Downloaded 17 times
![[DSBW Spring 2009] Unit 04: From Requirements to the UX Model](https://cdn.slidesharecdn.com/ss_thumbnails/unit04-starting-090328141241-phpapp02-thumbnail.jpg?width=640&height=640&fit=bounds)
Mis06
- 1. Introduction to MIS Chapter 6 Transactions and Enterprise Resource Planning Jerry Post Technology Toolbox: Selecting an ERP System Technology Toolbox: Designing an EIS Cases: Auto Industry
- 2. Outline How do you process the data from transactions and integrate the operations of the organization? How do you efficiently collect transaction data? What are the major elements and risks of a transaction? Why are transactions more difficult in an international environment? How do you track and compare the financial information of a firm? What are the transaction elements in the human resources management system? Can a company become more efficient and productive? How do businesses combine data from operations? How do you combine data across functional areas, including production, purchasing, marketing, and accounting? How do you make production more efficient? How do you keep track of all customer interactions? Who are your best customers? How can a manager handle all of the data in an ERP system? How does the CEO know that financial records are correct?
- 3. Transactions and Integration Additional CEO Information Stores Strategy Bank Tactics Warehouse Inventory Management Supplier Operations EDI POS Sales Reports Cash Registers Customers Process Control Central Computer
- 4. Data Capture Banking and Finance Sales Workers Process Control Collecting transaction data at the point of sale ensures accurate data, speeds transactions, and provides up-to-the-minute data to managers.
- 5. Radio Frequency Identification (RFID) Radio/microwaves RFID tag Simple security tag Capacitor: collected energy C B E antenna Transistors: RFID reader data Data: Alter the waves Scanner from: http://www.rfidinc.com
- 6. QR Codes Two-dimensional code. Can hold thousands of characters or digits. Can be read by cell phone cameras. Initially used for packages. Now, often used for marketing, even billboards, museum and art pieces, and bus schedules. http://qrcode.kaywa.com/ One of several Web sites to create free QR codes.
- 7. Process Control Various Production machines: lathe, press, dryer, . .. Production data: Quantity Quality Time Control Terminal Machine status Control settings and commands
- 8. Electronic Data Interchange The price of paper ◦ $30 to $40 for each purchase order ◦ $24 to $28 for suppliers to handle EDI ◦ $12 for orders ◦ 0.32 for suppliers Proprietary EDI Commercial providers and standards
- 9. EDI: Proprietary Firms must support multiple data formats and sometimes different Order computers for each contact. Database & Accounts Supplier Queries & Orders Customer 1 Production Convert Invoices & Database confirmation & Accounts Convert Customer 2
- 10. EDI Standards UNEdifact US ANSI X12 Message Segments for each area Segment Composite Data Element Detail data formats Data Element Code Lists
- 11. ANSI X12 Segments 104- Air Shipment Information Partial List of segments 110 - Air Freight Details and Invoice Detailed specifications 125 - Multilevel Railcar Load Details 126 - Vehicle Application Advice for each segment 127 - Vehicle Buying Order Data needed 128 - Dealer Information 129 - Vehicle Carrier Rate Update Format 130 - Student Educational Record (Transcript) 131 - Student Educational Record (Transcript) Acknowledgment 135 - Student Loan Application 139 - Student Loan Guarantee Result 140 - Product Registration 141 - Product Service Claim Response 142 - Product Service Claim 143 - Product Service Notification 144 - Student Loan Transfer and Status Verification 146 - Request for Student Educational Record (Transcript) 147 - Response to Request for Student Ed. Record (Transcript) 148 - Report of Injury or Illness
- 12. EDI On TheInternet Advantages ◦ Low cost. ◦ Anyone can connect. ◦ Worldwide reach. ◦ Many tools and standards. The Internet Edifact Message
- 13. Extensible Markup Language(XML) <?xml version="1.0"?> <!DOCTYPE OrderList SYSTEM "orderlist.dtd"> <OrderList> <Order> <OrderID>1</OrderID> <OrderDate>3/6/2004</OrderDate> <ShippingCost>$33.54</ShippingCost> Example <Comment>Need immediately.</Comment> <Items> <ItemID>30</ItemID> <Description>Flea Collar-Dog-Medium</Description> <Quantity>208</Quantity> <Cost>$4.42</Cost> <ItemID>27</ItemID> <Description>Aquarium Filter & Pump</Description> <Quantity>8</Quantity> Data is sent in a <Cost>$24.65</Cost> standard format that </Items> is easy for computers </Order> to parse and read. </OrderList>
- 14. XML: eXtensible MarkupLanguage Used as a standard means to transfer data to machines with unknown capabilities. Most hardware and software can read and understand the data. The tags describe the content. Usually a separate schema file is used to describe the tags and the document structure.
- 15. Extensible Business Reporting Language:XBRL http://media.ifrs.org/ixbrl_example1_2011-03-25.xhtml
- 16. XBRL Sample tag:Revenue <ix:nonFraction Attributes contextRef="y2012“ format="ixt:numcommadot" name="ifrs:Revenue" unitRef="EUR" decimals="0" scale="0" id="XWAND00000326">6,863,545 </ix:nonFraction> Data The Securities and Exchange Commission is requiring XBRL filings as of June 2011. The goal is to standardize reporting data and make it accessible to automated systems.
- 17. Transaction Risks Credit card Vendor company accepts risks 1. Receive payment. for a fee. 2. Legitimate payment. 3. Customer not repudiate sale. 4. Government not invalidate sale. Government 1. Transaction record. Customer 2. Tax records. 1. Receive product. 3. Identify fraud. 2. Charged only as agreed. 4. Track money for other 3. Seller not repudiate sale. cases (drugs). 4. Legal transaction.
- 18. Security and Trust Security Trust ◦ Each transmission is ◦ Is the vendor legitimate? encrypted. Consider: Internet gambling. Prevent interception. What if offshore vendor Keys generated by refuses to pay off a bet? certificate authority (e.g., As long as Internet gambling Verisign). is illegal (in the U.S.) ◦ Security on individual consumer has no recourse. servers is the responsibility Otherwise, use credit cards of vendor. and rely on banks. There have been some Secure certificates. thefts of data (e.g., credit- ◦ Is the customer legitimate? card numbers.) Rely on credit card data. Vendor is motivated to Some vendors will ship only secure the server. to billing address. Commercial software exists Certificate authority. to provide secure sites.
- 19. International Transaction Issues Shipping Currencies Languages Customs and tariffs Jurisdiction for disputes Different laws and systems Verify seller and purchaser Payment methods http://worldwind.arc.nasa.gov
- 20. Accounting Financial dataand reports What do things really cost? The accounting cycle Inventory Checks and balances ◦ Double-entry ◦ Separation of duties ◦ Audit trails
- 21. Accounting Banks Management and Creditors Shareholders Loans & Notes Planning Reports Cash Management Management, Reports Shareholder Strategic Investments, Reports & Tactical Foreign Planning Exchange Capital Acct Produce Governments Departments Planning Shareholder & Employees Data Reports Payroll & Produce Tax Filings Equity Expenses Employee Management Benefits Tax data Tax Payroll Accounting Filing & Reports Planning Receivables Inventory & Sales Tax Orders & Assets Sales & Accounts Payables Inventory Accounts Payable Management, Sales & Receivables Receivable & Fixed Asset & Cost Acct. Customers Purchases & Payables Inventory Changes Inventory Changes Supply & Product Suppliers In-process Inventory Inventory
- 22. Accounting Software General Ledger Accounts payable ◦ Sample chart of accounts ◦ Check reconciliation ◦ Automatic posting ◦ Automatic recurring entries ◦ Automatic entry of vendors ◦ Monitor payment discounts ◦ Fiscal years ◦ Select bills from screen ◦ Keep past data books open ◦ Pay by item, not just total bill ◦ Post to prior years General Features ◦ Allocate department expenses ◦ Printer support Accounts Receivable ◦ Use of preprinted forms ◦ Automatic early discounts ◦ Custom reports ◦ Interest on late payments ◦ Custom queries ◦ Multiple shipping addresses ◦ Security controls ◦ Sales tax ◦ Technical support costs ◦ Automatic reminder notices ◦ Automatic monthly fees ◦ Keep monthly details
- 23. The Role ofAccounting Transaction Data ◦ Journal entries—double entry: money and categories ◦ General ledger—summary data by categories ◦ Information is defined by the chart of accounts Purchases, Sales, Loans, and Investments Inventory Control Process and Controls ◦ Double-Entry Systems ◦ Separation of Duties ◦ Audit Trails ◦ Exception reports
- 24. Human Resources Management Management Compile Merit Management Managers Evaluations Reports & Salary Merit Changes Produce Evaluations Management Government Employee Produce Reports Merit & Government Salary Reports Government Salary Employee Reports Summaries EEO Process Data Employee Payroll Employee Data Data Benefits Files Screen Vacation Jobs & Job & Applications Employee Applicant Applicant Data Data Sales Data & Data Commission Employees Job Customers Applicants
- 25. Production Management Suppliers Receiving Bill of Materials Crank UL6500 Quality Pedals LK3500 Purchase Stem UL6600 Orders Saddle Selle Production … and Assembly Quality Production Information Customers System Quality Shipping Customer Order
- 26. Production Management Issues factories Multiple factories produce many items that need to be distributed to multiple stores. Ask Gitano Jeans in the 1980s How do you schedule Customers efficient production? or stores How do you ensure the right products go to the right locations?
- 27. Distribution Center Factories Split the mass production shipments into smaller units and distribute to stores immediately—without holding inventory. Customer or stores Need to match orders exactly, and carefully schedule arrival time of shipments.
- 28. Integrated Report Example Production Plant Quantity Quality Costs Prior Month Boise 260,721 9.6 $41,222,697 219,961 Decatur 171,371 8.75 $31,094,809 188,862 Yaounde 314,856 9.4 $29,119,967 406,859 746,948 9.25 $101,437,473 815,682 Wtd. Avg. 135.80 Sales Region Quantity Avg.Price Sales Prior Sales Wtd. Cost Net US East 225,091 $289.17 $65,965,373 $53,533,640 30,567,941 $35,397,432 US West 204,725 $273.20 $56,217,470 $42,018,759 27,802,185 $28,415,285 Canada 65,763 $192.00 $12,561,225 $12,327,456 8,930,786 $3,630,439 South America 67,495 $133.50 $9,013,737 $11,281,515 9,165,996 ($152,259) Other 47,313 $169.00 $7,991,533 Sales $8,120,900 6,425,228 $1,566,305 610,387 $211.37 $151,749,338 $127,282,270 82,892,136 $68,857,202 $70,000,000 $40,000,000 $60,000,000 $35,000,000 $30,000,000 $50,000,000 $25,000,000 $40,000,000 Sales $20,000,000 Prior Sales $30,000,000 $15,000,000 Net $20,000,000 $10,000,000 $10,000,000 $5,000,000 $0 $0 US East US West Canada South America Other
- 29. Changes Sales 1970s Terminals Management Central 3 reports sales (printed) Manager: weekly reports data computer: Integrate, graph Sales create reports analyze Terminals Secretary: type & revise Sales 1980s Management Terminals Central 3 reports sales (printed) Manager: weekly reports data computer: Integrate, graph Sales create reports analyze Terminals personal computer Sales 1990s Management Terminals query Personal Computer sales DBMS: Weekly reports & data Sales On-line data ad hoc queries Terminals data (applications)
- 30. Integration in 2000s Management Sales Terminals query Executive Information sales System data DBMS Personal Computer Sales Or PDA Terminals data Or Browser Suppliers Production/ Enterprise Resource Service Planning Banks
- 31. ERP Integration Headquarters (England) Subsidiary (Spain) Database Use inventory item. Database Financial data Deduct quantity. Manufacturing General ledger Update inventory value. Product details Payroll Check for reorder point. Inventory … Order new item through EDI. … Update Accounts payable. Weekly financial status. Project cost report. Cash flow. Daily production report. Budget versus actual cost.
- 32. ERP Primary Functions Accounting ◦ All transaction data and all financial statements in any currency Finance ◦ Portfolio management and financial projections Human Resources Management ◦ Employee tracking from application to release Production Management ◦ Product design and manufacturing lifecycle Logistics/Supply Chain Management ◦ Purchasing, quality control, tracking Customer Relationship Management ◦ Contacts, orders, shipments
- 33. Enterprise Resource Planning Integrated systems International environment Examples ◦ Multiple currencies ◦ Multiple languages ◦ SAP ◦ Procedures and practices ◦ PeopleSoft ◦ Follows local (national) rules ◦ Oracle Financials ◦ Follows consolidation rules Basic features included ◦ Example ◦ Accounting U.S. firm with European subsidiaries. ◦ Purchasing Data is entered once ◦ HRM European reports are generated for subsidiaries ◦ Investment management following local rules Results are converted and consolidated to U.S. firm following international and U.S. rules
- 34. SAP Based in Germany, now Financials worldwide Logistics Support for international Human resource transactions and management multinational firms Runs on multiple database and hardware platforms Can handle large and small companies Expensive, but price is relative.
- 35. SAP Financials Financial Accounting Treasury ◦ General ledger ◦ Cash management ◦ Accounts receivable/payable ◦ Treasury management ◦ Special ledgers ◦ Market risk management ◦ Fixed assets ◦ Funds management ◦ Legal consolidation Enterprise Control Investment Management ◦ Executive information system ◦ Investment ◦ Business planning and planning/budgeting/control budgeting ◦ Depreciation ◦ Profit center accounting forecast/simulation/calculate ◦ Consolidation Controls ◦ Overhead cost ◦ Activity based costing ◦ Product cost ◦ Profitability analysis
- 36. SAP Logistics Purchasing Product data management Materials management ◦ Master data management Manufacturing ◦ Design and change process Warehousing ◦ Product structure ◦ Development projects Quality management Plant maintenance Sales and distribution ◦ Sales activities Service management ◦ Sales order management Sales ◦ Shipping and transportation Distribution ◦ Billing ◦ Sales information system
- 37. SAP Logistics Production planning and Project system control ◦ Work breakdown structures ◦ Production planning ◦ Network planning ◦ Material requirements techniques, milestones planning ◦ Cost, revenue, financial, ◦ Production control and schedule, and resource capacity planning management ◦ Costing ◦ Earned value calculation ◦ Order information system ◦ Project information system ◦ Shop floor information system
- 38. SAP Logistics Materials management Plant maintenance ◦ Purchasing ◦ Structuring technical systems ◦ Inventory management ◦ Maintenance resource ◦ Warehouse management planning ◦ Invoice verification ◦ Maintenance planning ◦ Inventory controlling ◦ System for technical and cost accounting data ◦ Purchasing information system ◦ Maintenance information system Quality management ◦ Quality planning ◦ Quality inspections ◦ Quality control ◦ Quality notifications and certificates ◦ Quality management information system
- 39. SAP Logistics Service management Integration ◦ Customer installed base ◦ When the clerk enters a administration sale, bills are generated ◦ Service contract automatically (mail, fax, or management EDI). ◦ Call management ◦ Sales and revenue are instantly updated in ◦ Billing financial and control ◦ Service information system modules. ◦ The sales information system and EIS provide various up-to-date views and reports.
- 40. SAP HRM Personnel management Payroll accounting ◦ HR master data ◦ Gross/net accounting ◦ Personnel administration ◦ History function ◦ Information systems ◦ Dialog capability ◦ Recruitment ◦ Multi-currency capability ◦ Travel management ◦ International solutions ◦ Benefits administration ◦ Salary administration Time management Organizational ◦ Shift planning management ◦ Work schedules ◦ Organization structure ◦ Time recording ◦ Staffing schedules ◦ Absence determination ◦ Job descriptions ◦ Error handling ◦ Planning scenarios ◦ Personnel cost planning
- 41. SAP HRM Personnel development Other features ◦ Career and succession ◦ SAP Business workflow planning ◦ Internet scenarios ◦ Profile comparisons ◦ Employee self-service ◦ Qualifications assessments ◦ Additional training determination ◦ Training and event management
- 42. SAP Integration Financial general ledger Simple example holds all base totals. ◦ Manufacturing uses an item Sub-ledgers are defined for from inventory important accounts ◦ The quantity on hand is ◦ Accounts payable updated ◦ Manufacturing ◦ The inventory value is automatically changed ◦ User-defined On any sub-ledgers ◦ etc. On the general ledger All transactions ◦ Reports are generated in automatically flow through any currency ◦ Including currency ◦ New orders and payments conversions can be generated through ◦ Special rules can be EFT. defined
- 43. Supply Chain Management Designfeasibility Design & Engineering Designs and Quality & production costs Marketing product planning Quality control & Custom orders planning & monitoring Manufacturing planning Vendors & monitoring Customers Purchasing Demand-pull Mass Distribution Customization Quick Just-in-Time Response partnerships partnerships Administration & Management & joint & joint development HRM Accounting Finance MIS development
- 44. Purchasing/Logistics Buyer Suppliers Identify product features Provide product details Request for Proposal Evaluate suppliers Negotiate contract Negotiate contracts Identify exact items and costs Verify orders and times Correct errors Correct errors Schedule delivery Receive products Monitor shipments Match receipts against order Return items Handle returns Pay supplier Monitor payments
- 45.
- 46. The Role ofXML Buyer Supplier Messages and data <xml> ERP: Oracle <order> ERP: SAP … </order> </xml>
- 47. Customer Relationship Management Multiple Contact Points ◦ The goal is to provide a single, integrated view of all customer activity, available to all employees who interact with the customer. Feedback, Individual Needs, and Cross Selling ◦ Having better information enables workers to provide better service, meet the individual needs of each customer.
- 48.
- 49. PeopleSoft CRM: CustomerPerspective
- 50. ERP: Summarizing Data An ERP database can be gigantic. It would take time to evaluate every single transaction. Managers, particularly executives, need to begin with a summary of some basic conditions. ◦ The summary is usually graphical. ◦ Managers can then drill down and look at the detail.
- 51. Digital Dashboard Example Charts Gauges Icons Tickers Exceptions Drill-down links http://www.corda.com/exa mples/go/ddash/front.cfm
- 52. Digital Dashboard Examples http://www.dundas.com/dashboard/start/samples/?Campaign=Goog leDashboardExamples&gclid=CKme4q6du6cCFQE2gwodCAz8Bg Active, Silverlight examples from Dundas
- 53. Executive IS: Drill-Down Sales Production Costs Production Costs Distribution Costs South Executives Fixed Costs North Overseas 5000 4500 4000 3500 3000 South 2500 North 2000 Overseas 1500 1000 Central Management 500 0 1993 1994 1995 1996 Production: North Data Item# 1995 1994 Data 1234 542.1 442.3 2938 631.3 153.5 Sales Data 7319 753.1 623.8 Production Distribution Data
- 54. Audits and Sarbanes-Oxley Financial Statements Cash Inventory Sales Inventory Some financial numbers are tied to the outside world. Validate these to anchor the statements. Bank Customer
- 55. Cloud Computing andERP Several companies provide online services ◦ NetSuite.com ◦ Lawson, Oracle, and SAP provide some hosting options ◦ Many others Few companies use accounting systems in the cloud. ◦ Security, privacy, and reliability concerns ◦ Customization is needed in both cases and it can be expensive ◦ Variable costs can be expensive over time ◦ Browser-based approach is relatively new and mobile networking has been expensive and slow CRM is popular online ◦ Largely Salesforce.com ◦ But if it is not integrated with the ERP it is largely contact management.
- 56. Technology Toolbox: Selectingan ERP System Planning Stage Goals and Outputs Initiation Estimate costs, establish objectives, select team Initial Planning Initial vendor list and basic features (hardware platform, fees, internationalization, vendor size and stability, industry-specific support and so on.) Requirements Identify business requirements. Detailed list of Gathering specifications, unit goals, and critical features. Evaluation criteria. Demos and Product demonstrations, ratings, and site visits. Selection Implementation Customize applications, convert data, restructure company operations, define new processes and train employees.
- 57. Quick Quiz: Selectingan ERP System 1. Assume you work for a mid-size construction firm that does about 30 percent of its work internationally. Find at least three ERP vendors and outline the features they provide. 2. Assume you work for a large retail clothing firm with stores in most U.S. states. Identify the specific accounting and financial features you would want in an ERP system. 3. Assume you work for a regional manufacturer that makes parts for cars. Explain how you would select and evaluate an ERP system. Find an example of a system that would work.
- 58. Technology Toolbox: Designingan EIS http://www.visualmining.com
- 59. Quick Quiz: Designingan EIS 1. Assume you have been hired to help a regional law firm. What key elements might go on the main EIS screen? 2. Assume you have bee hired to help an airplane manufacturer, design the main EIS screen. 3. To help design an EIS for a retail video store chain, briefly describe the screens and steps needed to identify stores that are performing below par and find possible causes of the problems.
- 60. Cases: Autos Annual Revenue 350 300 250 General Motors Billion $ 200 Ford 150 DaimlerChrysler 100 Toyota 50 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Net Income / Revenue 0.20 0.15 0.10 0.05 General Motors 0.00 Ratio Ford -0.05 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 DaimlerChrysler -0.10 Toyota -0.15 -0.20 -0.25 -0.30