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Management Information System-MIS


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Management Information System.
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Management Information System-MIS

  1. 1. ManageMent InforMatIon SySteM ManageMent InforMatIon SySteM
  2. 2. What IS ManageMentWhat IS ManageMent • Management • the process of coordinating work activities so that they are completed efficiently and effectively with and through other people • Process - represents ongoing functions or primary activities engaged in by managers • Coordinating - distinguishes a managerial position from a non-managerial one
  3. 3. What IS ManageMentWhat IS ManageMent • Management (cont.) • Efficiency - getting the most output from the least amount of inputs • “doing things right” (not wasting resources) • concerned with means • Examples: cutting inventory levels • Decreasing the amount of time to manufacture products • Effectiveness - completing activities so that organizational goals are attained • “doing the right things” • concerned with ends
  4. 4. effIcIency and effectIveneSS In ManageMent effIcIency and effectIveneSS In ManageMent Management Strives For: Low resource waste (high efficiency) High goal attainment (high effectiveness) Resource Usage Efficiency (Means) Goal Attainment Effectiveness (Ends) Low Waste High Attainment
  5. 5. Key reSourceS of MIS InforMatIon Key reSourceS of MIS InforMatIon • Data Are raw facts that describe a particular phenomenon e.g Current Temperature, Price of property, Age of a person etc. A message which source wants to communicate to the receiver e.g Text, Voice, Image, movies, Music etc • Information: Data that is organized, meaningful, and useful • data with context • processed data • value-added to data • summarized • organized
  6. 6. data and InforMatIondata and InforMatIon
  7. 7. changIng data Into InforMatIon • data – Raw facts stored in databases – Need additional processing to become useful • InforMatIon – Required by decision maker – Data processed and presented in a meaningful form – Transformation (any process that changes data into information). Program instructions
  8. 8. data collected WIthIn an organISatIon data collected WIthIn an organISatIon Data collected Where from? Used for? Order details, customer details complaints customers Financial data bank Cost of goods, new products suppliers Sales data Sales Dept
  9. 9. data collected WIthIn an organISatIon data collected WIthIn an organISatIon Data collected Where from? Used for? Order details, customer details complaints customers Supplying goods, creating invoices and statements Improved performance Financial data bank Planning strategic decisions Cost of goods, new products suppliers Selling to customers Sales data Sales Dept Monitor sales against forecasts, re-order of stock
  10. 10. characterIStIcS of valuable InforMatIon 1. Accuracy. 2. Verifiable. 3. Timeliness. 4. Organized. 5. Meaningful. 6. Cost effective.
  11. 11. 1.accuracy • The information a user receives has been processed correctly • Correct information • Free from errors • Inaccurate information can lead to incorrect decisions
  12. 12. 2. verIfIable User can confirm and verify the information. Identify source of information
  13. 13. Having information when users need it. Right information must be produced to users at right time. 3.tIMely InforMatIon
  14. 14. 4. organIzed  Information is arranged to suit the needs and requirements of the users.
  15. 15. 5. MeanIngful  Relevant to the user who receives or uses it.  Unnecessary information must be eliminated.
  16. 16. 6.coSt-effectIve  The cost to produce the information should be less than the actual cost of the information.
  17. 17. What IS a SySteM?What IS a SySteM? • A system is… • A set of interrelated components • With a clearly defined boundary • Working together • To achieve a common set of objectives • By accepting inputs and producing outputs • In an organized transformation process
  18. 18. baSIc functIonS of a SySteM baSIc functIonS of a SySteM • Input: • Capturing and assembling elements that enter the system to be processed • Processing: • Transformation process that converts input into output • Output: • Transferring transformed elements to their ultimate destination
  19. 19. It and IS • What is Information Technology? Any form of technology used by people to handle information. • What are Information Systems? “A collection of hardware, software, data, people, and procedures that are designed to generate information that support day-to-day activities of users in an organization”
  20. 20. • The branch of Engineering that deals with the use of Computers and Telecommunications to retrieve, store and transmit information • Any computer based tool that people use to work with information & support the information & information processing needs of an organization InforMatIon technology (It)
  21. 21. defInItIon of InforMatIon SySteMS “A collection of hardware, software, data, people, and procedures that are designed to generate information that support day-to-day activities of users in an organization”
  22. 22. coMponentS of InforMatIon SySteMS • Data • Software • Hardware • People • Procedures
  23. 23. InforMatIon SySteM actIvItIeS InforMatIon SySteM actIvItIeS • Input of data resources • Data entry activities • Processing of data into information • Calculations, comparisons, sorting, and so on • Output of information products • Messages, reports, forms, graphic images • Storage of data resources • Data elements and databases • Control of system performance • Monitoring and evaluating feedback
  24. 24. typeS of InforMatIon SySteMStypeS of InforMatIon SySteMS •operatIonS Support SySteMS: • TPS( Sales, Inventory, and accounting systems) • PCS( Monitor and control industrial processes ( Petroleum refining, power generation and steel production systems. • Enterprise collaboration systems, such as e-mail, chat and videoconferencing systems. •ManageMent Support SySteMS: • MIS( Provide information as reports and displays) • DSS(such as products pricing, profitability forecasting, and risk analysis. • EIS( Provides critical information from MIS, DSS such as system for easy access to analysis of business performance, action of competitors, and strategic planning
  25. 25. typeS of operatIonS Support SySteMS typeS of operatIonS Support SySteMS • Transaction Processing Systems • Record and process business transactions • Examples: sales processing, inventory systems, accounting systems • Process Control Systems • Monitor and control physical processes • Example: using sensors to monitor chemical processes in a petroleum refinery • Enterprise Collaboration Systems • Enhance team and workgroup communication • Examples: email, video conferencing
  26. 26. tranSactIon proceSSIng SySteMStranSactIon proceSSIng SySteMS • TPS is the important examples of Operations support systems that record and process data resulting from business transactions. • Computerized systems that perform and record the daily routine transactions necessary to conduct the business; they serve the organization’s operational level • Examples • Accounting information systems • TCS, DHL, all have systems that are TPS
  27. 27. tWo WayS to proceSS tranSactIonS tWo WayS to proceSS tranSactIonS • Batch Processing: • Accumulate transactions over time and process periodically • Example: a bank processes all checks received in a batch at night • Online Processing: • Process transactions immediately • Example: a bank processes an ATM withdrawal immediately
  28. 28. exaMple of tpSexaMple of tpS 1. An inventory control system keeps a file of records about the stock of goods that a business has on hand (the inventory) which is one aspect of the state of the business. 2. When items are shipped or received, the state of the business is affected, and the inventory control system makes changes about the inventory in the stored records.
  29. 29. • 4. It also prints a report giving the quantity on hand for each item in inventory, which is a characteristic of the state of the business. • Finally, when inventory is low, the system produces output that causes more inventory to be ordered, which is another type of business transaction. exaMple of tpSexaMple of tpS
  30. 30. typeS of tpS SySteMS
  31. 31. tranSactIon proceSSIng SySteM functIonS tranSactIon proceSSIng SySteM functIonS Input function • Capture input data • Enter input data • Validate input data Processing function: • perform computation • make decision Output function: • produce screen output • print output Storage function: • stored data • Access data • Update data
  32. 32. • Transaction processing systems perform input, output, storage, and processing functions. • Input functions include capturing data on a source document, entering the input data into the system, and checking input data for errors, a process called data validation • Output functions include producing screen or paper reports, such as detail reports, summary reports, and exception reports. tranSactIon proceSSIng SySteMtranSactIon proceSSIng SySteM
  33. 33. • Storage functions include storing data in files and databases, accessing stored data, sorting stored data, and updating stored data. • Processing functions involve the manipulation of data, including computation and decision making tranSactIon proceSSIng SySteMtranSactIon proceSSIng SySteM
  34. 34. tranSactIon proceSSIng SySteMStranSactIon proceSSIng SySteMS
  35. 35. ManageMent InforMatIon SySteMS ManageMent InforMatIon SySteMS • MIS provides information in the form of reports and displays to managers and many business professionals. Such as sales analysis, production performance. • Provides information to business professionals in a variety of easy-to-use formats. • Examples – Systems that provide managers with reports and online real-time access to company performance and historical records.
  36. 36. ManageMent InforMatIon SySteM (MIS)
  37. 37. decISIon Support SySteMS decISIon Support SySteMS  Decision Support Systems are concerned with providing useful information to support the decision process.  A Production Manager may use a DSS to decides how much product to manufacture based on the expected sales associated with a future promotion and the location and availability of the raw materials necessary to manufacture the product. • Examples – May take data from both internal sources (TPS, MIS) but also from external sources (Stock prices or product prices of competitors) – Shipping companies use voyage-estimating systems that take various shipping information into account and give
  38. 38. Voyage-estimating Decision Support System Voyage-estimating Decision Support System • Needs voyage-estimating system to calculate • financial details • Ship/time costs (fuel, labour, capital) • Freight rates for various types of cargo • Port expenses • technical details • Ship cargo capacity • Speed • Port distances • Fuel and water consumption • Cargo loading patterns
  39. 39. decISIon Support SySteMS decISIon Support SySteMS
  40. 40. decISIon Support SySteM (dSS)
  41. 41. executIve InforMatIon SySteMSexecutIve InforMatIon SySteMS • Information Systems at the organizations strategic level designed to address unstructured decision making through advanced graphics and communications. • Examples: – Incorporate data about external events such as tax laws or competitors, but also draw summarized information from internal MIS and DSS. – Filter, compress and track critical data, emphasizing the reduction of time and effort required to obtain information useful to
  42. 42. executIve Support SySteM (eSS)
  43. 43. What is a human resources information system (HRIS)?  Manages human resources functions  Employee relationship management (ERM) system facilitates communication with employees
  44. 44. Human Resource Systems
  45. 45. 2-47 • To view information systems as more than a set of technologies that support efficient business operations, work group and enterprise collaboration. Or effective business decision making. • IT can change the way businesses compete • A strategic information system is any information system that uses IT to help an organization… • Gain a competitive advantage • Reduce a competitive disadvantage • Or meet other strategic enterprise objectives Strategic ITStrategic IT
  46. 46. The major role of information systems applications in business is to provided effective support a company’s strategies for gaining competitive advantage. This strategic role of information systems involves using information technology to develop products, services, and capabilities that give a company major advantages over the competitive forces it faces in the global marketplace. 2-48 Strategic ITStrategic IT
  47. 47. • This is accomplished through a strategic information architecture ---the collection of strategic information systems that support the competitive position and strategies of a business enterprise. So a strategic information system can be any kind of information system that uses information technology to help an organization gain a competitive advantage, reduce a competitive disadvanrage. 2-49 Strategic ITStrategic IT
  48. 48. 2-50 • To succeed, a business must develop strategies to counter these forces… • Rivalry of competitors within its industry • New entrants into an industry and its markets • Substitute products that may capture market share • Bargaining power of customers • Bargaining power of suppliers Competitive ForcesCompetitive Forces
  49. 49. 2-51 Competitive Forces and StrategiesCompetitive Forces and Strategies
  50. 50. • Competition is a positive characteristic in business, and competitors share a natural and often healthy, rivalry. • This rivalry encourage and sometimes require a constant effort to gain competitive advantage in the marketplace. • Against the threat of new entrants also expands significant organizational resources. • The threat of substitutes is another competitive force confronting a business. The effect of this force is seen almost daily in a wide variety of industries. 2-52 Competitive Forces and StrategiesCompetitive Forces and Strategies
  51. 51. • It is often at its strongest during periods of rising costs or inflation. When airline prices get too high, peoples substitute care travel on their vacations. Exp. • If the customers’ bargaining power gets to strong, they can drive prices to unmanageably low level or simply refuse to buy the products or service. • If a key suppliers’ bargaining power gets to strong, it can force the price of goods and services to unmanageably high levels. 2-53 Competitive Forces and StrategiesCompetitive Forces and Strategies
  52. 52. 2-54 • Cost Leadership • Become low-cost producers • Help suppliers or customers reduce costs • Increase cost to competitors • Differentiation Strategy • Differentiate a firm’s products from its competitors’ • Focus on a particular segment or niche of market. • PIMSAT, focus on IT programs, and IU focus on Business studies Five Competitive StrategiesFive Competitive Strategies
  53. 53. 2-55 • Innovation Strategy • Unique products, services, or markets • Radical changes to business processes • Example: Amazon’s online, full-service customer systems • Growth Strategy • Expand company’s capacity to produce • Expand into global markets • Diversify into new products or services • Example: Wal-Mart’s merchandise ordering via global satellite tracking Competitive Strategies (continued)Competitive Strategies (continued)
  54. 54. 2-56 • Alliance Strategy • Establish linkages and alliances with customers, suppliers, competitors, consultants, and other companies • Includes mergers, acquisitions, joint ventures, virtual companies • Example: Wal-Mart uses automatic inventory replenishment by supplier. • As a consultants, Competitive Strategies (continued)Competitive Strategies (continued)
  55. 55. 2-57 • These strategies are not mutually exclusive • Organizations use one, some, or all • A given activity could fall into one or more categories of competitive strategy • Not everything innovative serves to differentiate one organization from another • Likewise, not everything that differentiates organizations is necessarily innovative Using Competitive StrategiesUsing Competitive Strategies
  56. 56. 2-58 Ways to Implement Basic StrategiesWays to Implement Basic Strategies
  57. 57. 2-59 • Lock in Customers and Suppliers • Deter them from switching to competitors • Build in Switching Costs • Make customers and suppliers dependent on the use of innovative IS • Erect Barriers to Entry • Discourage or delay other companies from entering the market • Increase the technology or investment needed to enter Other Competitive StrategiesOther Competitive Strategies
  58. 58. 2-60 • Build Strategic IT Capabilities • Take advantage of strategic opportunities when they arise • Improve efficiency of business practices • Leverage Investment in IT • Develop products and service that would not be possible without a strong IT capability Other Competitive StrategiesOther Competitive Strategies
  59. 59. 2-61 • What is the business value in being customer- focused? • Keep customers loyal • Anticipate their future needs • Respond to customer concerns • Provide top-quality customer service • Focus on customer value • Quality, not price, has become the primary determinant of value • Consistently Customer-Focused BusinessCustomer-Focused Business
  60. 60. 2-62 • Companies that consistently offer the best value from the customer’s perspective… • Track individual preferences • Keep up with market trends • Supply products, services, and information anytime, anywhere • Tailor customer services to the individual • Use Customer Relationship Management (CRM) systems to focus on the customer Providing Customer ValueProviding Customer Value
  61. 61. 2-63 Building Customer Value via the InternetBuilding Customer Value via the Internet
  62. 62. 2-64 • View the firm as a chain of basic activities that add value to its products and services • Primary processes directly relate to manufacturing or delivering products • Support processes help support the day-to-day running of the firm and indirectly contribute to products or services • Use the value chain to highlight where competitive strategies will add the most value The Value Chain and Strategic ISThe Value Chain and Strategic IS
  63. 63. 2-65 Using IS in the Value ChainUsing IS in the Value Chain
  64. 64. 2-66 • A company that emphasizes strategic business use of IT would use it to gain a competitive differentiation • Products • Services • Capabilities Strategic Uses of ITStrategic Uses of IT
  65. 65. 2-67 • Called BRP or simply Reengineering • Fundamental rethinking and radical redesign of business processes • Seeks to achieve improvements in cost, quality, speed, and service • Potential payback is high, but so is risk of disruption and failure • Organizational redesign approaches are an important enabler of reengineering • Includes use of IT, process teams, case managers Reengineering Business ProcessesReengineering Business Processes
  66. 66. 2-68 BPR Versus Business ImprovementBPR Versus Business Improvement
  67. 67. 2-69 • IT plays a major role in reengineering most business processes • Can substantially increase process efficiencies • Improves communication • Facilitates collaboration The Role of Information TechnologyThe Role of Information Technology
  68. 68. 2-70 • Many processes are reengineered with… • Enterprise resource planning software • Web-enabled electronic business and commerce systems A Cross-Functional ProcessA Cross-Functional Process
  69. 69. 2-71 • IT that supports this process… • CRM systems using intranets and the Internet • Supplier-managed inventory systems using the Internet and extranets • Cross-functional ERP software to integrate manufacturing, distribution, finance, and human resource processes • Customer-accessible e-commerce websites for order entry, status checking, payment, and service • Customer, product, and order status databases accessed via intranets and extranets Reengineering Order ManagementReengineering Order Management
  70. 70. 2-72 • Agility is the ability to prosper • In rapidly changing, continually fragmenting global markets • By selling high-quality, high-performance, customer-configured products and services • By using Internet technologies • An agile company profits in spite of • Broad product ranges • Short model lifetimes • Individualized products • Arbitrary lot sizes Becoming an Agile CompanyBecoming an Agile Company
  71. 71. 2-73 • An agile company… • Presents products as solutions to customers’ problems • Cooperates with customers, suppliers and competitors • Brings products to market as quickly and cost- effectively as possible • Organizes to thrive on change and uncertainty • Leverages the impact of its people and the knowledge they possess Strategies for AgilityStrategies for Agility
  72. 72. 2-74 How IT Helps a Company be AgileHow IT Helps a Company be Agile
  73. 73. 2-75 • A virtual company uses IT to link… • People • Organizations • Assets • Ideas • Inter-enterprise information systems link… • Customers • Suppliers • Subcontractors • Competitors Creating a Virtual CompanyCreating a Virtual Company
  74. 74. 2-76 A Virtual CompanyA Virtual Company
  75. 75. 2-77 • Basic business strategies • Share information and risk with alliance partners • Link complimentary core competencies • Reduce concept-to-cash time through sharing • Increase facilities and market coverage • Gain access to new markets and share market or customer loyalty • Migrate from selling products to selling solutions Virtual Company StrategiesVirtual Company Strategies
  76. 76. 2-78 • A knowledge-creating company or learning organization… • Consistently creates new business knowledge • Disseminates it throughout the company • Builds it into its products and services Building a Knowledge-Creating CompanyBuilding a Knowledge-Creating Company
  77. 77. 2-79 • Explicit Knowledge • Data, documents, and things written down or stored in computers • Tacit Knowledge • The “how-to” knowledge in workers’ minds • Represents some of the most important information within an organization • A knowledge-creating company makes such tacit knowledge available to others Two Kinds of KnowledgeTwo Kinds of Knowledge
  78. 78. 2-80 • Successful knowledge management • Creates techniques, technologies, systems, and rewards for getting employees to share what they know • Makes better use of accumulated workplace and enterprise knowledge Knowledge ManagementKnowledge Management
  79. 79. 2-81 Knowledge Management TechniquesKnowledge Management Techniques
  80. 80. 2-82 • Knowledge management systems • A major strategic use of IT • Manages organizational learning and know-how • Helps knowledge workers create, organize, and make available important knowledge • Makes this knowledge available wherever and whenever it is needed • Knowledge includes • Processes, procedures, patents, reference works, formulas, best practices, forecasts, and fixes Knowledge Management Systems (KMS)Knowledge Management Systems (KMS)
  81. 81. Produces and stores results  Electronic device operating under the control of instructions stored in its own memory Processes data into informationinformation Data that is organized, meaningful, and useful Accepts datadata Raw facts, figures, and symbols
  82. 82. What IS hardWareWhat IS hardWare • Hardware is the general term that is used to describe physical artifacts of technology.
  83. 83. What IS an Input devIce?  Hardware used to enter data and instructions
  84. 84. Input devIceSInput devIceS
  85. 85. Input devIceSInput devIceS
  86. 86. What IS an output devIce?  Hardware that conveys information to one or more people
  87. 87. What IS Storage? Storage mediaStorage media Physical material on which data, instructions, and information are stored Storage mediaStorage media Physical material on which data, instructions, and information are stored Storage deviceStorage device Records and retrieves items to and from a storage medium Storage deviceStorage device Records and retrieves items to and from a storage medium  Holds data, instructions, and information for future use
  88. 88. coMputer for IndIvIdual uSerScoMputer for IndIvIdual uSerS • Desktop computers • The most common type of computer • Sits on the desk or floor • Performs a variety of tasks • Workstations • Specialized computers • Optimized for science or graphics • More powerful than a desktop
  89. 89. Mainframe Very powerful, expensive computer that supports thousands of connected users [Also called an Enterprise Server] Supercomputer The fastest, most powerful, most expensive computer. Used for applications requiring complex mathematical calculations Server Controls access to network resources and provides centralized storage
  90. 90. What is a notebook computer?  Portable, small enough to fit on your lap  Also called a laptop computer  Generally more expensive than desktop computers with equal capabilities
  91. 91. What is a Tablet PC?  Especially useful for taking notes  Resembles a letter-sized slate  Allows you to write on the screen using a digital pen
  92. 92. Consists of a series of instructions that tells the computer what to do and how to do it Consists of a series of instructions that tells the computer what to do and how to do it What IS SoftWare? Also called a program Also called a program
  93. 93. coMputer SoftWarecoMputer SoftWare • Definition: • Key to productive use of computers. • A computer program that tells the computer how to perform particular tasks. • Information that the computer uses to get the job done. • Types of Software • Software can be categorized into two types: • System Software • Application Software.
  94. 94. What IS SySteM SoftWare? Operating System (OS)Operating System (OS) is a set of programs that coordinates all activities among computer hardware devices Operating System (OS)Operating System (OS) is a set of programs that coordinates all activities among computer hardware devices Utility ProgramsUtility Programs allow the user to perform maintenance-type tasks usually related to managing a computer, its devices or its programs Utility ProgramsUtility Programs allow the user to perform maintenance-type tasks usually related to managing a computer, its devices or its programs  Programs that control or maintain the operations of the computer and its devices
  95. 95. What IS applIcatIon SoftWare? Presentation Graphics Spreadsheet Database Word Processing  Programs designed to make users more productive  Create/Produce useful data
  96. 96. Word proceSSIngWord proceSSIng • Word Processing software is used to create and print documents. A key advantage of word processing software is that users easily can make changes in documents.
  97. 97. electronIc SpreadSheetSelectronIc SpreadSheetS • Electronic spreadsheet software allows the user to add, subtract, and perform user-defined calculations on rows and columns of numbers. These numbers can be changed and the spreadsheet quickly recalculates the new results.
  98. 98. databaSe SoftWaredatabaSe SoftWaredatabaSe SoftWaredatabaSe SoftWare • Allows the user to enter, retrieve, and update data in an organized and efficient manner, with flexible inquiry and reporting capabilities.
  99. 99. coMputer SoftWarecoMputer SoftWare What is a programmer? Someone who develops application or system software  Programmer writes the instructions to direct the computer to process data into information
  100. 100. What IS a graphIcal uSer Interface (guI)? Allows you to interact with the software using graphics and visual images such as icons  Controls how you enter data and instructions and how the screen displays information
  101. 101. 3-103 bIt and bytebIt and byte • Bit • Short for binary digit • Smallest element of data • Either zero or one • Byte • Group of eight bits, which operate as a single unit • Represents one character or number
  102. 102. 3-104 repreSentIng characterS In byteSrepreSentIng characterS In byteS
  103. 103. 3-105 uSIng bInary code to calculateuSIng bInary code to calculate
  104. 104. 3-106 Storage capacIty MeaSureMentStorage capacIty MeaSureMent • Kilobyte (KB): one thousand bytes • Megabyte (MB): one million bytes • Gigabyte (GB): one billions bytes • Terabyte (TB): one trillion bytes • Petabyte (PB): one quadrillion bytes
  105. 105. coMMon nuMber SySteMS coMMon nuMber SySteMS System Base Symbols Used by humans? Used in computers? Decimal 10 0, 1, … 9 Yes No Binary 2 0, 1 No Yes Octal 8 0, 1, … 7 No No Hexa- decimal 16 0, 1, … 9, A, B, … F No No 107
  106. 106. Quantities/Counting (1 of 3)Quantities/Counting (1 of 3) Decimal Binary Octal Hexa- decimal 0 0 0 0 1 1 1 1 2 10 2 2 3 11 3 3 4 100 4 4 5 101 5 5 6 110 6 6 7 111 7 7 108
  107. 107. Quantities/Counting (2 of 3)Quantities/Counting (2 of 3) Decimal Binary Octal Hexa- decimal 8 1000 10 8 9 1001 11 9 10 1010 12 A 11 1011 13 B 12 1100 14 C 13 1101 15 D 14 1110 16 E 15 1111 17 F 109
  108. 108. Quantities/Counting (3 of 3) Quantities/Counting (3 of 3) Decimal Binary Octal Hexa- decimal 16 10000 20 10 17 10001 21 11 18 10010 22 12 19 10011 23 13 20 10100 24 14 21 10101 25 15 22 10110 26 16 23 10111 27 17 Etc. 110
  109. 109. Quick Example Quick Example 2510 = 110012 = 318 = 1916 Base 111
  110. 110. Decimal to Decimal (just for fun) Decimal to Decimal (just for fun) Hexadecimal Decimal Octal Binary 112
  111. 111. 12510 => 5 x 100 = 5 2 x 101 = 20 1 x 102 = 100 125 Base Weight 113 Decimal to Decimal (just for fun) Weight “0”
  112. 112. Binary to Decimal Binary to Decimal Hexadecimal Decimal Octal Binary 114
  113. 113. Binary to Decimal Binary to Decimal • Technique • Multiply each bit by 2n , where n is the “weight” of the bit • The weight is the position of the bit, starting from 0 on the right • Add the results 115
  114. 114. Examp le Examp le 1010112 => 1 x 20 = 1 1 x 21 = 2 0 x 22 = 0 1 x 23 = 8 0 x 24 = 0 1 x 25 = 32 4310 Bit “0” 116
  115. 115. Octal to Decimal Octal to Decimal Hexadecimal Decimal Octal Binary 117
  116. 116. Octal to Decimal Octal to Decimal • Technique • Multiply each bit by 8n , where n is the “weight” of the bit • The weight is the position of the bit, starting from 0 on the right • Add the results 118
  117. 117. Examp le Examp le 7248 => 4 x 80 = 4 2 x 81 = 16 7 x 82 = 448 46810 119
  118. 118. Hexadecimal to Decimal Hexadecimal to Decimal Hexadecimal Decimal Octal Binary 120
  119. 119. Hexadecimal to Decimal Hexadecimal to Decimal • Technique • Multiply each bit by 16n , where n is the “weight” of the bit • The weight is the position of the bit, starting from 0 on the right • Add the results 121
  120. 120. Examp le Examp le ABC16 => C x 160 = 12 x 1 = 12 B x 161 = 11 x 16 = 176 A x 162 = 10 x 256 = 2560 274810 122
  121. 121. Decimal to Binary Decimal to Binary Hexadecimal Decimal Octal Binary 123
  122. 122. Decimal to Binary Decimal to Binary • Technique • Divide by two, keep track of the remainder • First remainder is bit 0 (LSB, least-significant bit) • Second remainder is bit 1 • Etc. 124
  123. 123. Examp le Examp le 12510 = ?2 2 125 62 12 31 02 15 12 7 12 3 12 1 12 0 1 12510 = 11111012 125
  124. 124. Decimal to Octal Decimal to Octal Hexadecimal Decimal Octal Binary 126
  125. 125. Decimal to Octal Decimal to Octal • Technique • Divide by 8 • Keep track of the remainder 127
  126. 126. Examp le Examp le 123410 = ?8 8 1234 154 28 19 28 2 38 0 2 123410 = 23228 128
  127. 127. Decimal to Hexadecimal Decimal to Hexadecimal Hexadecimal Decimal Octal Binary 129
  128. 128. Decimal to Hexadecimal Decimal to Hexadecimal • Technique • Divide by 16 • Keep track of the remainder 130
  129. 129. Examp le Examp le 123410 = ?16 123410 = 4D216 16 1234 77 216 4 13 = D16 0 4 131
  130. 130. Octal to Binary Octal to Binary Hexadecimal Decimal Octal Binary 132
  131. 131. Octal to Binary Octal to Binary • Technique • Convert each octal digit to a 3-bit equivalent binary representation 133
  132. 132. Examp le Examp le 7058 = ?2 7 0 5 111 000 101 7058 = 1110001012 134
  133. 133. Hexadecimal to Binary Hexadecimal to Binary Hexadecimal Decimal Octal Binary 135
  134. 134. Hexadecimal to Binary Hexadecimal to Binary • Technique • Convert each hexadecimal digit to a 4-bit equivalent binary representation 136
  135. 135. Examp le Examp le 10AF16 = ?2 1 0 A F 0001 0000 1010 1111 10AF16 = 00010000101011112 137
  136. 136. Binary to Octal Binary to Octal Hexadecimal Decimal Octal Binary 138
  137. 137. Binary to Octal Binary to Octal • Technique • Group bits in threes, starting on right • Convert to octal digits 139
  138. 138. Examp le Examp le 10110101112 = ?8 1 011 010 111 1 3 2 7 10110101112 = 13278 140
  139. 139. Binary to Hexadecimal Binary to Hexadecimal Hexadecimal Decimal Octal Binary 141
  140. 140. Binary to Hexadecimal Binary to Hexadecimal • Technique • Group bits in fours, starting on right • Convert to hexadecimal digits 142
  141. 141. Examp le Examp le 10101110112 = ?16 10 1011 1011 2 B B 10101110112 = 2BB16 143
  142. 142. Octal to Hexadecimal Octal to Hexadecimal Hexadecimal Decimal Octal Binary 144
  143. 143. Octal to Hexadecimal Octal to Hexadecimal • Technique • Use binary as an intermediary 145
  144. 144. Examp le Examp le 10768 = ?16 1 0 7 6 001 000 111 110 2 3 E 10768 = 23E16 146
  145. 145. Hexadecimal to Octal Hexadecimal to Octal Hexadecimal Decimal Octal Binary 147
  146. 146. Hexadecimal to Octal Hexadecimal to Octal • Technique • Use binary as an intermediary 148
  147. 147. Examp le Examp le 1F0C16 = ?8 1 F 0 C 0001 1111 0000 1100 1 7 4 1 4 1F0C16 = 174148 149
  148. 148. Exercise – Convert ... Exercise – Convert ... Don’t use a calculator! Decimal Binary Octal Hexa- decimal 33 1110101 703 1AF 150
  149. 149. Exercise – Convert … Exercise – Convert … Decimal Binary Octal Hexa- decimal 33 100001 41 21 117 1110101 165 75 451 111000011 703 1C3 431 110101111 657 1AF Answer 151
  152. 152. ELECTRONIC SPREADSHEETS & PRESENTATION GRAPHICS ELECTRONIC SPREADSHEETS & PRESENTATION GRAPHICS Electronic Spreadsheets  Worksheet of rows and columns  Used for calculations and charts  E.g., Lotus 1-2-3, Microsoft Excel, Corel QuattroPro, BO XI Presentation Graphics  Convert numeric data into graphics displays  Prepare multimedia presentations including graphics, photos, animation, and video clips  E.g., Microsoft PowerPoint, Lotus Freelance, Corel Presentations
  154. 154. PERSONAL INFORMATION MANAGER & GROUPWARE PERSONAL INFORMATION MANAGER & GROUPWARE Personal Information Manager (PIM)  Software for end user productivity and collaboration  Store information about clients, schedules, manage appointments, manage tasks  E.g., Lotus Organizer, Microsoft Outlook Groupware  Software that helps workgroups collaborate on group assignments  E-mail, discussion groups, databases, videoconferencing  E.g., Lotus Notes, Novell GroupWise, Microsoft Exchange
  156. 156. SOFTWARE ALTERNATIVESSOFTWARE ALTERNATIVES • Outsourcing development and maintenance of software • Application service providers (ASPs) • Companies that own, operate and maintain application software and computer system resources • Use the application for a fee over the Internet • Pay-as-you-go
  158. 158. SOFTWARE LICENSINGSOFTWARE LICENSING • All software (COTS, ASP) is licensed • You don’t buy software: you buy a license to use the software under the terms of the licensing agreement • Licensed to protect the vendor’s property rights
  159. 159. SYSTEM SOFWARESYSTEM SOFWARE Software that manages and supports a computer system System management programs  Programs that manage hardware, software, network, and data resources  E.g., operating systems, network management programs, database management systems, systems utilities Systems development programs  Programs that help users develop information system programs
  161. 161. OPERATING SYSTEMOPERATING SYSTEM • Integrated system of programs that • Manages the operations of the CPU • Controls the input/output and storage resources and activities of the computer system • Provides support services as computer executes applications programs
  163. 163. USER INTERFACEUSER INTERFACE • Part of the operating system that allows you to communicate with it • Three main types: • Command-driven • Menu-driven • Graphical user interfaces (GUI)
  165. 165. RESOURCE MANAGEMENTRESOURCE MANAGEMENT • Part of operating system that manages the hardware and networking resources of a computer system • Includes CPU, memory, secondary storage device, telecommunications, and input/output peripherals
  166. 166. FILE MANAAGEMENTFILE MANAAGEMENT • Part of the operating system that controls the creation, deletion, and access of files of data and programs
  168. 168. TASK MANAGEMENTTASK MANAGEMENT • Part of the operating system that manages the accomplishment of computing tasks of the end users • Multitasking • Task management approach that allows for several tasks to be performed in a seemingly simultaneous fashion • Also called multiprogramming or time-sharing
  170. 170. POPULAR OSPOPULAR OS • Windows • GUI, multitasking, networking, multimedia • Microsoft’s operating system • Different versions manage servers • Unix • Multitasking, multiuser, network-managing • Portable – can run on mainframes, midrange and PCs • Linux • Low-cost, powerful reliable Unix-like operating system • Open-source • MAC OS X • Apple operating system for the iMac • GUI, multitasking, multimedia
  171. 171. OTHER SYSTEM SOFTWAREOTHER SYSTEM SOFTWARE Utilities  Miscellaneous housekeeping functions  Example, Norton utilities includes data backup, virus protection, data compression, etc. Performance monitors  Programs that monitor and adjust computer system to keep them running efficiently Security monitors  Programs that monitor and control use of computer systems to prevent unauthorized use of resources
  172. 172. WEB LANGUAGESWEB LANGUAGES • HTML • A page description language that creates hypertext documents for the Web • XML • Describes the contents of Web pages by applying identifying tags or contextual labels to the data in Web documents • Java • Object-oriented programming language that is simple, secure and platform independent • Java applets can be executed on any computer
  174. 174. Data ResouRce ManageMent Data ResouRce ManageMent
  175. 175. Foundation Data ConceptsFoundation Data Concepts Data Organization Structure is logically organized into:-Data Organization Structure is logically organized into:-  Character  Field  Record  File  Database Like writing can be organized into letters, word, paragraph & sentences
  176. 176. CHARACTERCHARACTER • Consists of a single alphabets, numeric or other symbol. • It is a byte used to represent a particular character.
  177. 177. fieldfield • Consists of a grouping of related characters. • E.g., person names represent the name field. i.e., last name, first name, state, city, telephone #
  178. 178. RECORDRECORD • Fields when grouped together make a record. • An allocation of attributes to describe any entity. • E.g., • Person payroll records • Employee claims record • Student academic records
  179. 179. FILEFILE • Group of related records is a data file or table. • A single table may be referred to as a flat file. • E.g., • Employee file • Student file • Inventory file • Payroll file etc
  180. 180. DATABASEDATABASE • An integrated collection of logically related data elements. • It contains all the records
  181. 181. Foundation Data ConceptsFoundation Data Concepts Employee Record 1 Employee Record 2 Employee Record 3 Employee Record 4 Name Field SS No. Field Salary Field Name Field SS No. Field Salary Field Name Field SS No. Field Salary Field Name Field SS No. Field Salary Field Jones T.A. 275-32-3874 20,000 Klugman J.L. 349-88-7913 28,000 Alverez, J.S. 542-40-3718 100,000 Porter, M.L. 617-87-7915 50,000 Human Resource Database Payroll File Benefit File Data Organization StructureData Organization Structure
  182. 182. Foundation Data ConceptsFoundation Data Concepts Electric Utility Database Entities: Customers, Meters, Bills, Payments, Meter Readings Relationships: Bills Sent to Customers Customers Make Payments Customers Use Meters Billing Meter Reading Payment Processing Service Start/Stop Example: An Electric Utility DatabaseExample: An Electric Utility Database
  183. 183. DATABASE STRUCTURESDATABASE STRUCTURES • DBMS packages are designed to use specific data structures to provide end users with quick; easy access to information stored in the databases.
  184. 184. DATABASE STRUCTURESDATABASE STRUCTURES  Five Major Database StructuresFive Major Database Structures •Hierarchical Structure •Network Structure •Relational Model •Object-Oriented •Multidimensional Structure
  185. 185. HIERARCHICAL STRUCTUREHIERARCHICAL STRUCTURE • One-to-many relationship • Relationship b/w records from a hierarchy structure all of them are dependent. • Root element
  186. 186. NETWORK STRUCTURENETWORK STRUCTURE • Allow many-to-many relationships among records. • E.g., employee records can be related to more than one project record & vice versa.
  187. 187. RELATIONAL STRUCTURERELATIONAL STRUCTURE • It is used by most microcomputers DBMS packages as well as by both midrange & mainframes systems. • In this, all data elements within the database are viewed as being stored in the form of simple two dimensional tables sometimes referred to as relations . Department Table Employee Table Deptno Dname Dloc Dmgr Empno Ename Etitle Esalary Deptno Emp 1 Emp 2 Emp 3 Emp 4 Emp 5 Emp 6 Dept A Dept B Dept C Dept A Dept B Dept A Dept B Dept C Dept B
  189. 189. Object-oriented structureObject-oriented structure Attributes •Customer •Balance •Interest Operations •Deposit (Amount) •Withdraw (Amount) •Get Owner Attributes •Credit Line •Monthly Statements Operations •Calculate Interest •Print Monthly Statement Attributes •Number of Withdrawals •Quarterly Statement Operations •Calculate Interest Paid •Print Quarterly Statement Bank Account Object Checking Account Object Savings Account Object Inheritance Inheritance Web basedWeb based applicationsapplications Describing theDescribing the attributes of anattributes of an entity, plus theentity, plus the operations that canoperations that can be performs upon thebe performs upon the datadata SupportsSupports inheritanceinheritance
  190. 190. Object-oriented structureObject-oriented structure
  191. 191. Database DevelopmentDatabase Development Database management packages like Microsoft Access or Lotus Approach allow end users to easily develop the database they need.
  192. 192. Database DevelopmentDatabase Development • Database Administrators (DBAs) • Data Definition Language (DDL) • Oracle 10g or IBM DB2 • Data Dictionary or Metadata Repository • Database management catalog or directory that contain metadata. • Relies on specialized database software component to manage a database. • Metadata • Data on data
  193. 193. Data MiningData Mining • Identify New Product Bundles • Find Root Causes to Quality or Manufacturing Problems • Prevent Customer Attrition • Cross-Sell to Existing Customers • Profile Customers with More Accuracy
  194. 194. Types of DatabasesTypes of Databases • Operational Databases • Distributed Databases • External Databases • Hypermedia Databases
  195. 195. Distributed Database ModelDistributed Database Model Client PC Distributed Databases on Intranets and Other Networks End User Databases Data Warehouse Data Marts Operational Databases of the Organization Network Server External Databases on the Internet and Online Services
  196. 196. Operational DatabasesOperational Databases Types of DatabasesTypes of Databases
  197. 197. Web-Based Information SystemWeb-Based Information System Web Browser The Internet Intranets Extranets Web Server Software HTML XML Web Pages Image Files Video Files Audio Files Network Server Client PCs Hypermedia Database Types of DatabasesTypes of Databases
  198. 198. Data WarehousesData Warehouses Applications Data Marts Finance Marketing Sales Accounting Management Reporting ERP Purchasing CRM Inveentory Control Shipping Logistics
  199. 199. 5-202 Data Warehouse ComponentsData Warehouse Components
  200. 200. 5-203 Applications and Data MartsApplications and Data Marts
  201. 201. 5-204 Database Management SystemDatabase Management System • In mainframe and server computer systems, a software package that is used to… • Create new databases and database applications • Maintain the quality of the data in an organization’s databases • Use the databases of an organization to provide the information needed by end users
  202. 202. 5-205 Common DBMS Software ComponentsCommon DBMS Software Components • Database definition • Language and graphical tools to define entities, relationships, integrity constraints, and authorization rights • Nonprocedural access • Language and graphical tools to access data without complicated coding • Application development • Graphical tools to develop menus, data entry forms, and reports
  203. 203. 5-206 Common DBMS Software ComponentsCommon DBMS Software Components • Procedural language interface • Language that combines nonprocedural access with full capabilities of a programming language • Transaction processing • Control mechanism prevents interference from simultaneous users and recovers lost data after a failure • Database tuning • Tools to monitor, improve database performance
  204. 204. 5-207 Database Management SystemDatabase Management System • Database Development • Defining and organizing the content, relationships, and structure of the data needed to build a database • Database Application Development • Using DBMS to create prototypes of queries, forms, reports, Web pages • Database Maintenance • Using transaction processing systems and other tools to add, delete, update, and correct data
  205. 205. 5-208 DBMS Major FunctionsDBMS Major Functions
  206. 206. 5-209 Database InterrogationDatabase Interrogation • End users use a DBMS query feature or report generator • Response is video display or printed report • No programming is required • Query language • Immediate response to ad hoc data requests • Report generator • Quickly specify a format for information you want to present as a report
  207. 207. 5-210 Database InterrogationDatabase Interrogation • SQL Queries • Structured, international standard query language found in many DBMS packages • Query form is SELECT…FROM…WHERE…
  208. 208. 5-211 Database InterrogationDatabase Interrogation • Boolean Logic • Developed by George Boole in the mid-1800s • Used to refine searches to specific information • Has three logical operators: AND, OR, NOT • Example • Cats OR felines AND NOT dogs OR Broadway
  209. 209. 5-212 Database InterrogationDatabase Interrogation • Graphical and Natural Queries • It is difficult to correctly phrase SQL and other database language search queries • Most DBMS packages offer easier-to-use, point-and-click methods • Translates queries into SQL commands • Natural language query statements are similar to conversational English
  210. 210. 5-213 Graphical Query WizardGraphical Query Wizard
  211. 211. 5-214 Database MaintenanceDatabase Maintenance • Accomplished by transaction processing systems and other applications, with the support of the DBMS • Done to reflect new business transactions and other events • Updating and correcting data, such as customer addresses
  212. 212. 5-215 Application DevelopmentApplication Development • Use DBMS software development tools to develop custom application programs • Not necessary to develop detailed data-handling procedures using conventional programming languages • Can include data manipulation language (DML) statements that call on the DBMS to perform necessary data handling
  213. 213. Telecommunications and Networks Telecommunications and Networks
  214. 214. 6-217 Types of Communications NetworksTypes of Communications Networks • Primary types of communications networks • Wide Area • Local Area • Virtual Private • Client/Server • Peer-to-peer
  215. 215. 6-218 Wide Area Network (WAN)Wide Area Network (WAN) • Telecommunication network that covers a large geographic area
  216. 216. 6-219 Local Area Network (LAN)Local Area Network (LAN) • Connects computers within a limited physical area, such as an office, classroom, or building
  217. 217. 6-220 Virtual Private Networks (VPN)Virtual Private Networks (VPN) • Used to establish secure intranets and extranets • The Internet is the main backbone network • Relies on network firewalls, encryption, and other security features to build a “pipe” through the Internet • Creates a private network without the high cost of a separate proprietary connection
  218. 218. 6-221 Virtual Private NetworkVirtual Private Network
  219. 219. 6-222 Client/Server NetworksClient/Server Networks • Clients • End user personal computers or networked computers • Servers • Used to manage the networks • Processing • Shared between the clients and servers • Sometimes called a two-tier architecture • Larger computer systems are being replaced with multiple client/server networks
  220. 220. 6-223 Client/Server NetworkClient/Server Network
  221. 221. 6-224 Network ComputingNetwork Computing • Networks are the central computing resource of the organization • Thin clients provide a browser-based user interface for processing applets • Thin clients include • Network computers • Net PCs • Other low-cost network devices or information appliances
  222. 222. 6-225 Network ComputingNetwork Computing • Application and database servers provide • The operating system • Application software • Applets • Databases • Database management software • Sometimes called a three-tier client/server model because it consists of • Thin clients • Application servers • Database servers
  223. 223. 6-226 Network ComputingNetwork Computing
  224. 224. 6-227 Peer-to-Peer NetworksPeer-to-Peer Networks • Central Server Architecture • P2P file-sharing software connects all PCs to a central server • When a PC requests a file, the server searches all active peers on the network • The server sends the requesting PC a list of links to all active peers who have the file • Clicking a link connects the two PCs and automatically transfers the file to the requesting PC
  225. 225. 6-228 Peer-to-Peer NetworksPeer-to-Peer Networks • Pure Peer-to-Peer Architecture • No central directory or server • File-sharing software connects one PC to another online user • When you request a file, the software searches every online user and sends you a list of active file names • Clicking a link automatically transfers the file from that user’s hard drive to yours
  226. 226. 6-229 Central Server Peer-to-Peer NetworksCentral Server Peer-to-Peer Networks • Advantages • Can better protect the integrity and security of the content and users of the network • Disadvantages • Directory server can be slowed or overwhelmed by too many users or technical problems
  227. 227. 6-230 Peer-to-Peer Network DiagramsPeer-to-Peer Network Diagrams
  228. 228. 6-231 Digital and Analog SignalsDigital and Analog Signals • Analog or digital refers to the method used to convert information into an electrical signal • Analog: an electrical current is generated that is proportional to the quantity being observed • Digital: the quantity being observed is expressed as a number • Analog: if the temperature is 83 degrees, a measuring device would generate 8.3 volts • Digital: a measurement of 83 degrees would be displayed as the number 83
  229. 229. 6-232 Telecommunications MediaTelecommunications Media • Twisted-Pair Wire • Ordinary telephone wire • Copper wire is twisted into pairs
  230. 230. 6-233 Telecommunications MediaTelecommunications Media • Coaxial Cable • Sturdy copper or aluminum wire wrapped with spacers to insulate and protect it
  231. 231. 6-234 Telecommunications MediaTelecommunications Media • Fiber-Optic Cable • One or more hair-thin filaments of glass fiber wrapped in a protective jacket
  232. 232. 6-235 The Problem of “The Last Mile”The Problem of “The Last Mile” • Network providers use fiber optic cable as a communications backbone • Houses connected to the backbone are wired with twisted pair • Users don’t benefit from the faster, better technology
  233. 233. 6-236 Wireless TechnologiesWireless Technologies • Terrestrial Microwave • Earthbound microwave systems transmit high-speed radio signals • Follows a line-of-sight path between relay systems spaced about 30 miles apart • Communications Satellites • Serve as relay stations • Use microwave radio signals • Earth stations beam signals to the satellites • Not suitable for interactive, real-time processing
  234. 234. 6-237 Wireless TechnologiesWireless Technologies • Cellular and PCS Telephone and Pager Systems • Geographic areas are divided into cells • Each cell has a low-power transmitter or radio relay antenna • Computers and other communications processors coordinate and control the transmissions to and from mobile users
  235. 235. 6-238 Wireless TechnologiesWireless Technologies • Wireless LANS • Uses wireless radio-wave technology to connect PCs within an office or a building • Can be high-frequency, similar to digital cellular, or low frequency (spread spectrum) • Bluetooth • Short-range wireless technology • Connects PCs to devices, such as a printer • Fairly low cost to implement
  236. 236. 6-239 Wireless TechnologiesWireless Technologies • Other Wireless Systems • Cellular phones • Mobile radio • PDAs • Telecommunications networks now play vital and pervasive roles in • Web-enabled e-business processes • Electronic commerce • Enterprise collaboration • Other applications that support business operations, management, and strategic objectives
  237. 237. 6-240 The Wireless WebThe Wireless Web • Wireless Internet access is growing as Web- enabled information appliances proliferate • Smart telephones, pagers, PDAs • All are very thin clients in wireless networks
  238. 238. 6-241 Telecommunications ProcessorsTelecommunications Processors • Modems • The most common type of communications processor • Converts a digital signal to an analog frequency that can be transmitted over phone lines, then back into a digital signal • Modulation and demodulation
  239. 239. 6-242 Comparing TechnologiesComparing Technologies
  240. 240. 6-243 Inter-Network ProcessorsInter-Network Processors • Switch… makes connections between telecommunications circuits in a network • Router… intelligent communications processor that interconnects networks based on different protocols • Hub… a port-switching communications processor • Gateway… connects networks with different communications architectures
  241. 241. 6-244 Communications ProcessorsCommunications Processors
  242. 242. 6-245 Communications ProcessorsCommunications Processors • Multiplexer… allows a single communications channel to carry simultaneous data transmissions from many terminals • In time division multiplexing (TDM), the multiplexer divides the time each terminal can use the high-speed into short time slots • Multiplexers increase the number of transmissions possible • Does not increase the number of physical data channels
  243. 243. 6-246 Telecommunications SoftwareTelecommunications Software • May reside in PCs, servers, mainframes, and communications processors • Vital part of all telecommunications networks • Used to manage network performance • WANs often use telecommunications monitors or teleprocessing monitors • Other networks use operating system software • Middleware helps diverse networks communicate with each other
  244. 244. 6-247 Network Management FunctionsNetwork Management Functions • Traffic Management • Manage network resources and traffic to avoid congestion and optimize service levels • Security • Provide authentication, encryption, firewall, auditing, and enforcement • Network Monitoring • Troubleshoot and watch over the network, alerting administrators of potential problems
  245. 245. 6-248 Network Management FunctionsNetwork Management Functions • Capacity Planning • Survey network resources, traffic patterns, and users’ needs • Determine the best way to accommodate the needs of the network as it grows and changes
  246. 246. 6-249 Network TopologiesNetwork Topologies • Topology • The structure of a network • Star Network • Ties end user computers to a central computer • Ring Network • Ties local computer processors together in a ring on a relatively equal basis • Bus Network • Local processors share the same communications channel
  247. 247. 6-250 Network TopologiesNetwork Topologies • Mesh Network • Uses direct communications lines to connect some or all of the computers in the ring to each other • Switch • A message-switching computer that handles data communication between autonomous local computers
  248. 248. 6-251 Network TopologiesNetwork Topologies
  249. 249. 6-252 Network Architectures and ProtocolsNetwork Architectures and Protocols • Protocol • A standard set of rules and procedures for the control of communications in a network • Handshaking • The process of exchanging predetermined signals and characters • Establishes a telecommunications session between terminals and computers
  250. 250. 6-253 Network Architectures and ProtocolsNetwork Architectures and Protocols • Network Architecture • Master plan of standard protocols, hardware, software, and interfaces between end users and computer systems • Goal is to promote an open, simple, flexible, and efficient telecommunications environment
  251. 251. 6-254 OSI and TCP/IP ModelsOSI and TCP/IP Models • Open Systems Interconnection (OSI) Model • A seven-layer model that serves as a standard model for network architectures • Model for how messages should be transmitted between two points in a network • Each layer adds functions • Transmission Control Protocol/Internet Protocol (TCP/IP) • A five-layer telecommunications protocol used by the Internet
  252. 252. 6-255 OSI and TCP/IP ModelsOSI and TCP/IP Models
  253. 253. 6-256 Voice Over IPVoice Over IP • Internet Telephony • Using an Internet connection to pass voice data using IP instead of a telephone network • Often referred to as voice over IP or VoIP • Works like a regular phone, but skips long- distance charges • Runs over standard network infrastructure • Requires a well-configured network to work smoothly
  254. 254. 6-257 BandwidthBandwidth • Bandwidth • The frequency range of a telecommunications channel that determines the maximum transmission rate • Speed and capacity typically measured in bits per second (bps) • Sometimes call baud rate • Transmission Rates • Narrow-band = low speed • Broadband = high speed
  255. 255. 6-258 Transmission SpeedsTransmission Speeds
  256. 256. 6-259 Switching AlternativesSwitching Alternatives • Circuit Switching • Switch opens a circuit to establish a link between a sender and a receiver • It remains open until the communication session is completed • Packet Switching • Breaks messages into groups called packets • Transmits packets separately
  257. 257. 6-260 Network InteroperabilityNetwork Interoperability • Ensures that anyone anywhere on one network can communicate with anyone anywhere on another network • From a telecommunications perspective, no need to speak a common language • Telecommunications would be possible without • Complete accessibility • Transparency • Seamless interoperability across all networks
  258. 258. ElEctronic BusinEss systEmsElEctronic BusinEss systEms
  259. 259. 7-262 Enterprise Business SystemsEnterprise Business Systems • E-business means using the Internet, other networks, and IT to support • Electronic commerce • Enterprise communications and collaboration • Web-enabled business processes • E-commerce is the buying, selling, and marketing of products, services, and information over the Internet and other networks
  260. 260. 7-263 Cross-Functional SystemsCross-Functional Systems • Cross the boundaries of traditional business functions • Used to reengineer and improve vital business processes all across the enterprise
  261. 261. 7-264 Enterprise Application ArchitectureEnterprise Application Architecture
  262. 262. 7-265 Enterprise Application ArchitectureEnterprise Application Architecture • Provides a conceptual framework • Helps visualize the basic components, processes, and interfaces of major e-business applications • Focuses on accomplishing fundamental business processes in concert with • Customers • Suppliers • Partners • Employees
  263. 263. 7-266 Enterprise Application ArchitectureEnterprise Application Architecture • Enterprise Resource Planning (ERP) • Concentrates on the efficiency of internal production, distribution, and financial processes • Customer Relationship Management (CRM) • Focuses on acquiring and retaining profitable customers via marketing, sales, and services • Partner Relationship Management (PRM) • Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services
  264. 264. 7-267 Enterprise Application ArchitectureEnterprise Application Architecture • Supply Chain Management (SCM) • Focuses on developing the most efficient and effective sourcing and procurement processes • Knowledge Management (KM) • Focuses on facilitating internal group collaboration and decision support
  265. 265. 7-268 Enterprise Application IntegrationEnterprise Application Integration • EAI software connects cross-functional systems • Serves as middleware to provide • Data conversion • Communication between systems • Access to system interfaces
  266. 266. 7-269 Transaction Processing SystemsTransaction Processing Systems • Cross-functional information systems that process data resulting from the occurrence of business transactions • Transactions include sales, purchases, deposits, withdrawals, refunds, and payments • Online transaction processing (OLTP) is a real- time system that captures transactions immediately
  267. 267. 7-270 Transaction Processing SystemsTransaction Processing Systems
  268. 268. 7-271 The Transaction Processing CycleThe Transaction Processing Cycle
  269. 269. 7-272 Enterprise Collaboration Systems (ECS)Enterprise Collaboration Systems (ECS) • EC systems are cross-functional information systems that enhance team and workgroup • Communication • Coordination • Collaboration • Systems may include • Networked PC workstations • Servers • Databases • Groupware and application packages
  270. 270. 7-273 ECS ToolsECS Tools
  271. 271. 7-274 Functional Business SystemsFunctional Business Systems • A variety of types of information systems that support the business functions of • Accounting • Finance • Marketing • Operations management • Human resource management
  272. 272. 7-275 IT in BusinessIT in Business
  273. 273. 7-276 Marketing SystemsMarketing Systems • Marketing systems are concerned with • Planning, promotion, and sale of existing products in existing markets • Development of new products and new markets • Better attracting and serving present and potential customers
  274. 274. 7-277 Marketing Information SystemsMarketing Information Systems
  275. 275. 7-278 Interactive MarketingInteractive Marketing • Interactive Marketing • A customer-focused marketing process • Uses the Internet, intranets, and extranets • Establishes two-way transactions between a business and its customers or potential customers • Goal • Profitably use networks to attract and keep customers • Get customers to help create, purchase, and improve products and services
  276. 276. 7-279 Targeted MarketingTargeted Marketing • An advertising and promotion management concept with five targeting components
  277. 277. 7-280 Targeted Marketing ComponentsTargeted Marketing Components • Community: customized ads to appeal to specific virtual communities • Content: ads placed on a variety of selected websites, aimed at a specific audience • Context: ads placed on web pages that are relevant to a product or service • Demographic/Psychographic: web marketing aimed at specific types or classes of people • Online behavior: promotions tailored to each visit to a site by an individual
  278. 278. 7-281 Sales Force AutomationSales Force Automation • Outfit sales force with notebook computers, web browsers, and sales contact software • Connect them to marketing websites and the company intranet • Goals • Increase personal productivity • Speed up capture and analysis of sales data • Gain strategic advantage
  279. 279. 7-282 Manufacturing Information SystemsManufacturing Information Systems • Supports the production/operations functions • Includes all activities concerned with planning and control of the processes producing goods or services
  280. 280. 7-283 Computer-Integrated ManufacturingComputer-Integrated Manufacturing
  281. 281. 7-284 CIM ObjectivesCIM Objectives • Simplify production processes, product designs, and factory organization • Automate production processes and the business functions that support them • Integrate all production and support processes using • Networks • Cross-functional business software • Other information technologies
  282. 282. 7-285 CIM SystemsCIM Systems • Computer-aided manufacturing (CAM) • Automate the production process • Manufacturing execution systems (MES) • Performance monitoring information systems for factory floor operations • Process control • Control ongoing physical processes • Machine control • Controls the actions of machines
  283. 283. 7-286 Human Resource Management (HRM)Human Resource Management (HRM) • Information systems designed to support • Planning to meet personnel needs • Development of employees to their full potential • Control of all personnel policies and programs
  284. 284. 7-287 HRM SystemsHRM Systems
  285. 285. 7-288 HRM and the InternetHRM and the Internet • Recruiting employees using the corporate website and commercial recruiting services • Posting messages in selected Internet newsgroups • Communicating with job applicants via e-mail
  286. 286. 7-289 HRM and Corporate IntranetsHRM and Corporate Intranets • Corporate intranet uses • Process common HRM transactions • Allow around-the-clock HRM services • Disseminate information faster than through previous company channels • Collect information from employees online • Allow HRM tasks to be performed with little HRM department intervention • Training
  287. 287. 7-290 Employee Self-ServiceEmployee Self-Service • Intranet applications can allow employees to • View benefits • Enter travel and expense reports • Verify employment and salary information • Access and update personal information • Enter time-sensitive data
  288. 288. 7-291 Accounting Information SystemsAccounting Information Systems • The oldest and most widely used information system in business • Records and reports business transactions and economic events • Produces financial statements • Forecasts future conditions
  289. 289. 7-292 Accounting Information SystemsAccounting Information Systems • Typically consists of • Order processing • Inventory control • Accounts receivable • Accounts payable • Payroll • General ledger systems
  290. 290. 7-293 Accounting Information SystemsAccounting Information Systems
  291. 291. 7-294 Financial Management SystemsFinancial Management Systems • Supports business managers and professionals making decisions concerning • The financing of a business • The allocation and control of financial resources within a business
  292. 292. 7-295 Financial Management System ExampleFinancial Management System Example
  293. 293. EntErprisE BusinEss systEmsEntErprisE BusinEss systEms
  294. 294. 8-297 What is CRM?What is CRM? • Managing the full range of the customer relationship involves • Providing customer-facing employees with a single, complete view of every customer at every touch point and across all channels • Providing the customer with a single, complete view of the company and its extended channels • CRM uses IT to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes
  295. 295. 8-298 Application Clusters in CRMApplication Clusters in CRM
  296. 296. 8-299 Contact and Account ManagementContact and Account Management • CRM helps sales, marketing, and service professionals capture and track relevant data about • Every past and planned contact with prospects and customers • Other business and life cycle events of customers • Data are captured through customer touchpoints • Telephone, fax, e-mail • Websites, retail stores, kiosks • Personal contact
  297. 297. 8-300 SalesSales • A CRM system provides sales reps with the tools and data resources they need to • Support and manage their sales activities • Optimize cross- and up-selling • CRM also provides the means to check on a customer’s account status and history before scheduling a sales call
  298. 298. 8-301 Marketing and FulfillmentMarketing and Fulfillment • CRM systems help with direct marketing campaigns by automatic such tasks as • Qualifying leads for targeted marketing • Scheduling and tracking mailings • Capturing and managing responses • Analyzing the business value of the campaign • Fulfilling responses and requests
  299. 299. 8-302 Customer Service and SupportCustomer Service and Support • A CRM system gives service reps real-time access to the same database used by sales and marketing • Requests for service are created, assigned, and managed • Call center software routes calls to agents • Help desk software provides service data and suggestions for solving problems • Web-based self-service enables customers to access personalized support information
  300. 300. 8-303 Retention and Loyalty ProgramsRetention and Loyalty Programs • It costs 6 times more to sell to a new customer • An unhappy customer will tell 8-10 others • Boosting customer retention by 5 percent can boost profits by 85 percent • The odds of selling to an existing customer are 50 percent; a new one 15 percent • About 70 percent of customers will do business with the company again if a problem is quickly taken care of
  301. 301. 8-304 Retention and Loyalty ProgramsRetention and Loyalty Programs • Enhancing and optimizing customer retention and loyalty is a primary objective of CRM • Identify, reward, and market to the most loyal and profitable customers • Evaluate targeted marketing and relationship programs
  302. 302. 8-305 The Three Phases of CRMThe Three Phases of CRM
  303. 303. 8-306 Benefits of CRMBenefits of CRM • Benefits of CRM • Identify and target the best customers • Real-time customization and personalization of products and services • Track when and how a customer contacts the company • Provide a consistent customer experience • Provide superior service and support across all customer contact points
  304. 304. 8-307 CRM FailuresCRM Failures • Business benefits of CRM are not guaranteed • 50 percent of CRM projects did not produce promised results • 20 percent damaged customer relationships • Reasons for failure • Lack of understanding and preparation • Not solving business process problems first • No participation on part of business stakeholders involved
  305. 305. 8-308 Trends in CRMTrends in CRM • Operational CRM • Supports customer interaction with greater convenience through a variety of channels • Synchronizes customer interactions consistently across all channels • Makes the company easier to do business with
  306. 306. 8-309 Trends in CRMTrends in CRM • Analytical CRM • Extracts in-depth customer history, preferences, and profitability from databases • Allows prediction of customer value and behavior • Allows forecast of demand • Helps tailor information and offers to customer needs
  307. 307. 8-310 Trends in CRMTrends in CRM • Collaborative CRM • Easy collaboration with customers, suppliers, and partners • Improves efficiency and integration throughout supply chain • Greater responsiveness to customer needs through outside sourcing of products and services
  308. 308. 8-311 Trends in CRMTrends in CRM • Portal-based CRM • Provides users with tools and information that fit their needs • Empowers employees to respond to customer demands more quickly • Helps reps become truly customer-faced • Provides instant access to all internal and external customer information
  309. 309. 8-312 ERP: The Business BackboneERP: The Business Backbone • ERP is a cross-functional enterprise backbone that integrates and automates processes within • Manufacturing • Logistics • Distribution • Accounting • Finance • Human resources
  310. 310. 8-313 What is ERP?What is ERP? • Enterprise resource planning is a cross-functional enterprise system • An integrated suite of software modules • Supports basic internal business processes • Facilitates business, supplier, and customer information flows
  311. 311. 8-314 ERP Application ComponentsERP Application Components
  312. 312. 8-315 ERP Process and Information FlowsERP Process and Information Flows
  313. 313. 8-316 Benefits and Challenges of ERPBenefits and Challenges of ERP • ERP Business Benefits • Quality and efficiency • Decreased costs • Decision support • Enterprise agility • ERP Costs • Risks and costs are considerable • Hardware and software are a small part of total costs • Failure can cripple or kill a business
  314. 314. 8-317 Costs of Implementing a New ERPCosts of Implementing a New ERP
  315. 315. 8-318 Causes of ERP FailuresCauses of ERP Failures • Most common causes of ERP failure • Under-estimating the complexity of planning, development, training • Failure to involve affected employees in planning and development • Trying to do too much too fast • Insufficient training • Insufficient data conversion and testing • Over-reliance on ERP vendor or consultants
  316. 316. 8-319 Trends in ERPTrends in ERP
  317. 317. 8-320 Supply Chain Management (SCM)Supply Chain Management (SCM) • Fundamentally, supply chain management helps a company • Get the right products • To the right place • At the right time • In the proper quantity • At an acceptable cost
  318. 318. 8-321 Goals of SCMGoals of SCM • The goal of SCM is to efficiently • Forecast demand • Control inventory • Enhance relationships with customers, suppliers, distributors, and others • Receive feedback on the status of every link in the supply chain
  319. 319. 8-322 What is a Supply Chain?What is a Supply Chain? • The interrelationships • With suppliers, customers, distributors, and other businesses • Needed to design, build, and sell a product • Each supply chain process should add value to the products or services a company produces • Frequently called a value chain
  320. 320. 8-323 Supply Chain Life CycleSupply Chain Life Cycle
  321. 321. 8-324 Electronic Data InterchangeElectronic Data Interchange • EDI • One of the earliest uses of information technology for supply chain management • The electronic exchange of business transaction documents between supply chain trading partners • The almost complete automation of an e- commerce supply chain process • Many transactions occur over the Internet, using secure virtual private networks
  322. 322. 8-325 Typical EDI ActivitiesTypical EDI Activities
  323. 323. 8-326 Roles and Activities of SCM in BusinessRoles and Activities of SCM in Business
  324. 324. 8-327 Planning & Execution Functions of SCMPlanning & Execution Functions of SCM • Planning • Supply chain design • Collaborative demand and supply planning • Execution • Materials management • Collaborative manufacturing • Collaborative fulfillment • Supply chain event management • Supply chain performance management
  325. 325. 8-328 Benefits and Challenges of SCMBenefits and Challenges of SCM • Key Benefits • Faster, more accurate order processing • Reductions in inventory levels • Quicker times to market • Lower transaction and materials costs • Strategic relationships with supplier
  326. 326. 8-329 Goals and Objectives of SCMGoals and Objectives of SCM
  327. 327. 8-330 Benefits and Challenges of SCMBenefits and Challenges of SCM • Key Challenges • Lack of demand planning knowledge, tools, and guidelines • Inaccurate data provided by other information systems • Lack of collaboration among marketing, production, and inventory management • SCM tools are immature, incomplete, and hard to implement
  328. 328. 8-331 Trends in SCMTrends in SCM
  329. 329. ElEctronic commErcE SyStEmSElEctronic commErcE SyStEmS
  330. 330. 9-333 The Scope of e-CommerceThe Scope of e-Commerce
  331. 331. 9-334 E-Commerce TechnologiesE-Commerce Technologies
  332. 332. 9-335 Categories of e-CommerceCategories of e-Commerce • Business-to-Consumer • Virtual storefronts, multimedia catalogs, interactive order processing, electronic payment, online customer support • Business-to-Business • Electronic business marketplaces, direct links between businesses, auctions and exchanges • Consumer-to-Consumer • Online auctions, posting to newspaper sites, personal websites, e-commerce portals
  333. 333. 9-336 Essential e-Commerce ArchitectureEssential e-Commerce Architecture
  334. 334. 9-337 Access Control and SecurityAccess Control and Security • E-commerce processes must establish mutual trust and secure access between parties • User names and passwords • Encryption key • Digital certificates and signatures • Restricted access areas • Other people’s accounts • Restricted company data • Webmaster administration areas
  335. 335. 9-338 Profiling and PersonalizingProfiling and Personalizing • Profiling gathers data on you and your website behavior and choices • User registration • Cookie files and tracking software • User feedback • Profiling is used for • Personalized (one-to-one) marketing • Authenticating identity • Customer relationship management • Marketing planning • Website management
  336. 336. 9-339 Search ManagementSearch Management • Search processes help customers find the specific product or service they want • E-commerce software packages often include a website search engine • A customized search engine may be acquired from companies like Google or Requisite Technology • Searches are often on content or by parameters
  337. 337. 9-340 Content and Catalog ManagementContent and Catalog Management • Content Management Software • Helps develop, generate, deliver, update, and archive text and multimedia information at e-commerce websites • Catalog Management Software • Helps generate and manage catalog content • Catalog and content management software works with profiling tools to personalize content • Includes product configuration and mass customization
  338. 338. 9-341 Workflow ManagementWorkflow Management • E-business and e-commerce workflow manage- ment depends on a workflow software engine • Contains software model of business processes • Workflow models express predefined • Sets of business rules • Roles of stakeholders • Authorization requirements • Routing alternative • Databases used • Task sequences
  339. 339. 9-342 Example of Workflow ManagementExample of Workflow Management
  340. 340. 9-343 Event NotificationEvent Notification • Most e-commerce applications are event driven • Responds to such things as customer’s first website visit and payments • Monitors all e-commerce processes • Records all relevant events, including problem situations • Notifies all involved stakeholders • Works in conjunction with user-profiling software
  341. 341. 9-344 Collaboration and TradingCollaboration and Trading • Processes that support vital collaboration arrangements and trading services • Needed by customers, suppliers, and other stakeholders • Online communities of interest • E-mail, chat, discussion groups • Enhances customer service • Builds loyalty
  342. 342. 9-345 Electronic Payment ProcessesElectronic Payment Processes • Complex processes • Near-anonymous and electronic nature of transactions • Many security issues • Wide variety of debit and credit alternatives • Financial institutions may be part of the process
  343. 343. 9-346 Electronic Payment ProcessesElectronic Payment Processes • Web Payment Processes • Shopping cart process • Credit card payment process • Debit and other more complex processes • Electronic Funds Transfer (EFT) • Major payment system in banking, retail • Variety of information technologies capture and process money and credit card transfers • Most point-of-sale terminals in retail stores are networked to bank EFT systems
  344. 344. 9-347 Electronic Payment ExampleElectronic Payment Example
  345. 345. 9-348 Securing Electronic PaymentsSecuring Electronic Payments • Network sniffers easily recognize credit card formats • Encrypt data between customer and merchant • Encrypt data between customer and financial institution • Take sensitive information off-line
  346. 346. 9-349 E-Commerce Application TrendsE-Commerce Application Trends
  347. 347. 9-350 E-Commerce Success FactorsE-Commerce Success Factors • Some of the success factors in e-commerce • Selection and value • Performance and service • Look and feel • Advertising and incentives • Personal attention (one-to-one marketing) • Community relationships • Security and reliability
  348. 348. 9-351 Differences in MarketingDifferences in Marketing
  349. 349. 9-352 Web Store RequirementsWeb Store Requirements
  350. 350. 9-353 Developing a Web StoreDeveloping a Web Store • Build a website • Choose or set up web hosting • Use simple design tools and templates • Include a shopping cart and payment support • Market the website • Include Web page and e-mail advertising and promotions • Exchange advertising with other Web stores • Register with search engines and directories • Sign up for affiliate programs
  351. 351. 9-354 Serving Your CustomersServing Your Customers • Convert visitors into loyal customers • Develop one-to-one relationship with customers • Create incentives to encourage registration • Use Web cookies to identify visitors • Use tracking services to record and analyze website behavior and customer preferences • Create an attractive, friendly, efficient store • Offer fast order processing and payment • Notify when orders are processed and shipped • Provide links to related websites
  352. 352. 9-355 Managing a Web StoreManaging a Web Store • Manage both the business and the website • Record and analyze traffic, inventory, sales • Use CRM features to help retain customers • Link sales, inventory data to accounting systems • Operate 24 hours a day, seven day a week • Protect transactions and customer records • Use security monitors and firewalls • Use redundant systems and power sources • Employ passwords and encryption • Offer 24-hour tech support
  353. 353. 9-356 B2B E-CommerceB2B E-Commerce • B2B is the wholesale and supply side of the commercial process • Businesses buy, sell, or trade with other businesses • Relies on multiple electronic information technologies • Catalog systems • Trading systems • Data interchange • Electronic funds transfers
  354. 354. 9-357 E-Commerce MarketplacesE-Commerce Marketplaces • One to Many • Sell-side marketplaces • One supplier dictates product offerings and prices • Many to One • Buy-side marketplaces • Many suppliers bid for the business of a buyer • Some to Many • Distribution marketplaces • Unites suppliers who combine their product catalogs to attract a larger audience
  355. 355. 9-358 E-Commerce MarketplacesE-Commerce Marketplaces • Many to Some • Procurement marketplaces • Unites major buyers who combine purchasing catalogs • Attracts more competition and thus lower prices • Many to Many • Auction marketplaces • Dynamically optimizes prices
  356. 356. 9-359 E-Commerce PortalsE-Commerce Portals • B2B e-commerce portals offer multiple marketplaces • Catalogs • Exchanges • Auctions • Often developed and hosted by third-party market-maker companies • Infomediaries serve as intermediaries in e-business and e-commerce transactions
  357. 357. 9-360 B2B E-Commerce Web PortalB2B E-Commerce Web Portal
  358. 358. 9-361 Clicks and BricksClicks and Bricks • Success will go to those who can integrate Internet initiatives with traditional operations • Merging operations has trade-offs
  359. 359. 9-362 E-Commerce IntegrationE-Commerce Integration • The business case for merging e-commerce with traditional business operations • Move strategic capabilities in traditional operations to the e-commerce business • Integrate e-commerce into the traditional business • Sharing of established brands • Sharing of key business information • Joint buying power and distribution efficiencies
  360. 360. 9-363 Other Clicks and Bricks StrategiesOther Clicks and Bricks Strategies • Partial e-commerce integration • Joint ventures and strategic partnerships • Complete separation • Spin-off of an independent e-commerce company • Barnes and Noble’s experience • Spun off independent e-commerce company • Gained venture capital, entrepreneurial culture, and flexibility • Attracted quality management • Accelerated decision making • Failed to gain market share
  361. 361. 9-364 E-Commerce Channel ChoicesE-Commerce Channel Choices • An e-commerce channel is the marketing or sales channel created by a company for its e-commerce activities • There is no universal strategy or e-commerce channel choice • Both e-commerce integration and separation have major business benefits and shortcoming • Most businesses are implementing some measure of clicks and bricks integration
  362. 362. 9-365 E-Commerce Strategy ChecklistE-Commerce Strategy Checklist • Questions to ask and answer • What audiences are we attempting to reach? • What action do we want those audiences to take? • Who owns the e-commerce channel within the organization? • Is the e-commerce channel planned alongside other channels? • Is there a process for generating, approving, releasing, and withdrawing content? • Will our brand translate to the new channel? • How will we market the channel itself?
  363. 363. DEciSion Support SyStEmSDEciSion Support SyStEmS
  364. 364. 10-367 Levels of Managerial Decision MakingLevels of Managerial Decision Making
  365. 365. 10-368 Decision StructureDecision Structure • Structured (operational) • The procedures to follow when decision is needed can be specified in advance • Unstructured (strategic) • It is not possible to specify in advance most of the decision procedures to follow • Semi-structured (tactical) • Decision procedures can be pre-specified, but not enough to lead to the correct decision
  366. 366. 10-369 Decision Support SystemsDecision Support Systems Management Information Systems Decision Support Systems Decision support provided Provide information about the performance of the organization Provide information and techniques to analyze specific problems Information form and frequency Periodic, exception, demand, and push reports and responses Interactive inquiries and responses Information format Prespecified, fixed format Ad hoc, flexible, and adaptable format Information processing methodology Information produced by extraction and manipulation of business data Information produced by analytical modeling of business data
  367. 367. 10-370 Decision Support TrendsDecision Support Trends • The emerging class of applications focuses on • Personalized decision support • Modeling • Information retrieval • Data warehousing • What-if scenarios • Reporting
  368. 368. 10-371 Business Intelligence ApplicationsBusiness Intelligence Applications
  369. 369. 10-372 Decision Support SystemsDecision Support Systems • Decision support systems use the following to support the making of semi-structured business decisions • Analytical models • Specialized databases • A decision-maker’s own insights and judgments • An interactive, computer-based modeling process • DSS systems are designed to be ad hoc, quick-response systems that are initiated and controlled by decision makers
  370. 370. 10-373 DSS ComponentsDSS Components
  371. 371. 10-374 DSS Model BaseDSS Model Base • Model Base • A software component that consists of models used in computational and analytical routines that mathematically express relations among variables • Spreadsheet Examples • Linear programming • Multiple regression forecasting • Capital budgeting present value
  372. 372. 10-375 Applications of Statistics and ModelingApplications of Statistics and Modeling • Supply Chain: simulate and optimize supply chain flows, reduce inventory, reduce stock-outs • Pricing: identify the price that maximizes yield or profit • Product and Service Quality: detect quality problems early in order to minimize them • Research and Development: improve quality, efficacy, and safety of products and services
  373. 373. 10-376 Management Information SystemsManagement Information Systems • The original type of information system that supported managerial decision making • Produces information products that support many day-to-day decision-making needs • Produces reports, display, and responses • Satisfies needs of operational and tactical decision makers who face structured decisions
  374. 374. 10-377 Management Reporting AlternativesManagement Reporting Alternatives • Periodic Scheduled Reports • Prespecified format on a regular basis • Exception Reports • Reports about exceptional conditions • May be produced regularly or when an exception occurs • Demand Reports and Responses • Information is available on demand • Push Reporting • Information is pushed to a networked computer
  375. 375. 10-378 Example of Push ReportingExample of Push Reporting