ISTP Presentation - Final

ISTP 531
Individual Presentation on Technologies for Developing Systems

Information Systems Theory and Practice 531
Lecturer in charge:
Dr. Samantha Thelijjagoda
Presented by: S. Sabraz Nawaz PGM-IS-12-0007
Technologies for Developing Systems

Foundations of Systems Development
o o o o o o Structured Development Fourth-Generation Languages Software Prototyping Computer-Aided Software Engineering (CASE) Object-Oriented Development Client-Server Computing
System Integration
o ERP Systems o Middleware
Inter-organizational System Development Internet-Based Systems

o Application Servers o Java o Web Services
Individual Presentation by: S. Sabraz Nawaz
Individual Presentation by S. Sabraz Nawaz
ISTP 531
Agenda
Case Discussion
o System Integration o Inter-organizational System Development o Internet-Based Systems
Question and Discussion
System Integration
One of the major challenges for CIOs
o Complex and expensive: systems from different technologies to be
integrated
o Risky; systems may crash
Can be done in different approaches;

o DBMS: data oriented view to integration; common database e.g., Oracle o ERP: application view of integration, applications can communicate (e.g.,
SAP)
o Middleware: applications communicate via third party software

ISTP 531
ERP Systems
ERP provides the means to integrate business departments and functions across an organization
o Single vendor (e.g. SAP) o Single set of applications o Single database
If properly installed, the ERP systems will return considerable payback Many successes and failures
Colgate Palmolive
Case Example for ERP Systems
ISTP 531
Colgate Palmolive
200 years old consumer product leader Decentralized structure with national or regional control in 200 countries
Colgate Palmolive: Problem

Decentralized structure;
o Independent operations; expensive to coordinate o Slow response to market changes o Constrained company growth
Competitive crisis in the mid-1990s, and complex decentralized IT infrastructure

o Coordination problems o Sales dropped o Deprived firm growth
ISTP 531
Colgate Palmolive: Strategy

Management needed to
to centralize the structure
develop new products reduce product delivery cycle reduce cost of operations
Integrate the supply chain in 80 countries; reduce the

cost by $150million
Integrate the distribution in 200 countries

Colgate Palmolive: Solution

Implemented SAP R/3 system to integrate worldwide operations, across business functions
o S&D, MM, HR, and Finance modules
Took 5 years and $430 million to complete
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ISTP 531
Colgate Palmolive: Outcome
o o o o
Saved $50 million and $100 million in first two years

Savings allocated R&D for new products 60% reduction in product delivery cycle Improved cooperation amongst regional subsidiaries and suppliers Regained number one market position for toothpaste in US after 34 years
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Covered
System Integration Inter-organizational System Development Internet-Based Systems
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ISTP 531
Inter-organizational System (IOS) Development

IOSs that connect organizations; if in two or more countries, then called Global Information System
o
Main business trend is business ecosystems; groupings

of businesses that work closely
This trend affect the way systems are built; Supply chain management
systems (SCM)
Another type of IOS is Platform which provides infrastructure for the operation of a business ecosystem or an industry
Example: American Airlines SABRE reservation system
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A Sample IoS
Source: Information Technology for Management, by Efraim Turban

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ISTP 531
Hong Kong Exchanges and Clearing (HKEx)

Case Example for IOS Development
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HKEx
Asias second and worlds ninth largest stock market Stock markets globalized
o Investors are demanding and need more features; faster, cheaper and secure trading
Automatic order Matching and execution System (AMS) handled security trading
o AMS/1 o AMS/2
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ISTP 531
HKEx: Problem
AMS/1
o First generation system o A closed system; allowed brokers to enter orders but from special terminals from HKExs trading floor
AMS/2
o Second generation system o Allowed orders from dedicated terminals in brokers offices o Didnt connect external networks nor other computers of 500 brokers
Wanted;
o an open architecture to reach market beyond Honk Kong o To interconnect business partners systems
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HKEx-Solution: AMS/3
Open up the system to individual investors Improve the efficiency and competitiveness by integrating the system to enable End to End trading process;
o Investors Brokers Market
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ISTP 531
Development of AMS/3
A daunting project;
o Consumed 40 staff, 150 consultants and 500 brokers o Took 02 years to complete o Five development teams Network, Open Gateway, Multi-workstation system, Order routing system and User acceptance testing
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Development of AMS/3 (Cont.)

Each week project management reported to project steering committee Trading and Settlement Committee consisting of stakeholders
o Reviewed the development o Offered opinions
During the 02 years, HKEx kept on dialoging with interested parties

o Ensured they accept the system o Got ideas to improve the system o Used media to educate investors
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ISTP 531

Testing was done at three level
o Component testing o Partial integration testing between components o Integration testing which tested end-to-process
Overall testing was 40% of the project
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Three layer implementation
o Preparation: applications were moved to production environment o 1st layer: infrastructure was implemented o 2nd layer: access portions were launched; terminals, workstations, etc. o 3rd layer: new trading functions were introduced
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ISTP 531
AMS/3: Outcome
Investors can query or order from mobile phones or Internet;
o their brokers should have registered with AMS3
Brokers can enter orders like earlier and through open gateway;
o Data can flow between AMS/3 and brokers back office systems
Customized services for individual investors More transparent;

o Timely information to members & investors
The largest trading system with 500 exchange participants Now foundation of industry ecosystem
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Covered
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ISTP 531
Internet-Based Systems
Internet users are sophisticated; Internet based systems;
o are to be scalable, reliable o Needed to be interconnected internally and externally with customers and partners
Programming language differences have to be dealt with Three aspects of Internet based systems
o Framework: application servers o Language: Java o Environment: Web Services
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Application Servers
A middleware to link a Web server to application on other company systems
Client DBMS
Web server
Application server
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ISTP 531
Java
Component-based tools with open systems for rapid Internet based systems development Become an standard platform for developing serverside applications
o Java 2 Enterprise Edition (J2EE) o Enterprise Java Beans (EJB)
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Web Services
Self-contained, self-describing business and consumer modular applications, delivered over the Internet, that users can select and combine through almost any device (from personal computers to mobile phones)
1. 2.
Two methods available

Exposing: existing codes wrapped in XML) and give an Internet address Using an exposed code
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ISTP 531
Using a Web Service

Service from Registry
2. Search to find a service 3. Service found 1. Publish the service available
4. Call the Service provider
5. Response
Web Service Consumer
Web Service Provider
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Building a Web Service

Case Example
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ISTP 531
Building a Web Service
Step 01: Expose the code

Currency conversion code of a credit card processor is encapsulated in an XML wrapper
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Building a Web Service (cont)
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ISTP 531
o o
Step 02: Write a service description

Written using WSDL and housed in XML document Request method, data needed, the results to be delivered, cost, etc.
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ISTP 531
Step 03: Publish the service; service description let for

others to find
Done by registering it in a UDDI (Universal Discovery, Description, and Integration) registry; a Web Services yellow pages
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ISTP 531

Step 04: Find a currency conversion Web service
o Other services can find this service. E.g., a Pricing Web Service o o The Pricing web sends a request Asks for a listing of currency conversion Web Services o The reply is sent back
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Step 05: Invoke a Web service
o The Pricing Web Service can now invoke the selected currency conversion Web Service E.g., Convert $1000 into SLR
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ISTP 531
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ISTP 531
Sample Web Service
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Covered
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ISTP 531
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ISTP 531

Individual Presentation on Technologies for Developing Systems

Dr. Samantha Thelijjagoda

Presented by: S. Sabraz Nawaz PGM-IS-12-0007

Technologies for Developing Systems

Inter-organizational System Development Internet-Based Systems

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Question and Discussion

Individual Presentation by: S. Sabraz Nawaz

o Risky; systems may crash

Can be done in different approaches;

o Middleware: applications communicate via third party software

Individual Presentation by S. Sabraz Nawaz

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Individual Presentation by: S. Sabraz Nawaz

Colgate Palmolive: Problem

Competitive crisis in the mid-1990s, and complex decentralized IT infrastructure

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Colgate Palmolive: Strategy

Integrate the supply chain in 80 countries; reduce the

Integrate the distribution in 200 countries

Colgate Palmolive: Solution

Took 5 years and $430 million to complete

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Colgate Palmolive: Outcome

Saved $50 million and $100 million in first two years

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Inter-organizational System (IOS) Development

Main business trend is business ecosystems; groupings

Individual Presentation by: S. Sabraz Nawaz

Source: Information Technology for Management, by Efraim Turban

Individual Presentation by S. Sabraz Nawaz

Hong Kong Exchanges and Clearing (HKEx)

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Individual Presentation by: S. Sabraz Nawaz

Development of AMS/3 (Cont.)

During the 02 years, HKEx kept on dialoging with interested parties

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Development of AMS/3 (Cont.)

Overall testing was 40% of the project

Individual Presentation by: S. Sabraz Nawaz

Development of AMS/3 (Cont.)

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Customized services for individual investors More transparent;

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by: S. Sabraz Nawaz

Individual Presentation by S. Sabraz Nawaz

Individual Presentation by: S. Sabraz Nawaz