Bisnis Digital & Inteligensi

Bisnis
Week 2

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Course outline
• Information Systems
• IT Infrasturctures, IT Architecture and Enterprise Architecture
• Data Governance
• Cloud Computing

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Information Systems
Concepts & classifications

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Figure 2.2 IPOS Cycle
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Figure 2.3: Components of an Information System 6
Data, Information, Knowledge, & Wisdom
• Raw data describes products, customers, events, activities, and
transactions that are recorded, classified, and stored.
• Information is processed, organized, or put into context data with meaning
and value to the recipient.
• Knowledge applies understanding, experience, accumulated learning, and
expertise to current problem.
• Wisdom applies a moral code and prior experiences to form a judgement.

Data Information Knowledge Wisdom

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Figure 2.4: Examples of Data, Information, Knowledge, and Wisdom
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Figure 2.5 Input-Processing-Output Model
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Figure 2.6 Hierarchy of Information Systems, Input/Output and User Levels
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Transaction Processing Systems (TPS)
• Internal transactions: originate or occur within the organization (payroll,
purchases, etc.)
• External transactions: originate outside the organization (customers,
suppliers, etc.)
• Improve sales, customer satisfaction, and reduce many other types of data
errors with financial impacts

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Batch v. Online Real-Time Processing
• Batch Processing: collects all transactions for a time period, then processes
the data and updates the data store
• OLTP: processes each transaction as it occurs (real-time)
• Batch processing costs less than OLTP, but may be inaccurate from update
delays

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Management Information Systems (MIS)
• General-purpose reporting systems that provide reports to managers for
tracking operations, monitoring, and control.
o Periodic: reports created or run according to a pre-set schedule.
o Exception: generated only when something is outside designated parameters.
o Ad Hoc, or On Demand: unplanned, generated as needed.

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Decision Support Systems (DSS) (1 of 2)
• Interactive, knowledge-based applications that support decision making
• Support unstructured and unstructured decisions with the following
characteristics:
o Easy-to-use interactive interface
o Models or formulas that enable sensitivity analysis
o Data from multiple sources

• Can be used for open-ended What-if analysis and more structured Goal-
seeking

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Executive Information Systems (EIS)
• Strategic-level information systems that help executives and senior
managers analyze the environment in which the organization exists
• Used to identify log-term trends and plan appropriate actions
• Weakly structured data from both internal and external sources
• Designed to be easily operated by executives

Copyright ©2018 John Wiley & Sons, Inc. 15

IT Infrastrutures, IT Architecture,
Enterprise Architecture

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Figure 2.10
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IT Infrastructure
• Inventory of the physical IT devices that an organization owns and operates
• Describes organization’s entire collection of hardware, software, networks,
data centers, facilities and related equipment
• Does not include people or process components of an IS

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IT Architecture
• Guides the process of planning, acquiring, building, modifying, interfacing
and deploying IT resources in a single department within an organization
• Should offer a way to systematically identify technologies that work
together to satisfy the needs of the departments’ users
• Blueprint for how future technology acquisitions and deployment will take
place

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Enterprise architecture (EA)
• Reviews all the information systems across all departments in an
organization to develop a strategy to organize and integrate the
organization’s IT Infrastructures
• Helps meet the current and future goals of the enterprise and maximize the
value of technology to the organization.
• The way IT systems and processes are structured
• Solves two critical challenges: where are we going; how do we get there?

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Enterprise architecture (EA)
• Strategic Focus
o IT systems’ complexity
o Poor business alignment

• Business and IT Benefits of EA

o Cuts IT costs; increases productivity with information, insight, and ideas
o Determines competitiveness, flexibility, and IT economics
o Aligns IT capabilities with business strategy to grow, innovate, and respond to market
demands
o Reduces risk of buying or building systems and enterprise apps

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Measuring EA Success: KPIs
• Key Performance Indicators (KPIs) are measures that demonstrate the
effectiveness of a business process at achieving organizational goals. They
present data in easy-to-comprehend and comparison-ready formats.
• KPIs measure financial, social media, sales and marketing, operations and
supply chain, or environmental data.
• KPI examples are current ratios; accounts payable turnover; net profit
margin; new followers per week; cost per lead; order status.

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EA Components

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Data Governance

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Information Management
• The use of IT tools and methods to collect, process, consolidate, store, and
secure data from sources that are often fragmented and inconsistent
• Why a continuous plan is needed to guide, control, and govern IT growth
• Information management is critical to data security and compliance with
continually evolving regulatory requirements, such as the Sarbanes-Oxley
Act, Basel III, the Computer Fraud and Abuse Act (CFAA), the USA PATRIOT
Act, and the Health Insurance Portability and Accountability Act (HIPAA)

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Reasons for Information Deficiencies
• Information deficiencies are still a problem, caused by:
o Data Silos, trapping information in stand alone data stores not accessible by other
information systems
o Lost or bypassed data, due to flaws in the data collection process
o Poorly designed interfaces
o Nonstandardized data formats, impeding efficient analysis
o Cannot hit moving targets, because data tracking requirements keep changing

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Reasons for Information Deficiencies: Data Silos

Figure 2.14 Data (or information) silos are ISs that do not have the capability to exchange data with other
ISs, making timely coordination and communication across functions or departments difficult.

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Information Management Benefits
• Business benefits of information management
o Improves decision quality
o Improves the accuracy and reliability of management predictions
o Reduces the risk of noncompliance
o Reduces time and cost

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Enterprise Data Governance
• Data governance is the control of enterprise data through formal policies
and procedures to help ensure data can be trusted and are accessible.
• Enterprise-wide Data Governance
o Crosses boundaries and used by people through the enterprise.
o Reduces legal risks associated with unmanaged or inconsistently managed
information.

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Data Governance: Master Data & Management
• Master Data & Management (MDM)
o Synchronizes critical data from disparate systems into one master file
o Creates high-quality trustworthy data:
• Running the business with transactional or operational use
• Improving the business with analytic use
o Requires strong data governance to manage availability, usability, integrity, and
security

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Cloud Computing

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Data Centers and Cloud Computing
• Data Centers and Cloud Computing are
types of IT infrastructures or computing
systems.
• Data Center also refers to a physical
facility.
o Houses large numbers of network servers
used for the storage, processing,
management, distribution, and archiving of
data, systems, Web traffic, services, and
enterprise applications.
Data centers are the infrastructure underlying cloud computing,
virtualization, networking, security, delivery systems, and
software as a service.

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When a Data Center Goes Down, So Does Business
• Business is Reliant Upon data
o Uber (car-hailing service)
• Users flooded social media with complaints when they experienced an hour-long
outage
o WhatsApp (smartphone text-messaging service)
• Competition added 2 million new registered users within 24 hours of WhatsApp
outage (a record)

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Data Virtualization
• Data Virtualization
o Cisco’s single solution integrating computing, storage, networking, virtualization, and
management into a single (unified) platform
o Virtualization gives greater IT flexibility and cutting costs:
• Instant access to data any time in any format
• Respond faster to changing data analytic needs
• Cut complexity and cost

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 Data Virtualization Benefits
Data Virtualization compared to traditional data integration and replication methods:

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The Software–Defined Data Center (SDDC)
• An SDDC facilitates the integration of the various infrastructure silos within
organizations.
o Optimizes the use of resources, balances workloads
o Maximizes operational efficiency by dynamically distributing workloads and
provisioning networks
o SDDC Goals: decrease costs and increase agility, policy compliance and security by
deploying, operating, managing and maintaining applications.

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Figure 2.18 SDDC Infrastructure
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Cloud Computing
• What is “The Cloud”?
o A general term for infrastructure that uses the Internet and private networks to
access, share, and deliver computing resources
o Scalable delivery as a service to end-users over a network
o Should be approached with greater diligence than other IT decisions as a new
technology including Vendor Management and Cloud Service Agreements (CSAs)

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Cloud Computing Types
• Private Cloud: Single-tenant environments with stronger security and
control (retained) for regulated industries and critical data.
• Public Cloud: Multiple-tenant virtualized services utilizing the same pool of
servers across a public network (distributed).

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Cloud Computing CSAs
• Cloud Service Agreements
o A negotiated agreement between a company and service provider that can be a
legally binding contract or an informal contract.
o The goal is not building the best CSA terms, but getting the terms that are most
meaningful to the business needs.

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Cloud Infrastructure
• The Value of the Cloud Infrastructure:
o Dynamic, not static
o Provides a way to make apps and computing power available on demand because
they are provided as a service
o Referred to as Software As A Service, or SaaS. (examples: Google Apps and
Salesforce.com)
o Helps companies become more agile and responsive while significantly reducing IT
costs and complexity

Large organizations are moving to Enterprise Clouds.

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Cloud Services and Virtualization
• Sustaining performance requires new business apps and analytics
capabilities, which comprise the front end,― and the data stores and digital
infrastructure, or back end, to support them.
• The back end is where the data reside.
• Data may have to navigate through a congested IT infrastructure that was
first designed decades ago.
• Cloud Services are services made available to users on demand via the
Internet from a cloud computing provider's servers instead of being
accessed through an organization’s on-premises servers.

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Anything-As-A-Service Models
There are different types of Cloud Service Model
• Software as a Service (SaaS)
o End-user apps, like SalesForce
• Platform as a Service (PaaS)
o Tools and services making coding and deployment faster and more efficient, like Google App Engine
• Infrastructure as a Service (IaaS)
o Hardware and software that power computing resources, like EC2 & S3 (Amazon Web Services)
• Data as a Service (DaaS)
o Data shared among clouds, systems, apps, regardless the data source or storage location

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Data Centers, Cloud Computing, and Virtualization

Figure 2.17 Virtual machines running on a simple computer hardware layer. Virtualization: created by a
software layer (virtualization layer) containing its own operating system and applications as a physical
computer.

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Virtualization Concepts
• A virtual machine is a software-created computer. Technically, a virtual
machine (VM) is created by a software layer, called the virtualization layer.
• That layer has its own Windows or other OS and apps, such as Microsoft
Office, as if it were an actual physical computer.
• A VM behaves exactly like a physical computer and contains its own
virtual―that is, software-based―CPU, RAM (random access memory), hard
drive, and network interface card (NIC).

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Virtualization Benefits
• Characteristics & Benefits
o Memory-intensive
• Huge amounts of RAM due to massive processing requirements
o Energy-efficient
• Up to 95% reduction in energy use per server through less physical hardware
o Scalability and load balancing
• Handles dynamic demand requests like during the Super Bowl or World Series

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 People
6 components
of information
Enterprise
IPO Model system Procedures Architecture

Hardware
Information
System Software

Benefits of
Network EA
DIKW TPS
Hierarchy of
Information Batch
processing
OLTP EA Components
System
Data
Information
DSS MIS

Knowledge
Wisdom EIS Data centers
Public vs. Cloud Vendor
Types Management
Private Factors to be
consider for cloud

Information Information Data silos Cloud vendors

Management deficiencies
Virtualization computing
Lost or CSAs
bypassed data

Data Poorly designed Cloud service

interfaces models
Governance Virtual
Benefits
machines
Nonstandardized
data formats
Energy
Scalability
efficient
Data Enterprise Data
Difficult to hit
Governance Governance moving targets Memory 56
intensive
Sources

Turban E. Collard P, Wood G. (2018). Information Technology for Management: on Demand

Strategies for Performance, Growth and Sustainability 11th Edition. Wiley (TUR)

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