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  1. IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability Eleventh Edition Turban, Pollard, Wood Chapter 2 Information Systems, IT Architecture, Data Governance, and Cloud Computing
  2. Learning Objectives (1 of 5) 2 Copyright ©2018 John Wiley & Sons, Inc.
  3. Figure 2.2 IPOS Cycle 3 Copyright ©2018 John Wiley & Sons, Inc.
  4. Figure 2.3: Components of an Information System 4 Copyright ©2018 John Wiley & Sons, Inc.
  5. Data, Information, Knowledge, & Wisdom • Raw data describes products, customers, events, activities, and transactions that are recorded, classified, and stored. • Information is processed, organized, or put into context data with meaning and value to the recipient. • Knowledge applies understanding, experience, accumulated learning, and expertise to current problem. • Wisdom applies a moral code and prior experiences to form a judgement. 5 Copyright ©2018 John Wiley & Sons, Inc.
  6. Figure 2.4: Examples of Data, Information, Knowledge, and Wisdom 6 Copyright ©2018 John Wiley & Sons, Inc.
  7. Figure 2.5 Input-Processing-Output Model 7 Copyright ©2018 John Wiley & Sons, Inc.
  8. Figure 2.6 Hierarchy of Information Systems, Input/Output and User Levels 8 Copyright ©2018 John Wiley & Sons, Inc.
  9. Transaction Processing Systems (TPS) • Internal transactions: originate or occur within the organization (payroll, purchases, etc.) • External transactions: originate outside the organization (customers, suppliers, etc.) • Improve sales, customer satisfaction, and reduce many other types of data errors with financial impacts 9 Copyright ©2018 John Wiley & Sons, Inc.
  10. Batch v. Online Real-Time Processing • Batch Processing: collects all transactions for a time period, then processes the data and updates the data store • OLTP: processes each transaction as it occurs (real- time) • Batch processing costs less than OLTP, but may be inaccurate from update delays 10 Copyright ©2018 John Wiley & Sons, Inc.
  11. Management Information Systems (MIS) • General-purpose reporting systems that provide reports to managers for tracking operations, monitoring, and control. o Periodic: reports created or run according to a pre-set schedule. o Exception: generated only when something is outside designated parameters. o Ad Hoc, or On Demand: unplanned, generated as needed. 11 Copyright ©2018 John Wiley & Sons, Inc.
  12. Decision Support Systems (DSS) (1 of 2) • Interactive, knowledge-based applications that support decision making • Support unstructured and unstructured decisions with the following characteristics: o Easy-to-use interactive interface o Models or formulas that enable sensitivity analysis o Data from multiple sources • Can be used for open-ended What-if analysis and more structured Goal-seeking 12 Copyright ©2018 John Wiley & Sons, Inc.
  13. Executive Information Systems (EIS) • Strategic-level information systems that help executives and senior managers analyze the environment in which the organization exists • Used to identify log-term trends and plan appropriate actions • Weakly structured data from both internal and external sources • Designed to be easily operated by executives 13 Copyright ©2018 John Wiley & Sons, Inc.
  14. Information Systems Components and Classification 1. Name the six components of an IS. 2. Describe the differences between data, information, knowledge, and wisdom. 3. Define TPS and give an example. 4. Explain why TPSs need to process incoming data before they are stored. 5. Define MIS and DSS and give an example of each. 6. What characteristics distinguish a DSS from an MIS? 7. What level of personnel typically use an EIS? 8. What factors determine IS value? 14 Copyright ©2018 John Wiley & Sons, Inc.
  15. Learning Objectives (2 of 5) 15 Copyright ©2018 John Wiley & Sons, Inc.
  16. Figure 2.10 16 Copyright ©2018 John Wiley & Sons, Inc.
  17. IT Infrastructure • Inventory of the physical IT devices that an organization owns and operates • Describes organization’s entire collection of hardware, software, networks, data centers, facilities and related equipment • Does not include people or process components of an IS 17 Copyright ©2018 John Wiley & Sons, Inc.
  18. IT Architecture • Guides the process of planning, acquiring, building, modifying, interfacing and deploying IT resources in a single department within an organization • Should offer a way to systematically identify technologies that work together to satisfy the needs of the departments’ users • Blueprint for how future technology acquisitions and deployment will take place 18 Copyright ©2018 John Wiley & Sons, Inc.
  19. Enterprise architecture (EA) • Reviews all the information systems across all departments in an organization to develop a strategy to organize and integrate the organization’s IT Infrastructures • Helps meet the current and future goals of the enterprise and maximize the value of technology to the organization. • The way IT systems and processes are structured • Solves two critical challenges: where are we going; how do we get there? 19 Copyright ©2018 John Wiley & Sons, Inc.
  20. Decision Support Systems (DSS) (2 of 2) • Strategic Focus o IT systems’ complexity o Poor business alignment • Business and IT Benefits of EA o Cuts IT costs; increases productivity with information, insight, and ideas o Determines competitiveness, flexibility, and IT economics o Aligns IT capabilities with business strategy to grow, innovate, and respond to market demands o Reduces risk of buying or building systems and enterprise apps 20 Copyright ©2018 John Wiley & Sons, Inc.
  21. Measuring EA Success: KPIs • Key Performance Indicators (KPIs) are measures that demonstrate the effectiveness of a business process at achieving organizational goals. They present data in easy-to-comprehend and comparison-ready formats. • KPIs measure financial, social media, sales and marketing, operations and supply chain, or environmental data. • KPI examples are current ration; accounts payable turnover; net profit margin; new followers per week; cost per lead; order status. 21 Copyright ©2018 John Wiley & Sons, Inc.
  22. EA Components 22 Copyright ©2018 John Wiley & Sons, Inc.
  23. IT Infrastructure, IT Architecture, and Enterprise Architecture 1. What is the purpose of the IT infrastructure? 2. How is the IT infrastructure different from the IT architecture? 3. What is the purpose of an enterprise architecture? 4. What are the business benefits of EA? 5. Explain why it is necessary for the EA to maintain alignment between IT and business strategy? 6. Explain KPIs and give an example. 23 Copyright ©2018 John Wiley & Sons, Inc.
  24. Learning Objectives (3 of 5) 24 Copyright ©2018 John Wiley & Sons, Inc.
  25. Information Management • The use of IT tools and methods to collect, process, consolidate, store, and secure data from sources that are often fragmented and inconsistent • Why a continuous plan is needed to guide, control, and govern IT growth • Information management is critical to data security and compliance with continually evolving regulatory requirements, such as the Sarbanes-Oxley Act, Basel III, the Computer Fraud and Abuse Act (CFAA), the USA PATRIOT Act, and the Health Insurance Portability and Accountability Act (HIPAA) 25 Copyright ©2018 John Wiley & Sons, Inc.
  26. Reasons for Information Deficiencies • Information deficiencies are still a problem, caused by: o Data Silos, trapping information in stand alone data stores not accessible by other information systems o Lost or bypassed data, due to flaws in the data collection process o Poorly designed interfaces o Nonstandardized data formats, impeding efficient analysis o Cannot hit moving targets, because data tracking requirements keep changing 26 Copyright ©2018 John Wiley & Sons, Inc.
  27. Reasons for Information Deficiencies: Data Silos Figure 2.14 Data (or information) silos are ISs that do not have the capability to exchange data with other ISs, making timely coordination and communication across functions or departments difficult. 27 Copyright ©2018 John Wiley & Sons, Inc.
  28. Information Management Benefits • Business benefits of information management o Improves decision quality o Improves the accuracy and reliability of management predictions o Reduces the risk of noncompliance o Reduces time and cost 28 Copyright ©2018 John Wiley & Sons, Inc.
  29. Enterprise Data Governance • Data governance is the control of enterprise data through formal policies and procedures to help ensure data can be trusted and are accessible. • Enterprise-wide Data Governance o Crosses boundaries and used by people through the enterprise. o Reduces legal risks associated with unmanaged or inconsistently managed information. Copyright ©2018 John Wiley & Sons, Inc. 29
  30. Data Governance: Master Data & Management • Master Data & Management (MDM) o Synchronizes critical data from disparate systems into one master file o Creates high-quality trustworthy data: • Running the business with transactional or operational use • Improving the business with analytic use o Requires strong data governance to manage availability, usability, integrity, and security 30 Copyright ©2018 John Wiley & Sons, Inc.
  31. Information Management and Data Governance 1. What is information management? 2. What is a the “silo effect” and how does it affect business performance? 3. What three factors are driving collaboration and information sharing? 4. What are the business benefits of information management? 5. Explain why it is important to develop an effective data governance program? 6. Explain the purposes of master data management. 7. Why has interest in data governance and MDM increased? 31 Copyright ©2018 John Wiley & Sons, Inc.
  32. Learning Objectives (4 of 5) 32 Copyright ©2018 John Wiley & Sons, Inc.
  33. Data Centers and Cloud Computing • Data Centers and Cloud Computing are types of IT infrastructures or computing systems. • Data Center also refers to a physical facility. o Houses large numbers of network servers used for the storage, processing, management, distribution, and archiving of data, systems, Web traffic, services, and enterprise applications. National Climatic Data Center U.S. Nation Security Agency Apple 33 Copyright ©2018 John Wiley & Sons, Inc.
  34. When a Data Center Goes Down, So Does Business • Business is Reliant Upon data o Uber (car-hailing service) • Users flooded social media with complaints when they experienced an hour-long outage o WhatsApp (smartphone text-messaging service) • Competition added 2 million new registered users within 24 hours of WhatsApp outage (a record) 34 Copyright ©2018 John Wiley & Sons, Inc.
  35. Data Virtualization • Data Virtualization o Cisco’s single solution integrating computing, storage, networking, virtualization, and management into a single (unified) platform o Virtualization gives greater IT flexibility and cutting costs: • Instant access to data any time in any format • Respond faster to changing data analytic needs • Cut complexity and cost 35 Copyright ©2018 John Wiley & Sons, Inc.
  36. Data Virtualization Benefits Data Virtualization compared to traditional data integration and replication methods: 36 Copyright ©2018 John Wiley & Sons, Inc.
  37. The Software–Defined Data Center (SDDC) • An SDDC facilitates the integration of the various infrastructure silos within organizations. o Optimizes the use of resources, balances workloads o Maximizes operational efficiency by dynamically distributing workloads and provisioning networks o SDDC Goals: decrease costs and increase agility, policy compliance and security by deploying, operating, managing and maintaining applications. 37 Copyright ©2018 John Wiley & Sons, Inc.
  38. Figure 2.18 SDDC Infrastructure 38 Copyright ©2018 John Wiley & Sons, Inc.
  39. Cloud Computing • What is “The Cloud”? o A general term for infrastructure that uses the Internet and private networks to access, share, and deliver computing resources o Scalable delivery as a service to end-users over a network o Should be approached with greater diligence than other IT decisions as a new technology including Vendor Management and Cloud Service Agreements (CSAs) 39 Copyright ©2018 John Wiley & Sons, Inc.
  40. Cloud Computing Types • Private Cloud: Single-tenant environments with stronger security and control (retained) for regulated industries and critical data. • Public Cloud: Multiple-tenant virtualized services utilizing the same pool of servers across a public network (distributed). 40 Copyright ©2018 John Wiley & Sons, Inc.
  41. Cloud Computing CSAs • Cloud Service Agreements o A negotiated agreement between a company and service provider that can be a legally binding contract or an informal contract. o The goal is not building the best CSA terms, but getting the terms that are most meaningful to the business needs. 41 Copyright ©2018 John Wiley & Sons, Inc.
  42. Cloud Infrastructure • The Value of the Cloud Infrastructure: o Dynamic, not static o Provides a way to make apps and computing power available on demand because they are provided as a service o Referred to as Software As A Service, or SaaS. (examples: Google Apps and o Helps companies become more agile and responsive while significantly reducing IT costs and complexity Large organizations are moving to Enterprise Clouds. 42 Copyright ©2018 John Wiley & Sons, Inc.
  43. Data Centers, Cloud Computing, and Virtualization (1 of 2) 1. What is a data center? 2. What is the difference between on premise data centers and cloud computing? 3. What is an SDDC? 4. What are the advantages of using an SDDC? 5. How can cloud computing solve the problems of managing software licenses? 6. What factors should be considered when selecting a cloud vendor or provider? 7. When are private clouds used instead of public clouds? 8. Explain three issues that need to be addressed when moving to cloud computing or services. 43 Copyright ©2018 John Wiley & Sons, Inc.
  44. Learning Objectives (5 of 5) 44 Copyright ©2018 John Wiley & Sons, Inc.
  45. Cloud Services and Virtualization • Sustaining performance requires new business apps and analytics capabilities, which comprise the front end,― and the data stores and digital infrastructure, or back end, to support them. • The back end is where the data reside. • Data may have to navigate through a congested IT infrastructure that was first designed decades ago. • Cloud Services are services made available to users on demand via the Internet from a cloud computing provider's servers instead of being accessed through an organization’s on-premises servers. 45 Copyright ©2018 John Wiley & Sons, Inc.
  46. Anything-As-A-Service Models There are different types of Cloud Service Model • Software as a Service (SaaS) o End-user apps, like SalesForce • Platform as a Service (PaaS) o Tools and services making coding and deployment faster and more efficient, like Google App Engine • Infrastructure as a Service (IaaS) o Hardware and software that power computing resources, like EC2 & S3 (Amazon Web Services) • Data as a Service (DaaS) o Data shared among clouds, systems, apps, regardless the data source or storage location 46 Copyright ©2018 John Wiley & Sons, Inc.
  47. Data Centers, Cloud Computing, and Virtualization Figure 2.17 Virtual machines running on a simple computer hardware layer. Virtualization: created by a software layer (virtualization layer) containing its own operating system and applications as a physical computer. 47 Copyright ©2018 John Wiley & Sons, Inc.
  48. Virtualization Concepts • A virtual machine is a software-created computer. Technically, a virtual machine (VM) is created by a software layer, called the virtualization layer. • That layer has its own Windows or other OS and apps, such as Microsoft Office, as if it were an actual physical computer. • A VM behaves exactly like a physical computer and contains its own virtual―that is, software-based―CPU, RAM (random access memory), hard drive, and network interface card (NIC). 48 Copyright ©2018 John Wiley & Sons, Inc.
  49. Virtualization Benefits • Characteristics & Benefits o Memory-intensive • Huge amounts of RAM due to massive processing requirements o Energy-efficient • Up to 95% reduction in energy use per server through less physical hardware o Scalability and load balancing • Handles dynamic demand requests like during the Super Bowl or World Series 49 Copyright ©2018 John Wiley & Sons, Inc.
  50. Data Centers, Cloud Computing, and Virtualization Questions (2 of 2) 1. What is SaaS? 2. What is PaaS? 3. What is IaaS? 4. How might companies risk violating regulation or compliance requirements with cloud services? 5. In what ways is a virtualized information system different from a traditional information system? 6. Describe the different types of Virtualization. 7. What is load balancing and why is it important? 50 Copyright ©2018 John Wiley & Sons, Inc.
  51. Copyright Copyright © 2018 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. 51 Copyright ©2018 John Wiley & Sons, Inc.