1. E. Wainright Martin Carol V. Brown Daniel W. DeHayes Jeffrey A. Hoffer William C. Perkins MANAGINGINFORMATIONTECHNOLOGY FIFTH EDITION CHAPTER 6 E NTERPRISE S YSTEMS

2. © 2005 Pearson Prentice-Hall Chapter 6 - 2 Interorganizational Systems  e-Business applications B2C – link businesses with their end consumers B2B – link businesses with other business customers or suppliers Electronic data interchange (EDI) systems A PPLICATION A REAS Page 182

3. © 2005 Pearson Prentice-Hall Chapter 6 - 3 Page 182 Figure 6.1 Types of Application Systems A PPLICATION A REAS Intraorganizational Systems   Enterprise systems – support all or most of the organization   Managerial support systems – support a specific manager or group of managers

4. © 2005 Pearson Prentice-Hall Chapter 6 - 4 C RITICAL C ONCEPTS Batch Processing versus Online Processing Batch Processing – group (or batch) of transactions are accumulated, then processed all at one time Figure 6.2 Batch Processing (simplified) Page 183

5. © 2005 Pearson Prentice-Hall Chapter 6 - 5 Batch Processing versus Online Processing Figure 6.3 Online Processing Online Processing – each transaction is entered directly into computer when it occurs C RITICAL C ONCEPTS Page 183

6. © 2005 Pearson Prentice-Hall Chapter 6 - 6 Page 183 Figure 6.1 Types of Application Systems Interactive system – a fully functional online system where computer quickly provides a user response In-line system – provides for online data entry, but processing of transactions deferred for batch processing Batch Processing versus Online Processing C RITICAL C ONCEPTS

7. © 2005 Pearson Prentice-Hall Chapter 6 - 7 Page 184 Functional information systems – information systems framework based on organization’s primary business functions Functional Information Systems Example Business Functions ProductionMarketingAccountingPersonnelEngineering C RITICAL C ONCEPTS

13. The Problems of Functional Systems Functional systems are limited due to operating in isolation. With isolated systems:  Data are duplicated because each application has its own database  Business processes are disjointed  Lack of integrated enterprise data  Inefficiency

15. Business Process Design The idea of the value chain as a network of value- creating activities became the foundation of a movement called business process design. The central idea is that organizations should not automate or improve existing functional systems. Rather they should create new, more efficient, business processes that integrate the activities of all departments involved in a value chain. The goal was to take advantage of as many activities of all departments involved in a value chain.

16. © 2005 Pearson Prentice-Hall Chapter 6 - 16 Page 184 Vertically integrated information system – serves more than one vertical level in an organization or industry Vertical Integration of Systems C RITICAL C ONCEPTS 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 Example Sales System

17. © 2005 Pearson Prentice-Hall Chapter 6 - 17 Page 185 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) Distributed Systems and Client/Server Systems C RITICAL C ONCEPTS

18. © 2005 Pearson Prentice-Hall Chapter 6 - 18 Page 185 Client/Server Systems Handles user interface Accesses distributed services through a network Client Runs on bigger machine Handles data storage for applications …   Databases   Web pages   Groupware Server Middleware Software to support clients and server interaction   Microsoft Windows 2003 Server   Novell NetWare   UNIX, Linux C RITICAL C ONCEPTS

19. © 2005 Pearson Prentice-Hall Chapter 6 - 19 Page 186 Client/Server Systems Two-tier configuration Three-tier configuration Client Server Client Application Server Database Server C RITICAL C ONCEPTS

20. A three-tier client/server application

21. © 2005 Pearson Prentice-Hall Chapter 6 - 21 Page 186 Fat client/thin server – most processing done on client Thin client/fat server – most processing done on server Note: Web and groupware servers usually thin clients Database servers usually thin servers Client/Server Systems C RITICAL C ONCEPTS

22. © 2005 Pearson Prentice-Hall Chapter 6 - 22 Page 186-187 Process thousands of transactions each day in most organizations Examples: sales, payments made and received, inventory shipped and received, paying employees Typical outputs: invoices, checks, orders, reports Critical to business operations T RANSACTION P ROCESSING S YSTEMS

23. © 2005 Pearson Prentice-Hall Chapter 6 - 23 Page 187 T RANSACTION P ROCESSING S YSTEMS Payroll System Figure 6.4 Components of a Payroll System

24. © 2005 Pearson Prentice-Hall Chapter 6 - 24 Page 188 T RANSACTION P ROCESSING S YSTEMS Order Entry System Figure 6.5 Online Order Entry System

25. © 2005 Pearson Prentice-Hall Chapter 6 - 25 Page 188-189 Also include transaction processing systems 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 Usually purchased from software vendor E NTERPRISE R ESOURCE P LANNING S YSTEMS

26. © 2005 Pearson Prentice-Hall Chapter 6 - 26 Page 189 How they differ: 1. 1. ERP modules are integrated 2. 2. ERP modules reflect a particular way of doing business E NTERPRISE R ESOURCE P LANNING S YSTEMS

27. © 2005 Pearson Prentice-Hall Chapter 6 - 27 Page 190 Choosing right software and implementation difficult and expensive Requires large investment of money and people resources Leading ERP software vendors:   SAP   PeopleSoft, Inc. (bought J.D. Edwards)   Oracle   Baan E NTERPRISE R ESOURCE P LANNING S YSTEMS

28. Enterprise resource planning (ERP) ERP integrates all departments and functions throughout an organization into a single IT system so that employees can make enterprise wide decisions by viewing enterprise wide information on all business operations ERP’s goal – every department or functional area work together sharing common information and not be a “silo”

29. © 2005 Pearson Prentice-Hall Chapter 6 - 29 Page 192 Is 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 D ATA W AREHOUSING

30. © 2005 Pearson Prentice-Hall Chapter 6 - 30 Page 192-193 Establishing a data warehouse:   Is time-consuming and expensive   Requires software tools to: 1. 1.Construct warehouse 2. 2.Operate warehouse 3. 3.Access and analyze data from the warehouse D ATA W AREHOUSING

31. © 2005 Pearson Prentice-Hall Chapter 6 - 31 Page 193 D ATA W AREHOUSING Figure 6.8 Key Elements of Data Warehousing

32. © 2005 Pearson Prentice-Hall Chapter 6 - 32 Page 194 CRM system – provides integrated approach to all aspects of company-customer interaction   Marketing   Sales   Support C USTOMER R ELATIONSHIP M ANAGEMENT

35. Customer Relationship Management CRM – involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization's profitability CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprise wide level CRM can enable an organization to:   Identify types of customers   Design individual customer marketing campaigns   Treat each customer as an individual   Understand customer buying behaviors

37. The Evolution of CRM

38. Supply Chain Management SCM involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability   List the steps typically taken when a customer buys a bike from Trek Basic components of SCM include:   Supply chain partners – partners throughout the supply chain that deliver finished products, raw materials, and services.   Supply chain operation – schedule for production activities   Supply chain logistics – product delivery process

39. Wal-Mart and Procter & Gamble SCM

40. Briefly explain the differences between SCM, CRM, and ERP SCM systems focus specifically on suppliers CRM systems focus specifically on customers ERP systems focus on everything, all processes, departments, and operations for an enterprise

41. © 2005 Pearson Prentice-Hall Chapter 6 - 41 Page 196 Electronic mail Work processing Voice mail Copying Desktop publishing Electronic calendaring Document imaging Document preparation, storage, and sharing O FFICE A UTOMATION Office automation – a set of office-related applications that may or may not be integrated into a single system

42. © 2005 Pearson Prentice-Hall Chapter 6 - 42 Page 197 Variants of e-mail:   Electronic bulletin boards   Listservs   Computer conferencing   Chat rooms   Instant messaging (IM) O FFICE A UTOMATION Electronic Mail

43. © 2005 Pearson Prentice-Hall Chapter 6 - 43 Page 198 Figure 6.9 Office of the Future Network Future Developments

44. © 2005 Pearson Prentice-Hall Chapter 6 - 44 Page 201 Groupware – industry term that refers to software designed to support groups by facilitating: collaboration communication coordination G ROUPWARE

45. © 2005 Pearson Prentice-Hall Chapter 6 - 45 Page 201 Electronic mail Electronic bulletin boards Computer conferencing Electronic calendaring Group scheduling Sharing documents Electronic whiteboards Meeting support systems Learning management systems Workflow routing Electronic forms Desktop videoconferencing Instant messaging Typical Features: G ROUPWARE

46. © 2005 Pearson Prentice-Hall Chapter 6 - 46 Page 201 Lotus Notes Novell GroupWise Microsoft Exchange Oracle Collaboration Suite Thruport Technologies’ HotOffice Groove Network’s Groove Workspace Software vendors: G ROUPWARE

47. © 2005 Pearson Prentice-Hall Chapter 6 - 47 Page 203 Figure 6.10 Lotus Notes ® Welcome Page (Copyright © 2004 IBM Lotus Software. Lotus Notes is a registered trademark of IBM Lotus Software. Used with permission of IBM Lotus Software.)

48. © 2005 Pearson Prentice-Hall Chapter 6 - 48 Page 206 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 I NTRANETS Intranet – a network operating within an organization that employs the TCP/IP protocol used on the Internet

49. © 2005 Pearson Prentice-Hall Chapter 6 - 49 Page 206-207 I NTRANETS Extranet – an Internet-based application that permits key trading partners to access another organization’s intranet Portal – software that provides intranets with a structure and easier access to internal information via a Web browser

50. © 2005 Pearson Prentice-Hall Chapter 6 - 50 Page 207-208 F ACTORY A UTOMATION 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

51. © 2005 Pearson Prentice-Hall Chapter 6 - 51 Page 208 F ACTORY A UTOMATION Table 6.1 Abbreviations Used in Factory Automation

52. © 2005 Pearson Prentice-Hall Chapter 6 - 52 Page 208 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 Engineering Systems F ACTORY A UTOMATION

53. © 2005 Pearson Prentice-Hall Chapter 6 - 53 Page 208 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 Manufacturing Administration F ACTORY A UTOMATION

54. © 2005 Pearson Prentice-Hall Chapter 6 - 54 Page 209 Supply chain management (SCM)  Systems to deal with distribution and transportation of raw materials and finished products throughout the supply chain  Are often interorganizational Manufacturing Administration F ACTORY A UTOMATION

55. © 2005 Pearson Prentice-Hall Chapter 6 - 55 Page 209 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 Factory Operations F ACTORY A UTOMATION

56. © 2005 Pearson Prentice-Hall Chapter 6 - 56 Page 209-210 F ACTORY A UTOMATION Robotics Robotics – a branch of artificial intelligence (AI) where scientists and engineers build machines to accomplish coordinated physical tasks like humans do