MANAGING INFORMATION TECHNOLOGY FIFTH EDITION CHAPTER 6 ENTERPRISE

MANAGING INFORMATION TECHNOLOGY FIFTH EDITION CHAPTER 6 ENTERPRISE SYSTEMS E. Wainright Martin Carol V. Brown Daniel W. De. Hayes Jeffrey A. Hoffer William C. Perkins

APPLICATION AREAS n Interorganizational Systems e-Business applications ü B 2 C – link businesses with their end consumers ü B 2 B – link businesses with other business customers or suppliers ü Electronic data interchange (EDI) systems © 2005 Pearson Prentice-Hall Chapter 6 - 2 2 Page 182

APPLICATION AREAS n 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 3 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) 4 Page 183

CRITICAL CONCEPTS Batch Processing versus Online Processing – each transaction is entered directly into computer when it occurs © 2005 Pearson Prentice-Hall Chapter 6 - 5 Figure 6. 3 Online Processing 5 Page 183

CRITICAL CONCEPTS Batch Processing versus Online Processing n Interactive system – a fully functional online system where computer quickly provides a user response n 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 6 Page 183

CRITICAL CONCEPTS Functional Information Systems n 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 7 Page 184

CRITICAL CONCEPTS Vertical Integration of Systems n 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 8 Page 184

CRITICAL CONCEPTS Distributed Systems and Client/Server Systems n 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 9 Page 185

CRITICAL CONCEPTS Client/Server Systems Client Server n Handles user interface n Runs on bigger machine n Accesses n Handles data distributed storage for services through a applications … network Databases Web pages Groupware © 2005 Pearson Prentice-Hall Chapter 6 - 10 Middleware n Software to support clients and server interaction Microsoft Windows 2003 Server Novell Net. Ware UNIX, Linux 10 Page 185

CRITICAL CONCEPTS Client/Server Systems n Two-tier configuration n Three-tier configuration Client Server Application Server Database Server © 2005 Pearson Prentice-Hall Chapter 6 - 11 11 Page 186

CRITICAL CONCEPTS Client/Server Systems n Fat client/thin server – most processing done on client n Thin client/fat server – most processing done on server Note: ü Web and groupware servers usually thin clients ü Database servers usually thin servers © 2005 Pearson Prentice-Hall Chapter 6 - 12 12 Page 186

TRANSACTION PROCESSING SYSTEMS n Process thousands of transactions each day in most organizations n Examples: sales, payments made and received, inventory shipped and received, paying employees n Typical outputs: invoices, checks, orders, reports n Critical to business operations © 2005 Pearson Prentice-Hall Chapter 6 - 13 Page 186 -187 13

TRANSACTION PROCESSING SYSTEMS Payroll System © 2005 Pearson Prentice-Hall Chapter 6 - 14 14 Figure 6. 4 Components of a Payroll System Page 187

TRANSACTION PROCESSING Order Entry System SYSTEMS © 2005 Pearson Prentice-Hall Chapter 6 - 15 Figure 6. 5 Online Order Entry System 15 Page 188

ENTERPRISE RESOURCE PLANNING SYSTEMS n Also include transaction processing systems n 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 n Usually purchased from software vendor © 2005 Pearson Prentice-Hall Chapter 6 - 16 Page 188 -189 16

ENTERPRISE RESOURCE PLANNING SYSTEMS n How they differ: 1. ERP modules are integrated 2. ERP modules reflect a particular way of doing business © 2005 Pearson Prentice-Hall Chapter 6 - 17 17 Page 189

ENTERPRISE RESOURCE PLANNING SYSTEMS n Choosing right software and implementation difficult and expensive n Requires large investment of money and people resources n Leading ERP software vendors: SAP People. Soft, Inc. (bought J. D. Edwards) Oracle Baan © 2005 Pearson Prentice-Hall Chapter 6 - 18 18 Page 190

DATA WAREHOUSING n Is the establishment and maintenance of a large data storage facility containing data on all (or at least many) aspects of the enterprise n Provides users data access and analysis capabilities without endangering operational systems © 2005 Pearson Prentice-Hall Chapter 6 - 19 19 Page 192

DATA WAREHOUSING n 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 - 20 Page 192 -193 20

DATA WAREHOUSING © 2005 Pearson Prentice-Hall Chapter 6 - 21 21 Figure 6. 8 Key Elements of Data Warehousing Page 193

CUSTOMER RELATIONSHIP MANAGEMENT n CRM system – provides integrated approach to all aspects of company-customer interaction Marketing Sales Support © 2005 Pearson Prentice-Hall Chapter 6 - 22 22 Page 194

CUSTOMER RELATIONSHIP MANAGEMENT CRM market segments: n Traditional out-of-the-box CRM n Traditional CRM with templates for specific vertical industries n Traditional out-of-the-box CRM with application development hooks n Industry-specific vertical CRM packages n Custom solutions from vertical systems integrators © 2005 Pearson Prentice-Hall Chapter 6 - 23 Page 195 -196 23

OFFICE AUTOMATION Office automation – a set of office-related applications that may or may not be integrated into a single system n n n n Electronic mail Work processing Voice mail Copying Desktop publishing Electronic calendaring Document imaging Document preparation, storage, and sharing © 2005 Pearson Prentice-Hall Chapter 6 - 24 24 Page 196

OFFICE AUTOMATION Electronic Mail n Variants of e-mail: © 2005 Pearson Prentice-Hall Electronic bulletin boards Listservs Computer conferencing Chat rooms Instant messaging (IM) Chapter 6 - 25 25 Page 197

Future Developments © 2005 Pearson Prentice-Hall Chapter 6 - 26 Figure 6. 9 Office of the Future Network 26 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 - 27 27 Page 201

GROUPWARE Typical Features: n Electronic mail n Electronic bulletin boards n Computer conferencing n Electronic calendaring n Group scheduling n Sharing documents n Electronic whiteboards © 2005 Pearson Prentice-Hall Chapter 6 - 28 n Meeting support systems n Learning management systems n Workflow routing n Electronic forms n Desktop videoconferencing n Instant messaging 28 Page 201

GROUPWARE Software vendors: n n n Lotus Notes Novell Group. Wise Microsoft Exchange Oracle Collaboration Suite Thruport Technologies’ Hot. Office Groove Network’s Groove Workspace © 2005 Pearson Prentice-Hall Chapter 6 - 29 29 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 - 30 Figure 6. 10 Lotus Notes® Welcome Page 30 Page 203

INTRANETS Intranet – a network operating within an organization that employs the TCP/IP protocol used on the Internet n 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 - 31 31 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 - 32 Page 206 -207 32

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 - 33 Page 207 -208 33

FACTORY AUTOMATION © 2005 Pearson Prentice-Hall Chapter 6 - 34 Table 6. 1 Abbreviations Used in Factory Automation 34 Page 208

FACTORY AUTOMATION Engineering Systems n Computer-aided design (CAD) – use of two and threedimensional computer graphics to create and modify engineering designs n Computer-aided engineering (CAE) – system that analyzes functional characteristics of a design and simulates the product performance under various conditions n Group technology (GT) – systems that logically group parts according to physical characteristics, machine routings, and other machine operations n Computer-aided process planning (CAPP) – systems that plan the sequence of processes that produce or assemble a part © 2005 Pearson Prentice-Hall Chapter 6 - 35 35 Page 208

FACTORY AUTOMATION Manufacturing Administration n 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 - 36 36 Page 208

FACTORY AUTOMATION Manufacturing Administration n 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 - 37 37 Page 209

FACTORY AUTOMATION Factory Operations n Computer-aided manufacturing (CAM) – of computers to control manufacturing processes Series of programs to control equipment on shop floor Includes guiding vehicles to move raw materials and finished products use Requires a lot of input from other systems © 2005 Pearson Prentice-Hall Chapter 6 - 38 automated 38 Page 209

FACTORY AUTOMATION 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 - 39 Page 209 -210 39