New Rules of Strategy
(Arthur Andersen Outlook, 1998, #1)
STRATEGIC
DIMINISHING
CONSIDERATIONS RETURNS
RESPONSE
MARKET SHARE
Acquire over time
INVESTMENT
ALLIANCES
INNOVATION
INCREASING
RETURNS
RESPONSE
Capture dominant
market share
quickly
Plow back earnings Bet on future
revenue streams
Outsource for
Ally broadly for
efficiency
market access &
product synergies
Enhance offerings Reinvent
to grow market
continuously to
define the market
New Rules of Strategy
(Arthur Andersen Outlook, 1998,01)
Architecture,
Infrastructure & ERP
 Define: application,bit, byte, client/server, coaxial
cable, CPU, database,ERP, ethernet, fiber optic,
gigabit (byte), hard drive, ISDN, kilobit (byte), LAN,
WAN, megabit (byte), modem, operating system,
protocol, RAM, SAP, server, thick client, thin client,
WAN, TCO, legacy system
 Distinguish architecture from infrastructure
 Discuss the relationship between strategy, business
requirements, architecture, and infrastructure
 Discuss the applicability of evaluation criteria to
architecture and infrastructure
 Analyze infrastructure and architecture needs across
hardware, software, data and networks
 Advantages and disadvantages of ERPs
Architecture &
Infrastructure
Strategy
Business Requirements
Architecture
Infrastructure
Information
Architecture
High level map of info requirements;
blueprint
Centralized:
data
communications
Decentralized:
focus on organizational function
Translates strategy into infrastructure
Hard to define: needs change
Information
Infrastructure
Physical facilities, services,
management supporting computing
resources
hardware
software
networks & communications
data
personnel
Evaluation Criteria:
Applicability
Criteria
Architecture Infrastructure
Strategic time
frame
Technological
advances
Growth
requirements
Assessing
Financial Issues
Very
Not
Very
Somewhat
Very
Very
Somewhat
Very
Meta Group Guidelines for
Adaptable IT A&I
Plan modular (independent and loosely
coupled) vs. monolithic
Have clear boundaries between
infrastructure components
With network architecture, provide access
to all users when it makes sense to do so
Architecture Definitions
- Client/server
Client - PC or workstation attached to a
network which is used to access shared network
resources
Server - machine that provides clients with
services (i.e., sharing databases, software)
Thick client - full function stand-alone computer
that is used either exclusively or occasionally as
a client in a client/server architecture
Thin client - computer hardware designed to be
used only as a client in a client/server
architecture (Network PCs)
Definitions
Enterprise-wide system - distributed
system that covers the entire organization
ERP - a large highly complex software
program that integrates many business
functions under a single application
Legacy system - older or mature IS (often
20-30 years old)
ERP
No more fragments!
Streamlined operations
One system fits all?
Too centralized?
Big bucks
Growing need to integrate ERP
applications within companies and across
trading partners
middleware for 24/7 B2B applications (ERP
Total Cost of Ownership
Popular when PC-based IT infrastructures
began gaining popularity
TCO = capital investments + technical
support + administration + training
Helps managers understand how
infrastructure costs break down
Annual costs per user for each potential
infrastructure choice
Shared vs. isolated