Management information system-MIS
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Management information system-MIS

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A management information system (MIS) provides information that organizations require to manage themselves efficiently and effectively.

A management information system (MIS) provides information that organizations require to manage themselves efficiently and effectively.

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  • Lecture Slides by Engr. M.Abdullah
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Management information system-MIS Management information system-MIS Presentation Transcript

  • ManageMent InforMatIon SySteM
  • What IS ManageMent  Management  the process of coordinating work activities so that they are completed efficiently and effectively with and through other people Process - represents ongoing functions or primary activities engaged in by managers Coordinating - distinguishes a managerial position from a non-managerial one
  • What IS ManageMent  Management (cont.)  Efficiency - getting the most output from the least amount of inputs  “doing things right” (not wasting resources)  concerned with means  Examples: cutting inventory levels  Decreasing the amount of time to manufacture products  Effectiveness - completing activities so that organizational goals are attained  “doing the right things”  concerned with ends
  • effIcIency and effectIveneSS In ManageMent Management Strives For: Low resource waste (high efficiency) High goal attainment (high effectiveness) Resource Usage Efficiency (Means) Goal Attainment Effectiveness (Ends) Low Waste High Attainment
  • Key reSourceS of MIS InforMatIon  Data Are raw facts that describe a particular phenomenon e.g Current Temperature, Price of property, Age of a person etc. A message which source wants to communicate to the receiver e.g Text, Voice, Image, movies, Music etc  Information: Data that is organized, meaningful, and useful  data with context  processed data  value-added to data  summarized  organized  analyzed
  • data and InforMatIondata and InforMatIon
  • changIng data Into InforMatIon • data – Raw facts stored in databases – Need additional processing to become useful • InforMatIon – Required by decision maker – Data processed and presented in a meaningful form – Transformation (any process that changes data into information). Program instructions
  • data collected WIthIn an organISatIon Data collected Where from? Used for? Order details, customer details complaints customers Financial data bank Cost of goods, new products suppliers Sales data Sales Dept
  • data collected WIthIn an organISatIon Data collected Where from? Used for? Order details, customer details complaints customers Supplying goods, creating invoices and statements Improved performance Financial data bank Planning strategic decisions Cost of goods, new products suppliers Selling to customers Sales data Sales Dept Monitor sales against forecasts, re-order of stock
  • characterIStIcS of valuable InforMatIon 1. Accuracy. 2. Verifiable. 3. Timeliness. 4. Organized. 5. Meaningful. 6. Cost effective.
  • 1.accuracy • The information a user receives has been processed correctly • Correct information • Free from errors • Inaccurate information can lead to incorrect decisions
  • 2. verIfIable User can confirm and verify the information. Identify source of information
  • Having information when users need it. Right information must be produced to users at right time. 3.tIMely InforMatIon
  • 4. organIzed  Information is arranged to suit the needs and requirements of the users.
  • 5. MeanIngful  Relevant to the user who receives or uses it.  Unnecessary information must be eliminated.
  • 6.coSt-effectIve  The cost to produce the information should be less than the actual cost of the information.
  • What IS a SySteM?  A system is…  A set of interrelated components  With a clearly defined boundary  Working together  To achieve a common set of objectives  By accepting inputs and producing outputs  In an organized transformation process
  • baSIc functIonS of a SySteM  Input:  Capturing and assembling elements that enter the system to be processed  Processing:  Transformation process that converts input into output  Output:  Transferring transformed elements to their ultimate destination
  • It and IS • What is Information Technology? Any form of technology used by people to handle information. • What are Information Systems? “A collection of hardware, software, data, people, and procedures that are designed to generate information that support day-to-day activities of users in an organization”
  •  The branch of Engineering that deals with the use of Computers and Telecommunications to retrieve, store and transmit information  Any computer based tool that people use to work with information & support the information & information processing needs of an organization InforMatIon technology (It)
  • defInItIon of InforMatIon SySteMS “A collection of hardware, software, data, people, and procedures that are designed to generate information that support day-to-day activities of users in an organization”
  • coMponentS of InforMatIon SySteMS • Data • Software • Hardware • People • Procedures
  • InforMatIon SySteM actIvItIeS  Input of data resources  Data entry activities  Processing of data into information  Calculations, comparisons, sorting, and so on  Output of information products  Messages, reports, forms, graphic images  Storage of data resources  Data elements and databases  Control of system performance  Monitoring and evaluating feedback
  • typeS of InforMatIon SySteMS  operatIonS Support SySteMS:  TPS( Sales, Inventory, and accounting systems)  PCS( Monitor and control industrial processes ( Petroleum refining, power generation and steel production systems.  Enterprise collaboration systems, such as e-mail, chat and videoconferencing systems.  ManageMent Support SySteMS:  MIS( Provide information as reports and displays)  DSS(such as products pricing, profitability forecasting, and risk analysis.  EIS( Provides critical information from MIS, DSS such as system for easy access to analysis of business performance, action of competitors, and strategic planning
  • typeS of operatIonS Support SySteMS  Transaction Processing Systems  Record and process business transactions  Examples: sales processing, inventory systems, accounting systems  Process Control Systems  Monitor and control physical processes  Example: using sensors to monitor chemical processes in a petroleum refinery  Enterprise Collaboration Systems  Enhance team and workgroup communication  Examples: email, video conferencing
  • tranSactIon proceSSIng SySteMS  TPS is the important examples of Operations support systems that record and process data resulting from business transactions.  Computerized systems that perform and record the daily routine transactions necessary to conduct the business; they serve the organization’s operational level  Examples  Accounting information systems  TCS, DHL, all have systems that are TPS
  • tWo WayS to proceSS tranSactIonS  Batch Processing:  Accumulate transactions over time and process periodically  Example: a bank processes all checks received in a batch at night  Online Processing:  Process transactions immediately  Example: a bank processes an ATM withdrawal immediately
  • exaMple of tpS 1. An inventory control system keeps a file of records about the stock of goods that a business has on hand (the inventory) which is one aspect of the state of the business. 2. When items are shipped or received, the state of the business is affected, and the inventory control system makes changes about the inventory in the stored records.
  •  4. It also prints a report giving the quantity on hand for each item in inventory, which is a characteristic of the state of the business.  Finally, when inventory is low, the system produces output that causes more inventory to be ordered, which is another type of business transaction. exaMple of tpS
  • typeS of tpS SySteMS
  • tranSactIon proceSSIng SySteM functIonS Input function • Capture input data • Enter input data • Validate input data Processing function: • perform computation • make decision Output function: • produce screen output • print output Storage function: • stored data • Access data • Update data
  •  Transaction processing systems perform input, output, storage, and processing functions.  Input functions include capturing data on a source document, entering the input data into the system, and checking input data for errors, a process called data validation  Output functions include producing screen or paper reports, such as detail reports, summary reports, and exception reports. tranSactIon proceSSIng SySteM
  •  Storage functions include storing data in files and databases, accessing stored data, sorting stored data, and updating stored data.  Processing functions involve the manipulation of data, including computation and decision making tranSactIon proceSSIng SySteM
  • tranSactIon proceSSIng SySteMS
  • ManageMent InforMatIon SySteMS • MIS provides information in the form of reports and displays to managers and many business professionals. Such as sales analysis, production performance. • Provides information to business professionals in a variety of easy-to-use formats. • Examples – Systems that provide managers with reports and online real-time access to company performance and historical records.
  • ManageMent InforMatIon SySteM (MIS)
  • decISIon Support SySteMS  Decision Support Systems are concerned with providing useful information to support the decision process.  A Production Manager may use a DSS to decides how much product to manufacture based on the expected sales associated with a future promotion and the location and availability of the raw materials necessary to manufacture the product. • Examples – May take data from both internal sources (TPS, MIS) but also from external sources (Stock prices or product prices of competitors) – Shipping companies use voyage-estimating systems that take various shipping information into account and give advice on costs, freight rates for various types of cargo and port expenses etc
  • Voyage-estimating Decision Support System  Needs voyage-estimating system to calculate  financial details  Ship/time costs (fuel, labour, capital)  Freight rates for various types of cargo  Port expenses  technical details  Ship cargo capacity  Speed  Port distances  Fuel and water consumption  Cargo loading patterns
  • decISIon Support SySteMS
  • decISIon Support SySteM (dSS)
  • executIve InforMatIon SySteMS • Information Systems at the organizations strategic level designed to address unstructured decision making through advanced graphics and communications. • Examples: – Incorporate data about external events such as tax laws or competitors, but also draw summarized information from internal MIS and DSS. – Filter, compress and track critical data, emphasizing the reduction of time and effort required to obtain information useful to executives.
  • executIve Support SySteM (eSS)
  • What is a human resources information system (HRIS)?  Manages human resources functions  Employee relationship management (ERM) system facilitates communication with employees
  • Human Resource Systems
  • 2-47  A strategic information system is any information system that uses IT to help an organization… StrategIc It
  • 2-48  Cost Leadership  Become low-cost producers  Help suppliers or customers reduce costs  Differentiation Strategy  Differentiate a firm’s products from its competitors’  Focus on a particular segment or niche of market fIve coMpetItIve StrategIeS
  • 2-49  Innovation Strategy  Unique products, services, or markets  Radical changes to business processes  Growth Strategy  Expand company’s capacity to produce  Expand into global markets coMpetItIve StrategIeS
  • 2-50  Alliance Strategy  Establish linkages and alliances with customers, suppliers, competitors, consultants, and other companies coMpetItIve StrategIeS
  • hoW IS a coMputer defIned? Produces and stores results  Electronic device operating under the control of instructions stored in its own memory Processes data into informationinformation Data that is organized, meaningful, and useful Accepts datadata Raw facts, figures, and symbols
  • What IS hardWare  Hardware is the general term that is used to describe physical artifacts of technology.
  • What IS an Input devIce?  Hardware used to enter data and instructions
  • Input devIceS
  • Input devIceS
  • What IS an output devIce?  Hardware that conveys information to one or more people
  • What IS Storage? Storage mediaStorage media Physical material on which data, instructions, and information are stored Storage mediaStorage media Physical material on which data, instructions, and information are stored Storage deviceStorage device Records and retrieves items to and from a storage medium Storage deviceStorage device Records and retrieves items to and from a storage medium  Holds data, instructions, and information for future use
  • coMputer for IndIvIdual uSerS  Desktop computers  The most common type of computer  Sits on the desk or floor  Performs a variety of tasks  Workstations  Specialized computers  Optimized for science or graphics  More powerful than a desktop
  • Mainframe Very powerful, expensive computer that supports thousands of connected users [Also called an Enterprise Server] Supercomputer The fastest, most powerful, most expensive computer. Used for applications requiring complex mathematical calculations Server Controls access to network resources and provides centralized storage
  • What is a notebook computer?  Portable, small enough to fit on your lap  Also called a laptop computer  Generally more expensive than desktop computers with equal capabilities
  • What is a Tablet PC?  Especially useful for taking notes  Resembles a letter-sized slate  Allows you to write on the screen using a digital pen
  • Consists of a series of instructions that tells the computer what to do and how to do it Consists of a series of instructions that tells the computer what to do and how to do it What IS SoftWare? Also called a program Also called a program
  • coMputer SoftWare  Definition:  Key to productive use of computers.  A computer program that tells the computer how to perform particular tasks.  Information that the computer uses to get the job done.  Types of Software  Software can be categorized into two types:  System Software  Application Software.
  • What IS SySteM SoftWare? Operating System (OS)Operating System (OS) is a set of programs that coordinates all activities among computer hardware devices Operating System (OS)Operating System (OS) is a set of programs that coordinates all activities among computer hardware devices Utility ProgramsUtility Programs allow the user to perform maintenance-type tasks usually related to managing a computer, its devices or its programs Utility ProgramsUtility Programs allow the user to perform maintenance-type tasks usually related to managing a computer, its devices or its programs  Programs that control or maintain the operations of the computer and its devices
  • What IS applIcatIon SoftWare? Presentation Graphics Spreadsheet Database Word Processing  Programs designed to make users more productive  Create/Produce useful data
  • Word proceSSIng  Word Processing software is used to create and print documents. A key advantage of word processing software is that users easily can make changes in documents.
  • electronIc SpreadSheetS  Electronic spreadsheet software allows the user to add, subtract, and perform user-defined calculations on rows and columns of numbers. These numbers can be changed and the spreadsheet quickly recalculates the new results.
  • databaSe SoftWaredatabaSe SoftWare  Allows the user to enter, retrieve, and update data in an organized and efficient manner, with flexible inquiry and reporting capabilities.
  • coMputer SoftWare What is a programmer?  Someone who develops application or system software  Programmer writes the instructions to direct the computer to process data into information
  • What IS a graphIcal uSer Interface (guI)?  Allows you to interact with the software using graphics and visual images such as icons  Controls how you enter data and instructions and how the screen displays information
  • 3-71 bIt and byte  Bit  Short for binary digit  Smallest element of data  Either zero or one  Byte  Group of eight bits, which operate as a single unit  Represents one character or number
  • 3-72 repreSentIng characterS In byteS
  • 3-73 uSIng bInary code to calculate
  • 3-74 Storage capacIty MeaSureMent  Kilobyte (KB): one thousand bytes  Megabyte (MB): one million bytes  Gigabyte (GB): one billions bytes  Terabyte (TB): one trillion bytes  Petabyte (PB): one quadrillion bytes
  • coMMon nuMber SySteMS System Base Symbols Used by humans? Used in computers? Decimal 10 0, 1, … 9 Yes No Binary 2 0, 1 No Yes Octal 8 0, 1, … 7 No No Hexa- decimal 16 0, 1, … 9, A, B, … F No No 75
  • Quantities/Counting (1 of 3) Decimal Binary Octal Hexa- decimal 0 0 0 0 1 1 1 1 2 10 2 2 3 11 3 3 4 100 4 4 5 101 5 5 6 110 6 6 7 111 7 7 76
  • Quantities/Counting (2 of 3) Decimal Binary Octal Hexa- decimal 8 1000 10 8 9 1001 11 9 10 1010 12 A 11 1011 13 B 12 1100 14 C 13 1101 15 D 14 1110 16 E 15 1111 17 F 77
  • Quantities/Counting (3 of 3) Decimal Binary Octal Hexa- decimal 16 10000 20 10 17 10001 21 11 18 10010 22 12 19 10011 23 13 20 10100 24 14 21 10101 25 15 22 10110 26 16 23 10111 27 17 Etc. 78
  • Quick Example 2510 = 110012 = 318 = 1916 Base 79
  • Decimal to Decimal (just for fun) Hexadecimal Decimal Octal Binary 80
  • 12510 => 5 x 100 = 5 2 x 101 = 20 1 x 102 = 100 125 Base Weight 81 Decimal to Decimal (just for fun) Weight “0”
  • Binary to Decimal Hexadecimal Decimal Octal Binary 82
  • Binary to Decimal  Technique  Multiply each bit by 2 n , where n is the “weight” of the bit  The weight is the position of the bit, starting from 0 on the right  Add the results 83
  • Examp le 1010112 => 1 x 20 = 1 1 x 21 = 2 0 x 22 = 0 1 x 23 = 8 0 x 24 = 0 1 x 25 = 32 4310 Bit “0” 84
  • Octal to Decimal Hexadecimal Decimal Octal Binary 85
  • Octal to Decimal  Technique  Multiply each bit by 8 n , where n is the “weight” of the bit  The weight is the position of the bit, starting from 0 on the right  Add the results 86
  • Examp le 7248 => 4 x 80 = 4 2 x 81 = 16 7 x 82 = 448 46810 87
  • Hexadecimal to Decimal Hexadecimal Decimal Octal Binary 88
  • Hexadecimal to Decimal  Technique  Multiply each bit by 16 n , where n is the “weight” of the bit  The weight is the position of the bit, starting from 0 on the right  Add the results 89
  • Examp le ABC16 => C x 160 = 12 x 1 = 12 B x 161 = 11 x 16 = 176 A x 162 = 10 x 256 = 2560 274810 90
  • Decimal to Binary Hexadecimal Decimal Octal Binary 91
  • Decimal to Binary  Technique  Divide by two, keep track of the remainder  First remainder is bit 0 (LSB, least-significant bit)  Second remainder is bit 1  Etc. 92
  • Examp le 12510 = ?2 2 125 62 12 31 02 15 12 7 12 3 12 1 12 0 1 12510 = 11111012 93
  • Decimal to Octal Hexadecimal Decimal Octal Binary 94
  • Decimal to Octal  Technique  Divide by 8  Keep track of the remainder 95
  • Examp le 123410 = ?8 8 1234 154 28 19 28 2 38 0 2 123410 = 23228 96
  • Decimal to Hexadecimal Hexadecimal Decimal Octal Binary 97
  • Decimal to Hexadecimal  Technique  Divide by 16  Keep track of the remainder 98
  • Examp le 123410 = ?16 123410 = 4D216 16 1234 77 216 4 13 = D16 0 4 99
  • Octal to Binary Hexadecimal Decimal Octal Binary 100
  • Octal to Binary  Technique  Convert each octal digit to a 3-bit equivalent binary representation 101
  • Examp le 7058 = ?2 7 0 5 111 000 101 7058 = 1110001012 102
  • Hexadecimal to Binary Hexadecimal Decimal Octal Binary 103
  • Hexadecimal to Binary  Technique  Convert each hexadecimal digit to a 4-bit equivalent binary representation 104
  • Examp le 10AF16 = ?2 1 0 A F 0001 0000 1010 1111 10AF16 = 00010000101011112 105
  • Binary to Octal Hexadecimal Decimal Octal Binary 106
  • Binary to Octal  Technique  Group bits in threes, starting on right  Convert to octal digits 107
  • Examp le 10110101112 = ?8 1 011 010 111 1 3 2 7 10110101112 = 13278 108
  • Binary to Hexadecimal Hexadecimal Decimal Octal Binary 109
  • Binary to Hexadecimal  Technique  Group bits in fours, starting on right  Convert to hexadecimal digits 110
  • Examp le 10101110112 = ?16 10 1011 1011 2 B B 10101110112 = 2BB16 111
  • Octal to Hexadecimal Hexadecimal Decimal Octal Binary 112
  • Octal to Hexadecimal  Technique  Use binary as an intermediary 113
  • Examp le 10768 = ?16 1 0 7 6 001 000 111 110 2 3 E 10768 = 23E16 114
  • Hexadecimal to Octal Hexadecimal Decimal Octal Binary 115
  • Hexadecimal to Octal  Technique  Use binary as an intermediary 116
  • Examp le 1F0C16 = ?8 1 F 0 C 0001 1111 0000 1100 1 7 4 1 4 1F0C16 = 174148 117
  • Exercise – Convert ... Don’t use a calculator! Decimal Binary Octal Hexa- decimal 33 1110101 703 1AF 118
  • Exercise – Convert … Decimal Binary Octal Hexa- decimal 33 100001 41 21 117 1110101 165 75 451 111000011 703 1C3 431 110101111 657 1AF Answer 119
  • WEB BROWSERS
  • WORD PROCESSING & DESKTOP PUBLISHING
  • ELECTRONIC SPREADSHEETS & PRESENTATION GRAPHICS Electronic Spreadsheets  Worksheet of rows and columns  Used for calculations and charts  E.g., Lotus 1-2-3, Microsoft Excel, Corel QuattroPro, BO XI Presentation Graphics  Convert numeric data into graphics displays  Prepare multimedia presentations including graphics, photos, animation, and video clips  E.g., Microsoft PowerPoint, Lotus Freelance, Corel Presentations
  • ELECTRONIC SPREADSHEETS & PRESENTATION GRAPHICS
  • PERSONAL INFORMATION MANAGER & GROUPWARE Personal Information Manager (PIM)  Software for end user productivity and collaboration  Store information about clients, schedules, manage appointments, manage tasks  E.g., Lotus Organizer, Microsoft Outlook Groupware  Software that helps workgroups collaborate on group assignments  E-mail, discussion groups, databases, videoconferencing  E.g., Lotus Notes, Novell GroupWise, Microsoft Exchange
  • PERSONAL INFORMATION MANAGER & GROUPWARE
  • SOFTWARE ALTERNATIVES  Outsourcing development and maintenance of software  Application service providers (ASPs)  Companies that own, operate and maintain application software and computer system resources  Use the application for a fee over the Internet  Pay-as-you-go
  • SOFTWARE ALTERNATIVES
  • SOFTWARE LICENSING  All software (COTS, ASP) is licensed  You don’t buy software: you buy a license to use the software under the terms of the licensing agreement  Licensed to protect the vendor’s property rights
  • SYSTEM SOFWARE Software that manages and supports a computer system System management programs  Programs that manage hardware, software, network, and data resources  E.g., operating systems, network management programs, database management systems, systems utilities Systems development programs  Programs that help users develop information system programs
  • SYSTEM MANAGEMENT PROGRAMS
  • OPERATING SYSTEM  Integrated system of programs that  Manages the operations of the CPU  Controls the input/output and storage resources and activities of the computer system  Provides support services as computer executes applications programs
  • OS BASIC FUNCTIONS
  • USER INTERFACE  Part of the operating system that allows you to communicate with it  Three main types:  Command-driven  Menu-driven  Graphical user interfaces (GUI)
  • USER INTERFACE
  • RESOURCE MANAGEMENT  Part of operating system that manages the hardware and networking resources of a computer system  Includes CPU, memory, secondary storage device, telecommunications, and input/output peripherals
  • FILE MANAAGEMENT  Part of the operating system that controls the creation, deletion, and access of files of data and programs
  • FILE MANAGEMENT
  • TASK MANAGEMENT  Part of the operating system that manages the accomplishment of computing tasks of the end users  Multitasking  Task management approach that allows for several tasks to be performed in a seemingly simultaneous fashion  Also called multiprogramming or time-sharing
  • TASK MANAGEMENT
  • POPULAR OS  Windows  GUI, multitasking, networking, multimedia  Microsoft’s operating system  Different versions manage servers  Unix  Multitasking, multiuser, network-managing  Portable – can run on mainframes, midrange and PCs  Linux  Low-cost, powerful reliable Unix-like operating system  Open-source  MAC OS X  Apple operating system for the iMac  GUI, multitasking, multimedia
  • OTHER SYSTEM SOFTWARE Utilities  Miscellaneous housekeeping functions  Example, Norton utilities includes data backup, virus protection, data compression, etc. Performance monitors  Programs that monitor and adjust computer system to keep them running efficiently Security monitors  Programs that monitor and control use of computer systems to prevent unauthorized use of resources
  • WEB LANGUAGES  HTML  A page description language that creates hypertext documents for the Web  XML  Describes the contents of Web pages by applying identifying tags or contextual labels to the data in Web documents  Java  Object-oriented programming language that is simple, secure and platform independent  Java applets can be executed on any computer
  • WEB LANGUAGES
  • Data ResouRce ManageMent
  • Foundation Data Concepts Data Organization Structure is logically organized into:-Data Organization Structure is logically organized into:-  Character  Field  Record  File  Database Like writing can be organized into letters, word, paragraph & sentences
  • CHARACTER  Consists of a single alphabets, numeric or other symbol.  It is a byte used to represent a particular character.
  • field  Consists of a grouping of related characters.  E.g., person names represent the name field. i.e., last name, first name, state, city, telephone #
  • RECORD  Fields when grouped together make a record.  An allocation of attributes to describe any entity.  E.g.,  Person payroll records  Employee claims record  Student academic records
  • FILE  Group of related records is a data file or table.  A single table may be referred to as a flat file.  E.g.,  Employee file  Student file  Inventory file  Payroll file etc
  • DATABASE  An integrated collection of logically related data elements.  It contains all the records
  • Foundation Data Concepts Employee Record 1 Employee Record 2 Employee Record 3 Employee Record 4 Name Field SS No. Field Salary Field Name Field SS No. Field Salary Field Name Field SS No. Field Salary Field Name Field SS No. Field Salary Field Jones T.A. 275-32-3874 20,000 Klugman J.L. 349-88-7913 28,000 Alverez, J.S. 542-40-3718 100,000 Porter, M.L. 617-87-7915 50,000 Human Resource Database Payroll File Benefit File Data Organization StructureData Organization Structure
  • Foundation Data Concepts Electric Utility Database Entities: Customers, Meters, Bills, Payments, Meter Readings Relationships: Bills Sent to Customers Customers Make Payments Customers Use Meters Billing Meter Reading Payment Processing Service Start/Stop Example: An Electric Utility DatabaseExample: An Electric Utility Database
  • DATABASE STRUCTURES  DBMS packages are designed to use specific data structures to provide end users with quick; easy access to information stored in the databases.
  • DATABASE STRUCTURES  Five Major Database StructuresFive Major Database Structures •Hierarchical Structure •Network Structure •Relational Model •Object-Oriented •Multidimensional Structure
  • HIERARCHICAL STRUCTURE  One-to-many relationship  Relationship b/w records from a hierarchy structure all of them are dependent.  Root element
  • NETWORK STRUCTURE  Allow many-to-many relationships among records.  E.g., employee records can be related to more than one project record & vice versa.
  • RELATIONAL STRUCTURE  It is used by most microcomputers DBMS packages as well as by both midrange & mainframes systems.  In this, all data elements within the database are viewed as being stored in the form of simple two dimensional tables sometimes referred to as relations . Department Table Employee Table Deptno Dname Dloc Dmgr Empno Ename Etitle Esalary Deptno Emp 1 Emp 2 Emp 3 Emp 4 Emp 5 Emp 6 Dept A Dept B Dept C Dept A Dept B Dept A Dept B Dept C Dept B
  • MULTIDIMENSIONAL STRUCTURE
  • Object-oriented structure Attributes •Customer •Balance •Interest Operations •Deposit (Amount) •Withdraw (Amount) •Get Owner Attributes •Credit Line •Monthly Statements Operations •Calculate Interest •Print Monthly Statement Attributes •Number of Withdrawals •Quarterly Statement Operations •Calculate Interest Paid •Print Quarterly Statement Bank Account Object Checking Account Object Savings Account Object Inheritance Inheritance Web basedWeb based applicationsapplications Describing theDescribing the attributes of anattributes of an entity, plus theentity, plus the operations that canoperations that can be performs upon thebe performs upon the datadata SupportsSupports inheritanceinheritance
  • Object-oriented structure
  • Database Development Database management packages like Microsoft Access or Lotus Approach allow end users to easily develop the database they need.
  • Database Development •Database Administrators (DBAs) •Data Definition Language (DDL) •Oracle 10g or IBM DB2 •Data Dictionary or Metadata Repository •Database management catalog or directory that contain metadata. •Relies on specialized database software component to manage a database. •Metadata •Data on data
  • Data Mining  Identify New Product Bundles  Find Root Causes to Quality or Manufacturing Problems  Prevent Customer Attrition  Cross-Sell to Existing Customers  Profile Customers with More Accuracy
  • Types of Databases  Operational Databases  Distributed Databases  External Databases  Hypermedia Databases
  • Distributed Database ModelDistributed Database Model Client PC Distributed Databases on Intranets and Other Networks End User Databases Data Warehouse Data Marts Operational Databases of the Organization Network Server External Databases on the Internet and Online Services
  • Operational DatabasesOperational Databases Types of Databases
  • Web-Based Information SystemWeb-Based Information System Web Browser The Internet Intranets Extranets Web Server Software HTML XML Web Pages Image Files Video Files Audio Files Network Server Client PCs Hypermedia Database Types of Databases
  • Data Warehouses Applications Data Marts Finance Marketing Sales Accounting Management Reporting ERP Purchasing CRM Inveentory Control Shipping Logistics
  • 5-170 Data Warehouse Components
  • 5-171 Applications and Data Marts
  • 5-172 Database Management System  In mainframe and server computer systems, a software package that is used to…  Create new databases and database applications  Maintain the quality of the data in an organization’s databases  Use the databases of an organization to provide the information needed by end users
  • 5-173 Common DBMS Software Components  Database definition  Language and graphical tools to define entities, relationships, integrity constraints, and authorization rights  Nonprocedural access  Language and graphical tools to access data without complicated coding  Application development  Graphical tools to develop menus, data entry forms, and reports
  • 5-174 Common DBMS Software Components  Procedural language interface  Language that combines nonprocedural access with full capabilities of a programming language  Transaction processing  Control mechanism prevents interference from simultaneous users and recovers lost data after a failure  Database tuning  Tools to monitor, improve database performance
  • 5-175 Database Management System  Database Development  Defining and organizing the content, relationships, and structure of the data needed to build a database  Database Application Development  Using DBMS to create prototypes of queries, forms, reports, Web pages  Database Maintenance  Using transaction processing systems and other tools to add, delete, update, and correct data
  • 5-176 DBMS Major Functions
  • 5-177 Database Interrogation  End users use a DBMS query feature or report generator  Response is video display or printed report  No programming is required  Query language  Immediate response to ad hoc data requests  Report generator  Quickly specify a format for information you want to present as a report
  • 5-178 Database Interrogation  SQL Queries  Structured, international standard query language found in many DBMS packages  Query form is SELECT…FROM…WHERE…
  • 5-179 Database Interrogation  Boolean Logic  Developed by George Boole in the mid-1800s  Used to refine searches to specific information  Has three logical operators: AND, OR, NOT  Example  Cats OR felines AND NOT dogs OR Broadway
  • 5-180 Database Interrogation  Graphical and Natural Queries  It is difficult to correctly phrase SQL and other database language search queries  Most DBMS packages offer easier-to-use, point-and-click methods  Translates queries into SQL commands  Natural language query statements are similar to conversational English
  • 5-181 Graphical Query Wizard
  • 5-182 Database Maintenance  Accomplished by transaction processing systems and other applications, with the support of the DBMS  Done to reflect new business transactions and other events  Updating and correcting data, such as customer addresses
  • 5-183 Application Development  Use DBMS software development tools to develop custom application programs  Not necessary to develop detailed data-handling procedures using conventional programming languages  Can include data manipulation language (DML) statements that call on the DBMS to perform necessary data handling
  • Telecommunications and Networks
  • 6-185 Types of Communications Networks  Primary types of communications networks  Wide Area  Local Area  Virtual Private  Client/Server  Peer-to-peer
  • 6-186 Wide Area Network (WAN)  Telecommunication network that covers a large geographic area
  • 6-187 Local Area Network (LAN)  Connects computers within a limited physical area, such as an office, classroom, or building
  • 6-188 Virtual Private Networks (VPN)  Used to establish secure intranets and extranets  The Internet is the main backbone network  Relies on network firewalls, encryption, and other security features to build a “pipe” through the Internet  Creates a private network without the high cost of a separate proprietary connection
  • 6-189 Virtual Private Network
  • 6-190 Client/Server Networks  Clients  End user personal computers or networked computers  Servers  Used to manage the networks  Processing  Shared between the clients and servers  Sometimes called a two-tier architecture  Larger computer systems are being replaced with multiple client/server networks
  • 6-191 Client/Server Network
  • 6-192 Network Computing  Networks are the central computing resource of the organization  Thin clients provide a browser-based user interface for processing applets  Thin clients include  Network computers  Net PCs  Other low-cost network devices or information appliances
  • 6-193 Network Computing  Application and database servers provide  The operating system  Application software  Applets  Databases  Database management software  Sometimes called a three-tier client/server model because it consists of  Thin clients  Application servers  Database servers
  • 6-194 Network Computing
  • 6-195 Peer-to-Peer Networks  Central Server Architecture  P2P file-sharing software connects all PCs to a central server  When a PC requests a file, the server searches all active peers on the network  The server sends the requesting PC a list of links to all active peers who have the file  Clicking a link connects the two PCs and automatically transfers the file to the requesting PC
  • 6-196 Peer-to-Peer Networks  Pure Peer-to-Peer Architecture  No central directory or server  File-sharing software connects one PC to another online user  When you request a file, the software searches every online user and sends you a list of active file names  Clicking a link automatically transfers the file from that user’s hard drive to yours
  • 6-197 Central Server Peer-to-Peer Networks  Advantages  Can better protect the integrity and security of the content and users of the network  Disadvantages  Directory server can be slowed or overwhelmed by too many users or technical problems
  • 6-198 Peer-to-Peer Network Diagrams
  • 6-199 Digital and Analog Signals  Analog or digital refers to the method used to convert information into an electrical signal  Analog: an electrical current is generated that is proportional to the quantity being observed  Digital: the quantity being observed is expressed as a number  Analog: if the temperature is 83 degrees, a measuring device would generate 8.3 volts  Digital: a measurement of 83 degrees would be displayed as the number 83
  • 6-200 Telecommunications Media  Twisted-Pair Wire  Ordinary telephone wire  Copper wire is twisted into pairs
  • 6-201 Telecommunications Media  Coaxial Cable  Sturdy copper or aluminum wire wrapped with spacers to insulate and protect it
  • 6-202 Telecommunications Media  Fiber-Optic Cable  One or more hair-thin filaments of glass fiber wrapped in a protective jacket
  • 6-203 The Problem of “The Last Mile”  Network providers use fiber optic cable as a communications backbone  Houses connected to the backbone are wired with twisted pair  Users don’t benefit from the faster, better technology
  • 6-204 Wireless Technologies  Terrestrial Microwave  Earthbound microwave systems transmit high-speed radio signals  Follows a line-of-sight path between relay systems spaced about 30 miles apart  Communications Satellites  Serve as relay stations  Use microwave radio signals  Earth stations beam signals to the satellites  Not suitable for interactive, real-time processing
  • 6-205 Wireless Technologies  Cellular and PCS Telephone and Pager Systems  Geographic areas are divided into cells  Each cell has a low-power transmitter or radio relay antenna  Computers and other communications processors coordinate and control the transmissions to and from mobile users
  • 6-206 Wireless Technologies  Wireless LANS  Uses wireless radio-wave technology to connect PCs within an office or a building  Can be high-frequency, similar to digital cellular, or low frequency (spread spectrum)  Bluetooth  Short-range wireless technology  Connects PCs to devices, such as a printer  Fairly low cost to implement
  • 6-207 Wireless Technologies  Other Wireless Systems  Cellular phones  Mobile radio  PDAs  Telecommunications networks now play vital and pervasive roles in  Web-enabled e-business processes  Electronic commerce  Enterprise collaboration  Other applications that support business operations, management, and strategic objectives
  • 6-208 The Wireless Web  Wireless Internet access is growing as Web-enabled information appliances proliferate  Smart telephones, pagers, PDAs  All are very thin clients in wireless networks
  • 6-209 Telecommunications Processors  Modems  The most common type of communications processor  Converts a digital signal to an analog frequency that can be transmitted over phone lines, then back into a digital signal  Modulation and demodulation
  • 6-210 Comparing Technologies
  • 6-211 Inter-Network Processors  Switch… makes connections between telecommunications circuits in a network  Router… intelligent communications processor that interconnects networks based on different protocols  Hub… a port-switching communications processor  Gateway… connects networks with different
  • 6-212 Communications Processors
  • 6-213 Communications Processors  Multiplexer… allows a single communications channel to carry simultaneous data transmissions from many terminals  In time division multiplexing (TDM), the multiplexer divides the time each terminal can use the high-speed into short time slots  Multiplexers increase the number of transmissions possible  Does not increase the number of physical data channels
  • 6-214 Telecommunications Software  May reside in PCs, servers, mainframes, and communications processors  Vital part of all telecommunications networks  Used to manage network performance  WANs often use telecommunications monitors or teleprocessing monitors  Other networks use operating system software  Middleware helps diverse networks communicate with each other
  • 6-215 Network Management Functions  Traffic Management  Manage network resources and traffic to avoid congestion and optimize service levels  Security  Provide authentication, encryption, firewall, auditing, and enforcement  Network Monitoring  Troubleshoot and watch over the network, alerting administrators of potential problems
  • 6-216 Network Management Functions  Capacity Planning  Survey network resources, traffic patterns, and users’ needs  Determine the best way to accommodate the needs of the network as it grows and changes
  • 6-217 Network Topologies  Topology  The structure of a network  Star Network  Ties end user computers to a central computer  Ring Network  Ties local computer processors together in a ring on a relatively equal basis  Bus Network  Local processors share the same communications channel
  • 6-218 Network Topologies  Mesh Network  Uses direct communications lines to connect some or all of the computers in the ring to each other  Switch  A message-switching computer that handles data communication between autonomous local computers
  • 6-219 Network Topologies
  • 6-220 Network Architectures and Protocols  Protocol  A standard set of rules and procedures for the control of communications in a network  Handshaking  The process of exchanging predetermined signals and characters  Establishes a telecommunications session between terminals and computers
  • 6-221 Network Architectures and Protocols  Network Architecture  Master plan of standard protocols, hardware, software, and interfaces between end users and computer systems  Goal is to promote an open, simple, flexible, and efficient telecommunications environment
  • 6-222 OSI and TCP/IP Models  Open Systems Interconnection (OSI) Model  A seven-layer model that serves as a standard model for network architectures  Model for how messages should be transmitted between two points in a network  Each layer adds functions  Transmission Control Protocol/Internet Protocol (TCP/IP)  A five-layer telecommunications protocol used by the Internet
  • 6-223 OSI and TCP/IP Models
  • 6-224 Voice Over IP  Internet Telephony  Using an Internet connection to pass voice data using IP instead of a telephone network  Often referred to as voice over IP or VoIP  Works like a regular phone, but skips long-distance charges  Runs over standard network infrastructure  Requires a well-configured network to work smoothly
  • 6-225 Bandwidth  Bandwidth  The frequency range of a telecommunications channel that determines the maximum transmission rate  Speed and capacity typically measured in bits per second (bps)  Sometimes call baud rate  Transmission Rates  Narrow-band = low speed  Broadband = high speed
  • 6-226 Transmission Speeds
  • 6-227 Switching Alternatives  Circuit Switching  Switch opens a circuit to establish a link between a sender and a receiver  It remains open until the communication session is completed  Packet Switching  Breaks messages into groups called packets  Transmits packets separately
  • 6-228 Network Interoperability  Ensures that anyone anywhere on one network can communicate with anyone anywhere on another network  From a telecommunications perspective, no need to speak a common language  Telecommunications would be possible without  Complete accessibility  Transparency  Seamless interoperability across all networks
  • ElEctronic BusinEss systEms
  • 7-230 Enterprise Business Systems  E-business means using the Internet, other networks, and IT to support  Electronic commerce  Enterprise communications and collaboration  Web-enabled business processes  E-commerce is the buying, selling, and marketing of products, services, and information over the Internet and other networks
  • 7-231 Cross-Functional Systems  Cross the boundaries of traditional business functions  Used to reengineer and improve vital business processes all across the enterprise
  • 7-232 Enterprise Application Architecture
  • 7-233 Enterprise Application Architecture  Provides a conceptual framework  Helps visualize the basic components, processes, and interfaces of major e-business applications  Focuses on accomplishing fundamental business processes in concert with  Customers  Suppliers  Partners  Employees
  • 7-234 Enterprise Application Architecture  Enterprise Resource Planning (ERP)  Concentrates on the efficiency of internal production, distribution, and financial processes  Customer Relationship Management (CRM)  Focuses on acquiring and retaining profitable customers via marketing, sales, and services  Partner Relationship Management (PRM)  Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services
  • 7-235 Enterprise Application Architecture  Supply Chain Management (SCM)  Focuses on developing the most efficient and effective sourcing and procurement processes  Knowledge Management (KM)  Focuses on facilitating internal group collaboration and decision support
  • 7-236 Enterprise Application Integration  EAI software connects cross-functional systems  Serves as middleware to provide  Data conversion  Communication between systems  Access to system interfaces
  • 7-237 Transaction Processing Systems  Cross-functional information systems that process data resulting from the occurrence of business transactions  Transactions include sales, purchases, deposits, withdrawals, refunds, and payments  Online transaction processing (OLTP) is a real-time system that captures transactions immediately
  • 7-238 Transaction Processing Systems
  • 7-239 The Transaction Processing Cycle
  • 7-240 Enterprise Collaboration Systems (ECS)  EC systems are cross-functional information systems that enhance team and workgroup  Communication  Coordination  Collaboration  Systems may include  Networked PC workstations  Servers  Databases  Groupware and application packages
  • 7-241 ECS Tools
  • 7-242 Functional Business Systems  A variety of types of information systems that support the business functions of  Accounting  Finance  Marketing  Operations management  Human resource management
  • 7-243 IT in Business
  • 7-244 Marketing Systems  Marketing systems are concerned with  Planning, promotion, and sale of existing products in existing markets  Development of new products and new markets  Better attracting and serving present and potential customers
  • 7-245 Marketing Information Systems
  • 7-246 Interactive Marketing  Interactive Marketing  A customer-focused marketing process  Uses the Internet, intranets, and extranets  Establishes two-way transactions between a business and its customers or potential customers  Goal  Profitably use networks to attract and keep customers  Get customers to help create, purchase, and improve products and services
  • 7-247 Targeted Marketing  An advertising and promotion management concept with five targeting components
  • 7-248 Targeted Marketing Components  Community: customized ads to appeal to specific virtual communities  Content: ads placed on a variety of selected websites, aimed at a specific audience  Context: ads placed on web pages that are relevant to a product or service  Demographic/Psychographic: web marketing
  • 7-249 Sales Force Automation  Outfit sales force with notebook computers, web browsers, and sales contact software  Connect them to marketing websites and the company intranet  Goals  Increase personal productivity  Speed up capture and analysis of sales data  Gain strategic advantage
  • 7-250 Manufacturing Information Systems  Supports the production/operations functions  Includes all activities concerned with planning and control of the processes producing goods or services
  • 7-251 Computer-Integrated Manufacturing
  • 7-252 CIM Objectives  Simplify production processes, product designs, and factory organization  Automate production processes and the business functions that support them  Integrate all production and support processes using  Networks  Cross-functional business software
  • 7-253 CIM Systems  Computer-aided manufacturing (CAM)  Automate the production process  Manufacturing execution systems (MES)  Performance monitoring information systems for factory floor operations  Process control  Control ongoing physical processes  Machine control  Controls the actions of machines
  • 7-254 Human Resource Management (HRM)  Information systems designed to support  Planning to meet personnel needs  Development of employees to their full potential  Control of all personnel policies and programs
  • 7-255 HRM Systems
  • 7-256 HRM and the Internet  Recruiting employees using the corporate website and commercial recruiting services  Posting messages in selected Internet newsgroups  Communicating with job applicants via e-mail
  • 7-257 HRM and Corporate Intranets  Corporate intranet uses  Process common HRM transactions  Allow around-the-clock HRM services  Disseminate information faster than through previous company channels  Collect information from employees online  Allow HRM tasks to be performed with little HRM department intervention  Training
  • 7-258 Employee Self-Service  Intranet applications can allow employees to  View benefits  Enter travel and expense reports  Verify employment and salary information  Access and update personal information  Enter time-sensitive data
  • 7-259 Accounting Information Systems  The oldest and most widely used information system in business  Records and reports business transactions and economic events  Produces financial statements  Forecasts future conditions
  • 7-260 Accounting Information Systems  Typically consists of  Order processing  Inventory control  Accounts receivable  Accounts payable  Payroll  General ledger systems
  • 7-261 Accounting Information Systems
  • 7-262 Financial Management Systems  Supports business managers and professionals making decisions concerning  The financing of a business  The allocation and control of financial resources within a business
  • 7-263 Financial Management System Example
  • EntErprisE BusinEss systEms
  • 8-265 What is CRM?  Managing the full range of the customer relationship involves  Providing customer-facing employees with a single, complete view of every customer at every touch point and across all channels  Providing the customer with a single, complete view of the company and its extended channels  CRM uses IT to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes
  • 8-266 Application Clusters in CRM
  • 8-267 Contact and Account Management  CRM helps sales, marketing, and service professionals capture and track relevant data about  Every past and planned contact with prospects and customers  Other business and life cycle events of customers  Data are captured through customer touchpoints  Telephone, fax, e-mail  Websites, retail stores, kiosks  Personal contact
  • 8-268 Sales  A CRM system provides sales reps with the tools and data resources they need to  Support and manage their sales activities  Optimize cross- and up-selling  CRM also provides the means to check on a customer’s account status and history before scheduling a sales call
  • 8-269 Marketing and Fulfillment  CRM systems help with direct marketing campaigns by automatic such tasks as  Qualifying leads for targeted marketing  Scheduling and tracking mailings  Capturing and managing responses  Analyzing the business value of the campaign  Fulfilling responses and requests
  • 8-270 Customer Service and Support  A CRM system gives service reps real-time access to the same database used by sales and marketing  Requests for service are created, assigned, and managed  Call center software routes calls to agents  Help desk software provides service data and suggestions for solving problems  Web-based self-service enables customers
  • 8-271 Retention and Loyalty Programs  It costs 6 times more to sell to a new customer  An unhappy customer will tell 8-10 others  Boosting customer retention by 5 percent can boost profits by 85 percent  The odds of selling to an existing customer are 50 percent; a new one 15 percent  About 70 percent of customers will do business
  • 8-272 Retention and Loyalty Programs  Enhancing and optimizing customer retention and loyalty is a primary objective of CRM  Identify, reward, and market to the most loyal and profitable customers  Evaluate targeted marketing and relationship programs
  • 8-273 The Three Phases of CRM
  • 8-274 Benefits of CRM  Benefits of CRM  Identify and target the best customers  Real-time customization and personalization of products and services  Track when and how a customer contacts the company  Provide a consistent customer experience  Provide superior service and support across all customer contact points
  • 8-275 CRM Failures  Business benefits of CRM are not guaranteed  50 percent of CRM projects did not produce promised results  20 percent damaged customer relationships  Reasons for failure  Lack of understanding and preparation  Not solving business process problems first  No participation on part of business stakeholders involved
  • 8-276 Trends in CRM  Operational CRM  Supports customer interaction with greater convenience through a variety of channels  Synchronizes customer interactions consistently across all channels  Makes the company easier to do business with
  • 8-277 Trends in CRM  Analytical CRM  Extracts in-depth customer history, preferences, and profitability from databases  Allows prediction of customer value and behavior  Allows forecast of demand  Helps tailor information and offers to customer needs
  • 8-278 Trends in CRM  Collaborative CRM  Easy collaboration with customers, suppliers, and partners  Improves efficiency and integration throughout supply chain  Greater responsiveness to customer needs through outside sourcing of products and services
  • 8-279 Trends in CRM  Portal-based CRM  Provides users with tools and information that fit their needs  Empowers employees to respond to customer demands more quickly  Helps reps become truly customer-faced  Provides instant access to all internal and external customer information
  • 8-280 ERP: The Business Backbone  ERP is a cross-functional enterprise backbone that integrates and automates processes within  Manufacturing  Logistics  Distribution  Accounting  Finance  Human resources
  • 8-281 What is ERP?  Enterprise resource planning is a cross-functional enterprise system  An integrated suite of software modules  Supports basic internal business processes  Facilitates business, supplier, and customer information flows
  • 8-282 ERP Application Components
  • 8-283 ERP Process and Information Flows
  • 8-284 Benefits and Challenges of ERP  ERP Business Benefits  Quality and efficiency  Decreased costs  Decision support  Enterprise agility  ERP Costs  Risks and costs are considerable  Hardware and software are a small part of total costs  Failure can cripple or kill a business
  • 8-285 Costs of Implementing a New ERP
  • 8-286 Causes of ERP Failures  Most common causes of ERP failure  Under-estimating the complexity of planning, development, training  Failure to involve affected employees in planning and development  Trying to do too much too fast  Insufficient training  Insufficient data conversion and testing  Over-reliance on ERP vendor or consultants
  • 8-287 Trends in ERP
  • 8-288 Supply Chain Management (SCM)  Fundamentally, supply chain management helps a company  Get the right products  To the right place  At the right time  In the proper quantity  At an acceptable cost
  • 8-289 Goals of SCM  The goal of SCM is to efficiently  Forecast demand  Control inventory  Enhance relationships with customers, suppliers, distributors, and others  Receive feedback on the status of every link in the supply chain
  • 8-290 What is a Supply Chain?  The interrelationships  With suppliers, customers, distributors, and other businesses  Needed to design, build, and sell a product  Each supply chain process should add value to the products or services a company produces  Frequently called a value chain
  • 8-291 Supply Chain Life Cycle
  • 8-292 Electronic Data Interchange  EDI  One of the earliest uses of information technology for supply chain management  The electronic exchange of business transaction documents between supply chain trading partners  The almost complete automation of an e-commerce supply chain process  Many transactions occur over the Internet, using secure virtual private networks
  • 8-293 Typical EDI Activities
  • 8-294 Roles and Activities of SCM in Business
  • 8-295 Planning & Execution Functions of SCM  Planning  Supply chain design  Collaborative demand and supply planning  Execution  Materials management  Collaborative manufacturing  Collaborative fulfillment  Supply chain event management  Supply chain performance management
  • 8-296 Benefits and Challenges of SCM  Key Benefits  Faster, more accurate order processing  Reductions in inventory levels  Quicker times to market  Lower transaction and materials costs  Strategic relationships with supplier
  • 8-297 Goals and Objectives of SCM
  • 8-298 Benefits and Challenges of SCM  Key Challenges  Lack of demand planning knowledge, tools, and guidelines  Inaccurate data provided by other information systems  Lack of collaboration among marketing, production, and inventory management  SCM tools are immature, incomplete, and hard to implement
  • 8-299 Trends in SCM
  • ElEctronic commErcE SyStEmS
  • 9-301 The Scope of e-Commerce
  • 9-302 E-Commerce Technologies
  • 9-303 Categories of e-Commerce  Business-to-Consumer  Virtual storefronts, multimedia catalogs, interactive order processing, electronic payment, online customer support  Business-to-Business  Electronic business marketplaces, direct links between businesses, auctions and exchanges  Consumer-to-Consumer  Online auctions, posting to newspaper sites, personal websites, e-commerce portals
  • 9-304 Essential e-Commerce Architecture
  • 9-305 Access Control and Security  E-commerce processes must establish mutual trust and secure access between parties  User names and passwords  Encryption key  Digital certificates and signatures  Restricted access areas  Other people’s accounts  Restricted company data  Webmaster administration areas
  • 9-306 Profiling and Personalizing  Profiling gathers data on you and your website behavior and choices  User registration  Cookie files and tracking software  User feedback  Profiling is used for  Personalized (one-to-one) marketing  Authenticating identity  Customer relationship management  Marketing planning
  • 9-307 Search Management  Search processes help customers find the specific product or service they want  E-commerce software packages often include a website search engine  A customized search engine may be acquired from companies like Google or Requisite Technology  Searches are often on content or by parameters
  • 9-308 Content and Catalog Management  Content Management Software  Helps develop, generate, deliver, update, and archive text and multimedia information at e-commerce websites  Catalog Management Software  Helps generate and manage catalog content  Catalog and content management software works with profiling tools to personalize content  Includes product configuration and mass customization
  • 9-309 Workflow Management  E-business and e-commerce workflow manage- ment depends on a workflow software engine  Contains software model of business processes  Workflow models express predefined  Sets of business rules  Roles of stakeholders  Authorization requirements  Routing alternative  Databases used 
  • 9-310 Example of Workflow Management
  • 9-311 Event Notification  Most e-commerce applications are event driven  Responds to such things as customer’s first website visit and payments  Monitors all e-commerce processes  Records all relevant events, including problem situations  Notifies all involved stakeholders  Works in conjunction with user-profiling software
  • 9-312 Collaboration and Trading  Processes that support vital collaboration arrangements and trading services  Needed by customers, suppliers, and other stakeholders  Online communities of interest  E-mail, chat, discussion groups  Enhances customer service  Builds loyalty
  • 9-313 Electronic Payment Processes  Complex processes  Near-anonymous and electronic nature of transactions  Many security issues  Wide variety of debit and credit alternatives  Financial institutions may be part of the process
  • 9-314 Electronic Payment Processes  Web Payment Processes  Shopping cart process  Credit card payment process  Debit and other more complex processes  Electronic Funds Transfer (EFT)  Major payment system in banking, retail  Variety of information technologies capture and process money and credit card transfers  Most point-of-sale terminals in retail stores are networked to bank EFT systems
  • 9-315 Electronic Payment Example
  • 9-316 Securing Electronic Payments  Network sniffers easily recognize credit card formats  Encrypt data between customer and merchant  Encrypt data between customer and financial institution  Take sensitive information off-line
  • 9-317 E-Commerce Application Trends
  • 9-318 E-Commerce Success Factors  Some of the success factors in e-commerce  Selection and value  Performance and service  Look and feel  Advertising and incentives  Personal attention (one-to-one marketing)  Community relationships  Security and reliability
  • 9-319 Differences in Marketing
  • 9-320 Web Store Requirements
  • 9-321 Developing a Web Store  Build a website  Choose or set up web hosting  Use simple design tools and templates  Include a shopping cart and payment support  Market the website  Include Web page and e-mail advertising and promotions  Exchange advertising with other Web stores  Register with search engines and directories  Sign up for affiliate programs
  • 9-322 Serving Your Customers  Convert visitors into loyal customers  Develop one-to-one relationship with customers  Create incentives to encourage registration  Use Web cookies to identify visitors  Use tracking services to record and analyze website behavior and customer preferences  Create an attractive, friendly, efficient store  Offer fast order processing and payment  Notify when orders are processed and shipped  Provide links to related websites
  • 9-323 Managing a Web Store  Manage both the business and the website  Record and analyze traffic, inventory, sales  Use CRM features to help retain customers  Link sales, inventory data to accounting systems  Operate 24 hours a day, seven day a week  Protect transactions and customer records  Use security monitors and firewalls  Use redundant systems and power sources  Employ passwords and encryption
  • 9-324 B2B E-Commerce  B2B is the wholesale and supply side of the commercial process  Businesses buy, sell, or trade with other businesses  Relies on multiple electronic information technologies  Catalog systems  Trading systems  Data interchange  Electronic funds transfers
  • 9-325 E-Commerce Marketplaces  One to Many  Sell-side marketplaces  One supplier dictates product offerings and prices  Many to One  Buy-side marketplaces  Many suppliers bid for the business of a buyer  Some to Many  Distribution marketplaces  Unites suppliers who combine their product catalogs to attract a larger audience
  • 9-326 E-Commerce Marketplaces  Many to Some  Procurement marketplaces  Unites major buyers who combine purchasing catalogs  Attracts more competition and thus lower prices  Many to Many  Auction marketplaces  Dynamically optimizes prices
  • 9-327 E-Commerce Portals  B2B e-commerce portals offer multiple marketplaces  Catalogs  Exchanges  Auctions  Often developed and hosted by third-party market- maker companies  Infomediaries serve as intermediaries in e-business and e-commerce transactions
  • 9-328 B2B E-Commerce Web Portal
  • 9-329 Clicks and Bricks  Success will go to those who can integrate Internet initiatives with traditional operations  Merging operations has trade-offs
  • 9-330 E-Commerce Integration  The business case for merging e-commerce with traditional business operations  Move strategic capabilities in traditional operations to the e-commerce business  Integrate e-commerce into the traditional business  Sharing of established brands  Sharing of key business information  Joint buying power and distribution efficiencies
  • 9-331 Other Clicks and Bricks Strategies  Partial e-commerce integration  Joint ventures and strategic partnerships  Complete separation  Spin-off of an independent e-commerce company  Barnes and Noble’s experience  Spun off independent e-commerce company  Gained venture capital, entrepreneurial culture, and flexibility  Attracted quality management  Accelerated decision making  Failed to gain market share
  • 9-332 E-Commerce Channel Choices  An e-commerce channel is the marketing or sales channel created by a company for its e-commerce activities  There is no universal strategy or e-commerce channel choice  Both e-commerce integration and separation have major business benefits and shortcoming  Most businesses are implementing some measure of clicks and bricks integration
  • 9-333 E-Commerce Strategy Checklist  Questions to ask and answer  What audiences are we attempting to reach?  What action do we want those audiences to take?  Who owns the e-commerce channel within the organization?  Is the e-commerce channel planned alongside other channels?  Is there a process for generating, approving, releasing, and withdrawing content?  Will our brand translate to the new channel?  How will we market the channel itself?
  • DEciSion Support SyStEmS
  • 10-335 Levels of Managerial Decision Making
  • 10-336 Decision Structure  Structured (operational)  The procedures to follow when decision is needed can be specified in advance  Unstructured (strategic)  It is not possible to specify in advance most of the decision procedures to follow  Semi-structured (tactical)  Decision procedures can be pre-specified, but not enough to lead to the correct decision
  • 10-337 Decision Support Systems Management Information Systems Decision Support Systems Decision support provided Provide information about the performance of the organization Provide information and techniques to analyze specific problems Information form and frequency Periodic, exception, demand, and push reports and responses Interactive inquiries and responses Information format Prespecified, fixed format Ad hoc, flexible, and adaptable format Information processing methodology Information produced by extraction and manipulation of business data Information produced by analytical modeling of business data
  • 10-338 Decision Support Trends  The emerging class of applications focuses on  Personalized decision support  Modeling  Information retrieval  Data warehousing  What-if scenarios  Reporting
  • 10-339 Business Intelligence Applications
  • 10-340 Decision Support Systems  Decision support systems use the following to support the making of semi-structured business decisions  Analytical models  Specialized databases  A decision-maker’s own insights and judgments  An interactive, computer-based modeling process  DSS systems are designed to be ad hoc, quick-response systems that are initiated and controlled by decision makers
  • 10-341 DSS Components
  • 10-342 DSS Model Base  Model Base  A software component that consists of models used in computational and analytical routines that mathematically express relations among variables  Spreadsheet Examples  Linear programming  Multiple regression forecasting  Capital budgeting present value
  • 10-343 Applications of Statistics and Modeling  Supply Chain: simulate and optimize supply chain flows, reduce inventory, reduce stock-outs  Pricing: identify the price that maximizes yield or profit  Product and Service Quality: detect quality problems early in order to minimize them  Research and Development: improve quality, efficacy, and safety of products and services
  • 10-344 Management Information Systems  The original type of information system that supported managerial decision making  Produces information products that support many day-to-day decision-making needs  Produces reports, display, and responses  Satisfies needs of operational and tactical decision makers who face structured decisions
  • 10-345 Management Reporting Alternatives  Periodic Scheduled Reports  Prespecified format on a regular basis  Exception Reports  Reports about exceptional conditions  May be produced regularly or when an exception occurs  Demand Reports and Responses  Information is available on demand  Push Reporting
  • 10-346 Example of Push Reporting
  • 10-347 Online Analytical Processing  OLAP  Enables managers and analysts to examine and manipulate large amounts of detailed and consolidated data from many perspectives  Done interactively, in real time, with rapid response to queries
  • 10-348 Online Analytical Operations  Consolidation  Aggregation of data  Example: data about sales offices rolled up to the district level  Drill-Down  Display underlying detail data  Example: sales figures by individual product  Slicing and Dicing  Viewing database from different viewpoints
  • 10-349 OLAP Configuration
  • 10-350 Geographic Information Systems  GIS  DSS uses geographic databases to construct and display maps and other graphic displays  Supports decisions affecting the geographic distribution of people and other resources  Often used with Global Positioning Systems (GPS) devices
  • 10-351 Data Visualization Systems  DVS  Represents complex data using interactive, three-dimensional graphical forms (charts, graphs, maps)  Helps users interactively sort, subdivide, combine, and organize data while it is in its graphical form
  • 10-352 DVS Example
  • 10-353 Using Decision Support Systems  Using a decision support system involves an interactive analytical modeling process  Decision makers are not demanding pre-specified information  They are exploring possible alternatives  What-If Analysis  Observing how changes to selected variables affect other variables
  • 10-354 Using Decision Support Systems  Sensitivity Analysis  Observing how repeated changes to a single variable affect other variables  Goal-seeking Analysis  Making repeated changes to selected variables until a chosen variable reaches a target value  Optimization Analysis  Finding an optimum value for selected variables, given certain constraints
  • 10-355 Data Mining  Provides decision support through knowledge discovery  Analyzes vast stores of historical business data  Looks for patterns, trends, and correlations  Goal is to improve business performance  Types of analysis  Regression  Decision tree  Neural network  Cluster detection  Market basket analysis
  • 10-356 Analysis of Customer Demographics
  • 10-357 Market Basket Analysis  One of the most common uses for data mining  Determines what products customers purchase together with other products  Results affect how companies  Market products  Place merchandise in the store  Lay out catalogs and order forms  Determine what new products to offer  Customize solicitation phone calls
  • 10-358 Executive Information Systems  EIS  Combines many features of MIS and DSS  Provide top executives with immediate and easy access to information  Identify factors that are critical to accomplishing strategic objectives (critical success factors)  So popular that it has been expanded to managers, analysis, and other knowledge workers
  • 10-359 Features of an EIS  Information presented in forms tailored to the preferences of the executives using the system  Customizable graphical user interfaces  Exception reports  Trend analysis  Drill down capability
  • 10-360 Enterprise Information Portals  An EIP is a Web-based interface and integration of MIS, DSS, EIS, and other technologies  Available to all intranet users and select extranet users  Provides access to a variety of internal and external business applications and services  Typically tailored or personalized to the user or groups of users  Often has a digital dashboard  Also called enterprise knowledge portals
  • 10-361 Dashboard Example
  • 10-362 Enterprise Information Portal Components
  • 10-363 Enterprise Knowledge Portal
  • 10-364 Artificial Intelligence (AI)  AI is a field of science and technology based on  Computer science  Biology  Psychology  Linguistics  Mathematics  Engineering  The goal is to develop computers than can simulate the ability to think  And see, hear, walk, talk, and feel as well
  • 10-365 Attributes of Intelligent Behavior  Some of the attributes of intelligent behavior  Think and reason  Use reason to solve problems  Learn or understand from experience  Acquire and apply knowledge  Exhibit creativity and imagination  Deal with complex or perplexing situations
  • 10-366 Attributes of Intelligent Behavior  Attributes of intelligent behavior (continued)  Respond quickly and successfully to new situations  Recognize the relative importance of elements in a situation  Handle ambiguous, incomplete, or erroneous information
  • 10-367 Domains of Artificial Intelligence
  • 10-368 Cognitive Science  Applications in the cognitive science of AI  Expert systems  Knowledge-based systems  Adaptive learning systems  Fuzzy logic systems  Neural networks  Genetic algorithm software  Intelligent agents  Focuses on how the human brain works and how humans think and learn
  • 10-369 Robotics  AI, engineering, and physiology are the basic disciplines of robotics  Produces robot machines with computer intelligence and humanlike physical capabilities  This area include applications designed to give robots the powers of  Sight or visual perception  Touch  Dexterity  Locomotion  Navigation
  • 10-370 Natural Interfaces  Major thrusts in the area of AI and the development of natural interfaces  Natural languages  Speech recognition  Virtual reality  Involves research and development in  Linguistics  Psychology  Computer science  Other disciplines
  • 10-371 Latest Commercial Applications of AI  Decision Support  Helps capture the why as well as the what of engineered design and decision making  Information Retrieval  Distills tidal waves of information into simple presentations  Natural language technology  Database mining
  • 10-372 Latest Commercial Applications of AI  Virtual Reality  X-ray-like vision enabled by enhanced-reality visualization helps surgeons  Automated animation and haptic interfaces allow users to interact with virtual objects  Robotics  Machine-vision inspections systems  Cutting-edge robotics systems  From micro robots and hands and legs, to cognitive and trainable modular vision systems
  • 10-373 Expert Systems  An Expert System (ES)  A knowledge-based information system  Contain knowledge about a specific, complex application area  Acts as an expert consultant to end users
  • 10-374 Components of an Expert System  Knowledge Base  Facts about a specific subject area  Heuristics that express the reasoning procedures of an expert (rules of thumb)  Software Resources  An inference engine processes the knowledge and recommends a course of action  User interface programs communicate with the end user  Explanation programs explain the reasoning process to the end user
  • 10-375 Components of an Expert System
  • 10-376 Methods of Knowledge Representation  Case-Based  Knowledge organized in the form of cases  Cases are examples of past performance, occurrences, and experiences  Frame-Based  Knowledge organized in a hierarchy or network of frames  A frame is a collection of knowledge about an entity, consisting of a complex package of data values describing its attributes
  • 10-377 Methods of Knowledge Representation  Object-Based  Knowledge represented as a network of objects  An object is a data element that includes both data and the methods or processes that act on those data  Rule-Based  Knowledge represented in the form of rules and statements of fact  Rules are statements that typically take the form of a premise and a conclusion (If, Then)
  • 10-378 Expert System Application Categories  Decision Management  Loan portfolio analysis  Employee performance evaluation  Insurance underwriting  Diagnostic/Troubleshooting  Equipment calibration  Help desk operations  Medical diagnosis  Software debugging
  • 10-379 Expert System Application Categories  Design/Configuration  Computer option installation  Manufacturability studies  Communications networks  Selection/Classification  Material selection  Delinquent account identification  Information classification  Suspect identification  Process Monitoring/Control
  • 10-380 Expert System Application Categories  Process Monitoring/Control  Machine control (including robotics)  Inventory control  Production monitoring  Chemical testing
  • 10-381 Benefits of Expert Systems  Captures the expertise of an expert or group of experts in a computer-based information system  Faster and more consistent than an expert  Can contain knowledge of multiple experts  Does not get tired or distracted  Cannot be overworked or stressed  Helps preserve and reproduce the knowledge of human experts
  • 10-382 Limitations of Expert Systems  The major limitations of expert systems  Limited focus  Inability to learn  Maintenance problems  Development cost  Can only solve specific types of problems in a limited domain of knowledge
  • 10-383 Developing Expert Systems  Suitability Criteria for Expert Systems  Domain: the domain or subject area of the problem is small and well-defined  Expertise: a body of knowledge, techniques, and intuition is needed that only a few people possess  Complexity: solving the problem is a complex task that requires logical inference processing
  • 10-384 Developing Expert Systems  Suitability Criteria for Expert Systems  Structure: the solution process must be able to cope with ill-structured, uncertain, missing, and conflicting data and a changing problem situation  Availability: an expert exists who is articulate, cooperative, and supported by the management and end users involved in the development process
  • 10-385 Development Tool  Expert System Shell  The easiest way to develop an expert system  A software package consisting of an expert system without its knowledge base  Has an inference engine and user interface programs
  • 10-386 Knowledge Engineering  A knowledge engineer  Works with experts to capture the knowledge (facts and rules of thumb) they possess  Builds the knowledge base, and if necessary, the rest of the expert system  Performs a role similar to that of systems analysts in conventional information systems development
  • 10-387 Neural Networks  Computing systems modeled after the brain’s mesh-like network of interconnected processing elements (neurons)  Interconnected processors operate in parallel and interact with each other  Allows the network to learn from the data it processes
  • 10-388 Fuzzy Logic  Fuzzy logic  Resembles human reasoning  Allows for approximate values and inferences and incomplete or ambiguous data  Uses terms such as “very high” instead of precise measures  Used more often in Japan than in the U.S.  Used in fuzzy process controllers used in subway trains, elevators, and cars
  • 10-389 Example of Fuzzy Logic Rules and Query
  • 10-390 Genetic Algorithms  Genetic algorithm software  Uses Darwinian, randomizing, and other mathematical functions  Simulates an evolutionary process, yielding increasingly better solutions to a problem  Being uses to model a variety of scientific, technical, and business processes  Especially useful for situations in which thousands of solutions are possible
  • 10-391 Virtual Reality (VR)  Virtual reality is a computer-simulated reality  Fast-growing area of artificial intelligence  Originated from efforts to build natural, realistic, multi-sensory human-computer interfaces  Relies on multi-sensory input/output devices  Creates a three-dimensional world through sight, sound, and touch  Also called telepresence
  • 10-392 Typical VR Applications  Current applications of virtual reality  Computer-aided design  Medical diagnostics and treatment  Scientific experimentation  Flight simulation  Product demonstrations  Employee training  Entertainment
  • 10-393 Intelligent Agents  A software surrogate for an end user or a process that fulfills a stated need or activity  Uses built-in and learned knowledge base to make decisions and accomplish tasks in a way that fulfills the intentions of a user  Also call software robots or bots
  • 10-394 User Interface Agents  Interface Tutors – observe user computer operations, correct user mistakes, provide hints/advice on efficient software use  Presentation Agents – show information in a variety of forms/media based on user preferences  Network Navigation Agents – discover paths to information, provide ways to view it based on user preferences  Role-Playing – play what-if games and other roles to help users understand information and make better decisions
  • 10-395 Information Management Agents  Search Agents – help users find files and databases, search for information, and suggest and find new types of information products, media, resources  Information Brokers – provide commercial services to discover and develop information resources that fit business or personal needs  Information Filters – Receive, find, filter, discard, save, forward, and notify users about products received or desired, including e-mail, voice mail, and other information media