Transcript Slide 1

MANAGING
INFORMATION
TECHNOLOGY
FIFTH EDITION
CHAPTER 6
ENTERPRISE SYSTEMS
E. Wainright Martin  Carol V. Brown  Daniel W. DeHayes
Jeffrey A. Hoffer  William C. Perkins
APPLICATION AREAS
 Interorganizational
Systems

e-Business applications
 B2C – link businesses
with their end consumers
 B2B – link businesses
with other business
customers or suppliers
 Electronic data interchange
(EDI) systems
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APPLICATION AREAS
 Intraorganizational
Systems

Enterprise systems
– support all or most
of the organization

Managerial support
systems – support a
specific manager or
group of managers
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Figure 6.1 Types of Application Systems
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CRITICAL CONCEPTS
Batch Processing versus Online Processing
Batch Processing – group (or batch) of
transactions are accumulated, then
processed all at one time
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Figure 6.2 Batch Processing (simplified)
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CRITICAL CONCEPTS
Batch Processing versus Online Processing
Online Processing – each transaction is
entered directly into computer when it
occurs
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Figure 6.3 Online Processing
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CRITICAL CONCEPTS
Batch Processing versus Online Processing
 Interactive system – a fully functional
online system where computer quickly
provides a user response
 In-line system – provides for online
data entry, but processing of
transactions deferred for batch
processing
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Figure 6.1 Types of Application Systems
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CRITICAL CONCEPTS
Functional Information Systems
 Functional information systems – information
systems framework based on organization’s
primary business functions
Example
Business Functions
Production
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Marketing
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Accounting
Personnel
Engineering
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CRITICAL CONCEPTS
Vertical Integration of Systems
 Vertically integrated
information system –
serves more than one
vertical level in an
organization or industry
Example Sales System
Top Management
Long-term trend analysis
Middle Management
Weekly data analysis to
track slow-moving items
and productive salespeople
Produce invoices
Capture initial sales data
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CRITICAL CONCEPTS
Distributed Systems and Client/Server Systems
 Distributed systems – mode of delivery where
processing power is distributed to multiple
sites, which are then tied together via
telecommunication lines

Client-server system – a type of distributed system
where processing power is distributed between a
central server computer and a number of client
computers (usually PCs)
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CRITICAL CONCEPTS
Client/Server Systems
Client
Server
 Handles user
interface
 Runs on bigger
machine
 Accesses
distributed
services through
a network
 Handles data
storage for
applications …
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Databases
Web pages
Groupware
Middleware
 Software to
support clients
and server
interaction
Microsoft
Windows 2003
Server
 Novell NetWare
 UNIX, Linux

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CRITICAL CONCEPTS
Client/Server Systems
 Two-tier configuration
 Three-tier configuration
Client
Client
Server
Application Server
Database Server
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A three-tier client/server application
Web Server
Business logic
Transaction management
Middleware
Database Server
Data/information logic
Middleware
Thinner clients
Presentation logic
Some business logic
CRITICAL CONCEPTS
Client/Server Systems
 Fat client/thin server – most processing done
on client
 Thin client/fat server – most processing done
on server
Note:
 Web and groupware servers usually thin clients
 Database servers usually thin servers
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TRANSACTION PROCESSING
SYSTEMS
 Process thousands of transactions each day
in most organizations
 Examples: sales, payments made and
received, inventory shipped and received,
paying employees
 Typical outputs: invoices, checks, orders,
reports
 Critical to business operations
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TRANSACTION PROCESSING
SYSTEMS
Payroll System
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Figure 6.4 Components of a Payroll System
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TRANSACTION PROCESSING
Order Entry System
SYSTEMS
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Figure 6.5 Online Order Entry System
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ENTERPRISE RESOURCE
PLANNING SYSTEMS
 Also include transaction processing systems
 Set of integrated business applications
(modules) that carry out common business
functions:
General ledger, accounts payable, accounts
receivable, material requirements planning, order
management, inventory control, human resources
management
 Usually purchased from software vendor
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ENTERPRISE RESOURCE
PLANNING SYSTEMS
 How they differ:
1.
ERP modules are integrated
2.
ERP modules reflect a particular way of
doing business
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ENTERPRISE RESOURCE
PLANNING SYSTEMS
 Choosing right software and implementation
difficult and expensive
 Requires large investment of money and
people resources
 Leading ERP software vendors:
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

SAP
PeopleSoft, Inc. (bought J.D. Edwards)
Oracle
Baan
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Enterprise resource planning (ERP)
 ERP integrates all departments and functions
throughout an organization into a single IT
system so that employees can make
enterprise wide decisions by viewing
enterprise wide information on all business
operations
 ERP’s goal – every department or functional
area work together sharing common
information and not be a “silo”
Supply Chain Management
 SCM involves the management of information flows
between and among stages in a supply chain to
maximize total supply chain effectiveness and
profitability
 The steps typically taken when a customer buys a
bike from Trek
 Basic components of SCM include:
 Supply chain partners – partners throughout the
supply chain that deliver finished products, raw
materials, and services.
 Supply chain operation – schedule for production
activities
 Supply chain logistics – product delivery process
Trek orders materials from its
suppliers, such as packaging
material, metal, & accessories
Trek sends payments to
suppliers
Trek receives materials from
suppliers
Trek assembles the bike
Trek ships the bike to the store
Customer picks up the Trek
bike from the store
Customer places an order for a Trek bike with a store
Store (such as local sporting goods store) receives the order
Store receives the payment from the customer
Store orders the bike from Trek
Store sends payment to Trek
Wal-Mart and Procter & Gamble SCM
DATA WAREHOUSING
 Is the establishment and maintenance
of a large data storage facility
containing data on all (or at least
many) aspects of the enterprise
 Provides users data access and
analysis capabilities without
endangering operational systems
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DATA WAREHOUSING
 Establishing a data warehouse:

Is time-consuming and expensive

Requires software tools to:
1. Construct warehouse
2. Operate warehouse
3. Access and analyze data from the warehouse
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DATA WAREHOUSING
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Figure 6.8 Key Elements of Data Warehousing
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CUSTOMER RELATIONSHIP
MANAGEMENT
 CRM system – provides integrated approach
to all aspects of company-customer interaction

Marketing

Sales

Support
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Customer Relationship Management
 CRM – involves managing all aspects of a
customer’s relationship with an organization to
increase customer loyalty and retention and an
organization's profitability
 CRM is not just technology, but a strategy,
process, and business goal that an organization
must embrace on an enterprise wide level
 CRM can enable an organization to:
 Identify
types of customers
 Design individual customer marketing campaigns
 Treat each customer as an individual
 Understand customer buying behaviors
CUSTOMER RELATIONSHIP
MANAGEMENT
CRM market segments:

Traditional out-of-the-box CRM

Traditional CRM with templates for specific vertical
industries

Traditional out-of-the-box CRM with application
development hooks

Industry-specific vertical CRM packages

Custom solutions from vertical systems integrators
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The Evolution of CRM
Briefly explain the differences between
SCM, CRM, and ERP
SCM systems focus
specifically on
suppliers
CRM systems focus
specifically on
customers
ERP systems focus on everything, all
processes, departments, and operations
for an enterprise
OFFICE AUTOMATION
Office automation – a set of office-related applications that
may or may not be integrated into a single system
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Electronic mail
Work processing
Voice mail
Copying
Desktop publishing
Electronic calendaring
Document imaging
Document preparation, storage, and sharing
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OFFICE AUTOMATION
Electronic Mail
 Variants of e-mail:
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
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Electronic bulletin boards
Listservs
Computer conferencing
Chat rooms
Instant messaging (IM)
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Future Developments
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Figure 6.9 Office of the Future Network
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GROUPWARE
Groupware – industry term that refers to
software designed to support groups by
facilitating:
• collaboration
• communication
• coordination
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GROUPWARE
Typical Features:
 Electronic mail
 Electronic bulletin
boards
 Computer conferencing
 Electronic calendaring
 Group scheduling
 Sharing documents
 Electronic whiteboards
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 Meeting support systems
 Learning management
systems
 Workflow routing
 Electronic forms
 Desktop videoconferencing
 Instant messaging
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GROUPWARE
Software vendors:


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


Lotus Notes
Novell GroupWise
Microsoft Exchange
Oracle Collaboration Suite
Thruport Technologies’ HotOffice
Groove Network’s Groove Workspace
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(Copyright © 2004 IBM Lotus Software. Lotus Notes is a registered trademark of IBM Lotus Software. Used with permission
of IBM Lotus Software.)
© 2005 Pearson Prentice-Hall
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Figure 6.10 Lotus Notes® Welcome Page
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INTRANETS
Intranet – a network operating within an organization that
employs the TCP/IP protocol used on the Internet
 Advantages:





Implementation is relatively easy
E-mail and document sharing available to all in
the organization
Web browser acts as “universal client” that works
with heterogeneous platforms
Little, if any, user training required
Low cost
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INTRANETS
Portal – software that provides intranets with a structure
and easier access to internal information via a Web
browser
Extranet – an Internet-based application that permits key
trading partners to access another organization’s intranet
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FACTORY AUTOMATION
Factory automation – involves numerically controlled
machines, which use a computer program or a tape with
punched holes, to control movement of tools on machines
Material requirements planning (MRP) – uses data input to
produce a production schedule for the factory and a
schedule of needed raw materials
Computer-integrated manufacturing (CIM) – includes MRP
functions, but also has the compute carry out the
schedules through control of various machines involved
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FACTORY AUTOMATION
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Table 6.1 Abbreviations Used
in Factory Automation
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FACTORY AUTOMATION
Engineering Systems
 Computer-aided design (CAD) – use of two and threedimensional computer graphics to create and modify
engineering designs
 Computer-aided engineering (CAE) – system that analyzes
functional characteristics of a design and simulates the product
performance under various conditions
 Group technology (GT) – systems that logically group parts
according to physical characteristics, machine routings, and
other machine operations
 Computer-aided process planning (CAPP) – systems that plan
the sequence of processes that produce or assemble a part
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FACTORY AUTOMATION
Manufacturing Administration
 Manufacturing resources planning (MRP II)

A system that usually has three components:
1. Master production schedule
2. Material requirements planning
3. Shop floor control

Attempts to implement just-in-time (JIT) production

Does not directly control machines on the shop floor

An information system that tries to minimize inventory
and employ machines efficiently and effectively
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FACTORY AUTOMATION
Manufacturing Administration
 Supply chain management (SCM)

Systems to deal with distribution and transportation of
raw materials and finished products throughout the
supply chain

Are often interorganizational
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FACTORY AUTOMATION
Factory Operations
 Computer-aided manufacturing (CAM) –
use of computers to control manufacturing
processes

Series of programs to control
automated equipment on shop floor

Includes guiding vehicles to move
raw materials and finished products

Requires a lot of input from other
systems
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FACTORY AUTOMATION
Robotics
Robotics – a branch of artificial intelligence (AI) where
scientists and engineers build machines to accomplish
coordinated physical tasks like humans do
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