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Information Technology


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Information Technology

  1. 1. IT for Business
  2. 2. Hardware
  3. 3. Categories of Computer Systems
  4. 4. Microcomputer Systems <ul><li>Usually called a personal computer or PC </li></ul><ul><li>Computing power now exceeds that of the mainframes of previous generations </li></ul><ul><li>Relatively inexpensive </li></ul><ul><li>Are the networked professional workstations used by business processions </li></ul><ul><li>Versions include hand-held, notebook, laptop, tablet, portable, desktop, and floor-standing </li></ul>
  5. 5. Microcomputer Uses <ul><li>Workstations </li></ul><ul><ul><li>Supports have mathematical computer and graphics display demands </li></ul></ul><ul><ul><li>CAD, investment and portfolio analysis </li></ul></ul><ul><li>Network Servers </li></ul><ul><ul><li>More powerful than workstations </li></ul></ul><ul><ul><li>Coordinates telecommunications and resource sharing </li></ul></ul><ul><ul><li>Supports small networks and Internet or intranet websites </li></ul></ul>
  6. 6. Corporate PC Criteria <ul><li>Solid performance at a reasonable price </li></ul><ul><li>Operating system ready </li></ul><ul><li>Connectivity </li></ul><ul><ul><li>Network interface cards or wireless capabilities </li></ul></ul>
  7. 7. Information Appliances <ul><li>Hand-held microcomputer devices </li></ul><ul><li>Known as personal digital assistants (PDAs) </li></ul><ul><ul><li>Web-enabled PDAs use touch screens, handwriting recognition, or keypads </li></ul></ul><ul><ul><li>Mobile workers use to access email or the Web, exchange data with desktop PCs or servers </li></ul></ul><ul><ul><li>Latest entrant is the BlackBerry </li></ul></ul><ul><li>PDAs include </li></ul><ul><ul><li>Video-game consoles </li></ul></ul><ul><ul><li>Cellular and PCS phones </li></ul></ul><ul><ul><li>Telephone-based home email appliances </li></ul></ul>
  8. 8. Midrange Systems <ul><li>High-end network servers that handle large-scale processing of business applications </li></ul><ul><li>Not as powerful as mainframes </li></ul><ul><ul><li>Less expensive to buy, operate, and maintain </li></ul></ul><ul><li>Often used to manage </li></ul><ul><ul><li>Large Internet websites </li></ul></ul><ul><ul><li>Corporate intranets and extranets </li></ul></ul><ul><ul><li>Integrated, enterprise-wide applications </li></ul></ul><ul><li>Used as front-end servers to assist mainframes with telecommunications and networks </li></ul>
  9. 9. Mainframe Computer Systems <ul><li>Large, fast, powerful computer systems </li></ul><ul><ul><li>Large primary storage capacity </li></ul></ul><ul><ul><li>High transaction processing </li></ul></ul><ul><ul><li>Handles complex computations </li></ul></ul><ul><li>Widely used as superservers for… </li></ul><ul><ul><li>Large client/server networks </li></ul></ul><ul><ul><li>High-volume Internet websites </li></ul></ul><ul><li>Becoming a popular computing platform for… </li></ul><ul><ul><li>Data mining and warehousing </li></ul></ul><ul><ul><li>Electronic commerce applications </li></ul></ul>
  10. 10. Supercomputer Systems <ul><li>Extremely powerful systems designed for… </li></ul><ul><ul><li>Scientific, engineering, and business applications </li></ul></ul><ul><ul><li>Massive numeric computations </li></ul></ul><ul><li>Markets include… </li></ul><ul><ul><li>Government research agencies </li></ul></ul><ul><ul><li>Large universities </li></ul></ul><ul><ul><li>Major corporations </li></ul></ul><ul><li>Uses parallel processing </li></ul><ul><ul><li>Billions to trillions of operations per second (gigaflops and teraflops) </li></ul></ul>
  11. 11. Computer System Concept
  12. 12. Computer System Concept <ul><li>A system of hardware devices organized by function </li></ul><ul><ul><li>Input </li></ul></ul><ul><ul><ul><li>Keyboards, touch screens, pens, electronic mice, optical scanners </li></ul></ul></ul><ul><ul><ul><li>Converts data into electronic form for entry into computer system </li></ul></ul></ul><ul><ul><li>Processing </li></ul></ul><ul><ul><ul><li>Central Processing Unit (CPU) </li></ul></ul></ul><ul><ul><ul><li>CPU subunits: arithmetic-logic and control unit </li></ul></ul></ul>
  13. 13. Computer System Concept <ul><ul><li>Output </li></ul></ul><ul><ul><ul><li>Video display units, printers, audio response units, and so on </li></ul></ul></ul><ul><ul><ul><li>Converts electronic information into human-intelligible form </li></ul></ul></ul><ul><ul><li>Storage </li></ul></ul><ul><ul><ul><li>Primary storage (memory) </li></ul></ul></ul><ul><ul><ul><li>Secondary storage (disk drives) </li></ul></ul></ul><ul><ul><li>Control </li></ul></ul><ul><ul><ul><li>CPU controls other components of the system </li></ul></ul></ul>
  14. 14. Computer Processing Speeds <ul><li>Early computers </li></ul><ul><ul><li>Milliseconds (thousandths of a second) </li></ul></ul><ul><ul><li>Microseconds (millionths of a second) </li></ul></ul><ul><li>Current computers </li></ul><ul><ul><li>Nanoseconds (billionth of a second) </li></ul></ul><ul><ul><li>Picoseconds (trillionth of a second) </li></ul></ul><ul><li>Program instruction processing speeds </li></ul><ul><ul><li>Megahertz (millions of cycles per second) </li></ul></ul><ul><ul><li>Gigahertz (billions of cycles per second) </li></ul></ul><ul><ul><ul><li>Commonly called the “clock speed” </li></ul></ul></ul>
  15. 15. Computer Processing Speeds <ul><li>Throughput </li></ul><ul><ul><li>The ability to perform useful computation or data processing assignments during a given period </li></ul></ul><ul><li>Speed is dependant on… </li></ul><ul><ul><li>Size of circuitry paths (buses) that interconnect microprocessor components </li></ul></ul><ul><ul><li>Capacity of instruction processing registers </li></ul></ul><ul><ul><li>Use of high-speed cache memory </li></ul></ul><ul><ul><li>Use of specialized microprocessor, such as math coprocessor </li></ul></ul>
  16. 16. Peripherals <ul><li>Peripheral is a generic name for all input, output, and secondary storage devices </li></ul><ul><ul><li>Parts of the computer system, but not the CPU </li></ul></ul><ul><ul><li>Are all online devices </li></ul></ul><ul><li>Online devices </li></ul><ul><ul><li>Separate from the CPU, but electronically connected to and controlled by it </li></ul></ul><ul><li>Offline devices </li></ul><ul><ul><li>Separate from and not under the control of the CPU </li></ul></ul>
  17. 17. Peripherals Advice
  18. 18. Input Technologies <ul><li>Keyboard - Still most widely used input device </li></ul><ul><li>Graphical User Interface (GUI) - Icons, menus, windows, buttons, bars; Selected with pointing devices </li></ul><ul><li>Electronic Mouse - Most popular pointing device; Pressing mouse buttons initiates activity represented by the icon selected </li></ul><ul><li>Trackball - Stationary device, similar to mouse; Roller ball moves cursor on screen </li></ul><ul><li>Pointing Stick - Small eraser-head device embedded in keyboard; Cursor moves in the direction of the pressure placed on the stick </li></ul>
  19. 19. Input Technologies <ul><li>Touchpad </li></ul><ul><ul><li>Small, rectangular, touch-sensitive surface </li></ul></ul><ul><ul><li>Usually on keyboard </li></ul></ul><ul><ul><li>Cursor moves in direction your finger moves </li></ul></ul><ul><li>Touch Screen </li></ul><ul><li>Use computer by touching screen Screen emits a grid of infrared beams, sound waves, or electric current </li></ul><ul><li>Grid is broken when screen is touched </li></ul>
  20. 20. Pen-Based Computing <ul><li>Used in Tablet PCs and PDAs </li></ul><ul><ul><li>Pressure-sensitive layer, similar to touch screen, under liquid crystal display screen </li></ul></ul><ul><ul><li>Software digitizes handwriting, hand printing, and hand drawing </li></ul></ul>
  21. 21. Speech Recognition Systems <ul><li>Speech be the future of data entry </li></ul><ul><ul><li>Easiest, most natural means of human communication </li></ul></ul><ul><li>Recognizing speech patterns </li></ul><ul><ul><li>Discrete required pauses between each word </li></ul></ul><ul><ul><li>Continuous speech recognition software (CSR) recognized continuous, conversationally paced speech </li></ul></ul><ul><li>Speech recognition systems digitize, analyze, and classify speech and sound patterns </li></ul><ul><ul><li>Compares to a database of sound patterns in its vocabulary </li></ul></ul><ul><ul><li>Passes recognized words to the application software </li></ul></ul><ul><ul><li>Typically requires voice recognition training </li></ul></ul><ul><li>Speaker-independent voice recognition systems </li></ul><ul><ul><li>Allows computer to recognize words from a voice it has never heard before </li></ul></ul><ul><ul><li>Typically used in voice-messaging computers </li></ul></ul>
  22. 22. Optical Scanning <ul><li>Devices read text or graphics and convert them into digital input for a computers </li></ul><ul><ul><li>Enables direct entry of data from source documents </li></ul></ul><ul><li>A document management library system </li></ul><ul><ul><li>Scans documents, then organizes and stores them for easy reference or retrieval </li></ul></ul><ul><li>Scanners </li></ul><ul><ul><li>Compact desktop models are popular for low cost and ease of use </li></ul></ul><ul><ul><li>Larger, more expensive flatbed scanners are faster and provide high-resolution color scanning </li></ul></ul><ul><li>Optical Character Recognition (OCR) </li></ul><ul><ul><li>Software that reads characters and codes </li></ul></ul><ul><ul><li>Used to real merchandise tags, sort mail, score tests </li></ul></ul><ul><ul><li>Optical scanning wands read bar codes </li></ul></ul>
  23. 23. Other Input Technologies <ul><li>Magnetic Stripe </li></ul><ul><ul><li>Reads the magnetic stripe on credit cards </li></ul></ul><ul><li>Smart Cards </li></ul><ul><ul><li>Microprocessor chip and memory on credit card </li></ul></ul><ul><ul><li>Use more in Europe than in the U.S. </li></ul></ul><ul><li>Digital Cameras </li></ul><ul><ul><li>Allows you to shoot, store, and download photos or full-motion video with audio into the PC </li></ul></ul><ul><ul><li>Images and audio can then be edited or enhanced </li></ul></ul><ul><li>Magnetic Ink Character Recognition (MICR) </li></ul><ul><ul><li>Used by banks to magnetically read checks and deposit slips </li></ul></ul><ul><ul><li>Requires an iron oxide-based ink </li></ul></ul><ul><ul><li>Reader-sorter equipment magnetizes the ink, then passes it under a reading head to sense the signal </li></ul></ul>
  24. 24. Output Technologies <ul><li>Video Displays </li></ul><ul><ul><li>Cathode-ray tube (CRT) </li></ul></ul><ul><ul><li>Liquid crystal displays (LCDs) </li></ul></ul><ul><ul><ul><li>Active matrix and dual scan </li></ul></ul></ul><ul><ul><li>Plasma displays </li></ul></ul><ul><ul><ul><li>Used in large TVs and flat-panel monitors </li></ul></ul></ul><ul><li>Printed Output </li></ul><ul><ul><li>Inkjet printers spray ink on a page </li></ul></ul><ul><ul><li>Laser printers use an electrostatic process similar to a photocopying machine </li></ul></ul>
  25. 25. Storage Tradeoffs
  26. 26. Computer Storage Fundamentals <ul><li>Uses a two-state or binary representation of data </li></ul><ul><ul><li>On or Off </li></ul></ul><ul><ul><li>On represents the number 1 </li></ul></ul><ul><ul><li>Off represents the number 0 </li></ul></ul><ul><li>Data are processed and stored in computer systems through the presence or absence of On/Off signals </li></ul>
  27. 27. Bit and Byte <ul><li>Bit </li></ul><ul><ul><li>Short for binary digit </li></ul></ul><ul><ul><li>Smallest element of data </li></ul></ul><ul><ul><li>Either zero or one </li></ul></ul><ul><li>Byte </li></ul><ul><ul><li>Group of eight bits, which operate as a single unit </li></ul></ul><ul><ul><li>Represents one character or number </li></ul></ul>
  28. 28. Representing Characters in Bytes
  29. 29. Using Binary Code to Calculate
  30. 30. Storage Capacity Measurement <ul><li>Kilobyte (KB): one thousand bytes </li></ul><ul><li>Megabyte (MB): one million bytes </li></ul><ul><li>Gigabyte (GB): one billions bytes </li></ul><ul><li>Terabyte (TB): one trillion bytes </li></ul><ul><li>Petabyte (PB): one quadrillion bytes </li></ul>
  31. 31. Direct and Sequential Access <ul><li>Direct or Random Access </li></ul><ul><ul><li>Directly store and retrieve data </li></ul></ul><ul><ul><li>Each storage position has a unique address and can be accessed in the same length of time </li></ul></ul><ul><ul><li>Semiconductor memory chips, magnetic disks </li></ul></ul><ul><li>Sequential Access </li></ul><ul><ul><li>Data is stored and retrieved sequentially </li></ul></ul><ul><ul><li>Must be accessed in sequence by searching through prior data </li></ul></ul><ul><ul><li>Magnetic tape </li></ul></ul>
  32. 32. Semiconductor Memory <ul><li>Microelectronic semiconductor memory chips are used for primary storage </li></ul><ul><ul><li>Advantages : small size, fast, shock and temperature resistance </li></ul></ul><ul><ul><li>Disadvantages : volatility; must have uninterrupted electric power or loses memory </li></ul></ul>
  33. 33. Types of Semiconductor Memory <ul><li>Random Access Memory (RAM) </li></ul><ul><ul><li>Most widely used primary storage medium </li></ul></ul><ul><ul><li>Volatile memory </li></ul></ul><ul><ul><li>Read/write memory </li></ul></ul><ul><li>Read-Only Memory (ROM) </li></ul><ul><ul><li>Permanent storage </li></ul></ul><ul><ul><li>Can be read, but not overwritten </li></ul></ul><ul><ul><li>Frequently used programs burnt into chips during manufacturing process </li></ul></ul><ul><ul><li>Called firmware </li></ul></ul>
  34. 34. Flash Drives <ul><li>Sometimes referred to as a jump drive </li></ul><ul><ul><li>Uses a small chips containing thousands of transistors </li></ul></ul><ul><ul><li>Can store data for virtually unlimited periods without power </li></ul></ul><ul><ul><li>Easily transported and highly durable </li></ul></ul><ul><ul><li>Storage capacity of up to 1 GB </li></ul></ul><ul><ul><li>Plugs into any USB port </li></ul></ul>
  35. 35. Magnetic Disks <ul><li>Used for secondary storage </li></ul><ul><ul><li>Fast access and high capacity </li></ul></ul><ul><ul><li>Reasonable cost </li></ul></ul><ul><li>Types of Magnetic Disks </li></ul><ul><ul><li>Floppy Disks (diskettes) </li></ul></ul><ul><ul><ul><li>Magnetic disk inside a plastic jacket </li></ul></ul></ul><ul><ul><li>Hard Disk Drives (hard drives) </li></ul></ul><ul><ul><ul><li>Magnetic disk, access arms, and read/write heads in sealed module for stable environment </li></ul></ul></ul><ul><ul><ul><li>Fixed or removable </li></ul></ul></ul><ul><ul><ul><li>Capacity from several hundred MBs to hundreds of GBs </li></ul></ul></ul>
  36. 36. RAID Storage <ul><li>Redundant Arrays of Independent Disks </li></ul><ul><ul><li>Disk arrays of hard disk drives </li></ul></ul><ul><ul><li>Provides virtually unlimited online storage </li></ul></ul><ul><ul><li>Combines from 6 to more than 100 small hard disk drives into a single unit </li></ul></ul><ul><ul><li>Data are accessed in parallel over multiple paths from many disks </li></ul></ul><ul><ul><li>Redundant storage of data on several disks provides fault-tolerant capacity </li></ul></ul><ul><ul><li>Storage area networks can interconnect many RAID units </li></ul></ul>
  37. 37. Magnetic Tape <ul><li>Secondary storage </li></ul><ul><ul><li>Tape reels, cassettes, and cartridges </li></ul></ul><ul><ul><li>Used in robotic, automated drive assemblies </li></ul></ul><ul><ul><li>Archival and backup storage </li></ul></ul><ul><ul><li>Lower-cost storage solution </li></ul></ul>
  38. 38. Optical Disks
  39. 39. Uses of Optical Disks <ul><li>Image processing </li></ul><ul><ul><li>Long-term storage of historical image files </li></ul></ul><ul><ul><li>Storage of scanned documents </li></ul></ul><ul><li>Publishing medium </li></ul><ul><ul><li>Allows fast access to reference materials </li></ul></ul><ul><ul><li>Catalogs, directories, and so on </li></ul></ul><ul><li>Interactive multimedia applications </li></ul><ul><ul><li>Video games, educational videos, and so on </li></ul></ul>
  40. 40. Software
  41. 41. The Basics <ul><li>Software -a general term for the various kinds of programs used to operate computers and related devices </li></ul><ul><li>Software is an intangible entity </li></ul>
  42. 42. Software <ul><li>detailed instructions that control the operation of the computer </li></ul><ul><li>series of statements or instructions processed sequentially </li></ul><ul><li>while executing, the program is temporarily stored in primary storage </li></ul>
  43. 43. Software <ul><li>Software contains the instructions that the hardware executes to perform an information processing task </li></ul><ul><li>Without the aid of software, the computer (e.g. hardware) is useless </li></ul><ul><li>Two categories of software: </li></ul><ul><ul><li>Application </li></ul></ul><ul><ul><li>System </li></ul></ul>
  44. 44. Software <ul><ul><li>System software </li></ul></ul><ul><ul><ul><li>manages the computer resources </li></ul></ul></ul><ul><ul><ul><li>handles tasks specific to technology management and coordinates the interaction of all technology devices </li></ul></ul></ul><ul><ul><li>Application software </li></ul></ul><ul><ul><ul><li>software used to solve specific business problems </li></ul></ul></ul>
  46. 46. Operating System Software <ul><li>manages and controls the activities of the computer, including booting up </li></ul><ul><ul><li>allocation and assignment of all devices </li></ul></ul><ul><ul><li>scheduling </li></ul></ul><ul><ul><li>monitoring </li></ul></ul>
  47. 47. Operating System Software <ul><li>Operating system software controls application software and manages how the hardware devices work together </li></ul><ul><ul><li>Microsoft Windows 2000 Pro </li></ul></ul><ul><ul><li>Microsoft Windows 2000 ME </li></ul></ul><ul><ul><li>Microsoft Windows XP Home </li></ul></ul><ul><ul><li>Microsoft Windows XP Pro </li></ul></ul><ul><ul><li>Mac OS </li></ul></ul><ul><ul><li>Linux </li></ul></ul>
  48. 48. Graphical User Interface <ul><li>GUI </li></ul><ul><ul><li>the part of the operating system that the user interacts with that uses icons and mouse to issue commands and make selections </li></ul></ul><ul><li>used to be command driven(CUI) </li></ul>
  50. 50. Multi-Tasking <ul><li>How is this done? </li></ul><ul><ul><li>Concurrent use of resources </li></ul></ul><ul><ul><li>time sharing </li></ul></ul><ul><ul><li>virtual storage </li></ul></ul><ul><li>It just looks like everything is happening at once. It really isn’t. </li></ul>
  51. 51. If you have more than one processor…… <ul><li>Multi Processing </li></ul><ul><ul><li>split program among more than one processors </li></ul></ul><ul><ul><li>Computer utilization will be much faster </li></ul></ul><ul><ul><li>Requires special software and hardware </li></ul></ul>
  52. 52. <ul><li>Application software is used for specific information processing needs, including: </li></ul><ul><ul><li>Payroll </li></ul></ul><ul><ul><li>Customer relationship management </li></ul></ul><ul><ul><li>Project management </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Word processing and many others </li></ul></ul>APPLICATION SOFTWARE
  53. 53. APPLICATION SOFTWARE <ul><li>Personal productivity software - used to perform personal tasks such as writing a memo, creating a graph, or creating a slide presentation </li></ul><ul><li>Examples: </li></ul><ul><ul><li>Microsoft Word </li></ul></ul><ul><ul><li>Microsoft Excel </li></ul></ul><ul><ul><li>Internet Explorer </li></ul></ul>
  54. 54. APPLICATION SOFTWARE <ul><li>Vertical market software - application software that is unique to a particular industry </li></ul><ul><ul><li>Patient-scheduling software </li></ul></ul><ul><ul><li>Nursing allocation software </li></ul></ul><ul><li>Horizontal market software - general enough to be suitable for use in a variety of industries </li></ul><ul><ul><li>Inventory management software </li></ul></ul><ul><ul><li>Payroll software </li></ul></ul>
  55. 55. Generations of Application Software <ul><li>Machine Language </li></ul><ul><ul><li>Programs were written using 1’s and 0’s </li></ul></ul><ul><li>Assembly Language </li></ul><ul><ul><li>Written for a specific machine, used commands instead of 1’s and 0’s </li></ul></ul><ul><li>Third and Fourth Generation Languages </li></ul><ul><ul><li>Written with regular words using sentence-like structure, users can write their own applications (COBOL, FORTRAN) </li></ul></ul><ul><li>Query Language and Natural Language </li></ul><ul><ul><li>Almost no programming skills required (ASK JEEVES) </li></ul></ul>
  56. 56. 3 rd Generation Languages <ul><li>Fortran Mathematical Formulas </li></ul><ul><li>COBOL Business Applications </li></ul><ul><li>BASIC teaching language </li></ul><ul><li>PL/1 general purpose language </li></ul><ul><li>Pascal teaching language </li></ul><ul><li>C portable, microcomputers </li></ul><ul><li>Lisp/Prolog Artificial Intelligence </li></ul>
  57. 57. Assembly Language FORTRAN Language COBOL Language
  58. 58. Fourth Generation Languages <ul><li>allows end-users to develop applications on their own quickly </li></ul><ul><li>offers dramatic productivity gains </li></ul><ul><ul><li>Internet Explorer </li></ul></ul><ul><ul><li>SAS </li></ul></ul><ul><ul><li>SPSS </li></ul></ul><ul><ul><li>SAP </li></ul></ul><ul><ul><li>FOCUS </li></ul></ul><ul><ul><li>Front Page </li></ul></ul><ul><ul><li>Word Perfect </li></ul></ul>
  59. 59. Software Tips <ul><li>Make sure your hardware system has the capacity to handle the software. </li></ul><ul><li>Make sure you are buying the most recent version. </li></ul><ul><li>Determine what kind of support is offered. </li></ul><ul><li>For non-standard software ask for references. </li></ul><ul><li>Whenever possible buy rather than develop. </li></ul><ul><li>Find out if the current data and documents are easily transferable to the new system. </li></ul>
  60. 60. SYSTEMS APPROACH <ul><li>The systems approach assumes that all businesses comprises of interdependent parts that can only be understood by reference to the whole. As such, a business may be analysed in terms of inputs, processes and outputs. </li></ul><ul><li>Reductionism </li></ul><ul><li>Reductionism is an approach to building descriptions of systems out of the descriptions of the subsystems that a system is composed of, and ignoring the relationships between them. </li></ul>
  61. 61. The Systems thinking <ul><li>incorporates several principles: </li></ul><ul><li>Interdependence of objects and their attributes - independent elements can never constitute a system </li></ul><ul><li>Holism - emergent properties not possible to detect by analysis should be possible to define by a holistic approach </li></ul><ul><li>Goal seeking - systemic interaction must result in some goal or final state </li></ul><ul><li>Inputs and Outputs - in a closed system inputs are determined once and constant; in an open system additional inputs are admitted from the environment </li></ul><ul><li>Transformation of inputs into outputs - this is the process by which the goals are obtained </li></ul><ul><li>Entropy - the amount of disorder or randomness present in any system </li></ul><ul><li>Regulation - a method of feedback is necessary for the system to operate predictably </li></ul><ul><li>Hierarchy - complex wholes are made up of smaller subsystems </li></ul><ul><li>Differentiation - specialized units perform specialized functions </li></ul>
  63. 63. STRATEGIC INFORMATION SYSTEM <ul><li>Definition: Computer systems at any level of an organization that change the goals, processes, products, services, or environmental relationships to help the organization gain a competitive advantage. </li></ul><ul><li>Strategic information systems profoundly alter the way a firm conducts its business or the very business of the firm itself. </li></ul>
  65. 65. BUSINESS LEVEL STRATEGY & IT <ul><li>“ How can we compete effectively in this particular market?” </li></ul><ul><li>The most common generic strategies at this level are: </li></ul><ul><ul><li>To become the low-cost producer </li></ul></ul><ul><ul><li>To differentiate your product or service </li></ul></ul><ul><ul><li>To change the scope of competition by either enlarging the market or narrowing the market </li></ul></ul>
  66. 66. BUSINESS LEVEL STRATEGY & IT <ul><li>At the business level the most common analytic tool is value chain analysis. </li></ul><ul><li>Value chain model: Model that highlights the primary or support activities that add a margin of value to a firm’s products or services where information systems can best be applied to achieve a competitive advantage. </li></ul>
  67. 67. BUSINESS LEVEL STRATEGY & IT <ul><li>Primary activities are most directly related to the production and distribution of the firm’s products and services that create value for the customer. </li></ul><ul><li>Primary activities include inbound logistics, operations, outbound logistics, sales and marketing, and service. </li></ul>
  68. 68. BUSINESS LEVEL STRATEGY & IT <ul><li>Support activities make the delivery of the primary activities of a firm possible and consist of organization infrastructure (administration and management), human resources (employee recruiting, hiring, and training), technology (improving products and the production process), and procurement (purchasing input). </li></ul>
  69. 69. BUSINESS LEVEL STRATEGY & IT <ul><li>Organizations have competitive advantage when they provide more value to their customers or when they provide the same value to customers at a lower price. </li></ul><ul><li>Strategic information systems could be developed to make each of the value activities more cost-effective. </li></ul>
  70. 70. BUSINESS LEVEL STRATEGY & IT <ul><li>Firms can use information systems to create unique new products and services that can be easily distinguished from those of competitors. </li></ul><ul><li>Product differentiation: Competitive strategy for creating brand loyalty by developing new and unique products and services that are not easily duplicated by competitors. </li></ul><ul><li>Examples: banks provide on-line banking service, Dell sells custom-tailored PC. </li></ul>
  71. 71. BUSINESS LEVEL STRATEGY & IT <ul><li>Focused differentiation: Competitive strategy for developing new market niches for specialized products or services where a business can compete in the target area better than its competitors. </li></ul><ul><li>Information systems enable companies to finely analyze customer buying patterns, tastes, and preferences so that they efficiently pitch advertising and marketing campaigns to smaller and smaller target markets. </li></ul>
  72. 72. BUSINESS LEVEL STRATEGY & IT <ul><li>Data mining: Analysis of large pools of data to find patterns and rules that can be used to guide decision making and predict future behavior. </li></ul><ul><li>The cost of acquiring a new customer has been estimated to be five times that of retaining an existing customer. By carefully examining transactions of customer purchases and activities, firms can identify profitable customers and win more of their business. </li></ul>
  73. 73. BUSINESS LEVEL STRATEGY & IT <ul><li>Supply chain management: Integration of supplier, distributor, and customer logistics requirements into one cohesive process. </li></ul><ul><li>Supply chain: A collection of physical entities, such as manufacturing plants, distribution centers, conveyances, retail outlets, people, and information, which are linked together into processes supplying goods or services from source through consumption. </li></ul>
  74. 74. BUSINESS LEVEL STRATEGY & IT <ul><li>To manage the supply chain, a company tries to eliminate delays and cut the amount of resources tied up along the way. </li></ul><ul><li>Information systems make efficient supply chain management possible by integrating demand planning, forecasting, materials requisition, order processing, inventory allocation, order fulfillment, transportation services, receiving, invoicing, and payment. </li></ul>
  76. 76. FIRM LEVEL STRATEGY & IT <ul><li>“ How can the overall performance of these business units be achieved?” </li></ul><ul><li>“ How can information technology contribute?” </li></ul><ul><li>Synergies: When outputs of some units can be used as inputs to other units, or two organizations can pool markets and expertise, these relationships can lower costs and generate profits. </li></ul><ul><li>One use of IT is to tie together the operations of disparate business units so that they can act as a whole. </li></ul>
  77. 77. FIRM LEVEL STRATEGY & IT <ul><li>Core competency: An activity at which a firm is a world-class leader. </li></ul><ul><li>A core competency relies on knowledge that is gained over many years of experience (embedded knowledge) and a first-class research organization or just key people who follow the literature and stay abreast of new external knowledge (tacit knowledge). </li></ul><ul><li>Any system that encourages the sharing of knowledge across business units enhances competency. </li></ul>
  78. 78. INDUSTRY LEVEL STRATEGY & IT <ul><li>“ How and when should we compete as opposed to cooperate with others in the industry?” </li></ul><ul><li>Firms can cooperate to develop industry standards in a number of areas; they can cooperate by working together to build customer awareness, and to work collectively with suppliers to lower costs. </li></ul>
  79. 79. INDUSTRY LEVEL STRATEGY & IT <ul><li>Information partnership: Cooperative alliance formed between two corporations for the purpose of sharing information to gain strategic advantage. </li></ul><ul><li>Such partnerships help firms gain access to new customers, creating new opportunities for cross-selling and targeting products. They can share investments in computer hardware and software. </li></ul><ul><li>At industry level, two analytic models are used: the competitive forces model and network economics. </li></ul>
  80. 80. INDUSTRY LEVEL STRATEGY & IT <ul><li>Competitive forces model: Model used to describe the interaction of external influences, specifically threats and opportunities, that affect an organization’s strategy and ability to compete. </li></ul>
  81. 81. MANAGING STRATEGIC TRANSITIONS <ul><li>Strategic transitions: A movement from one level of sociotechnical system to another. Often required when adopting strategic systems that demand changes in the social and technical elements of an organization. </li></ul><ul><li>As companies move to make information systems part of the overall corporate strategy, their internal structure must also change to reflect these new development. </li></ul>
  82. 82. Information Systems
  83. 83. Information <ul><li>Information is an organizational resource which must be managed as carefully as other resources </li></ul><ul><li>Costs are associated with information processing </li></ul><ul><li>Information processing must be managed to take full advantage of its potential </li></ul>
  85. 85. Categories <ul><li>Eight categories of Information systems: </li></ul><ul><ul><ul><li>Transaction processing systems (TPS) </li></ul></ul></ul><ul><ul><ul><li>Office automation systems (OAS) </li></ul></ul></ul><ul><ul><ul><li>Knowledge work systems (KWS) </li></ul></ul></ul><ul><ul><ul><li>Management information systems (MIS) </li></ul></ul></ul><ul><ul><ul><li>Decision support systems (DSS) </li></ul></ul></ul><ul><ul><ul><li>Expert systems (ES) </li></ul></ul></ul><ul><ul><ul><li>Group decision support systems (GDSS) </li></ul></ul></ul><ul><ul><ul><li>Executive support systems (EES) </li></ul></ul></ul>
  86. 86. Level of Categories
  87. 87. Transaction Processing Systems (TPS) <ul><li>TPS are computerized information systems developed to process large amount of data for routine business transactions </li></ul><ul><li>TPS reduces the time once required to perform the task manually </li></ul><ul><li>TPS permits the organization to interact with external environment </li></ul><ul><li>Example: Inventory or Payroll system </li></ul>
  88. 88. Office Automation Systems (OAS) and Knowledge Work Systems (KWS) <ul><li>Office Automation Systems (OAS): </li></ul><ul><ul><li>Includes analysis of information so as to transform data or manipulate it in some way before sharing or formally disseminating it </li></ul></ul><ul><ul><li>Example: Word processing, spreadsheets, desktop publishing, electronic scheduling, communication through voice email, email and voice conference etc. </li></ul></ul><ul><li>Knowledge Work Systems (KWS): </li></ul><ul><ul><li>Supports professionals (scientists, engineers, doctors) by aiding them to create new knowledge </li></ul></ul><ul><ul><li>Example: Scientific analysis </li></ul></ul>
  89. 89. Management Information Systems (MIS) <ul><li>MIS supports broader spectrum of organizational tasks than TPS, including decision analysis and decision making </li></ul><ul><li>MIS users share a common database to access information </li></ul><ul><li>MIS outputs information that is used in decision making </li></ul><ul><li>Example: Account management system of Internet users </li></ul>
  90. 90. Decision Support systems (DSS) <ul><li>DSS is similar to the traditional MIS because they both depend on a database as a source of data </li></ul><ul><li>Again, DSS departs from MIS in that DSS emphasizes the support of decision making in all its phases </li></ul><ul><li>Example: Production increase decision by trend analysis </li></ul>
  91. 91. Expert Systems <ul><li>Expert system is a very special class of information system which is capable of generating solutions to problems with the aid of Artificial Intelligence (AI) </li></ul><ul><li>An expert system (also called a knowledge based system) uses the knowledge of an expert for solving a particular problem </li></ul><ul><li>Example: News Categorization software </li></ul>
  92. 92. Group Decision Support Systems (GDSS) and Computer Supported Collaborative Work Systems (CSCWS) <ul><li>Group Decision Support Systems </li></ul><ul><ul><li>GDSS are intended to bring a group together to solve a problem with the help of various support such as polling, questionnaires, brainstorming etc. </li></ul></ul><ul><li>Computer Supported Collaborative Work Systems </li></ul><ul><ul><li>CDCWS is a more general term of GDSS </li></ul></ul><ul><ul><li>CSCWS may include software support called “ groupware ” for team collaboration via network computers </li></ul></ul><ul><li>Example: video conferencing and web survey system </li></ul>
  93. 93. Executive Support Systems (ESS) <ul><li>It helps executives to make decisions on strategic level </li></ul><ul><li>It may provide graphical representation and communication support at board meeting required to make strategic decision </li></ul><ul><li>Example: New product launching decision </li></ul>
  94. 94. Integrating New Technologies <ul><li>New technologies are being integrated into traditional systems </li></ul><ul><ul><ul><li>E-commerce uses the Web to perform business activities </li></ul></ul></ul><ul><ul><ul><li>Enterprise Resource Planning (ERP) has the goal of integrating many different information systems within the corporation </li></ul></ul></ul><ul><ul><ul><li>Wireless and handheld devices, including mobile commerce (m-commerce) </li></ul></ul></ul><ul><ul><ul><li>Open source software </li></ul></ul></ul>
  95. 95. Integrating New Technologies
  96. 96. E-Commerce Application and Web Systems <ul><li>Many businesses has found The Internet as </li></ul><ul><li>their most favored way to pursue business </li></ul><ul><li>growth because of the following advantages: </li></ul><ul><ul><li>Increase awareness of the availability of the service, product, industry, person, or group </li></ul></ul><ul><ul><li>24-hour access for users </li></ul></ul><ul><ul><li>Standardizing the design of interface </li></ul></ul><ul><ul><li>Creating a global system rather than remain local </li></ul></ul>
  97. 97. Enterprise Resource Planning (ERP) Systems <ul><li>Many organizations predicts potential benefits from the integration of many information systems existing on different management levels. </li></ul><ul><li>ERP systems are designed to perform this integration </li></ul><ul><li>Example: SAP, PeopleSoft and packages from Oracle </li></ul>
  98. 98. Systems for Wireless and Handheld Devices <ul><li>System analyst may be asked to design standard or wireless communication network that integrate voice, video and email into organizational intranet </li></ul><ul><li>System analyst may also be asked to develop intelligent agents to assist the user of PDA or cell phone </li></ul><ul><li>Wireless communication is referred as m-commerce (mobile commerce) </li></ul>
  99. 99. TPS, MIS, DSS, and AI/ES <ul><li>Hierarchy: </li></ul>AI/ES DSS MIS TPS Information Data Less More Less More More More Less Less Routine Decision support Input & output Sophistication & complexity of processing & analysis
  100. 100. Transactions <ul><li>Transactions… </li></ul><ul><ul><ul><li>Basic business operations such as customer orders, purchase orders, receipts, time cards, invoices, and payroll checks in an organization </li></ul></ul></ul><ul><li>Transaction processing systems (TPS) </li></ul><ul><ul><ul><li>Perform routine operations and serve as a foundation for other systems </li></ul></ul></ul>
  101. 101. Batch vs. On-Line Transaction Processing <ul><li>Two types of TPS: </li></ul><ul><ul><li>Batch processing </li></ul></ul><ul><ul><ul><li>A system whereby business transactions are accumulated over a period of time and prepared for processing as a single unit or batch </li></ul></ul></ul><ul><ul><li>On-line transaction processing (OLTP) </li></ul></ul><ul><ul><ul><li>A system whereby each transaction is processed immediately, without the delay of accumulating transactions into a batch </li></ul></ul></ul>
  102. 102. Batch Schematic Data entry of accumulated transactions Input (batched) Output
  103. 103. On-line Schematic Output Terminal Terminal Terminal Terminal Terminal Terminal Immediate processing of each transaction
  104. 104. Objectives of TPS <ul><ul><li>Process data generated by and about transactions </li></ul></ul><ul><ul><li>Maintain a high degree of accuracy </li></ul></ul><ul><ul><li>Ensure data and information integrity and accuracy </li></ul></ul><ul><ul><li>Produce timely documents and reports </li></ul></ul><ul><ul><li>Increase labour efficiency </li></ul></ul><ul><ul><li>Help provide increased and enhanced service </li></ul></ul><ul><ul><li>Help build and maintain customer loyalty </li></ul></ul><ul><ul><li>Achieve competitive advantage </li></ul></ul>
  105. 105. Simplified Overview of a Transaction Processing System Schematic
  106. 106. Data entry & input Processing Documents & reports Database <ul><li>Internally generated transactions: </li></ul><ul><li>shipped orders </li></ul><ul><li>purchase orders </li></ul><ul><li>employee time cards </li></ul><ul><li>Externally generated transactions: </li></ul><ul><li>customer orders </li></ul><ul><li>vendor invoices </li></ul><ul><li>customer payments </li></ul><ul><li>Database update: </li></ul><ul><li>customer orders </li></ul><ul><li>inventory </li></ul><ul><li>purchase orders </li></ul><ul><li>customers </li></ul><ul><li>suppliers </li></ul><ul><li>Documents: </li></ul><ul><li>pick list </li></ul><ul><li>cheques to vendors </li></ul><ul><li>receiving notices </li></ul><ul><li>paycheques </li></ul><ul><li>Operational reports: </li></ul><ul><li>finished product inventory status </li></ul><ul><li>raw materials; packing materials; spare parts; inventory status </li></ul>
  107. 107. Data Processing Activities Common to TPSs <ul><li>A transaction processing cycle </li></ul><ul><ul><ul><li>Data collection </li></ul></ul></ul><ul><ul><ul><li>Data editing </li></ul></ul></ul><ul><ul><ul><li>Data correction </li></ul></ul></ul><ul><ul><ul><li>Data manipulation </li></ul></ul></ul><ul><ul><ul><li>Data storage </li></ul></ul></ul><ul><ul><ul><li>Document production </li></ul></ul></ul>Schematic
  108. 108. Data collection Data edit Data manipulation Data storage Document production Data correction Original data
  109. 109. Source Data Automation <ul><li>Source data automation </li></ul><ul><ul><ul><li>The process of capturing data at its source with minimal manual effort </li></ul></ul></ul><ul><ul><ul><li>Data are entered directly into the computer </li></ul></ul></ul>
  110. 110. Point-of-Sale Transaction Processing System Customer’s receipt Inventory database Management information system Exception report Purchases database Scanner Point-of-sale transaction processing system Item database UPC and quantity Item, quantity, date, time, price UPC Price UPC Quantity, Date, time
  111. 111. Control and Management Issues <ul><li>Business resumption planning </li></ul><ul><ul><ul><li>The process of anticipating and providing for disasters. </li></ul></ul></ul><ul><li>Disaster recovery </li></ul><ul><ul><ul><li>The implementation of the business resumption plan. </li></ul></ul></ul><ul><li>Transaction processing system audit </li></ul><ul><ul><ul><li>An examination of the TPS in an attempt to answer three basic questions </li></ul></ul></ul><ul><ul><ul><ul><li>Does the system meet the business need? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What procedures and controls have been established? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Are the procedures and controls being properly used? </li></ul></ul></ul></ul>
  112. 112. Traditional TPS – Order Processing <ul><li>Order processing </li></ul><ul><ul><li>Processing an order from entry to delivery, including traditional accounting transactions </li></ul></ul>Schematic
  113. 113. Customer Order entry/ sales configuration Shipment planning Routing Scheduling Shipment execution Invoicing Finished product inventory Customer order in person or via mail, phone, EDI, internet Orders Planned shipments Planned shipments & routes Pick list Shipped orders Inventory status Products Invoice
  114. 114. Order Processing Support Systems - Sales Configuration <ul><li>Sales configuration </li></ul><ul><ul><ul><li>Ensures that products and services ordered are sufficient to accomplish customer’s objectives and will work well together </li></ul></ul></ul>
  115. 115. Order Processing Support Systems - Shipment Planning <ul><li>Shipment planning </li></ul><ul><ul><ul><li>A system that determines which open orders will be filled and from which location they will be shipped </li></ul></ul></ul><ul><ul><ul><li>E.g., (from Figure 8.9) </li></ul></ul></ul>LOC LINK ITEM NUMBER DESCRIPTION ORDERED SHIPPED BO 8 105 10 L1L16028 20 S8276 30 S8279 40 FASENTING TOOL STAPLE ¾ INCH STAPLE 1 INCH SHIPPING CHARGE 3 15 15 EACH CASE CASE 3 15 12 3
  116. 116. Order Processing Support Systems - Shipment Execution <ul><li>Shipment execution </li></ul><ul><ul><ul><li>A system that coordinates the outflow of all products and goods from the organization, with the objective of delivering quality products on time to customers </li></ul></ul></ul>
  117. 117. Order Processing Support Systems - Inventory Control <ul><li>Inventory control </li></ul><ul><ul><ul><li>A system that updates the computerized inventory records to reflect the exact quantity on hand of each stock keeping unit </li></ul></ul></ul><ul><ul><ul><li>Status reports </li></ul></ul></ul><ul><ul><ul><ul><li>Summarize all inventory items in stock, or shipped over a specified period of time </li></ul></ul></ul></ul><ul><ul><ul><li>E.g., see Figure 8.10 </li></ul></ul></ul>
  118. 118. Order Processing Support Systems - Invoicing <ul><li>Invoicing </li></ul><ul><ul><ul><li>Generates customer invoices based on records received from the shipment execution TPS </li></ul></ul></ul><ul><ul><ul><li>E.g., see Figure 8.11 </li></ul></ul></ul>
  119. 119. Order Processing Support Systems - Customer Interaction System <ul><li>Customer interaction </li></ul><ul><ul><ul><li>A system that monitors and tracks each customer interaction with the company </li></ul></ul></ul>
  120. 120. Request for proposal Sale Problem, idea, request for information Other contacts Market research Sales Marketing Quality control Product development Customer interaction system Customer
  121. 121. Order Processing Support Systems - Routing and Scheduling <ul><li>Routing </li></ul><ul><ul><ul><li>A system that determines the best way to get goods and products from one location to another </li></ul></ul></ul><ul><li>Scheduling </li></ul><ul><ul><ul><li>A system that determines the best time to deliver goods and services </li></ul></ul></ul>
  122. 122. Purchasing System Schematic
  123. 123. Raw materials Packing materials Spare parts Inventory control Purchase order processing Receiving Accounts payable Employees Supplier Inventory control status report Purchase order Material Cheque Invoice Receiving notice Purchase order Purchase order request
  124. 124. Purchasing System <ul><li>Inventory control </li></ul><ul><ul><ul><li>Maintains stock of items such as raw materials, packing materials, spare parts, and supplies </li></ul></ul></ul><ul><li>Purchase order (P.O.) processing </li></ul><ul><ul><ul><li>A system that helps purchasing department complete transactions quickly and efficiently </li></ul></ul></ul><ul><li>Receiving </li></ul><ul><ul><ul><li>A system that creates a record of expected and actual receipts </li></ul></ul></ul><ul><ul><ul><li>Reconciles purchase orders with what is actually received </li></ul></ul></ul><ul><li>Accounts payable </li></ul><ul><ul><ul><li>A system that increases an organization’s control over purchasing, improves cash flow </li></ul></ul></ul><ul><ul><ul><li>increases profitability, and provides more effective management of current liabilities </li></ul></ul></ul>
  125. 125. Accounting System <ul><li>Accounting systems </li></ul><ul><ul><li>Consist of… </li></ul></ul><ul><ul><ul><li>Budget </li></ul></ul></ul><ul><ul><ul><li>Accounts receivable </li></ul></ul></ul><ul><ul><ul><li>Accounts payable </li></ul></ul></ul><ul><ul><ul><li>Payroll </li></ul></ul></ul><ul><ul><ul><li>Asset management </li></ul></ul></ul><ul><ul><ul><li>General ledger </li></ul></ul></ul>
  126. 126. Financial Systems Schematic
  127. 127. Customer Accounts receivable Asset management Accounts payable Payroll Budget Customer General ledger Time cards Paycheques Labour costs Expense transactions Asset depreciation Amounts owed by company Amounts paid by company Cost of assets Payments Amounts owed by customers Amounts paid by customers
  128. 128. Financial Systems - Accounts Receivable <ul><li>Accounts receivable </li></ul><ul><ul><ul><li>A system that manages the cash flow of the company by keeping track of the money owed the company on charges for goods sold and services performed </li></ul></ul></ul>
  129. 129. Financial Systems – Accounts Receivable <ul><li>Accounts receivable aging report </li></ul><ul><ul><ul><li>Tells managers what bills are overdue, either customer by customer or in a summary format </li></ul></ul></ul>
  130. 130. Financial Systems - Payroll <ul><li>Payroll… </li></ul><ul><ul><ul><li>Generates payroll checks and stubs, as well as W-2 statements at the end of the year for tax purposes </li></ul></ul></ul>
  131. 131. Financial Systems - Payroll <ul><li>Payroll journal </li></ul><ul><ul><ul><li>Helps managers monitor total payroll costs for an organization and the impact of those costs on cash flow </li></ul></ul></ul>
  132. 132. Financial Systems - Asset Management <ul><li>Asset management transaction processing system </li></ul><ul><ul><ul><li>A system that controls investments in capital equipment and manages depreciation for maximum tax benefits </li></ul></ul></ul>
  133. 133. Financial Systems - General Ledger
  134. 134. Enterprise Resource Planning (ERP) <ul><li>ERP </li></ul><ul><ul><ul><li>Real-time monitoring of business functions </li></ul></ul></ul><ul><li>Advantages </li></ul><ul><ul><ul><li>Eliminate costly, inflexible legacy systems </li></ul></ul></ul><ul><ul><ul><li>Provide improved work processes </li></ul></ul></ul><ul><ul><ul><li>Provide access to data for operational decision making </li></ul></ul></ul><ul><ul><ul><li>Upgrading technology infrastrucutre </li></ul></ul></ul><ul><li>Disadvantages </li></ul><ul><ul><ul><li>Time consuming, difficult, expensive to implement </li></ul></ul></ul><ul><ul><ul><li>Make radical changes in how a company operates </li></ul></ul></ul><ul><ul><ul><li>Lack of vendor responsiveness in light of high demand </li></ul></ul></ul>
  135. 135. ERP Examples Software Vendor Name of Product Avalon Software Avalon CIM MRG/PRO Oracle Oracle Manufacturing SAP America SAP R/3 Baan Triton PeopleSoft PeopleSoft J.D. Edwards World
  136. 136. Example of an ERP System - SAP/R3 <ul><ul><li>Clients in the SAP system </li></ul></ul><ul><ul><li>Application servers in the SAP system </li></ul></ul><ul><ul><li>Business application programming interfaces (BAPIs) </li></ul></ul><ul><ul><li>Database server in the SAP systems </li></ul></ul><ul><ul><li>Objects in the SAP system </li></ul></ul><ul><ul><li>Repository </li></ul></ul><ul><ul><li>Tables </li></ul></ul>
  137. 137. SAP Three-Tier Client/Server Architecture Client desktop computers Application servers Database server
  138. 138. DSS
  139. 139. Computer-Based Decision Support <ul><ul><li>Purpose of a DSS </li></ul></ul><ul><ul><ul><li>Improve decision making ability of managers (and operating personnel) by allowing more or better decisions within constraints of cognitive, time, economic limits) </li></ul></ul></ul><ul><ul><ul><li>Increase productivity of decision makers </li></ul></ul></ul>
  140. 140. Computer-Based Decision Support <ul><ul><ul><li>Supplement one or more of a decision maker’s abilities. For example: </li></ul></ul></ul><ul><ul><ul><ul><li>knowledge collection (what is?) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>formulation (of potential plans for analysis or action) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>analysis (what if, what about, what follows) knowledge derivation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>problem recognition (finding overall or subproblems) </li></ul></ul></ul></ul><ul><ul><ul><li>Facilitate one or more of the decision-making phases </li></ul></ul></ul><ul><ul><ul><ul><li>intelligence (e.g., provide relevant information) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>design (e.g., identify or analyze alternatives) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>choice (e.g., advice about which alternative to choose) </li></ul></ul></ul></ul>
  141. 141. Computer-Based Decision Support <ul><ul><ul><li>Facilitate problem solving flows </li></ul></ul></ul><ul><ul><ul><ul><li>identify problems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>problem reduction </li></ul></ul></ul></ul><ul><ul><ul><ul><li>problem solving </li></ul></ul></ul></ul><ul><ul><ul><ul><li>combine problem solutions </li></ul></ul></ul></ul><ul><ul><ul><li>Aid decision maker in addressing unstructured or semi-structured decisions </li></ul></ul></ul>
  142. 142. Computer-Based Decision Support <ul><ul><ul><li>Enhance a decision maker’s knowledge management competence, supplementing human KM skills with computer-based KM capabilities </li></ul></ul></ul><ul><ul><li>DSSs in historical perspective </li></ul></ul><ul><ul><ul><li>Another way to begin to appreciate DSS characteristics is to compare/contrast them with traits of other kinds of business computing systems </li></ul></ul></ul><ul><ul><ul><li>Each serves a different purpose in managing an organization’s knowledge resources </li></ul></ul></ul>
  143. 143. Computer-Based Decision Support <ul><ul><ul><ul><li>decision support limited by </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>predefined reports </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>periodic reports </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>descriptive knowledge only </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>relevant information in MIS reports incomplete, hard to dig out, unfocused, difficult to grasp, in need of processing, unavailable when needed </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Decision support systems </li></ul></ul></ul><ul><ul><ul><ul><li>some DSS characteristics </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>includes descriptive and possibly other types of knowledge </li></ul></ul></ul></ul></ul>
  144. 144. Computer-Based Decision Support <ul><ul><ul><ul><ul><li>has ability to acquire/maintain these types </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>has ability to present knowledge on ad hoc basis in customized ways (as well as in standard reports) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>has ability to select any desired subset of stored knowledge for presentation or derivation during problem recognition/solving </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>can interact directly with decision maker who has flexibility in choice/sequencing of knowledge management activities </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>there are variations with respect to these five characteristics </li></ul></ul></ul></ul>
  145. 145. Computer-Based Decision Support <ul><ul><ul><ul><li>DSS notion arose in early 1970s and by 1990s was in widespread practice </li></ul></ul></ul></ul><ul><ul><ul><ul><li>advances spurred by microcomputers, spreadsheet implementations, management science packages, ad hoc query interfaces </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>fostered computer literacy </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>do-it-yourself creation of DSSs </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>solvers for complex, quantitative problems </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>non-procedural, selective, ad hoc retrieval </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>technological developments lead to continuing advances </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>computer networks </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>artificial intelligence (e.g., expert systems) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>direct manipulation and multimedia </li></ul></ul></ul></ul></ul>
  146. 146. Computer-Based Decision Support <ul><ul><ul><li>Task support systems </li></ul></ul></ul><ul><ul><ul><ul><li>include management support systems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>which include DSSs </li></ul></ul></ul></ul>
  147. 147. Computer-Based Decision Support <ul><ul><li>DSS benefits (potential) </li></ul></ul><ul><ul><ul><li> - depend on nature of DSS, the decision maker </li></ul></ul></ul><ul><ul><ul><li>(DM), and decision context </li></ul></ul></ul><ul><ul><ul><li> - a good fit among these is important </li></ul></ul></ul><ul><ul><ul><li>Augment DM’s innate knowledge handling abilities </li></ul></ul></ul><ul><ul><ul><li>DM can have DSS solve problems that DM alone would not even attempt or that would consume great DM time due to their complexity </li></ul></ul></ul><ul><ul><ul><li>Even for relatively simple problems, DSS may be able to reach solutions faster and/or more reliably than DM </li></ul></ul></ul>
  148. 148. Computer-Based Decision Support <ul><ul><ul><li>Even though a DSS might be unable to solve a problem facing DM, it could be used to stimulate the DM’s thoughts about the problems (e.g., exploratory retrieval; analysis; advice; solving”similar” problem may trigger insight about present problem) </li></ul></ul></ul><ul><ul><ul><li>Activity of constructing DSS (with DM involvement) may reveal new ways of thinking about decision domain and partially formalize aspects of decision making </li></ul></ul></ul>
  149. 149. Computer-Based Decision Support <ul><ul><ul><li>Provide more compelling evidence to justify DM’s position (e.g., aid in securing agreement) </li></ul></ul></ul><ul><ul><ul><li>Competitive advantage to organization due to enhanced internal productivity </li></ul></ul></ul><ul><ul><li>DSS Limitations </li></ul></ul><ul><ul><ul><li>unable to replicate some innate human KM skills/talents </li></ul></ul></ul>
  150. 150. Computer-Based Decision Support <ul><ul><ul><li>may be too specifc (i.e., many DSSs needed in course of working on a single decision - how to coordinate them?) </li></ul></ul></ul><ul><ul><ul><li>may not match DM’s mode of expression or perception </li></ul></ul></ul><ul><ul><ul><li>cannot overcome a faulty DM </li></ul></ul></ul><ul><ul><ul><li>constrained by the knowledge it possesses (to what extent can a DSS learn and is its knowledge at any moment “sufficient” for DM’s needs?) </li></ul></ul></ul><ul><ul><ul><li>over dependence dangers </li></ul></ul></ul>
  151. 151. Computer-Based Decision Support <ul><ul><ul><li>Explain various special cases of the generic DSS framework, including: </li></ul></ul></ul><ul><ul><ul><ul><li>text-oriented DSSs, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>database-oriented DSSs, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>spreadsheet-oriented DSSs, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>solver-oriented DSSs, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>rule-oriented DSSs, and </li></ul></ul></ul></ul><ul><ul><ul><ul><li>compound DSSs </li></ul></ul></ul></ul>
  152. 152. Computer-Based Decision Support <ul><ul><li>Generic framework for DSSs </li></ul></ul><ul><ul><ul><li>systematic study and research of DSS topics can benefit from a framework that identifies fundamental DSS constituents and their relationships </li></ul></ul></ul><ul><ul><ul><li>ideally, the framework should not be so detailed/restrictive that it precludes consideration of some DSSs </li></ul></ul></ul>
  153. 153. Computer-Based Decision Support <ul><ul><ul><li>DSS defined in terms of 4 systems </li></ul></ul></ul><ul><ul><ul><ul><li>Language System (LS) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Presentation (PS) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Knowledge System (KS) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Problem Processing System (PPS) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>the first 3 are systems of knowledge representation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>the PPS is a software system that uses these representations in recognizing/solving problems </li></ul></ul></ul></ul>
  154. 154. Computer-Based Decision Support <ul><ul><ul><li>LS </li></ul></ul></ul><ul><ul><ul><ul><li>is not software </li></ul></ul></ul></ul><ul><ul><ul><ul><li>is representational system composed of all requests user can make </li></ul></ul></ul></ul><ul><ul><ul><ul><li>to have DSS solve a problem, user chooses/states one of the LS elements </li></ul></ul></ul></ul><ul><ul><ul><ul><li>can be command, menu, mouse, natural language, fill-in-blank, direct manipulation oriented </li></ul></ul></ul></ul>
  155. 155. Computer-Based Decision Support <ul><ul><ul><li>PS </li></ul></ul></ul><ul><ul><ul><ul><li>is not a piece of software </li></ul></ul></ul></ul><ul><ul><ul><ul><li>is representational system comprised of all responses the DSS can issue </li></ul></ul></ul></ul><ul><ul><ul><ul><li>the PPS determines which PS element is to be used for a response </li></ul></ul></ul></ul><ul><ul><ul><ul><li>can be tabular, textual, graphical, etc. </li></ul></ul></ul></ul>
  156. 156. Computer-Based Decision Support <ul><ul><ul><li>KS </li></ul></ul></ul><ul><ul><ul><ul><li>is not a piece of software </li></ul></ul></ul></ul><ul><ul><ul><ul><li>is representational system containing all readily changeable knowledge available to the DSS for use in problem solving and comunicating </li></ul></ul></ul></ul>
  157. 157. Computer-Based Decision Support <ul><ul><ul><ul><li>no type of knowledge is precluded </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- data - domain </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- procedural - user (relational) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- linguistic - self </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- reasoning </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- presentation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>- assimilative </li></ul></ul></ul></ul><ul><ul><ul><ul><li>in principle, any knowledge representation technique is permissible </li></ul></ul></ul></ul>
  158. 158. Computer-Based Decision Support <ul><ul><ul><li>PPS </li></ul></ul></ul><ul><ul><ul><ul><li>is the DSS software that reacts to user requests and drives the problem solving process toward a corresponding response </li></ul></ul></ul></ul><ul><ul><ul><ul><li>it takes an element of the LS and draws on elements of the KS to produce an element of the PS for the user and/or to modify KS contents </li></ul></ul></ul></ul><ul><ul><ul><ul><li>as a practical matter, the PPS must be able to process each knowledge representation held in the KS, act on each element allowed in the LS, and present each PS element </li></ul></ul></ul></ul><ul><ul><ul><ul><li>the framework is indifferent as to LS contents, PS contents, KS contents, and PPS dynamics </li></ul></ul></ul></ul>
  159. 159. Computer-Based Decision Support <ul><ul><li>Specialized frameworks </li></ul></ul><ul><ul><ul><li>each is a special case of the generic framework </li></ul></ul></ul><ul><ul><ul><li>each characterizes a certain class of DSSs by </li></ul></ul></ul><ul><ul><ul><ul><li>restricting KS contents to those allowed by a certain KM technique </li></ul></ul></ul></ul><ul><ul><ul><ul><li>restricting PPS abilities to processing allowed by that technique </li></ul></ul></ul></ul><ul><ul><ul><li>text-oriented DSSs </li></ul></ul></ul><ul><ul><ul><ul><li>KS of textual documents </li></ul></ul></ul></ul><ul><ul><ul><ul><li>PPS accomplishes storage/rcall </li></ul></ul></ul></ul><ul><ul><ul><ul><li>hypertext extension </li></ul></ul></ul></ul>
  160. 160. Computer-Based Decision Support <ul><ul><ul><li>database-oriented DSSs </li></ul></ul></ul><ul><ul><ul><ul><li>KS of structured records (descriptive knowledge) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>PPS comprised of </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>database control system </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>query processing system </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>custom-built processors </li></ul></ul></ul></ul></ul><ul><ul><ul><li>spreadsheet-oriented DSSs </li></ul></ul></ul><ul><ul><ul><ul><li>KS comprised of spreadsheet files (grids of descriptive and procedural knowledge) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>PPS can carry out procedures (e.g., for “what if” analysis) </li></ul></ul></ul></ul>
  161. 161. Computer-Based Decision Support <ul><ul><ul><li>solver-oriented DSSs </li></ul></ul></ul><ul><ul><ul><ul><li>solver - a procedure that can solve any member of a class of problems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>fixed approach </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>solvers are part of PPS </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>set of available solvers fixed and each solver is fixed </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>KS holds data sets used by solvers </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>KS can also hold problem statements and report format descriptions </li></ul></ul></ul></ul></ul>
  162. 162. Computer-Based Decision Support <ul><ul><ul><ul><li>flexible approach </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>solvers are part of the KS (library of solver modules) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>can be modified, deleted, augmented </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>can be executed in sequence to solve a problem </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>KS can also hold data sets, problem statements, report formats, reasoning knowledge to coordinate module executions </li></ul></ul></ul></ul></ul><ul><ul><ul><li>rule-oriented DSS </li></ul></ul></ul><ul><ul><ul><ul><li>KS holds rule sets and state descriptions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>PPS has inference engine for reasoning with rules </li></ul></ul></ul></ul>
  163. 163. Computer-Based Decision Support <ul><ul><ul><li>compound DSSs </li></ul></ul></ul><ul><ul><ul><ul><li>what if DM needs upport offered by multiple KM techniques? </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>use multiple DSSs </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>use single DSS with multiple KM techniques </li></ul></ul></ul></ul></ul>
  164. 164. Computer-Based Decision Support <ul><ul><ul><li>A specialized compound framework a DSS has 3 components </li></ul></ul></ul><ul><ul><ul><ul><ul><li>database (holds data) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>model base (holds procedures) </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>a software system </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>the first two are a special kind of KS </li></ul></ul></ul></ul><ul><ul><ul><ul><li>the latter is a special kind of PPS </li></ul></ul></ul></ul>
  165. 165. Computer-Based Decision Support <ul><ul><li>Software system comprised of </li></ul></ul><ul><ul><ul><li>DBMS </li></ul></ul></ul><ul><ul><ul><li>MBMS(MODEL BASE MANAGEMENT SYSTEM) </li></ul></ul></ul><ul><ul><ul><li>DGMS (dialog generation and management system ) </li></ul></ul></ul>
  166. 166. Computer-Based Decision Support <ul><ul><ul><li>DGMS is software that effectively defines the DSS’s </li></ul></ul></ul><ul><ul><ul><ul><li>action language (what user can do) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>display language (what user sees) </li></ul></ul></ul></ul><ul><ul><ul><li>DBMS is software that allows a database to be </li></ul></ul></ul><ul><ul><ul><ul><li>created (generated and restructured) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>updated </li></ul></ul></ul></ul><ul><ul><ul><ul><li>interrogated </li></ul></ul></ul></ul><ul><ul><ul><li>MBMS is software that allows a model base to be </li></ul></ul></ul><ul><ul><ul><ul><li>created/updated </li></ul></ul></ul></ul><ul><ul><ul><ul><li>used (linking, cataloging, accessing procedures) </li></ul></ul></ul></ul>
  167. 167. Stages of Decision Making <ul><li>Intelligence (in the military sense of gathering information) </li></ul><ul><li>Design (Identifying the alternatives, structuring how the decision will be made) </li></ul><ul><li>Choice (Picking an alternative or making the judgment) </li></ul><ul><li>Implementation and Evaluation also can be added as further stages for the purpose of improvement. </li></ul>
  168. 168. Structured vs Unstructured Decision Stages <ul><li>Each stage can be Structured (automated) or Unstructured </li></ul><ul><li>“ Structured” means that there is an algorithm, mathematical formula, or decision rule to accomplish the entire stage. The algorithm can be implemented manually or it can be computerized, but the steps are so detailed that no little or no human judgment would be needed. </li></ul><ul><li>Any decision stage that is not structured is unstructured </li></ul>
  169. 169. Structured, Semi-structured, and unstructured decisions <ul><li>In a structured decision all three stages are structured </li></ul><ul><li>In a non-structured decision all three stages are unstructured </li></ul><ul><li>A semi-structured decision is one in which part, but not all, of the decision is structured. </li></ul>
  170. 170. Key point: <ul><li>The realm of Decision Support Systems is Semi-Structured and unstructured Decisions…the type of decisions that can benefit from “decision support” but the human decision maker is still involved. </li></ul>
  171. 171. General Categories of DSS <ul><li>Data driven </li></ul><ul><li>Model driven </li></ul><ul><li>Knowledge driven </li></ul><ul><li>Document driven </li></ul><ul><li>Communications driven and group DSS </li></ul><ul><li>Function specific or general DSS </li></ul><ul><li>Web Based </li></ul>
  172. 172. DSS categorized by type of task <ul><li>Choice (pick one of several alternatives) </li></ul><ul><li>Judgment (assessment or prediction) </li></ul><ul><li>Ranking </li></ul><ul><li>More complex problem (has multiple, often interrelated, parts) </li></ul><ul><li>Diagnosis or “scientific discovery” (hypothesis generation and testing) </li></ul><ul><li>Pattern identification, sense-making </li></ul>
  173. 173. The Components of DSS External Data Internal Data Database Component User Interface Component Model Component Communications Component Users
  174. 174. DSS Classification Viewed from three Directions Decision Task Technology Decision Maker(s)
  175. 175. E-Customer Relationship Management
  176. 176. Introduction <ul><li>What keeps customers coming back through the virtual door is the overall quality of the customer experience. </li></ul><ul><ul><li>The cost of marketing to an existing customer is almost 5 times less over the Internet versus attaining a new web customer. </li></ul></ul><ul><li>ECRM solutions will give companies the tools they need to create, maintain & extend competitive advantage in their market spaces. </li></ul>
  177. 177. Benefits <ul><li>Keeping existing customers happy is more profitable than going after new customers. </li></ul><ul><ul><li>The best way to keep one’s existing customers happy is to deliver value to them on their own terms. </li></ul></ul><ul><li>Anderson Consulting found 64% of the difference in return on sales between average and high performing companies is attributable to ECRM performance. </li></ul><ul><li>Improvements in the overall customer experience will lead to greater customer satisfaction and have a positive effect on the company’s profitability. </li></ul>
  178. 178. Increased Customer Loyalty <ul><li>An ECRM system lets a company communicate with its customers using a single & consistent voice. </li></ul><ul><li>ECRM software gives everyone in an organization access to the same transaction history and information about the customer. </li></ul><ul><li>Data allows a firm to focus its time and resources on its most profitable customers. </li></ul><ul><li>One tool that a company can implement in pursuit of customer loyalty is personalization . </li></ul>
  179. 179. More Effective Marketing <ul><li>An ECRM system allows a company to predict the kind of products that a customer is likely to buy as well as the timing of purchases. </li></ul><ul><li>Information helps an organization create more effective and focused marketing/sales campaigns designed to attract the desired customer audience. </li></ul><ul><li>Customer data can be analyzed from multiple perspectives to discover which elements of a marketing campaign had the greatest impact on sales and profitability. </li></ul>
  180. 180. Improved Customer Service & Support <ul><li>An ECRM system provides a single repository of customer information that allows an organization to: </li></ul><ul><ul><li>more accurately receive, update and close orders remotely </li></ul></ul><ul><ul><li>log materials, expenses and time associated with service orders </li></ul></ul><ul><ul><li>view customer service agreements </li></ul></ul><ul><ul><li>search for proven solutions and best practices </li></ul></ul><ul><ul><li>subscribe to product-related information and software patches </li></ul></ul><ul><ul><li>access knowledge tools useful in completing service orders </li></ul></ul>
  181. 181. Greater Efficiency & Cost Reduction <ul><li>Automating customer data mining saves valuable human resources. </li></ul><ul><li>Integrating customer data into a single database allows marketing teams, sales forces and other departments </li></ul><ul><li>to share information and work toward common corporate objectives using the same underlying statistics. </li></ul>
  182. 182. Developing Customer Focused Business Strategies <ul><li>Listen to the customer and try to create opportunities beneficial to the customer and the company. </li></ul><ul><li>Offer customers what they are currently demanding and anticipate what they are likely to demand in the future . </li></ul><ul><li>Achieved by providing a variety of existing access channels for customers and by preparing to provide for future access channels, such as wireless communication. </li></ul>
  183. 183. Retooling Business Functions <ul><li>ECRM will require disruptive organizational change to determine the departments/functions that are servicing the customer and the ones only adding to overhead. </li></ul><ul><li>Changes required during an ECRM implementation are only possible with buy-in from the top levels of management and company-wide accountability of all stakeholders. </li></ul><ul><li>The responsibility of senior management is to ensure that all employees understand the necessity of the changes, how they will benefit from them, and how the changes will enhance their ability to serve customers. </li></ul>
  184. 184. Work Process Re-engineering <ul><li>Departmental role and responsibility changes from retooling business functions will necessitate adopting new work processes . </li></ul><ul><li>A company has 2 choices: </li></ul><ul><ul><li>the traditional step-wise approach </li></ul></ul><ul><ul><li>an integrated one toward improving work efficiency </li></ul></ul><ul><li>In the step-wise approach, departments are treated as separate efficiency entities. </li></ul>
  185. 185. Work Process Re-engineering <ul><li>The integrated approach tends to produce superior results because it recognizes the interdependencies among the company’s multiple functions and departments, and how these create the larger perspective of the entire organization. </li></ul>
  186. 186. Technology Choices <ul><li>Consider the company’s industry, its position in the industry, and which ECRM configurations are good candidates for the company in particular: </li></ul><ul><ul><li>scalability of software </li></ul></ul><ul><ul><li>tool set flexibility for customization </li></ul></ul><ul><ul><li>stability of the existing ECRM application code </li></ul></ul><ul><ul><li>compatibility of ECRM application with legacy and Internet systems </li></ul></ul><ul><ul><li>level of technical support available during and after implementation </li></ul></ul><ul><ul><li>upgradable support </li></ul></ul><ul><ul><li>the availability of additional modules </li></ul></ul>
  187. 187. Technology Choices <ul><li>Compatibility of the proposed ECRM system with a company’s existing ERP system is essential. </li></ul><ul><li>Without integration of ERP and ECRM systems, organizations risk redundancy of data, increased response times and loss of customers due to delays and botched transactions. </li></ul>
  188. 188. Training and Preparation <ul><li>Training of employees should occur before the new ECRM system has been implemented to ensure a seamless transition for customers. </li></ul><ul><li>All employees with access to the system should receive full, appropriate and timely training. </li></ul><ul><li>Training should be an ongoing, managed activity as systems will continuously change and evolve. </li></ul><ul><li>A firm should plan to spend about 5% of its total ECRM implementation budget on training. </li></ul>
  189. 189. Proven ECRM Success <ul><li>Hewlett-Packard </li></ul><ul><ul><li>Paul Horstmeier, New E-marketing Manager </li></ul></ul><ul><ul><ul><li>HP made a muddle of its attempts at e-mail marketing </li></ul></ul></ul><ul><ul><ul><li>Launching separate, uncoordinated e-mail campaigns from nine different marketing groups </li></ul></ul></ul><ul><ul><li>His group needed to take over management of the e-mail campaigns </li></ul></ul><ul><ul><ul><li>promote the idea that marketing should be a long-term process that focuses on the life cycle of customers instead of looking at a sale as a one shot transaction </li></ul></ul></ul>
  190. 190. Proven ECRM Success <ul><li>The e-marketing group brought in e-mail analysis, segmentation and personalization tools from San Mateo, CA based Digital Impact </li></ul><ul><ul><li>HP found that its business customers fell into two groups: </li></ul></ul><ul><ul><ul><li>IT managers </li></ul></ul></ul><ul><ul><ul><li>End users </li></ul></ul></ul>
  191. 191. Proven ECRM Success <ul><li>HP started to learn what these groups wanted through small pilot tests </li></ul><ul><ul><li>IT Managers </li></ul></ul><ul><ul><ul><li>general product support alerts and newsletters </li></ul></ul></ul><ul><ul><li>End Users </li></ul></ul><ul><ul><ul><li>specific information about the exact product that they had bought and how to use it </li></ul></ul></ul>
  192. 192. Proven ECRM Success <ul><li>Results </li></ul><ul><ul><li>More of HP’s customers responded to the low-cost e-mail offer than to the direct mail offer, making the e-mail offer both more productive in terms of sales generated and more cost-effective in terms of expenses saved </li></ul></ul><ul><ul><li>85% saying they were quite satisfied with the content that they received </li></ul></ul><ul><ul><li>New e-mail campaigns generate an estimated $15 million in new monthly sales revenues, as well as half a million dollars in monthly cost savings from the consolidated e-mail campaigns </li></ul></ul>
  193. 193. Conclusion <ul><li>We identified the five critical issues that companies must consider at the threshold of ECRM implementation. </li></ul><ul><li>We explored the customer-centric and corporate benefits of implementing an ECRM solution. </li></ul><ul><li>ECRM solutions give companies the power to say “YES!” to virtually any question from a customer. </li></ul><ul><li>The very survival of organizations depends on their commitment to this answer. </li></ul>
  194. 194. BPR <ul><li>Envision new processes </li></ul><ul><ul><li>Secure management support </li></ul></ul><ul><ul><li>Identify reengineering opportunities </li></ul></ul><ul><ul><li>Identify enabling technologies </li></ul></ul><ul><ul><li>Align with corporate strategy </li></ul></ul><ul><li>Initiating change </li></ul><ul><ul><li>Set up reengineering team </li></ul></ul><ul><ul><li>Outline performance goals </li></ul></ul><ul><li>Process diagnosis </li></ul><ul><ul><li>Describe existing processes </li></ul></ul><ul><ul><li>Uncover pathologies in existing processes </li></ul></ul>
  195. 195. BPR contd. <ul><li>Process redesign </li></ul><ul><ul><li>Develop alternative process scenarios </li></ul></ul><ul><ul><li>Develop new process design </li></ul></ul><ul><ul><li>Design HR architecture </li></ul></ul><ul><ul><li>Select IT platform </li></ul></ul><ul><ul><li>Develop overall blueprint and gather feedback </li></ul></ul><ul><li>Reconstruction </li></ul><ul><ul><li>Develop/install IT solution </li></ul></ul><ul><ul><li>Establish process changes </li></ul></ul><ul><li>Process monitoring </li></ul><ul><ul><li>Performance measurement, including time, quality, cost, IT performance </li></ul></ul><ul><ul><li>Link to continuous improvement </li></ul></ul>
  196. 196. Expert System Definition <ul><li>An expert system is a computer program that represents and reasons with knowledge of some specialist subject with a view to solving problems or giving advice . </li></ul><ul><li>Possess knowledge </li></ul><ul><li>Specific domain </li></ul><ul><li>Solving problem or giving advice </li></ul>
  197. 197. Basic Expert System Concepts <ul><li>Knowledge base </li></ul><ul><li>Inference engine </li></ul><ul><li>Facts </li></ul><ul><li>Expertise </li></ul><ul><li>Problem domain </li></ul><ul><li>Knowledge domain of the expert </li></ul>
  198. 198. Expert System components <ul><li>User interface </li></ul><ul><li>Explanation facility - explains reasoning of the system to a user </li></ul><ul><li>Knowledge Base – production memory (rules) </li></ul><ul><li>Working memory - global database of facts </li></ul><ul><li>Inference engine </li></ul><ul><li>Agenda - prioritized list of rules satisfied by facts </li></ul><ul><li>Knowledge acquisition facility </li></ul>
  199. 199. Advantages of Expert systems <ul><li>Increased availability </li></ul><ul><li>Reduced cost </li></ul><ul><li>Reduced danger </li></ul><ul><li>Permanence </li></ul><ul><li>Multiple expertise </li></ul><ul><li>Increased reliability </li></ul><ul><li>Explanation </li></ul><ul><li>Fast response; steady, unemotional complete response at all times; </li></ul><ul><li>Intelligent tutor, Intelligent database </li></ul>
  200. 200. Expert System Tasks <ul><li>The interpretation of data </li></ul><ul><li>Diagnosis of malfunctions </li></ul><ul><li>Structural analysis of complex objects </li></ul><ul><li>Configuration of complex objects </li></ul><ul><li>Planning sequences of actions </li></ul>
  201. 201. Expert Systems Domains <ul><li>Medical and health applications </li></ul><ul><li>Agricultural, Livestock, and food issues and needs </li></ul><ul><li>Energy Options </li></ul><ul><li>Natural Resource Exploitation </li></ul><ul><li>Space Technology </li></ul>
  202. 202. Expert System Characteristics <ul><li>Simulates human reasoning about a problem domain </li></ul><ul><li>Performs reasoning over representations of human knowledge. </li></ul><ul><li>Solves problems by heuristic or approximate methods. </li></ul>
  203. 203. Explanation Facility <ul><li>May be simple or elaborate </li></ul><ul><li>A simple system may just list the facts that made the last rule fire </li></ul><ul><li>More elaborate systems may: </li></ul><ul><ul><li>List all the reasons for and against a particular hypothesis, </li></ul></ul><ul><ul><li>List all the hypotheses that may explain the observed evidence, </li></ul></ul><ul><ul><li>Explain all the consequences of a hypothesis, </li></ul></ul><ul><ul><li>Give a prognosis of prediction of what will occur if the hypothesis is true, etc. (see page 9-10) </li></ul></ul>
  204. 204. Key Topics in Expert Systems <ul><li>Knowledge acquisition </li></ul><ul><li>Knowledge representation </li></ul><ul><li>Controlling reasoning </li></ul><ul><li>Explaining solutions </li></ul>
  205. 205. Introduction to E-Business The terms Internet, electronic commerce, electronic business, and cybertrade are used often. However, they are used interchangeably and with no common understanding of their scope or relationships.
  206. 206. Electronic business (e-business) <ul><li>is any process that a business organization conducts over a computer-mediated network. Business organizations include any for-profit, governmental, or nonprofit entity. Their processes include production-, customer-, and internal or management-focused business processes. Examples of electronic business processes are: </li></ul><ul><li>Production- focused processes include procurement, ordering, automated stock replenishment, payment processing and other electronic links with suppliers, as well as production control and processes more directly related to the production process. </li></ul><ul><li>Customer-focused processes include marketing, electronic selling, processing of customers orders and payments, and customer management and support </li></ul><ul><li>Internal or management-focused processes include automated employee services, training, information sharing, video conferencing, and recruiting. </li></ul>
  207. 207. Electronic commerce (e-commerce) <ul><li>is any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods or services. Transactions occur within selected e-business processes (e.g., selling process) and are &quot;completed&quot; when agreement is reached between the buyer and seller to transfer the ownership or rights to use goods or services. Completed transactions may have a zero price (e.g., a free software download). Examples of both e-commerce and non e-commerce transactions are listed below. </li></ul>
  208. 208. Computer-mediated networks <ul><li>are electronically linked devices that communicate interactively over network channels . Generally, both electronic devices will be computer-enabled, but at a minimum at least one device must be computer-enabled as in the case of a typical telephone linking with an computer-enabled interactive telephone system. Typically, the interactive link involves minimal human intervention though someone activates the electronic devices, accesses the network, and may even assist with the process or transaction. For example, many e-commerce businesses are providing shoppers with the on-line capability of &quot;chatting&quot; with customer support representatives or even speaking with them through the use of internet telephony software. Examples of devices and networks are: </li></ul><ul><ul><li>Linked electronic devices such as computers, personal digital assistants, webTV, </li></ul></ul><ul><ul><li>Internet-enabled cellular phones, and telephones linked with interactive telephone systems. </li></ul></ul><ul><ul><li>Networks such as the Internet, intranets, extranets, Electronic Data Interchange (EDI) networks, and telecommunication networks. Networks may be either open or closed. </li></ul></ul>
  209. 209. E-COMMERCE EXAMPLES <ul><li>An individual purchases a book on the Internet. </li></ul><ul><li>A government employee reserves a hotel room over the Internet. </li></ul><ul><li>A business calls a toll free number and orders a computer using the seller's interactive telephone system. </li></ul><ul><li>A business buys office supplies on-line or through an electronic auction. </li></ul><ul><li>A retailer orders merchandise using an EDI network or a supplier's extranet. </li></ul><ul><li>A manufacturing plant orders electronic components from another plant within the company using the company's intranet. </li></ul><ul><li>An individual withdraws funds from an automatic teller machine (ATM). </li></ul>
  210. 210. Complex Scenarios <ul><li>A consumer visits a bookstore and inquires about the availability of an out-of-stock book. A bookstore employee downloads a digital copy of the book and prints it along with cover. Not an e-commerce retail transaction since agreement to purchase did not occur over an electronic network. However, the right to access the digital archived copy is an e-commerce service transaction. </li></ul><ul><li>Consumer uses Internet to research the purchase of a computer, but calls a toll free number and places the order with an operator. Not an e-commerce transaction because agreement to transfer ownership did not occur over computer-mediated network; neither telephone was computer-enabled. </li></ul><ul><li>An individual visits a retail store and purchases merchandise not currently in stock from a computer-enabled kiosk located inside the shop. An e-commerce transaction since agreement occurred over computer-mediated networks. In contrast, the purchase of a pre-packaged music CD from a computerized kiosk would not be considered an e-commerce transaction. If the kiosk was network linked, the digital music was downloaded, and the CD was mastered within the kiosk this would be an e-commerce transaction. </li></ul>
  211. 211. E-Commerce models <ul><li>B2B </li></ul><ul><li>B2C </li></ul><ul><li>C2C </li></ul>
  212. 212. E-Commerce models Contd. <ul><li>The five categories are called </li></ul><ul><li>Vanity : Many web sites are started as vanity sites. These sites are often created by individuals as an outlet of self expression, to share a hobby, promote a cause, or find others with similar interests. These sites are created with no intentions of deriving revenue and no illusions of grandeur. It could be as simple as a one page family site or a complex forum on a specific topic. The costs are borne either by the individual or by some altruistic enterprise such as universities, libraries, communities, associations, and even businesses. Nevertheless, the costs are real of these &quot;free&quot; sites. </li></ul>
  213. 213. E-Commerce models Contd. <ul><li>Billboard : Billboard sites (also called brochure or information sites) are designed to derive economic benefit through indirect means from either referred sales, reduced cost, or both. Revenue comes from creating awareness of its products or services via the web, with the actual purchase transaction occurring off-line. Just like a billboard on a highway, success is measured on viewership as net citizens &quot;surf&quot; by and are influenced to purchase product. Most corporate sites today put up these electronic brochures to provide information about their products, employment information, or public information. Economic benefit is created through the indirect purchase of goods or services from existing physical outlets and cost savings through the elimination of infrastructure or inefficiency. Finally, some businesses feel this is the best way to avoid channel conflict'a potential pricing disparity between different supply chains. </li></ul>
  214. 214. E-Commerce models Contd. <ul><li>Advertising : Network television, radio, and many periodicals follow the advertising model. All programming and content is funded by advertising dollars, with consumer viewership measuring value. Agencies conduct sophisticated surveys to measure the value and establish the pricing. For eCommerce, advertising can be in the form of banners, sponsorships, ezine ads, and other promotion methods. </li></ul><ul><li>This is a much-ballyhooed but still largely unproven model on the web. While there are a few sites that are entirely supported by advertising dollars, the lack of web-savvy viewership statistics hinder the mass adoption by advertisers. As the knowledge of consumer behavior is further understood, experts will prepare purchase pattern analyses providing advertisers with empirical data to support their promotion campaigns. </li></ul>
  215. 215. E-Commerce models Contd. <ul><li>Subscriptions : In other media, the subscription models are well established'accepted by subscribers and nurtured by publishers. On the web, subscriptions are not yet widely accepted by consumers. Of those that are accepted, the subscription model caters to sites targeted to particular niches of individuals who have specific needs. These sites are often specialized with expert content and timely information. The subscriptions fund the development and maintenance of the site. </li></ul><ul><li>Subscriptions can be paid on a weekly, monthly, or annual basis. Payment through a credit card account is a common payment scheme for subscription sites because of the ability to periodically process the purchase transaction electronically. </li></ul>
  216. 216. E-Commerce models Contd. <ul><li>Storefront : To some people, a products-offered site is narrowly defined as a &quot;true&quot; eCommerce site. A website that offers products for sale is the electronic version of a catalog. These virtual storefronts are built to describe the offering with pictures and words, offer promotions, provide a &quot;shopping cart,&quot; and complete the purchase transaction. Once the product is purchased, the cyber enterprise arranges for product fulfillment including shipping and handling. The fulfillment is sometimes completed by the website enterprise or directly from the manufacturer in a drop shipping arrangement. Some manufacturers are now passing up the intermediary wholesalers and retailers by offering their products directly to consumers. This collapsing of the supply chain is called disintermediation </li></ul>
  217. 217. E-Commerce models <ul><li>a simple poster or billboard website model </li></ul><ul><ul><li>The site offers information and asks the user to take action by sending an email to a contact </li></ul></ul><ul><ul><li>Emails from this company can have the url in the signature to alert/advertise to contacts/customers the existence of the web site and stationary(letters/faxes/business cards) should show the url as well </li></ul></ul>
  218. 218. E-Commerce models <ul><li>“ yellow pages” model </li></ul><ul><ul><li>A larger undertaking - a menu of items pointing to other sources and information </li></ul></ul><ul><ul><li>A greater catchments area and profile for the business </li></ul></ul>
  219. 219. E-Commerce models <ul><li>Cyber brochure model </li></ul><ul><ul><li>More sophisticated form of yellow pages model </li></ul></ul><ul><ul><li>Contains information sheets, brochures and general information about the firm and its products </li></ul></ul>
  220. 220. E-Commerce models <ul><li>Advertising model </li></ul><ul><ul><li>A site which sells space for advertising goods and services - national or international </li></ul></ul><ul><ul><li>Banners flash up offering goods and services </li></ul></ul><ul><li>Some sites have a measure of directed advertising - if for example you are searching for a particular good or service then vendors offering that service will flash up </li></ul>
  221. 221. E-Commerce models <ul><li>Subscription models </li></ul><ul><ul><li>a members/customers only site - customer to subscribe to an on-line magazine </li></ul></ul><ul><ul><li>model has downloads of software, white papers </li></ul></ul><ul><li>Used by some software firms as an on-line way of making available new versions of software, patches for software, documentation releases </li></ul>
  222. 222. E-Commerce models <ul><li>Virtual or cyber Storefront – “the works!” </li></ul><ul><ul><li>Full information about the company </li></ul></ul><ul><ul><li>On-line ordering and secure payment </li></ul></ul>
  223. 223. World Wide Web <ul><li>Main ingredients of the Web </li></ul><ul><ul><li>URL, HTML, and HTTP </li></ul></ul><ul><li>Key properties of HTTP </li></ul><ul><ul><li>Request-response, stateless, and resource meta-data </li></ul></ul><ul><li>Web components </li></ul><ul><ul><li>Clients, proxies, and servers </li></ul></ul><ul><ul><li>Caching vs. replication </li></ul></ul><ul><li>Interaction with underlying network protocols </li></ul><ul><ul><li>DNS and TCP </li></ul></ul><ul><ul><li>TCP performance for short transfers </li></ul></ul><ul><ul><li>Parallel connections, persistent connections, pipelining </li></ul></ul>
  224. 224. Main Components: URL <ul><li>Uniform Resource Identifier (URI) </li></ul><ul><ul><li>Denotes a resource independent of its location or value </li></ul></ul><ul><ul><li>A pointer to a “black box” that accepts request methods </li></ul></ul><ul><li>Formatted string </li></ul><ul><ul><li>Protocol for communicating with server (e.g., http) </li></ul></ul><ul><ul><li>Name of the server (e.g., </li></ul></ul><ul><ul><li>Name of the resource (e.g., coolpic.gif) </li></ul></ul><ul><li>Name (URN), Locator (URL), and Identifier (URI) </li></ul><ul><ul><li>URN: globally unique name, like an ISBN # for a book </li></ul></ul><ul><ul><li>URI: identifier representing the contents of the book </li></ul></ul><ul><ul><li>URL: location of the book </li></ul></ul>
  225. 225. Main Components: HTML <ul><li>HyperText Markup Language (HTML) </li></ul><ul><ul><li>Representation of hyptertext documents in ASCII format </li></ul></ul><ul><ul><li>Format text, reference images, embed hyperlinks </li></ul></ul><ul><ul><li>Interpreted by Web browsers when rendering a page </li></ul></ul><ul><li>Straight-forward and easy to learn </li></ul><ul><ul><li>Simplest HTML document is a plain text file </li></ul></ul><ul><ul><ul><li>Easy to add formatting, references, bullets, etc. </li></ul></ul></ul><ul><ul><li>Automatically generated by authoring programs </li></ul></ul><ul><ul><ul><li>Tools to aid users in creating HTML files </li></ul></ul></ul><ul><li>Web page </li></ul><ul><ul><li>Base HTML file referenced objects (e.g., images) </li></ul></ul><ul><ul><li>Each object has its own URL </li></ul></ul>
  226. 226. Main Components: HTTP <ul><li>HyperText Transfer Protocol (HTTP) </li></ul><ul><ul><li>Client-server protocol for transferring resources </li></ul></ul><ul><ul><li>Client sends request and server sends response </li></ul></ul>
  227. 227. EDI: Electronic Data Interchange <ul><li>What is EDI? </li></ul><ul><ul><li>Exchange of electronic data between companies using precisely defined transactions </li></ul></ul><ul><ul><li>Set of hardware, software, and standards that accommodate the EDI process </li></ul></ul>
  228. 228. Electronic Data Interchange
  229. 229. Electronic Data Interchange
  230. 230. Electronic Data Exchange <ul><li>How does EDI work </li></ul><ul><ul><li>Supplier’s proposal sent electronically to purchasing organization. </li></ul></ul><ul><ul><li>Electronic contract approved over network. </li></ul></ul><ul><ul><li>Supplier manufactures and packages goods, attaching shipping data recorded on a bar code. </li></ul></ul><ul><ul><li>Quantities shipped and prices entered in system and flowed to invoicing program; invoices transmitted to purchasing organization </li></ul></ul>
  231. 231. Electronic Data Exchange <ul><ul><li>Manufacturer ships order. </li></ul></ul><ul><ul><li>Shipment notice EDI transaction sent </li></ul></ul><ul><ul><li>Purchasing organization receives packages, scans bar code, and compares data to invoices actual items received. </li></ul></ul><ul><ul><li>Payment approval transferred electronically. </li></ul></ul><ul><ul><li>Bank transfers funds from purchaser to supplier’s account using electronic fund transfer (EFT). </li></ul></ul>
  232. 232. Electronic Data Interchange
  233. 233. Electronic Data Interchange <ul><li>EDI Standards </li></ul><ul><ul><li>EDI requires companies to agree on standards </li></ul></ul><ul><ul><ul><li>Compatible hardware and software </li></ul></ul></ul><ul><ul><ul><li>Agreed upon electronic form format </li></ul></ul></ul><ul><ul><li>Established EDI standards </li></ul></ul><ul><ul><ul><li>Automotive Industry Action Group (AIAG) </li></ul></ul></ul><ul><ul><ul><li>X.12 de facto umbrella standard in U.S. and Canada </li></ul></ul></ul><ul><ul><ul><li>EDI for Administration, Commerce, and Trade (EDIFACT) umbrella of standards in Europe </li></ul></ul></ul>
  234. 234. Electronic Data Interchange <ul><li>How to Subscribe to EDI </li></ul><ul><ul><li>Larger companies purchase hardware and software </li></ul></ul><ul><ul><li>Medium and small companies seek third-party service </li></ul></ul><ul><ul><ul><li>Value-added networking (VAN) </li></ul></ul></ul><ul><ul><ul><li>Managed network services available for a fee </li></ul></ul></ul>
  235. 235. Electronic Data Interchange <ul><li>EDI on the Web </li></ul><ul><ul><li>Advantages of Web EDI </li></ul></ul><ul><ul><ul><li>Lower cost </li></ul></ul></ul><ul><ul><ul><li>More familiar software </li></ul></ul></ul><ul><ul><ul><li>Worldwide connectivity </li></ul></ul></ul><ul><ul><li>Disadvantages of Web EDI </li></ul></ul><ul><ul><ul><li>Low speed </li></ul></ul></ul><ul><ul><ul><li>Poor security </li></ul></ul></ul>
  236. 236. Electronic Data Interchange <ul><li>The Importance of EDI </li></ul><ul><ul><li>Need for timely, reliable data exchange in response to rapidly changing markets </li></ul></ul><ul><ul><li>Emergence of standards and guidelines </li></ul></ul><ul><ul><li>Spread of information into many organizational units </li></ul></ul><ul><ul><li>Greater reliability of information technology </li></ul></ul><ul><ul><li>Globalization of organizations </li></ul></ul>
  237. 237. OOAD
  238. 238. Object modelling <ul><li>is useful for designing computer systems, whether those systems are to be implemented in object-oriented languages or not. Most designs are likely to need more than an object-oriented language, such as a database. </li></ul><ul><li>Object modelling also has a use outside of the design of computer systems. It is an excellent analysis method, and it can be used in business process reengineering, in social science research, or any complex environment where it is important to capture the structure and functionality of some world. </li></ul>
  239. 239. Why Design? <ul><li>Even the most professional programmers feel the temptation to sit down and produce code at the earliest possible moment. Therein lie many of the ills of the software engineering industry. Design is a process which involves </li></ul><ul><ul><li>communication </li></ul></ul><ul><ul><li>creativity </li></ul></ul><ul><ul><li>negotiation </li></ul></ul><ul><ul><li>agreement </li></ul></ul><ul><li>It is a human process, to produce products for human consumption. Too often the communication, negotiation and agreement aspects are left out. </li></ul><ul><li>Object modelling provides a notation which is clear, consistent, and which can be used to communicate within a software development team, and with the clients and other third-parties which the team need to deal with. </li></ul>
  240. 240. Objects <ul><li>We begin at the beginning. The world is made of objects. Just open your eyes and ears. They are out there. Bank customers, students, cats, elephants, cars, balls of string, atoms, molecules, tubs of ice cream, Madonna, stars, bureaucrats, Robin Hood. The world is built of objects. Objects are built of smaller objects, and so ad infinitum. Objects combine to make bigger objects. We already live in an object-oriented world. </li></ul><ul><li>The first thing an object analyst must do is to remove the scales from his or her eyes. Object modelling consists of looking for objects. Of course, there has to be some boundary. Even sitting at ones desk one can see more objects than one could reasonably list. But that is where the beauty of object modelling comes in. It uses observation. </li></ul>
  241. 241. Objects Objects can be described by their attributes and operations. Attributes are the changeable characteristics of an object. Cats have colou