Information Systems Organization IT and the Digital Organization
Learning Objectives
• Discuss functional business systems
• Discuss IT System Extent and Visibility
• Discuss the organizational and operational impact of IT
• Discuss the business value of emerging technologies
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IT Systems in the Digital Organization
• The information systems of the digital organization can be divided into the following categories: • Functional Business Systems • Enterprise Business Systems
• Enterprise Communication and Collaboration Systems • Business Intelligence and Decision Support Systems • E-Commerce Systems • M-Business Systems
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Functional Business Systems
• Functional business systems are information systems that support the primary business functions of traditional businesses.
• In smaller organizations, these are still often standalone systems, but increasingly, especially in larger organizations, these are being integrated into cross-enterprise business systems.
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Functional Business System Types
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System Extent and Visibility
•System Extent • The system affects on business units across the
organization. We distinguish two kinds of extents below, although in fact, extent is really a continuum.
•System Visibility • The systems degree to which the operations and
processes of the system can be directly experienced from outside of the organization.
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Organizational Agility • IT has supported organizational agility and has itself been a
major driver of agility. In particular, IT has affected: • Structural Agility—through distributed teams and
outsourcing, largely driven by the increasing capabilities of internet-based communication and collaboration • Business Process Agility—through rapid changes in
business processes, largely driven by workflow and business process management systems • Management Agility—through better decision making,
largely driven by the growth of business intelligence systems, including data mining and decision support systems
• Agility characterizes both internal operations as well as external relationships with customers, partners, suppliers, and others.
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Business Value of Emerging Technologies
• Now more than ever organizations need to be agile—they need to have the ability to expand easily or to introduce products, services or other offerings quickly. Organizations need to be able to expand globally and literally overnight.
• The introduction of cloud computing, utility computing, microservices or distributed computing, and Software as a Service now help to facilitate organizations’ ability to operate anywhere, anytime, and expand technology assets simply and easily.
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Cloud Computing • There are several key features which define cloud computing, listed
below: • Agility – Cloud computing provides the ability to rapidly provision
infrastructure and services.
• Cost – Cloud computing can lower entry costs for organizations, and also facilitates a “pay as you go” model.
• Device and Location Independence – Because cloud computing is browser- based and available through the internet, the cloud is available through any client.
• Multi-tenancy – Cloud computing provides the ability to share multiple resources across consumers, typically through virtualization.
• Reliability – Typically cloud vendors must provide critical service features and functionality to their consumers, much like a utility company. Therefore, backup, recovery, disaster recovery and business continuity are of critical importance to cloud computing vendors.
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Cloud Computing Features Cont.
• Scalability – Since infrastructure within the cloud can be easily provisioned, on-demand scalability is an extremely important asset of cloud computing.
• Security – With cloud computing, there is a centralization of security. Still, there are concerns with this model, such as loss of control of sensitive data and the lack of security for stored kernels.
• Maintenance – Cloud computing applications can be easier to maintain since the applications do not need to be installed on a client directly.
• Metering – Cloud computing usage and application usage can be monitored; therefore, consumers only pay for resources they use.
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Cloud Computing Service Models
• There are several different types of cloud models: • Infrastructure As A Service
• Platform As A Service
• Software As A Service
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Software as a Service
• Provides consumers with a “pay as you go” or on-demand software model.
• This removes the need for organizations to distribute software internally and instead provides them with a simple mechanism to license and leverage software on an as-needed basis.
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Benefits of SaaS
• There are some major benefits for organizations that move towards a SaaS model, including: • Saving money by not having to purchase servers or other software to support
use
• Focusing budgets on competitive advantage rather than infrastructure
• Incurring only a monthly obligation rather than an up-front capital cost
• Reducing the need to predict scale of demand and reducing infrastructure investment up-front, as available capacity matches demand
• Enhancing flexibility and scalability
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Microservices
• Takes advantages of the benefits of cloud computing
• Focused on a system’s cohesion and reduces the system’s coupling.
• Each service can run within an isolated instance within a virtualized space commonly referred to as a container.
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Microservices ~ containers
• Containers are encapsulated services which allow for characteristics such as: • Load balancing
• Auto-scaling
• Multiple containers can be spun up and torn down on demand with no service interruption
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Managing Containers
• Having containers means having potentially thousands of services available at any point in time
• Managing those containers and versions of them can be challenging
• Technologies like Docker Swarm and Kubernetes allow for management and deployment of those containers
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Summary
• Discussed functional business systems, described and provided examples
• Discussed IT System Extent and Visibility discussed the importance of it
• Discussed the organizational and operational impact of IT
• Discussed the business value of emerging technologies
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