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Two histories of enterprise computing. A history of enterprise computing I: Calculation systems. 1950s-80s Single purpose Eliminate tedious human work Examples: Payroll, General ledger, Inventory Technology used: Mainframes, magnetic tapes, batch processing. - PowerPoint PPT Presentation

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Page 1: Two histories of enterprise computing

Two histories of enterprise computing

1

Page 2: Two histories of enterprise computing

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A history of enterprise computing I: Calculation systems 1950s-80s Single purpose Eliminate tedious human work Examples: Payroll, General ledger, Inventory Technology used: Mainframes, magnetic

tapes, batch processing

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A history of enterprise computing II: Functional systems

1975-2001 (say) Use computers to improve operations Applications: Human resources, order entry,

manufacturing resource planning Technologies: Mainframes, PC’s, LAN’s

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Functional systems Typically contained within a department Islands of automation Applications independently developed and deployed Driving force: availability of mini-computers

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Functional system applications Human resources System Accounting and finance systems Sales and marketing System Operations management System Manufacturing Systems

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History part III: Pressures on business forced integration It becomes less and less possible to think about isolated

systems. The world is becoming more joined up.

eCommerce Need to allow access to customers

Out sourcing Need to integrate with 3rd party systems

Mergers and acquisitions Regulation

Post-9/11 and Sarbanes-Oxley requires must better integration and reporting

Post-credit crunch regulation still emerging

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Organisational systems

2000-date (say) Use computers to drive efficiency and support control

across organisations and beyond to partners and suppliers

Applications: Risk management, customer relationship management, supply chain management

Technologies: Middleware, business intelligence, data integration technologies

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Types of Organizational information Systems Administrative systems Scheduling / Transaction systems Value oriented systems Reporting and controlling systems Analysis and information systems Planning and decision support systems

Page 9: Two histories of enterprise computing

Exercise Each group chose a different business function within

the organisation.

Define how a customer will be represented. Personal details 1 or more details specific to your selected business function

9

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Problems with function based application Sharing of data between systems

Data duplication Data inconsistency

Applications that don’t talk to one another Limited or lack of integrated information

Isolated decisions lead to overall inefficiencies Increased expenses

Stovepipe systems

HR Sales

Manufacturing

Page 11: Two histories of enterprise computing

Cloud computing On-demand access to a shared pool of

configurable computing resources

Exercise: Is cloud computing the next stage beyond

organisational systems?

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An architectural history of computing 1 tier architecture

Presentation, application logic, and resource management were merged into a single tier

Often associated with ‘legacy’ mainframe systems 2 tier architecture

Separation of presentation tier from other 2 tiers (app + resource)

'client/server' systems 3 tier architecture

Separation of application logic and resource management tier

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Tiers of an architecture

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Presentation tier

Application logic tier

Resource management tier

Client

info

rmat

ion

syst

em

Visualise

Calculate

Store

Browser

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Tiers of an architectureBrowser

Presentation tier

Application logic tier

Resource management tier

Client

info

rmat

ion

syst

em

How the data should appear to the user and how the user should interact with the interface

The sequence of screens presented to the user and the data entered by the user

The starting point for most tasks E.g. Entering an order,

adding an employee

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Tiers of an architecture

Presentation tier

Application logic tier

Resource management tier

Client

info

rmat

ion

syst

em

Data Processing (Business Logic & calculation) The algorithms are

implemented in this tier This tier is often referred to

as Services, Business logic, Business rules, Server

Were the ‘work’ of the application occurs E.g. Calculating the value of

the order, creating the record to be entered into the employee database

Calculate

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Tiers of an architecture

Presentation tier

Application logic tier

Resource management tier

Client

info

rmat

ion

syst

em

Deals with and implements different data sources of Information Systems The 'data layer' in a

restricted interpretation as in JEE or Database Management System

Can also be a gateway to recursively using other Information systems

Where the business data which will persist is stored E.g. The completed order,

the employee record

Store

Page 17: Two histories of enterprise computing

Adding tiersAdvantagesWith growing number of tiers

one gains: Flexibility

Add servers in each tier to meet demand

Functionality Introduce new functionality to each

tier without changing the other tiers Possibilities for distribution

Able to locate servers near to main users

Disadvantages Each tier increases

communication costs Network traffic increases

Complexity rises leading to higher cost and risk Higher complexity of development:

Now need to consider where functionality is located and how to communicate between tiers

Higher complexity of management and tuning

Redundancy increases Potentially have too many servers in

each tier which will be under-utilised

17

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Design of 1 – Tier Architecture

Presentation layer

Application logic layer

Resource management layer

Client

info

rmat

ion

syst

em

Presentation, application logic, and resource management were merged into a single tier

Advantages: Simplicity easy to optimise performance on a single

server no compatibility issues between tiers no client development, maintenance and

deployment cost

Disadvantages: Difficult to manage/modify Poor scaling on system is on a single system lack of qualified programmers for these

systems (for 1-tier ‘legacy’ systems)

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2 - Tier Architectures

fig 1.7 p.12

Client

Info

rmat

ion

syst

em

Resource management layer

Application logic layer

Serv

er

Presentation layer

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2 - Tier Architectures

Separation of presentation layer from other 2 layers (app + resource)

Client/server systems with thin clients/fat clients Must use RPC (Remote Procedure Call) to communicate between

client and server tiers Need for standardisation for inter-tier communication

Advantages portability no need for context switches or calls between component for key

operations Disadvantages

Increased complexity Risk of incompatibilities between clients developed at different

times

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3 - Tier Architectures

info

rmat

ion

syst

em

resource management layer

application logic layer

middleware

client

presentationlayer

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3 - Tier Architectures

Separating RM (resource management) from application logic layer

Additional middleware layer between client and server integration logic application logic

Lead to the introduction of clear RM layer interfaces

Good at dealing with integration of different resources

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Business logic resides in middle tier Alternatives

Client tier leads to Fat clients Reimplementing it for each different type of client Redistributing clients after each software update

Data tier leads to Vendor and technology dependence grows Different applications have different needs for the same data Performance issues in resource usage

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3 - Tier Architectures

Advantages scalability by running each layer on a different server scalability by distributing application logic tier across many

servers Flexibility to introduce multiple application logic servers running

different application logic

Disadvantages performance loss if distributed widely over intranet or internet Complexity of managing 3 tier systems

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3 - tier Architectures

info

rmat

ion

syst

em

resource management layer

application logic layer

middleware

client

presentationlayer

GUI clientsC++, VB, Java

MiddlewareServer

Databases Legacy Systems

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Middleware Middleware refers to the software which is common to multiple

applications and builds on the network transport services to enable ready development of new applications and network services.

Middleware typically includes a set of components such as resources and services that can be utilised by applications either individually or in various subsets. Examples of services: Security, Directory and naming, end-to-end

quality of service, support for mobile code. Examples:

OMG’s CORBA J2EE - Java 2 Enterprise Edition Microsoft’s .Net

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Middleware features Allows communication

through a standard language across different platforms between legacy and modern applications

Make 3-tier architecture safe by ensuring data/communication between tiers is protected by taking care of transactions between servers data conversion authentication communications between computers

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Middleware features Makes it easier to write 3-tier applications by providing

runtime environment for components in the middle-tier Component lifecyle and management Transaction, event and security services Provides connections to databases, mainframes and legacy

systems

Separates client-tier from the data source Clean separation of user-interfaces and presentation logic from

the data source

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n - tier

3 tier systems rarely exist as most systems connect to other applications or databases to complete the processing task E.g. An airline booking system connects with VISAcard systems to collect

payment N-tier extends 3-tier to allow for connections to these additional tiers

How many tiers?

Page 30: Two histories of enterprise computing

Adding tiersAdvantagesWith growing number of tiers

one gains: Flexibility

Add servers in each tier to meet demand

Functionality Introduce new functionality to each

tier without changing the other tiers Possibilities for distribution

Able to locate servers near to main users

Disadvantages Each tier increases

communication costs Network traffic increases

Complexity rises leading to higher cost and risk Higher complexity of development:

Now need to consider where functionality is located and how to communicate between tiers

Higher complexity of management and tuning

Redundancy increases Potentially have too many servers in

each tier which will be under-utilised

30

Page 31: Two histories of enterprise computing

Exercise Why is performance a harder issue to resolve with n-tier

systems than with 1-tier systems?

Classify cloud computing in terms of the number of tiers

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Classification of Information systems

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Organisational Hierarchy

Organisational Structure and departmental organisation

Business processes

Classification of Information Systems

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34SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN

Types of system Groups Served

STRATEGIC LEVEL SENIOR MANAGERS

MANAGEMENT LEVEL MIDDLE MANAGERS

OPERATIONAL OPERATIONALLEVEL MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &DATA WORKERS

RESOURCESMARKETING & ENGINEERING

Information System from business perspective

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Four General Kinds of System Operational-level systems

support operational managers by monitoring the day-to-day’s elementary activities and transactions of the organization. e.g. TPS.

Knowledge-level systems support knowledge and data workers in designing products,

distributing information, and coping with paperwork in an organization. e.g. KWS, OAS

Management-level systems support the monitoring, controlling, decision-making, and administrative

activities of middle managers. e.g. MIS, DSS

Strategic-level systems support long-range planning activities of senior management. e.g.

ESS

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36SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN

Types of system Groups Served

STRATEGIC LEVEL SENIOR MANAGERS

MANAGEMENT LEVEL MIDDLE MANAGERS

OPERATIONAL OPERATIONALLEVEL MANAGERS

KNOWLEDGE LEVEL KNOWLEDGE &DATA WORKERS

RESOURCESMARKETING & ENGINEERING

Horizontal information flows

Ver

tical

info

rmat

ion

flow

s

Information System from business perspective

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Management Structures and Information Requirements

Higher up the pyramid, the less structured the decision Less defined External orientation More summarized information Future oriented Less frequent Less accurate

Lower down the pyramid, the more structured the decision More defined Internal orientation More detailed information Historical More frequent More accurate

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A Framework for classification ofIT system

• Executive Support Systems (ESS)• Management Information Systems (MIS)• Decision Support Systems (DSS)• Knowledge Work Systems (KWS)• Office Automation Systems (OAS)• Transaction Processing Systems (TPS)

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Transaction Processing Systems Transaction Processing Systems (TPS)(TPS)

Computerized system that performs and records the Computerized system that performs and records the daily routine transactions necessary to conduct the daily routine transactions necessary to conduct the business; these systems serve the operational level of business; these systems serve the operational level of the organizationthe organization

• TYPE: Operational-levelTYPE: Operational-level• INPUTS: transactions, eventsINPUTS: transactions, events• PROCESSING: updatingPROCESSING: updating• OUTPUTS: detailed reportsOUTPUTS: detailed reports• USERS: operations personnel, supervisorsUSERS: operations personnel, supervisors• DECISION-MAKING: highly structuredDECISION-MAKING: highly structured

EXAMPLE:EXAMPLE: payroll, accounts payable payroll, accounts payable

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Typical Applications of TPS

TYPE OF TPS SYSTEMSales/ Manufacturing! Finance/ Human Other typesmarketing production accounting resources (e.g., university)systems systems systems systems

Major functions Sales management Scheduling Budgeting Personnel recard Admissionsof system Market research Purchasing General ledger Benefits Grade records

Promotion Shipping/receiving Billing Cornpensation Course recordsPricing Engineering Cost accounting Labor relations AlumniNew products Operations Training

Major Sales order Materials resource General ledger Payroll Registration systemapplication information system planning systemssystems Market research Purchase order Accounts Employee records Student transcript

system control systems receivable/payable systemPricing system Engineering Budgeting Benefit systems Curriculum class

systems control systemsQuality control Funds management Career path Alumni benefactorsystems systems systems system

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Office Automation Systems Office Automation Systems (OAS)(OAS)

Computer system, such as word processing, electronic mail system, and scheduling system, that is designed to increase the productivity of data workers in the office.

• TYPE: Knowledge-levelTYPE: Knowledge-level• INPUTS: documents, schedulesINPUTS: documents, schedules• PROCESSING: document management, scheduling, communicationPROCESSING: document management, scheduling, communication• OUTPUTS: documents; schedulesOUTPUTS: documents; schedules• USERS: clerical workersUSERS: clerical workers

EXAMPLE:EXAMPLE: document imaging system document imaging system

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Decision Support Systems Decision Support Systems (DSS)(DSS) Information system at the management level of an organization that combines data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making.

•TYPE: Management-levelTYPE: Management-level• INPUTS: low volume dataINPUTS: low volume data• PROCESSING: simulations, analysis PROCESSING: simulations, analysis • OUTPUTS: decision analysisOUTPUTS: decision analysis• USERS: professionals, staff managersUSERS: professionals, staff managers• DECISION-MAKING: semi-structuredDECISION-MAKING: semi-structured

EXAMPLE:EXAMPLE: sales region analysis sales region analysis

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Characteristics of Characteristics of Decision-Support SystemsDecision-Support Systems1. DSS offer users flexibility, adaptability, and a quick response.

2. DSS operate with little or no assistance from professional programmers.

3. DSS provide support for decisions and problems whose solutions cannot be specified in advance.

4. DSS use sophisticated data analysis and modelling tools.

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Management Information Management Information Systems (MIS)Systems (MIS)

Information system at the management level of an organization that serves the functions of planning, controlling, and decision making by providing routine summary and exception reports.

• TYPE: Management-levelTYPE: Management-level• INPUTS: high volume dataINPUTS: high volume data• PROCESSING: simple models PROCESSING: simple models • OUTPUTS: summary reportsOUTPUTS: summary reports• USERS: middle managersUSERS: middle managers• DECISION-MAKING: structured to semi-structuredDECISION-MAKING: structured to semi-structured

EXAMPLEEXAMPLE: annual budgeting: annual budgeting

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Characteristics of Management Characteristics of Management information Systemsinformation Systems

1. MIS support structured decisions at the operational and management control levels. However, they are also useful for planning purposes of senior management staff.

2. MIS are generally reporting and control oriented. They are designed to report on existing operations and therefore to help provide day-to-day control of operations.

3. MIS rely an existing corporate data-and data flows.4. MIS have little analytical capability.5. MIS generally aid in decision making using past and present

data.6. MIS are relatively inflexible.7. MIS have an internal rather than an external orientation.

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Executive Support Systems (ESS)Executive Support Systems (ESS) Information system at the strategic level of an organization that address unstructured decision making through advanced graphics and communications.

TYPE: Strategic levelTYPE: Strategic level• INPUTS: aggregate data; internal and externalINPUTS: aggregate data; internal and external• PROCESSING: interactivePROCESSING: interactive• OUTPUTS: projectionsOUTPUTS: projections• USERS: senior managersUSERS: senior managers• DECISION-MAKING: highly unstructured DECISION-MAKING: highly unstructured

EXAMPLEEXAMPLE: 5 year operating plan: 5 year operating plan

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A single software package like Microsoft Office or even an application like Microsoft Excel could be classified as any or all of the following: DSS, TPS, MIS, or ESS (albeit, a trivial ESS, DSS, etc.)

When considering classification, consider how the tool is used, not what it could be used for.

A tools meets a need posed by the enterprise A service is provided by the tool is a solution.

However, the world is not that However, the world is not that straight forwardstraight forward

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Classification of IT Systemby Organizational Structure

Departmental Information Systems Enterprise Information System Inter-organizational Systems

SWIFT (mostly network level) SABRE

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Classification of IT Systemby Functional Area

The accounting information system The finance information system The manufacturing (operations, production)

information system The marketing information system The human resources information system

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e.g. Sales & Marketing Systems Systems that help the firm identify customers for the firm’s

products or services, develop products and services to meet customer’s needs, promote products and services, sell the products and services, and provide ongoing customer support.

EXAMPLESSystem Description Organizational LevelOrder processing Enter, process, and track orders OperationalMarket analysis Identify customers and markets using Knowledge

data on demographics, markets,consumer behavior, and trends

Pricing analysis Determine prices for products Managementand services

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Classification of IT system by Business Processes

A business process is a set of coordinated tasks and activities, conducted by both people and equipment, that will lead to accomplishing a specific organizational goal.

Business process management (BPM) is a systematic approach to improving those processes.

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Examples of Business ProcessesFunctional Area Business ProcessManufacturing and production Assembling the product

Checking for qualityProducing bills of materials

Sales and marketing Identifying customersMaking customers aware of the productSelling the product

Finance and accounting paying creditorsCreating financial statementsManaging cash accounts

Human resources Hiring employeesEvaluating employees' job performanceEnrolling employees in benefits plans