REVIEW FOR EXAM 3 BUS3500 - Abdou Illia, Fall 2008

The Internet and eBusiness Part 1

Brief history of the Internet Make sure you know what DNS is used for. 1969 The Defense Advanced Research Projects developed ARPANET, the precursor of the Internet 1971 Ray Tomlison invents e-mail 1979 USENET newsgroups created at Duke University and the University of North Carolina 1984 Domain Name System (DNS) established 1991 Tim Berners-Lee creates the World Wide Web 1994 First online shopping mall, first spam email, first pizza ordered online, first advertisement banner 2000 A major denial of service attack brings down websites such as Yahoo!, Amazon.com, and eBay 2002 Denial of service attack knocks out 8/15 root DNS servers

Accessing the Internet (www) Network Web Browser Webserver Software Packet Packet Route Router User PC needs: - Workstation Operating System - TCP/IP - Web browser (e.g. Internet Explorer) - Internet access (e.g. thru an ISP) - IP Address (e.g. 128.150.50.9) Webserver needs: Network (or Server) Operating System - TCP/IP - Domain name (e.g. eiu.edu) Internet access IP Address (e.g. 139.67.8.3)

Internet applications/services E-Mail File transfers Instant messaging (IM) Newsgroups Streaming audio and video Internet telephony World Wide Web (WWW) Portal

Portal Portal Web site that offers a broad array of resources and services; such as email newsgroup Serach engines Online shopping malls Example: yahoo!, msn, aol

Summary Questions Book Notes (a) Name some Internet applications/services (b) What is Instant Messaging? (c) What is a newsgroup? 9,14, 15 2) (a) What does a user PC needs for accessing the World Wide Web? (b) What is needed on the webserver side? 7 Name some Internet connection options available for residential users and businesses. 5-6 What is meant by podcasting? 16 (a) What is an intranet? (b) an extranet? (c) a portal 18,19 Refers to the slide # in class posted notes

Information Systems for Business Integration: ERP Systems Part 2

Production Department Business Integration? Suppliers Integration Vertical Production Department Sales Department Logistics Department Horizontal Integration Customers Q: what is meant by horizontal business integration? Vertical?

Systems for Horizontal Integration Enterprise Resource Planning (ERP) systems integrate all the internal processes through a common information system (or an integrated set of info systems) ERP system Production Department Warehousing Process1 Process2 Process1 Process2 Common Database Sales Department Logistics Department Process1 Process2 Process1 Process2 Marketing Department Accounting Department Process1 Process2 Process1 Process2

ERP Components (or Modules) Two types of components Core ERP Components Extended ERP Components Traditional components found in most ERP systems They primarily focus on internal operations Finance & Accounting Common Database Human Resource Manufacturing* * Also called Production & Material Management * Helps from new products development to actual production * Handles demand forecasting, production planning, production scheduling, quality control, etc.

ERP Components (or Modules) Extended ERP Components Extra components that might be included They primarily focus on external operations Business Intelligence1 Customer Relationship Management Common Database Supply Chain Management E-Business2 1 Provide information that help users in decision-making 1 Collects info used throughout the organization, organize it, and uses analytical tools to help decision-making process 2 Includes e-logistics (managing transportation & storage of goods over the Internet) and e-procurement (B2B purchase & sale of supplies & services over the Internet)

ERP Components (or Modules) ERP mainly used by medium and large businesses Average lifetime cost: $15 Million (2003 surveys) Implementation process: up to 5 years The largest vendors worldwide in 2005 according to Gartner Dataquest #    Vendor  Revenue (million $)  Market share (%) 1 SAP 4726 28.7 2 Oracle Applications* 1674 10.2 3 The Sage Group 1221 7.4 4 Microsoft Dynamics 616 3.7 5 SSA Global Technologies 464 2.8 * In January 2005, Oracle bought PeopleSoft the 3rd player until then.

Factors in ERP System Success Active support of upper management Having the best people on the implementation team Managing the time line well User involvement in the planning and implementing ERP systems

Summary Questions Book Notes What is the difference between Horizontal integration and Vertical integration? What could be the consequences of a bad horizontal integration? 5,6 2) What kind of information system is typically used by organizations for horizontal integration? 7 What are the core modules found in ERP systems?.? 10 What does the Manufacturing ERP component allow? Name some of the activities it handles Name the major three ERP software vendors 12 What are the success factors of ERP implementation? 14 Refers to the slide # in class posted notes

Review Questions Make sure you can answer the following questions about ERP: Chapter 10 Review Questions available in the Notes’ section of the course web site.

Information Systems for Business Integration: EDI, SCM, CRM Systems Part 2 (Cont.)

Supply Chain Management SCM

Supply Chain Supply Chain includes parties involved in the procurement of product or raw material Upstream parties Downstream parties

Supply Chain Management SCM SCM implies the management of information flow between a company and upstream and downstream parties of the supply chain Which of the following is NOT a potential benefit of SCM? It helps avoid shortage of raw material It could shorten the time for delivering finished products to distributors It could help organizations better forecast their production of goods and services It could help organizations better forecast the needs of their distributors None of the above

SCM Process Stages of SCM (SC Council’s Reference Model): Planning: develop and implement processes that attempt to forecast demand for products and services Goal: Balance demand with supply of raw material Sourcing: determine who should supply the items required Goal: Be supplied on time, within budget Production: make the product Schedule production Ensure raw materials are on hand when needed Product delivery (logistics) Everything from receiving a customer inquiry to invoicing Warehouse management is one very important factor Returns: managing returns of raw materials as well as finished goods

EDI: a SCM Technology Electronic Data Interchange (EDI): A network technology that allows the transfer and processing of business documents (usually orders) between a company and its suppliers Suppliers EDI Sys. EDI System Value Added Network (VAN) or Private network connection Company’s Internal processes Production Department Process1 Process2 Sales Department Process1 Process2 Delivery Department

EDI: SCM Technology EDI documents must be formatted according to specific standards ANSI X12 – used in North America EDIFACT – international, but widely used in Europe Advantages: Eliminates paperwork Reduces errors Speeds supply process Disadvantages: Provides connection only between two companies Limits freedom of comparing prices.

SCM information system Part of extended ERP components Could be bought separately Suppliers SCM Sys. - Forecast demand - Handle purchase of supply - Manage storage + shipping Three main functions Network connection Company’s Internal processes Sales Department Process1 Process2 Delivery Department Production Department SCM System

Customer Relationship Management CRM

CRM systems CRM systems are systems that can help manage all aspects of organizations’ relation with their customers. Which of the following is NOT a potential benefit of CRM systems? Provide better customer service Make call centers more efficient Help sales staff close deals faster Simplify marketing and sales processes Discover new customers None of the above

Goals of CRM systems Goal of CRM is to increase sales and repeat business by learning the customer Determine the customer’s needs and preferences Determine the customer’s satisfaction with service Determine which customers are in the magic 20 percent (or have the potential to become part of it) Recency, Frequency, Monetary value (RFM) at heart of CRM systems How recently a customer purchased items (Recency) How frequently a customer purchased items (Frequency) How much a customer spends on each purchase (Monetary Value

Summary Questions Book Notes Is the information flow between a company and its retailers part of its supply chain? 6 2) What are the potential benefit of SCM systems? 7 What are the 5 stages of SCM according to the SC Council’s Reference Model? 8 What is EDI? What kind of network connections are usually used in EDI? What is the EDI message standard used in the U.S.? 9 Are SCM systems part of ERP systems? Are SCM systems sold as separate system from ERP systems? 11 What are the potential benefit of CRM systems? 14 What is the main goal of using CRM systems? What is meant by RFM? 15 Refers to the slide # in posted class notes

Review Questions Make sure you can answer the following questions: Chapter 8-9 review Questions posted to the Review section of the course web site.

Managing Security Part 3

Best way to prepare Review the ppt notes or chapter 4 in the book to make sure you can answer the following questions Chapter 4 Review Questions available in the Review section of course web site Quiz 3 questions posted to the Review section of the course web site).

Managing the Development and Purchase of IS Part 4

Systems Development Methodology? The process companies go through to develop and maintain an information system Framework for successful IS development A System Development Methodology is used For building a new system Or for modifying an existing system Examples of SDM: System Development Life Cycle ￭ Prototyping Joint Application Development ￭ Rapid Application Development

Questions Which of the following is true about SDM? They provide guidelines for developing IS and maintaining them which includes upgrading and improving them. SDM are needed when a brand new IS has to be developed, but you don’t need to use a SDM when it comes to modifying an existing IS. When a company is engaged in developing an IS, the process involves the company’s employees who would be the future users of the IS, and IS professionals like system analysts and programmers. But it doesn’t involve the company’s management All of the above

Traditional Systems Development Life Cycle (SDLC) Planning Analysis Seven phases Planning 5) Testing Systems Analysis 6) Implementation Systems Design 7) Maintenance Development Typically one phase needs to be completed before beginning the next Problem in later phase may require return to previous phase Design Development Testing Implementation Maintenance

Question In SDLC, the 7 phases are typically followed in a sequential order, which means we don’t return to a previous phase in any circumstances True False

System Development Schedule Planning Feasibility Analyses System Development Schedule Feasibility analyses Technical Analysis Do the technologies exist to develop the system? Economic Analysis Can the organization afford the system? Will it provide an adequate Benefit? Operational Analysis (i.e. assessing the human element of the proposed system) Resistance to change Organizational politics System development schedule Is the proposed development time line realistic? Is the programming team available during Programming step? Planning performed by Project Manager using Search and investigation (e.g. for technical analysis step) Total Cost of Ownership analysis Project Management software

Systems Analysis Analyze current system Define new system requirement Systems analyst works with company to understand the problem fully and to detail the requirements of the proposed system Step 1: Analyze current system Objectives: Understand what things are done and how (business processes) Identify any problems associated w/ current business processes Techniques: Observe employees at work Talk to employees (potential users) Conducting interviews

Systems Analysis Step 2: Define new system’s requirements Analyze current system Define new system requirements Step 2: Define new system’s requirements Main Objective: Specify What need to be done (not how to do it) To be defined: Input requirements (nature of data, source, etc.) Processing requirements Output requirements (Types of reports, content, etc.) Storage requirements Tools and techniques Data flow diagrams (DFD) Start with high level process Add more levels with increased levels of detail Computer-Aided Software Engineering (CASE) tools Software that eases the systems development process

Data Flow Diagrams (DFD) Process . Symbolized by a rectangle or a curved rectangle. . Action performed by people of organizational units in order to transform input into output OR Action performed by people in the organizational units to help the units achieve their objectives Data flow . Symbolized by an arrow. . Shows data being passed from or to a process External Entity Symbolized by a square, an external entity is something (person, group, department, etc.) outside the system that interacts with the system by providing input or receiving information. Data storage Used to store data in the system. Represents a file, a database, etc.

DFD Exercise You should be able to answer Questions 1, 2, and 3 of the Lincoln Pizza’s ordering system DFD exercise. Hardcopies were given in class. You can also get a copy in the Notes’ section or in the Review section of the course web site.

Systems Design Using the requirements from Systems Analysis phase to design the new or modified system. Logical systems design Details the system’s functionality (what it should do?) Uses Structure charts to create top-down representation of system’s modules Uses System flowcharts to show relationships between modules Physical systems design Specifies all of the actual components (hardware, network, etc) used to implement the logical design The design must be frozen at end of this phase to prevent the to system grow indefinitely in terms of its scope and features Scope creep Feature creep Performed by system designer or (system analyst in some case)

Development Programming process is usually the most difficult and time consuming in the Development process. Development performed by programmers, database developers, and network engineers Programmers use Program Development Cycle Review the input, processing, output, and storage requirements Develop the logic of the programs (using Flowcharts and Pseudo code) Write the programs using code generators & programming languages Test and debug the programs Complete the programs documentation

Graphical illustration of the problem-solving logic within a program Development tools Program Flowchart: Graphical illustration of the problem-solving logic within a program Pseudocode: English-language statements that describe the processing steps of a program in paragraph form. Programming languages: Java C++ Visual Basic Etc. Code generators: Software that generate programs that programmers could modify.

Testing Programmers test modules Development team do unit testing Do they return proper outputs? Do they handle incorrect data appropriately? Development team do unit testing i.e. testing how modules work together System testing (software along with database and network component) Verification: Testing system in simulated environment with simulated data Validation: Testing system in real working environment with real data

Implementation Implementation strategies User training Direct cutover: Quick change to new system Parallel conversion: Old and new systems used in parallel for a while. Pilot testing: New system installed at only one location or one department Staged conversion: Only one part of the system installed, then another part is installed. User training

Maintenance Maintenance counts for as much as 80% of the total cost of an information system Tasks Correct errors found during implementation System enhancements Incremental upgrades Addition of major new features

Summary Questions Book Notes What is a System Development Methodology? What is it used for? 2) What are the 7 phases of the SDLC methodology? What kind of Feasibility analyses need to be performed during the Planning phase? Why is the system development schedule important? What are the two steps in the Systems Analysis phase? What techniques and tools are used during the Systems Analysis phase? What tools do programmers usually use during the Development phase? What is the difference between the Verification and the Validation tests performed during systems testing?

SDLC: Recap Steps Key actors Tools/Techniques 1. Planning Project Manager Project Management software, Total Cost Ownership analysis, etc. 2. System Analysis System Analyst, Users. Interviews, observing users at work, DFD 3. System Design System analyst (or system designer) System Flowchart, Structure chart 4. Development Programmers, database developers, network engineers Program Flowchart, Pseudo code, programming languages, DBMS 5. Testing Development team, Users Unit testing, verification, validation 6. Implementation Direct cutover, parallel conversion, pilot testing, staged conversion 7. Maintenance internal IS staff, external consultant Make sure you can answer questions about System Development (see link in Review section)