Managing information systems 7th edition brow ch05

MANAGEMENT INFORMATION SYSTEMS CHAPTER ENTERPRISE SYSTEMS Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-1 PART II - APPLICATION AREAS Intra-organizational systems: • Enterprise systems: (Ch 5) support all or most of the organization • Managerial Support systems (Ch 6) support a specific manager or group of managers Inter-organizational systems: • e-Business applications (Ch 7) - B2C – link businesses with end consumers - B2B – link businesses with other businesses Intermediaries Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-2 CHAPTERS AND Intra-Organizational systems Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-3 CRITICAL CONCEPTS Batch processing • • A group (or batch) of transactions are accumulated, then processed all at one time Key Disadvantage: Time delay before the master file updated Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-4 CRITICAL CONCEPTS Online processing • • • Each transaction is entered directly into computer when it occurs Interactive System: A fully implemented online system where user interacts directly with the computer In-Line System: Provides for online data entry, but processing of transactions is deferred for batch processing Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-5 CRITICAL CONCEPTS Batch processing vs Online processing Batch Processing • Significant delay before master file is updated (usually day) • Much less expensive to operate • Some applications naturally suited for batch processing Online Processing • Master file updated within a fraction of a second • Much more expensive to operate • Some applications need to be processed in real time (e.g., payroll) Given these tradeoffs, hybrid systems that combine online data entry, Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall with batch processing, are very common 5-6 CRITICAL CONCEPTS Functional information systems • Information systems that support one primary business function or process of an organization Example Business Functions and Subsystems Marketing Accounting Production Planning Production Scheduling Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall Personnel Personnel Engineering Sales Forecasting Etc 5-7 CRITICAL CONCEPTS Vertically integrated information systems • Serve more than one vertical level in an organization or industry Top Management Long-term trend analysis Sales System Example Middle Management Weekly data analysis to track slow-moving items and productive salespeople Produce invoices Capture initial sales data Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-8 CRITICAL CONCEPTS Distributed systems • Refers to mode of delivery: Processing power is distributed to multiple sites, which are linked via telecommunications Client/server systems • A type of distributed system where processing power is distributed between a central server computer and a number of client computers (usually PCs) Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-9 CRITICAL CONCEPTS Client/server systems and Middleware Middleware Client • • Handles user • Software to support interface clients and server Accesses distributed interaction services through a network Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall • Three categories: – Server operating systems – Transport stack software – Service-specific software Server • • Runs on bigger machine Handles data storage for applications … – – – Databases Web pages Groupware 5-10 OFFICE AUTOMATION Video Conferencing • • • Permits face-to-face meetings and conferences without need for costly and time-consuming travel Computer-generated reports and graphics (e.g., PowerPoint presentations) can be shared during the conference Videoconferencing can be used at the desktop level for a smaller audience and at conference room level for larger audience • • Polycom Inc is a worldwide leader in videoconferencing Skype has been one of the most popular ways of videoconferencing over the internet Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-34 GROUPWARE AND COLLABORATION Groupware • Software designed to support groups by facilitating: - Collaboration - Communication - Coordination • • Also called collaboration or collaborative environment tools Products vary in the features they provide Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-35 GROUPWARE Common Groupware Features • Electronic mail • Meeting support systems • Electronic bulletin boards • Workflow routing • Computer conferencing • Electronic forms • Electronic calendaring • Internet telephony • Group scheduling • Sharing documents • Desktop • Learning management videoconferencing • Electronic whiteboards systems • Instant messaging • Shared workspace Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-36 GROUPWARE • Lotus Notes (purchased by IBM in 1995) Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-37 GROUPWARE Lotus Notes Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-38 INTRANETS AND PORTALS Intranet • A network operating within an organization that employs the same TCP/IP protocol used on the Internet Advantages: - Implementation is relatively easy (Web technologies) - Web browser acts as “universal client” that works with heterogeneous platforms - E-mail and document sharing available to all employees - Low cost due to common technologies and little training Web Portal • Software that provides intranets with a structure and easier access to internal information via a Web browser - Initial intranets had lots of documents, but little structure to help users find them Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-39 FACTORY AUTOMATION • Traditional factory automation: - 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) - Combines MRP with the ability to carry out schedules through computer controlled machines Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-40 COMPUTER-INTEGRATED MANUFACTURING • Three major categories of CIM systems Engineering systems Manufacturing administration Factory automation Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-41 COMPUTER-INTEGRATED MANUFACTURING Engineering systems • Computer-aided design (CAD) – use of two and three-dimensional 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 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-42 COMPUTER-INTEGRATED MANUFACTURING Manufacturing Administration Systems • Manufacturing Resources Planning systems (MRP II) - A system that usually has three components: Master production schedule Material requirements planning Shop floor control - May include just-in-time (JIT) production to minimize inventory - Does not directly control machines on the shop floor Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-43 COMPUTER-INTEGRATED MANUFACTURING Manufacturing Administration Systems, continued Supply Chain Management - Systems to deal with distribution and transportation of raw materials and finished products throughout the supply chain - Are often inter-organizational systems that communicate with suppliers and/or distributors Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-44 SUPPLY CHAIN MANAGEMENT (SCM) SYSTEMS • Supports procurement of components needed to make a product or service and movement and distribution of finished products through the supply chain • Five basic components of SCM system: Plan: developing strategy for managing resources Source: choosing suppliers Make: manufacturing the product Deliver: logistics of getting product to the customer Return: procedure for handling defective products Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-45 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 Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-46 FACTORY AUTOMATION Factory operations • Manufacturing automation protocol (MAP) – communications protocol to ensure an open manufacturing system - Pioneered by General Motors and now accepted by nearly all manufacturers and vendors • Allows for seamless communication between all equipment on the factory floor Shop Floor Control (SFC) Systems - Provides online, real-time control and monitoring of machines on the shop floor - Allows for analyzing machine activity to take corrective measures Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-47 FACTORY AUTOMATION Robotics • A branch of artificial intelligence (AI) where scientists and engineers build machines to accomplish coordinated physical tasks like humans • Advantages: - Perform repetitive tasks tirelessly - Produce consistent high-quality output - Avoid putting humans at risk (subject to dangers such as paint inhalation or retinal damage) Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-48 [...]... numerous subsystems Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-16 TRANSACTION PROCESSING SYSTEMS Order entry system • • • Sales Order Processing or a Query Output includes invoices for sales orders Linked to other subsystems Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-17 ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS Enterprise Resource Planning (ERP) Systems. .. Education, Inc publishing as Prentice Hall 5-29 CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Types of purchased CRM systems CRM Suites e-CRM Ex Siebel Ex: Salesforce.com ERP Extensions Ex mySAP Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-30 CUSTOMER RELATIONSHIP MANAGEMENT SUPPORTED BY A DATA WAREHOUSE • CRM systems often pull data that is stored in a data warehouse • Example: Harrah’s...CRITICAL CONCEPTS 2- tier vs 3- tier Client/server systems 3-tier system 2-tier system - Original model - Popular beginning mid- 1990’s Client Client Server Application Server Database Server Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-11 CRITICAL CONCEPTS Client/server systems and Fat/Thin Models • Fat client/thin server: most processing done on... +…) Process-oriented way of doing business - Not separate systems for separate functions - Support for “Order fulfillment,” not just Sales • • Usually purchased from a software vendor ERP = “First wave” of enterprise system packages “Later waves” of enterprise system packages - Customer relationship management (CRM) Supply chain management (SCM) systems Copyright © 2011 Pearson Education, Inc publishing... Education, Inc publishing as Prentice Hall 5-19 ERP SYSTEMS, Continued • • • Suite from one vendor OR “best of breed” from multiple vendors Some organizations implement Enterprise Support modules only ( Financials, HR) Value-Chain module implementations involve large investment of money and people resources because of impact on business • Have become “essential” systems in many industries Source: Gartner Dataquest... avoided for updating legacy systems (e.g., Y2K and Euro compliance) Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-23 DATA WAREHOUSING • 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 • Designed for analysis... Data warehouse is “read only”: existing data is not overwritten or updated Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-26 CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS Customer relationship management systems (CRM) • A business strategy directed at customer relationships that involves new business processes for execution and communication - • Customer interactions focused on customer... channels for marketing, sales, and support - Cross-functional vs single functional view Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-27 CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS CRM systems • A new way to compete using IT: service-based differentiation - Single-face-to-the-customer, no matter which channel customer uses Traditional Channels New Electronic Channels • Call centers... partners • Retail dealer networks/ business partners Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall • Communications via wireless devices 5-28 CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS CRM systems, continued • Some top CRM enterprise vendors offer: - Traditional out-of-the-box CRM Traditional CRM with templates for specific vertical • Major ERP software vendors also offer CRM modules... PROCESSING SYSTEMS (TPS) • Thousands of transactions critical to business operations are processed each day in large organizations for sales, bills for sales and customer payments, inventory shipped and received, payments to employees, etc • Typical outputs: invoices, checks, orders, reports Copyright © 2011 Pearson Education, Inc publishing as Prentice Hall 5-15 TRANSACTION PROCESSING SYSTEMS Payroll