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
© 2005 Pearson Prentice-Hall
Chapter 6 - 2
Page 182
APPLICATION AREAS
Intraorganizational
Systems
Enterprise systems
– support all or most
of the organization
Managerial support
systems – support a
specific manager or
group of managers
© 2005 Pearson Prentice-Hall
Chapter 6 - 3
Figure 6.1 Types of Application Systems
Page 182
CRITICAL CONCEPTS
Batch Processing versus Online Processing
Batch Processing – group (or batch) of
transactions are accumulated, then
processed all at one time
© 2005 Pearson Prentice-Hall
Chapter 6 - 4
Figure 6.2 Batch Processing (simplified)
Page 183
CRITICAL CONCEPTS
Batch Processing versus Online Processing
Online Processing – each transaction is
entered directly into computer when it
occurs
© 2005 Pearson Prentice-Hall
Chapter 6 - 5
Figure 6.3 Online Processing
Page 183
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 6
Figure 6.1 Types of Application Systems
Page 183
CRITICAL CONCEPTS
Functional Information Systems
Functional information systems – information
systems framework based on organization’s
primary business functions
Example
Business Functions
Production
© 2005 Pearson Prentice-Hall
Marketing
Chapter 6 - 7
Accounting
Personnel
Engineering
Page 184
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 8
Page 184
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)
© 2005 Pearson Prentice-Hall
Chapter 6 - 9
Page 185
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 …
© 2005 Pearson Prentice-Hall
Chapter 6 - 10
Databases
Web pages
Groupware
Middleware
Software to
support clients
and server
interaction
Microsoft
Windows 2003
Server
Novell NetWare
UNIX, Linux
Page 185
CRITICAL CONCEPTS
Client/Server Systems
Two-tier configuration
Three-tier configuration
Client
Client
Server
Application Server
Database Server
© 2005 Pearson Prentice-Hall
Chapter 6 - 11
Page 186
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 13
Page 186
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 14
Page 186-187
TRANSACTION PROCESSING
SYSTEMS
Payroll System
© 2005 Pearson Prentice-Hall
Chapter 6 - 15
Figure 6.4 Components of a Payroll System
Page 187
TRANSACTION PROCESSING
Order Entry System
SYSTEMS
© 2005 Pearson Prentice-Hall
Chapter 6 - 16
Figure 6.5 Online Order Entry System
Page 188
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 17
Page 188-189
ENTERPRISE RESOURCE
PLANNING SYSTEMS
How they differ:
1.
ERP modules are integrated
2.
ERP modules reflect a particular way of
doing business
© 2005 Pearson Prentice-Hall
Chapter 6 - 18
Page 189
ENTERPRISE RESOURCE
PLANNING SYSTEMS
Choosing right software and implementation
difficult and expensive
Requires large investment of money and
people resources
Leading ERP software vendors:
SAP
PeopleSoft, Inc. (bought J.D. Edwards)
Oracle
Baan
© 2005 Pearson Prentice-Hall
Chapter 6 - 19
Page 190
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 24
Page 192
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 25
Page 192-193
DATA WAREHOUSING
© 2005 Pearson Prentice-Hall
Chapter 6 - 26
Figure 6.8 Key Elements of Data Warehousing
Page 193
CUSTOMER RELATIONSHIP
MANAGEMENT
CRM system – provides integrated approach
to all aspects of company-customer interaction
Marketing
Sales
Support
© 2005 Pearson Prentice-Hall
Chapter 6 - 27
Page 194
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 30
Page 195-196
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
Electronic mail
Work processing
Voice mail
Copying
Desktop publishing
Electronic calendaring
Document imaging
Document preparation, storage, and sharing
© 2005 Pearson Prentice-Hall
Chapter 6 - 33
Page 196
OFFICE AUTOMATION
Electronic Mail
Variants of e-mail:
© 2005 Pearson Prentice-Hall
Electronic bulletin boards
Listservs
Computer conferencing
Chat rooms
Instant messaging (IM)
Chapter 6 - 34
Page 197
Future Developments
© 2005 Pearson Prentice-Hall
Chapter 6 - 35
Figure 6.9 Office of the Future Network
Page 198
GROUPWARE
Groupware – industry term that refers to
software designed to support groups by
facilitating:
• collaboration
• communication
• coordination
© 2005 Pearson Prentice-Hall
Chapter 6 - 36
Page 201
GROUPWARE
Typical Features:
Electronic mail
Electronic bulletin
boards
Computer conferencing
Electronic calendaring
Group scheduling
Sharing documents
Electronic whiteboards
© 2005 Pearson Prentice-Hall
Chapter 6 - 37
Meeting support systems
Learning management
systems
Workflow routing
Electronic forms
Desktop videoconferencing
Instant messaging
Page 201
GROUPWARE
Software vendors:
Lotus Notes
Novell GroupWise
Microsoft Exchange
Oracle Collaboration Suite
Thruport Technologies’ HotOffice
Groove Network’s Groove Workspace
© 2005 Pearson Prentice-Hall
Chapter 6 - 38
Page 201
(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
Chapter 6 - 39
Figure 6.10 Lotus Notes® Welcome Page
Page 203
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 40
Page 206
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 41
Page 206-207
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 42
Page 207-208
FACTORY AUTOMATION
© 2005 Pearson Prentice-Hall
Chapter 6 - 43
Table 6.1 Abbreviations Used
in Factory Automation
Page 208
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 44
Page 208
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 45
Page 208
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 46
Page 209
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
© 2005 Pearson Prentice-Hall
Chapter 6 - 47
Page 209
FACTORY AUTOMATION
Robotics
Robotics – a branch of artificial intelligence (AI) where
scientists and engineers build machines to accomplish
coordinated physical tasks like humans do
© 2005 Pearson Prentice-Hall
Chapter 6 - 48
Page 209-210