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02-Enablers-S - Infrastructure and Technology Issues Ronald...

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Infrastructure and Technology Issues Ronald S. Lau, Ph.D. HKUST ISOM
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Learning Objectives Understand the impact of systems integration on efficient and effective execution of business transactions Describe functional (horizontal) and hierarchical (vertical) silos in an organization Identify the challenge of physical and logical systems integration Discuss the role of ERP in systems integration Describe different types of IS architectures Describe different tier structure ERP systems Know the key terms and concepts of data management Describe the concept of relational database with examples 2
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Presentation Outline Systems integration Why systems integration? From functional silos to integration Physical vs. logical integration ERP’s role in system integration Enterprise systems architecture Database management systems 3
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Empower Decision Making Through Information Technology Example: You’re in Paris, and you decide to use your American Express card. Getting credit approval involves a 46,000-mile journey over phones and computers. The job can be completed in __________________!!! Peter Large The Micro Revolution Revisited 4
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More Interesting Facts Stock orders handling in NASDAQ _____________ second per transaction ________ transactions can be executed at the blink of eye (about 0.3 second) Sales order shipment handling in Amazon.com ________ orders per second 5
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What’s Behind the Information Evolution? Moore’s Law: The information density on silicon integrated circuits doubles every 18 to 24 months. The cost of computing power drops roughly 30% every year, and microchips are doubling in performance power every 18 months. -- Business Week If we had similar progress in automotive technology, today you could buy a Lexus for about $2. it would travel at the speed of sound, and go about 600 miles on a thimble of gas. -- John Naisbitt 6
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Development of Information Technologies and Organizational Integration Integration Levels Time Integration of different functional areas Data processing support for individual functional areas Process-oriented reorganization Inter-organizational integration in static networks Inter-organizational integration in dynamic networks 1960 1970 1980 1990 2000 Many organizations are still far behind to achieve systems integration 7
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Organizational Impacts on IS Development Horizontal silos Departments or business areas _______________ information systems Vertical silos Hierarchical management structure Different types of information systems (Transaction processing vs. strategic planning) 8
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Challenges to Systems Integration 9
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Physical vs. Logical Systems Integration Physical systems integration _________________ level of change Goal: Provide seamless connectivity between heterogeneous systems Issue: Feasibility and return on investment Logical systems integration _________________ level of change Goal: Develop information systems that allow shared data for all stakeholders based on need or authorization Issue: Resistance to change 10
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