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Chapter 7

Chapter 7 Notes

Financial Accounting
Course Code
Tim Richardson

of 3
Chapter 7 Notes
a service-oriented architecture (SOA or SoA) is a software architecture perspective that focuses on the development, use, and
reuse of small self-contained blocks of code (called services) to meet many or even all the application software needs of a firm
thus new applications build on past solutions organically using established building blocks
if SoA is adopted, firm says that instead of bringing in brand new systems, all software developed from reusable units of code
SoA is a high-level, holistic organizational approach as to how an organization views and acts on all its software needs
with a service-oriented architecture philosophy, the organization would
obe a lean, agile organization that takes advantage of every resource in the most efficient and effective way
oreact quickly in proactive way to perceived changes in market, competition, customer demographics, wants, and desires
orespond quickly to and adapt to new advances in technology
otransform its processes, structure, and HR initiatives to match a changing and dynamic workforce
Information Needs
an SoA approach to information require that
oinformation be in a standard format no matter where it exists
ostrict and rigorous integrity control mechanisms are in place to ensure the completeness, accuracy, and validity of the info
ono duplicate information exists in disparate silos anywhere in your organization
oany kind of information from any source (even external) can be quickly and easily coupled with other information
Hardware and Software Infrastructure
in a corporation, the IT infrastructure includes the hardware, software (such as ES software), and information that (1) ensure the
components work together and (2) enable people, business processes, and customers to interact and perform their tasks
Enterprise Resource Planning (ERP) Revisited
two of the primary goals of an ERP system within a service-oriented architecture are
1) provide interoperability within an ERP vendor and for modules among different ERP vendors
2) hide the underlying IT infrastructure of information and hardware from end-users and customers
Advantages Disadvantages
Centralize database
Reliable information access Time consuming
Avoid data and operations redundancy Expensive
Delivery and cycle time reduction Lack of conformity of modules
Cost reduction Vendor dependence
Easy adaptability Too many features, too much complexity
Improved scalability Questionable scalability and global reach
Global reach Not enough extended ERP capability
E-business support
Supporting Network Infrastructures
the fundamental underlying infrastructure for any IT environment is a network, two or more computers sharing information,
software, peripheral devices, and processing power
a decentralized infrastructure involves little or no sharing of IT and other resources such as information
generally, this arises from users or departments developing their own systems or applications, without any central control
a centralized infrastructure involves sharing information systems in one central area or on one central mainframe
the great advantage of a centralized infrastructure is that it allows a high degree of control, making it easy to (1) maintain
standards of hardware, software, procedures, and operations and (2) control access to information
the main disadvantage of a centralized infrastructure is its inflexibility
a distributed infrastructure involves distributing the information and processing power of IT systems via a network
by connecting all the information systems via a distributed infrastructure, all locations can share information and applications
the major benefit of that is that processing activity can be allocated to the location(s) where it can most efficiently be done
distributed infrastructures are more complex than centralized infrastructures for several reasons—(1) distributed infrastructure
must be able to determine the location of specific applications and information; (2) it must be more sophisticated in determining
the optimal way to request the application and information
a client/server infrastructure (or client/service network) has one or more computers that are servers that provide services to other
computer, called clients; it is a form of distributed infrastructure
the basic notion of a client/server infrastructure is that application processing is divided between the client and the server
primary advantage of the client/server infrastructure is that it offloads the application programs and information from the server;
however, because processing occurs at many client locations, and the client and server interact frequently and extensively,
information must flow rapidly between server and clients for adequate performance
the client/server infrastructure thereby places a heavy load on the network capacity, which can sometimes be a disadvantage
in a tiered infrastructure (sometimes referred to as layered infrastructure), the IT system is partitioned into tiers (or layers) where
each tier (or layer) performs a specific type of functionality
the concept of a tiered infrastructure has evolved from 1-tier to n-tiers
a “tier” can be defined as one of two or more rows, levels, or ranks arranged one above another
oa 1-tier infrastructure is the most basic setup because it involves a single tier on a single machine
oa 2-tier infrastructure is the basic client/server relationship; in essence, the client handles the display, the server handles the
request, and the application tier is contained on one or both of the two tiers
oa 3-tier infrastructure is the most common approach used for Web applications today
oa n-tier infrastructure balances the work of the network over several different servers; traditionally, an n-tier infrastructure
starts with a basic 3-tier model and expands on it to allow for greater performance, scalability, and a host of other benefits
Business Continuity Planning (BCP)
BCP is a rigorous and well-informed organizational methodology for developing a business continuity plan, a step-by-step
guideline defining how the organization will recover from a disaster or extended disruption of its business process
the BCP methodology is as follows—(1) organizational strategic planning; (2) analysis; (3) design; (4) implementation; (5)
testing; and (6) maintenance—between testing and maintenance there can be changes made to the disaster recovery planning
Summary: Student Learning Outcomes Revisited
1. Describe how a service-oriented architecture can be used as a philosophical approach to help the organization of the
future to meet all its IT-related needs.
A service-oriented architecture can be applied to help your organization respond to
Customers—through multichannel service delivery and the provision of customizable products and services
End-users—through fully integrated ERP systems supporting interoperability and mobile computing
Software development—as a framework for supporting development methodologies such as RAD, XP, and agile that lead
to exciting new deployments such as Web 2.0
Information needs—including access to all types of integrated information (and business intelligence and knowledge),
standard information formats, integrity controls, and the elimination of redundant information
Hardware requirements—through the integration of different technologies, providing large storage capacities, and
maintaining safe and secure telecommunications platforms
2. Define and describe the various hardware and software infrastructure considerations in an organization.
Hardware and software infrastructure considerations include
Enterprise resource planning (ERP) systems provide interoperability within ERP vendor and among modules of different
ERP vendors and also hide the underlying IT infrastructure of information and hardware from end-users and customers.
Network infrastructures include decentralized—little or no sharing of IT and other resources such as information;
centralized—sharing of information systems in one central area or central mainframe; distributed—distributing the
information and processing power of IT systems via a network; client/server—one or more computers are servers that
provide servers to other computers, client clients; and tiered (layer)—the IT system is partitioned into tiers where each tier
performs a specific type of functionality.
3. Compare and contrast commonly used metrics for assessing the success of IT systems and IT-related initiatives.
Metrics are simply ways to measure something. Common IT metrics can be categorized as
Infrastructure-centric metrics—Measures of efficiency, speed, and/or capacity of technology, including throughput,
transaction speed, system availability, accuracy, response time, and scalability
Web-centric metrics—Measures of the success of Web and e-business initiatives, including unique visitors, total hits, page
exposures, conversion rate, click-through, cost-per-thousand (CPM), abandoned registrations, abandoned shopping carts
Call centric metrics—Measures of the success of call centre efforts, including abandon rate, average speed to answer
(ASA), time service factor (TSF), and first call resolution (FCR)
Financial metrics—Also called capital analysis financial models, including payback method, cost-benefit ratio, return on
investment (ROI), net present value (NPV), and internal rate of return (IRR)
4. Describe business continuity planning (BCP) and its phases.
Business continuity planning (BCP) is a rigorous and well-informed organizational methodology for developing a business
continuity plan, a step-by-step guideline defining how the organization will recover from a disaster or extended disruption of its
business processes. The phases of business continuity planning include
Phase 1: Organizational strategic plan—it all starts here with understanding the relative importance of resources, systems,
processes, and other organizational assets.
Phase 2: Analysis—perform impact analysis, threat analysis, and impact scenario analysis, and build a requirement
recovery document, a detailed document that describes (1) the distinction between critical and non-critical IT systems and
information, (2) each possible threat, and (3) the possible worst-case scenarios that can result from each disaster.
Phase 3: Design—using the requirement recovery document, create a disaster recovery plan, which identifies collocation
facilities, hot sites, and cold sites and illustrates a disaster recovery cost curve (the cost to your organization of the
unavailability of information and technology as compared to the cost to your organization or recovering from a disaster
over time).
Phase 4: Implementation—engage business that will provide collocation facilities, hot sites, and cold sites; implement
necessary procedures for recovering from a disaster; train employees; and evaluate each IT system to ensure its
configuration is optimal for recovering from a disaster.
Phase 5: Testing—execute simulated scenarios of disasters and have employees execute on the disaster recovery plan.
Phase 6: Maintenance—continually assess new threats and re-evaluate your IT systems and related assets to determine
their changing importance to the organization.