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SASI

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One of the most important business decisions is whether to control applications ... but sacrifices flexibility; it is hard to tinker with centrally run applications ... – PowerPoint PPT presentation

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Title: SASI


1
SASI
  • Lecture 9
  • Spring 2004

2
Local versus Central Control
  • One of the most important business decisions is
    whether to control applications locally or
    centrally
  • Centralizing gives you economies but sacrifices
    flexibility it is hard to tinker with centrally
    run applications
  • Local control gives you flexibility, but
    sacrifices economies it is hard to share
    decentralized applications

3
Local versus Central Control
4
Buy versus Make
  • Buy vs. Make is the question of whether to
    develop solutions in-house or pay to have someone
    else develop them this is the outsourcing
    dilemma, a form of central vs. local control
  • Outsourcing gives you economies but sacrifices
    flexibility it is hard to tinker with outsourced
    processes
  • Making your own processes gives you flexibility,
    but sacrifices economies it is hard to share
    locally held processes

5
Buy versus Make
6
Centralizing
  • Outsourcing buying is form of centralizing
  • Therefore there are three levels to centralizing
  • Keep things local (dont centralize)
  • Centralize things, but keep them in-house
    (moderate centralization)
  • Outsource (serious centralization)
  • When you centralize you get economies of scale.
  • Central control can do what it does repeatedly
    for several clients at once
  • Central control can do it consistently, quicker,
    as well as cheaper

7
Why Centralize?
  • SASI
  • Security
  • It is easier to secure data, applications, the
    physical hardware, and the telecommunication
    connections from one place
  • Availability
  • It is easier to keep data and applications online
    if these are in one central place
  • Scalability
  • At a central IT shop one can add databases and
    servers as well as integration packages to enable
    ramping up
  • Integration
  • It is easier to make systems interoperate if the
    systems are available to and made to conform to
    the standards of central control.

8
Why Decentralize?
  • Quality, innovation, and customization
  • Open source development is a form of mass
    decentralization because more people are working
    on the application, the result is a far better
    product
  • The problem with decentralization is sharing the
    solutions

9
Current Trend
  • The current trend is to outsource and to
    centralize everything because of SASI benefits
  • But these SASI benefits come at a cost, namely
    the lose of
  • Quality
  • Innovation
  • Customization
  • Control

10
Management In the Networking Era
  • The best IT Manager is one who knows
  • What and when to outsource development
  • What and when to develop centrally (at an
    in-house IT shop)
  • When to develop systems locally (at the local IT
    shops)
  • The best business Manager is one who knows
  • What and when to outsource business processes
  • What and when to develop business processes
    centrally (at corporate)
  • When to develop business processes locally (at
    the local business units)
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