Discussion IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability Twelfth Edition Turban, Pollard, Wood Chapter 2 Information

IT for Management: On-Demand Strategies for Performance, Growth, and Sustainability

Twelfth Edition

Turban, Pollard, Wood

Chapter 2

Information Systems, IT Infrastructure, and Cloud

Learning Objectives (1 of 4)

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IS Concepts and Classifications

IT Infrastructure, IT Architecture, and Enterprise Architecture

Data Centers and Cloud Computing

Virtualization and Virtual Machines

IS Concepts and Classification

Information system (IS) is a combination of information technology and people’s activities using technology to support business processes, operations, management, and decision-making at different levels of the organization.

Technology supports organizations and almost every business unit within an organization.

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Figure 2.1 IPOS Cycle

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Figure 2.2: Components of an Information System

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Data, Information, Knowledge, & Wisdom

Data describes products, customers, events, activities, and transactions that are recorded, classified, and stored.

Information is data that have been processed, organized, or put into context with meaning and value to the recipient.

Knowledge applies understanding, experience, accumulated learning, and expertise to current problem.

Explicit knowledge is the most basic form of knowledge and is easy to communicate, store, and distribute

Tacit knowledge is the opposite of explicit knowledge and is difficult to transfer to others. It is personal, context-specific, and experiential.

Wisdom is a collection of values, ethics, moral codes, and prior experiences that form an evaluated understanding or commonsense judgment.

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Figure 2.3: Examples of Data, Information, Knowledge, and Wisdom

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Figure 2.4 Data processing in the IPOS cycle

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Transaction Processing Systems (TPS)

Transaction processing system (TPS) is an information system that collects, monitors, stores, processes, and distributes specific types of data input from ongoing transactions.

Internal transactions: originate or occur within the organization (payroll, purchases, etc.)

External transactions: originate outside the organization (customers, suppliers, etc.)

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Real-Time Versus Batch Processing

Real-time processing or OLTP: processes each transaction as it occurs

Batch Processing: collects all transactions for a time period, then processes the data at a predetermined time, such as hourly, daily, or weekly

Batch processing costs less than OLTP, but may be inaccurate from update delays

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Management Information Systems (MIS)

General-purpose reporting systems that provide reports to managers for tracking operations, monitoring, and control.

Periodic: reports created or run according to a pre-set schedule.

Exception: generated only when something is outside the norm.

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Decision Support Systems (DSS) (1 of 2)

A knowledge-based system used by senior managers to facilitate the creation of knowledge and allow its integration into the organization

Ad hoc or on demand reports are unplanned reports.

Support unstructured and unstructured decisions with the following characteristics:

Easy-to-use interactive interface

Models or formulas that enable sensitivity analysis

Data from multiple sources

Can be used for open-ended What-if analysis and more structured Goal-seeking

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Executive Information Systems (EIS)

Strategic-level information systems that help executives and senior managers analyze the environment in which the organization exists

Used to identify log-term trends and plan appropriate actions

Weakly structured data from both internal and external sources

Designed to be easily operated by executives

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Information Systems Concepts and Classification: Questions

Name the six components of an IS.

Describe the differences between data, information, knowledge, and wisdom.

Define TPS and give an example.

Explain why TPSs need to process incoming data before they are stored.

Define MIS and DSS and give an example of each.

What characteristics distinguish a DSS from an MIS?

What level of personnel typically use an EIS?

What factors determine IS value?

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Learning Objectives (2 of 4)

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IS Concepts and Classifications

IT Infrastructure, IT Architecture, and Enterprise Architecture

Data Centers and Cloud Computing

Virtualization and Virtual Machines

Figure 2.9: Comparing IT infrastructure, IT architecture, and EA

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IT Infrastructure

Inventory of the physical IT devices that an organization owns and operates

Describes organization’s entire collection of hardware, software, networks, data centers, facilities and related equipment

Does not include people or process components of an IS

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IT Architecture

Guides the process of planning, acquiring, building, modifying, interfacing and deploying IT resources in a single department within an organization

Should offer a way to systematically identify technologies that work together to satisfy the needs of the departments’ users

Blueprint for how future technology acquisitions and deployment will take place

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Enterprise architecture (EA)

A conceptual blueprint that defines the structure and operation of an organization’s strategy, information, processes, and IT assets

The EA adds value to an organization in that it can provide the basis for organizational change just as architectural plans guide a construction project.

Solves two critical challenges: where an organization is going and how it will get there.

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Measuring EA Success: KPIs

Key Performance Indicators (KPIs) are a set of quantifiable measures used to evaluate factors that are critical to the success of an organization.

KPIs help reduce the complex nature of EA performance to a small number of understandable measures such as capabilities, operational performance, project performance, and financial performance.

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EA and Sustainability

Strategic Focus

IT systems’ complexity

Poor business alignment

Business and IT Benefits of EA

Cuts IT costs; increases productivity with information, insight, and ideas

Determines competitiveness, flexibility, and IT economics

Aligns IT capabilities with business strategy to grow, innovate, and respond to market demands

Reduces risk of buying or building systems and enterprise apps

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EA Components

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IT Infrastructure, IT Architecture, and Enterprise Architecture: Questions

What is the purpose of the IT infrastructure?

How is the IT infrastructure different from the IT architecture?

What is the purpose of an EA?

What are the business benefits of EA?

Explain why it is necessary for the EA to maintain alignment between IT and business strategy?

What four categories of KPIs are typically used to measure the success of an EA? Give two examples of each.

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Learning Objectives (3 of 4)

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IS Concepts and Classifications

IT Infrastructure, IT Architecture, and Enterprise Architecture

Data Centers and Cloud Computing

Virtualization and Virtual Machines

Data Centers and Cloud Computing

Data Centers and Cloud Computing are types of IT infrastructures or computing systems.

A data center can also refer to the building or facility that houses the servers and equipment.

Today, companies may own and manage their own on-premises data centers or pay for the use of their vendors’ data centers, such as in cloud computing, data virtualization, and software-as-a-service arrangements

When a data center goes down, so does business.

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Data Virtualization

Data Virtualization

Cisco’s single solution integrating computing, storage, networking, virtualization, and management into a single (unified) platform

Virtualization gives greater IT flexibility and cutting costs:

Instant access to data any time in any format

Respond faster to changing data analytic needs

Cut complexity and cost

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Data Virtualization Benefits

Compared to traditional data integration and replication methods data virtualization accelerates time to value with:

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The Software–Defined Data Center (SDDC)

An SDDC facilitates the integration of the various infrastructures of the SDDC silos within organizations and optimizes the use of resources, balances workloads, and maximizes operational efficiency by dynamically distributing workloads and provisioning networks.

SDDC Goals: decrease costs and increase agility, policy compliance and security by deploying, operating, managing and maintaining applications.

The base resources for the SDDC are computation, storage, networking, and security.

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Figure 2.16 Corporate IT infrastructures can consist of an on-premises data center and off-premises cloud computing

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Cloud Computing

What is “The Cloud”?

A general term for infrastructure that uses the Internet and private networks to access, share, and deliver computing resources

Scalable delivery as a service to end-users over a network

A drawback of the cloud is control because a third party manages it:

Unless the company uses a private cloud within its network, it shares computing and storage resources with other cloud users in the vendor’s public cloud.

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Cloud Computing Types

Private Cloud: delivers cloud computing services over the Internet or a private internal network to only select users instead of the general public.

Public Cloud: is based on the standard cloud computing model in which a service provider makes resources, apps, or storage available to the general public over the Internet either free or on a pay-per-usage model.

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Cloud Infrastructure

The Value of the Cloud Infrastructure:

Dynamic, not static

Provides a way to make apps and computing power available on demand because they are provided as a service

Referred to as Software As A Service, or SaaS. (examples: Google Apps and Salesforce.com)

Helps companies become more agile and responsive while significantly reducing IT costs and complexity

Large organizations are moving to Enterprise Clouds.

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Cloud Services

Services made available to users on demand via the Internet from the servers of a cloud computing provider instead of being accessed through an organization’s on-premises servers.

The cloud computing model for on-demand delivery of and access to various types of computing resources also extends to the development of business apps.

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Anything-as-a-Service (XaaS) Models (1 of 2)

Software as a Service (SaaS) — on-demand computing and hosted services.

Instead of buying and installing expensive packaged enterprise applications, users can access software applications over a network, using an Internet browser

Platform as a Service (PaaS) — a standard unified platform for developing, testing, and deploying software over the Web

Infrastructure as a Service (IaaS) — a way of delivering servers, storage, networks, workload balancers, and OSs as an on-demand service

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Anything-as-a-Service (XaaS) Models (2 of 2)

Data as a Service (DaaS) – an information provision and distribution model in which data files (including text, images, sounds, and videos) are made available to customers over a network by a service provider.

Technology solutions as a service (TSaaS) – combines software, hardware, networks, and telecommunications to provide specialized technology solutions that allow companies to adopt new technologies and transform their business.

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Vendor Management and Cloud Service Agreements

Cloud Service Agreements

A negotiated agreement between a company and service provider that can be a legally binding contract or an informal contract – also referred to as cloud service-level agreements (SLAs)

The goal is not building the best CSA terms, but getting the terms that are most meaningful to the business needs.

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Data Centers and Cloud Computing: Questions

What is a data center?

What is the difference between on premise data centers and cloud computing?

What is an SDDC?

What are the advantages of using an SDDC?

How can cloud computing solve the problems of managing software licenses?

What factors should be considered when selecting a cloud vendor or provider?

When are private clouds used instead of public clouds?

Explain three issues that need to be addressed when moving to cloud computing or services.

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Learning Objectives (4 of 4)

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IS Concepts and Classifications

IT Infrastructure, IT Architecture, and Enterprise Architecture

Data Centers and Cloud Computing

Virtualization and Virtual Machines

Virtualization and Virtual Machines

Virtualization allows the sharing of a single physical instance of an IT resource or app among multiple customers and organizations.

One of the most cost-effective, hardware-reducing, energy-saving techniques used by cloud providers

There are many types of virtualization, such as virtual storage devices, virtual desktops, virtual OSs, and virtual servers for network virtualization

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Figure 2.20 Virtual machines running on a simple computer hardware layer

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What Is a Virtual Machine?

A virtual machine is a software-created computer. Technically, a virtual machine (VM) is created by a software layer, called the virtualization layer.

That layer has its own Windows or other OS and apps, such as Microsoft Office, as if it were an actual physical computer.

A VM behaves exactly like a physical computer and contains its own virtual―that is, software-based―CPU, RAM (random access memory), hard drive, and network interface card (NIC).

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Virtualization Benefits

Characteristics & Benefits

Memory-intensive

Huge amounts of RAM due to massive processing requirements

Energy-efficient

Up to 95% reduction in energy use per server through less physical hardware

Scalability and load balancing

Handles dynamic demand requests like during the Super Bowl or World Series

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Virtualization and Virtual Machines: Questions

What are the main types of XaaS?

What are the advantages of using cloud computing?

How might companies risk violating regulation or compliance requirements with cloud services?

In what ways is a virtualized information system different from a traditional information system?

Describe the different types of Virtualization.

What is load balancing and why is it important?

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Copyright

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