A service provider that
manages the server used to host an
organizations website and its connection to
the Internet backbones.
 6.5 Selecting Hosting Providers
(Cont’d)
Managing service quality when selecting Internet
service and cloud hosting providers
Service providers who provide access to the
internet usually referred to as ISP. ISPs may also
host the websites that publish a company’s website
content. But many organizations will turn to a
separate hosting provider to manage the company
website and other digital services accessed by
customers and partners such as extranets, so
important to select an appropriate hosting provider.
 6.6 ISP Connecting Methods
• Dial Up connection : access to the internet via
phone lines using analogue modems. While it
might seem surprising, there are still many
thousands of UL dialup users in places where
broadbands service is not available.
• Broadband connection : access to the internet
via phone lines using a digital data transfer
mechanism.
 7. Managing Internet Digital
Communications through Internal
Networks and External Networks
 7.1 Internet Application
Intranet are used extensively for supporting sell side e-
commerce from within the marketing function. They are
also used to support core supply chain management
activities as described in the next section on extranets. A
marketing intranet has the following advantages:
1. Reduced product lifecycles
2. Reduced cost through higher productivity and saving
on hardcopy
3. Better customer service
4. Distribution of information through remote offices
nationally or globally
 7.1 Internet Application (Cont’d)
• Intranet are also used for internal marketing
communications since they include:
1. Staff phone directories
2. Staff procedures or quality manuals
3. Information for agents such as product
specifications, current list and discounted prices
4. Staff bulletin or newsletter
5. Training courses
 7.2 Extranet Applications
Business benefits of an extranet include:
1. Integrating of supply chain using ordering, order tracking, and stock
control in an online environment
2. Cutting the cost of making documentation available to end users and
business partners many insurance companies now provide policy
documentation this way
3. Allowing collaborative and speedy development of materials and
documents between partners, supplier, and customers
4. Improving the customer experience by providing access to information
for customers, which they use to solve their own problems
5. A single entry point into the organization for all outsiders
6. Ensuring consistency, safety and security of service for external users
7. The provision of ‘only for registered users’ propositions, unavailable to
people not registered or not customers
8. The inevitable growth of the virtual company as all resources used by
employees, partner and customers a like don’t require ‘being on the
premises’
 7.3 Encouraging Use of
Intranets and Extranets
Common warning signs identified can include:
1. Staff usage of the intranet is low and not growing
2. The majority of content is out of date, incomplete or
inaccurate
3. The intranet is very inconsistent in appearance,
particularly across sections managed by different
groups
4. Almost all information on the intranet is reference
material, not news or recent updates
5. Most sections of the intranet used solely to publicize
the existence of the business groups within the
organization
 7.4 Streaming TV
• Streaming TV is delivered using internet
protocol, either by a broadband connection or
increasingly via mobile 3G/4G or 5G service.
• Streaming TV can be streamed using real time
broadcasting (such as the synchronous playing
of TV channel), real time streaming of
recorded content (such as a movie) or
downloaded before playback
 7.5 VoIP
• Voice over IP (VOIP) is voice data is transferred
across the internet – it enable phone calls to be
made over the Internet. Other benefits include:
1. Click to call
2. Call forwarding and conferencing to people at
other locations
3. Unified messaging
4. Hot desking
5. Cost control
 7.5 VoIp (Cont’d)
• Several options are available:
1. Peer to peer
2. Hosted service
3. Complete replacement of all telephone
systems
4. Upgrading existing telephone systems to use
VoIP
 7.6 Widgets
• Widgets is badges or buttons incorporated into a website
or social networks space by its owner, with content or
services typically served from another site, making widgets
effectively a mini software application or web service.
Content can be updated in real time since the widget
interacts with the server each time it loads. Main types of
widgets are:
1. Web widgets
2. Mobile widgets
3. Desktop and operating systems gadgets
4. Social media widgets
5. Facebook applications
6. Browser extentions
8. Technology Standards
 8.1 Example of XML Applications
Content : the design, text, and graphical information that
forms a web page. Good content is the key to attracting
customers to a website and retaining their interest or
achieving repeat visits. Another widely adopted
application of XML is ebXML. The standard has been
coordinated by Oasis. The original project was intended
to define business exchange using five standards:
1. Business processes
2. Core data components
3. Collaboration protocol agreements
4. Messaging
5. Registries and repositories
 8.1 Example of XML Applications
(Cont’d)
Oasis define three types of transaction that form
business processes:
1. Business transaction : a single business
transaction between two partners, such as
placing an order or shipping an order
2. Binary collaboration : a sequence of these
business transactions, performed between two
partners, each performing one role
3. Multi party collaboration : a service of binary
collaborations composed of a collection of
business partners
 8.2 Sematic Web Standards
• Sematic web : interrelated content including
data with defined meaning, enabling better
exchange of information between computers
and between people and computers
• Agents : software programs that can assist
humans by automatically gathering
information from the internet or exchanging
data with other agents based on parameters
supplied by the user.
 8.3 Microformats
• Microformats : a simple set of formats based
on XHTML for describing and exchanging
information about objects, including product
and travel reviews, recipes, and event
information.
9. Focus On Internal and External
Governance Factors That Impact
Digital Business
 Focus On Internal and External
Governance Factors That Impact
Digital Business
Internet governance is control of the operation and use
of the internet. Dyson describe different layers of
judirisdiction. The are:
1. Physical space comprising individual countries in
which their own laws such as those governing
taxation, privacy, and trading and advertising
standards hold
2. ISPs the connection between the physical and
virtual words
 9.1 The Net Neutrally Principle
• Net neutrally: the principle of provision of
equal access to different internet services by
telecommunications service providers
 9.2 Open Source Software

• Open Source software is developed

collaboratively, independent of a vendor, by a
community of software developers and users
 Summary:
• Businesses need to provide a range of digital business
infrastructure that can support users on a range of desktop
and mobile platforms and is flexible enough to change with
different business demands
• Mobile platform decisions involve selection of which
mobile operating systems to target, provision of mobile
based services and whether additional apps are required
• A five layers for managing digital business infrastructure is
reviewed where Level I is the applications layer, Level II is
the systems software layer, Level III is the transport layer,
Level IV is the storage or physical layer, and Level V is the
content or data layer
TERIMA KASIH