1. REVIEW FOR EXAM 3
BUS Abdou Illia, Fall 2008

2. The Internet and eBusiness
Part 1

3. 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
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 , 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

4. 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 )
Webserver needs:
Network (or Server) Operating System - TCP/IP - Domain name (e.g. eiu.edu)
Internet access
IP Address (e.g )

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

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

7. 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

8. Information Systems for Business Integration: ERP Systems
Part 2

9. 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?

10. 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

11. 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.

12. 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)

13. 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.

14. 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

15. 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

16. 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.

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

18. Supply Chain Management SCM

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

20. 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

21. 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

22. 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

23. 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.

24. 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

25. Customer Relationship Management CRM

26. 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

27. 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

28. 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

29. 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.

30. Managing Security
Part 3

31. 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).

32. Managing the Development and Purchase of IS
Part 4

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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.

41. 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.

42. 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)

43. 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

44. 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.

45. 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

46. 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

47. 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

48. 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?

49. 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)