information systems drivers requirements for classes of applications
TRANSCRIPT
Information Systems Drivers
Requirements for classes of applications
IT Drivers
Electronic Commerce Business to business Electronic retail
Data WarehousingEnterprise Management
SAP and others Supply chain management
Electronic Commerce
Interorganizational Systems:Business-to-businessElectronic storefront
Market ExchangeInterorganizational Structure
Vertical integrationMultiple activities in the same firm
Risk: range of expertise required
Selective sourcingSome outsourced activities
Risk: control of outsourcer
Virtual corporationCoordination of separate activities
Risk: loss of core competency
Questions
Do we benefit from electronic commerce?Do we use information to add value to customers?Are we managing the product/service channel?Have we redesigned business with our partners to
take advantage of technology and provide securityDo we have partners with shared vision and
common purpose?Do we have the right infrastructure?
External / Internal Hosting
Outside (Cheaper) minimize bandwidth and hardware problems use external experts installed infrastructure little additional staffing required
Inside (More Control) dependent on third party reliability possible single vendor software solutions possible single vendor payment scheme
External / Internal Hosting
External better at storefrontsbut requires close integration with core
businessInternal better at business to
businessbut often creates a self-contained
replicated system that can be outsourced
Payment
Credit CardsSET (Secure Electronic Transaction) with http
Electronic ChecksPublic/private key transactions with banks
Electronic Cash3rd party software to create virtual cash
EDI/EFTValue added network using 3rd party. Common
in business to business.
Data Warehousing
Building a database to support the decision making activities of a department or business unit
Data Warehouse
A read-only database for decision analysis
–Subject Oriented–Integrated–Time variant–Nonvolatile
consisting of time stamped operational and external data.
Data Warehouse Architecture
EnterpriseData
Warehouse
DataMarts
BusinessPackages
Two Approaches
Classical Enterprise DatabaseTypically contains operational data that integrates information from all areas of the organization.
Data MartExtracted and managerial support data designed for departmental or EUC applications
Data Warehouse vsOperational Databases
Highly tunedReal time DataDetailed recordsCurrent valuesAccesses small
amounts of data in a predictable manner
Flexible accessConsistent timingSummarized as
appropriateHistoricalAccess large
amounts of data in unexpected ways
Access
Tailored access programs in user form, usually client-server
Specialist interfacesGeneral purpose GUI products (e.g.
Access, PowerBuilder)Custom access routines
Strategic Partnerships
Outsourcing, etc.
Outsourcing of IT Functions
Traditional Outsourcing: removing IT from a function for a long term (10 years)
Transitional Outsourcing: using outside services to move to a new environment over a short term (1-3 years)
Product Acquisition: purchasing functionality rather than building it
Outsourcing Difficulties
Contracts are structured for long periods (10 years is normal)
Early benefits are clear for the customer; late benefits to the outsource supplier(When the benefits start building for the outsourcer,
the customer starts wanting change)
Few outsourcers large enough for big projects(EDS, CSC, IBM, AT&T)
Technology evolution changes strategic IT relevance
Outsourcing in the 1990’s
More than half of all firms are considering some sort of outsourcing activity
Acceptance of strategic alliancesWin-win alliances in many business areas
IT’s changing environmentFocus on networking and integration places
extraordinary pressures on legacy and state of the art systems management
Outsourcing Drivers
Management concern for cost and quality
Breakdown in IT performanceSupplier pressuresSimplified Company management
agendaFinancial FactorsCorporate culture
What Happens
Vendor specialistsCurrent IT organizationBasic services
Enterprise Resource Planning
ERP Reality
Complete systems can cost tens of millions of dollars
Implementation can take several years
Companies may lose flexibility
SAP
Systems, Applications and Products in Data Processing
What is SAP?
SAP is the leading global provider of client/server business application solutions
SAP is the number one vendor of standard business applications software
SAP is the fifth largest independent software supplier in the world
Facts About SAP:
Founded in 1972 in Walldorf, GermanySAP employs a workforce of over 7,000SAP has offices in over 40 countriesMore than 6,000 companies worldwide
have implemented SAPReported revenues for 1995 were 1.887
billion dollars
Infrastructure Drivers