S1.1 Laudon - Mis17 - PPT - ch05

Management Information Systems:
Managing the Digital Firm

Seventeenth Edition
Chapter 5
I T Infrastructure and Emerging
Technologies
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Learning Objectives
5.1 What is I T infrastructure, and what are the stages and drivers
of I T infrastructure evolution?
5.2 What are the components of I T infrastructure?
5.3 What are the current trends in computer hardware platforms?
5.4 What are the current computer software platforms and trends?
5.5 What are the challenges of managing I T infrastructure and
management solutions?
5.6 How will M I S help my career?
Video Cases
Case 1: Rockwell Automation Fuels the Oil and Gas Industry
with the Internet of Things (I o T)
Case 2: ESPN.com: The Future of Sports Broadcasting in the
Cloud
Case 3: Netflix: Building a Business in the Cloud
American Airlines Heads for the Cloud (1 of 2)
Problem
Outdated I T infrastructure
Highly competitive industry
Solutions
Monitor service level and costs
Make I T infrastructure investments
Create new services and business processes
Dynamic Rebooking system
Cloud-based customer-facing applications
I B M cloud computing services
American Airlines Heads for the Cloud (2 of 2)
Demonstrates the importance of information technology
infrastructure in running a business today
Illustrates the use of cloud computing to improve
effectiveness, control costs, and improve customer experience
Defining I T Infrastructure
Set of physical devices and software required to operate an
enterprise
Set of firm-wide services including:
Computing platforms providing computing services
Physical facilities management services
I T management, education, and other services
“Service platform” perspective
More accurate view of value of investments
Figure 5.1 Connection Between the Firm, I T
Infrastructure, and Business Capabilities
Evolution of I T Infrastructure
General-purpose mainframe and minicomputer era: 1959 to
present
Personal computer era: 1981 to present
Client/server era: 1983 to present
Enterprise computing era: 1992 to present
Cloud and mobile computing: 2000 to present
Figure 5.2 Stages in I T Infrastructure Evolution
Figure 5.3 A Multitiered (N-Tier)
Client/Server Network
Technology Drivers of Infrastructure
Evolution (1 of 2)
Moore’s law and microprocessing power
Computing power doubles every 2 years
Nanotechnology
Law of Mass Digital Storage
The amount of data being stored each year doubles
Metcalfe’s Law and network economics
Value or power of a network grows exponentially as a function
of the number of network members
Figure 5.4 Moore’s Law and
Microprocessor Performance
Figure 5.5 Falling Cost of Chips
Nanotubes
Figure 5.6 The Amount of Storage Per
Dollar Rises Exponentially, 1950–2016
Technology Drivers of Infrastructure
Evolution (2 of 2)
Declining communication costs and the Internet
Exponential growth in size of the Internet
Standards and network effects
Technology standards
Specifications that establish the compatibility of products
and the ability to communicate in a network
Unleash powerful economies of scale and result in price
declines
Figure 5.7 Exponential Declines in Internet
Communications Costs ($/M B P S)
What Are the Components of I T
Infrastructure?
1. Computer hardware platforms
2. Operating system platforms
3. Enterprise software applications
4. Data management and storage
5. Networking/telecommunications platforms
6. Internet platforms
7. Consulting system integration services
Figure 5.8 The I T Infrastructure
Ecosystem
Computer Hardware Platforms
Client machines
Desktop P C s, laptops
Mobile computing: smartphones, tablets
Desktop chips vs. mobile chips
Servers
Mainframes
I B M mainframe
Digital workhorse for banking and telecommunications networks
Operating System Platforms
Corporate servers
Windows Server
Unix
Linux
Client level
Microsoft Windows
Android, i O S, Windows 10 (mobile/multitouch)
Google’s Chrome O S (cloud computing)
Enterprise Software Applications
In 2020, firms are expected to spend over $500 billion on
software for enterprise applications
Largest providers: S A P and Oracle
Middleware providers: I B M, Oracle
Data Management and Storage
Database software providers
I B M (D B 2)
Oracle
Microsoft (S Q L Server)
SAP Sybase (Adaptive Server Enterprise),
MyS Q L (Oracle)
Apache Hadoop
Networking/Telecommunications
Platforms
Network operating systems
Windows Server, Linux, Unix
Network hardware providers
Cisco, Juniper Networks
Telecommunication services
Telecommunications, cable, telephone company charges
for voice lines and Internet access
A T&T, Verizon
Internet Platforms
Hardware, software, management services to support company
websites, intranets
Web-hosting services
Routers
Cabling or wireless equipment
Internet hardware server market
I B M, Dell, Oracle, H P
Web development tools/suites
Microsoft (Visual Studio and .NET), Oracle-Sun (Java), Adobe
Consulting and System Integration
Services
Even large firms do not have resources for full range of
support for new, complex infrastructure
Leading consulting firms: Accenture, I B M Global Services,
H P, Infosys, Wipro Technologies
Software integration: ensuring new infrastructure works with
legacy systems
Legacy systems: older T P S created for mainframes that
would be too costly to replace or redesign
What Are the Current Trends in
Computer Hardware Platforms? (1 of 5)
The mobile digital platform
Smartphones
Tablet computers
Digital e-book readers and apps (Kindle)
Wearable devices
Consumerization of I T and B Y O D (bring your own device)
Forces businesses and I T departments to rethink how I T equipment
and services are acquired and managed
Interactive Session: Management: What
Should Firms Do About BYOD?
Class discussion
What are the advantages and disadvantages of allowing employees to
use their personal mobile devices for work?
What management, organization, and technology issues should be
addressed when deciding whether to allow employees to use their
personal mobile devices for work?
Compare and evaluate how the companies described in this case study
dealt with the challenges of BYOD.
Allowing employees to use their own smartphones for work will save a
company money. Do you agree? Why or why not?
Quantum computing
Uses quantum physics to represent and operate on data
Dramatic increases in computing speed
Virtualization
Allows single physical resource to act as multiple resources (i.e., run
multiple instances of O S); also enables multiple physical resources
(such as storage devices) to appear as a single logical resource (such as
in software-defined storage (SDS))
Reduces hardware and power expenditures
Facilitates hardware centralization
Cloud computing
On-demand computing services obtained over network
Infrastructure as a service (I a a S)
Software as a service (S a a S)
Platform as a service (P a a S)
Cloud can be public or private
Allows companies to minimize I T investments
Drawbacks: Concerns of security, reliability
Hybrid cloud computing model
Figure 5.9 Cloud Computing Platform
Figure 5.10 Amazon Web Services
Interactive Session: Organizations: Look
to the Cloud
Class discussion
What business benefits do cloud computing services
provide? What problems do they solve?
What are the disadvantages of cloud computing?
What kinds of businesses are most likely to benefit from
using cloud computing? Why?
Edge computing
Servers at the edge of the network, near the source of the
data
Reduces latency and network traffic
Green computing (Green I T )
Practices and technologies for manufacturing, using,
disposing of computing and networking hardware
Reducing power consumption a high priority
Green data centers
High-performance, power-saving processors
Multicore processors
Power-efficient microprocessors
What Are the Current Computer Software
Platforms and Trends? (1 of 3)
Linux and open-source software
Produced by community of programmers
Examples: Apache web server, Mozilla Firefox browser, OpenOffice
Linux
Software for the web: Java, H T M L, and H T M L 5
Java Virtual Machine
Web browsers
H T M L and H T M L 5
Ruby and Python
Web services and service-oriented architecture
Web services
X M L : Extensible Markup Language
S O A : service-oriented architecture
Set of self-contained services that communicate with one
another to create a working software application
Software developers reuse these services in other
combinations to assemble other applications as needed
Figure 5.11 How Dollar Rent A Car Uses
Web Services
Software outsourcing and cloud services
Software packages and enterprise software
Software outsourcing
Cloud-based software services and tools
Service Level Agreements (S L A s): formal agreement
with service providers
Mashups and apps
Figure 5.12 Changing Sources of Firm
Software
Dealing with Platform and Infrastructure
Change
As firms shrink or grow, I T needs to be flexible and scalable
Scalability
Ability to expand to serve larger number of users
For mobile computing and cloud computing
New policies and procedures for managing these new platforms
Contractual agreements with firms running clouds and
distributing software required
Management and Governance
Governance
Who controls I T infrastructure?
How should I T department be organized?
Centralized
Central I T department makes decisions
Decentralized
Business unit I T departments make own decisions
How are costs allocated between divisions, departments?
Making Wise Infrastructure Investments
Under-investment and over-investment can hamper firm
performance
Rent-versus-buy
Cloud computing
Security requirements
Impact on business processes and workflow
Outsourcing
Total Cost of Ownership (T C O) Model
Analyzes direct and indirect costs
Hardware, software account for only about 20% of T C O
Other costs: Installation, training, support, maintenance,
infrastructure, downtime, space, and energy
T C O can be reduced
Use of cloud services, greater centralization and
standardization of hardware and software resources
Competitive Forces Model for I T
Infrastructure Investment
Market demand for firm’s services
Firm’s business strategy
Firm’s I T strategy, infrastructure, and cost
Information technology assessment
Competitor firm services
Competitor firm I T infrastructure investments
Figure 5.13 Competitive Forces Model
for I T Infrastructure
How Will M I S Help My Career?
The Company: A1 Tech I T Consulting
Position Description: Entry-level I T consultant
Job Requirements
Interview Questions
Author Tips
Copyright
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Managing the Digital Firm

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