LU01

Ever Changing Technology

E223 - IT for Supply Chain Management

Overview of E223 -
IT for Supply Chain Management
InfoCom Data
Data Mining
Fundamentals Analytics

Automation I Data Retrieval IT Project

Management I

Automation II Data Modelling IT Project

Management II

AIDC AIDC Business E‐Business

Technology I Technology II Collaboration Strategies
Phase-1
Classification of IT
Supply Chain Management and IT
• The traditional way of managing the supply chain operations
might not be able to survive. Why ?
Information Technology (IT)
IT refers to the computer hardware and software for processing
and storing data, the communications technology (networks) for
transmitting data and the data that are processed by the hardware
and software and sent through the network both before and after
processing. (Managing Information Technology, 2009, Brown et al)
Information Technology (IT)
The technology of computers, telecommunications, and other
devices that integrate data, equipment, personnel, and problem
solving methods in planning and controlling business activities.

IT provides the meaning of storing, encoding, processing,

processing, analysing, transmitting, receiving, and printing text,
audio, or video information.
Classification of Information Technologies

• Computer hardware technologies:

• microcomputers, midsize servers, and
large mainframe systems, and the input,
output, and storage devices that support
them.

• Computer software technologies:

• operating system software, web
browsers, software productivity suites,
software drivers, database management
systems, software for business
applications like customer relationship
management and supply chain
management, and other software-based
components and modules.
Classification of Information Technologies
• Telecommunications network technologies:
• telecommunications media, processors, and software
needed to provide wire-based and wireless access and
support for the Internet and private Internet-based networks
such as intranets and extranets.

• Data resource management technologies:

• database management system software for the
development, access, and maintenance of the databases of
an organization.
Hardware Technologies
• All hardware falls into one of the following categories:
• Input device - tool you use to enter information and
commands. E.g. keyboard, mouse, touch screen, game
controller, and bar code reader.
• Output device - tool you use to see, hear, or recognize the
results of your information-processing requests.
E.g. printer, monitor, and set of speakers.
• Storage device - tool you use to store information for use at
a later time. E.g. hard disk, flash memory card, and DVD.
• Central Processing Unit (CPU) - the hardware that
interprets and executes the system and application software
instructions and coordinates the operation of all the hardware.
E.g. Intel Core i3, i5, i7, Pentium and Xeon.
• Memory - RAM is a temporary holding area for the
information you’re working with as well as the system and
application software instructions that the CPU currently
needs.
• Connecting device - includes such things as a USB port into
which you would connect a printer
Hard disk RAM CPU USB cable
Software Technologies
• There are two main types of software:
Application and System

• Application software is the software that enables you to

solve specific problems or perform specific tasks. E.g.
Microsoft Word, payroll software, collaborative software, and
inventory/warehouse management software.

• System software handles tasks specific to technology

management and coordinates the interaction of all
technology devices. Within system software, you’ll find
operating system software and utility software.
Software Technologies
• System Software
 Operating system software controls your application
software and manages how your hardware devices work
together.
Examples include MS Windows (and all its variations), Apple Mac
OS, Linux (an open-source operating system), and Unix.

 Utility software provides additional functionality to your

operating software.
Utility software includes anti-virus software, screen savers,
uninstaller software, file security software (which usually includes
encryption), and a host of others. Example of an utility software
called the BIOS.

 Bios: is a piece of software that is permanently stored in a

chip on the motherboard. When you first turn on a computer,
the BIOS program is initiated. It performs a hardware check
and makes sure that certain crucial pieces of hardware are
present and functioning properly. If everything is fine, it will
display a startup screen, the first thing you see on your
monitor.
Types of Software
Telecommunications Network Technologies
It consists of communications media, communications
processors, network access and control software
• Communications media – tools that enables connection over
the network (E.g. Network Interface Card – NIC –
wireless/wired) or to interconnect workstations and computer
peripherals (E.g. telephone line, coaxial cable, wireless, blue-
tooth, infrared)
• Telecommunications device - tools that you use to send
information to and receive it from another person or computer
in a network.
E.g. Modem
• Telecommunications control software – programs that
control telecommunications activities and manage
telecommunications networks.
E.g. Network traffic monitoring program, User management and
network access control program

NIC Modem Network

Traffic
Monitoring
Program
Data resource management technologies
• Data resource management is a critical management
activity.
• Management roles include database administration, data
planning, and data administration.
• Under the database management approach, data records
are consolidated into databases that can be accessed by
many different application programs, serving multiple users.

Storage
of data

Generates
reports
• Several types of databases are used by the company are such as
end-user databases, external databases on internet or online
service, operational database of a company, data warehouse.
Activity - 1
Activity-1
Classify the following item(s) into a suitable information technology
and identify the category that it falls into.

Item Description Classification Category

The picture shows an

equipment that was
used in the data
centre. Each cartridge
is 2TB (Tera‐byte).

It consists of
programs and data
that runs on
computers and
manages the
computer hardware…
(Ubuntu Linux)
Visit to Data Centre
IT Assets and Metrics
Activity-2: Visit to Data Centre
List down your observations from visit.
Observations

Data Centre setup

Environmental Control

Protection System

Disaster recovery strategy

Data Centre Layout

Arrangement of server, network equipment

Information Technology in the Data Centre

Software Application

Data Storage

Network

Type of Hardware
Physical access restrictions
• Door controls
• Data centre doors must be equipped with a sturdy lock or
card access system. Only the handful of people who have
access to the server environment have the access. The card
reader can track and log who enters and leaves a Data
Centre.
• Closed-Circuit Television Coverage
• This provide a real-time surveillance of who enters the server
environment. The camera is typically monitored by company
security personnel.
• Access Policies and Procedures
• Establish a data centre policy that defines who is allowed to
enter the room and under what circumstances.

Card Access CC TV Coverage

Environmental Control
• Data Centre Environmental Control:
• Data Centre must cool the networking devices, and other
machines that it houses. The environmental control in a
building that regulate temperatures and air circulation are
referred to collectively as HVAC— heating, ventilation, and
air conditioning. This HVAC infrastructure has three jobs to
do in a Data Centre:
• Keep temperatures low (between 18.3 and 23.9° Celsius)
• Keep them constant
• Diffuse hot spots created by clusters of equipment
Cooling in data centre

Under floor
Server Racks routing and
Cooling Process termination of
cables
Protection systems
• A Data Centre is just as vulnerable to fire as any other
conventional office building space Computer hardware
can potentially short circuit, for example. or flames
might start in another part of the building and then
spread to the server environment. Whatever the
cause, comprehensive fire suppression system must
be installed. The following are some implementation:

• Suppression Materials - Gaseous suppressant is most

commonly used in server environments because it does not
harm servers or leave a large mess behind after discharging.
E.g.
 Inert gas: Argonite (Argon – 50% + Nitrogen – 50%) or
 FM‐200 ® is a colourless, odourless gas containing only carbon,
hydrogen and fluorine, thereby lacking the ozone‐depleting
presence of bromine atoms.
Protection systems
• Sprinklers - Install a dry system into your server
environment. This reduces the risk of water being
accidentally spilled into the room if the pipe is damaged.

• Air sampling and smoke detection – 2 types: smoke

detection system that continuously sample the air or one that
detects heat from fire and discharge the extinguishing
materials.

• Fire alarms

• Handheld extinguishers
Monitoring Devices
• Web Cameras
• A great way to tell what’s happening in your Data Centre is to
deploy web cameras that leverage the room’s network.
Connect them to a port on the Data Centre’s existing
networking equipment and transmit the live images across
your internal network.

• Amperage Meters
• An additional method of keeping an eye on the Data Centre
is having your server cabinet power strips equipped with
amperage meters. These devices display the amount
electrical load that is put upon them. This tells a Data Centre
user how close they are to reaching the maximum electrical
capacity of a power strip.
Monitoring Devices
• Temperature Sensors
Yet another useful thing to know about your Data Centre is how
hot or cold it is. Monitoring the temperature of the room can
alert you to a malfunctioning air handler, air flow problems. or
hot spots that are forming due to increased server density at a
particular cabinet location.

• Humidity Sensors
Humidity measurement determines the amount of water vapor
present in air, or a pure gas. Humidity measurement in
industries is critical because it may affect the business cost of
the product and the health and safety of the personnel.
Availability Metric
• Availability Metric
• measures the degree at which the data centre is on line.
• Availability metrics can also justify the expense of additional
Data Centre infrastructure, either when designing a new
room or when upgrading an existing one.

• Outage
• refers to the cumulative number of minutes the data centre
was offline during the defined period of time. By keeping
track of the lengths of outages throughout the year, you can
calculate availability for any time period—monthly, quarterly,
or annually.
Downtime
• Outage expenses can range from lost potential
revenue to a damaged reputation with customers and
in the marketplace. The cost of downtime varies from
industry to industry. For some, even an hour or two
can be devastating.

• Downtime can be classified into three different areas:

• Mission critical - If the application is down, then critical
business processes and/ or customers are affected in a
way that has massive impact on the company’s profitability
• Business Critical - Downtime that is often not visible to
customers, but does have a significant cost associated
with it
• Task Critical - The outage affects only a few users, or the
impact is limited and the cost is insignificant.
Availability Metric
• Percentage of availability = (Time – Outage) /Time
• E.g. Pun Logistics data centre was offline for 10 hours over
the course of a 31-days (August 2018). There are total
44,640 minutes (31 days x 24 hrs in a day x 60 min in an
hour)
(44,640 - 10*60) ÷ 44,640 = 98.65 % availability

• If the target availability of unplanned outage per month is 99 %,

the data centre does not meet the % of availability.

• To meet the target availability, the number of hour of outage

should be < 446.4 min per month.
IT Governance - Motivation
• Motivation for IT governance:
• Organizations today are subject to many regulations
governing data retention, confidential information, financial
accountability and recovery from disasters. IT governance
ensures internal controls.

• The purpose of IT governance is to ensure that IT’s

performance meets the following objectives:
• Alignment of IT with the enterprise and realization of the
promised benefits
• Use of IT to enable the enterprise by exploiting opportunities
and maximizing benefits
• Responsible use of IT resources
• Appropriate management of IT-related risks
Regulation and governance
• Examples of organizations and their regulations in
Singapore
• IDA – Info-communications, Telecoms, Postal Services,
Electronic Transactions
• AVA – Food, Animals and Pets, Agriculture and Fisheries
• ACRA – Accounting and Corporate regulatory, Accountants,
Business registration, Companies, LLP
• Example:
• Singapore Green Data Centre Standard
• IDA code of practice for ISP
Singapore Green Data Centre Standard
• Green data centre
• A data centre designed and/or operated for optimized energy
efficiency and minimum environmental impact.
• Purpose of Green Data Centre Standard
Establish policies, systems and processes to improve the energy
efficiency of data centres
• Reduce data centres’ energy consumption and operating costs
• Enhance data centres competitiveness
• Lessen data centres’ impact on the environment
• Approach
• Standard adopts the Plan‐Do‐Check‐Act cycle.
• It is a four step problem‐solving process used for
continuous process improvement
Information Systems
Information System
• A combination of hardware, software, infrastructure
and trained personnel organized to facilitate planning,
control, coordination, and decision making in an
organization.

An analogy to production process

Types of Information Systems
Type Information Processing Information User/Usage
Input Output
Aggregate data: • Advanced • Projections, Users: Senior
Executive • Soft data – Graphics, • Representation of Managers
Information news and non- • Simulation complex Usage:
System analytical data information and • Executive-level
• Hard data – trends decision making
(EIS) facts and • Monitoring internal
numbers and external events
• Summary • Routine report • Summary and Users: Used at middle
transaction • Low level model exceptions managerial level of
Management data • Simple analysis reports such as the organization
Information • High volume o Sales forecasting, Usage:
System data Manufacturing • Management of IS
• Simple model planning and in organizations
(MIS) scheduling, • Specific information
o Inventory systems for mid-
management and level managers
planning
• Transactions, • Listing • Detailed reports Users: Operations
Transaction
• Events • Sorting • Lists personnel,
Processing
• Merging • Summary supervisors
System
• Updating • E.g. payroll,
sales/ ordering,
(TPS)
registration
Types of Information Systems

Type Information Processing Information User/Usage

Input Output
• Low volume data • Interactive • Special reports with Users:
• Massive database • Simulations text and graph Professional,
Decision
optimized for data • Analysis • Decision analyses Staff managers,
Support System
analysis e.g. what if analysis accounting
• Responses to
(DSS)
queries

Office • Document • Document • Documents/ User: Admin

Automation • Schedules manageme scanned document personnel
System nt • Schedules
• Scheduling • Email
(OAS)
Example
Information dependency / exchange
Reports

Production
Master
Data Product
cost
Materials data
Resource
Planning MIS
System

Product
Quantity
data

Transaction Processing System Management Information System

 Sources of Software Applications
Producers When to use Internal Staffing
Requirement
When task requires custom Internal staff may be needed,
support and system can’t be built depending on application
IT Services firm
internally or system needs to be
sourced
When supported task is generic Some IS and user staff to
Packaged Software
define requirements and
Producers
evaluate packages

Enterprise Solutions For complete systems that cross Some internal staff necessary
Vendors (ERP) functional boundaries but mostly need consultants

Faster access to applications Freeing internal IT staff

than internal development
Cloud Computing
Lower-cost access to corporate-
quality applications
When supported task is generic Some IS and user staff to
Open Source Software but cost is an issue define requirements and
evaluate packages
When resources and staff are Internal staff necessary though
In-house developers available and system must be staff size may vary
built from scratch
 Cloud Computing Platform
Cloud computing is a model for enabling ubiquitous, convenient, on‐
demand network access to a shared pool of configurable computing
resources (e.g., networks, servers, storage, applications, and services)
that can be rapidly provisioned and released with minimal
management effort or service provider interaction.

This cloud model promotes availability and consists of

5 Essential Characteristics 3 Service Models 4 Deployment

• On-demand self-service • SaaS Models
• Resource pooling • PaaS • Public Cloud
• Rapid elasticity • IaaS • Private Cloud
• Measured service • Hybrid Cloud
• Broad network access • Community Cloud

Source: The NIST Definition of Cloud Computing, Special Publication 800‐145, Sep‐2011
Cloud Computing - Essential Characteristics

• On‐demand self‐service. A consumer can unilaterally provision computing

capabilities, such as server time and network storage, as needed automatically
without requiring human interaction with each service provider.

• Broad network access. Capabilities are available over the network and
accessed through standard mechanisms that promote use by heterogeneous
thin or thick client platforms (e.g., mobile phones, tablets, laptops, and
workstations).

• Measured service. Cloud systems automatically control and optimize resource

use by leveraging a metering capability at some level of abstraction
appropriate to the type of service (e.g., storage, processing, bandwidth, and
active user accounts). Resource usage can be monitored, controlled, and
reported, providing transparency for both the provider and consumer of the
utilized service.
Cloud Computing - Essential Characteristics
• Resource pooling. The provider’s computing resources are pooled to serve
multiple consumers using a multi‐tenant model, with different physical and
virtual resources dynamically assigned and reassigned according to consumer
demand. There is a sense of location independence in that the customer
generally has no control or knowledge over the exact location of the provided
resources but may be able to specify location at a higher level of abstraction
(e.g., country, state, or datacenter). Examples of resources include storage,
processing, memory, and network bandwidth.

• Rapid elasticity. Capabilities can be elastically provisioned and released, in

some cases automatically, to scale rapidly outward and inward commensurate
with demand. To the consumer, the capabilities available for provisioning often
appear to be unlimited and can be appropriated in any quantity at any time.

Source: The NIST Definition of Cloud Computing, Special Publication 800‐145, Sep‐2011
 Cloud Computing - Service Model
Cloud Software as a Service (SaaS).
• The capability provided to the consumer is to use the provider’s applications
running on a cloud infrastructure.
• The applications are accessible from various client devices through a thin
client interface such as a web browser (e.g. web‐based email).
• The consumer does not manage or control the underlying cloud infrastructure
including network, servers, operating systems, storage, or even individual
application capabilities, with the possible exception of limited user‐specific
application configuration settings.

Examples:
 Internet Services
 Blogging/Surveys/Twitter, Social Networking
 Information/Knowledge Sharing (Wiki)
 Communication (e‐mail), Collaboration (e‐meeting)
 Productivity Tools (office)
 Enterprise Resource Planning (ERP)

Source: The NIST Definition of Cloud Computing, Special Publication 800‐145, Sep‐2011
Cloud Computing - Service Model
Cloud Platform as a Service (PaaS)
• The capability provided to the consumer is to deploy onto the cloud
infrastructure consumer‐created or acquired applications created using
programming languages and tools supported by the provider.
• The consumer does not manage or control the underlying cloud infrastructure
including network, servers, operating systems, or storage, but has control over
the deployed applications and possibly application hosting environment
configurations.

Examples:
 Application Development, Data, Workflow, etc.
 Security Services (Single Sign‐On, Authentication, etc.)
 Database Management
 Directory Services

Source: The NIST Definition of Cloud Computing, Special Publication 800‐145, Sep‐2011
Cloud Computing - Service Model
Cloud Infrastructure as a Service (IaaS)
• The capability provided to the consumer is to provision processing, storage,
networks, and other fundamental computing resources where the consumer is
able to deploy and run arbitrary software, which can include operating systems
and applications.
• The consumer does not manage or control the underlying cloud infrastructure
but has control over operating systems, storage, deployed applications, and
possibly limited control of select networking components (e.g., host firewalls).

Examples:
• Mainframes, Servers, Storage
• IT Facilities/Hosting Services

Source: http://info.apps.gov/content/what‐are‐services
Services Available to a Cloud Consumer

Source: NIST SP‐500‐291

Cloud Computing - Deployment Model
• Private cloud. The cloud infrastructure is provisioned for exclusive use
by a single organization comprising multiple consumers (e.g., business
units). It may be owned, managed, and operated by the organization, a
third party, or some combination of them, and it may exist on or off
premises. E.g. Singapore Government G‐Cloud maintain and deploy by
SingTel.

• Community cloud. The cloud infrastructure is provisioned for exclusive

use by a specific community of consumers from organizations that have
shared concerns (e.g., mission, security requirements, policy, and
compliance considerations). It may be owned, managed, and operated
by one or more of the organizations in the community, a third party, or
some combination of them, and it may exist on or off premises.

Source: The NIST Definition of Cloud Computing, Special Publication

800‐145, Sep‐2011
Cloud Computing - Deployment Model
• Public cloud. The cloud infrastructure is provisioned for open use by
the general public. It may be owned, managed, and operated by a
business, academic, or government organization, or some
combination of them. It exists on the premises of the cloud
provider.

• Hybrid cloud. The cloud infrastructure is a composition of two or

more distinct cloud infrastructures (private, community, or public)
that remain unique entities, but are bound together by
standardized or proprietary technology that enables data and
application portability (e.g., cloud bursting for load balancing
between clouds).

Source: The NIST Definition of Cloud Computing, Special Publication 800‐145, Sep‐2011
Private, Community, Public, Hybrid cloud

Source: http://info.apps.gov/content/what‐are‐deployment‐models
Cloud Computing Examples

Source: NJIT – Embracing the cloud

Vendor selection criteria
Sample criteria
Activity - 3

• Identify sample criteria for choosing off-the-shelf

Software or Cloud solutions provider.
Systems Development Life Cycle
(SDLC)
Systems Development Life Cycle (SDLC)

Why SDLC?
• An attempt to establish a structured approach to systems
development.
• For management, each stage of the life cycle was a milestone with an
associated date and set of deliverables.

System Development Methodology

• Standard process followed in an organization
• Consists of following phases:
• Planning
• Analysis
• Design
• Implementation
• Maintenance
Different organizations / developers adopt true System Development
Methodology or modify to suit their developmental needs.
Waterfall model, V‐model, Iterative model, Spiral model, Prototype
model, RAD, JAD, etc.
 Waterfall Model
• The waterfall model was one of the earliest models to be
designed.
• It has a natural timeline where tasks are executed in a
sequential fashion.
• Testing tends to happen towards the end of the project life
cycle so defects are detected close to the live
implementation date.
• It has been difficult to get feedback passed backwards up
the waterfall.

This model assumes that requirements will

remain stable after they are defined.
V-Model
• A sequential path of execution of processes.
• Each phase must be completed before the next phase
begins.
• Testing is emphasized in this model.
• The testing procedures are developed early in the life cycle
before any coding is done, during each of the phases
preceding implementation.
 Prototyping Model
• The analyst works with users to
determine the initial or basic
requirements for the system. The
analyst then quickly builds a
prototype.
• When the prototype is completed,
the users work with it and tell the
analyst what they like and do not
like about it.
• The analyst then uses this
feedback to improve the
prototype and takes new version
back to the users. This iterative
process continues until the users
are relatively satisfied with what
they have seen
Iterative Development Model
• Divided into increments or builds with each increment adding new functionality.
• The initial increment will contain the infrastructure required to support the initial
build functionality. The increment produced by an iteration may be tested at
several levels as part of its development.
• Subsequent increments will need testing for the new functionality, regression
testing of the existing functionality, and integration testing of both new and
existing parts.
• Regression testing is increasingly important on all iterations after the first one.
This means that more testing will be required at each subsequent delivery phase
which must be allowed for in the project plans.
RAD (Rapid Application Development)
• Components/functions are developed in parallel as if they were mini
projects, the developments are time‐boxed, delivered, and then
assembled into a working prototype.
• The RAD development process encourages active customer feedback.
The customer gets early visibility of the product, can provide feedback
on the design and can decide, based on the existing functionality,
whether to proceed with the development, what functionality to
include in the next delivery cycle or even to halt the project if it is not
delivering the expected value.
• An early business‐focused solution in the market place gives an early
return on investment (ROI) and can provide valuable marketing
information for the business. Validation with the RAD development
process is thus an early and major activity.
JAD (Joint Application Design)
• Participants
• Session leader
• Users
• Managers
• Sponsor
• Systems analysts
• Scribe
• IS staff

• End Result
• Documentation detailing
existing system
• Features of a replacement
system
 Going further …

Enterprise Applications

Source: http://www.desl.net/applications/
Typically …
• It is not always necessary to develop all the required
software from scratch:
Open source software, Free ware, Shareware, etc.
• A company should carefully evaluate the approaches to use
with respect to the need and number of internal IT staffs in
the company.
• SME might not have capacity to invest on expensive
software. Cloud platform would be a viable option in such
cases.
• The factors to consider:
Outages, Cost (development cost vs purchasing cost), functionality,
vendor support, viability of vendor (whether they will stay in
business), documentation, training, flexibility in customization (user
and vendor), response time, ease of installation, development
timeframe, confidentiality of data.
Learning Outcomes
• Classify information technologies into different types of
technologies
• Describe the characteristics of an information system and
classify different types of information systems
• Illustrate different software development models and
alternative approaches to development
• Understand the essential characteristics, service and
deployment of cloud computing models
• Explain the importance and features of a data centre
Today’s Assessment
DAKOTA Logistics provides 3PL services to its customers and operates in
Singapore, Malaysia, Philippines and Indonesia. Since its inception in 1999,
the data is maintained in FoxPro database with simple text based user
interface.
The management is now considering a new GUI application with VBA for
enriched visual appearance which uses MySQL database. It will provide
same functionality as that of the current FoxPro application, enhanced and
enriched with high visual experience. The developed application will be
placed on cloud platform for it to be accessible across all its locations.
DAKOTA considering Cool Cloud Solutions provider for this requirement
support the need. There were disruptions in Cool Cloud’s services due to
the outages of 15hrs in August and 14.5hrs in September.

i. Which development model would be more suitable for this need?

ii. Identify suitable cloud service model for the developed software.
iii. If DAKOTA prefers 98% availability, does Cool Cloud Solutions meet the
requirements? What is your recommendation?
Support your answer(s) with good reasoning.