James Nowotarski 22 May 2008 IS 425 Enterprise Information Spring 2008

James Nowotarski

22 May 2008

IS 425Enterprise Information

Spring 2008

2

Topic Duration Infrastructure (5/15 recap) 30 minutes

Operations management 45 minutes

*** Break 15 minutes

Current event reports 30 minutes

Project management 60 minutes

Wrap-up (incl. midterm recap) 15 minutes

Today’s Agenda

3

IT Portfolio

Transactional

Informational

Strategic

Infrastructure

Applications and Data

Middleware

Hardware/Network

System Software

IT Infrastructure

Public Infrastructure

Business processes

IT Infrastructure

• This is the scope defined by most sources

• Focus on lower levels of stack

• Includes• Facilities• People• Processes

• Includes components shared across business units

Some apps, e.g., email and ERP, may be considered part of the organization’s IT infrastructure

Moore’s Law Revisited (Ray Kurzweil)

Mapping Computing Eras to Technology Maturity Curve

TimeIncubationAdaptationTake Up Maturity

Degree of Take-up

High

Life Cycle Stage

• Mainframe

• Distributed

• Internet

• Mobile

• ???

Internet

IT Capability Growth and Convergence

DistributedMainframe

High

Low

BusinessCapability

andPerformance

Impact

Automating Tasks

ReengineeringProcesses

Transforming Businesses

and Industries

Time

Expanding Impact of IT

Computing Era:

Mapping Computing Eras to Technology Maturity Curve

Underlying Technology: Hip and Hype

Technology Trigger

Peak ofInflated

Expectations

Trough of Disillusionment Slope of Enlightenment Plateau of

Productivity

time

visibility

Years to mainstream adoption:

less than 2 years 2 to 5 years 5 to 10 years more than 10 yearsobsoletebefore plateau

As of June 2007

XML-Enabled Database Management Systems

Linux as a Mission-Critical DBMS Platform

OSS DBMS for Non-Mission-Critical Applications

Real-Time Data Integration

Data Warehouse Appliances

Data Federation/EII

OSS DBMS for Mission-Critical Applications

Data Profiling

Comprehensive Data Integration Tool Suites

XQuery

Master Data Management

Data Service Architectures

Enterprise Information Management

SaaS Data Integration and Data Quality

Information-Centric Infrastructure

Open-Source Data Integration Tools

Entity Resolution and Analysis

Data Quality DashboardsMetadata Ontology

Management

Content Integration

Data Quality Tools

From "Hype Cycle for Data Management, 2007," 2 July 2007

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Today’s Agenda

Operations Management - What is it?

• Computer hardware (servers, workstations, etc.)• Communications lines and equipment (hubs, routers, switches,

gateways, etc.)• Software (applications, system software, utilities)• Data centers (control rooms, console operations, libraries,

backup, etc.)• Disaster recovery - detailed procedures/processes for

recovering data and applications• Security (firewalls, intrusion detection, user authentication,

etc.)• Personnel for the above (e.g., operators, programmers,

technicians, etc.)

Operations Management is the planning and management of . . .

Where Operations Management Fits

Director - CIO

Director, IS Planning

Director, Software Engineering

Manager, Production

Director, Business Technology

Manager, Administration

Director, Technical Services

• Enterprise Arch• Security• S/W Evaluation

• Business analysts• Program managers• Data warehouse

• Developers• Development tools

• Operations• Help desk• Application support

• Network• PC technicians

• $4B revenue company• 400 person IT shop, $70M

IT Outsourcing

Consider business, economic, and technical factors in deciding whether to outsource

Outsource or Insource?

Outsource

Insource

Sub-critical Critical

Differentiating

Commodity

Competitiveadvantage

In-house economies of scale

IT Information Library (ITIL)

Overview

•Best practices framework for IT service management• “It has become increasingly recognized that information is

the most important strategic resource that any organization has to manage. Key to the collection, analysis, production and distribution of information within an organization is the quality of the IT Services provided to the business.”

•Resources include publications, tools, and accreditation/training •Most widely accepted approach, adopters include:

• Microsoft • IBM • Barclays Bank • HSBC • Procter & Gamble



Definition

“A service is a means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks.” – Overview of ITIL v3, 2007, www.itil.co.uk

Service Level Agreements

• Contracts that detail the level of service required from a service provider to the user of those services

• Clearly articulate and document the level of service that users of the computing environment expect to receive

• Describe specific conditions by which the service provider is held liable for a service interruption and the penalties to be incurred

• Require an accurate way of measuring the service levels achieved


Sample Language

• Downtime – defined as a sustained packet loss in excess of 50 percent for 15 consecutive minutes due to the failure of the hosting provider to provide services for that period

• Each downtime period entitles customer to receive a credit equal to one day’s recurring connectivity charge

Source: Applegate, C., Austin, R., & McFarlan, F. (2007). Corporate information strategy and management: Text and cases (7th ed.). New York: McGraw-Hill


Users

Service Management

SLA

Vendors Developers

SystemsManagement• Network Mgmt• Server Mgmt• etc.

Internal SLAExternal SLA


Table of Contents

• Dates (start, expiration)

• Types of services provided

• Service measures

• Roles/Responsibilities (provider, consumer)

• Resources needed and/or costs charged

• Reporting mechanism

• Signatures


Table of Contents

• Dates (start, expiration)

• Types of services provided

• Service measures

• Roles/Responsibilities (provider, consumer)

• Resources needed and/or costs charged

• Reporting mechanism

• Signatures


Disciplines

Performance Management

Configuration Management

Availability

Reliability

Response time

Application versions & enhancements

Accounting Management Reporting procedure

Fault Management Incident management, e.g., • database failure• workstation failure

Security Management

Recovery ManagementBackup

Recovery

Capacity Planning

Online Systems

Batch SystemsOutput handling

Schedule execution

Service Types

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Key Trends of IT Infrastructure and Operations Management

Open ________ Virtualization/ROI Optimization Net-centric models of IT service delivery (vs.

in-house)Web services (e.g., Flickr, Google Maps)Cloud computing/Software as a Service

(SaaS)/On demand/Utility/Grid• Run in the cloud• Develop in the cloud


Middleware

Hardware/Network

System Software

______ as a Service


Business processes

IT Infrastructure in the “Cloud”

• Amazon • EMC• Google• Microsoft

• WebEx• Netsuite• eCollege

Applications in the “Cloud”


Middleware

Hardware/Network

System Software

______ as a Service


Business processes

Ecosystem in the “Cloud”

• Salesforce.com

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Microsoft sees shift from licenses to subscriptions

“[Microsoft] will see more and more companies abandon their own in-house computer systems and shift to 'cloud computing,' a less expensive alternative." – Chris Capossela, senior VP, Office

"In five years, 50 percent of our Exchange mailboxes will be Exchange Online," said Capossela

SaaS not for everybody

“Most large enterprises still do not prefer SaaS applications for mission-critical applications such as ERP and will not likely use SaaS platforms in these areas for several more years”

Source: McKinsey, April 2008

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Today’s Agenda

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Project management skills are critical in today’s business environment

“The whole discipline and art of project management is going to be the essence of management training, operational excellence, and value added”

- Tom Peters

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Project management skills are critical in today’s business environment (cont.)

“In the new economy, all work is project work. And you are your projects! ”

- Tom Peters

http://www.fastcompany.com/magazine/24/wowproj.html

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$3.0T spent on U.S. projects in 200525% of U.S. gross domestic product (source:

Project Management Institute) As much as $13T spent globally on projects

Huge sums are spent on projects

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Strategies are typically implemented through projects

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Project Management Institute (PMI)Current membership: 150KInternational

PMI’s Project Management Body of Knowledge (PMBOK)

Certifications: PMP, CAPM, Project+

Project management is a professional discipline having its own body of knowledge and skills

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Discussion

1. What is a project?

2. Compare/Contrast project with process

3. Compare/Contrast project with program

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1. What is a Project

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Project

A complex, nonroutine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs

Gray, C. (2008). Project management: The managerial process. New York: McGraw-Hill.

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Project

An endeavor that has a definable objective,

consumes resources,

and operates under time, cost, and quality constraints

(In search of excellence in project management, p.6)

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2. Project vs. Process

x

39

3. Project vs. Program

x

IT project failure rates are high

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Source: Standish Group, 2007

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Strategies are typically implemented through projects

Identifying Strategic Imperatives

"How Can I Best Understand What The Business Wants?""How Can I Best Understand What The Business Wants?"

Function: nounEtymology: Greek stratEgia generalship, from stratEgos

1 a (1) : the science and art of employing the political, economic, psychological, and military forces of a nation or group of nations to afford the maximum support to adopted policies in peace or war.

Archidamus

Pericles

strat·e·gyUNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549-1004

FORM 8-K

CURRENT REPORTPURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) March 14, 2007

"As one of the largest financial service providers in the country, the opportunity we see in the future is to finance and encourage the new products, services and technologies that will help meet future global energy needs. Our goal is to help our customers and clients take the lead in reducing greenhouse gas emissions, and to protect the physical environment on which economic activity depends. We will launch several programs in 2007."

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Relevance to project mgmt?

Project Summit, Nov. 13, 2006

Existing Paradigmof Project Management

Value

Deliverables

ActivitiesTime

45

Keep eye on horizon (value)

Businessvalue

46

• High-level executive who endorses and provides political support for the completion of a project

Key to project success:Project sponsor

47

Need for balance

Flamholtz Leadership Effectiveness Framework

• What is it?

• How can it be used?

Dr. Eric Flamholtz

Flamholtz Leadership Framework

• What are the three leadership style categories?• What are the two situational factors that account

for 80-90% of the influence on selection of leadership style?

• What are the 5 leadership tasks?• What are the two key foci of leadership tasks that

should be balanced in effective leaders?

Flamholtz Leadership Effectiveness Framework

EffectivenessLeadershipStyle

TaskProgrammability

Potentialfor JobAutonomy

Situational Factors

Situation determines the style that will most likely be effective

Optimal leadership style depends on degree of job autonomy and task programmability

Factors Affecting Optimal Leadership Style

Potential for Job Autonomy

Low High

Low

High

Task Programmability

Directive

Interactive

Interactive

Nondirective

Project Organization Structure

53

Functional Organization

Marketing Engineering Manufacturing Customer Svc

Function 1

Function 1

Function 1

Function 1

CEO Project coordination

Project

54

Functional Organization

Advantages Disadvantages

55

Function 1


Function 1

Function 1

Function 1

CEO

Dedicated Project Organization

PMO

SOX

Prod A Dev’t

IT sys dev’t

• Marketing• Eng• Mfg• Cust Svc

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Dedicated Project Organization


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Function 1


Function 1

Function 1

Function 1

CEO

Matrix Organization

PMO

SOX

Prod A Dev’t

IT sys dev’t

Prod A Dev’t Cust Svc

Prod A Dev’t Marketing

Prod A Dev’t Engineering

Prod A Dev’t Manufacturing

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Matrix Organization

59

Matrix Organization


60

Need for balance

5/29

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Today’s Agenda

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Readings on management of IT function Continue on Assignment 4 DL: Discussion on Systems development

(due June 5)

For May 29

Documents

James Nowotarski 22 May 2008 IS 425 Enterprise Information Spring 2008