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Planning IT Architecture& BPR

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Planning IT Architecture

IT Architecture An IT architecture consists of a

description of the combination of hardware, software, data, personnel, and telecommunications elements within an organization, along with procedures to employ them.

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IT Architecture Computing Architecture Options

Centralized computing puts all processing and control authority within one computer and all other computing devices respond.

Distributed Computing handles the choices for computing at the point of the computing need; individual needs are met with individualized computing.

A Blended approach combines the two models above. The mainframe (centralized resource) can operate as a peripheral device for other (distributed) computing resources.

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Distribution Architectures Distribution Architecture

Refers to how the organization distributes data and database processing physically among the computers in a network

Manager can use DMBS with one of the four data architectures Decentralized Architecture Centralized Architecture Client/Server Architecture Distributed Architecture

Very complex Mixed Architecture

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Decentralized Centralized Client/Server Distributed

Defining Shared data No Yes Yes Yes

Characteristics Data location Distributed Centralized Centralized Distributed

Processing location

Distributed Centralized Shared Distributed

Processing power required

Low compared to centralized

High compared to centralized

Performance and usage

Performance Excellent Network Constrained

Network Constrained

Mixed

Characteristics Ease of management

Simple Easy Moderate Difficult

Redundancy High Low Low Moderate

Consistency Low High High High

Scalability High Low Moderate High

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Client/Server Architecture

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Example: Mincase XYZ minicase

The owner of a chain of five leather goods (XYZ) has decided to install a set of computerized information systems to support accounting, sales, operations, and human resource functions for the stores as an outcome of there strategic information systems planning (SISP). Located in small suburban shopping centers, these stores carry an assortment of luggage, briefcases, wallets, and other leather products as well as travel accessories and small electronic products. So far, each store in the chain has operated independently, with a single personal computer to support store functions at the manager’s discretion. Some stores use it to record transactions; others maintain inventory records on it; still others use it for primitive payroll systems. XYZ has made available $50,000 during the fiscal year to begin computerizing the company’s systems.

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Planning for Reengineering Legacy Systems

Legacy Systems are holdovers of earlier architectures that are still in use after an organization migrates to a new architecture.

The decision—to keep, improve, or replace—can present management with agonizing alternatives.

Reverse engineering is the process of examining systems to determine their present status, and to identify what changes are necessary to allow the system to meet current and future business needs.

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Business Process Reengineering Business process reengineering (BPR) refers to a

situation in which an organization fundamentally and radically redesigns its business process to achieve dramatic improvement.

Initially, attention was given to a complete restructuring of organizations.

Later, the concept was changed due to failures of BPR projects and the emergence of Web-based applications.

Today, BPR can focus on anything from the complete restructuring of an organization to the redesigning of individual processes.

Major objective of BPR = Information Integration.

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Business Processes Across Functional Areas

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The Enabling Role of ITOld Rule Intervening

TechnologyNew Rule

Information appears in only one place at one time.

Shared databases, client/server architecture, Internet, intranets

Information appears simultaneously wherever needed.

Only an expert can perform complex work.

Expert systems, neural computing

Novices can perform complex work.

Business must be either centralized or distributed.

Telecommunication and networks: client/server, intranet

Business can be both centralized and distributed.

Only managers make decisions.

Decision support systems, enterprise support systems, expert systems

Decision making is part of everyone’s job.

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Planning for Organizational Change The Business Context

Globalization of Management Organizational Flexibility, Adaptability and

Collaboration Work Teams and Empowered workers The Changing workforce Knowledge management

Information Requirements for Organizations Accessible, Reliable, Secure, and Accurate

information At appropriate cost

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Flattening the Organizational Structure

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Matrix Organizational Structure

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Modular Structure: Virtual Organizational Structure

Modular structure tied together by IT, to share skills, costs, etc.

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Networked Organizations Today some organizations are turning away from the

hierarchical organization toward the networked organization.

Networked organizations refer to organizational structures that resemble computer networks and are supported by information systems.

In the information-based economy, most people do knowledge work, and the subordinate often has more expertise than the “hierarchical” supervisor.

A flattened organization has fewer layers of management and a broader span of control than the hierarchical organization.

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Networked Organizations (cont.)

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Empowerment and Knowledge Management

Empowerment is the vesting of decision-making or approval authority in employees where, traditionally, such authority was a managerial prerogative.

Empowerment can be enhanced through IT. Empowered employees are expected to

perform better.