2 MBA SS 2015_FV.pdf

Managing Information

Systems

Summer Term 201528.3.2015

Dörte Bräunche, Dipl. Kfm., MBA

Content 21.03.2015

Introduction to Business Information Systems

Information Systems, Organizations and Strategy

Room: V5-205

28.03.2015

Information Infrastructure

Business IT TrendsThis part will be added at 27.3.2015Room: V6-113

2.05.2015

Securing Information Systems, Manage IT

Enterprise Resource Planning, CustomerRelationship & Supply Chain Management

Room: V6-113

16.05.2015

E-Commerce: Digital Markets, Digital Goods

Decision Support Systems and Knowledge Management Systems

Room: V6-113

30.05.2015

Building and Managing Systems

Project Management

Room: V6 - 113

13.06.2014

Portfolio Management

Students‘ Presentations

Room: V5 - 205

27.06.2014

Students‘ Presentations

Latest date for submissionof hard copy ofMIS report!Room: V5 - 205

2

Learning Objectives – IT Infrastructure

• Define IT infrastructure and describe its components.

• Identify and describe the stages and technology drivers of IT infrastructure evolution.

• Assess contemporary computer hardware platform trends.

• Assess contemporary software platform trends.

• Evaluate the challenges of managing IT infrastructure and management solutions.

3

Components of an IT infrastructure

A set of physical devices and software applicationsthat are required to operate the entire enterprise.

It generates IT Services in the area of:

• Computing

• Telecommunication

• Data Management

• Application Software

• Physical Facility Management

• IT Management

• IT Standard

• IT Education

• IT research & development

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Stages In It Infrastructure Evolution

Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution.

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Stages In IT Infrastructure Evolution (cont.)

Illustrated here are the typical computing configurations characterizing each of the five eras of IT infrastructure evolution.

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N-tier Client-Server-Computing

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– Moore’s law and microprocessing power

• Computing power doubles every 18 months

– 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

• As network members increase, more people want to use it (demand for network access increases)

– Declining communication costs and the Internet

Technology drivers of infrastructure evolution

8

Moore’s Law And Microprocessor

PerformancePacking more than 2 billion transistors into a tiny micro-processor has exponentially increased processing power.

Processing power has increased to more than 500,000 MIPS (millions of instructions per second).

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Falling Cost Of Chips

Packing more transistors into less space has driven down transistor cost dramatically as well as the cost of the products in which they are used.

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The Cost Of Storing Data Declines

Exponentially

Since the first magnetic storage device was used in 1955, the cost of storing a kilobyte of data has fallen exponentially, doubling the amount of digital storage for each dollar expended every 15 months on average.

Kilobytes of datathat can bestored

with one $

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Exponential Declines In Internet Communications Costs

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• IT Infrastructure has seven main components

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

Infrastructure Components

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The It Infrastructure Ecosystem

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7. Consulting and system integration services

– Even large firms do not have resources for full range of support for new, complex infrastructure

– Software integration: ensuring new infrastructure works with legacy systems

– Legacy systems: older TPS created for mainframes that would be too costly to replace or redesign

– Accenture, IBM Global Services, EDS, Infosys, Wipro, Tarta, CapGemini, T-Systems

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Infrastructure Components

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The mobile digital platform– Cell phones, smartphones (iPhone, Android, and

Blackberry) • Data transmission, Web surfing, e-mail, and IM

duties– Netbooks:

• Small lightweight notebooks optimized for wireless communication and core tasks

– Tablets (iPad)

– Networked e-readers (Kindle and Nook)

Contemporary Hardware Platform Trends

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• BYOD (Bring your own device)

– Allowing employees to use personal mobile devices in workplace

• Consumerization of IT

– New information technology emerges in consumer markets first and spreads to business organizations

– Forces businesses and IT departments to rethink how IT equipment and services are acquired and managed


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Read the Interactive Session and discuss the following questions

Interactive Session: Management

• What are the advantages and disadvantages of allowing employees to use their personal smartphones for work?

• What management, organization, and technology factors should be addressed when deciding whether to allow employees to use their personal smartphones for work?

• Allowing employees to use their own smartphones for work will save the company money. Do you agree?

SHOULD YOU USE YOUR IPHONE FOR WORK?

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Research on the Internet to get an Overview of…

• Mobile Digital Plattform

• Grid Computing

• Cloud Computing

• Autonomic Computing

• Green Computing

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• Grid computing– Connects geographically remote computers into a

single network to combine processing power and create virtual supercomputer

– Provides cost savings, speed, agility

• Virtualization– Allows single physical resource to act as multiple

resources (i.e., run multiple instances of OS)

– Reduces hardware and power expenditures

– Facilitates hardware centralization


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In cloud computing, hardware and software capabilities are a pool of virtualized resources provided over a network, often the Internet.

Businesses and employees have access to applications and IT infrastructure anywhere, at any time, and on any device.

CLOUD COMPUTING PLATFORM

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Characteristics of Cloud Computing

• On-demand Self-service

• Ubiquitous network access

• Location-independent resource pooling

• Rapid elasticity

• Measured services

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Research on the Internet to get an Overview of…

• Open-Source-Software

• Software for the Web: Java, Ajax, HTML 5

• Software-Outsourcing

• Web Services and ServiceorientedArchitecture (SOA)

• Mashups and Apps

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• Green computing

• High performance, power-saving processors

• Autonomic computing

• Open-source software

– Examples: Apache web server, Mozilla Firefox browser

• Open Source OS => Linux

– Used in mobile devices, local area networks, Web servers, high-performance computing

Contemporary Hardware/ Software Platform Trends

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• Software for the Web

– Java:

– HTML/HTML5

• Web Services

– XML: Extensible Markup Language

• More powerful and flexible than HTML

• Tagging allows computers to process data automatically

• SOA: Service-oriented architecture

Contemporary Software Platform Trends

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Dollar Rent A Car uses Web services to provide a standard intermediate layer of software to “talk” to other companies’ information systems. Dollar Rent A Car can use this set of Web services to link to other companies’ information systems without having to build a separate link to each firm’s systems.

FIGURE 5-11

HOW DOLLAR RENT A CAR USES WEB SERVICES

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– Three external sources for software:

• Software packages and enterprise software

• Software outsourcing

– Contracting outside firms to develop software

• Cloud-based software services

– Software as a service (SaaS)

– Accessed with Web browser over Internet

– Service Level Agreements (SLAs): formal agreement with service providers

– Mashups

– Apps

Contemporary Software Platform Trends

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In 2012, U.S. firms will spend more than $279 billion on software. About 35 percent of that ($98 billion) will originate outside the firm, either from enterprise software vendors selling firmwideapplications or individual application service providers leasing or selling software modules. Another 4 percent ($11 billion) will be provided by SaaS vendors as an online cloud-based service.

Changing Sources Of Firm Software

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Management and IT governance

– Who controls IT infrastructure?

– How should IT department be organized?

• Centralized

– Central IT department makes decisions

• Decentralized

– Business unit IT departments make own decisions

– How are costs allocated between divisions, departments?

Management Issues

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Total Cost of Ownership

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There are six factors you can use to answer the question, “How much should our firm spend on IT infrastructure?”

COMPETITIVE FORCES MODEL FOR IT INFRASTRUCTURE

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• Describe how the problems of managing data resources in a traditional file environment are solved by a database management system.

• Describe the capabilities and value of a database management system.

• Apply important database design principles.

• Evaluate tools and technologies for accessing information from databases to improve business performance and decision making.

• Assess the role of information policy, data administration, and data quality assurance in the management of firm’s data resources.

Learning Objectives – Data Management

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• Problem: Multiple outdated systems, duplicate, inconsistent data

• Solutions: Replace disparate legacy systems with single repository for business information

• SAP integrated software suite included modules for enterprise resource planning, and a data warehouse to support enterprise-wide tracking, reporting, and analysis

• Demonstrates IT’s role in successful data management

• Illustrates digital technology’s ability to lower costs while improving performance

Banco de Credito Del Peru Banks on Better Data Management

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A computer system organizes data in a hierarchy that starts with the bit, which represents either a 0 or a 1.

Bits can be grouped to form a byte to represent one character, number, or symbol.

Bytes can be grouped to form a field, and related fields can be grouped to form a record.

Related records can be collected to form a file, and related files can be organized into a database.

The Data Hierarchy

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Problems with the traditional file environment, different Applications:

– Data redundancy: • Presence of duplicate data in multiple files

Data inconsistency: • Same attribute has different values

– Program-data dependence:• When changes in program requires changes to data

accessed by program– Lack of flexibility– Poor security– Lack of data sharing and availability

Organizing Data in a Traditional File Environment

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Human Resources Database With Multiple VIEWS

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A relational database organizes data in the form of two-dimensional tables.

Illustrated here are tables for the entities SUPPLIER and PART showing how they represent each entity and its attributes.

Supplier Number is a primary key for the SUPPLIER table and a foreign key for the PART table.

Relational Database Tables

Entity Supplier

Entity Part

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The Three Basic Operations Of a Relational DBMS

• SELECT: Creates subset of data of all

records that meet stated criteria

Part Nr. = 137, 150

• JOIN: Combines relational tables to provide

user with more information than available in

individual tables, Foreign Key _Supplier Nr.

• PROJECT: Creates subset of columns in

table, creating tables with only the

information specified

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Capabilities of database management systems– Data definition capability:

Specifies structure of database content, used to create tables and define characteristics of fields

– Data dictionary: Automated or manual file storing definitions of data elements and their characteristics

– Data manipulation language: Used to add, change, delete, retrieve data from database • Structured Query Language (SQL)• Microsoft Access user tools for generating SQL

– Many DBMS have report generation capabilities for creating polished reports (Crystal Reports)

The Database Approach to Data Management

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Big data• Massive sets of unstructured/semi-structured data from

Web traffic, social media, sensors, and so on

• Petabytes, exabytes of data

• Volumes too great for typical DBMS

• Can reveal more patterns and anomalies

Using Databases to Improve Business Performance and Decision Making

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• Business intelligence infrastructure

– Today includes an array of tools for separate systems, and big data

• Contemporary tools:

– Data warehouses

– Data marts

– Hadoop

– In-memory computing

– Analytical platforms


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• Data warehouse: – Stores current and historical data from many core

operational transaction systems– Consolidates and standardizes information for use across

enterprise, but data cannot be altered– Provides analysis and reporting tools

• Data marts: – Subset of data warehouse

– Summarized or focused portion of data for use by specific population of users

– Typically focuses on single subject or line of business


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• Hadoop

– Enables distributed parallel processing of big data across inexpensive computers

– Key services

• Hadoop Distributed File System (HDFS): data storage

• MapReduce: breaks data into clusters for work

• Hbase: NoSQL database

– Used by Facebook, Yahoo, NextBio


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• In-memory computing

– Used in big data analysis

– Use computers main memory (RAM) for data storage to avoid delays in retrieving data from disk storage

– Can reduce hours/days of processing to seconds

– Requires optimized hardware

• Analytic platforms

– High-speed platforms using both relational and non-relational tools optimized for large datasets


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• Analytical tools: Relationships, patterns, trends

– Tools for consolidating, analyzing, and providing access to vast amounts of data to help users make better business decisions

• Multidimensional data analysis (OLAP)

• Data mining

• Text mining

• Web mining


46

A contemporary business intelligence infrastructure features capabilities and tools to manage and

analyze large quantities and different types of data from multiple sources.

Easy-to-use query and

reporting tools for casual business users and more sophisticated analytical toolsets for power users

are included.

Components Of A Data Warehouse

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The view that is showing is product versus region.

If you rotate the cube 90 degrees, the face that will show product versus actual and projected sales.

If you rotate the cube 90 degrees again, you will see region versus actual and projected sales.

Other views are possible.

MULTIDIMENSIONAL DATA MODEL

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• Data mining:

– Finds hidden patterns, relationships in datasets

• Example: customer buying patterns

– Infers rules to predict future behavior

– Types of information obtainable from data mining:

• Associations

• Sequences

• Classification

• Clustering

• Forecasting


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Linking Internal Databases To The Web

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Establishing an information policy

– Firm’s rules, procedures, roles for sharing, managing, standardizing data

– Data administration • Establishes policies and procedures to manage data

– Data governance• Deals with policies and processes for managing availability,

usability, integrity, and security of data, especially regarding government regulations

– Database administration• Creating and maintaining database

Managing Data Resources

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Ensuring data quality

– More than 25% of critical data in Fortune 1000 company databases are inaccurate or incomplete

– Redundant data

– Inconsistent data

– Faulty input

– Before new database in place, need to:

• Identify and correct faulty data

• Establish better routines for editing data once database in operation


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Data quality audit:– Structured survey of the accuracy and level of

completeness of the data in an information system

• Survey samples from data files, or

• Survey end users for perceptions of quality

Data cleansing– Software to detect and correct data that are incorrect,

incomplete, improperly formatted, or redundant

– Enforces consistency among different sets of data from separate information systems


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Telecommunications, the Internet, and Wireless Technology

Video cases:

Case 1: Telepresence Moves Out of the Boardrooom and Into the Field

Case 2: Unified Communications Systems: Virtual Collaboration with Lotus Sametime

• Identify the principal components of telecommunications networks and key networking technologies.

• Identify the different types of networks.

• Describe how the Internet and Internet technology work and how they support communication and e-business.

• Describe the principal technologies and standards for wireless networking, communication, and Internet access.

• Describe radio frequency identification and wireless sensor networks and identify why these are valuable business technologies.

Learning Objectives

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• Problem: Inefficient manual processes; large production environment

• Solutions: Track components in real time, optimize transportation, and expedite communication

– Wi-Fi networks

– RFID technologies

– Mobile handhelds

– Material inventory tracking software

• Demonstrates use of technology in production and supply chain to increase efficiency and lower costs

RFID and Wireless Technology Speed Up Production at Continental Tires

Casestudy

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• Networking and Communication Trends

– Convergence:

• Telephone networks and computer networks converging into single digital network using Internet standards

– Broadband:

• More than 68% U.S. Internet users have broadband access

– Broadband wireless:

• Voice, data communication are increasingly taking place over broadband wireless platforms

Telecommunications and Networking in Today’s Business World

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Simple Computer Network

NOS: Network Operating System

NIC: Network Interface Card

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Corporate Network Infrastructure

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Today’s corporate network infrastructure is a collection of many different networks from- the public switched telephone network, - to the Internet, - to corporate local area networks linking

workgroups, departments, or office floors.

Client/server computing

• Distributed computing model

• Clients linked through network controlled by network server computer

• Server sets rules of communication for network and provides every client with an address so others can find it on the network

• Has largely replaced centralized mainframe computing

• The Internet: largest implementation of client/server computing


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Packet switching Method of slicing digital messages into parcels (packets), sending packets along

different communication paths as they become available, and then reassembling packets at destination

Previous circuit-switched networks required assembly of complete point-to-point circuit

Packet switching means more efficient use of network’s communications capacity


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TCP/IP and connectivity

– Protocols: rules that govern transmission of information between two points

– Transmission Control Protocol/Internet Protocol (TCP/IP)

• Common worldwide standard that is basis for Internet

– Department of Defense reference model for TCP/IP• Four layers

– Application layer

– Transport layer

– Internet layer

– Network interface layer


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• Internet addressing and architecture– IP addresses

• The Domain name system (DNS) – Converts IP addresses to domain names– Hierarchical structure– Top-level domains

• Internet architecture and governance– No formal management: IAB, ICANN, W3C– The future Internet: IPv6 and Internet2

The Global Internet

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The Domain Name System is a hierarchical system with a

• root domain,

• top-level domains,

• second-level domains,

and host computers at the third level.

The Domain Name System

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The Internet backbone connects to regional networks, which in turn provide access to Internet service providers, large firms, and government institutions.

Network access points (NAPs) and metropolitan area exchanges (MAEs) are hubs where the backbone intersects regional and local networks and where backbone owners connect with one another.

Internet Network Architecture

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Client computers running Web browser and other software can access an array of services on servers over the Internet. These services may all run on a single server or on multiple specialized servers.

Figure 7-8

Client/Server Computing on the Internet

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This VPN is a private network of computers linked using a secure “tunnel” connection over the Internet. It protects data transmitted over the public Internet by encoding the data and “wrapping” them within the Internet Protocol (IP). By adding a wrapper around a network message to hide its content, organizations can create a private connection that travels through the public Internet.

Figure 7-10

A Virtual Private Network Using the Internet

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Read the Interactive Session and discuss the following questions

Interactive Session: Management

– Should managers monitor employee e-mail and Internet usage? Why or why not?

– Describe an effective e-mail and Web use policy for a company.

– Should managers inform employees that their Web behavior is being monitored? Or should managers monitor secretly? Why or why not?

Monitoring Employees on Networks—Unethical or Good Business?

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The Web

– Hypertext Markup Language (HTML)

– Hypertext Transfer Protocol (HTTP):

• Communications standard used for transferring Web pages

– Uniform resource locators (URLs):

• Addresses of Web pages

– http://www.megacorp.com/content/features/082602.html

– Web servers

– Software for locating and managing Web pages

The Global Internet

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Web 2.0

– Second-generation services

– Enabling collaboration, sharing information, and creating new services online

– Features

• Interactivity

• Real-time user control

• Social participation (sharing)

• User-generated content

The Global Internet

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– Web 2.0 services and tools

• Blogs: chronological, informal Web sites created by individuals

– RSS (Really Simple Syndication): syndicates Web content so aggregator software can pull content for use in another setting or viewing later

– Blogosphere

– Microblogging

• Wikis: collaborative Web sites where visitors can add, delete, or modify content on the site

• Social networking sites: enable users to build communities of friends and share information

The Global Internet

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Web 3.0: The “Semantic Web”

– A collaborative effort led by W3C to add layer of meaning to the existing Web

– Goal is to reduce human effort in searching for and processing information

– Making Web more “intelligent” and intuitive

– Increased communication and synchronization with computing devices, communities

– “Web of things”

– Increased cloud computing, mobile computing

The Global Internet

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• Wireless computer networks and Internet access

– Bluetooth (802.15) • Links up to 8 devices in 10-m area using low-power, radio-based

communication

• Useful for personal networking (PANs)

– Wi-Fi (802.11)• Set of standards: 802.11

• Used for wireless LAN and wireless Internet access

• Use access points: device with radio receiver/transmitter for connecting wireless devices to a wired LAN

The Wireless Revolution

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Mobile laptop computers equipped with wireless network interface cards link to the wired LAN by communicating with the access point. The access point uses radio waves to transmit network signals from the wired network to the client adapters, which convert them into data that the mobile device can understand. The client adapter then transmits the data from the mobile device back to the access point, which forward the data to the wired network.

Figure 7-14

An 802.11 Wireless LAN

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How RFID Works

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Documents

2 MBA SS 2015_FV.pdf