Strategic Management of Information Systems
Fifth Edition
Keri Pearlson and Carol Saunders
Information Systems Strategy: Architecture and
Infrastructure
PowerPoint® files by Michelle M. Ramim
Huizenga School of Business and Entrepreneurship
Nova Southeastern University
(c) 2013 John Wiley & Sons, Inc.
Pearlson and Saunders – 5th Ed. – Chapter 6
Learning Objectives
•
Understand how strategy drives architecture, which then drives
infrastructure.
•
Identify and define the three configurations for IT architecture.
•
Define how business goals can be translated into IT architecture and
then into infrastructure.
•
Know the different types of frameworks used to design and build the
IT architecture and infrastructure.
•
Understand the importance of knowing the details of the existing
architecture and infrastructure of the organization.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Real World Examples
•
Over the past 10 years Valero Energy (gas/oil refiner) has experienced
hypergrowth.
•
•
Revenue has grown from $29 to $90 billion.
This growth came with a mixture of disparate IT systems and
applications.
•
•
•
•
•
•
Difficult and expensive to manage.
Not easily integrated into ERP system.
IT architecture needed to be redesigned to meet future needs.
Flexible in design and able to grow with the company.
An SOA system was selected: SAP R/3 ERP.
90 service components were built on the SAP platform.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Real World Examples (Cont.)
•
•
•
•
•
•
•
The results were dramatic.
New applications made operations more efficient and effective.
Development costs were kept low.
One application saved the company $500K in fees.
The new application provides visibility to the tankers.
Communications with employees reduced scheduling conflicts.
Managers were able to control the loading and unloading of tankers,
which was previously unavailable.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
From Vision to Implementation
•
•
Architecture translates strategy into infrastructure (Figure 6.1).
The architect develops plans based on a vision of how the customer will
use the system (or in the example a house), which is a blueprint of the
company’s systems.
•
This IT architecture “blueprint” is used for translating business
strategy into a plan for IS.
•
The IT infrastructure is everything that supports the flow and
processing of information (e.g., hardware, software, data, and
networks).
(c) 2013 John Wiley & Sons, Inc.
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Figure 6.1 From abstract to concrete – building vs. IT.
Pearlson and Saunders – 5th Ed. – Chapter 6
Building
Owner’s
Vision
Architect’s
Plans
Builder’s
Implementation
Abstract
Concrete
Strategy
Architecture
Infrastructure
Information
Technology
© John Wiley & Sons
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
The Manager’s Role
•
The manager’s role is to:
o
Understand what to expect from IT architecture and infrastructure to
make full and realistic use of them.
o
Effectively communicate the business vision to IT architects and
implementers.
o
Modify the plans if IT cannot realistically support them.
o
Be involved in the decision-making process.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
From Strategy to Architecture
•
The manager must start out with a strategy.
o
•
Use the strategy to develop more specific goals (Figure 6.2).
Business requirements for each goal must be fleshed out in order to
provide the architect with a clear picture of what IS must accomplish.
•
The manager must work with the IT architect.
o
Translate the business requirements into a more detailed view of the systems
requirements, standards, and processes.
•
The architectural requirements include considerations such as:
o
•
Data demands, process demands, and security objectives.
The IT architect takes the architectural requirements and designs the IT
architecture.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
From Architecture to Infrastructure
•
This stage entails adding more detail to the architectural plan such as:
o
•
specifying hardware, data, networking, and software(Figure 6.2).
Decisions are made about how to implement these specifications:
o
What hardware, software, storage, interface, network, etc. to use in the
infrastructure.
•
Components must be assembled in a coherent pattern according to the blueprint
in order to have a viable infrastructure.
•
•
Infrastructure has several levels:
o
Global level
o
Interorganizational level
o
Application-level
Infrastructure also refers to the platform.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Figure 6.2 From strategy to business requirements.
© John Wiley & Sons
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
A Framework for the Translation
•
The framework for transforming business strategy into architecture
and then into infrastructure should consider basic components
(Figure 1.8):
•
o
Hardware – physical components.
o
Software – programs.
o
Network – software and hardware.
o
Data – numbers and text.
Understanding the technology behind each component of the
infrastructure and the technical requirements of the architecture is a
much more complex task.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Figure 6.3 Infrastructure and architecture analysis framework with sample questions.
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(c) 2013 John Wiley & Sons, Inc.
Pearlson and Saunders – 5th Ed. – Chapter 6
A Framework for Translation (Cont.)
•
Managers must begin with an overview that is complete and delivers a
big picture.
o
Figure 6.3 entails questions that typify those asked in addressing architecture
and infrastructure issues associated with each component.
•
The framework asks three types of questions that must be answered for
each infrastructure component:
•
o
What is the specific type of technology?
o
Who is involved (individuals, groups, departments)?
o
Where is everything located?
Figure 6.3 shows the connections between the business strategy and the
infrastructure.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Common IT Architecture
Configurations
•
Three common configurations of IT architecture (Figure 6.4).
o
Centralized architecture: everything is purchased, supported, and
managed centrally via a data center.
o A large data center with a mainframe and a number of legacy mainframe
environments.
o Many computers are linked together to form a centralized IT core that
operates very much like the mainframe, providing the bulk of IT services
necessary for the business.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Common IT Architecture
Configurations (Cont.)
•
Decentralized architecture arranges the hardware, software,
networking, and data in a way that distributes the processing and
functionality between multiple small computers, servers, and devices.
•
o
Relies heavily on a network to connect them.
o
Utilizes numerous servers located in different physical locations.
o
A server-based architecture.
Service-oriented Architecture (SOA) utilizes relatively small chunks of
functionality available for many applications or reuse.
o
Useful for building applications quickly.
o
Offers managers a modular and componentized design that is easily modifiable.
o
SOA utilizes software-as-a-service (SaaS) or Web services.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Figure 6.4 Common architectures.
(c) 2013 John Wiley & Sons, Inc.
© John Wiley & Sons
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Pearlson and Saunders – 5th Ed. – Chapter 6
Centralized Versus Decentralized
Architectures
•
A manager must be aware of the trade-offs when considering
centralized versus decentralized architectures.
o
Decentralized architectures are more modular than centralized
architectures.
o
Additional servers can be added with relative ease and provide greater
flexibility for adding clients with specific functionality for specific
users.
o
Decentralized organizational governance, such as that associated with
the networked organization structure, is consistent with decentralized
architectures.
(c) 2013 John Wiley & Sons, Inc.
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Additional Infrastructures
Pearlson and Saunders – 5th Ed. – Chapter 6
•
Peer-to-peer – allows networked computers to share resources without a
central server.
•
Wireless (mobile) – allows communication from remote locations using a
variety of wireless technologies.
•
Web-based – significant hardware, software, and possibly even data elements
that reside on the Internet.
o
Offers greater flexibility when used as a source for capacity-on-demand or for
additional processing capability for a fee.
•
Bring Your Own Device (BYOD) - employees bring their own devices and
connect to enterprise systems.
o
Raises issues with capacity, security, and compatibility.
o
Consumerization of IT – the push for employees and customers to use their own
devices to access corporate systems and the ensuing issues to make them work.
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(c) 2013 John Wiley & Sons, Inc.
Pearlson and Saunders – 5th Ed. – Chapter 6
From Strategy to Architecture to
Infrastructure
•
The process of converting strategy to architecture to infrastructure:
o
Define the strategic goals.
o
Translate goals into business requirements.
o
Specify architectural requirements.
o
Translate specs into hardware, software, data protocols, interface designs,
and other components that will make up the infrastructure.
•
Figure 6.5 lists questions raised when applying the framework to
TennisUp’s architecture goals and related infrastructure.
•
Figure 6.6 lists possible infrastructure components.
(c) 2013 John Wiley & Sons, Inc.
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Figure 6.5 Framework application to TennisUp.
What
Who
Architecture
Infrastructure
Architecture
Hardware
What kind of
supplemental
server capacity will
the new EDI
transactions
require?
Will TennisUp’s
current dual CPU
NT servers handle
the capacity, or will
the company have
to add additional
CPUs and/or disks?
NA
Software
What parts of
TennisUp’s
software
architecture will
the new
architecture affect?
Will TennisUp’s
current Access
database interface
adequately with the
new EDI software?
Network
What is the
anticipated volume
of transactions
between TennisUp
and its
manufacturing
partners?
Data
Will data formats
supporting the new
architecture be
compatible with
TennisUp’s
existing formats?
Where
Infrastructure
Architecture
Infrastructure
Who is
responsible for
setting up
necessary
hardware at the
partner site?
Where does
responsibility for
owning and
maintaining EDI
hardware fall
within TennisUp?
Which hardware
components will
need to be replaced
or modified to
connect to the new
EDI hardware?
Who knows the
current software
architecture well
enough to manage
the EDI
enhancements?
Who will do any
new SQL coding
required to
accommodate the
new software?
NA
Where will software
patches be required
to achieve
compatibility with
changes resulting
from new software
components?
High volume may
require leased lines
to carry transaction
data; dial-up
connections may
suffice for low
volume.
Who is responsible
for additional
networking expense
incurred by partners
due to increased
demands of EDI
architecture?
NA
Where will
security concerns
arise in
TennisUp’s
current network
architecture?
Where will
TennisUp house
new networking
hardware required
for EDI?
Which formats must
TennisUp translate?
Who will be
responsible for
using sales data to
project future
volumes to report to
the manufacturing
partner?
Who will be
responsible for
backing up
additional data
resulting from
new architecture?
Where does the
current
architecture
contain potential
bottlenecks given
the changes
anticipated in
data flows?
Does the new
architecture require
TennisUp to switch
from its current
10Base-T Ethernet
to 100Base-T?
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(c) 2013 John Wiley & Sons, Inc.
Pearlson and Saunders – 5th Ed. – Chapter 6
Component
Figure 6.6 TennisUP’s infrastructure components.
Pearlson and Saunders – 5th Ed. – Chapter 6
Hardware
3 servers:
•Sales
•Manufacturing
•Accounting
Storage systems
Software
ERP system with
modules for:
•Manufacturing
•Sales
•Accounting
•Inventory
Enterprise Application
Integration (EAI)
software
Network
Cable modem to
ISP
Dial-up lines for
backup
Data
Database:
•Sales
•Manufacturing
•Accounting
Routers
Hubs
Switches
Firewalls
© John Wiley & Sons
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Architectural Principles
•
Based on a set of principles or fundamental beliefs about how the
architecture should function.
•
Architecture principles must be consistent with both the
enterprise values as well as the technology used in the
infrastructure.
•
•
The number of principles vary widely.
Principles should define the desirable behaviors of the IT systems
and the role of the organization(s) that support it.
•
Sample architectural principles (Figure 6.7).
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Enterprise Architecture
•
•
The “blueprint” for all IS and its interrelationships in the firm.
Specifies how IT will support business processes by identifying:
o
core processes of the company and how they will work together.
o
how the IT systems will support the processes.
o
the standard technical capabilities and activities for all parts of the
enterprise.
o
•
Guidelines for making choices.
Four key elements:
1.
Core business processes.
2.
Shared data.
3.
Linking and automation technologies.
4.
Customer groups.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Figure 6.7 Sample architectural principles.
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(c) 2013 John Wiley & Sons, Inc.
Pearlson and Saunders – 5th Ed. – Chapter 6
Enterprise Architectures (Cont.)
•
TOGAF (The Open Group Architecture Framework)
o
Includes a methodology and set of resources for developing an enterprise
architecture.
•
Zachman Framework
o
Determines architectural requirements by providing a broad view that
guides the analysis of the detailed view.
•
Building an enterprise architecture is a joint exercise with business
leaders and IT leaders.
•
Business processes are designed concurrently with IT systems.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Virtualization and Cloud Computing
•
Virtualization infrastructure - computing capabilities, storage, and
networking provided by a third party or group of vendors, usually over
the Internet or through a private network (e.g., virtualized desktop).
•
•
o
Includes servers, storage, backup, network, and disaster recovery.
o
Enables resources to be shared and allocated as needed by the user.
o
Makes maintenance easier since resources are centralized.
Cloud computing - virtual infrastructure provided over the Internet.
SaaS (Software as a Service), PaaS (Platform as a Service), and IaaS
(Infrastructure as a Service).
•
A cloud is a large cluster of virtual servers or storage devices.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Virtualization and Cloud Computing
(Cont.)
•
•
•
Users purchase capacity-on-demand.
Utility computing - computing capability is purchased on an as-needed basis.
Examples of applications in the cloud:
o
Salesforce.com, Facebook, Gmail, Windows Azure, Apple iTunes, and
LinkedIn.
•
Benefits of virtualization and cloud computing:
o
Consolidated physical servers.
o
Reduced physical costs of the data center.
o
No upgrading.
o
No maintenance, power, or electricity costs.
o
No need for physical space or storage servers.
o
Increased speed of attaining additional capacity (provisioning).
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Pearlson and Saunders – 5th Ed. – Chapter 6
Virtualization and Cloud Computing –
Managerial Considerations
•
Managers must also understand the risks of a third-party supplier.
o
Retooling existing applications for the cloud’s infrastructure.
o
No established standards for virtual infrastructure.
o
Applications not porting easily from one vendor’s infrastructure to
another’s.
•
As coordination costs drop and platforms in the cloud open up,
cloud computing utilization will increase.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Understanding Existing Architecture
•
The primary reason to base architecture on an organization’s strategic goals is to
allow for inevitable future changes to:
•
•
o
the business environment.
o
organization.
o
IT requirements.
o
the technology itself.
Future consideration for IT architecture should include:
o
analysis of the existing architecture.
o
the strategic time frame.
o
technological advances.
o
financial constraints.
Evaluate the IT requirements of an evolving business strategy against
current IT capacity.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Understanding Existing Architecture
- Managerial Considerations
•
Relevant questions for managers:
o
What IT architecture is already in place?
o
Is the company developing the IT architecture from scratch?
o
Is the company replacing an existing architecture?
o
Does the company need to work within the confines of an existing
architecture?
o
•
Is the company expanding an existing architecture?
A strong business strategy is a prerequisite for IT architecture
design, which is a prerequisite for infrastructure design.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Additional Managerial Considerations
•
Managers can derive the most value and incur minimal loss when
working with legacy architectures and infrastructures by
objectively analyzing:
1.
the existing architecture and infrastructure.
2.
the strategy served by the existing architecture.
3.
the ability of the existing architecture and infrastructure to further
the current strategic goals.
•
Managers must ensure that the architecture will satisfy their strategic
requirements and that it is modern and efficient.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Assessing Strategic Time Frame
•
Understanding the life span of IT infrastructure and architecture is
critical.
•
Strategic time frames depend on industry-wide factors such as:
o
the level of commitment to fixed resources, maturity of the industry,
cyclicality, and barriers to entry.
•
•
Business strategy planning horizon.
Management reliance on IT and on the specific rate of advances
affecting IT.
•
Design with maximum flexibility and scalability to ensure handling
of future business changes.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Assessing Technical Issues: Adaptability
•
•
•
•
Can the architecture adapt to emerging technologies?
Must be able to handle and absorb technological advances.
o
Innovations in storage capacity and computing power.
o
Unexpected technological leaps.
Consider both hardware and software.
Guidelines for planning adaptable IT architecture and infrastructure:
o
Plan for applications and systems that are independent and loosely
coupled rather than monolithic.
o
Set clear boundaries between infrastructure components.
o
Provide access to all users when it makes sense to do so (e.g. security
concerns) when designing a network architecture.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Assessing Technical Issues: Scalability
•
Refers to how well an infrastructure component can adapt to
increased, or in some cases decreased, demands.
•
A scalable network system should start with just a few nodes but
have the ability to easily expand to thousands of nodes.
•
It is important to analyze the impact of strategic business
decisions on IT architecture and infrastructure.
•
Ensure a contingency plan exists for potential unexpected effects
of a strategy change.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Assessing Technical Issues:
Standardization
•
•
Hardware and software use a common standard.
Easier to plug into infrastructure or architecture (e. g., Microsoft
Office suite).
o
Interfaces often accompany the standard.
o
It is easy to move data between systems.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Assessing Technical Issues:
Maintainability
•
•
The manager needs to ask:
o
How easy is it to maintain the infrastructure?
o
Are replacement parts available?
o
Are support services available?
Maintainability is a key technical consideration.
o
The complexity of the systems increases the number of things that
can go wrong, need fixing, or need replacing.
•
Should a technology become obsolete, costs skyrocket for parts and
expertise.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Assessing Technical Issues: Security
•
•
•
•
Major concern for business and IT managers.
Must protect key data and process elements of the IT infrastructure.
Extends outside the boundaries of the company (e.g., customer data).
Innovations encrypt or disguise sensitive information, financial
information, and business information.
•
Securing assets in a highly centralized, mainframe architecture means
building protection around the centralized core.
•
Decentralized, server-based architecture is more difficult to secure due to
the dispersion of servers.
•
Web-based SOA that utilizes SaaS and capacity on demand raises a
whole new set of security issues.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Assessing Technical Issues: Security
(Cont.)
•
The security of networks continues to improve through:
o
innovations such as authentication, passwords, digital
signatures, encryption, secure servers, and firewalls.
o
new schemes for security such as securing specific assets instead
of just securing the perimeter of a system.
•
Managing security is often a matter of managing risk.
o
Assessing the likelihood of a breach and the cost of that breach in
terms of loss and recovery.
(c) 2013 John Wiley & Sons, Inc.
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Assessing Financial Issues
Pearlson and Saunders – 5th Ed. – Chapter 6
•
IT infrastructure components should be evaluated based on their expected
financial value (Figure 6.8).
•
Payback from IT investments is difficult to quantify.
o
Takes the form of increased productivity, increased interoperability with
business partners, improved service for customers, etc.
o
Focus on how IT investments enable business objectives rather than on their
quantitative returns.
o
Quantify returns on infrastructure investments by:
1.
Quantifying costs.
2.
Determining the anticipated life cycles of system components.
3.
Quantifying benefits.
4.
Quantifying risks.
5.
Considering ongoing dollar costs and benefits.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Figure 6.8 TennisUp’s managerial considerations.
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(c) 2013 John Wiley & Sons, Inc.
Chapter 6 - Key Terms
Pearlson and Saunders – 5th Ed. – Chapter 6
Architecture (p. 169) - provides a blueprint for translating business
strategy into a plan for IS.
Bring-your-own-device (BYOD) (p. 177) - employees bring
their own devices and connect to enterprise systems.
Capacity-on-demand (p. 177) - the availability of additional processing
capability for a fee.
Centralized architecture (p. 173) - everything is purchased,
supported, and managed centrally via a data center to eliminate
the difficulties that come with managing a distributed infrastructure.
Client (p. 175) - a device or software program that requests data and
sometimes instructions from another software program, usually running on
a separate computer.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Chapter 6 - Key Terms (Cont.)
Cloud computing (p. 183) - an architecture based on services
provided over the Internet.
Consumerization of IT (p. 177) - the drive to port applications to
personal devices and the ensuing issues to make them work.
Decentralized architecture (p. 174) - The hardware, software,
networking, and data arranged in a way that distributes the processing
and functionality between multiple small computers, servers, and
devices, relying heavily on a network to connect them together.
Enterprise architecture (p. 180) - the “blueprint” for all IS and its
interrelationships in the firm.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Chapter 6 - Key Terms (Cont.)
Infrastructure (p. 169) - everything that supports the flow and
processing of information in an organization, including hardware,
software, data, and network components.
Peer-to-peer (p. 176) - allows networked computers to share
resources without a central server playing a dominant role.
Platform (p. 172) - an infrastructure or an underlying computer
system.
Reuse (p. 174) - relatively small chunks of functionality available for
many applications.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Chapter 6 - Key Terms (Cont.)
Scalable (p. 188) - how well an infrastructure component can adapt to
increased, or in some cases decreased, demands.
Server-based architecture (p. 174) - a decentralized architecture that
uses numerous servers often located in different physical locations.
Service-oriented architecture (SOA) (p. 174) - applications delivered
over the Internet.
Standards (p. 188) - rules or principles.
TOGAF (p. 182) (The Open Group Architecture Framework) - a
methodology and set of resources for developing an enterprise architecture.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Chapter 6 - Key Terms (Cont.)
Utility computing (p. 184) - computing infrastructure available when
needed in as much quantity as needed.
Virtualization (p. 183) - a virtual infrastructure where software replaces
hardware in a way that a “virtual machine” or a virtual desktop system” was
accessible to provide computing power.
Web-based architectures (p. 176) - architectures in which significant
hardware, software, and possibly even data elements reside on the Internet.
Web services (p. 175) - services delivered over the Internet.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
Chapter 6 - Key Terms (Cont.)
Wireless (Mobile) Infrastructure (p. 176) - allow communication
from remote locations using a variety of wireless technologies (e.g.,
fixed microwave links, wireless LANs, data over cellular networks)
Zachman Framework (p. 182) - determines architectural
requirements by providing a broad view that helps guide the analysis of
the detailed view.
(c) 2013 John Wiley & Sons, Inc.
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Pearlson and Saunders – 5th Ed. – Chapter 6
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