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Chapter 5 IT Infrastructure and Emerging Technologies 195

Q Identify the need to re-engineer Business
the business process of Challenges
construction
Q Voluminous paper documents
Q Inefficient processing
Q Lead sixteen government
authorities to cooperate Management Q No central repository
Q Ineffective collaboration
Q Create a single authority
to build the CORENET Organization Information Business
to integrate processes System Solutions

Q Enable electronic
Q Build a document document submission
management system Q Provide online query
Q Internet-based government Technology
Q Create a single network and tracking
to business infrastructure Q Combine application and
to coordinate the flow of
plans and approvals for fee accounting
construction projects Q Eliminate printing of plans

5.1 IT INFRASTRUCTURE

I n Chapter 1, we defined information technology (IT) infrastructure as the
shared technology resources that provide the platform for the firm’s
specific information system applications. An IT infrastructure includes
investment in hardware, software, and services—such as consulting,
education, and training—that are shared across the entire firm or across entire
business units in the firm. A firm’s IT infrastructure provides the foundation for
serving customers, working with vendors, and managing internal firm business
processes (see Figure 5.1).
Supplying firms worldwide with IT infrastructure (hardware and software)
in 2012 is estimated to be a $3.6 trillion industry when telecommunications,
networking equipment, and telecommunications services (Internet, telephone,
and data transmission) are included. This does not include IT and related business
process consulting services, which add another $400 billion. Investments in
infrastructure account for between 25 and 50 percent of information technology
expenditures in large firms, led by financial services firms where IT investment
is well over half of all capital investment.

DEFINING IT INFRASTRUCTURE

An IT infrastructure consists of a set of physical devices and software applica-
tions that are required to operate the entire enterprise. But an IT infrastructure
is also a set of firmwide services budgeted by management and comprising
both human and technical capabilities. These services include the following:
• Computing platforms used to provide computing services that connect
employees, customers, and suppliers into a coherent digital environment,
including large mainframes, midrange computers, desktop and laptop
computers, and mobile handheld and remote cloud computing services.
• Telecommunications services that provide data, voice, and video connectivity
to employees, customers, and suppliers

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