Unit IV

Chapter 1: Shared services delivered by a Service Oriented Architecture (SOA) in a Private or

Public Cloud
1. Definition of Shared Services:
- Shared services are reusable components or functionalities made available to multiple applications
or services within an organization.
- These services promote efficiency, reduce redundancy, and enhance consistency across the
enterprise.
2. Characteristics of Shared Services in SOA:
- Reusability: Shared services are designed to be reused across different applications, reducing
development effort.
- Standardization: They adhere to common standards, ensuring consistency and interoperability.
- Centralized Management: Shared services are centrally managed, making updates and
maintenance easier.
- Granularity: Services can be fine-grained (e.g., authentication) or coarse-grained (e.g., payment
processing).
3. Examples of Shared Services in Cloud SOA:
- Identity and Access Management (IAM): Provides authentication, authorization, and single sign-
on capabilities.
- Logging and Monitoring Services: Collects and analyzes logs, metrics, and traces from various
services.
- Messaging Services: Facilitates communication between microservices or components.
- Caching Services: Improves performance by storing frequently accessed data in memory.
- Database Services: Offers database access, replication, and scaling features.
- Security Services: Includes encryption, threat detection, and firewall management.
4. Benefits of Shared Services:
- Cost Efficiency: Shared services reduce duplication, leading to cost savings.
- Consistency: Standardized services ensure uniform behavior across applications.
- Scalability: Shared services can scale horizontally to accommodate increased demand.
- Agility: Developers can focus on business logic, relying on existing services.
5. Challenges and Considerations:
- Governance: Proper governance is essential to manage shared services effectively.
- Security: Shared services must be secure and comply with privacy regulations.
- Versioning: Changes to shared services should be backward-compatible.
- Service Discovery: Mechanisms for discovering available services are crucial.
SOA Overview:
- SOA is an architectural approach that emphasizes using services to build applications.
- It focuses on making software components reusable by defining standardized interfaces.
- Services are provided over a network, allowing applications to assemble functionality from these
services.
Layers in SOA:
- Consumer Interface Layer: GUI-based apps for end users accessing the applications.
- Business Process Layer: Represents business use cases within the application.
- Services Layer: Contains whole-enterprise services available for use.
Guiding Principles of SOA:
- Standardized Service Contract: Services are specified through service description documents.
- Loose Coupling: Services are self-contained components with minimal dependencies on others.
- Service Abstraction: Hides implementation details, exposing only necessary information.
Interaction Patterns:
- Service Orchestration: Aggregating information from multiple services to fulfill a request.
- Service Choreography: Coordinated interaction of services without a single point of control.
Chapter 2: Services, Databases, and Applications on Demand

Figure. Services, databases, and applications

1. DNS (Domain Name System)
- Translates user-friendly domain names (e.g., "example.com") into IP addresses.
 - Ensures seamless communication between users and servers.
2. Load Balancer
- Distributes incoming network or application traffic across multiple servers.
- Prevents any single server from becoming overwhelmed.
- Ensures efficient resource utilization and improved performance.
3. Application
- The software that users interact with (e.g., web applications, mobile apps).
- Processes user requests, serves content and handles business logic.
4. Database (DB)
- Stores and manages data generated and used by the Application.
- Includes various types: relational (SQL), NoSQL, and in-memory databases.
5. Cloud
- Indicates that all components (DNS, Load Balancer, Application, and Database) are hosted in a
cloud computing environment.
- Provides scalability, flexibility, and global accessibility.
6. Backups and Cloud Storage
- Backups: Ensure data security and recovery.
- Cloud Storage: Stores backups remotely for reliability.
Services on demand typically refer to cloud-based solutions that provide essential IT functions over
the internet. These include Software as a Service (SaaS), which delivers software applications via the
cloud; Platform as a Service (PaaS), offering a development environment to build and deploy
applications; and Infrastructure as a Service (IaaS), providing virtualized computing resources over
the internet. These services enable businesses to scale resources according to their needs, reduce costs,
and improve efficiency by outsourcing complex IT management to cloud providers.
Databases on demand are cloud-based database services that allow users to store, manage, and
analyze data without maintaining physical database servers. Examples include Amazon RDS, Google
Cloud SQL, and Microsoft Azure SQL Database. These services offer high availability, scalability,
and security, enabling businesses to handle large volumes of data with minimal administrative
overhead. They support various database models catering to diverse application requirements,
including relational, NoSQL, and in-memory databases.
Applications on demand refer to software applications hosted on the cloud and accessible via the
internet. This model eliminates the need for local installation and maintenance, allowing users to
access the latest software versions and features seamlessly. Common examples include office suites
like Google Workspace and Microsoft 365, customer relationship management (CRM) systems like
Salesforce, and collaboration tools like Slack.
Chapter 3: The effect on Enterprise Architecture and its traditional frameworks such as
Zachman.
The advent of cloud computing and on-demand services has significantly impacted enterprise
architecture (EA) and its traditional frameworks, such as the Zachman Framework. These changes
necessitate a reevaluation of established methodologies to ensure they remain relevant and effective in
today's dynamic IT landscape.
1. Shift in Focus:
Traditional EA frameworks like Zachman emphasize a comprehensive, static blueprint of an
organization's information systems architecture. However, with cloud computing, the focus shifts
towards flexibility, agility, and scalability. Enterprises must now design architectures that can rapidly
adapt to changing business requirements and technological advancements. This demands a more
iterative and adaptive approach to EA, contrasting with the rigid, long-term planning traditionally
advocated by frameworks like Zachman.
2. Integration of Cloud Services:
Cloud computing introduces new components such as Software as a Service (SaaS), Platform as a
Service (PaaS), and Infrastructure as a Service (IaaS). These services necessitate integration into the
existing EA, challenging traditional frameworks to accommodate these external, dynamic resources.
The Zachman Framework's detailed, columnar approach must evolve to incorporate these cloud-based
elements, ensuring seamless interoperability and management of both on-premises and cloud
resources.
3. Data Management and Security:
With the shift to cloud services, data management and security paradigms also change. Traditional EA
frameworks must now address issues related to data sovereignty, compliance, and security in a
distributed environment. This requires an expansion of the Zachman Framework's scope to include
cloud-specific security models, data governance policies, and compliance frameworks.
4. Cost Management:
Cloud services operate on a pay-as-you-go model, impacting financial management within enterprise
architectures. Traditional frameworks, which often assume fixed IT costs, must adapt to the variable
cost structures introduced by cloud computing. The Zachman Framework needs to incorporate
financial modeling tools that can manage and optimize costs in this new, flexible spending
environment.
5. Business-IT Alignment:
Cloud computing enhances the alignment between business objectives and IT capabilities by
providing rapid deployment and scaling of resources. Traditional EA frameworks like Zachman must
therefore evolve to support more dynamic and business-driven IT strategies. This involves
incorporating real-time analytics, continuous delivery, and agile methodologies into the architecture
planning process.

Figure. Components
Figure. Perspectives
Chapter 4: The Open Group Architecture Framework (TOGAF)
The Open Group Architecture Framework (TOGAF) is a comprehensive framework for enterprise
architecture that provides an approach for designing, planning, implementing, and governing an
enterprise information architecture.
- TOGAF: A comprehensive framework for enterprise architecture.
- Developed by The Open Group.
- Ensures alignment between business and IT goals.
- Maximizes value from IT investments.
Key Components:
- Architecture Development Method (ADM):
- Step-by-step process for developing enterprise architecture.
- Phases: Preliminary, Vision, Business Architecture, Information Systems Architecture, Technology
Architecture, Opportunities and Solutions, Migration Planning, Implementation Governance, and
Architecture Change Management.
- Ensures continuous improvement and alignment with business objectives.
Modular Structure:
- Tailorable to specific organizational needs.
- Includes the Enterprise Continuum for categorizing and leveraging architectural assets.
- Architecture Repository for storing architectural work products.
Emphasis on Stakeholder Engagement:
- Addresses business, data, application, and technology domains.
- Provides guidelines and techniques for each ADM phase.
- Ensures comprehensive and cohesive architectures.
Benefits of Adopting TOGAF:
- Improved alignment between business and IT.
- More efficient use of resources.
- Better risk management.
- Enhanced ability to manage change.
- Common language and methodology for streamlining architecture processes.
- Improved collaboration among stakeholders.

Figure. The Open Group Architecture Framework (TOGAF)

1. Preliminary: This phase involves initial planning, scoping, and understanding of project
requirements.
2. Architecture Vision (A): Here, the high-level vision for the system architecture is defined, aligning
it with business goals.
3. Business Architecture (B): Focuses on understanding business processes, organizational structure,
and stakeholder needs.
4. Information Systems Architectures (C): Addresses data architecture, application components, and
integration.
5. Technology Architecture (D): Deals with infrastructure, platforms, and technology choices.
6. Opportunities and Solutions (E): Evaluate potential solutions, innovations, and trade-offs.
7. Migration Planning (F): Charts the path for transitioning from the current state to the desired
architecture.
Chapter 5: Customer Relationship Management
CRM is the strategic use of information, processes, technology, and people to manage the customer’s
relationship with your company (marketing, sales, services, and support) across the whole customer
life cycle. the CRM infrastructure is made up of four key components: information, process,
technology, and people.
CRM software helps companies manage their customer base, keeps track of customers, and targets
them with new products or price offers to stop them from defecting. This is essentially a self-service
software solution that helps the enterprise use it in several ways.
An example from telephony would be that instead of setting up a DSL connection by sending an
engineer to the customer’s site, the telco does the same job more effectively, and at a lower cost, by
installing the equipment in its central office—switching, through software, the customer line to DSL
automatically.
As Internet commerce gained weight among consumers and in the business community, on-premises
customer relationship management routines became popular because firms sought to understand their
online customers, and serve them better at lower cost, by implementing an increasingly more efficient
solution to:

◾ manage customer relationships,

◾ integrate business processes and data streams, and

◾ increase the ways and means for exploiting such information.

A sophisticated CRM would:

◾ produce customer intelligence that can be used effectively in targeted marketing and

◾ improve the analytics underpinning decisions made in investing the company’s human and other
resources.
To reach the goals expected of it, CRM software should:

◾ track incoming and outgoing customer communications,

◾ flash out types of customer-initiated events, and

◾ register responses to business-initiated communications in a way that can be effectively exploited.

There is a need to evaluate the effectiveness of operational processes such as marketing and service
support. This enables a company to move toward personalizing products and their sales procedures in
a way able to promotes:

◾ customer value and

◾ customer loyalty.

Microsoft has two versions of Dynamics CRM, differing in offline data management and storage:

◾ Dynamics Professional Plus permits users to take data offline since the product supports a web
server and database server running locally in a client-server mode.

◾ Dynamics CRM 4.0 is on demand, an outgrowth of an earlier version (CRM 3.0) featuring increased
scalability for the web. It also runs a Microsoft Outlook client.
The market is offering three CRM solutions: The core one includes features like a multichannel
contact center, web and voice self-service, a self-learning knowledge base, e-mail response
management, custom analytics, and reporting, as well as integration with other enterprise planning
processes. The other two routines promote sales and marketing services:

◾ RightNow Sales integrates forecasting, quote generation, opportunity status, and contact
management.

◾ RightNow Marketing targets the automation of marketing activities with information management
and resource optimization.

Figure. The customer life cycle

Figure. The CRM View of the Zachman Framework
Chapter 6: Enterprise Resource Planning (ERP)

Figure. ERP
Introduction to ERP:
- ERP: Integrated management of core business processes, often in real-time.
- Utilizes software and technology to streamline operations and information across the organization.

◾ ERP maps processes, not functions.

◾ it can help in engineering a just-in-time supply chain.

◾ its pass-through capability is instrumental in strengthening business partner relations, and

◾ its functionality helps in integrating many formerly discrete island processes.

◾ check in real-time inventories and sales for a particular region, by units and/or value; or

◾ compare current orders to salesperson quotas

◾ identify the most profitable customers for appropriate handholding.

NetSuite provides an example of a firm offering on-demand integrated ERP, CRM, and e-commerce
programs. Like Salesforce.com, NetSuite is a pure cloud company, marketing its software solely on a
hosted basis with subscription pricing.
Key Components of ERP Systems:
- Modules: Each module handles specific business functions (e.g., finance, HR, manufacturing).
- Centralized Database: Single source of truth for all data, ensuring data consistency and accuracy.
- Integration: Seamless integration of different business processes and functions.
Core ERP Modules:
1. Finance and Accounting:
- Manages financial transactions, general ledger, accounts payable/receivable.
- Ensures compliance with financial regulations and standards.
- Tools: Financial reporting, budgeting, and forecasting.
2. Human Resources (HR):
- Handles employee records, payroll, recruitment, and performance management.
- Supports employee self-service portals and benefits administration.
- Tools: Talent management, time and attendance tracking.
3. Manufacturing:
- Manages production planning, scheduling, and inventory control.
- Facilitates shop floor management and quality control.
- Tools: Bill of materials (BOM), work order management.
4. Supply Chain Management (SCM):
- Manages procurement, order processing, inventory, and logistics.
- Enhances supplier relationship management and demand forecasting.
- Tools: Warehouse management, transportation management.
5. Customer Relationship Management (CRM):
- Manages sales, customer service, and marketing activities.
- Provides insights into customer behavior and preferences.
- Tools: Sales force automation, customer support management.
Best Practices for ERP Implementation:
- Clear Objectives: Define clear goals and objectives for the ERP implementation.
- Stakeholder Involvement: Involve key stakeholders from all departments to ensure the system meets
diverse needs.
- Change Management: Develop a comprehensive change management plan to support user adoption.
- Training: Provide extensive training and support for all users.
- Phased Approach: Implement the ERP system in phases to manage complexity and reduce risk.
- Vendor Selection: Choose a reliable ERP vendor that offers robust support and regular updates.
Popular ERP Systems:
- SAP ERP
- Oracle ERP Cloud
- Microsoft Dynamics 365
- Infor ERP
- Epicor ERP
Chapter 7: Just-in-Time Inventories
Toyota began the development of what has become known as the just-in-time system, prodded by one
of its employees who, over some time, kept asking why there should be so much inventory on stock.

◾ JIT has changed the fundamental economics of manufacturing, and

◾ it altered the basis of competition in many industries, particularly in companies where management
is in charge.
To appreciate the value of the just-in-time concept and its reach, the reader should know that there are
three different levels of inventory accumulation in a manufacturing industry. The first is that of raw
materials coming into the factory. The second is semi-manufactured goods stored between machine
shops and the so-called banks, and it is usually composed of inventories that will be used by the next
shop in line. The third is that of finished goods, which pile up in the warehouse until they are shipped.
Right scheduling is at a premium, and it must involve very close collaboration among typically
distinct departments in manufacturing, in terms of:

◾ timing of operations and

◾ quantity of production.
Figure. Return to zero JIT for product A (from a real-life application).
Moreover, both ERP and just-in-time logistics require a most significant preparatory work, starting
with:

◾ recognizing and identifying all products and their parts, down to the last detail

◾ updating in real-time the bill of materials of every product and immediately alerting scheduling (and
if necessary, stopping production);

◾ having in place a system of standard costs and cost control accounting, to track inventory excesses
and report them; and

◾ using real-time technology, including models, to ensure that a “zero line” is observed, which means
a predefined level of planned inventory followed item by item.
Figure. Trend line confidence intervals in inventory management and the temporarily acceptable
buffer.
Level of confidence for inventory management:

◾ an operating characteristics (OC) curve can be used in inventory optimization item by item, and

◾ this OC curve is ingeniously employed to help combine the likelihood of servicing with the
corresponding inventory costs.
A highly innovative evolution in inventory planning and control is the switch from build-to-inventory
to build-to-order manufacturing. This has produced a new and efficient manufacturing/merchandising
environment, which led to:

◾ improved competitiveness,

◾ reduced order cycle times,

◾ much lower inventory costs,

◾ market share gains, and

◾ quality improvements across product lines.

JIT Techniques and Tools:

- Kanban:
- Visual signaling system to trigger the movement of materials within the production process.
- Ensures that materials are only produced or moved when needed.
- 5S Methodology:
- Sort, Set in order, Shine, Standardize, and Sustain.
- Organizes the workplace for efficiency and effectiveness.
- Lean Manufacturing:
- Focuses on minimizing waste (muda) and maximizing value.
- Techniques like value stream mapping and continuous flow.
Real-World Applications:
- Automotive Industry:
- Toyota and other automakers use JIT to manage parts inventory.
- Emphasizes reducing waste and enhancing production efficiency.
- Electronics:
 - Companies like Dell use JIT for custom-built computers.
- Reduces lead times and aligns production with customer orders.
Chapter 8: Machine-to-Machine and RFID Communications
Machine-to-machine (M2M) communication is one of the recent developments in technology,
following the deliverables of a seminal project at MIT. Several enterprises have been applying it, and
others have undertaken trials. Many made M2M deployments based on GSM, GPRS, and 5G. Down
to the basics, M2M is designed to:

◾ track objects,

◾ record utility usage,

◾ monitor machine performance and more.

In Britain, Yorkshire Water uses GSM-based M2M to monitor remotely chlorine levels in drinking
water, the level of water in tanks, and the performance of pumps, as well as to check up on leaks.
Vodaphone uses M2M for telemetry, including remote alarm systems monitoring and remote meter
reading for utilities.
Promoters of sensor networks point to the growing use of radio frequency identification (RFID) tags
as evidence that embedding tiny wireless devices in everyday items makes commercial sense. The
RFID tags:

◾ are the size of a small grain,

◾ do not contain a battery, and

◾ are woken up by a pulse of radio energy.

Such energy is absorbed and used to power up a small chip and transmit a response that is usually an
identification (ID) number. Also known as low-frequency ID (LFID), such tags are now employed,
among other users, by retailers for inventory control. Wal-Mart and Tesco are examples.
In 2004 Wal-Mart required its top one hundred suppliers to have LFID tags by January 2005, with
electronic product codes (EPCs). The company took this step on the belief that through them it will
significantly improve its inventory management.
The principle is that:

◾ sensors need only enough power to communicate with their neighbors, and

◾ messages can easily be passed along to a more powerful computer-based control station for
management use.
The policy of embedded auto electronics is becoming a classic; however:
◾ software problems are on their way to reaching epidemic proportions, and

◾ dealers are very often unable to trace the causes, particularly those of intermittent error messages.

Machine-to-machine (M2M) and RFID communications are pivotal in advancing automation and
connectivity across various sectors. M2M enables devices to communicate directly, enhancing
efficiency and real-time decision-making. RFID technology provides precise identification and
tracking capabilities, essential for inventory management and security. Together, these technologies
offer powerful solutions for smart systems and improved operational control.
Chapter 9: Challenges Presented by Organization
Networking
- IEEE 802.15.4 Standard: Developed by the Institute of Electrical and Electronics Engineers (IEEE)
for tiny sensor devices.
- ZigBee Alliance: An industry group aiming to popularize the 802.15.4 standard through ZigBee
standards, like how the Wi-Fi Alliance popularized IEEE 802.11 (Wi-Fi).
Importance of Protocol Standards
- Rapid Evolution of Logistics:
- The logistics environment changes quickly, requiring companies to have up-to-date data.
- Efficient data capture from all transaction sides is crucial for competitive advantage.
- Standardization of Protocols:
- Standardized protocols ensure seamless communication and information exchange in dynamic
logistics environments.
- This includes information about products being intermediated and shipped to customers.
Business Transactions and Protocols
- Variability in Business Transactions:
- While protocols must be standardized, business transactions themselves are not uniform.
- Companies may find suitable OnDemand software solutions in the cloud that meet operational
needs.
- Challenges with Business Partners:
- Issues can arise due to varying levels of preparedness among business partners in executing online
transactions.
- Ensuring all partners are equipped to handle these transactions is critical for seamless operations.
Adoption of OnDemand Software
- Cloud-Based Logistics Solutions:
- First-class logistics solutions may be available via OnDemand software in the cloud.
- Companies need to assess their readiness to adopt these solutions.
- Managerial and Organizational Challenges:
- Managerial issues, such as having a clear commercial vision.
- Organizational challenges, including the need for supply chain restructuring.
- Both managerial and organizational readiness are essential for successful adoption.
Reengineering
Reengineering Necessity: The dynamic nature of online shopping environments necessitates
reengineering due to increased choice, complexity, and information overload.
- Role of Search Engines: These tools are crucial as they facilitate access to valued information on
goods and services, aiding both buyers and sellers.
Expansion of Search Space
- Buyer's Perspective:
- Search engines allow buyers to expand their search space.
- An organized universe is essential, aggregating many suppliers and myriad items.
- Seller's Perspective:
- Firms leverage the internet to provide nearly unlimited expansion of the search space.
Effective Matching of Buyers and Suppliers
- Commercial Vision:
- The effectiveness of matching buyers and suppliers increases when both have a clear commercial
vision.
- Client Focus:
- Understanding and addressing client needs effectively is crucial.
- This process should occur in an environment fostering client intimacy.
Continuous Innovation
- Meeting Customer Requirements:
- Steady innovation in products and services is essential to meet and continually satisfy customer
requirements.
- Client Intimacy:
- Focusing on client intimacy helps in understanding and responding to customer needs effectively.
Chapter 10: Challenges Presented by Commercial Vision
Introduction to Commercial Vision:
- Commercial Vision: A strategic roadmap that outlines a company's long-term goals, market
positioning, and competitive advantage.
- Importance: Aligns the organization's efforts, drives innovation, and ensures sustainable growth.
Key Challenges Presented by Commercial Vision:
1. Alignment with Organizational Goals:
- Nature: Ensuring the commercial vision aligns with the broader organizational goals and values.
- Impact: Misalignment can lead to fragmented efforts, wasted resources, and strategic drift.
- Solution: Engage stakeholders at all levels, regularly review and adjust the vision, and ensure it
reflects the company's core values and objectives.
2. Market Adaptation:
- Nature: Adapting the commercial vision to changing market conditions and customer preferences.
- Impact: Failure to adapt can result in missed opportunities and loss of competitive edge.
- Solution: Conduct regular market research, stay agile, and be willing to pivot the vision based on
market feedback and trends.
3. Resource Allocation:
- Nature: Allocating sufficient resources (financial, human, technological) to support the vision.
- Impact: Inadequate resources can stall initiatives and hinder progress.
- Solution: Develop a clear resource allocation strategy, prioritize initiatives that align with the
vision, and ensure efficient use of resources.
4. Execution and Implementation:
- Nature: Translating the commercial vision into actionable plans and ensuring effective execution.
- Impact: Poor execution can lead to failed projects, low morale, and wasted investment.
- Solution: Break down the vision into specific, measurable goals, assign clear responsibilities, and
monitor progress regularly.
5. Leadership and Buy-In:
- Nature: Gaining commitment and support from leadership and employees.
- Impact: Lack of buy-in can result in resistance, low engagement, and poor implementation.
- Solution: Communicate the vision, involve leaders and employees in the visioning process, and
demonstrate the benefits of the vision to all stakeholders.
6. Innovation and Differentiation:
- Nature: Ensuring the vision drives innovation and differentiates the company in the market.
- Impact: Without innovation, the company may struggle to stand out and attract customers.
- Solution: Foster a culture of innovation, invest in R&D, and continuously seek ways to
differentiate products and services.
7. Measuring Success:
- Nature: Defining and tracking metrics to measure the success of the vision.
- Impact: Lack of clear metrics can make it difficult to assess progress and make informed
decisions.
 - Solution: Establish key performance indicators (KPIs), set benchmarks, and regularly review
performance against these metrics.
8. Sustainability and Long-Term Focus:
- Nature: Balancing short-term pressures with long-term vision.
- Impact: Short-term focus can undermine long-term sustainability and growth.
- Solution: Develop a balanced strategy that addresses immediate needs while keeping long-term
goals in perspective.
9. Cultural and Structural Barriers:
- Nature: Overcoming internal cultural and structural barriers to change.
- Impact: Organizational inertia can impede the adoption of the vision.
- Solution: Cultivate a change-friendly culture, streamline structures to support agility, and address
resistance proactively.
Addressing Challenges in Commercial Vision:
- Comprehensive Planning: Develop detailed plans that consider potential obstacles and mitigation
strategies.
- Stakeholder Engagement: Involve key stakeholders early and often to ensure alignment and support.
- Continuous Feedback: Implement mechanisms for regular feedback and adjustments.
- Balanced Focus: Maintain a balance between immediate operational needs and long-term strategic
goals.