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Chapter7
EnterpriseInfrastructure,Metrics,andBusinessContinuityPlanning:BuildingandSustainingtheDynamicEnterpriseCopyright?2010bytheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/IrwinSTUDENTLEARNINGOUTCOMESDescribehowaservice-orientedarchitecturecanbeusedasaphilosophicalapproachtohelptheorganizationofthefuture.Defineanddescribethevarioushardwareandsoftwareinfrastructureconsiderations.CompareandcontrastcommonlyusedmetricsforassessingthesuccessofITsystems.Describebusinesscontinuityplanning(BCP)anditsphases7-2STATEOFCALIFORNIADIGSITSELFOUTOFATECHNOLOGYHOLECalifornia’sGovernorArnoldSchwarzeneggerwantsthestateofbean“elite”informationtechnologyorganizationThat’sachallengingtaskforagovernmententityTeriTakai,thefirststatewideCIO,hasherworkcutoutforher7-3STATEOFCALIFORNIADIGSITSELFOUTOFATECHNOLOGYHOLEIntegrateITstrategiesacross144stateagenciesanddepartmentsBreakdowntraditionalsilosamongthosedepartmentsandagenciesReevaluatethestate’scurrentprojectlist,whichincludessomeprojectsthatwilltake10yearstocompletePlanningfortheretirementof50%(5,000)ofthestate’sITworkforce7-4STATEOFCALIFORNIADIGSITSELFOUTOFATECHNOLOGYHOLEWhatsortofcomputer-basedinteractionshaveyouhadwithyourlocal,county,orstategovernment?Inwhatway(s)didtechnologysupportorhinderthoseinteractions?Whydogovernmententitiesseemtolagbehindtheprivatesectorintheuseoftechnology?7-5CHAPTERORGANIZATIONIntroduction:SoALearningoutcome#1HardwareandSoftwareInfrastructureLearningoutcome#2ITSuccessMetricsLearningoutcome#3BusinessContinuityPlanningLearningOutcome#47-6INTRODUCTION:SoAIntroducedSoAinChapter6Service-orientedarchitecture(SoA)-perspectivethatfocusesonthedevelopment,use,andreuseofsmallself-containedblocksofcode(calledservices)tomeetallapplicationsoftwareneedsSoftwarecodeisnotdevelopedsolelyforasingleapplicationRatherservicesarebuiltthatcanbeusedandreusedacrossallapplications7-7INTRODUCTION:SoACanextendSoAtotheentireorganizationAnSoAorganizationwouldbe…LeanandagileusingresourcesinthebestwayProactiveinaddressingchangesinthemarketQuicktorespondandadapttoadvancesintechnologyTransformationalinitsprocesses,structureandHRinitiativestomatchachanginganddynamicworkforce7-8INTRODUCTION:SoASoAfocusedspecificallyonITCustomersEndusersSoftwaredevelopmentInformationneedsHardwarerequirements7-9INTRODUCTION:SoACustomersshouldbeableto“plugandplay”intoyourorganizationandhavethesamepleasurableexperienceregardlessofthechannel7-10INTRODUCTION:SoAEndusersshouldhaveaccesstowhateverinformationandsoftwaretheyneedregardlessofwherethey(theendusers)are7-11INTRODUCTION:SoASoftwaredevelopmentshouldfocusonreusablecomponents(services)toacceleratesystemsdevelopment.Thismeansusingcomponent-baseddevelopmentmethodologiesandtakingadvantageofexcitingWeb2.0applications.7-12INTRODUCTION:SoAInformationwouldbetreatedappropriatelyasavaluableorganizationalresource–protected,managed,organized,andmadeavailabletoeveryonewhoneedsit.7-13INTRODUCTION:SoAHardwareisbothintegratedandtransparent.7-14HARDWAREANDSOFTWAREINFRASTRUCTUREInfrastructure–thestructurebeneathastructureITinfrastructureistheimplementationofyourorganization’sarchitecture7-15ERPRevisitedFromChapter2,Enterpriseresourceplanning(ERP)system–collectionofintegratedsoftwareforbusinessmanagement,accounting,finance,supplychainmanagement,inventorymanagement,customerrelationshipmanagement,e-collaboration,etc.ERPisbigbusinessFederalgovernmentwillspend$7.7billiononERPin200960%ofFortune1000companieshaveERPsystems7-16ERPRevisitedDominantERPproviders–SAP,Oracle/PeopleSoft,SSAGlobal,andMicrosoftAbout50orsoestablishedemergingERPvendorsthatwillchallengethebig47-17ERPEvolutionMRP–1970s;focusonproductionplanning,calculatingtimerequirements,procurement;basicautomatedmanufacturingfocusMRPII–1980s;closedthelooptoincludefinancialandaccountingsystemsandserveasadecisionsupporttoolformanagers7-18ERPEvolutionERP–late1980s/early1990s;focusoncritical“timetomarket”;shorterleadtimes;customerswantitnowERPII–today;focusoncompleteERPintegrationwithCRM,businessintelligence,andahostofotherapplicationsacrosstheorganization7-19ERPandSoAForERPtointegrateeverything,everythingmustbeplug-and-playcomponentsorservicesAllmodulesofanERPvendormustbeinteroperableSoftwarefrommultipleERPvendorsmustbeinteroperableTheinfrastructurebeneathmustbehiddenfromusersandcustomers7-20ERPandSoA7-21SoA-EnabledERPAdvantagesReliableinformationaccessAvoidsdataandoperationsredundancyDeliveryandcycletimereductionCostreductionEasyadaptabilityImprovedscalabilityGlobaloutreachE-businesssupport7-22SoA-EnabledERPDisadvantagesTime-consumingExpensiveLackofconformityofmodulesVendordependenceToomanyfeaturesToomuchcomplexityQuestionablescalabilityNotenoughextendedERPcapability7-23SupportingNetworkInfrastructuresComputernetwork–fundamentalunderlyinginfrastructureforanyITenvironmentDecentralizedCentralizedDistributedClient/serverTiered7-24DecentralizedNetworkInfrastructureDecentralized–involveslittleornosharingofITandotherresourcessuchasinformationAlmostnonexistenttoday7-25CentralizedNetworkInfrastructureCentralized–sharinginformationsystemsinonecentralareaorononecentralmainframeLikedecentralized,almostnonexistenttoday7-26DistributedNetworkInfrastructureDistributed–distributingtheinformationandprocessingpowerofITsystemsviaanetworkFirsttruenetworkinfrastructureProcessingactivityisallocatedtothelocation(s)whereitcanmostefficientlybedone7-27DistributedNetworkInfrastructure7-28Client/ServerInfrastructureClient/serverinfrastructure(network)–oneormorecomputersthatareserverswhichprovideservicestoothercomputers,calledclientsServersandclientsworktogethertooptimizeprocessing,informationstorage,etcWhenyousurftheWeb,theunderlyingnetworkinfrastructureisclient/server7-29Client/ServerInfrastructure7-30TieredInfrastructureTiered(layer)–theITsystemispartitionedintotiers(layers)whereeachtierperformsaspecifictypeoffunctionality1-tier–singlemachine2-tier–basicclient/serverrelationship3-tier–client,applicationserver,dataordatabaseserverN-tier–scalable3-tierstructurewithmoreservers7-31TieredInfrastructure7-32CLOUDCOMPUTINGHottesttermintechnologytodayCloudcomputing–modelinwhichanyandallITresourcesaredeliveredasasetofservicesviatheInternetApplicationsoftwareProcessingpowerDatastorageBackupfacilitiesDevelopmenttoolsLiterallyeverything7-33CLOUDCOMPUTING7-34ManyImplementationsoftheCloudAllcalled???-as-a-service,or?aaSSaaS(software)–payforsoftwareonapay-per-usebasisHaaS(hardware)–payfortheuseofhardwareonapay-per-usebasisIaaS(infrastructure)–payfortheuseofinfrastructurecomponents(communicationsservers,networkservers,etc)onapay-perusebasisEaaS(everything)–payfortheuseofprewrittensoftwarecomponents7-35AdvantagesoftheCloudDeviceagnostic–useanyenduserdevicetoaccesswhatyouneedonthecloudUtilitycomputing–payforonlywhatyouuseinsteadofbuyingtechnologySimilartoutilitieslikeelectricityandwaterSimilartotakingataxiinsteadofbuyingacar7-36AdvantagesoftheCloudLowercapitalexpendituresLowerbarrierstoentryImmediateaccesstoabroadrangeofapplicationsoftwareReal-timescalability7-37ITSUCCESSMETRICSTojustifycostsoftechnology,youneedtomeasureitssuccessMetricsarealsocalledbenchmarks,baselinevaluesasystemseekstoattain.Benchmarking–processofcontinuouslymeasuringsystemresultsandcomparingthemtobenchmarks7-38Efficiency&EffectivenessMetricsEfficiency–doingsomethingrightIntheleasttimeAtthelowestcostWiththefewesterrorsEtcEffectiveness–doingtherightthingsGettingcustomerstobuywhentheyvisityoursiteAnsweringtherightquestionwiththerightanswerthefirsttimeEtc7-39Efficiency&EffectivenessMetricsBottom-lineinitiativestypicallyfocusonefficiency,whiletop-lineinitiativestendtofocusoneffectiveness.7-40TypesofITSuccessMetricsInfrastructure-centricmetricsWeb-centricmetricsCallcentermetricsFinancialmetrics7-41Infrastructure-CentricMetricsInfrastructure-centricmetric–measureofefficiency,speed,and/orcapacityoftechnologyThroughput–amountofinformationthatcanpassthroughasysteminagivenamountoftimeTransactionspeed–speedatwhichasystemcanprocessatransactionSystemavailability–measuredinverselyasdowntime,ortheaverageamountoftimeasystemisdownorunavailable7-42Infrastructure-CentricMetricsInfrastructure-centricmetric–measureofefficiency,speed,and/orcapacityoftechnologyAccuracy–measuredinverselyaserrorrate,orthenumberoferrorsperthousand/millionthatasystemgeneratesResponsetime–averagetimetorespondtoauser-generatedeventlikeamouseclickScalability–conceptualmetricrelatedtohowwellasystemcanbeadaptedtoincreaseddemands7-43Web-CentricMetricsWeb-centricmetric–measureofthesuccessofyourWebande-businessinitiativesUniquevisitors–#ofuniquevisitorstoasite(Nielsen/NetRatingsprimarymetric)Totalhits–numberofvisitstoasitePageexposures–averagepageexposurestoanindividualvisitorConversionrate-%ofpotentialcustomerswhovisityoursiteandwhoactuallybuysomething7-44Web-CentricMetricsWeb-centricmetric–measureofthesuccessofyourWebande-businessinitiativesClick-through-#ofpeoplewhoclickonanadandaretakentoanothersiteCost-per-thousand–salesdollarsgeneratedperdollarofadvertisingAbandonedregistrations-#whostarttoregisteratyoursiteandthenabandontheprocessAbandonedshoppingcarts-#whocreateashoppingcartandthenabandonit7-45CallCenterMetricsCallcentermetric–measuresthesuccessofcallcentereffortsAbandonrate-%numberofcallerswhohangupwhilewaitingfortheircalltobeansweredAveragespeedtoanswer(ASA)–averagetime,usuallyinseconds,thatittakesforacalltobeansweredbyanactualperson7-46CallCenterMetricsCallcentermetric–measuresthesuccessofcallcentereffortsTimeservicefactor(TSF)-%ofcallsansweredwithinaspecifictimeframe,suchas30or90secondsFirstcallresolution(FCR)-%ofcallsthatcanberesolvedwithouthavingtocallback7-47FinancialMetricsUltimately,anITsystemmustmakefinancialsenseFinancialmetricsarealsocalledcapitalanalysisfinancialmodelsManyandvariedYouwilllearntheseandtheirapplicationsinotherclasses7-48FinancialMetrics7-49ITMetricsandServiceLevelAgreementsServicelevelagreement(SLA)–formal,contractuallyobligatedagreementbetween2partiesSLAsmustincludeITsuccessmetricsSLAsarebetweenyourorganizationandoutsourcingorganizationsSLAsdefinehowyouwillmeasuretheoutsourcingorganization’seffortsThesemeasuresareinservicelevelspecifications(SLS)orservicelevelobjectives(SLO)7-50ITMetricsandServiceLevelAgreementsSLAsarealsobetweenyourorganizationandanapplicationserviceproviderApplicationserviceprovider(ASP)–suppliessoftwareapplications(andrelatedservices)overtheInternetthatwouldotherwiseresideoncustomers’computersIfyouengageanASP,youwoulddosowithanSLA7-51BUSINESSCONTINUITYPLANNINGBusinesscontinuityplanning(BCP)–rigorousandwell-informedorganizationalmethodologyfordevelopingabusinesscontinuityplan,astep-by-stepguidelinedefininghowtheorganizationwillrecoverfromadisasterorextendeddisruptionBCPisverynecessarytodaygiventerrorthreats,increasedclimatevolatility,etc7-52BUSINESSCONTINUITYPLANNINGMETHODOLOGY7-53BCPMETHODOLOGYOrganizationalstrategicplanAnalysisDesignImplementationTestingMaintenance7-54OrganizationalStrategicPlanItallstartshereThestrategicplandefineswhatisandwhatisnotimportantYoumusthaveabusinesscontinuityplanforwhatisimportant7-55AnalysisImpactanalysis–riskassessment,evaluatingITassets,theirimportance,andsusceptibilitytothreatThreatanalysis
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