Lecture 6
ISM - © 2010 Houman Younessi
Convener:
Houman Younessi
1-860-548-7880
Information SystemsSpring 2011
Lecture 6
ISM - © 2010 Houman Younessi
Element Concept Information Category Information System
Risk Uncertainty Economic EnvironmentInternal control
ForecastingControl
Lecture 6
ISM - © 2010 Houman Younessi
Business Effectiveness
Production Support
Managing Risk
Reducing Uncertainty
Integration
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ISM - © 2010 Houman Younessi
Marketing
Produ
ctio
nHuman
Resources
Finance
Legal
IT
Facilities and logistics
Integration
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ISM - © 2010 Houman Younessi
Note:
Each business component may itself be looked at as a production process. As such, it is internally subject – or can be subject at least – to the provisions of process efficiency maximization discussed in
the previous lecture.
This lecture is about how to reduce risk and be effective as a cohesive and integrated collection of these individual elements.
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ISM - © 2010 Houman Younessi
Heterogeneity
- Conceptual
- Linguistic
- Technological
Volume
Access
Challenges to Information Based Integration
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ISM - © 2010 Houman Younessi
Heterogeneity
Solutions:
- Monolithic Business Application Framework
- Open Standards/Architecture
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ISM - © 2010 Houman Younessi
Enterprise Resource Planning Systems
ERP systems integrate information systems requirements of an organization. ERP systems usually use a single, unified database as the backbone to store data for the various system modules.
Manufacturing: Engineering, Bills of Material, Scheduling, Capacity Planning, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Flow Optimization, Forecasting
Supply Chain Management: Inventory, Order Entry, Purchasing, Product Configuration, Supply Chain Planning, Supplier Scheduling
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ISM - © 2010 Houman Younessi
Financials: General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets Projects: Costing, Billing, Time and Expense, Activity Management Human Resources: Resources, Payroll, Training, Time & Attendance, Benefits Customer Relationship Management: Sales and Marketing, Commissions, Service, Customer Contact and Call Center support
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ISM - © 2010 Houman Younessi
Advantages:
Enables Integrated design (Process efficiency)
Integration from customer requirement through to need fulfillment
Full revenue cycle management
Integrated and context based logistics management
Integrated accounting and control
Relatively secure
One “language”, One system, One vendor
Potential for:
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ISM - © 2010 Houman Younessi
Disadvantages:
Expensive to acquire – Cost structures sometimes unrelated to business size.
Difficult to properly fit into the needs/philosophy of the organization. Limited and difficult customization.
Re-engineering of business processes to fit the “philosophy" (Usually a discrete manufacturing view of the world) prescribed by the ERP system may lead to a loss of competitive advantage.
Difficult/Complex to implement
As good as the weakest link
Lock-in issues. Once committed to a technology/vendor, almost impossible to switch
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ISM - © 2010 Houman Younessi
Disadvantages:By blurring lines of responsibility, can cause problems with accountability, efficiency, and transparency.
Off-the-rack suit, may or may not fit your body, your style, or your budget
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ISM - © 2010 Houman Younessi
Some ERP Providers and Products
SAP AG: World’s third largest software company headquartered in Walldorf Germany. Almost exclusively specializes in ERP solutions.
Products:
SAP R/3
mySAP All-in-one
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ISM - © 2010 Houman Younessi
Some ERP Providers and Products
Oracle Corporation: World’s leading vendor of database management systems. Also develops and sells ERP and associated systems that rely heavily on database technologies.
Products:
Peoplesoft
Oracle e-Business Suite
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ISM - © 2010 Houman Younessi
Some ERP Providers and Products
Microsoft Corporation: World’s largest software manufacturer with a wide array of products including ERP.
Product:
Microsoft Dynamics
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ISM - © 2010 Houman Younessi
Some ERP Providers and Products
Some other providers:
SSA ERP LN by SSA Global Technologies
NetERP by NetSuite Inc.
Sage MAS 500 – by The Sage Group
SYSPRO by Syspro Inc.
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ISM - © 2010 Houman Younessi
Some Technical Issues with ERPProblems of Integration with legacy systems
Problems of fit and integration into existing business processes
Unit rather than service orientation
Not all components of a single ERP package are at the same level of utility
Difficult to integrate with supplier systems if not the same ERP
An open-architecture service-oriented solution is needed
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ISM - © 2010 Houman Younessi
Open-ArchitectureOpen architecture refers to use of open-standard hardware and software to construct information systems. Open standard refers to products that are constructed using protocols and interfaces that are non-proprietary and according to a publicly available and widely adopted definition.
An architecture that enables the creation of information systems that are built by combining loosely coupled and interoperable components
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ISM - © 2010 Houman Younessi
Service-Oriented Architecture
A style of potentially multi-tier computing that helps share logic and data among multiple applications and usage modes. These usage modes are defined or expressed as “services” and are aligned with the requirements of system users.
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ISM - © 2010 Houman Younessi
(Open) Service-Oriented Architecture
Essential Principles:
Interoperability
Modularity Granularity
Componentization
Reuse
Service identification
Service Categorization
Compliance to standards (both de facto and actual)
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ISM - © 2010 Houman Younessi
Encapsulated Loosely Coupled
Contract-based
Abstract Autonomous
State-less
Composible (Granular)
(Open) Service-Oriented Architecture
Architectural Principles:
Services are:
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ISM - © 2010 Houman Younessi
Advantages
1. Macro (service) level Reuse
2. Possible legacy system integration
3. Third party systems (e.g. suppliers) integration
4. Does not lock-in the user
5. Cost of acquisition
6. Tailorable (the user chooses the best product for the service)
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ISM - © 2010 Houman Younessi
Disadvantages
1. Needs know-how and coordination to install and integrate
2. Lots of tailoring effort required
3. Support issues – Passing the buck
4. Tuning issues – Efficiency (component architecture mismatch)
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ISM - © 2010 Houman Younessi
Volume
Data Storage
Data Transfer
Data Manipulation
Development
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ISM - © 2010 Houman Younessi
Kilobyte (KB) 210 103 Three pages typical manuscript
Megabyte (MB) 220 106 War and Peace
Gigabyte (GB) 230 109 A small library (1000 books)
Terabyte (TB) 240 1012 A major university library
Petabyte (PB) 250 1015 All books ever written in the world
Exabyte (EB) 260 1018 All written words ever
Zettabyte (ZB) 270 1021 ?
Data Storage/Transfer
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ISM - © 2010 Houman Younessi
iPod 10 MB per minute
SETI 1.8 GB per minute
Internet 1.5 TB per minute
Next time your bank say that they hold and manage over 2 terabytes of data, ….. Have respect
Data Storage/Transfer
Lecture 6
ISM - © 2010 Houman Younessi
Typical lap-top hard-disk 40-100 Gigabytes
National Bank Database 1-2 Terabytes
All databases in NYC 3-5 Pentabytes
All data in electronic form 5 Exabytes
Domestic Cable BB ~200 KB per second
Wi-Fi network ~1.4 – 2.5 MB per second
T3 ~5 MB per second
OC3 ~20 MB per second
OC768 ~5 GB per second
Intercontinental FO trunk ~50-100 GB per second
Data Storage/Transfer
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ISM - © 2010 Houman Younessi
Data Manipulation
Moving from database querying to :
- Data mining
- Graphical data (e.g. Geographical)
- Voice data
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ISM - © 2010 Houman Younessi
Development
Volume of work!!!
Despite common belief there is a severe shortage of SE/IS/IT staff world-wide.
- Open-sourcing
- Out-sourcing
- Off-shoring