Information Systems and Integration

Information Systems Evolution

• Businesses require complex information systems to manage their operations.
• Information systems provide support for various business functions including accounting, finance, HR, marketing, and operations.
• Information systems are categorized by their management levels: strategic, mid-management, and operational.

Information Silos and Systems Integration

• Over time, different information systems can create independent silos, leading to bottlenecks and inefficiencies.
• Organizations need to be agile and flexible, requiring integrated data, applications, and resources across the organization.

Systems Integration

• Logical integration involves developing systems that share data based on authorization and need.
• Physical integration focuses on seamless connectivity between different systems.
• Business process reengineering involves changing employee mindset to adapt to new ways of working.

Steps in Integrating Systems

• Resource Categorization: IT support for an integrated environment is crucial to avoid maintenance and support issues.
• Compliance & Standards: Implementing a single sign-on policy allows employees access to an integrated system from anywhere, anytime.
• Legacy Systems Support: Develop a policy for managing older legacy applications.
• Middleware Tools: Tools necessary for short-term integration, especially when existing applications must be utilized.
• Authentication & Authorization Policies: Single sign-on policies govern access to applications and data.
• Centralized IT Services & Support: A centralized IT help desk supports all applications and platforms.
• Back-up, Recovery & Security: Essential to secure data against system failure or disasters.

Enterprise Systems Architecture - Why Study?

• Helps management and implementation teams understand the features and components of enterprise systems.
• Creates a visual representation of complex system interfaces (ERP applications, databases, operating systems, legacy applications, and networking).
• Enables better IT planning by clarifying requirements for infrastructure, training, change management, and business process reengineering.

Components of an Enterprise Systems Architecture

• Functional: Defines ERP modules that support various business functions
• Examples: accounting, human resources, procurement, fulfillment
• System: Defines the ERP architecture through the physical components of hardware, software, and networking.

ERP Modules

• Provide support for major business functions like accounting, sales, inventory control, and production.
• Vendors such as SAP, Oracle, and Microsoft offer modules for different functional areas.
• ERP software embeds best practices, implementing organizational policies and procedures through business rules.

Benefits of ERP Modules

• Scalability: Easy to add, change, and remove applications.
• Reliability: Multiple levels of redundancy.
• Flexibility: Easy to partition.
• Maintainability: Lower support and maintenance costs.
• Reusability: Easy to implement reusable components.
• Security: More controlled systems for higher security.

Limitations of ERP Modules

• Can be expensive and complex.

Tiers of ERP Architecture

• Web Tier: Web-based portal for user access to information through a web browser.
• Application Tier: Web browser and reporting tools, where business processes and users interact. It shields users from the inner workings of the ERP system.
• Data Tier: Focus on organizational data structure and relationships with internal and external systems.

Web Services Architectures

• Web-based architecture (often considered a fourth tier) splits the Web Tier into Web Services and Web Browser tiers.
• Focuses on the Internet for internet-based access and integration.
• Technologies include Web Server, ERP Portal, Back-end Server Integration, Browse Plug-ins or Applets.

Benefits of Web-Based Architectures

• Many users can access ERP applications over the web.
• Easy integration of ERP applications with existing systems.
• Server-centric, no complex or expensive client software installation.
• Secure end-user access to ERP applications.
• Client-centric architectures offer faster response times.
• Allows for better system-to-system integration.

Drawbacks of Web-Based Architectures

• Client-centric architectures lack security.
• Server-centric architecture is slower.

Cloud Computing Benefits

• Dynamic scalability on demand.
• No maintenance fees for software or hardware.
• Promotes green computing environment with servers running on clean energy.
• Guaranteed reliability.

Drawbacks of Cloud Computing

• Data security concerns.
• Vulnerabilities.
• Potential conflicts of interest.
• Not suitable for highly competitive industries with sensitive intellectual property.

Implications of ERP Architecture for Management

• Enterprise architecture is crucial for long-term organizational functioning.
• ERP architecture decisions are complex and impact people, organizational policies, and business processes.
• Architecture needs to be flexible to support various hardware and software platforms.
• Management needs to filter out hyped technologies that do not provide value.

Summary of Enterprise Systems Architecture

• Answers questions about: system appearance, function, development, required infrastructure, and potential application scope.
• Includes ERP modules and ERP architecture.
• Vendors provide modules: from basic functions (accounting, finance, HR, marketing) to advanced functions (self-service, compliance management, business intelligence).
• Traditionally organized into three tiers for flexibility and scalability: Data, Application, and Presentation.
• Various layered architectures exist: Two-tier (simplest), Three-tier (separates application from presentation layer), Web-based (facilitates integration with Internet technologies), Service-oriented (separates service provider from consumer).
• Service-oriented architecture has a higher degree of separation similar to object-oriented system architecture.