Further with your Chief Information Technology request of 18 May 2011, I hereby attach our report analyzing Cookson Electronics' Information Technology for the adaption of Cloud Computing you are assessing. We found that your organization's IT environment has been outdated, it can not cope with your business in this economic trend and decrease productivity since your IT team cannot play a more strategic role in advancing your business development, hence we have focused on our analysis to the IT solutions of Cloud Computing for your organization. The report provides a detailed of the following aspects were analysed:
The issues and challenges of IT environment of Cookson Electronics
Introduction of Cloud Computing and its business benefits and costs
Recommendations of Cloud Computing Adaption for Cookson Electronics
We have investigated the solutions of Cloud Computing can be overcome the issues and challenges that your organization faces managing of IT environment. A short intro of Cloud Computing is a model of computing where your organization obtains computing power and software applications over the Internet instead of owned hardware and software from purchasing of IT stores. Your organization do not need to make large investment in your own hardware and software. Further details of Cloud Computing for Cookson Electronics have been outlined in our report. We recommend that the Cloud Computing is the best solution for your organization's IT environment, with consideration given to our suggestions in this report.
We have proposed our solutions in which you might considerate to adapt Cloud Computing for your organization's IT environment. Our analysts believe that Cloud Computing represents a big change in the way computing will be performed by firms as business computing shifts out of purchasing their own hardware and software into our service of "The Cloud". It offers substantial economic advantages to improve the effectiveness of your organization's IT environment, driving the growth of your IT and your business with unsurpassed reliability and flexibility as well as enhancing your business operational and workforce efficiency.
Thank you for affording us the opportunity to work with you on this project, I will be glad to discuss any questions you may have at our next meeting.
Yours sincerely
Mr Ko
Barry Ko ---- Information Technologic Manager - Applications
EXECUTIVE SUMMARY
The report provides an analysis and evaluation of the outdated Information Technology environment of Cookson Electronics in order to provide the best IT solutions of Cloud Computing to overcome the issues and challenges for managing IT environment as well as guide the successful way with Cloud Computing and its benefits for Cookson Electronics to compete advantage better than competitors.
Methods of analysis the issues and challenges of the current Enterprise System to Cookson Electronics include the Micro-view of Networking/ Telecommunications (MPLS global network: Cookson uses MPLS to link their front end terminals of different regions to a central server in U.S.), Computer Hardware Platforms (Servers: P.C. server: Cookson owns many IBM, Dell PC servers throughout the world for file servers, printer servers, and special purpose servers and Enterprise server: Cookson owns many IBM iSeries servers as her enterprise system server), Operating Systems Platforms (Servers: P.C. server: Cookson uses Microsoft Windows 2003 server as their corporate standard of P.C. Server and Enterprise system server: All of the IBM iSeries servers of Cookson are running OS/400, IBM proprietary OS for iSeries), Data Management and Storage (IBM DB2: It is a bundle database from iSeries server. The base of code is EBCDIC), and Enterprise Software Applications (Enterprise system, Oracle JD Edwards: User license based enterprise software serving). All analysis of the issues can be found in Part 2 of Infaormation Technologic (IT) Environment of Cookson Electronics.
The results of Cookson Electronics analysis shows that the IT environment is old infrastructure, proprietary software and low quality information which will be affected many different levels of issues, challenges and risks including and not limiting of high expertise cost, maintenance cost, wrong data input for Cookson Electronics, e.g location statutory, auditing, business reputation, customer handling, etc. In particular, the most major Enterprise Software Applications (Enterprise system, Oracle JD Edwards) of Cookson Electronic, there have been risen many issues, include input accuracy, data consistence integrity, lagging data, side software causing consistence problem and this old system that could not cope with contemporary business.
The report finds the current IT environment of Cookson Electronics is outdated, there are many issues, challenges and risks affected Cookson Electronics business development. The major areas of the issues of Enterprise Software Applications (Enterprise system, Oracle JD Edwards) to Cookson Electronics, it is recommend to upgrade the existing system and technology of "Cloud Computing" to the first step model of Platform as a Service (PaaS) for Cookson Electronics, the benefits include improve corporate reputation, reduction of cost and risk as well as increase data accuracy and consistency. More details of Cloud Computing, its current trends and business benefits for Cookson Electronics can be found in Part 3 of Cloud Computing and its Business Benefits and Costs and Part 4 of Recommendation of Cloud Computing Adoption.
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TABLE OF CONTENTS Page
Executive Summary i
Introduction 1
1.1 Background of Cookson Electronics . 1
1.2 Purpose of Report 1
1.3 Scope of Report 1
2. Information Technologic (IT) Environment of Cookson Electronics 2
2.1 Cookson Electronics' IT Infrastructure 3
2.2 Issues & Challenges of Managing IT Infrastructure of Cookson Electronics 4
3. Cloud Computing and its Business Benefits and Costs 6
3.1 Introduction of Cloud Computing and its Trends 6
3.2 Business Benefits and Costs of Clouding Computing for Cookson Electronics 7
4. Recommendation of Cloud Computing Adoption 9
4.1 Cloud Computing Adoption for Cookson Electronics Business Strategic 9
4.2 Solutions of Cloud Computing for Cookson Business Application
5. Conclusion & Recommendation 11
5.1 Summary of findings 11
5.2 Recommendations 12
List of references 12
Appendices 13
Appendix 1 -Cookson Electronics Organisation Chart Appendix 2 -Journal
List of Tables 14
Table 1 - XXXXXXX 14
List of Figures 15
Figure 1.1 --- XXXXXXX 15
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1. Introduction 302
Background of Cookson Electronics
Cookson Electronics is a leading materials science company that provides high performance materials, chemistry and technology solutions to the electronics and surface finishing industries worldwide. The company delivers superior value by providing truly differentiated products, services and support through its Alpha, Enthone and Cookson Electronics - Semiconductor Products businesses. From printed circuit board fabrication and assembly products, to microelectronics packaging materials and semiconductor fabrication processes, to high performance functional and decorative coatings. In order to solve the outdated IT, manage the issues and challenges of organization IT environment and enhance business development in the market, Cookson Electronics is now looking for the solutions to overcome it.
The present organization chart of Cookson Electronics has been featured in Appendix 1
There have Cookson Electronics Group, Cookson Electronics Assembly Material (Alpha) and Cookson Electronics Assembly Material (Alpha) - IT division.
The homepage URL of Cookson Electronics as below:
http://www.cooksonelectronics.com/
Purpose of Report
The report was prepared to focus on the analysis to the IT environment of Cookson Electronics and its business development in this economic of scale, and to suggest suitable solutions of Cloud Computing for enhancing strategy role of IT, business operational and workforce efficiency to its business. The report also discusses Cloud Computing and its trend in the global market. It was recommended by Mr Barry Ko, the Information Technologic Manager - Applications of Pacific IT Consultants.
1.3 Scope of Report
The report is limited to discuss of the Cloud Computing for Cookson Electronics and is organized in the following aspects:
Information Technologic (IT) Environment of Cookson Electronics
Cloud Computing and its Business Benefits and Costs
Recommendation of Cloud Computing Adoption for Cookson Electronics
The captioned details are available for Cookson Electronics by Mr Barry Ko, the Information Technologic Manager - Applications of Pacific IT Consultants.
2. Information Technologic (IT) Environment of Cookson Electronics 864
2.1 Cookson Electronics' IT Infrastructure
We would concentrate to discuss the enterprise system of Cookson in this part.
Cookson relies on her enterprise system as a tactical tool of business. By using JD Edwards, a benchmark ERP system, Cookson could solve many different levels of issue, e.g. location statutory, auditing, business reputation, customer handling, etc. However, there are still many issues that perplex the company very much.
Cookson Electronics is running their enterprise system under this IT environment:
2.2 Issues & Challenges of Managing IT Infrastructure of Cookson Electronics
An overview of Cookson IT issues:
Aspect
Issue / Risk
Old infrastructure
High maintenance cost and low business reputation
Proprietary software
High expertise and maintenance cost
Low quality information
Wrong data input in every stage and give out low quality information for decision making
Micro-view to Cookson IT issues:
Networking / Telecommunications
a. MPLS global network
Cookson uses MPLS to link their front end terminals of different regions to a central server in U.S.
Issue: Cookson is spending much money to build a MPLS throughout their branches. Money spends on including building and of course maintenance. Even spending much money, the performance is too far away from expectation that the connectivity line would disconnect especially during peak period (e.g. day-end, month-end).
Computer Hardware Platforms
Servers
P.C. server
Cookson owns many IBM, Dell PC servers throughout the world for file servers, printer servers, and special purpose servers.
Issue: Cookson tried to standardise her server hardware globally using IBM, but in vain. The main reason is the technology gap, locale gap from countries (Some countries cannot buy / import high-end model computer) and also the source from vendor of some countries is very limited.
Enterprise server
Cookson owns many IBM iSeries servers as her enterprise system server.
Issue: iSeries server is a very expensive server in the world (around US$ 40K for entry model and US$ 240K for a top-end model). So the maintenance fee is also high (unique technique of service engineer). To handle these servers, Cookson is hiring some expertise globally and the cost is also expensive.
Operating Systems Platforms
a. Servers
i. P.C. Server
Cookson uses Microsoft Windows 2003 server as their corporate standard of P.C. Server.
Issue: Even Cookson has a conceptual standard on hardware, the locale difference globally making headache on maintenance that the technical people should learn many different skill and perhaps language to ensure the performance of server.
Enterprise system server
All of the IBM iSeries servers of Cookson are running OS/400, IBM proprietary OS for iSeries.
Issue: OS/400 is a good and sticky OS in the world but just the supporting people is not many in the world. It is very difficult to hire a staff equipped with OS/400 knowledge. Some core staff of Cookson IT is going to retire in next some years and it would be a ripple effect to the system.
4. Data Management and Storage
IBM DB2
It is a bundle database from iSeries server. The base of code is EBCDIC.
Issue: The interchange between EBCSID (IBM DB2) and ASCII (Microsoft) would be an issue of Cookson especially some data are in different locale (English, Chinese, Korean, Japanese, etc.) This brings much job loading to front tear staff.
5. Enterprise Software Applications
a. Enterprise system
ii. Oracle JD Edwards
User license based enterprise software serving:
Finance (General accounting, Accounts receivable, Accounts payable);
Distribution (Inventory, Procurement and Sales order processing);
Manufacturing (Product data management, Shop floor control, product costing and manufacturing accounting).
Issue: As JDE is the most major system of Cookson and there are many issues:
1. Input accuracy;
JDE relies on user input and there are many user input points. Procurement user would input the cost gather from Metal Market exchange. Base on this cost, Finance user would calculate the cost and Sales user would then calculate the price. Every step here causes some data input with value added and so with error occurs.
2. Data consistence integrity;
Every transaction (e.g. accounts, sales, procurement) would update different files in the system. With system bug, distortion during update (line disconnect during input), files would be updated with data integrity issue (e.g. same information would write into different file wrongly).
3. Lagging data;
Cost of metal market would be updated every day. However Cookson update their cost every month only by user input manually. This makes the cost information has time lag issue. Customer always grabs this "loop hole" to place their order to take advantage from lagging cost problem of system.
4. Side software causing consistence problem;
There is no perfect system perhaps user want it. Cookson development team made many side systems to help day-to-day operation. These side systems would need many data exchange, batch update that "snow balling" the data integrity issue.
5. Old system that could not cope with contemporary business.
Existing JDE is a very sticky system being used for over 10 years without any breaking enhancement. That system is now out dated and cannot competitive with contemporary systems especially e-business. Both internal user (staff) and external stake holders (customers and vendors) are suffering with the aforementioned issues of JDE.
3. Cloud Computing and its Business Benefits and Costs 1056
3.1 Introduction of Cloud Computing and its Trends
This is a good start to simple view of Cloud Computing that is a model of computing where your organization obtains computing power and software applications over the Internet instead of owned hardware and software of purchasing it from IT service stores. Cloud Computing is enabling convenient, ubiquitous, on-demand network access to a shared pool of configurable computing resources (e.g., servers, networks, applications, storage, and services) that can be rapidly provisioned and released with minimal your CIO management effort. This Cloud model promotes availability and is composed of five essential characteristics, four types of deployment models and three service capability models. All of these deployment models and services can be available to your organization from Pacific IT Consultants. The following introduction is providing and describing of Cloud Computing that you can be consider as a sensible way to manage the issues and challenges for your organization's IT environment.
Five Essential characteristics:
On-demand self-service.
Our client can unilaterally provision computing capabilities, such as network storage and server time, as needed automatically without requiring human interaction with each service's provider.
Broad network access.
Capabilities are available over the network and accessed through our standard mechanisms that use by heterogeneous thin or thick client platforms (e.g., laptops mobile phones, and PDAs).
Resource pooling.
Our IT consultant's computing resources are pooled to serve multiple clients using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to client demand. There is a sense of location independence in that the client generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., datacenter, country, or state). Examples of resources include storage, processing, memory, network bandwidth, and virtual machines.
Rapid elasticity.
Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out, and rapidly released to quickly scale in. To the client, the capabilities available for provisioning often appear to be unlimited and can be purchased in any quantity at any time.
Measured Service.
Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for both of our consultant and client of the utilized service.
There are four types of deployment models, which relate to us provide the cloud services.
Your organization may employ one model or a combination of different models in delivery of applications and business services.
Private cloud or Internal cloud
The cloud infrastructure is operated solely for an organization. It may be managed by your organization or our IT consultants and may exist on premise or off premise.
Community cloud.
The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, and compliance considerations). It may be managed by your organization or our IT consultants and may exist on premise or off premise.
Public cloud.
The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services.
Hybrid cloud.
The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load balancing between clouds).
There are three service capability models which generally accepted by industry-wide business.
Cloud Software as a Service (SaaS).
The capability provided to the client is to use our IT consultant's applications running on a cloud infrastructure. The applications are accessible from various client devices through a thin client interface such as a web browser (e.g., web-based email). The client does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings. Examples include Salesforce.com and Gmail.
Cloud Platform as a Service (PaaS).
The capability provided to the client is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider. The client does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly application hosting environment configurations. Typically through a pay-per-use business model. Examples include Salesforce.com, through Force.com, and Microsoft (Azure).
Cloud Infrastructure as a Service (IaaS).
The capability provided to the client is to provision processing, storage, networks, and other fundamental computing resources where the client is able to deploy and run arbitrary software, which can include operating systems and applications. The client does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls). Examples include, Rackspace and Amazon S3.
3.2 Business Benefits and Costs of Clouding Computing for Cookson Electronics
We believe and expect more organization leading at the Cloud since Cloud services may offer the following business benefits for your organization:-
Cost Saving.
Cloud computing are reduced operational expenses. You pay only for what your organization use; costs are directly proportional to your requirements. Besides, the cost of setting up the system is less.
The technology is easily installation.
Business does not need to get additional hardware or software of Cloud Computing. Furthermore, the implementation is done remotely.
This is a big time-saver of Cloud computing.
Since Cloud Computing becomes functional faster than other systems, businesses save time at the time of set-up, it also ensures fast recovery. Therefore, businesses do not lose unnecessary time anywhere.
Cloud Computing is highly automation.
Businesses do not need to set up a team to handle system updates and back-ups for Cloud Computing. Automation is one of the biggest attractions of this technology.
This is frees up internal resources of Cloud Computing.
You can release important internal resources for other high-priority work as help by automation of Cloud Computing.
Cloud computing helps businesses become mobile.
Your employees can access work-related information from anywhere.
Pacific IT Consultants can offer you
Recommendation of Cloud Computing Adoption 459
4.1 Cloud Computing Adoption for Cookson Electronics Business Strategic
After learning the issues of Cookson's existing system and the technology of contemporary "cloud computing", we would like to guide Cookson to another level of successful with "cloud computing" and benefit with competitive advantage better than competitors (the competitors of Cookson are also suffering similar IT issues especially the cost lagging).
4.2 Solutions of Cloud Computing for Cookson Business Application
We recommend Cookson to change their existing environment to Platform as a Service (PaaS) model with these benefits:
Improve corporate reputation;
Cloud computing is the trend of contemporary IT industry. Joining cloud computing would give a very good impression to stakeholders (e.g. customer, vendor and business partners) that Cookson is running in a top technology of IT.
This is the existing overview of Cookson IT:
It is so "close" and is not connecting to outside environment.
This is the proposed overview of Cloud environment:
New cloud computing not just improve the performance, but also bring up business reputation and let the whole enterprise "open" to the world.
Reduction of cost and risk;
In study in Part 2, we learn that Cookson IT systems are relatively out-of-date and cannot cope with business development requirements. Undeniable, this outdated system bears a very high potential risk to Cookson that it is sticky, hard to maintain, unstable, and vulnerable. It cannot provide high quality information even with large amount of investment.
By joining PaaS, the whole platform including hardware (server), infrastructure (networking on internet), and platform (the OS system) are owned by solution provider. Cookson does not need to pay on this kind of investment cost and enjoying not only existing service but also upgrading service (solution provider to take care of infrastructure, hardware and platform upgrade in timely basis).
Not only investment cost is reduced but also maintenance cost not limited to hardware but also expertise cost. This PaaS would take the advantage of out-sourcing your IT platform to a solution provider.
Existing system
Annum spending
Cloud Computing
Annum spending
Infrastructure maintenance
USD 150,000
Infrastructure on demand
Platform maintenance
USD 150,000
Platform on demand
Staff (Expert) to handle platform
USD 120,000
Expert on demand (e.g. helpdesk)
Increase data accuracy and consistency.
Incorrect data is the mortal wound of existing system caused by wrong data input. By introducing of web services, EDI (Electronic Data Interchange), some data would not need to be input again and again in different stages during order processing especially the cost. Making use of web service in internet, cost pushes from LME, London Metal Exchange, directly and eliminate input error.
Cloud computing could also link the Supply Chain Management system (SCM), Enterprise Resources Planning system (ERP) and Customer Relationship Management system (CRM) together through extranet and web services. This would dramatically speed up the whole process from getting supplier information (cost) to selling out goods (Sales order). Automation and low human involvement would also minimize the chance of input error.
By having high quality information, implies high quality decision would be made and benefit to company vision.
5. Conclusion & Recommendation 104
5.1 Summary of findings
Cookson is running her business using a big and old IT system. It cannot help and support business development. It cannot provide accurate information for executive to make strategy decision. It is hard and costly to maintain.
Challenge and issue of Cookson existing IT
Old and big machine, technology;
Large maintenance fee including hardware, software and expertise cost;
Incorrect information being caused by wrong data input, lagging information, data integrity problem in systems.
Nowadays, and with quick development of internet, "Cloud Computing" would be the trend of IT market. It represents high, good and stable technology. It represents the door to worldwide business with cheap cost.
Benefit of the "Cloud"
Contemporary;
Reduce investment and maintenance by outsourcing these sticky component to service provider;
Improve data consistency (data is push by web service, user does not need to input).
Recommendations
With understanding Cookson IT system and contemporary "Cloud Computing", we would like to recommend Cookson to change their IT system and enjoying the benefit giving by "the Cloud".
