Managing Information: Information Technology Architecture

1. Managing Information:Information Technology Architecture Infsy 540 Dr. R. Ocker

2. Strategy • What is a business strategy?

3. Strategy • What is the relationship between IT and the business strategy?

4. managers’ dilemma managers’ dilemma: • cannot leave important IT decisions to computer professionals to make alone, but managers are not technically competent to make the “right” decisions without technologists

5. managers’ dilemma • dilemma resolved by developing an information technology architecture • bridge between strategy and technology • defines a company’s IT infrastructure • includes policies and guidelines that govern the IT resources • computers, data, software, communications facilities

6. Link IS plan to business plan • Linkage achieved if • corporate business plan states information needs • IS plan refers to requirements of business plan & is checked against plan • non-IS managers participate in IS planning process and vice versa • corporate & IS planning calendars are in synch

7. Strategy • IT must support the business strategy • 3 dimensions of support • content • timing • people involved in planning process

8. Information Technology Architecture • provides a structure to facilitate decision making about technology investment and use

9. Architecture is the metaphor • Architecture is the metaphor - building IT infrastructure • to build a skyscraper: • owner starts with vision of building • works with architect who translates vision into a plan

10. Architecture is the metaphor • builders uses plan to construct building • owner does not have expertise in structural engineering, but must have clear ideas of what and how the building will be used. • Must understand some basics of design in order to communicate vision to the architect.

11. Architecture is the metaphor • to build an IT architecture: • executives start with a vision of “doing business” • vision has certain implications for information requirements • don’t have technical computer expertise • do have clear idea of business strategy • must communicate this to IT architect/planner

12. Architecture is the metaphor • general managers must be able to effectively integrate IT into their vision for the organization’s competitive strategy

13. Components of an IT Architecture • 1. Information technology inventory • 2. Functional use of the IT • 3. Strategic plan for the IT

14. 1. Information technology inventory • answers the question “what do we have?” • basic building blocks of an IT architecture • hardware • software • data • communications links

15. 1.Information technology inventory • this level is the “hard” technology from which most general managers are far removed • general manager should have a basic familiarity with computer systems to bridge the gap between his/her world and that of the IT architect; • IT architect must have a good understanding of the business and the organization

16. 2. Functional use of the IT • answers the question “how do we use it?” • baseline blueprint - IT components and functions already in place • planned blueprint - prescription for future IT investments and designs • general manager and IT architect communicate on this conceptual level • 3 functional categories: applications, data and communications

17. 3. Strategic plan for the IT • past - general managers were unfamiliar with technology and delegated IT architecture decisions to “gurus” • however, these experts in technology often had little knowledge of business strategies • now - can’t afford this approach; technology too expensive and too important • business strategy must drive IT architecture strategy

18. Developing an IT Architecture • designing and building an architecture is an ongoing business process • goal - to reach consensus between the IS organization and the business leaders - not easy to do

19. Developing an IT ArchitectureSteps: • 1. articulate business strategy and implications for IT architecture • start from the top with the overall business strategy and its functional IT requirements • 2. baseline the company architecture • baseline blueprint - assess existing IT • bottom-up approach

20. Developing an IT ArchitectureSteps: • 3. determine key architecture questions • outline set of questions to be answered, such as: • what technologies do we have? • are these the right technologies? • how does the current architecture support our business? • are we getting a strategic advantage from our architecture?

21. Developing an IT ArchitectureSteps: • then look into the future to the planned blueprint: • in what technologies should we invest? • how should it be structured? • how will it give us a competitive advantage? • should we outsource any functions? • etc.

22. Developing an IT ArchitectureSteps: • 4. design a planned architecture blueprint • decide what the architecture should be

23. Developing an IT ArchitectureSteps: • 5. initiate the architecture plan • two approaches - revolutionary vs. evolutionary • revolution - radical replacement of old technology • evolution - new technology layered on top of existing infrastructure; old systems gradually replaced over time

24. Understand?Questions?