Solving Business Problems with IT

Chapter 7

Integration of Information

BUAD 358 - Information Systems II

Roanoke College

Outline

• Integration in Business• Integrating Data with

Applications• Integration over Networks• Workgroup Integration• Group Decisions• Open Systems: Integration

Integration

Everyone in the company including managers, salespeople, and engineers need access to the same data across the organization.

Integration

Fina

nce

Acc

ou

nti

ng

Pro

du

ctio

n

Mar

keti

ng

Hum

an R

esou

rces

Operations

Tactics

Strategy

data data data data data

deci

sion

sde

cisi

ons

deci

sion

s

deci

sion

s

deci

sion

s

Company

Integration In Business

• Static and Dynamic Integration• Data Integration• Application Integration

– Spreadsheets– Word Processors– Database Reports– Guidelines for Integrating Data

Business Integration Example

Daily Sales Report February 11, 1999

Department Item# Q-sold Price ValueHouse 1153 52 2.95 153.40

5543 13 0.59 7.67W.Clothing 5563 1 87.32 87.32

7765 4 54.89 219.569986 2 15.69 31.38

Shoes 1553 2 65.79 131.586673 1 29.39 29.39

Total Sales: 660.30

Returned Merchandise LogFebruary 11, 1999

Item# Q Price Value1153 3 2.95 8.853353 6 27.59 165.544453 2 15.95 31.908878 1 24.95 24.95

Total 12 231.24

Commissions February 11, 1999

Emp# Name Dept Sales Rate Amount1143 Jones House 543.95 5% 27.202895 Brown M.Clothing 775.35 4% 31.014462 Smith W.Clothing 1,544.52 5% 77.237893 Torrez Shoes 876.93 6% 52.629963 Cousco M.Clothing 589.47 5% 29.47

File: C07E06.xlsFile: DeptStor.mdb

Integrated Report Example

Weekly Sales Analysis 2/11/96 - 2/17/96Manager comments are written in the first ten pages, along with comments on special events.

Department AnalysisDept Sales Returns Commissions NetHouse 4,113.58 25.35 205.68 3,882.55W.Clothing 54,221.92 998.52 3,024.64 50,198.76M.Clothing 28,664.48 356.24 1,421.58 26,886.66Shoes 10,225.31 853.47 592.36 8,779.48Total: 97,225.29 2,233.58 5,244.26 89,747.45

Sales & Net Sales

0200004000060000

House W. Cloth. M. Cloth. Shoes

1960s & 1970s MIS Pieces

Purchasing:Orders

Sales:Orders

Production:MRP

Marketing:Forecasts

Accounting:Integrated DataSeparateReports

Changes

salesdata

3 reports(printed) weekly reports

1970sSalesTerminals

SalesTerminals

Centralcomputer:

create reports

Manager:Integrate, graph

analyze Secretary:type & revise

Management

salesdata

3 reports(printed) weekly reports

1980sSalesTerminals

SalesTerminals

Centralcomputer:

create reports

Manager:Integrate, graph

analyze

Management

personal computer

salesdata

1990sSalesTerminals

SalesTerminals

DBMS:On-line data

Personal ComputerWeekly reports &ad hoc queries(applications)

Managementquery

data

Integration in 2000s

salesdata

SalesTerminals

SalesTerminals

DBMS

Executive InformationSystem

Personal ComputerOr PDA

Or Browser

Management

query

data

Suppliers

Banks

Production/Service

Enterprise Resource Planning

Data Integration

Finance data

Accounting data

Marketing dataHuman

Resource data

Production data

Sales data

Business Integration

Vendors Customers

Design &Engineering

Marketing

Distribution

Manufacturing

Purchasing

Administration & Management

HRM Accounting Finance MIS

Just-in-Time

Quality control & Custom orders

QuickResponse

Designs and Quality

MassCustomization

Demand-pull

Design feasibility& production costs

product planning

partnerships& jointdevelopment

partnerships& jointdevelopment

planning& monitoring

planning& monitoring

Dynamic Links

• Advantages– Data references are always up-to-

date.

– Computer & document know the source of all components.

– Updates and changes are automatic, with less user training.

Dynamic Links

• Disadvantages– Moving a document forces links to be rebuilt or

dropped.

– Cannot make radical changes to underlying components

• Software upgrade problems.

• File deletions, moves and major alterations affect other (unknown) users.

– Data changes can cause reformats that require fine-tuning of layouts.

Business Integration Networks & Workgroups

• Enterprise Resource Planning (ERP)• Customer Relationship Management (CRM)• Integrating over Networks• Workgroup Integration

– Communication– Compound Documents– Databases– Applications

• Problems with Sharing

ERP Integration

Database

Headquarters(France)

Database

Subsidiary(Spain)

Financial dataGeneral ledgerPayroll…

ManufacturingProduct detailsInventory…

Use inventory item.Deduct quantity.Update inventory value.

Check for reorder point.Order new item through EDI.Update Accounts payable.

Project cost report.Daily production report.

Weekly financial status.Cash flow.Budget versus actual cost.

Enterprise Resource Planning (

http://www.microsoft.com/dynamics/ax/product/kims.mspx)

• Integrated systems• Examples

– SAP– Oracle (Peoplesoft)– Lawson– J.D. Edwards

• Basic features included– Accounting– Purchasing– HRM– Investment management

Enterprise Resource Planning

• International environment– Multiple currencies– Multiple languages– Procedures and practices– Follows local (national) rules– Follows consolidation rules– Example

• U.S. firm with European subsidiaries.• Data is entered once• European reports are generated for subsidiaries following

local rules• Results are converted and consolidated to U.S. firm following

international and U.S. rules

SAP• Based in Germany, now

worldwide• Support for international

transactions and multinational firms

• Runs on multiple database and hardware platforms

• Can handle large and small companies

• Expensive, but price is relative.

• Financials• Logistics• Human resource

management

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.

Static Integration

Document

• Copy the objects to the document.• Changes to the original do not affect the

copies.

ContainerDocumentOriginal

spreadsheetobject

Originalgraphobject

Static copyof spreadsheet

object

Static copyof graphobject

Dynamic Integration

Document

• Objects are linked to the document.• Document requests changes and

updates copies as needed.

ContainerDocument

Originalspreadsheet

object

Originalgraphobject

Dynamic displayof spreadsheet

copy

Dynamic displayof graph copy

request changes

send data

request changes

send data

Compound Document

Container Document

Database

Graph

Image

Text

Spreadsheet

Integration over Networks

• Share data

• Support links– Data– Software availability

• Joint Authorship

• Transmit reports

File Server

ContainerDocument

CirculatedReport

ServerApplications

Computer 2Computer 1

Network LinksSales

Marketing

Accounting

Marketing ForecastGraph

Sales Table

Cost of Goods SoldSpreadsheet

Integrated Data

Workgroups

Computers are increasingly used to support teamwork and workgroups. Data, comments, and analysis are created and shared through networks of computers.

Workgroup Example

Design Team

Client HQConnecticut

Finance & Management Team

Consulting HQCalifornia

Design Projectorigination

Singapore

Design Plans

Changes

Changes& Corrections

Problems &Suggestions

Costs & Budgets

Changes &Costs

Cost Analysis Cost targets& comments

Changes &Suggestions

Message

MessageSupplierContact

Database

DesignProposals

SupplierContact

Database

MessageDesign

Proposals

CostAnalyses

1

2

3

4

Problems with Sharing

• Same software– Data conversion tools weak.– Exact layouts require same versions.

• Same environment, fonts, devices, drivers– Hardware conversions not exact.– Missing devices might cause crashes.

• Need access and network paths.• Transmission time.• Concurrency

– Tracking, Locking, Replication.

Data Warehousing and Mining

• Data Warehousing– Building a Data Warehouse– maintaining a Data Warehouse– Limitations of Data Warehousing

• Data Mining– SQL and QBE– On-Line Analytical Process (OLAP)– Slice and Dice (Drill Down)

Data Warehouse/Legacy Systems

Data

Data

Data

Data

Decision maker manager

Datawarehouse

Selecteddata items

Analysistools

Shared access

Sales transactionsand production operations

Interdepartmentalteams

Open Systems

• Integrating Hardware

• Integrating Software

• Establishing Standards

• Problems with System Upgrade

Integration with Diversity

IBMcentral computer

Unixfile server

RadioNetwork

Hardware compatibility:support for network connections.

Software compatibility:ability to store, transmit and displaydata created on different machines.

PC client

Salesperson’slaptop

Language compatibility:standard language, XMLCommon templates & styles

XML: eXtensible Markup Language

• 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.

GDSS• Group Decision Support Systems

– Brainstorming– Shared access– Voting– Record of comments– Anonymity?

• Drawbacks– Typing– Facilitator– Costs

GDSS Room

Group decision support systems can be used to coordinate meetings, record notes, take votes, and encourage participation. As shown in this system by Ventana corporation, each participant enters data in a PC, with summary results displayed on the central screen.

Summary

• Business Integration• Enterprise Resource Planning• Customer Relationship Management• Workgroups• Data Warehouses• Integration with Diversity

Spreadsheet Base

• Spreadsheet– Tables– Graphs– Retrieve from DBMS

Sales Report for November Data retrieved from Database:Region Sales Returns NetNorth 1,555 321 1234South 5,663 664 4999East 8,883 783 8100West 3,441 241 3200Total 19,542 2,009 17,533

0

5000

10000

N S E W

Net Sales

Microsoft Pivot Table

• Data - Pivot table report.• Select data using a database query (Rolling Thunder).• Choose data for rows, columns and table computations (row:

ModelType, SaleState; column: Month(SaleDate); Table: SalePrice.• Create additional groups (Mark quarters, Data - Group and outline -

Group.• Hide or show detail.

Sum of SalePrice Quarter MonthQuarter1 Quarter2 Quarter3 Quarter4 Grand Total

ModelTypeSaleStateHybrid 49,111.21 38,365.38 58,022.29 53,507.33 199,006.21Mountain 138,419.65 150,297.45 133,240.00 141,669.80 563,626.90Race 215,602.55 231,187.01 243,694.51 238,500.00 928,984.07Road 145,108.33 112,108.20 111,749.85 120,901.80 489,868.18Tour 79,222.71 89,869.80 81,602.01 95,506.07 346,200.59Track 7,703.77 7,450.00 15,125.00 4,750.00 35,028.77Grand Total 635,168.22 629,277.84 643,433.66 654,835.00 2,562,714.72

Spreadsheet link to DBMS

Request data Send data Fill spreadsheet Data changes Send new data

Spreadsheet

DBMS

data

(1) Query to request data

(2) Send data

(4) Data changes

(5) Send new data

(3) Fill spreadsheet

Word Processor Integration

• Compound Document– Graphics– Tables– Text– Sound– Video

W o r d P r o c e s s o r I n t e g r a t i o nM a n y r e p o r t s w i l lc o n t a i n l a r g e a m o u n t so f t e x t . A w o r dp r o c e s s o r w i l l b e u s e dt o e n t e r a n d f o r m a t t h ep a g e s . I f y o u w a n t t oi n c l u d e a g r a p h , i t c a nb e p l a c e d i n i t s o w n b o x

a n y w h e r e o n t h e p a g e . T h e f i g u r e s c a n h a v e t i t l e s , a n d t h e yc a n b e n u m b e r e d a u t o m a t i c a l l y . T e x t c a n a u t o m a t i c a l l y f l o wa r o u n d t h e b o x . Y o u c a n b u i l d a u t o m a t i c r e f e r e n c e s t o t h ef i g u r e n u m b e r s . I f y o u a d d o r m o v e a f i g u r e , t h e n u m b e r sa n d r e f e r e n c e s u p d a t e a u t o m a t i c a l l y .

S i m i l a r l y , y o u m i g h t w a n t t o i n c l u d e d a t a f r o ms p r e a d s h e e t s . I n t h i s c a s e , t h e b e s t m e t h o d i s t o c r e a t e a t a b l ei n t h e d o c u m e n t .

R e g i o n S a l e s P r o f i tW e s t 1 1 , 5 0 0 6 , 8 1 4E a s t 9 , 4 0 0 3 , 4 1 5

T o t a l 2 0 , 9 0 0 1 0 , 2 2 9

S a l e s & P r o f i t s

02 0 0 04 0 0 06 0 0 08 0 0 0

1 0 0 0 01 2 0 0 0

W e s t E a s t

Database Report Writer

• DBMS– Numbers– Text– Dates– Pictures– Objects

• Repeating

DBMS Report Writer

Catalog of Bicycle Parts

part# name

description

price

Picture

Integration with Windows

• Cut & Paste– Static

– Dynamic

• Object Linking & Embedding– In place editing

– Design package availability

– Data compatibility

– Servers

– Containers

Server Application

Container

Link

SAP Financials

• Treasury– Cash management– Treasury management– Market risk management– Funds management

• Enterprise Control– Executive information

system– Business planning and

budgeting– Profit center accounting– Consolidation

• Financial Accounting– General ledger

– Accounts receivable/payable

– Special ledgers

– Fixed assets

– Legal consolidation

• Investment Management– Investment

planning/budgeting/control

– Depreciation forecast/simulation/calculate

• Controls– Overhead cost

– Activity based costing

– Product cost

– Profitability analysis

SAP Logistics

• Purchasing• Materials management• Manufacturing• Warehousing• Quality management• Plant maintenance• Service management• Sales• Distribution

• Product data management– Master data management– Design and change process– Product structure– Development projects

• Sales and distribution– Sales activities– Sales order management– Shipping and transportation– Billing– Sales information system

SAP Logistics

• Production planning and control– Production planning

– Material requirements planning

– Production control and capacity planning

– Costing

– Order information system

– Shop floor information system

• Project system– Work breakdown

structures

– Network planning techniques, milestones

– Cost, revenue, financial, schedule, and resource management

– Earned value calculation

– Project information system

SAP Logistics• Materials management

– Purchasing– Inventory management– Warehouse management– Invoice verification– Inventory controlling– Purchasing information system

• Quality management– Quality planning– Quality inspections– Quality control– Quality notifications and

certificates– Quality management

information system

• Plant maintenance– Structuring technical

systems– Maintenance resource

planning– Maintenance planning– System for technical and

cost accounting data– Maintenance information

system

SAP Logistics• Service management

– Customer installed base administration

– Service contract management

– Call management– Billing– Service information system

• Integration– When the clerk enters a

sale, bills are generated automatically (mail, fax, or EDI).

– Sales and revenue are instantly updated in financial and control modules.

– The sales information system and EIS provide various up-to-date views and reports.

SAP HRM• Personnel management

– HR master data– Personnel administration– Information systems– Recruitment– Travel management– Benefits administration– Salary administration

• Organizational management– Organization structure– Staffing schedules– Job descriptions– Planning scenarios– Personnel cost planning

• Payroll accounting– Gross/net accounting– History function– Dialog capability– Multi-currency capability– International solutions

• Time management– Shift planning– Work schedules– Time recording– Absence determination– Error handling

SAP HRM

• Personnel development– Career and succession

planning– Profile comparisons– Qualifications

assessments– Additional training

determination– Training and event

management

• Other features– SAP Business

workflow– Internet scenarios– Employee self-service

SAP Integration

• Financial general ledger holds all base totals.

• Sub-ledgers are defined for important accounts– Accounts payable– Manufacturing– User-defined– etc.

• All transactions automatically flow through– Including currency conversions– Special rules can be defined

• Simple example– Manufacturing uses an item

from inventory– The quantity on hand is

updated– The inventory value is

automatically changed• On any sub-ledgers• On the general ledger

– Reports are generated in any currency

– New orders and payments can be generated through EFT.

SharePoint: Discussion

SharePoint: Survey• Create a new survey• Add questions

– Multiple Choice– Open ended/text– Selection Lists

• Run the survey• Graph the results

Tracking Changes and Adding Discussions

Annotation

• Insert - Comment• Insert - Object - Wave

• Make sure you and your colleagues have a sound card and microphone.

• Set up and test the multimedia tools.

• Know what you want to say and keep it short.

• Video can be used also but you need a camera, video capture card, and editing software.Comment

Recorded (wave)comment

SharePoint: Subscriptions to Monitor Changes

• Users can subscribe to a document or a directory.

• They will be notified by e-mail when changes are made.

• Or notified with a list of changes once a day, once a week, or on whatever schedule the user selects.

SharePoint: Routing Slip for Workflow

• A routing slip sends documents by e-mail to each person on the list in order.

• The document records changes and comments.

• Users on the list can approve or reject changes.

Cases: Ford Motor CompanyGeneral Motors

What is the company’s current status?

What is the Internet strategy?

How does the company use information technology?

What are the prospects for the industry?

www.ford.com

www.gm.com

Appendix: Microsoft NetMeeting

http://www.microsoft.com/netmeeting/

VideoParticipants

Sound,Video Document

Appendix: NetMeeting Chat Screen

Appendix: NetMeeting Shared Document

Changes are displayed as they are typed. The owner can integrate them later.

Tools Protect Document Track Changes