McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 7Infrastructure, Cloud Computing, Metrics, and Business Continuity

Planning: Building and Sustaining the Dynamic Enterprise

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STUDENT LEARNING OUTCOMES

1. Describe how an SoA can be used as a philosophical approach to help the organization of the future.

2. Define and describe the various hardware and software infrastructure considerations.

3. Describe cloud computing, its various implementations, and its advantages.

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STUDENT LEARNING OUTCOMES

4. Compare and contrast commonly used metrics for assessing the success of IT systems.

5. Describe business continuity planning (BCP) and its phases.

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MONEY WILL ALWAYS BE MONEY

The use of The use of paper money is paper money is on the decline; on the decline;

the use of the use of electronic electronic

money has money has more than more than

doubled in the doubled in the past 10 years.past 10 years.

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Questions1. Do you use an electronic form of

money such as Google wallet or a smartphone app? If so, which one?

2. Which do you think is easier—the counterfeiting of paper money or the counterfeiting of electronic money? Why?

3. Why does the government continue to mint pennies when the process costs more than a penny?

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INTRODUCTION: SoA

Service-oriented architecture (SoA) - perspective that focuses on the development, use, and reuse of small self-contained blocks of code (called services) to meet all application software needs

Software code is not developed solely for a single application

Rather services are built that can be reused

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INTRODUCTION: SoA

Can extend SoA to the entire organization to be Lean and agile using resources in the best

way Proactive in addressing changes in the market Quick to respond and adapt to advances in

technology Transformational in its processes, structure

and HR initiatives to match a changing and dynamic workforce

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INTRODUCTION: SoA

SoA focused specifically on IT Customers End users Software development Information needs Hardware requirements

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INTRODUCTION: SoA

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INTRODUCTION: SoA

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INTRODUCTION: SoA

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INTRODUCTION: SoA

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HARDWARE AND SOFTWARE

INFRASTRUCTURE

Infrastructure – the structure beneath a structure

IT infrastructure is the implementation of your organization’s architecture

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ERP Revisited

From Chapter 2, Enterprise resource planning (ERP) system – collection of integrated software for business management, accounting, finance, supply chain management, inventory management, customer relationship management, e-collaboration, etc

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ERP and SoA

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Supporting Network Infrastructures

Computer network – fundamental underlying infrastructure for any IT environment Distributed Client/server Tiered

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Distributed Network Infrastructure

Distributed – distributing the information and processing power of IT systems via a network

First true network infrastructure Processing activity is allocated to the

location(s) where it can most efficiently be done

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Distributed Network Infrastructure

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Client/Server Infrastructure

Client/server infrastructure (network) one or more computers that are servers provide services to other computers, called

clients Servers and clients work together to

optimize processing, information storage, etc

When you surf the Web, the underlying network infrastructure is client/server

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Client/Server Infrastructure

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Tiered Infrastructure

Tiered (layer) – the IT system is partitioned into tiers (layers) where each tier performs a specific type of functionality 1-tier – single machine 2-tier – basic client/server relationship 3-tier – client, application server, data or

database server N-tier – scalable 3-tier structure with more

servers

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Tiered Infrastructure

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CLOUD COMPUTING

Hottest term in technology today Cloud computing – model in which

any and all IT resources are delivered as a set of services via the Internet Application software Processing power Data storage Backup facilities Development tools Literally everything

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CLOUD COMPUTING

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Cloud Computing Goals

Pay for only what you need and use

Real-time scalability (up or down)

Align computing costs with level of business activity

Reduce fixed costs in IT infrastructure

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Many Implementations of the Cloud

Software-as-a-service (SaaS) Platform-as-a-service (PaaS) Infrastructure-as-a-service (IaaS)

Cloud demo video

Demo video of IaaS

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Software-As-A-Service

SaaS - delivery model for software in which you pay for software on a pay-per-use basis instead of buying the software outright.

Most well known Supports multi-tenancy

multiple people can simultaneously use a single instance of a piece of software.

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Platform-As-A-Service

PaaS – delivery model for software identical to SaaS with the additional features of1. Access to software development tools to

alter the way in which the software works by adding new modules (services) and/or making modifications to existing modules

2. The ability to customize data entry forms, screens, reports, and the like

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Infrastructure-As-A-Service

IaaS - model in which you acquire all your technology needs—storage hardware and data, network equipment, application software, operating system software, data backups, CPU processing capabilities, anti-you-name-it software—in the cloud.

All you need – smartphone/tablet and peripheral devices (e.g., printer)

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Public and Private Clouds

Public cloud – comprises cloud services that exist on the Internet offered to anyone and any business. Amazon Web Services (AWS) Windows Azure Rackspace Cloud Google Cloud Connect ElasticHosts

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Public and Private Clouds

Private cloud cloud computing services established and

hosted by an organization on its internal network available only to employees and

departments within that organization. All benefits of cloud computing,

except held private within an organization

Of course does COST more

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Advantages of the Cloud

Lower capital expenditures Lower barriers to entry Immediate access to a

broad range of application software

Real-time scalability

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IT SUCCESS METRICS

To justify costs of technology, you need to measure its success

Metrics are also called benchmarks, baseline values a system seeks to attain.

Benchmarking – process of continuously measuring system results and comparing them to benchmarks

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Efficiency & Effectiveness Metrics

Efficiency – doing something right In the least time At the lowest cost With the fewest errors

Effectiveness – doing the right things Getting customers to buy when they visit

your site Answering the right question with the right

answer the first time

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Efficiency & Effectiveness Metrics

Bottom-line initiatives typically focus on efficiency, while top-line initiatives Bottom-line initiatives typically focus on efficiency, while top-line initiatives tend to focus on effectiveness.tend to focus on effectiveness.

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Types of IT Success Metrics

Infrastructure-centric metrics Web-centric metrics Call center metrics

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Infrastructure-Centric Metrics

Measure of efficiency, speed, capacity

Throughput – amount of information that can pass through a system in a given amount of time

Transaction speed – speed at which a system can process a transaction

System availability – the average amount of time a system is down or unavailable

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Infrastructure-Centric Metrics

Accuracy – measured inversely as error rate, or the number of errors per thousand/million that a system generates

Response time – average time to respond to a user-generated event like a mouse click

Scalability – conceptual metric related to how well a system can be adapted to increased demands

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Web-Centric Metrics

Measure success of your e-business initiatives

Unique visitors – # of unique visitors to a site

Total hits – number of visits to a site Page exposures – average page

exposures to an individual visitor Conversion rate - % of potential

customers who visit and actually buy

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Web-Centric Metrics

Click-through - # of people who click on an ad and are taken to the sponsor’s site

Cost-per-thousand (CPM) – cost of ad per thousand customer views or clicks

Abandoned registrations - # who start to register at your site and then abandon the process

Abandoned shopping carts - # who create a shopping cart and then abandon it

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Call Center Metrics

Abandon rate - % number of callers who hang up while waiting for their call to be answered

Average speed to answer (ASA) – average time, usually in seconds, that it takes for a call to be answered by an actual person

Time service factor (TSF) - % of calls answered within a specific time frame, such as 30 or 90 seconds

First call resolution (FCR) - % of calls that can be resolved without having to call back

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BUSINESS CONTINUITY PLANNING

Business continuity planning (BCP) – rigorous and well-informed organizational methodology for developing a business continuity plan, a step-by-step guideline defining how the organization will recover from a disaster or extended disruption

BCP is very necessary today given terror threats, increased climate volatility, etc

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BUSINESS CONTINUITY PLANNING METHODOLOGY

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BCP METHODOLOGY

1. Organizational strategic plan2. Analysis3. Design4. Implementation5. Testing6. Maintenance

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Organizational Strategic Plan

It all starts here The strategic plan defines what

is and what is not important You must have a business

continuity plan for what is important

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Analysis

Impact analysis – risk assessment, evaluating IT assets, their importance, and susceptibility to threat

Threat analysis – document all possible major threats to organizational assets

Impact scenario analysis – build worst-case scenario for each threat

Requirement recovery document – identifies critical assets, threats to them, and worst-case scenarios

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Design

Build disaster recovery plan, detailed plan for recovering from a disaster. May include Collocation facility – rented space and

telecommunications equipment Hot site – fully equipped facility where

your company can move to Cold site – facility where your company

can move to but has no computer equipment

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Design

Disaster recovery plan should include a Disaster recovery plan should include a disaster recovery cost curvedisaster recovery cost curve, which , which charts the cost of unavailable information/technology compared to the cost to charts the cost of unavailable information/technology compared to the cost to

recover from a disaster over time.recover from a disaster over time.

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Implementation

Engage any businesses that will provide collocation facilities, hot sites, and cold sites

Implement procedures for recovering from a disaster

Train employees Evaluate each IT system to ensure that it

is configured optimally for recovering from a disaster

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Testing

As opposed to traditional SDLC, testing in BCP methodology occurs after implementation

Simulate disaster scenarios Have employees execute disaster

recovery plans Evaluate success and refine as

necessary

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Maintenance

Perform testing annually, at a minimum

Change business continuity plan as organizational strategic plan changes

Evaluate and react to new threats No “system” is ever complete