Solving Business Problems with IT
Transcript of Solving Business Problems with IT
Solving Business Problems with IT
Chapter 7
Integration of Information
BUAD 358 - Information Systems II
Roanoke College
Outline
• Integration in Business• Integrating Data with
Applications• Integration over Networks• Workgroup Integration• Group Decisions• Open Systems: Integration
Integration
Everyone in the company including managers, salespeople, and engineers need access to the same data across the organization.
Integration
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Operations
Tactics
Strategy
data data data data data
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Integration In Business
• Static and Dynamic Integration• Data Integration• Application Integration
– Spreadsheets– Word Processors– Database Reports– Guidelines for Integrating Data
Business Integration Example
Daily Sales Report February 11, 1999
Department Item# Q-sold Price ValueHouse 1153 52 2.95 153.40
5543 13 0.59 7.67W.Clothing 5563 1 87.32 87.32
7765 4 54.89 219.569986 2 15.69 31.38
Shoes 1553 2 65.79 131.586673 1 29.39 29.39
Total Sales: 660.30
Returned Merchandise LogFebruary 11, 1999
Item# Q Price Value1153 3 2.95 8.853353 6 27.59 165.544453 2 15.95 31.908878 1 24.95 24.95
Total 12 231.24
Commissions February 11, 1999
Emp# Name Dept Sales Rate Amount1143 Jones House 543.95 5% 27.202895 Brown M.Clothing 775.35 4% 31.014462 Smith W.Clothing 1,544.52 5% 77.237893 Torrez Shoes 876.93 6% 52.629963 Cousco M.Clothing 589.47 5% 29.47
File: C07E06.xlsFile: DeptStor.mdb
Integrated Report Example
Weekly Sales Analysis 2/11/96 - 2/17/96Manager comments are written in the first ten pages, along with comments on special events.
Department AnalysisDept Sales Returns Commissions NetHouse 4,113.58 25.35 205.68 3,882.55W.Clothing 54,221.92 998.52 3,024.64 50,198.76M.Clothing 28,664.48 356.24 1,421.58 26,886.66Shoes 10,225.31 853.47 592.36 8,779.48Total: 97,225.29 2,233.58 5,244.26 89,747.45
Sales & Net Sales
0200004000060000
House W. Cloth. M. Cloth. Shoes
1960s & 1970s MIS Pieces
Purchasing:Orders
Sales:Orders
Production:MRP
Marketing:Forecasts
Accounting:Integrated DataSeparateReports
Changes
salesdata
3 reports(printed) weekly reports
1970sSalesTerminals
SalesTerminals
Centralcomputer:
create reports
Manager:Integrate, graph
analyze Secretary:type & revise
Management
salesdata
3 reports(printed) weekly reports
1980sSalesTerminals
SalesTerminals
Centralcomputer:
create reports
Manager:Integrate, graph
analyze
Management
personal computer
salesdata
1990sSalesTerminals
SalesTerminals
DBMS:On-line data
Personal ComputerWeekly reports &ad hoc queries(applications)
Managementquery
data
Integration in 2000s
salesdata
SalesTerminals
SalesTerminals
DBMS
Executive InformationSystem
Personal ComputerOr PDA
Or Browser
Management
query
data
Suppliers
Banks
Production/Service
Enterprise Resource Planning
Data Integration
Finance data
Accounting data
Marketing dataHuman
Resource data
Production data
Sales data
Business Integration
Vendors Customers
Design &Engineering
Marketing
Distribution
Manufacturing
Purchasing
Administration & Management
HRM Accounting Finance MIS
Just-in-Time
Quality control & Custom orders
QuickResponse
Designs and Quality
MassCustomization
Demand-pull
Design feasibility& production costs
product planning
partnerships& jointdevelopment
partnerships& jointdevelopment
planning& monitoring
planning& monitoring
Dynamic Links
• Advantages– Data references are always up-to-
date.
– Computer & document know the source of all components.
– Updates and changes are automatic, with less user training.
Dynamic Links
• Disadvantages– Moving a document forces links to be rebuilt or
dropped.
– Cannot make radical changes to underlying components
• Software upgrade problems.
• File deletions, moves and major alterations affect other (unknown) users.
– Data changes can cause reformats that require fine-tuning of layouts.
Business Integration Networks & Workgroups
• Enterprise Resource Planning (ERP)• Customer Relationship Management (CRM)• Integrating over Networks• Workgroup Integration
– Communication– Compound Documents– Databases– Applications
• Problems with Sharing
ERP Integration
Database
Headquarters(France)
Database
Subsidiary(Spain)
Financial dataGeneral ledgerPayroll…
ManufacturingProduct detailsInventory…
Use inventory item.Deduct quantity.Update inventory value.
Check for reorder point.Order new item through EDI.Update Accounts payable.
Project cost report.Daily production report.
Weekly financial status.Cash flow.Budget versus actual cost.
Enterprise Resource Planning (
http://www.microsoft.com/dynamics/ax/product/kims.mspx)
• Integrated systems• Examples
– SAP– Oracle (Peoplesoft)– Lawson– J.D. Edwards
• Basic features included– Accounting– Purchasing– HRM– Investment management
Enterprise Resource Planning
• International environment– Multiple currencies– Multiple languages– Procedures and practices– Follows local (national) rules– Follows consolidation rules– Example
• U.S. firm with European subsidiaries.• Data is entered once• European reports are generated for subsidiaries following
local rules• Results are converted and consolidated to U.S. firm following
international and U.S. rules
SAP• Based in Germany, now
worldwide• Support for international
transactions and multinational firms
• Runs on multiple database and hardware platforms
• Can handle large and small companies
• Expensive, but price is relative.
• Financials• Logistics• Human resource
management
Customer Relationship Management• Multiple Contact Points
– The goal is to provide a single, integrated view of all customer activity, available to all employees who interact with the customer.
• Feedback, Individual Needs, and Cross Selling– Having better information enables workers to
provide better service, meet the individual needs of each customer.
Static Integration
Document
• Copy the objects to the document.• Changes to the original do not affect the
copies.
ContainerDocumentOriginal
spreadsheetobject
Originalgraphobject
Static copyof spreadsheet
object
Static copyof graphobject
Dynamic Integration
Document
• Objects are linked to the document.• Document requests changes and
updates copies as needed.
ContainerDocument
Originalspreadsheet
object
Originalgraphobject
Dynamic displayof spreadsheet
copy
Dynamic displayof graph copy
request changes
send data
request changes
send data
Compound Document
Container Document
Database
Graph
Image
Text
Spreadsheet
Integration over Networks
• Share data
• Support links– Data– Software availability
• Joint Authorship
• Transmit reports
File Server
ContainerDocument
CirculatedReport
ServerApplications
Computer 2Computer 1
Network LinksSales
Marketing
Accounting
Marketing ForecastGraph
Sales Table
Cost of Goods SoldSpreadsheet
Integrated Data
Workgroups
Computers are increasingly used to support teamwork and workgroups. Data, comments, and analysis are created and shared through networks of computers.
Workgroup Example
Design Team
Client HQConnecticut
Finance & Management Team
Consulting HQCalifornia
Design Projectorigination
Singapore
Design Plans
Changes
Changes& Corrections
Problems &Suggestions
Costs & Budgets
Changes &Costs
Cost Analysis Cost targets& comments
Changes &Suggestions
Message
MessageSupplierContact
Database
DesignProposals
SupplierContact
Database
MessageDesign
Proposals
CostAnalyses
1
2
3
4
Problems with Sharing
• Same software– Data conversion tools weak.– Exact layouts require same versions.
• Same environment, fonts, devices, drivers– Hardware conversions not exact.– Missing devices might cause crashes.
• Need access and network paths.• Transmission time.• Concurrency
– Tracking, Locking, Replication.
Data Warehousing and Mining
• Data Warehousing– Building a Data Warehouse– maintaining a Data Warehouse– Limitations of Data Warehousing
• Data Mining– SQL and QBE– On-Line Analytical Process (OLAP)– Slice and Dice (Drill Down)
Data Warehouse/Legacy Systems
Data
Data
Data
Data
Decision maker manager
Datawarehouse
Selecteddata items
Analysistools
Shared access
Sales transactionsand production operations
Interdepartmentalteams
Open Systems
• Integrating Hardware
• Integrating Software
• Establishing Standards
• Problems with System Upgrade
Integration with Diversity
IBMcentral computer
Unixfile server
RadioNetwork
Hardware compatibility:support for network connections.
Software compatibility:ability to store, transmit and displaydata created on different machines.
PC client
Salesperson’slaptop
Language compatibility:standard language, XMLCommon templates & styles
XML: eXtensible Markup Language
• Used as a standard means to transfer data to machines with unknown capabilities.
• Most hardware and software can read and understand the data.
• The tags describe the content.
• Usually a separate schema file is used to describe the tags and the document structure.
GDSS• Group Decision Support Systems
– Brainstorming– Shared access– Voting– Record of comments– Anonymity?
• Drawbacks– Typing– Facilitator– Costs
GDSS Room
Group decision support systems can be used to coordinate meetings, record notes, take votes, and encourage participation. As shown in this system by Ventana corporation, each participant enters data in a PC, with summary results displayed on the central screen.
Summary
• Business Integration• Enterprise Resource Planning• Customer Relationship Management• Workgroups• Data Warehouses• Integration with Diversity
Spreadsheet Base
• Spreadsheet– Tables– Graphs– Retrieve from DBMS
Sales Report for November Data retrieved from Database:Region Sales Returns NetNorth 1,555 321 1234South 5,663 664 4999East 8,883 783 8100West 3,441 241 3200Total 19,542 2,009 17,533
0
5000
10000
N S E W
Net Sales
Microsoft Pivot Table
• Data - Pivot table report.• Select data using a database query (Rolling Thunder).• Choose data for rows, columns and table computations (row:
ModelType, SaleState; column: Month(SaleDate); Table: SalePrice.• Create additional groups (Mark quarters, Data - Group and outline -
Group.• Hide or show detail.
Sum of SalePrice Quarter MonthQuarter1 Quarter2 Quarter3 Quarter4 Grand Total
ModelTypeSaleStateHybrid 49,111.21 38,365.38 58,022.29 53,507.33 199,006.21Mountain 138,419.65 150,297.45 133,240.00 141,669.80 563,626.90Race 215,602.55 231,187.01 243,694.51 238,500.00 928,984.07Road 145,108.33 112,108.20 111,749.85 120,901.80 489,868.18Tour 79,222.71 89,869.80 81,602.01 95,506.07 346,200.59Track 7,703.77 7,450.00 15,125.00 4,750.00 35,028.77Grand Total 635,168.22 629,277.84 643,433.66 654,835.00 2,562,714.72
Spreadsheet link to DBMS
Request data Send data Fill spreadsheet Data changes Send new data
Spreadsheet
DBMS
data
(1) Query to request data
(2) Send data
(4) Data changes
(5) Send new data
(3) Fill spreadsheet
Word Processor Integration
• Compound Document– Graphics– Tables– Text– Sound– Video
W o r d P r o c e s s o r I n t e g r a t i o nM a n y r e p o r t s w i l lc o n t a i n l a r g e a m o u n t so f t e x t . A w o r dp r o c e s s o r w i l l b e u s e dt o e n t e r a n d f o r m a t t h ep a g e s . I f y o u w a n t t oi n c l u d e a g r a p h , i t c a nb e p l a c e d i n i t s o w n b o x
a n y w h e r e o n t h e p a g e . T h e f i g u r e s c a n h a v e t i t l e s , a n d t h e yc a n b e n u m b e r e d a u t o m a t i c a l l y . T e x t c a n a u t o m a t i c a l l y f l o wa r o u n d t h e b o x . Y o u c a n b u i l d a u t o m a t i c r e f e r e n c e s t o t h ef i g u r e n u m b e r s . I f y o u a d d o r m o v e a f i g u r e , t h e n u m b e r sa n d r e f e r e n c e s u p d a t e a u t o m a t i c a l l y .
S i m i l a r l y , y o u m i g h t w a n t t o i n c l u d e d a t a f r o ms p r e a d s h e e t s . I n t h i s c a s e , t h e b e s t m e t h o d i s t o c r e a t e a t a b l ei n t h e d o c u m e n t .
R e g i o n S a l e s P r o f i tW e s t 1 1 , 5 0 0 6 , 8 1 4E a s t 9 , 4 0 0 3 , 4 1 5
T o t a l 2 0 , 9 0 0 1 0 , 2 2 9
S a l e s & P r o f i t s
02 0 0 04 0 0 06 0 0 08 0 0 0
1 0 0 0 01 2 0 0 0
W e s t E a s t
Database Report Writer
• DBMS– Numbers– Text– Dates– Pictures– Objects
• Repeating
DBMS Report Writer
Catalog of Bicycle Parts
part# name
description
price
Picture
Integration with Windows
• Cut & Paste– Static
– Dynamic
• Object Linking & Embedding– In place editing
– Design package availability
– Data compatibility
– Servers
– Containers
Server Application
Container
Link
SAP Financials
• Treasury– Cash management– Treasury management– Market risk management– Funds management
• Enterprise Control– Executive information
system– Business planning and
budgeting– Profit center accounting– Consolidation
• Financial Accounting– General ledger
– Accounts receivable/payable
– Special ledgers
– Fixed assets
– Legal consolidation
• Investment Management– Investment
planning/budgeting/control
– Depreciation forecast/simulation/calculate
• Controls– Overhead cost
– Activity based costing
– Product cost
– Profitability analysis
SAP Logistics
• Purchasing• Materials management• Manufacturing• Warehousing• Quality management• Plant maintenance• Service management• Sales• Distribution
• Product data management– Master data management– Design and change process– Product structure– Development projects
• Sales and distribution– Sales activities– Sales order management– Shipping and transportation– Billing– Sales information system
SAP Logistics
• Production planning and control– Production planning
– Material requirements planning
– Production control and capacity planning
– Costing
– Order information system
– Shop floor information system
• Project system– Work breakdown
structures
– Network planning techniques, milestones
– Cost, revenue, financial, schedule, and resource management
– Earned value calculation
– Project information system
SAP Logistics• Materials management
– Purchasing– Inventory management– Warehouse management– Invoice verification– Inventory controlling– Purchasing information system
• Quality management– Quality planning– Quality inspections– Quality control– Quality notifications and
certificates– Quality management
information system
• Plant maintenance– Structuring technical
systems– Maintenance resource
planning– Maintenance planning– System for technical and
cost accounting data– Maintenance information
system
SAP Logistics• Service management
– Customer installed base administration
– Service contract management
– Call management– Billing– Service information system
• Integration– When the clerk enters a
sale, bills are generated automatically (mail, fax, or EDI).
– Sales and revenue are instantly updated in financial and control modules.
– The sales information system and EIS provide various up-to-date views and reports.
SAP HRM• Personnel management
– HR master data– Personnel administration– Information systems– Recruitment– Travel management– Benefits administration– Salary administration
• Organizational management– Organization structure– Staffing schedules– Job descriptions– Planning scenarios– Personnel cost planning
• Payroll accounting– Gross/net accounting– History function– Dialog capability– Multi-currency capability– International solutions
• Time management– Shift planning– Work schedules– Time recording– Absence determination– Error handling
SAP HRM
• Personnel development– Career and succession
planning– Profile comparisons– Qualifications
assessments– Additional training
determination– Training and event
management
• Other features– SAP Business
workflow– Internet scenarios– Employee self-service
SAP Integration
• Financial general ledger holds all base totals.
• Sub-ledgers are defined for important accounts– Accounts payable– Manufacturing– User-defined– etc.
• All transactions automatically flow through– Including currency conversions– Special rules can be defined
• Simple example– Manufacturing uses an item
from inventory– The quantity on hand is
updated– The inventory value is
automatically changed• On any sub-ledgers• On the general ledger
– Reports are generated in any currency
– New orders and payments can be generated through EFT.
SharePoint: Discussion
SharePoint: Survey• Create a new survey• Add questions
– Multiple Choice– Open ended/text– Selection Lists
• Run the survey• Graph the results
Tracking Changes and Adding Discussions
Annotation
• Insert - Comment• Insert - Object - Wave
• Make sure you and your colleagues have a sound card and microphone.
• Set up and test the multimedia tools.
• Know what you want to say and keep it short.
• Video can be used also but you need a camera, video capture card, and editing software.Comment
Recorded (wave)comment
SharePoint: Subscriptions to Monitor Changes
• Users can subscribe to a document or a directory.
• They will be notified by e-mail when changes are made.
• Or notified with a list of changes once a day, once a week, or on whatever schedule the user selects.
SharePoint: Routing Slip for Workflow
• A routing slip sends documents by e-mail to each person on the list in order.
• The document records changes and comments.
• Users on the list can approve or reject changes.
Cases: Ford Motor CompanyGeneral Motors
What is the company’s current status?
What is the Internet strategy?
How does the company use information technology?
What are the prospects for the industry?
www.ford.com
www.gm.com
Appendix: Microsoft NetMeeting
http://www.microsoft.com/netmeeting/
VideoParticipants
Sound,Video Document
Appendix: NetMeeting Chat Screen
Appendix: NetMeeting Shared Document
Changes are displayed as they are typed. The owner can integrate them later.
Tools Protect Document Track Changes