Managing and using information systems a strategic approach 6th edition pearlson solutions manual

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Chapter 6: Architecture and Infrastructure Overview This chapter focuses on how organizations move from strategy (vision) to architecture (design) to infrastructure (implementation of design). This is a good chapter in which to include discussions of hardware, software, and network technologies that make up the infrastructure of an organization. That includes the latest architectural trends (mainframe, client/server, peer-topeer, wireless, etc.), business communications trends (broadband, ISDN, DSL, etc.), and information management trends (data warehousing, database management, web services such as Web 2.0, etc). This should be supplemented appropriately based on the instructor's and the student's interests and background. Consult the instructor’s community site for current technologies and trends.

Discussion Opener: In the slides, questions are furnished about the Mohawk opening case, as well as answers in the notes section of the first slide.

Alternate Discussion Opener: What are some of the challenges companies face when they implement large, complex information systems, such as ERP systems? Summarize actions managers can take to mitigate the effects of end user resistance.

Key Points in Chapter Most students believe they need a thorough understanding of technologies to understand how their businesses can prosper with information systems. They are both right and wrong. A basic, fundamental understanding of technologies is necessary; but a detailed, technical understanding of all technologies is not only unnecessary but a fruitless exercise. Any technology covered in a course today will most likely be out of date by graduation time. Therefore it is the point of view of this book, and this chapter in particular, to offer a very basic framework for understanding technologies and for learning how to manage them. It is envisioned that students will use the basic framework, but in any specific situation, they will need to deeply study the specific technology they intend to use.

The beginning of this chapter describes Mohawk paper’s transformation of their business due to opportunities presented by a major bankruptcy in the envelope industry. Mohawk was able to make use of business partners to assist in their adaptation of particular product lines, on the road to insourcing each product line.

This chapter focuses on architecture and infrastructure using comparisons to a structural architecture approach. First, there is a vision of what should be built. This equates to the strategy.

Then, the architect develops plans based on the vision. The plans provide guidance and direction for others involved in building the system (or building). The architecture is the blueprint which

translates the business strategy into a workable plan. The infrastructure includes the physical components which, once assembled, execute the plan.

The large number of IT choices available, coupled with the fast pace of technology changes, makes it nearly impossible to build the perfect architecture. But managers must, nevertheless, make decisions in this environment. The first step is translating strategy into architecture, and the second is to translate architecture into infrastructure. Strategy drives a number of business goals.

The goals, in turn, drive business requirements, which drive architectural requirements. The architecture drives a number of functional specifications, which drive decisions about hardware, software, networks, and data. Essentially, the process model begins with an abstract concept and finishes with tangible elements that satisfy the original vision.

A simple framework is presented for use by managers who seek to understand both what a current information system looks like, and what questions to ask in order to build a new one.

The framework is shown in the table below (this is a simplified version of the Figure 6.3 in the textbook).

Component Hardware Software Network Data

What

Who

Where

This framework is most useful when applied to both architectural and infrastructure decisions.

Figure 6.4 describes common architectures, and software-defined architecture is new to this edition. This new concept is still emerging and new cases and examples are likely to be found in the future.

The concept “Bring Your Own Device” is described. This topic can be used to engage students in a friendly debate on the pros (e.g. transfer the cost of the device to the employee, familiarity using a personal device, less training required) and cons (e.g. security, lack of standardization, maintenance headaches for IT staff) of a BYOD corporate policy.

Consumerization of IT is also discussed. This involves creating mobile applications for employee and customer convenience. The expectation is that you will provide an online “app” for most software functionality that is web-enabled.

Enterprise Architecture includes four key components: core business processes, shared data (e.g. centralized repository or data warehouse), linking and automation technologies, and customer groups. Information from experts Ross, Weill and Robertson from their book “Enterprise Architecture as a Strategy” (2006) is the main source of information for this section.

Enterprise Architecture is important to highlight as many companies have embraced enterprise systems (SAP, Peoplesoft/Oracle, etc.). A good discussion point for this section may be to discuss the challenges of implementing such a framework, particularly within a global organization, or use the GiantCo.com case (later in the chapter).

Virtualization and cloud computing are two concepts that move computing requirements to third party vendors, transferring the responsibilities and maintenance from the corporate IT group to a separate entity. Core components that are typically offloaded to vendors are servers, storage, backup, network, and disaster recovery.

Other managerial considerations when designing and implementing an appropriate information system are explored. The first is to understand existing architecture, which allows the manager to evaluate the requirements of an evolving business strategy in terms of current IT capacity and capability. Second, there is the issue of strategic timeframe. By the time an IT decision is made, the technology is often already out of date. The architecture must take into account technological advances and have the capability to adapt as technologies evolve. Third, technical issues including adaptability, scalability, standardization, maintainability, and security are introduced. It is important to focus on the security portion of this discussion since that is a tremendous risk for organizations and must be carefully and properly planned. Fourth, financial justifications for IT investments are difficult, if not impossible, to calculate since they include both tangible and intangible costs. Payback calculations in the form of increased productivity, increased interoperability, improved service, and others are often considered "soft numbers."

(Financial issues are discussed in greater detail in Chapter 8: The Business of IT.) This chapter takes students through a simple case, GiantCo.com, to illustrate how to go from strategy to infrastructure, using the framework and questions posed in the chapter. Figure 6.7 provides an example of the managerial considerations using the GiantCo.com case.

Social Business Lens: Building Social-Mobile Applications – Given the ubiquitous usage of mobile communications devices, social mobile applications are becoming an expectation by this population. The widespread adoption of smartphones is changing digital communications in general. Corporations must respond to this demand.

Illustrative Answers to Discussion Questions 1. Think about a company you know well. What would be an example of IT architecture at that company? An example of the IT infrastructure?

Ans: This is an open-ended question, asking students to draw upon their personal experiences.

An answer would include a description of the architecture as distinct from the infrastructure, and the advanced student might even start with a strategic business goal and show how it was translated into both an architectural goal and an infrastructure. Others might use the matrix framework from the chapter to describe the architecture or infrastructure. Architectural goals might be used to build an information system that efficiently connects employees, customers, and vendors, and supplies them with information they need at the time they need it. The infrastructure that supports that architectural goal might be an intranet connecting personal computers in every office, supporting software, and a centralized data warehouse with the data available.

2. What, in your opinion, is the difference between a decentralized architecture and a centralized architecture? What is an example of a business decision that would be affected by the choice of the architecture?

Ans: This is a more difficult question for a non-IT manager. Decentralized architecture (previously referred to as client/server architecture) would be one where the personal computers (e.g. laptops or desktops) and the network itself contain intelligence, store data, and perform localized processing. In comparison, a centralized architecture (previously called mainframe architecture) is one where the majority, if not all, of the data storage and processing functions are performed by the server. In a centralized architecture, the local systems simply "connect" to the server and the server does all the work. An example of a business decision that might be affected is the decision to open up the company's systems to customers. If the architecture is centralized, the customers need only connect to the server. If the system is decentralized, the customers need to be added as separate and independent nodes on the network. Security concerns differ for both architectures, based on where the data is stored and where the processing is performed. For example, centralized architectures would need protection against problems that might bring down the whole system. Decentralized architectures would need protection from corrupting the data and software that might be stored on the local PCs. 3. From your personal experience, what is an example of software as a service? Of BYOD? Ans: Students will offer a variety of answers from their personal experiences. Google Docs is a useful starting point for classroom discussion. The software is maintained by the vendor, not installed on the personal device. The local (or client) device uses the applications through an Internet connection, making the software universally available and accessible, as long as the user is online.

BYOD is a hot topic being discussed by managers, without a clear consensus on the outcome.

Students should critically assess the benefits and risks associated with a BYOD corporate policy.

For example, the benefits might include employee familiarity with the devices, transferring the cost of the device to the employee, and less training required by the employer. Risks might include network security, lack of standardization and compatibility across the network, and maintenance headaches for IT staff trying to troubleshoot a large variety of device malfunctions.

Finally, a clear and comprehensive BYOD corporate policy would be required in order to protect the company from liability with employees and customers.

4. Each of the following companies would benefit from software-defined architecture or conventional, owned hardware and software. State which you would advise each of the following fictitious firms (plus the IRS) to adopt and explain why. a. StableCo is a firm that sells industrial paper shredders. Its business has remained steady for two decades and it has a strong and diverse customer base.

Ans: Stableco could benefit from a conventional approach, as they do not suffer from dynamic changes. They are also not dependent on one or two customers. If they intend to move into new markets, however, they might need to adapt to a software-defined architecture.

b. DynamicCo is a fast-growing six-year old firm that has relied on three to five key wholesale customers for its entire existence. However, the list of key customers changes every year, and during two of the years, sales declined sharply.

Ans: DynamicCo requires agility and could benefit from software-defined architecture.

Their needs change often, and they are dependent on a small number of customers that change often as well. c. Plastics3000 is an old, stable plastics manufacturing firm that has kept its sales steady in the face of competitors as the result of an active research and development team that uses advanced software to analyze large amounts of data to develop new compounds. Once or twice a week, office personnel complain of the network becoming very slow.

Ans: Plastics3000 sometimes requires R&D to have more capacity and a softwaredefined network would be very useful in allocating capacity when necessary. d. A downtown Las Vegas casino monitors each slot machine continuously for early detection of malfunctions such as winnings or losses trending beyond their threshold limits.

Ans: The casino is likely to need only small amounts of data communication for performing the monitoring. A small amount of telecommunications bandwidth would likely be adequate, and there would be little gain from “borrowing” from it. e. CallPerfect provides call center services to pharmacies. Phone calls are routed to the company after hours and messages are delivered to the pharmacy manager the next morning.

If the call center’s bandwidth needs are high during the day but needs are low overnight, a software-defined architecture would make sense. f. At the IRS, tax forms are available online for citizens to complete and file with the IRS electronically by April 15. A call center routes calls to agents who answer taxpayers’ questions.

Because the website takes care of high-bandwidth needs (complex and graphical forms), the greatest concern is the call center. Like CallPerfect in (e) above, if the call center’s needs for bandwidth are high during the day, a software-defined architecture would be quite appropriate. g. At LittlePeople, Inc., a day care center, parents are called using software on the administrator’s computer when there is a weather emergency. The school has averaged 120 families for many years.

Because the day care center has only intermittent needs to use a relatively small number of regular telephone calls, a conventional architecture would save money and complexity without missed opportunities.

Further Discussion Questions 1. The use of mobile technologies in the workplace has the potential to provide advantage to the organization. When thinking of mobile computing and communication devices such as a smartphone, how does this affect the complex interplay between choices of IT infrastructure, architecture, and software?

2. To supplement this chapter in a classroom setting, students can be asked to research and report on a current technology. The reporting can take place in a number of ways: students can prepare a written report (I suggest making it 5 pages or less, since writing less is much more difficult than writing more); students can prepare a 1-2 page briefing (which they can copy or post on a web site for their classmates); students can deliver a presentation on the topic and distribute a one-page “take away” summary; or students can be charged with teaching the topic to classmates (which, in my class, meant anything but a PowerPoint-type presentation; it had to be fun, entertaining, and teach something specific about their chosen topic).

4. Corporations are making the assumption that everyone uses a smartphone. For example, QR (Quick Response) codes can be found in magazines, on posters, and on brochures for all sorts of products. How does this perpetuate the negative outcomes created by the “Digital Divide”? What can companies do to change this perception of alienating a sub-population of their customer base?

Cases Case Study 6-1: Enterprise Architecture at American Express This case covers American Express’s use of enterprise architecture to provide a framework to unite IT and business strategies. Individual units use a common set of road maps to develop and build architecture and governance processes.

1. What are the key components of the architecture American Express has created?

Ans: The key components presented in the case focus on reference architectures and road maps.

Using a standardized language and initiatives, the company is able to create applications that work on a common platform.

2. Why was it important to standardize so much of the architecture? What are the advantages and disadvantages of a standard EA for American Express?

Ans: American Express was determined to maintain a common architecture to improve efficiency. The advantages include easier maintenance for the IT staff, common language and general understanding for American Express employees, and a consistent interface for customers. The disadvantages will focus on the requirement for units to comply with the standardized architecture. This might require significant changes and modifications, leading to

some initial confusion. There might be resistance from individuals less convinced of the importance of developing a common architecture.

3. Describe how the new architecture supports the goals and strategy of American Express.

Ans: The corporate goals are to align IT and the business strategy. This includes a consistent customer experience and the ability to evolve as the industry changes. The enterprise architecture will facilitate the presentation of new products and services that come along. This structure will permit the company to grow and change as necessary.

4. What types of future payment products and services should be anticipated and prepared for by the EA group? What is your vision of how payments might work? If you were advising the CIO of American Express, what would you suggest his group prepare for?

Ans: With the consumerization of applications, customers will expect to be able to make mobile payments, check their accounts using their smartphones, and use American Express services at any time. Smartphone apps will need to include scanner features to deposit checks. Customers will expect to be able to reconcile problems with their accounts without having to interact with a human service agent. Electronic signatures will be the norm, allowing for real-time processing of transactions. American Express will have to continue to innovate. Maintaining a continuous dialogue with customers and listening to their feedback will allow the company to respond quickly to new demands. This feedback can also be obtained through social networking outlets.

Case Study 6-2: The Case of Extreme Scientists This case discusses the use of cloud computing to analyze large, complex data sets. No longer will individuals require expensive, proprietary technologies to perform intensive calculations.

These functions can be performed relatively cheaply, requiring users to only pay for the capacity required.

Sample answers to discussion questions: 1. How would you describe the architecture Dr. Schadt uses to do his research?

Ans: The architecture used by Dr. Schadt is a service-oriented architecture (SOA). Amazon.com is a web-enabled service that the scientist can access using an Internet connection.

2. What are the risks Dr. Schadt faces by using Amazon for his supercomputing? What are the benefits?

Ans: The risks would include security, reliability, and scalability. Dr. Schadt must rely on the third party vendor to ensure that any sensitive data is adequately and reasonably protected from unauthorized access. Users are dependent on the vendor for 24/7 reliability as part of the contractual agreement. Dr. Schadt is also counting on Amazon to ensure that the capacity is available, even if his needs increase dramatically. In each case, the end-users must trust that the

vendor will meet their needs. The benefits are that Dr. Schadt can use an advanced analytical system to process his data while not having to maintain that system himself. He pays a relatively minimal cost for only the services he uses, without having the expense of hardware, software, network, and IT staff to ensure the operation of the system. This meets the user’s needs while shifting the burden of responsibility to the vendor.

3. If you were advising a company trying to make a decision about using cloud computing for key business applications, what would you advise and why?

Ans: My advice would be to research carefully before signing any contracts. The company needs to be confident that the vendor is reliable and that the data will be secure. A mutually acceptable fee structure would be negotiated, as well as intentions for the vendor to maintain current technologies. It would be unacceptable for the vendor to allow the technologies to lapse, ignoring any relevant innovations that enter the market. I would consult other clients to determine their satisfaction with the vendor, and assess the stability of the firm. I would also prefer a vendor that is somewhat familiar with the needs of companies in our industry.

Supplemental Readings: Other Cases: Saab mini-case (now available at https://books.google.com/books?id=gQkAAAAAMBAJ&pg=PA34&lpg=PA34&dq=cio+magaz ine+saab&source=bl&ots=aCcIDYW8i8&sig=Lh4rITasF1IHNSGS5bM6JURA2Bs&hl=en&sa= X&ved=0ahUKEwjQloyggbLJAhXMND4KHbdwA3UQ6AEIOTAG#v=onepage&q=cio%20m agazine%20saab&f=false). The case is described in more detail at the source. It shows how Saab’s vision is embodied in its infrastructure. They were able to facilitate dealer access to corporate information to improve the timeliness of the information and to consolidate the information about vehicles, customers, warranties, sales, and service that is accurate to the xxx% level. These requirements were then translated into infrastructure: this IRIS system is written in Java using IBM DB2 running on the IBM AS/400. Lotus Domino is the middleware that mediates between the legacy system and the front-end Web interface.

Cisco Systems Architecture: ERP and Web-Enabled IT by Nolan, R.L., Harvard Business School, 301099, 23 pages, 2005 (setting: California) This case discusses Cisco’s replacement of legacy back-office systems with its strategic I-Net. This includes the ERP implementation and connecting with customers over the Internet. Students will gain an appreciation of the complexity of implementing an ERP system.

Mercedes-Benz India by Chandrasekhar, R., Haggerty, N., and Venkatagiri, S., Richard Ivey School of Business, W11084, 13 pages, (setting: India) While relocating a manufacturing facility to India, the company’s CIO must decide on the appropriate architecture, IT infrastructure, and IT skills necessary to support the new plant.

Students will be required to consider various tradeoffs as they make managerial decisions. The international setting will also help students to appreciate the added complexity of global operations.

Offshoring at EDC by H.W. Lane & D.T.A. Wesley; Richard Ivey School of Business Education Development Center (EDC), a non-governmental organization, is an example of offshoring best practice and will help identify factors for successful implementation of an outsourcing project.

Up In Smoke: Rebuilding After an IT Disaster by S. C. Ross, C. K. Tyran, D. J. Auer Idea Group Publishing, 2005 (18 pages) This case discusses the issues faced by the college as they resumed operations and planned for rebuilding their information technology operations. The almost-total destruction of the college's server assets offered a unique opportunity to rethink the IT architecture for the college.

End-User System Development: Lessons from a Case Study of IT Usage, by M. E. Jennex; Idea Group Publishing; 2005; (14 pages) This case looks at a study of end-user computing within the engineering organizations of an electric utility undergoing deregulation. The case was initiated when management perceived that too much engineering time was spent doing IS functions.

Power Conflict, Commitment & the Development of Sales & Marketing IS/IT Infrastructures at Digital Devices, Inc., T. Butler; Idea Group Publishing. 2005; (18 pages) The case reports on the web of individual, group and institutional commitments and influences on the IS development and implementation processes in an organizational culture that promoted and supported user-led development.

Prudential Chamberlain Stiehl: The Evolution of an IT Architecture for a Residential Real Estate Firm, A. Borchers and B. Mills, Idea Publishing Group, 16 pages, IT5622, (setting: U.S.) This case describes the evolution of an IT architecture for Prudential Chamberlain Stiehl Realtors (PCSR), a 14 office, 250 sales agent real estate firm located in Southeast Michigan.

Information Systems Development and Business Fit in Dynamic Environments, P. Kanellis, P. Papadopoulou, and D. Martakos, Idea Publishing Group, 12 pages, IT5669 This case describes the effects of privatization on a large industrial organization and sets the context for illustrating the vulnerability of information systems in turbulent environments. The case presents a detailed chronology of the events that lead to an increased awareness of the importance of information systems flexibility. The case examines the difficulties faced by an organization when its information systems were incapable of dealing with frantic changes in environmental contingencies.

Nation-Wide ICT Infrastructure Introduction and Its Leverage for Overall Development, P. Pale and J. Gojsi, Idea Publishing Group, 24 pages, IT5690 This case describes a ten-year effort of creating an information and communications technology infrastructure in Croatia. Although initially an independent agency, five years after it began operation, the Croatian Academic and Research Network – CARNet—had been transformed into a government agency. The case explores the question of whether or not CARNet has truly been successful and seeks to answer the question of whether the initial goals have been realistic and achievements sufficient, considering the low penetration of ICT into the Croatian society.

Outrigger Hotels and Resorts: A Case Study, Gabe Piccoli, 2005, Communications of AIS, Volume 15, Article 5 This case describes the history, strategy, and current information systems infrastructure of a midsize, privately owned hospitality firm. The case is designed to provide the substantial background information needed to engage successfully in setting a direction for IS resources and their use at Outrigger Hotels and Resorts headquartered in Hawaii.

Supplemental Readings/Articles Stamas, Paul J., Michelle L. Kaarst-Brown, and Scott A. Bernard. "The Business Transformation Payoffs of Cloud Services at Mohawk." MIS Quarterly Executive 13.4 (2014).

Grisot, Miria, Ole Hanseth, and Anne Asmyr Thorseng. "Innovation of, in, on infrastructures: articulating the role of architecture in information infrastructure evolution." Journal of the Association for Information Systems 15.4 (2014): 197-219.

McAfee, A. “What Every CEO Needs to Know About the Cloud,” Harvard Business Review R1111J, November, 2011.

This article provides a general discussion of the anticipated benefits of cloud computing. It also includes a discussion of the challenges associated with the conversion to cloud computing, and the resources necessary to facilitate a smooth transition.

Apgar, M. & Keane, J.M. “New Business with the New Military,” Harvard Business Review. 82(2). 2004.

Virtually all aspects of the military are changing to ensure that it can fight unpredictable threats while sustaining the infrastructure needed to support and train forces. The military is turning to nontraditional business partners to meet a wide range of needs, from health care to housing to information technology.

Kane, K. “Leveraging the New IT Infrastructure for Strategic Agility,” Balanced Scorecard Report. Harvard Business School Publishing, 2003 (5 pages).

In most companies, IT infrastructure is built in an ad hoc, piecemeal manner, with heavy investments made on a project or operational basis--and little forethought given to how it must support the enterprise's evolving strategy. IT infrastructure along with thoughtful, deliberate decision-making made jointly by business and IT leaders delivers the strategic agility organizations need in a rapidly changing world.

Managing Your 'Ecosystem', William M. Ulrich, Computerworld, (January 22, 2001) Component-based frameworks for E-commerce, Peter Fingar, Communications of the ACM Volume 43, No. 10 (Oct. 2000). Pages 61 - 67.

Personalized communication networks, Doug Riecken, Communications of the ACM Volume 43, No. 8 (Aug. 2000). Pages 41 - 42.

Capturing human intelligence in the net, Paul B. Kantor, Endre Boros, Benjamin Melamed, Vladimir Meñkov, Bracha Shapira and David J. Neu. Communications of the ACM Volume 43, No. 8 (Aug. 2000). Pages 112 - 115.

New I/O architecture draws strong backers, Nancy Weil, Computerworld, (January 08, 1999).

See also the companion article on this architecture at: I/O Rivals Declare Truce, Plan New Architecture, Stacy Collett, Computerworld, (September 06, 1999).

Schwab simplifies Web trade architecture, Carol Sliwa, Computerworld, (February 22, 1999).

Architecture's promise of better performance will take a while, April Jacobs, Computerworld, (April 27, 1998).

Books NOTE: There are many books written about IT architecture and infrastructures, ranging from very technical to highly managerial. Interested faculty and students should visit local bookstores and/or online bookstores for the most current titles. Below is just a sampling.

McGovern, J. The Practical Guide to Enterprise Architecture. NY: Prentice Hall, 2003.

Wiell, P. and Marianne Broadbent Leveraging the New Infrastructure: How Market Leaders Capitalize on Information Technology. MA: HBS Publishing, 1998.

Cook, M. Building Enterprise Information Architecture: Reengineering Information Systems.

Prentice Hall, 1996.

Fitzgerald, Jerry, and Alan Dennis. Business Data Communications and Networking. John Wiley, 1996.

Keen, Peter G.W. & Cummins, J. Michael. Networks in Action: Business Choices and Telecommunications Decisions. Belmont, CA; Wadsworth, 1994.

Rowe, Stanford H., Telecommunications for Managers. 3rd. ed., Prentice Hall, 1995.

Stallings, William, & Van Slyke, Richard. Business Data Communications. 2nd. ed., Macmillan, New York, 1994.

Stallings, William. Data and Computer Communication. MacMillan, 1993.

Websites www.techweb.com/encyclopedia TechWeb's TechEncyclopedia offers definitions and links for more than 20000 information technology terms.

A dictionary of more than 1,000 terms is available at http://www.consp.com/it-informationtechnology-terminology-dictionary A glossary of thousands of technology definitions can be found at http://whatis.techtarget.com/

News Sept 25, 2015: Fortune says there is mounting evidence that we have a "multi-cloud" world.

Have students read the article at http://fortune.com/2015/09/25/multi-cloud-management/ and ask them the following: (1) Why would a firm use multiple clouds? (2) Are many vendors supporting multi-cloud environments? (3) What are "bare metal" implementations? What is an advantage and a disadvantage of "bare metal" applications?

January 29, 2015: Microsoft has released Office for Tablets, which can have powerful implications on infrastructure decisions. Have students read the article at http://www.informationweek.com/mobile/mobile-applications/microsoft-office-arrives-onandroid-tablets-/d/d-id/1318861?itc=edit_in_body_cro and ask them to think of a situation in which a firm would provide Android tablets to managers who travel quite a bit. Ask them the following: (1) Would the absence or presence of Office on tablet platform affect the decision?

(2) Given the roll-out, how would a tablet now be more attractive than a thin laptop for the travelers? (3) Would the pricing model have an impact on the screen size that you would choose to provide to the travelers? (4) What infrastructure decision would you make in the area of soft

keyboards versus keyboard cases with real keys? Would keyboard size enter into your decisionmaking?