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Title: MANAGEMENT INFORMATION SYSTEMS (MIS) LECTURE NOTES 5 ENTERPRISE SOFTWARE APPLICATIONS AND INTEGRATION Spring 2010


1
MANAGEMENT INFORMATION SYSTEMS
(MIS)LECTURE NOTES 5 ENTERPRISE
SOFTWARE APPLICATIONS AND INTEGRATION
Spring 2010
2
  • EVOLUATION OF IT INFRASTRUCTURE
  • The figure below illustrates the typical
    Computing configurations characterized
  • by each of the five eras of IT Infrastructure
    evolution.

3
  • ENTERPRISE INTERNET COMPUTING ERA
  • The success of the Client/Server Model posed a
    lot of problems. Many large firms found
    it difficult to integrate Corporate Computing
    Environment.
  • In late 1990s, firms turned to Networking
    standards and Software tools that could
    integrate disparate Networks and Applications
    throughout the firm into an Enterprise -
    wide Infrastructure using TCP/IP Networking
    Standards to tie their networks together.
  • The resulting Infrastructure linked different
    pieces of Computer Hardware and smaller
    networks into an Enterprise-wide network so
    that information can flow freely across the firm
    and between the firm and other firms.
  • The Enterprise Infrastructure also requires
    Software such as
  • Enterprise Application Integration Software, and
    Web Services, to link disparate Applications in
    order to enable data flow freely among different
    parts of the organization.

4
  • ENTERPRISE INTERNET COMPUTING ERA
  • The Enterprise Era promises to bring about a
    truly Integrated Computing and IT Services
    Platform for the Management of Global
    Enterprises.
  • The ultimate aim is to deliver critical business
    information painlessly and seamlessly to
    Decision Makers when and where they need it to
    create Customer value.

5
  • IT INFRASTRUCTURE COMPONENTS
  • IT Infrastructure today is composed of seven
    Major Components Category .
  • The figure below illustrates the Seven Components
    and the Major Vendors / Suppliers for each
    component.
  • These 7 IT Components must be coordinated to
    provide the firm with a coherent IT
    Infrastructure.

6
  • HARDWARE PLATFORMS TRENDS AND EMERGING
    TECHNOLOGIES
  • Although the cost of Computing has fallen
    exponentially, the cost of the IT Infrastructure
    has actually expanded as a percentage of
    corporate Budgets.
  • Because the costs of Computing services such as
    Consulting, Systems Integration and Software
    are still high, and the intensity of Computing
    and Communicating has increased as other costs
    have declined.
  • Firms also face a number of other challenges.
    They need to integrate information stored in
    different Applications, and on different
    Platforms (Legacy Systems, Intranet,
    Internet sites, Desktop, Mobile devices)
  • Firms also need to build resilient
    infrastructure that can withstand huge
    increases in Peak-loads and routine assaults from
    hackers and viruses while conserving
    electrical power.
  • Because Customer and Employee expectations for
    service are increasing, firms need to
    increase their service levels to meet customer
  • Demand.
  • The Trends in Hardware and Software Platforms
    address all of these challenges.

7
  • THE INTEGRATION OF COMPUTING AND
    TELECOMMUNICATIONS PLATFORMS
  • The most dominant theme in Hardware Platforms
    today is the Convergence of
    Telecommunications and Computing Platforms to the
    point where, increasingly Computing takes place
    over the network.
  • Convergence at Client Level
  • Communication devices such as Cell phones are
    taken on functions of Handheld Computers, whereas
    Hand held Computers (PDAs) are taken on Cell
    Phone functions.
  • Convergence at the Server and Network level
  • Is the growing success of Internet Telephone
    Systems demonstrates how historically separate
    Telecommunications and Computing platforms are
    converging towards a single network - the
    Internet.

8
  • THE INTEGRATION OF COMPUTING AND
    TELECOMMUNICATIONS PLATFORMS
  • One major trend in Hardware Platforms are
    based on Computing over
  • High-capacity Networks.
  • The Network in many respects is becoming the
    source of Computing power, enabling
    business firms to expand their Computing power
    greatly at very little cost.

9
  • INTEGRATION OF COMPUTING AND TELECOMMUNICATIONS
    PLATFORMS
  • GRID COMPUTING
  • Grid Computing involves connecting geographically
    remote Computers into
  • a single Network to create Virtual
    Supercomputer by combining the computational
    power of all Computers on the grid.
  • Grid Computing concept is based on the
    assumption that most Computers use their
    CPU on average 25 of for the work they have been
    assigned, and thus leaves 75 idle CPU
    resources available for other processing tasks.
  • Grid Computing was impossible until High Speed
    Internet Connections enabled firm to connect
    remote Computers economically and move enormous
    quantities of data over the network.
  • Grid Computing requires Software Programs such
    as Open-source Software provided by
    Globos Alliance or private providers to allocate
    and control CPU resources on the Grid.

10
  • THE INTEGRATION OF COMPUTING AND
    TELECOMMUNICATIONS PLATFORMS
  • GRID COMPUTING
  • The Server Software breaks Data, and
    Application Ptrogram Codes into chunks that
    are then parcelled out to the Grid Machines.
  • The Client Machines can perform their
    traditional tasks while running
    Applications in the background.
  • THE ADVANTAGES OF GRID MACHINE
  • Cost saving,
  • Speed of Computation
  • Agility.
  • Example Royal Dutch/ Shell Group uses a
    scalable Grid Computing
    Platform that improves the accuracy and speed of
    its Scientific Modelling
    Applications to find the best oil reserves.
  • The Grid Platform links 1024 IBM Servers
    running under Linux, in effect creating one of
    the largest commercial Linux Supercomputers in
    the world.

11

THE INTEGRATION OF COMPUTING AND
TELECOMMUNICATIONS PLATFORMS ON-DEMAND COMPUTING
(UTILITY COMPUTING) Refers to firms
Off-loading Peak Demand for Computing power
to remote , large scale Data Processing
Centres. Firms can reduce their investment in IT
Infrastructure, in this manner, by investing just
enough to handle Average Processing Loads and
paying for only as much additional Computing
power based on their usage as the market
demands. Hardware Manufacturers such as IBM,
HP, ORACLE and Sun Microsystems all offer Utility
Computing Services on demand.
12
  • THE INTEGRATION OF COMPUTING AND
    TELECOMMUNICATIONS PLATFORMS
  • ON-DEMAND COMPUTING (UTILITY COMPUTING)
  • On-demand Computing has some benefits such as
  • It lowers the cost of owning Hardware
    resources,
  • Gives firms greater agility to use
    technology,
  • Greatly reduces the risk of over-investing
    in IT Infrastructure.
  • Shifts firms from having a fixed
    Infrastructure capacity towards a highly
    flexible infrastructure (some of it owned by firm
    and some of it rented from giant
    Computer centres owned by Computer Hardware
    manufacturers.)

13
  • THE INTEGRATION OF COMPUTING AND
    TELECOMMUNICATIONS PLATFORMS
  • AUTONOMIC COMPUTING AND EDGE COMPUTING
  • It is estimated that 30 - 50 of a firms total
    IT Budget spent on preventing or recovering from
    System crashes.
  • About 40 of these crashes caused by Operator
    errors. The reason for crash is not because
    Operators are not well trained or do not have the
    right capabilities. Rather, it is because the
    complexity of todays Computer Systems make them
    too difficult to understand, and IT Operators and
    Managers are under pressure to make decisions
    about problems in seconds.
  • One approach to dealing with this problem is to
    employ Autonomic Computing.
  • Autonomic Computing is an industry-wide effort to
    develop Computer Systems that can configure
    themselves, optimize and tune themselves, heal
    themselves when broken, and protect themselves
    from outside intruders and self-destruction.
  • A few of Autonomic Computing capabilities are
    present in Desktop Operating Systems.
    e.g. Virus and Firewall Protection Software can
    detect viruses on PCs, automatically defeat
    the viruses, and alert operators.

14
  • THE INTEGRATION OF COMPUTING AND
    TELECOMMUNICATIONS PLATFORMS
  • EDGE COMPUTING
  • It is a Multitier, Load-balancing Scheme for
    Web-based Applications, in which significant
    parts of Web Site Content (data) , Logic and
    Processing are performed by smaller, less
    expensive Servers located nearby the User in
    order to increase response time and resilience
    while lowering technology costs.
  • Edge Computing is another technique like Grid
    Computing and On-demand Computing for using
    the Internet to share the workload experienced by
    a firm across many Computers located
    remotely on the network.

15
  • EDGE COMPUTING
  • Edge Computing involves the use of Internet to
    balance the processing load of Enterprise
    Platforms across the Client and Edge Computing
    Platform
  • In an Edge Computing Platform, Application
    requests from the User/Client Computer are
    initially processed by the Edge Servers .
  • Presentation components such as Static Web page
    content, Reusable Code fragments, and
    Interactive elements gathered on forms are
    delivered by the Edge Server to the Client.
  • Database and Business Logic elements are
    delivered by the Enterprise Computing
    Platform.

16
  • EDGE COMPUTING
  • There are three tiers in Edge Computing
  • - The Local Client
  • - Edge Computing Platform (Server
    positioned at any Internet service Providers)
  • - Enterprise Computers (Located at the
    firm's main Data canter.
  • The Edge Computing Platform is owned
    by an Internet Service provider.

17
  • VIRTUALISATION AND MULTICORE PROCESSORS
  • As companies deploy hundreds or even thousands
    of Servers across many geographic locations ,
    many have discovered that they are spending more
    on electricity to power and cool their Systems
    than acquiring the Hardware.
  • Cutting power consumption in Data centres is now
    a priority of most Companies.
  • One way of curbing Hardware proliferation and
    power consumption is to use Virtualization
    to reduce the number of Computers required for
    processing.

18
  • VIRTUALIZATION
  • Virtualization is the process of presenting a
    set of Computing Resources so that they can be
    all accessed in ways that are not restricted by
    physical configuration or geographic
    location.
  • Server Virtualization enables companies to run
    more than one Operating System at the same
    time on a single machine.
  • Server Virtualization Software runs between the
    Operating System and the
  • Hardware , masking Server Resources,
    including the number and identity of
    physical Servers, Processors, and Operating
    Systems, from Server Users.
  • e.g. VMWare is the leading Server
    Virtualization Software vendor for
    Windows and Linux Operating
    Systems. Microsoft also offers its own
    Virtual Server product and has built
    Virtualization capabilities into the
    newest version of Windows Server.
  • Most Servers run at just 10 15 of capacity and
    Virtualization can boost Server Utilization rates
    up to 70 or higher. Which means fewer Computers
    required to process same amount of work.

19
  • VIRTUALIZATION
  • In addition to reducing Hardware and Power
    expenditures , Virtualization allows firms to run
    their Legacy Applications on older Versions of an
    Operating System on the same Server as newer
    Applications.

20
  • MULTICORE PROCESSORS
  • Another way to reduce power consumption and
    Hardware sprawl is to use
  • Multicore Processors.
  • MULTICORE PROCESSOR
  • Multicore Processor is an integrated circuit that
    contains two or more processors.
  • In the past, chip makers increased the
    Processors Speed by increasing their
  • frequency from a few Megahertz to todays
    Gigahertz frequencies.
  • This strategy increased both the Heat and Power
    consumption to the point where high Gigahertz
    chip require water cooling.
  • Dual-Core Processors combine two or more slower
    Processors in a single chip that enables two
    Processor engines with reduced power requirements
    and
  • heath dissipation to perform tasks faster than a
    resource-hungry chip with a single processing
    core.

21
  • MULTICORE PROCESSORS
  • The Dual-core Processors implementation requires
    half of the Servers as the Single- core approach
    and is less costly to maintain because there are
    fewer Systems to monitor.
  • INTEL and AMD make Dual-core Microprocessors
    and are introducing Quad-core Processors.
    Sun Microsystems sell Servers with Eight-core
    UltraSparc T1 Processors.

22
  • DATA MANAGEMENT AND STORAGE PLATFORMS
  • There are few choices for Enterprise Database
    Management Software.
  • The leading Database Software provider are IBM
    (DB2), Oracle, Microsoft (SQL Server) and
    Sysbase.
  • - Also MySQL ( A Linux Open-source
    Relational Database product ) is a new
    entrant, is available free on the Internet and
    increasingly supported by HP and
    others.
  • In additional to the traditional Disk Array
    technologies, large firms are turning to
    Network-based Storage technologies called Storage
    Area Networks (SANs).
  • Storage Area Networks connect multiple storage
    devices on a separate high-speed Network
    dedicated to storage.
  • The SAN creates a large central pool of storage
    that can be rapidly accessed and shared by
    multiple Servers.

23
  • NETWORKING AND TELECOMMUNICATIONS PLATFORM
  • Windows Server is predominantly used as the
    Local Area Network (LAN) Operating System
    followed by Novell, Linux and Unix.
  • Large Enterprise-Wide Area Networks primarily
    use some variant of Unix.
  • Nearly all LAN and Enterprise-Wide Networks
    use TCP/IP protocol suite .
  • The leading Networking Hardware providers are,
    Cisco, Lucent, Nortel and Jupiter
    Networks.
  • Telecommunications Platforms are typically
    provided by national Telecommunications/Telephone
    Services companies that offer voice and data
    connectivity, Wide area Networking (WAN) and
    Internet access.
  • e.g. AT T, British Telecom, Turktelecom.
    Etc/

24
  • INTERNET PLATFORMS
  • Internet Platforms overlap with, and must relate
    to, the organizations general
  • Networking Infrastructure, Hardware and Software
    Platforms.
  • The Internet-related Infrastructure encompass
    Hardware, Software, and
  • Management Services to support Company Web Sites,
    including Web Hosting
  • Services , and Intranets and Extranets.
  • The Internet Hardware Server market has become
    increasingly concentrated in the hands of
    Dell, HP and IBM.
  • The major Web Software Application Development
    Tools and Suites are supplied by
  • - Microsoft (FrontPage, and Microsoft .NET
    family of development tools used to
    create Web sites using Active Server Pages (ASP)
    - IBM (WebSphere line of Internet
    Management Tools)
  • - Sun (Java (is the most widely tool for
    developing interactive Web
    Applications on both the Server and Client
    sides)
  • - Macromedia / Adobe (Flash) etc

25
  • CONSULTING AND SYSYTEM INTEGRATION SERVICES
  • Although 20 years ago, it might have been
    possible for a large organization to
  • implement all its own IT Infrastructure , today
    many organizations do not
  • have the staff, the skills, the budget or
    necessary experience implement their
  • own IT infrastructure.
  • Software Integration means ensuring the new
    infrastructure works with the
  • firms older, so-called Legacy Systems (older
    mainframe based Transaction
  • Processing Systems) and ensuring the new elements
    of the infrastructure work with one another.
  • Firms use Consulting Services and System
    Integrators for implementing new
  • Infrastructure, since it involves with
    significant changes in business processes
  • and procedures, training and education and
    Software Integration.
  • The world renowned Consulting and System
    Integration Services are provided by
    Accenture and PwC Consulting (An IBM subsidiary
    company)

26
  • SOFTWARE PLATFORM TRENDS AND EMERGING
    TECHNOLOGIES
  • There are six major themes in contemporary
    Software Platform Evolution
  • Linux and Open-source Software
  • Java
  • Enterprise Software
  • Web Services and Service Oriented Architecture
    (SOA)
  • Mashup and Web-based Software Applications
  • Software Outsourcing

27
  • SOFTWARE PLATFORM TRENDS AND EMERGING
    TECHNOLOGIES
  • 1. THE RISE OF LINUX AND OPEN SOURCE SOFTWARE
  • Open-source Software is produced by a community
    of several hundred thousand Programmers around
    the world.
  • Open-source Software is free and can be modified
    by users.
  • Open-source Software is by definition not
    restricted to any specific Operating System or
    Hardware technology, although most Open-Source
    Software is currently based on a Linux or Unix
    Operating System.
  • Open-source is based on the promise that it is
    superior to commercially produced proprietary
    Software because
  • Thousands of programmers around the world working
    for no pay can read, perfect, distributed and,
    modify the source code much faster and with more
    reliable results, than small teams of programmers
    working for single Software company.

28
  • SOFTWARE PLATFORM TRENDS AND EMERGING TECHNOLOGIE
  • 1. THE RISE OF LINUX AND OPEN SOURCE SOFTWARE
  • Although it may seem that the Open Source
    Software contributors receive nothing in
    return, in fact they receive respect, prestige,
    and access to a network of knowledgeable
    programmers,. They are dedicated
    professionals who have well defined
    organizational structures and set of
    procedures for getting the work done.
  • The Open-source Software movement has been
    evolving for more than 30 years and by now
    thousands of Open-source programmes are available
    from hundreds of Web sites.
  • The range of Open-source Software extends from
    Operating Systems to Desktop Productivity suites,
    Web Browsers, and Games.
  • Major Hardware and Software vendors, including
    IBM, HP, Dell, Oracle and SAP now offer
    Linux-compatible versions of their products.

29

SOFTWARE PLATFORM TRENDS AND EMERGING
TECHNOLOGIES 1. THE RISE OF LINUX AND OPEN
SOURCE SOFTWARE LINUX Perhaps the most well
known Open-source Software is Linux Operating
System , derived from Unix. Linux is the world
fastest growing Client and Server Operating
System. Applications for Linux are rapidly
growing . Many of these Applications are
embedded in Cell phones , PDAs and other Handheld
devices. Although Linux is currently a small but
rapidly growing presence on the Desktop
environment , it plays a major role in the
Back-office running Web Server and Local Area
Networks (LAN). IBM, Dell, HP , Intel and Sun
have made Linux a central part of their offering
to corporations.
30
  • SOFTWARE PLATFORM TRENDS AND EMERGING
    TECHNOLOGIES
  • LINUX (Continued)
  • The rise of Open-source Software particularly
    Linux and the Applications it supports, has
    profound implications on-
  • - Cost Reduction
  • - Reliability
  • - Resilience - Integration
  • The benefits of Open-source however are not
    always automatic, and thus Managers need to
    carefully assess whether Open-source will meet
    their Business and Computing requirements.

31
  • SOFTWARE PLATFORM TRENDS AND EMERGING
    TECHNOLOGIES
  • 2. JAVA
  • Java is an Object-oriented Programming language m
    independent of Operating Systems, and
    Processors.
  • Java has become the leading interactive
    Programming environment for the Web.
  • Java is designed to run on any Computer or
    Computing device, regardless of the specific
    microprocessor or Operating System device
    uses.
  • Java is particularly useful in Network
    environments such as the Internet, where
    Java is used to create miniature programs called
    Applets that are designed to reside on
    centralized Network Servers.
  • The Network delivers to Client Computers only
    the Applets required for a specific
    function. With Java Applets residing on Network,
    a User can download only the Software
    functions and data that he or she needs to
    perform a particular task,

32
  • SOFTWARE PLATFORM TRENDS AND EMERGING
    TECHNOLOGIES
  • JAVA (Continued)
  • T he User does not need to maintain large
    Software programmes or Data files on
    their Desktop machine.
  • Java is also a very robust language that can
    handle text, data, graphics, sound, and
    video, all within one program if needed.
  • Java enables PC users to manipulate data on
    Networked Systems using Web Browsers,
    reducing the need to write specialized Software.
  • JAVA at Enterprise level is used for more
    complex e-commerce and
  • e-business Applications that require
    communication with an organization
    back-end Transaction Processing Systems.

33
  • SOFTWARE PLATFORM TRENDS AND EMERGING
    TECHNOLOGIES
  • 3. SOFTWARE FOR ENTERPRISE INTEGRATION
  • In the past organizations built their own custom
    Software and made their own choice about their
    Software platforms. This strategy produced
    hundreds of thousands of Computer programs that
    frequently could not communicate with other
    Software programs, were difficult and expensive
    to maintain, and were nearly impossible to change
    quickly as business models changed.
  • One solution is to replace the isolated Systems
    that cannot communicate with each other with
    Enterprise Applications such as Customer
    Relationship Management, Supply Chain Management,
    Knowledge Management and Enterprise Resource
    Planning Systems , that can integrate with
    multiple business processes.
  • The existing Legacy mainframe
    Applications are essential to operations
    and are very risky to change, but they can become
    more useful if their information and
    business logic can be integrated with
    other Applications. However, not all firms can
    manage to convert all of their Legacy
    Systems to Enterprise Platform.

34
  • 3. SOFTWARE FOR ENTERPRISE INTEGRATION
  • Some Integration of Legacy Applications can be
    achieved by using special Software called
    Middleware to create an interface or bridge
    between two different Systems.
  • MIDDLEWARE
  • Is a Software that connects two otherwise
    separate Applications, enabling them to
    communicate with each other and to exchange data.
  • Organizations can choose to write their own
    Software to connect one application to
    another but increasingly are purchased specific
    software
  • package called Enterprise Application
    Integration Software (EAI) for
  • this purpose to connect disparate
    Applications, or Application clusters.
  • Enterprise Application Interface Software
    enables multiple Systems to exchange data
    through a single Software hub rather than
    building countless Custom software
    interfaces to link Systems.
  • .

35
  • 3. SOFTWARE FOR ENTERPRISE INTEGRATION
  • EAI uses special Middleware that creates a
    common platform which all Applications can
    be freely communicate with each other as
    demonstrated in fig. (a) .
  • EAI requires much less programming than
    Traditional Point-to-point Integration as
    shown in fig. (b)/.

36
  • The largest providers of Enterprise Application
    Software are SAP and, ORACLE.
  • Some of the leading EAI vendors that
    provide Enterprise wide Integration
    by linking the firms existing Application Systems
    are WebMethods, Tibco, SeeBeyond, BEA
    and Vitra.
  • Microsoft is also attempting to move into
    the lower ends of this market by
    focusing on small and medium sized companies.
  • SOFTWARE FOR ENTERPRISE INTEGRATION

37
  • WEB SERVICES AND SERVICE_ORIENTED ARCHITECTURE
    (SOE)
  • Enterprise Application Integration
    Software (EAI) tools are product specific,
    meaning that they can work only with certain
    piece of Application Software and Operating
    Systems.
  • E.g. One EAI tool to connect a specific Order
    Entry Software to Manufacturing , Shipping and,
    Billing Application Software might not work with
    another Vendors Order Entry Software.
  • The alternative way to EIA in dealing with
    Integration problems is
  • Web Services.

38
  • WEB SERVICES AND SERVICE_ORIENTED ARCHITECTURE
    (SOE)
  • 4.1 WEB SERVICES
  • Provide a standardized alternative for dealing
    with Integration Problems by creating a
    communications environment that is Vendor
    independent.
  • Web Services refer to a set of loosely coupled
    Software components that
  • exchange information with each other using
    standard Web Communication
  • Standards and Languages.
  • Web Server facilitates information exchange in a
    standard way without time- consuming custom
    coding between two different Systems regardless
    of the Operating Systems or Programming Languages
    on which the Systems are based.
  • The foundation technology of Web Services is XML
    (Extensible Mark-up Language).

39
  • 4. 1 WEB SERVICES
  • XML tags the selected elements of the
    content documents for their meanings
  • and makes it possible for computers to
    manipulate and interpret their data
    automatically and perform operations on the data
    without human intervention.
  • XML Provides a Standard Format for Data
    exchange, enabling Web services to pass
    data from one process to another.
  • Web Services communicate through XML
    messages over standard Web Protocols.
  • SOAP (Simple Object Access Protocol) is a set of
    rules for structuring messages that
    enables applications to pass data and
    instructions to one another.
  • WSDL (Web Services Description Language is a
    common Framework for describing the
    tasks performed by a Web Services and Commands
    and data it will accept so that it
    can be used by other Applications
  • UDDI (Universal Description, Discovery, and
    Integration enables a Web Service to be
    listed in a Directory of Web Services so that
    it can be easily located.

40
  • 4.2 SERVICE ORIENTED ARCHITECTURE (SOA)
  • SOA is set of self contained Services that
    communicate with each other to create a working
    Software Application.
  • SOA is an entirely new way of developing
    Software for a firm.
  • In the past organizations used to build Software
    Applications to serve a specific purpose such as
    calculate and printing out Invoices. Often
    multiple programs performed all of these tasks
    without communicating to each other.
  • In a SOA environment, it is different. For
    example an INVOICE SERVICE can be written that
    is the only program responsible for calculating
    Invoice information and printing invoices.
  • All major Software Vendors such as IBM,
    Microsoft., Oracle, SAP., Sun and HP provide
    tools and entire platforms for building and
    Integrating Software Applications using Web
    Services. IBM included Web Services Tools in its
    Websphere e-budsiness Software Platform,
    Microsoft has incorporated WEB services Tools in
    its Microsoft.Net Platform

41
  • 4.2 SERVICE ORIENTED ARCHITECTURE (SOA)
  • SOA is not a universal salve for all firms and it
    does raise issues all of its own.
  • SOA requires the staff to master a whole new set
    of tools and a new mentality
  • about Software development.

42
  • 4.2 SERVICE ORIENTED ARCHITECTURE (SOA)
  • Example of an Inter-organizational SOA at
    work
  • Dollar Rent A Cars Systems use Web services to
    link its online Booking Systems with Southwest
    Airlines Web site. Although both companies
    Systems are based on different technology
    platforms, a person booking a flight on
    Southwest.com can reserve a car from Dollar
    without leaving the Airlines Web site.
  • Dollar used Microsoft.Net Web Services technology
    as an intermediary to translate reservations
    into Web services Protocols, which are then
    translated into formats that can be understood by
    Dollars computers.
  • Web Services provide Standard way for Dollars
    Computer to talk other companies Information
    Systems without having to build special links to
    each other.

43
  • 5. AJAX, MASHUPS, WEB 2.0 , AND WEB-BASED
    SOFTWARE APPLICATIONS
  • 5.1 AJAX (Asynchronous JavaScript And XML)
  • Is A New Software technique that
    prevents all inconveniences and makes the User
    experience more seamless environment.
    (such as make a mistake and then start all
    over again)
  • Ajax allows Client and the Server to
    hold a conversation in the background,
    transferring the entries as they are made to the
    Server without user awareness.
  • e.g. Click North on a map site and the
    Server will downloads just that part of the
    Application that changes with no wait
    for an entire new map.
  • Ajax and RIA (Rich Internet
    Applications) are important for new Web-based
    Application Development.

44
  • 5. AJAX, MASHUPS, WEB 2.0 , AND WEB-BASED
    SOFTWARE APPLICATIONS
  • 5.2 MASHUP
  • On a smaller scale, entrepreneurs are
    creating new Software Applications
    and services based on combining different Online
    Software Applications called MASHUP.
  • These new combined Applications depend on
  • High-speed data Networks,
  • Universal Communication Standards,
  • Open-source code.
  • The idea is to take different sources and produce
    a new work that is greater than the sum of its
    parts.

45
  • AJAX, MASHUPS, WEB 2.0 , AND WEB-BASED SOFTWARE
    APPLICATIONS
  • WEB 2.0
  • Part of the movement called Web 2.o, and the
    spirit of Musical Mashups. Web Mashups
    combine the capabilities of two or more online
    Applications to create a kind of hybrid
    that provides more customer value than the
    original sources alone.
  • One area of real innovation is the Mashup of
    mapping and satellite image software with
    local content.

46

6. SOFTWARE OUTSOURCING Today most business
firms continue to operate their Legacy Systems
that continue to meet a business need and
that would be extremely costly to replace.
However, firms will purchase most of
their new Software Applications from
External sources from now on.
47
  • 6. SOFTWARE OUTSOURCING (Continued)
  • In the past, most of the Software was develop
    inside the firm by teams of
  • Software Developers. Firms still retain
    sizable IT Staff but they are no longer
    exclusively in the Software business..
  • In year 2006, firms have turned over about
    one-third of their Software Development to
    outside Software Developers, including Enterprise
    Software firms, who will sell them
    Pre-packed Software solutions customized to their
    needs.
  • A firm contracts Custom Software Development
    or maintenance of existing Legacy Programs
    to outside firms, frequently firms that operate
    offshore in low-wage areas of the world
    like India.
  • Outsourcing Services may give a company
    access to highly trained technology
    specialists that were not available internally.

48
  • 6.1 SOFTWARE PACKAGES AND ENTERPRISE SOFTWARE
  • A Software Package is a prewritten
    commercially available set of Software
    Programs that eliminates the need for a firm to
    write its own Software Programs for certain
    functions, such as payroll processing or order
    handling.
  • Software Vendors such as SAP and Oracle have
    developed powerful Software packages that
    can support the primary business processes of a
    firm worldwide from Warehousing,
    Customer Relationship Management , Supply
    Chain Management, and Finance to Human Resources.
  • These large-scale Enterprise Software Systems
    provide a single, integrated
  • Worldwide Software System for firms at a cost
    much less than they would pay if they
    develop it themselves.
  • These Systems are so complex, and require so
    much experience, that very few corporations
    have the expertise required to develop these
    packages.

49
  • 6.2 APPLICATION SERVICE PROVIDERS (ASP)
  • An Application Service Provider (ASP) is
    a firm that delivers and manages
    Applications and Computer Services from remote
    Computer centres to multiple Users using
    the Internet or a Private network.
  • Instead of buying and installing Software
    Programs, subscribing companies can rent
    the same functions from these services. Users
    pay for the use of this Software either on
    a subscription or per-transaction basis.
  • The ASP solution combines Packaged Software
    Applications and all of the
  • related Hardware, System Software, Networks,
    and other Infrastructure services that the
    customer otherwise would have to purchase,
    integrate, and manage independently.
  • The ASP Customer interacts with a single
    entity instead of a an array of
    technologies and Service Vendors.

50
  • 6,2 APPLICATION SERVICE PROVIDERS (ASP)
    (Continued)
  • Large and medium sized Businesses are
    using ASPs for Enterprise Systems
    such as Sales Force Automation, Financial
    Management Systems
  • Small Business use ASP for functions such
    as Invoicing , Tax calculations
  • Systems etc
  • Some companies find it much easier to rent
    Software from the ASP vendor and avoid
    the expenses and difficulty of installing,
    operating and maintaining the contacts,
    guarantee a level of services and support to
    ensure that the Software is available and
    working at all times.

51
  • MAKING WISE INFRASTRUCTURE INVESTMENTS
  • IT Infrastructure is a major investment for an
    Organization.
  • If too much is spent on Infrastructure, it lies
    idle and constitutes a drag on firms
    financial performance.
  • If too little is spent, important business
    services cannot be delivered and the firms
    competitors will outperform the under investing
    firm.
  • How much should the firm spend on
    Infrastructure?
  • This questing is not
    easy to answer!
  • A related question is whether a firm should
    purchase its own IT Infrastructure
    components or rent them from External suppliers.
  • A major trend in Computing platforms (both
    Hardware and Software) is to Outsource to
    the External Service providers.
  • The Decision either to Purchase own IT
    assets or Rent them from External providers
    is typically called the Rent versus Buy decision.

52

HOW MUCH SHOULD OUR FIRM SPEND ON IT
INFRASTRUCTURE? There are six factors you can
use to answer the question of How much a firm
should spend on Infrastructure?.
53
  • HOW MUCH SHOULD OUR FIRM SPEND ON IT
    INFRASTRUCTURE?
  • Market demand for your firms Services
  • Make an Inventory or the Services your currently
    provide to customers, suppliers, and employees.
  • Survey each group to find out if the services you
    currently offer are meeting the needs of each
    group.
  • Make Firms Business Strategy
  • Analyze your firms 5 years Business
    Strategy and try to assess what new services and
    capabilities will be required to achieve
    Strategic goals
  • 3. Yours Firms IT Strategy, Infrastructure and
    Cost
  • Examine the 5 years IT plans and assess its
    alignment with the firms Business plans.
  • Determine total IT infrastructure Costs.
  • Perform a Total Cost of Ownership (TCO)
    Analysis.

54
  • HOW MUCH SHOULD OUR FIRM SPEND ON IT
    INFRASTRUCTURE?
  • Information Technology Assessment
  • Is your firm behind the Technology curve or at
    the bleeding edge of IT?
  • Both situations are to be avoided.
  • It is usually not desirable to spend
    resources on advanced.
  • Technologies that are still experimental, often
    expensive and sometimes unreliable. However, you
    do not want to put off investment in new
    technologies or allow competitors to develop now
    business models and capabilities based on the new
    Technologies.
  • Competitor Firm Services
  • Try to asses what Technology services competitors
    offer to customers, suppliers, and employees.
  • Establish measures to compare them with
    those of your firms.
  • If your firms levels are all short, your company
    is at a competitive disadvantage. Look for ways
    your firm can excel at Service levels.

55
  • HOW MUCH SHOULD OUR FIRM SPEND ON IT
    INFRASTRUCTURE?
  • 6. Competitors Firm IT Infrastructure
    Investments
  • Benchmark your expenditures for IT Infrastructure
    against your competitors.
  • Many companies are quite open about their
    innovative expenditures on IT.
  • If competing firms try to keep IT expenditures
    secret, you may be
  • able to find IT investment information in Public
    companies.
  • Your firm does not need to spend as much as, or
    more than, your competitors.
  • Perhaps it has discovered much less expensive
    ways of providing services, and this can lead to
    Cost advantage.
  • Alternatively your firm may be spending far less
    than competitors and experiencing commensurate
    poor performance and losing market share.

56
  • TOTAL COST OF OWNERSHIP (TCO) OF TECHNOLOGY
    ASSETS
  • In Benchmarking your firms expenditures on IT
    Infrastructure with that of
  • your competitors, you will need to consider a
    wide range of Costs
  • The actual Cost of owning Technology resources
    includes the Original Cost of acquiring and
    installing Hardware and Software
  • Ongoing Administration costs for Hardware and
    Software upgrades, maintenance, downtime,
    technical support, and training,
  • Utility and real estate costs for housing and
    providing power for the technology.
  • The Total Cost of Ownership (TCO) model can be
    used to analyze these
  • direct and indirect costs to help firms determine
    the Actual cost of specific
  • technology implementations.
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