Solving Business Problems with IT

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<ul><li>1.Solving Business Problems with IT Chapter 7 Integration of Information BUAD 358 - Information Systems II Roanoke College</li></ul> <p>2. Outline </p> <ul><li>Integration in Business </li></ul> <ul><li>Integrating Data with Applications </li></ul> <ul><li>Integration over Networks </li></ul> <ul><li>Workgroup Integration </li></ul> <ul><li>Group Decisions </li></ul> <ul><li>Open Systems:Integration </li></ul> <p>3. Integration Everyone in the company including managers, salespeople, and engineers need access to the same data across the organization. 4. Integration Finance Accounting Production Marketing Human Resources Operations Tactics Strategy data data data data data decisions decisions decisions decisions decisions Company 5. Integration In Business </p> <ul><li>Static and Dynamic Integration </li></ul> <ul><li>Data Integration </li></ul> <ul><li>Application Integration </li></ul> <ul><li><ul><li>Spreadsheets </li></ul></li></ul> <ul><li><ul><li>Word Processors </li></ul></li></ul> <ul><li><ul><li>Database Reports </li></ul></li></ul> <ul><li><ul><li>Guidelines for Integrating Data </li></ul></li></ul> <p>6. Business Integration Example Daily Sales Report February 11, 1999 Department Item# Q-sold Price Value House 1153 52 2.95 153.40 5543 13 0.59 7.67 W.Clothing 5563 1 87.32 87.32 7765 4 54.89 219.56 9986 2 15.69 31.38 Shoes 1553 2 65.79 131.58 6673 1 29.39 29.39 Total Sales: 660.30 Returned Merchandise Log February 11, 1999 Item# Q Price Value 1153 3 2.95 8.85 3353 6 27.59 165.54 4453 2 15.95 31.90 8878 1 24.95 24.95 Total 12 231.24 Commissions February 11, 1999 Emp# Name Dept Sales Rate Amount 1143 Jones House 543.95 5% 27.20 2895 Brown M.Clothing 775.35 4% 31.01 4462 Smith W.Clothing 1,544.52 5% 77.23 7893 Torrez Shoes 876.93 6% 52.62 9963 Cousco M.Clothing 589.47 5% 29.47 File:C07E06.xls File:DeptStor.mdb 7. Integrated Report Example Weekly Sales Analysis 2/11/96 - 2/17/96 Manager comments are written in the first ten pages,along with comments on special events. Department Analysis Dept Sales Returns Commissions Net House 4,113.58 25.35 205.68 3,882.55 W.Clothing 54,221.92 998.52 3,024.64 50,198.76 M.Clothing 28,664.48 356.24 1,421.58 26,886.66 Shoes 10,225.31 853.47 592.36 8,779.48 Total: 97,225.29 2,233.58 5,244.26 89,747.45 8. 1960s &amp; 1970s MIS Pieces Purchasing: Orders Sales: Orders Production: MRP Marketing: Forecasts Accounting: Integrated Data Separate Reports 9. Changes weekly reports 1970s Sales Terminals Sales Terminals Central computer: create reports Manager: Integrate, graph analyze Secretary: type &amp; revise Management weekly reports 1980s Sales Terminals Sales Terminals Central computer: create reports Manager: Integrate, graph analyze Management personal computer 1990s Sales Terminals Sales Terminals DBMS: On-line data Personal Computer Weekly reports &amp; ad hoc queries (applications) Management query data sales data 3 reports (printed) sales data 3 reports (printed) sales data 10. Integration in 2000s Sales Terminals Sales Terminals DBMS Executive Information System Personal Computer Or PDA Or Browser Management query data Suppliers Banks Production/ Service Enterprise Resource Planning sales data 11. Data Integration Finance data Accounting data Marketing data Human Resource data Production data Sales data 12. Business Integration Vendors Customers Design &amp; Engineering Marketing Distribution Manufacturing Purchasing Administration &amp; Management HRM Accounting Finance MIS Just-in-Time Quality control&amp; Custom orders Quick Response Designs and Quality Mass Customization Demand-pull Design feasibility &amp; production costs product planning partnerships &amp; joint development partnerships &amp; joint development planning &amp; monitoring planning &amp; monitoring 13. Dynamic Links </p> <ul><li>Advantages </li></ul> <ul><li><ul><li>Data references are always up-to-date. </li></ul></li></ul> <ul><li><ul><li>Computer &amp; document know the source of all components. </li></ul></li></ul> <ul><li><ul><li>Updates and changes are automatic, with less user training. </li></ul></li></ul> <p>14. Dynamic Links </p> <ul><li>Disadvantages </li></ul> <ul><li><ul><li>Moving a document forces links to be rebuilt or dropped. </li></ul></li></ul> <ul><li><ul><li>Cannot make radical changes to underlying components </li></ul></li></ul> <ul><li><ul><li><ul><li>Software upgrade problems. </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>File deletions, moves and major alterations affect other (unknown) users. </li></ul></li></ul></li></ul> <ul><li><ul><li>Data changes can cause reformats that require fine-tuning of layouts. </li></ul></li></ul> <p>15. Business Integration Networks &amp; Workgroups </p> <ul><li>Enterprise Resource Planning (ERP) </li></ul> <ul><li>Customer Relationship Management (CRM) </li></ul> <ul><li>Integrating over Networks </li></ul> <ul><li>Workgroup Integration </li></ul> <ul><li><ul><li>Communication </li></ul></li></ul> <ul><li><ul><li>Compound Documents </li></ul></li></ul> <ul><li><ul><li>Databases </li></ul></li></ul> <ul><li><ul><li>Applications </li></ul></li></ul> <ul><li>Problems with Sharing </li></ul> <p>16. ERP Integration Database Headquarters (France) Database Subsidiary (Spain) Financial data General ledger Payroll Manufacturing Product details Inventory 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. 17. Enterprise Resource Planning( kims.mspx ) </p> <ul><li>Integrated systems </li></ul> <ul><li>Examples </li></ul> <ul><li><ul><li>SAP </li></ul></li></ul> <ul><li><ul><li>Oracle (Peoplesoft) </li></ul></li></ul> <ul><li><ul><li>Lawson </li></ul></li></ul> <ul><li><ul><li>J.D. Edwards </li></ul></li></ul> <ul><li>Basic features included </li></ul> <ul><li><ul><li>Accounting </li></ul></li></ul> <ul><li><ul><li>Purchasing </li></ul></li></ul> <ul><li><ul><li>HRM </li></ul></li></ul> <ul><li><ul><li>Investment management </li></ul></li></ul> <p>18. Enterprise Resource Planning </p> <ul><li>International environment </li></ul> <ul><li><ul><li>Multiple currencies </li></ul></li></ul> <ul><li><ul><li>Multiple languages </li></ul></li></ul> <ul><li><ul><li>Procedures and practices </li></ul></li></ul> <ul><li><ul><li>Follows local (national) rules </li></ul></li></ul> <ul><li><ul><li>Follows consolidation rules </li></ul></li></ul> <ul><li><ul><li>Example </li></ul></li></ul> <ul><li><ul><li><ul><li>U.S. firm with European subsidiaries. </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Data is entered once </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>European reports are generated for subsidiaries following local rules </li></ul></li></ul></li></ul> <ul><li><ul><li><ul><li>Results are converted and consolidated to U.S. firm following international and U.S. rules </li></ul></li></ul></li></ul> <p>19. SAP </p> <ul><li>Based in Germany, now worldwide </li></ul> <ul><li>Support for international transactions and multinational firms </li></ul> <ul><li>Runs on multiple database and hardware platforms </li></ul> <ul><li>Can handle large and small companies </li></ul> <ul><li>Expensive, but price is relative. </li></ul> <ul><li>Financials </li></ul> <ul><li>Logistics </li></ul> <ul><li>Human resource management </li></ul> <p>20. Customer Relationship Management </p> <ul><li>Multiple Contact Points </li></ul> <ul><li><ul><li>The goal is to provide a single, integrated view of all customer activity, available to all employees who interact with the customer. </li></ul></li></ul> <ul><li>Feedback, Individual Needs, and Cross Selling </li></ul> <ul><li><ul><li>Having better information enables workers to provide better service, meet the individual needs of each customer. </li></ul></li></ul> <p>21. Static Integration </p> <ul><li>Copy the objects to the document. </li></ul> <ul><li>Changes to the original do not affect the copies. </li></ul> <p>Document Container Document Original spreadsheet object Original graph object Static copy of spreadsheet object Static copy of graph object 22. Dynamic Integration </p> <ul><li>Objects are linked to the document. </li></ul> <ul><li>Document requests changes and updates copies as needed. </li></ul> <p>Document Container Document Original spreadsheet object Original graph object Dynamic display of spreadsheet copy Dynamic display of graph copy request changes send data request changes send data 23. Compound Document Container Document Database Graph Image Text Spreadsheet 24. Integration over Networks </p> <ul><li>Share data </li></ul> <ul><li>Support links </li></ul> <ul><li><ul><li>Data </li></ul></li></ul> <ul><li><ul><li>Software availability </li></ul></li></ul> <ul><li>Joint Authorship </li></ul> <ul><li>Transmit reports </li></ul> <p>File Server Container Document Circulated Report Server Applications Computer 2 Computer 1 25. Network Links Sales Marketing Accounting Marketing Forecast Graph SalesTable Cost of Goods Sold Spreadsheet Integrated Data 26. Workgroups Computers are increasingly used to support teamwork and workgroups.Data, comments, and analysis are created and shared through networks of computers. 27. Workgroup Example Design Team Client HQ Connecticut Finance &amp; Management Team Consulting HQ California Design Project origination Singapore Design Plans Changes Changes &amp; Corrections Problems &amp; Suggestions Costs &amp; Budgets Changes &amp; Costs Cost Analysis Cost targets &amp; comments Changes &amp; Suggestions Message Message Supplier Contact Database Design Proposals Cost Analyses 1 2 3 4 Supplier Contact Database Message Design Proposals 28. Problems with Sharing </p> <ul><li>Same software </li></ul> <ul><li><ul><li>Data conversion tools weak. </li></ul></li></ul> <ul><li><ul><li>Exact layouts require same versions. </li></ul></li></ul> <ul><li>Same environment, fonts, devices, drivers </li></ul> <ul><li><ul><li>Hardware conversions not exact. </li></ul></li></ul> <ul><li><ul><li>Missing devices might cause crashes. </li></ul></li></ul> <ul><li>Need access and network paths. </li></ul> <ul><li>Transmission time. </li></ul> <ul><li>Concurrency </li></ul> <ul><li><ul><li>Tracking, Locking, Replication. </li></ul></li></ul> <p>29. Data Warehousing and Mining </p> <ul><li>Data Warehousing </li></ul> <ul><li><ul><li>Building a Data Warehouse </li></ul></li></ul> <ul><li><ul><li>maintaining a Data Warehouse </li></ul></li></ul> <ul><li><ul><li>Limitations of Data Warehousing </li></ul></li></ul> <ul><li>Data Mining </li></ul> <ul><li><ul><li>SQL and QBE </li></ul></li></ul> <ul><li><ul><li>On-Line Analytical Process (OLAP) </li></ul></li></ul> <ul><li><ul><li>Slice and Dice(Drill Down) </li></ul></li></ul> <p>30. Data Warehouse/Legacy Systems Data Data Data Data Decision maker manager Data warehouse Selected data items Analysis tools Shared access Sales transactions and production operations Interdepartmental teams 31. Open Systems </p> <ul><li>Integrating Hardware </li></ul> <ul><li>Integrating Software </li></ul> <ul><li>Establishing Standards </li></ul> <ul><li>Problems with System Upgrade </li></ul> <p>32. Integration with Diversity PC client IBM central computer Unix file server Radio Network Hardware compatibility: support for network connections. Software compatibility: ability to store, transmit and display data created on different machines. Salespersons laptop Language compatibility: standard language, XML Common templates &amp; styles 33. XML: eXtensible Markup Language </p> <ul><li>Used as a standard means to transfer data to machines with unknown capabilities. </li></ul> <ul><li>Most hardware and software can read and understand the data. </li></ul> <ul><li>The tags describe the content. </li></ul> <ul><li>Usually a separate schema file is used to describe the tags and the document structure.</li></ul> <p>34. GDSS </p> <ul><li>Group Decision Support Systems </li></ul> <ul><li><ul><li>Brainstorming </li></ul></li></ul> <ul><li><ul><li>Shared access </li></ul></li></ul> <ul><li><ul><li>Voting </li></ul></li></ul> <ul><li><ul><li>Record of comments </li></ul></li></ul> <ul><li><ul><li>Anonymity? </li></ul></li></ul> <ul><li>Drawbacks </li></ul> <ul><li><ul><li>Typing </li></ul></li></ul> <ul><li><ul><li>Facilitator </li></ul></li></ul> <ul><li><ul><li>Costs </li></ul></li></ul> <p>35. 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. 36. Summary </p> <ul><li>Business Integration </li></ul> <ul><li>Enterprise Resource Planning </li></ul> <ul><li>Customer Relationship Management </li></ul> <ul><li>Workgroups </li></ul> <ul><li>Data Warehouses </li></ul> <ul><li>Integration with Diversity </li></ul> <p>37. Spreadsheet Base </p> <ul><li>Spreadsheet </li></ul> <ul><li><ul><li>Tables </li></ul></li></ul> <ul><li><ul><li>Graphs </li></ul></li></ul> <ul><li><ul><li>Retrieve from DBMS </li></ul></li></ul> <p>Sales Report for November Data retrieved from Database: Region Sales Returns Net North 1,555 3211234 South 5,663 6644999 East 8,883 7838100 West 3,441 2413200 Total 19,542 2,009 17,533 38. Microsoft Pivot Table </p> <ul><li>Data - Pivot table report. </li></ul> <ul><li>Select data using a database query (Rolling Thunder). </li></ul> <ul><li>Choose data for rows, columns and table computations (row: ModelType, SaleState; column: Month(SaleDate); Table: SalePrice. </li></ul> <ul><li>Create additional groups (Mark quarters, Data - Group and outline - Group. </li></ul> <ul><li>Hide or show detail. </li></ul> <p>39. Spreadsheet link to DBMS </p> <ul><li>Request data </li></ul> <ul><li>Send data </li></ul> <ul><li>Fill spreadsheet </li></ul> <ul><li>Data changes </li></ul> <ul><li>Send new data </li></ul> <p>Spreadsheet DBMS data (1)Query to request data (2)Send data (4)Data changes (5)Send new data (3)Fill spreadsheet 40. Word Processor Integration </p> <ul><li>Compound Document </li></ul> <ul><li><ul><li>Graphics </li></ul></li></ul> <ul><li><ul><li>Tables </li></ul></li></ul> <ul><li><ul><li>Text </li></ul></li></ul> <ul><li><ul><li>Sound </li></ul></li></ul> <ul><li><ul><li>Video </li></ul></li></ul> <p>41. Database Report Writer </p> <ul><li>DBMS </li></ul> <ul><li><ul><li>Numbers </li></ul></li></ul> <ul><li><ul><li>Text </li></ul></li></ul> <ul><li><ul><li>Dates </li></ul></li></ul> <ul><li><ul><li>Pictures </li></ul></li></ul> <ul><li><ul><li>Objects </li></ul></li></ul> <ul><li>Repeating </li></ul> <p>DBMS Report Writer Catalog of Bicycle Parts part# name description price Picture 42. Integration with Windows </p> <ul><li>Cut &amp; Paste </li></ul> <ul><li><ul><li>Static </li></ul></li></ul> <ul><li><ul><li>Dynamic </li></ul></li></ul> <ul><li>Object Linking &amp; Embedding </li></ul> <ul><li><ul><li>In place editing </li></ul></li></ul> <ul><li><ul><li>Design package availability </li></ul></li></ul> <ul><li><ul><li>Data compatibility </li></ul></li></ul> <ul><li><ul><li>Servers </li></ul></li></ul> <ul><li><ul><li>Containers </li></ul></li></ul> <p>Server Application Container Link 43. SAP Financials </p> <ul><li>Treasury </li></ul> <ul><li><ul><li>Cash management </li></ul></li></ul> <ul><li><ul><li>Treasury management </li></ul></li></ul> <ul><li><ul><li>Market risk management </li></ul></li></ul> <ul><li><ul><li>Funds management </li></ul></li></ul> <ul><li>Enterprise Control </li></ul> <ul><li><ul><li>Executive information system </li></ul></li></ul> <ul><li><ul><li>Business planning and budgeting </li></ul></li></ul> <ul><li><ul><li>Profit center accounting </li></ul></li></ul> <ul><li><ul><li>Consolidation </li></ul></li></ul> <ul><li>Financial Accounting </li></ul> <ul><li><ul><li>General ledger </li></ul></li></ul> <ul><li><ul><li>Accounts receivable/payable </li></ul></li></ul> <ul><li><ul><li>Special ledgers </li></ul></li></ul> <ul><li><ul><li>Fixed assets </li></ul></li></ul> <ul><li><ul><li>Legal consolidation </li></ul></li></ul> <ul><li>Investment Management </li></ul> <ul><li><ul><li>Investment planning/budgeting/control </li></ul></li></ul> <ul><li><ul><li>Depreciation forecast/simulation/calculate </li></ul></li></ul> <ul><li>Controls </li></ul> <ul><li><ul><li>Overhead cost </li></ul></li></ul> <ul><li><ul><li>Activity based costing </li></ul></li></ul> <ul><li><ul><li>Product cost </li></ul></li></ul> <ul><li><ul><li>Profitability analysis </li></ul></li></ul> <p>44. SAP Logistics </p> <ul><li>Purchasing </li></ul> <ul><li>Materials management </li></ul> <ul><li>Manufacturing </li></ul> <ul><li>Warehousing </li></ul> <ul><li>Quality management </li></ul> <ul><li>Plant maintenance </li></ul> <ul><li>Service management </li></ul> <ul><li>Sales </li></ul> <ul><li>Distribution </li></ul> <ul><li>Product data management </li></ul> <ul><li><ul><li>Master data management </li></ul></li></ul> <ul><li><ul><li>Design and change process </li></ul></li></ul> <ul><li><ul><li>Product structure </li></ul></li></ul> <ul><li><ul><li>Development projects </li></ul></li></ul> <ul><li>Sales and distribution </li></ul> <ul><li><ul><li>Sales activities </li></ul></li></ul> <ul><li><ul><li>Sales order management </li></ul></li></ul> <ul><li><ul><li>Shipping and transportation </li></ul></li></ul> <ul><li><ul><li>Billing </li></ul></li></ul> <ul><li><ul><li>Sales information system </li></ul></li></ul> <p>45. SAP Logistics </p> <ul><li>Production planning and control </li></ul> <ul><li><ul><li>Production planning </li></ul></li></ul> <ul><li><ul><li>Material requirements planning </li></ul></li></ul> <ul><li><ul><li>Production control and capacity planning </li></ul></li></ul> <ul><li><ul><li>Costing </li></ul></li></ul> <ul><li><ul><li>Order information system </li></ul></li></ul> <ul><li><ul><li>Shop floor information system </li></ul></li></ul> <ul><li>Project system </li></ul> <ul><li><ul><li>Work breakdown structures </li></ul></li></ul> <ul><li><ul><li>Network planning techniques, milestones </li></ul></li></ul> <ul><li><ul><li>Cost, revenue, financial, schedule, and resource management </li></ul></li></ul> <ul><li><ul><li>Earned value calculation </li></ul></li></ul> <ul><li><ul><li>Project information system </li></ul></li></ul> <p>46. SAP Logistics </p> <ul><li>Materials management </li></ul> <ul><li><ul><li>Purchasing </li></ul></li></ul> <ul><li><ul><li>Inventory management </li></ul></li></ul> <ul><li><ul><li>Warehouse management </li></ul></li></ul> <ul><li><ul><li>Invoice verification </li></ul></li></ul> <ul><li><ul><li>Inventory controlling </li></ul></li></ul> <ul><li><ul><li>Purchasing information system </li></ul></li></ul> <ul><li>Quality management </li></ul> <ul><li><ul><li>Quality planning </li></ul></li></ul> <ul><li><ul><li>Quality inspections </li></ul></li></ul> <ul><li><ul><li>Quality control </li></ul></li></ul> <ul><li><ul><li>Quality notifications and certificates </li></ul></li></ul> <ul><li><ul><li>Quality management information system </li></ul></li></ul> <ul><li>Plant maintenance </li></ul> <ul><li><ul><li>Structuring technical systems </li></ul></li></ul> <ul><li><ul><li>Maintenance resource planning </li></ul></li></ul> <ul><li><ul><li>Maintenance planning </li></ul></li></ul> <ul><li><ul><li>System for technical and cost accounting data </li></ul></li></ul> <ul><li><ul><li>Maintenance information system </li></ul></li></ul> <p>47. SAP Logistics </p> <ul><li>Service management </li></ul> <ul><li><ul><li>Customer installed