Session 3 It Architecture And Competitive Advantage

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Youngjin Yoo

Design

what dose IS do?

Accounting Finance Sales Human Production
Resources

MIS is the “glue” that ties
businesses together…

…and uses the technology that
makes business work.

© copyright 2007, youngjin yoo

IT architecture

© copyright 2007, youngjin yoo

shows how
hardware, software,
database and
network will be
coordinated
© copyright 2007, youngjin yoo

to achieve strategic
goal of the ﬁrm

© copyright 2007, youngjin yoo

a master plan that
provides a
technology vision for

© copyright 2007, youngjin yoo

more than IT architecture
“A digital nervous system requires a
combination of hardware and software; it's
distinguished from a mere network of
computers by the accuracy, immediacy, and
richness of the information it brings to
knowledge workers and the insight and
collaboration made possible by the
information.”

Bill Gates, Business @ The Speed of Thoughts

© copyright 2007, youngjin yoo

Scott McNealy on Gates

“He is right - I would be very nervous if
my systems
were based on their (Microsoft’s)
platforms
and products!”

© copyright 2007, youngjin yoo

also includes

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organizational
control

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funding model

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standardization

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particularly
important for m-
form organizations

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everyone thinks
“I am unique!”

© copyright 2007, youngjin yoo

evolution of
corporate IT
architecture

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centralized

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decentralized

© copyright 2007, youngjin yoo

traditional view
Back-end Systems Executives &
Managers
A firm’s value chain
Suppliers
Transaction Systems
(ERP, MRP, TPS)
Customers

Enterprise
DB

© copyright 2005, youngjin yoo

network-centric view
(service oriented architecture)
CRM
support

Service
Center

Sales
force
Call

ERP

Manufacturing
CRM infrastructure services

Distribution
Sales and
Financials

Resource
Human
Middleware
RDBMS

EAI
Commerce Server
ERP infrastructure services
Shopping

Payment
Catalog

Cart

Application Server RDBMS

RDBMS

© copyright 2007, youngjin yoo

importance of
service oriented
architecture

© copyright 2007, youngjin yoo

modular
interoperable
reusable
ﬂexible
scalable
© copyright 2007, youngjin yoo

standards
common
infrastructure

© copyright 2007, youngjin yoo

SOA:
a technical
perspective

© copyright 2007, youngjin yoo

SOA:
a business
perspective

© copyright 2007, youngjin yoo

IT infrastructure is a
strategic asset

© copyright 2007, youngjin yoo

more than a tool

© copyright 2007, youngjin yoo

not utility

© copyright 2007, youngjin yoo

no overhead

© copyright 2007, youngjin yoo

“let’s just have ERP”
wouldn’t work

© copyright 2007, youngjin yoo

it is a strategic
decision

© copyright 2007, youngjin yoo

must be a part of
strategic decision-
making process

© copyright 2007, youngjin yoo

aligning business
goals to IT

© copyright 2007, youngjin yoo

how do I really know
if IT is a strategic
resource in my ﬁrm?

© copyright 2007, youngjin yoo

where is your CIO in
your organization?

© copyright 2007, youngjin yoo

how is IT being
funded?

© copyright 2007, youngjin yoo

is IS a part of
corporate G&A?

© copyright 2007, youngjin yoo

where is IS plan in
your strategic
planning?

© copyright 2007, youngjin yoo

who makes the
decision?

© copyright 2007, youngjin yoo

so, why should I
care?

© copyright 2007, youngjin yoo

accelerating
technology
innovations

© copyright 2007, youngjin yoo

challenging long-
held assumptions

© copyright 2007, youngjin yoo

new ways of
organizing
relationship inside

© copyright 2007, youngjin yoo

new ways of
organizing
relationship outside

© copyright 2007, youngjin yoo

agility and
innovations

© copyright 2007, youngjin yoo

it is as strategic as it
gets when it comes
to information

© copyright 2007, youngjin yoo

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Session 3 It Architecture And Competitive Advantage

2. what dose IS do? Accounting Finance Sales Human Production Resources MIS is the “glue” that ties businesses together… …and uses the technology that makes business work. © copyright 2007, youngjin yoo

7. more than IT architecture “A digital nervous system requires a combination of hardware and software; it's distinguished from a mere network of computers by the accuracy, immediacy, and richness of the information it brings to knowledge workers and the insight and collaboration made possible by the information.” Bill Gates, Business @ The Speed of Thoughts © copyright 2007, youngjin yoo

20. network-centric view (service oriented architecture) CRM support Service Center Sales force Call ERP Manufacturing CRM infrastructure services Distribution Sales and Financials Resource Human Middleware RDBMS EAI Commerce Server ERP infrastructure services Shopping Payment Catalog Cart Application Server RDBMS RDBMS © copyright 2007, youngjin yoo

Session 3 It Architecture And Competitive Advantage

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Session 3 It Architecture And Competitive Advantage