The document provides information on management and management information systems. It defines management as the process of coordinating work activities so that they are completed efficiently and effectively with and through other people. It also discusses the key components of an information system including hardware, software, data, people, and procedures. Transaction processing systems are described as systems that record and process business transactions like sales, inventory, and accounting.

1. ManageMent
InforMatIon SySteM

2. What IS ManageMent
 Management
 the process of coordinating work activities
so that they are completed efficiently and
effectively with and through other people
Process - represents ongoing functions or
primary activities engaged in by managers
Coordinating - distinguishes a managerial
position from a non-managerial one

3. What IS ManageMent
 Management (cont.)
 Efficiency - getting the most output from the least
amount of inputs
 “doing things right” (not wasting resources)
 concerned with means
 Examples: cutting inventory levels
 Decreasing the amount of time to manufacture
products
 Effectiveness - completing activities so that
organizational goals are attained
 “doing the right things”
 concerned with ends

4. effIcIency and effectIveneSS In
ManageMent
Management Strives For:
Low resource waste (high efficiency)
High goal attainment (high effectiveness)
Resource
Usage
Efficiency (Means)
Goal
Attainment
Effectiveness (Ends)
Low Waste High Attainment

5. Key reSourceS of MIS
InforMatIon
 Data
Are raw facts that describe a particular phenomenon
e.g Current Temperature, Price of property, Age of a person etc.
A message which source wants to communicate to the receiver
e.g Text, Voice, Image, movies, Music etc
 Information: Data that is organized, meaningful, and
useful
 data with context
 processed data
 value-added to data
 summarized
 organized
 analyzed

6. data and InforMatIondata and InforMatIon

7. changIng data Into InforMatIon
• data
– Raw facts stored in databases
– Need additional processing to become useful
• InforMatIon
– Required by decision maker
– Data processed and presented in a meaningful form
– Transformation (any process that changes data into information).
Program
instructions

8. data collected WIthIn an
organISatIon
Data collected Where from? Used for?
Order details, customer
details complaints
customers
Financial data bank
Cost of goods, new
products
suppliers
Sales data Sales Dept

9. data collected WIthIn an organISatIon
Data collected Where from? Used for?
Order details, customer
details complaints
customers Supplying goods, creating
invoices and statements
Improved performance
Financial data bank Planning strategic decisions
Cost of goods, new
products
suppliers Selling to customers
Sales data Sales Dept Monitor sales against
forecasts, re-order of stock

10. characterIStIcS of valuable
InforMatIon
1. Accuracy.
2. Verifiable.
3. Timeliness.
4. Organized.
5. Meaningful.
6. Cost effective.

11. 1.accuracy
• The information a user receives
has been processed correctly
• Correct information
• Free from errors
• Inaccurate information can lead to
incorrect decisions

12. 2. verIfIable
User can confirm and verify
the information.
Identify source of information

13. Having information when users
need it.
Right information must be produced
to users at right time.
3.tIMely InforMatIon

14. 4. organIzed
 Information is arranged to
suit the needs and
requirements of the users.

15. 5. MeanIngful
 Relevant to the user who
receives or uses it.
 Unnecessary information must
be eliminated.

16. 6.coSt-effectIve
 The cost to produce the information
should be less than the actual cost
of the information.

17. What IS a SySteM?
 A system is…
 A set of interrelated components
 With a clearly defined boundary
 Working together
 To achieve a common set of objectives
 By accepting inputs and producing
outputs
 In an organized transformation process

18. baSIc functIonS of a
SySteM
 Input:
 Capturing and assembling elements that enter the system to be
processed
 Processing:
 Transformation process that converts input into output
 Output:
 Transferring transformed elements to their ultimate destination

19. It and IS
• What is Information Technology?
Any form of technology used by people to handle
information.
• What are Information Systems?
“A collection of hardware, software, data, people, and
procedures that are designed to generate
information that support day-to-day activities of
users in an organization”

20.  The branch of Engineering that deals with the use of
Computers and Telecommunications to retrieve, store
and transmit information
 Any computer based tool that people use to work with
information & support the information & information
processing needs of an organization
InforMatIon technology (It)

21. defInItIon of InforMatIon
SySteMS
“A collection of hardware, software, data,
people, and procedures that are
designed to generate information that
support day-to-day activities of users in
an organization”

22. coMponentS of InforMatIon
SySteMS
• Data
• Software
• Hardware
• People
• Procedures

23. InforMatIon SySteM
actIvItIeS
 Input of data resources
 Data entry activities
 Processing of data into information
 Calculations, comparisons, sorting, and so on
 Output of information products
 Messages, reports, forms, graphic images
 Storage of data resources
 Data elements and databases
 Control of system performance
 Monitoring and evaluating feedback

24. typeS of InforMatIon SySteMS
 operatIonS Support SySteMS:
 TPS( Sales, Inventory, and accounting systems)
 PCS( Monitor and control industrial processes ( Petroleum refining,
power generation and steel production systems.
 Enterprise collaboration systems, such as e-mail, chat and
videoconferencing systems.
 ManageMent Support SySteMS:
 MIS( Provide information as reports and displays)
 DSS(such as products pricing, profitability forecasting, and risk
analysis.
 EIS( Provides critical information from MIS, DSS such as system for
easy access to analysis of business performance, action of competitors,
and strategic planning

25. typeS of operatIonS Support
SySteMS
 Transaction Processing Systems
 Record and process business transactions
 Examples: sales processing, inventory systems,
accounting systems
 Process Control Systems
 Monitor and control physical processes
 Example: using sensors to monitor chemical processes
in a petroleum refinery
 Enterprise Collaboration Systems
 Enhance team and workgroup communication
 Examples: email, video conferencing

26. tranSactIon proceSSIng SySteMS
 TPS is the important examples of Operations
support systems that record and process data
resulting from business transactions.
 Computerized systems that perform and record
the daily routine transactions necessary to
conduct the business; they serve the
organization’s operational level
 Examples
 Accounting information systems
 TCS, DHL, all have systems that are TPS

27. tWo WayS to proceSS
tranSactIonS
 Batch Processing:
 Accumulate transactions over time and process
periodically
 Example: a bank processes all checks received in a
batch at night
 Online Processing:
 Process transactions immediately
 Example: a bank processes an ATM withdrawal
immediately

28. exaMple of tpS
1. An inventory control system keeps a file of records about the
stock of goods that a business has on hand (the inventory)
which is one aspect of the state of the business.
2. When items are shipped or received, the state of the business
is affected, and the inventory control system makes
changes about the inventory in the stored records.

29.  4. It also prints a report giving the quantity
on hand for each item in inventory, which is a
characteristic of the state of the business.
 Finally, when inventory is low, the system
produces output that causes more inventory
to be ordered, which is another type of
business transaction.
exaMple of tpS

30. typeS of tpS SySteMS

31. tranSactIon proceSSIng
SySteM functIonS
Input function
• Capture input data
• Enter input data
• Validate input data
Processing function:
• perform computation
• make decision
Output function:
• produce screen output
• print output
Storage function:
• stored data
• Access data
• Update data

32.  Transaction processing systems perform input, output,
storage, and processing functions.
 Input functions include capturing data on a source
document, entering the input data into the system, and
checking input data for errors, a process called data
validation
 Output functions include producing screen or paper reports,
such as detail reports, summary reports, and exception
reports.
tranSactIon proceSSIng SySteM

33.  Storage functions include storing data in files and
databases, accessing stored data, sorting stored data,
and updating stored data.
 Processing functions involve the manipulation of
data, including computation and decision making
tranSactIon proceSSIng SySteM

34. tranSactIon proceSSIng SySteMS

35. ManageMent InforMatIon
SySteMS
• MIS provides information in the form of reports
and displays to managers and many business
professionals. Such as sales analysis, production
performance.
• Provides information to business professionals in
a variety of easy-to-use formats.
• Examples
– Systems that provide managers with reports and online
real-time access to company performance and historical
records.

36. ManageMent InforMatIon SySteM
(MIS)

37. decISIon Support SySteMS
 Decision Support Systems are concerned with providing
useful information to support the decision process.
 A Production Manager may use a DSS to decides how
much product to manufacture based on the expected sales
associated with a future promotion and the location and
availability of the raw materials necessary to manufacture
the product.
• Examples
– May take data from both internal sources (TPS, MIS) but also from external
sources (Stock prices or product prices of competitors)
– Shipping companies use voyage-estimating systems that take various shipping
information into account and give advice on costs, freight rates for various types
of cargo and port expenses etc

38. Voyage-estimating Decision Support
System
 Needs voyage-estimating system to calculate
 financial details
 Ship/time costs (fuel, labour, capital)
 Freight rates for various types of cargo
 Port expenses
 technical details
 Ship cargo capacity
 Speed
 Port distances
 Fuel and water consumption
 Cargo loading patterns

39. decISIon Support SySteMS

40. decISIon Support SySteM
(dSS)

41. executIve InforMatIon SySteMS
• Information Systems at the organizations
strategic level designed to address unstructured
decision making through advanced graphics and
communications.
• Examples:
– Incorporate data about external events such as tax laws or competitors, but also
draw summarized information from internal MIS and DSS.
– Filter, compress and track critical data, emphasizing the reduction of time and
effort required to obtain information useful to executives.

42. executIve Support SySteM (eSS)

43. What is a human resources information system
(HRIS)?
 Manages human resources functions
 Employee relationship management (ERM) system
facilitates communication with employees

44. Human Resource Systems

45. 2-47
 A strategic information system is
any information system that uses IT to
help an organization…
StrategIc It

46. 2-48
 Cost Leadership
 Become low-cost producers
 Help suppliers or customers reduce costs
 Differentiation Strategy
 Differentiate a firm’s products from its competitors’
 Focus on a particular segment or niche of market
fIve coMpetItIve StrategIeS

47. 2-49
 Innovation Strategy
 Unique products, services, or markets
 Radical changes to business processes
 Growth Strategy
 Expand company’s capacity to produce
 Expand into global markets
coMpetItIve StrategIeS

48. 2-50
 Alliance Strategy
 Establish linkages and alliances with customers, suppliers, competitors,
consultants, and other companies
coMpetItIve StrategIeS

49. hoW IS a coMputer defIned?
Produces and stores results
 Electronic device operating under the control of
instructions stored in its own memory
Processes data into informationinformation
Data that is organized,
meaningful, and useful
Accepts datadata
Raw facts, figures, and
symbols

50. What IS hardWare
 Hardware is the general term that
is used to describe physical
artifacts of technology.

51. What IS an Input devIce?
 Hardware used
to enter data
and instructions

52. Input devIceS

53. Input devIceS

54. What IS an output devIce?
 Hardware that
conveys
information
to one or more
people

55. What IS Storage?
Storage mediaStorage media
Physical material on which data, instructions,
and information are stored
Storage mediaStorage media
Physical material on which data, instructions,
and information are stored
Storage deviceStorage device
Records and retrieves items to and from
a storage medium
Storage deviceStorage device
Records and retrieves items to and from
a storage medium
 Holds data, instructions, and information
for future use

56. coMputer for IndIvIdual uSerS
 Desktop computers
 The most common type of computer
 Sits on the desk or floor
 Performs a variety of tasks
 Workstations
 Specialized computers
 Optimized for science or graphics
 More powerful than a desktop

57. Mainframe Very powerful,
expensive computer that supports
thousands of connected users
[Also called an Enterprise Server]
Supercomputer The fastest, most
powerful, most expensive
computer. Used for applications
requiring complex mathematical
calculations
Server Controls access to network
resources and provides centralized
storage

58. What is a notebook computer?
 Portable, small enough
to fit on your lap
 Also called a laptop
computer
 Generally more
expensive than desktop
computers with equal
capabilities

59. What is a Tablet PC?
 Especially useful for taking
notes
 Resembles a letter-sized slate
 Allows you to write on the
screen using a digital pen

60. Consists of a series
of instructions that
tells the computer
what to do and
how to do it
Consists of a series
of instructions that
tells the computer
what to do and
how to do it
What IS SoftWare?
Also called a
program
Also called a
program

61. coMputer SoftWare
 Definition:
 Key to productive use of computers.
 A computer program that tells the computer how to
perform particular tasks.
 Information that the computer uses to get the job done.
 Types of Software
 Software can be categorized into two types:
 System Software
 Application Software.

62. What IS SySteM SoftWare?
Operating System (OS)Operating System (OS)
is a set of programs
that coordinates all
activities among
computer hardware
devices
Operating System (OS)Operating System (OS)
is a set of programs
that coordinates all
activities among
computer hardware
devices
Utility ProgramsUtility Programs allow the user to
perform maintenance-type tasks
usually related to managing a
computer, its devices or its programs
Utility ProgramsUtility Programs allow the user to
perform maintenance-type tasks
usually related to managing a
computer, its devices or its programs
 Programs that control or maintain the operations of
the computer and its devices

63. What IS applIcatIon SoftWare?
Presentation
Graphics
Spreadsheet
Database
Word
Processing
 Programs designed to make
users more productive
 Create/Produce useful data

64. Word proceSSIng
 Word Processing software is used to create and print documents. A key
advantage of word processing software is that users easily can make
changes in documents.

65. electronIc SpreadSheetS
 Electronic spreadsheet software allows the user to add, subtract, and
perform user-defined calculations on rows and columns of numbers. These
numbers can be changed and the spreadsheet quickly recalculates the new
results.

66. databaSe SoftWaredatabaSe SoftWare
 Allows the user to enter, retrieve, and update data in an organized and efficient
manner, with flexible inquiry and reporting capabilities.

67. coMputer SoftWare
What is a programmer?
 Someone who develops
application or system
software
 Programmer writes
the instructions to
direct the computer to
process data into
information

68. What IS a graphIcal uSer Interface
(guI)?
 Allows you to interact with the software using
graphics and visual images such as icons
 Controls how you enter data and instructions and
how the screen displays information

69. 3-71
bIt and byte
 Bit
 Short for binary digit
 Smallest element of data
 Either zero or one
 Byte
 Group of eight bits, which operate as a single
unit
 Represents one character or number

70. 3-72
repreSentIng characterS In byteS

71. 3-73
uSIng bInary code to calculate

72. 3-74
Storage capacIty MeaSureMent
 Kilobyte (KB): one thousand bytes
 Megabyte (MB): one million bytes
 Gigabyte (GB): one billions bytes
 Terabyte (TB): one trillion bytes
 Petabyte (PB): one quadrillion bytes

73. coMMon nuMber SySteMS
System Base Symbols
Used by
humans?
Used in
computers?
Decimal 10 0, 1, … 9 Yes No
Binary 2 0, 1 No Yes
Octal 8 0, 1, … 7 No No
Hexa-
decimal
16 0, 1, … 9,
A, B, … F
No No
75

74. Quantities/Counting (1 of 3)
Decimal Binary Octal
Hexa-
decimal
0 0 0 0
1 1 1 1
2 10 2 2
3 11 3 3
4 100 4 4
5 101 5 5
6 110 6 6
7 111 7 7
76

75. Quantities/Counting (2 of 3)
Decimal Binary Octal
Hexa-
decimal
8 1000 10 8
9 1001 11 9
10 1010 12 A
11 1011 13 B
12 1100 14 C
13 1101 15 D
14 1110 16 E
15 1111 17 F
77

76. Quantities/Counting (3
of 3)
Decimal Binary Octal
Hexa-
decimal
16 10000 20 10
17 10001 21 11
18 10010 22 12
19 10011 23 13
20 10100 24 14
21 10101 25 15
22 10110 26 16
23 10111 27 17 Etc.
78

77. Quick
Example
2510 = 110012 = 318 = 1916
Base
79

78. Decimal to Decimal (just
for fun)
Hexadecimal
Decimal Octal
Binary
80

79. 12510 => 5 x 100
= 5
2 x 101
= 20
1 x 102
= 100
125
Base
Weight
81
Decimal to Decimal (just for fun)
Weight “0”

80. Binary to
Decimal
Hexadecimal
Decimal Octal
Binary
82

81. Binary to
Decimal
 Technique
 Multiply each bit by 2
n
, where n is the “weight” of the bit
 The weight is the position of the bit, starting from 0 on the right
 Add the results
83

82. Examp
le
1010112 => 1 x 20
= 1
1 x 21
= 2
0 x 22
= 0
1 x 23
= 8
0 x 24
= 0
1 x 25
= 32
4310
Bit “0”
84

83. Octal to
Decimal
Hexadecimal
Decimal Octal
Binary
85

84. Octal to
Decimal
 Technique
 Multiply each bit by 8
n
, where n is the “weight” of the bit
 The weight is the position of the bit, starting from 0 on the right
 Add the results
86

85. Examp
le
7248 => 4 x 80
= 4
2 x 81
= 16
7 x 82
= 448
46810
87

86. Hexadecimal to
Decimal
Hexadecimal
Decimal Octal
Binary
88

87. Hexadecimal to
Decimal
 Technique
 Multiply each bit by 16
n
, where n is the “weight” of the bit
 The weight is the position of the bit, starting from 0 on the right
 Add the results
89

88. Examp
le
ABC16 => C x 160
= 12 x 1 = 12
B x 161
= 11 x 16 = 176
A x 162
= 10 x 256 = 2560
274810
90

89. Decimal to
Binary
Hexadecimal
Decimal Octal
Binary
91

90. Decimal to
Binary
 Technique
 Divide by two, keep track of the remainder
 First remainder is bit 0 (LSB, least-significant bit)
 Second remainder is bit 1
 Etc.
92

91. Examp
le
12510 = ?2
2 125
62 12
31 02
15 12
7 12
3 12
1 12
0 1
12510 = 11111012
93

92. Decimal to
Octal
Hexadecimal
Decimal Octal
Binary
94

93. Decimal to
Octal
 Technique
 Divide by 8
 Keep track of the remainder
95

94. Examp
le
123410 = ?8
8 1234
154 28
19 28
2 38
0 2
123410 = 23228
96

95. Decimal to
Hexadecimal
Hexadecimal
Decimal Octal
Binary
97

96. Decimal to
Hexadecimal
 Technique
 Divide by 16
 Keep track of the remainder
98

97. Examp
le
123410 = ?16
123410 = 4D216
16 1234
77 216
4 13 = D16
0 4
99

98. Octal to
Binary
Hexadecimal
Decimal Octal
Binary
100

99. Octal to
Binary
 Technique
 Convert each octal digit to a 3-bit equivalent binary representation
101

100. Examp
le
7058 = ?2
7 0 5
111 000 101
7058 = 1110001012
102

101. Hexadecimal to
Binary
Hexadecimal
Decimal Octal
Binary
103

102. Hexadecimal to
Binary
 Technique
 Convert each hexadecimal digit to a 4-bit equivalent binary representation
104

103. Examp
le
10AF16 = ?2
1 0 A F
0001 0000 1010 1111
10AF16 = 00010000101011112
105

104. Binary to
Octal
Hexadecimal
Decimal Octal
Binary
106

105. Binary to
Octal
 Technique
 Group bits in threes, starting on right
 Convert to octal digits
107

106. Examp
le
10110101112 = ?8
1 011 010 111
1 3 2 7
10110101112 = 13278
108

107. Binary to
Hexadecimal
Hexadecimal
Decimal Octal
Binary
109

108. Binary to
Hexadecimal
 Technique
 Group bits in fours, starting on right
 Convert to hexadecimal digits
110

109. Examp
le
10101110112 = ?16
10 1011 1011
2 B B
10101110112 = 2BB16
111

110. Octal to
Hexadecimal
Hexadecimal
Decimal Octal
Binary
112

111. Octal to
Hexadecimal
 Technique
 Use binary as an intermediary
113

112. Examp
le
10768 = ?16
1 0 7 6
001 000 111 110
2 3 E
10768 = 23E16
114

113. Hexadecimal to
Octal
Hexadecimal
Decimal Octal
Binary
115

114. Hexadecimal to
Octal
 Technique
 Use binary as an intermediary
116

115. Examp
le
1F0C16 = ?8
1 F 0 C
0001 1111 0000 1100
1 7 4 1 4
1F0C16 = 174148
117

116. Exercise –
Convert ...
Don’t use a calculator!
Decimal Binary Octal
Hexa-
decimal
33
1110101
703
1AF
118

117. Exercise –
Convert …
Decimal Binary Octal
Hexa-
decimal
33 100001 41 21
117 1110101 165 75
451 111000011 703 1C3
431 110101111 657 1AF
Answer
119

118. WEB BROWSERS

119. WORD PROCESSING & DESKTOP
PUBLISHING

120. ELECTRONIC SPREADSHEETS &
PRESENTATION GRAPHICS
Electronic Spreadsheets
 Worksheet of rows and columns
 Used for calculations and charts
 E.g., Lotus 1-2-3, Microsoft Excel, Corel QuattroPro, BO XI
Presentation Graphics
 Convert numeric data into graphics displays
 Prepare multimedia presentations including graphics, photos, animation, and video clips
 E.g., Microsoft PowerPoint, Lotus Freelance, Corel Presentations

121. ELECTRONIC SPREADSHEETS &
PRESENTATION GRAPHICS

122. PERSONAL INFORMATION MANAGER &
GROUPWARE
Personal Information Manager (PIM)
 Software for end user productivity and collaboration
 Store information about clients, schedules, manage
appointments, manage tasks
 E.g., Lotus Organizer, Microsoft Outlook
Groupware
 Software that helps workgroups collaborate on group
assignments
 E-mail, discussion groups, databases, videoconferencing
 E.g., Lotus Notes, Novell GroupWise, Microsoft
Exchange

123. PERSONAL INFORMATION MANAGER &
GROUPWARE

124. SOFTWARE ALTERNATIVES
 Outsourcing development and maintenance of
software
 Application service providers (ASPs)
 Companies that own, operate and maintain
application software and computer system
resources
 Use the application for a fee over the Internet
 Pay-as-you-go

125. SOFTWARE ALTERNATIVES

126. SOFTWARE LICENSING
 All software (COTS, ASP) is licensed
 You don’t buy software: you buy a license to use
the software under the terms of the licensing
agreement
 Licensed to protect the vendor’s property rights

127. SYSTEM SOFWARE
Software that manages and supports a computer
system
System management programs
 Programs that manage hardware, software, network, and data resources
 E.g., operating systems, network management programs, database management systems,
systems utilities
Systems development programs
 Programs that help users develop information system programs

128. SYSTEM MANAGEMENT
PROGRAMS

129. OPERATING SYSTEM
 Integrated system of programs that
 Manages the operations of the CPU
 Controls the input/output and storage resources and activities of the computer system
 Provides support services as computer executes applications programs

130. OS BASIC FUNCTIONS

131. USER INTERFACE
 Part of the operating system that allows you to
communicate with it
 Three main types:
 Command-driven
 Menu-driven
 Graphical user interfaces (GUI)

132. USER INTERFACE

133. RESOURCE MANAGEMENT
 Part of operating system that manages the hardware
and networking resources of a computer system
 Includes CPU, memory, secondary storage device, telecommunications, and input/output
peripherals

134. FILE MANAAGEMENT
 Part of the operating system that controls the
creation, deletion, and access of files of data and
programs

135. FILE MANAGEMENT

136. TASK MANAGEMENT
 Part of the operating system that manages the
accomplishment of computing tasks of the end
users
 Multitasking
 Task management approach that allows for several tasks to be performed in a seemingly
simultaneous fashion
 Also called multiprogramming or time-sharing

137. TASK MANAGEMENT

138. POPULAR OS
 Windows
 GUI, multitasking, networking, multimedia
 Microsoft’s operating system
 Different versions manage servers
 Unix
 Multitasking, multiuser, network-managing
 Portable – can run on mainframes, midrange and PCs
 Linux
 Low-cost, powerful reliable Unix-like operating system
 Open-source
 MAC OS X
 Apple operating system for the iMac
 GUI, multitasking, multimedia

139. OTHER SYSTEM SOFTWARE
Utilities
 Miscellaneous housekeeping functions
 Example, Norton utilities includes data backup, virus protection, data compression, etc.
Performance monitors
 Programs that monitor and adjust computer system to keep them running efficiently
Security monitors
 Programs that monitor and control use of computer systems to prevent unauthorized use of
resources

140. WEB LANGUAGES
 HTML
 A page description language that creates hypertext documents for the Web
 XML
 Describes the contents of Web pages by applying identifying tags or contextual
labels to the data in Web documents
 Java
 Object-oriented programming language that is simple, secure and platform
independent
 Java applets can be executed on any computer

141. WEB LANGUAGES

142. Data ResouRce ManageMent

143. Foundation Data Concepts
Data Organization Structure is logically organized into:-Data Organization Structure is logically organized into:-
 Character
 Field
 Record
 File
 Database
Like writing can be organized into letters, word, paragraph &
sentences

144. CHARACTER
 Consists of a single alphabets, numeric or other
symbol.
 It is a byte used to represent a particular character.

145. field
 Consists of a grouping of related characters.
 E.g., person names represent the name field. i.e., last name, first name, state, city, telephone
#

146. RECORD
 Fields when grouped together make a record.
 An allocation of attributes to describe any entity.
 E.g.,
 Person payroll records
 Employee claims record
 Student academic records

147. FILE
 Group of related records is a data file or table.
 A single table may be referred to as a flat file.
 E.g.,
 Employee file
 Student file
 Inventory file
 Payroll file etc

148. DATABASE
 An integrated collection of logically related data
elements.
 It contains all the records

149. Foundation Data Concepts
Employee
Record 1
Employee
Record 2
Employee
Record 3
Employee
Record 4
Name
Field
SS No.
Field
Salary
Field
Name
Field
SS No.
Field
Salary
Field
Name
Field
SS No.
Field
Salary
Field
Name
Field
SS No.
Field
Salary
Field
Jones T.A. 275-32-3874 20,000 Klugman J.L. 349-88-7913 28,000 Alverez, J.S. 542-40-3718 100,000 Porter, M.L. 617-87-7915 50,000
Human Resource
Database
Payroll File Benefit File
Data Organization StructureData Organization Structure

150. Foundation Data Concepts
Electric Utility Database
Entities:
Customers, Meters, Bills,
Payments, Meter Readings
Relationships:
Bills Sent to Customers
Customers Make Payments
Customers Use Meters
Billing
Meter
Reading
Payment
Processing
Service
Start/Stop
Example: An Electric Utility DatabaseExample: An Electric Utility Database

151. DATABASE STRUCTURES
 DBMS packages are designed to use specific data
structures to provide end users with quick; easy
access to information stored in the databases.

152. DATABASE STRUCTURES
 Five Major Database StructuresFive Major Database Structures
•Hierarchical Structure
•Network Structure
•Relational Model
•Object-Oriented
•Multidimensional Structure

153. HIERARCHICAL STRUCTURE
 One-to-many relationship
 Relationship b/w records from a hierarchy structure
all of them are dependent.
 Root element

154. NETWORK STRUCTURE
 Allow many-to-many relationships among records.
 E.g., employee records can be related to more than
one project record & vice versa.

155. RELATIONAL STRUCTURE
 It is used by most microcomputers
DBMS packages as well as by both
midrange & mainframes systems.
 In this, all data elements within the
database are viewed as being stored in
the form of simple two dimensional
tables sometimes referred to as
relations .
Department Table Employee Table
Deptno Dname Dloc Dmgr Empno Ename Etitle Esalary Deptno
Emp 1
Emp 2
Emp 3
Emp 4
Emp 5
Emp 6
Dept A
Dept B
Dept C
Dept A
Dept B
Dept A
Dept B
Dept C
Dept B

157. MULTIDIMENSIONAL
STRUCTURE

158. Object-oriented structure
Attributes
•Customer
•Balance
•Interest
Operations
•Deposit (Amount)
•Withdraw (Amount)
•Get Owner
Attributes
•Credit Line
•Monthly Statements
Operations
•Calculate Interest
•Print Monthly Statement
Attributes
•Number of Withdrawals
•Quarterly Statement
Operations
•Calculate Interest Paid
•Print Quarterly Statement
Bank Account Object
Checking Account Object Savings Account Object
Inheritance Inheritance
Web basedWeb based
applicationsapplications
Describing theDescribing the
attributes of anattributes of an
entity, plus theentity, plus the
operations that canoperations that can
be performs upon thebe performs upon the
datadata
SupportsSupports
inheritanceinheritance

159. Object-oriented structure

160. Database Development
Database management packages like Microsoft Access or Lotus
Approach allow end users to easily develop the database they
need.

161. Database Development
•Database Administrators (DBAs)
•Data Definition Language (DDL)
•Oracle 10g or IBM DB2
•Data Dictionary or Metadata Repository
•Database management catalog or directory that
contain metadata.
•Relies on specialized database software component to
manage a database.
•Metadata
•Data on data

162. Data Mining
 Identify New Product Bundles
 Find Root Causes to Quality or Manufacturing Problems
 Prevent Customer Attrition
 Cross-Sell to Existing Customers
 Profile Customers with More Accuracy

163. Types of Databases
 Operational Databases
 Distributed Databases
 External Databases
 Hypermedia Databases

164. Distributed Database ModelDistributed Database Model
Client PC
Distributed
Databases
on Intranets
and Other
Networks
End User
Databases
Data
Warehouse
Data
Marts
Operational
Databases
of the
Organization
Network
Server
External
Databases
on the
Internet and
Online
Services

165. Operational DatabasesOperational Databases
Types of Databases

166. Web-Based Information SystemWeb-Based Information System
Web
Browser
The Internet
Intranets
Extranets Web
Server
Software
HTML
XML
Web Pages
Image Files
Video Files
Audio Files
Network
Server
Client PCs
Hypermedia
Database
Types of Databases

167. Data Warehouses
Applications Data Marts
Finance
Marketing
Sales
Accounting
Management
Reporting
ERP
Purchasing
CRM
Inveentory
Control
Shipping
Logistics

168. 5-170
Data Warehouse Components

169. 5-171
Applications and Data Marts

170. 5-172
Database Management System
 In mainframe and server computer systems, a
software package that is used to…
 Create new databases and database applications
 Maintain the quality of the data in an organization’s databases
 Use the databases of an organization to provide the information needed by end users

171. 5-173
Common DBMS Software Components
 Database definition
 Language and graphical tools to define entities, relationships, integrity constraints, and
authorization rights
 Nonprocedural access
 Language and graphical tools to access data without complicated coding
 Application development
 Graphical tools to develop menus, data entry forms, and reports

172. 5-174
Common DBMS Software Components
 Procedural language interface
 Language that combines nonprocedural access with full capabilities of a programming
language
 Transaction processing
 Control mechanism prevents interference from simultaneous users and recovers lost data
after
a failure
 Database tuning
 Tools to monitor, improve database performance

173. 5-175
Database Management System
 Database Development
 Defining and organizing the content, relationships, and structure of the data needed
to build a database
 Database Application Development
 Using DBMS to create prototypes of queries, forms, reports, Web pages
 Database Maintenance
 Using transaction processing systems and other tools to add, delete, update, and correct data

174. 5-176
DBMS Major Functions

175. 5-177
Database Interrogation
 End users use a DBMS query feature or report
generator
 Response is video display or printed report
 No programming is required
 Query language
 Immediate response to ad hoc data requests
 Report generator
 Quickly specify a format for information you want to present as a report

176. 5-178
Database Interrogation
 SQL Queries
 Structured, international standard query language found in many DBMS packages
 Query form is SELECT…FROM…WHERE…

177. 5-179
Database Interrogation
 Boolean Logic
 Developed by George Boole in the mid-1800s
 Used to refine searches to specific information
 Has three logical operators: AND, OR, NOT
 Example
 Cats OR felines AND NOT dogs OR Broadway

178. 5-180
Database Interrogation
 Graphical and Natural Queries
 It is difficult to correctly phrase SQL and other database language search queries
 Most DBMS packages offer easier-to-use,
point-and-click methods
 Translates queries into SQL commands
 Natural language query statements are similar
to conversational English

179. 5-181
Graphical Query Wizard

180. 5-182
Database Maintenance
 Accomplished by transaction processing systems
and other applications, with the support of the
DBMS
 Done to reflect new business transactions and other events
 Updating and correcting data, such as customer addresses

181. 5-183
Application Development
 Use DBMS software development tools to develop
custom application programs
 Not necessary to develop detailed data-handling procedures using conventional
programming languages
 Can include data manipulation language (DML) statements that call on the DBMS to
perform necessary data handling

182. Telecommunications
and Networks

183. 6-185
Types of Communications Networks
 Primary types of communications networks
 Wide Area
 Local Area
 Virtual Private
 Client/Server
 Peer-to-peer

184. 6-186
Wide Area Network (WAN)
 Telecommunication network that covers a large
geographic area

185. 6-187
Local Area Network (LAN)
 Connects computers within a limited physical area,
such as an office, classroom, or building

186. 6-188
Virtual Private Networks (VPN)
 Used to establish secure intranets and extranets
 The Internet is the main backbone network
 Relies on network firewalls, encryption, and
other security features to build a “pipe” through the Internet
 Creates a private network without the high
cost of a separate proprietary connection

187. 6-189
Virtual Private Network

188. 6-190
Client/Server Networks
 Clients
 End user personal computers or networked computers
 Servers
 Used to manage the networks
 Processing
 Shared between the clients and servers
 Sometimes called a two-tier architecture
 Larger computer systems are being replaced
with multiple client/server networks

189. 6-191
Client/Server Network

190. 6-192
Network Computing
 Networks are the central computing resource
of the organization
 Thin clients provide a browser-based user interface for processing applets
 Thin clients include
 Network computers
 Net PCs
 Other low-cost network devices or
information appliances

191. 6-193
Network Computing
 Application and database servers provide
 The operating system
 Application software
 Applets
 Databases
 Database management software
 Sometimes called a three-tier client/server
model because it consists of
 Thin clients
 Application servers
 Database servers

192. 6-194
Network Computing

193. 6-195
Peer-to-Peer Networks
 Central Server Architecture
 P2P file-sharing software connects all PCs
to a central server
 When a PC requests a file, the server searches
all active peers on the network
 The server sends the requesting PC a list of
links to all active peers who have the file
 Clicking a link connects the two PCs and automatically transfers the file to the
requesting PC

194. 6-196
Peer-to-Peer Networks
 Pure Peer-to-Peer Architecture
 No central directory or server
 File-sharing software connects one PC to
another online user
 When you request a file, the software searches every online user and sends you a list of
active file names
 Clicking a link automatically transfers the file from that user’s hard drive to yours

195. 6-197
Central Server Peer-to-Peer Networks
 Advantages
 Can better protect the integrity and security
of the content and users of the network
 Disadvantages
 Directory server can be slowed or overwhelmed by too many users or technical problems

196. 6-198
Peer-to-Peer Network Diagrams

197. 6-199
Digital and Analog Signals
 Analog or digital refers to the method used to
convert information into an electrical signal
 Analog: an electrical current is generated that
is proportional to the quantity being observed
 Digital: the quantity being observed is expressed as a number
 Analog: if the temperature is 83 degrees, a measuring device would generate 8.3 volts
 Digital: a measurement of 83 degrees would be displayed as the number 83

198. 6-200
Telecommunications Media
 Twisted-Pair Wire
 Ordinary telephone wire
 Copper wire is twisted
into pairs

199. 6-201
Telecommunications Media
 Coaxial Cable
 Sturdy copper or
aluminum wire wrapped
with spacers to insulate
and protect it

200. 6-202
Telecommunications Media
 Fiber-Optic Cable
 One or more hair-thin
filaments of glass
fiber wrapped in a
protective jacket

201. 6-203
The Problem of “The Last Mile”
 Network providers use fiber optic cable as a
communications backbone
 Houses connected to the backbone are wired
with twisted pair
 Users don’t benefit from the faster, better technology

202. 6-204
Wireless Technologies
 Terrestrial Microwave
 Earthbound microwave systems transmit
high-speed radio signals
 Follows a line-of-sight path between relay systems spaced about 30 miles apart
 Communications Satellites
 Serve as relay stations
 Use microwave radio signals
 Earth stations beam signals to the satellites
 Not suitable for interactive, real-time processing

203. 6-205
Wireless Technologies
 Cellular and PCS Telephone and Pager Systems
 Geographic areas are divided into cells
 Each cell has a low-power transmitter or radio relay antenna
 Computers and other communications processors coordinate and control the transmissions to
and from mobile users

204. 6-206
Wireless Technologies
 Wireless LANS
 Uses wireless radio-wave technology to
connect PCs within an office or a building
 Can be high-frequency, similar to digital
cellular, or low frequency (spread spectrum)
 Bluetooth
 Short-range wireless technology
 Connects PCs to devices, such as a printer
 Fairly low cost to implement

205. 6-207
Wireless Technologies
 Other Wireless Systems
 Cellular phones
 Mobile radio
 PDAs
 Telecommunications networks now play vital and
pervasive roles in
 Web-enabled e-business processes
 Electronic commerce
 Enterprise collaboration
 Other applications that support business operations, management, and strategic objectives

206. 6-208
The Wireless Web
 Wireless Internet access is growing as Web-enabled
information appliances proliferate
 Smart telephones, pagers, PDAs
 All are very thin clients in wireless networks

207. 6-209
Telecommunications Processors
 Modems
 The most common type of communications processor
 Converts a digital signal to an analog frequency that can be transmitted over phone lines,
then back into a digital signal
 Modulation and demodulation

208. 6-210
Comparing Technologies

209. 6-211
Inter-Network Processors
 Switch… makes connections between
telecommunications circuits in a network
 Router… intelligent communications processor
that interconnects networks based on different
protocols
 Hub… a port-switching communications processor
 Gateway… connects networks with different

210. 6-212
Communications Processors

211. 6-213
Communications Processors
 Multiplexer… allows a single communications
channel to carry simultaneous data transmissions
from many terminals
 In time division multiplexing (TDM), the multiplexer divides the time each terminal can use
the high-speed into short time slots
 Multiplexers increase the number of transmissions
possible
 Does not increase the number of physical data channels

212. 6-214
Telecommunications Software
 May reside in PCs, servers, mainframes, and
communications processors
 Vital part of all telecommunications networks
 Used to manage network performance
 WANs often use telecommunications monitors or teleprocessing monitors
 Other networks use operating system software
 Middleware helps diverse networks communicate with each other

213. 6-215
Network Management Functions
 Traffic Management
 Manage network resources and traffic to
avoid congestion and optimize service levels
 Security
 Provide authentication, encryption, firewall, auditing, and enforcement
 Network Monitoring
 Troubleshoot and watch over the network, alerting administrators of potential problems

214. 6-216
Network Management Functions
 Capacity Planning
 Survey network resources, traffic patterns, and users’ needs
 Determine the best way to accommodate the needs of the network as it grows and changes

215. 6-217
Network Topologies
 Topology
 The structure of a network
 Star Network
 Ties end user computers to a central computer
 Ring Network
 Ties local computer processors together in a ring on a relatively equal basis
 Bus Network
 Local processors share the same communications channel

216. 6-218
Network Topologies
 Mesh Network
 Uses direct communications lines to connect some or all of the computers in the ring to
each other
 Switch
 A message-switching computer that handles
data communication between autonomous
local computers

217. 6-219
Network Topologies

218. 6-220
Network Architectures and Protocols
 Protocol
 A standard set of rules and procedures for the control of communications in a network
 Handshaking
 The process of exchanging predetermined
signals and characters
 Establishes a telecommunications session between terminals and computers

219. 6-221
Network Architectures and Protocols
 Network Architecture
 Master plan of standard protocols, hardware, software, and interfaces between end users
and computer systems
 Goal is to promote an open, simple, flexible,
and efficient telecommunications environment

220. 6-222
OSI and TCP/IP Models
 Open Systems Interconnection (OSI) Model
 A seven-layer model that serves as a standard model for network architectures
 Model for how messages should be transmitted between two points in a network
 Each layer adds functions
 Transmission Control Protocol/Internet Protocol
(TCP/IP)
 A five-layer telecommunications protocol used by the Internet

221. 6-223
OSI and TCP/IP Models

222. 6-224
Voice Over IP
 Internet Telephony
 Using an Internet connection to pass voice
data using IP instead of a telephone network
 Often referred to as voice over IP or VoIP
 Works like a regular phone, but skips long-distance charges
 Runs over standard network infrastructure
 Requires a well-configured network to work smoothly

223. 6-225
Bandwidth
 Bandwidth
 The frequency range of a telecommunications channel that determines the maximum
transmission rate
 Speed and capacity typically measured in bits
per second (bps)
 Sometimes call baud rate
 Transmission Rates
 Narrow-band = low speed
 Broadband = high speed

224. 6-226
Transmission Speeds

225. 6-227
Switching Alternatives
 Circuit Switching
 Switch opens a circuit to establish a link
between a sender and a receiver
 It remains open until the communication
session is completed
 Packet Switching
 Breaks messages into groups called packets
 Transmits packets separately

226. 6-228
Network Interoperability
 Ensures that anyone anywhere on one network can
communicate with anyone anywhere on another
network
 From a telecommunications perspective, no
need to speak a common language
 Telecommunications would be possible without
 Complete accessibility
 Transparency
 Seamless interoperability across all networks

227. ElEctronic BusinEss systEms

228. 7-230
Enterprise Business Systems
 E-business means using the Internet, other
networks, and IT to support
 Electronic commerce
 Enterprise communications and collaboration
 Web-enabled business processes
 E-commerce is the buying, selling, and marketing
of products, services, and information over the
Internet and other networks

229. 7-231
Cross-Functional Systems
 Cross the boundaries of traditional business
functions
 Used to reengineer and improve vital business processes all across the enterprise

230. 7-232
Enterprise Application Architecture

231. 7-233
Enterprise Application Architecture
 Provides a conceptual framework
 Helps visualize the basic components, processes, and interfaces of major e-business
applications
 Focuses on accomplishing fundamental
business processes in concert with
 Customers
 Suppliers
 Partners
 Employees

232. 7-234
Enterprise Application Architecture
 Enterprise Resource Planning (ERP)
 Concentrates on the efficiency of internal production, distribution, and financial processes
 Customer Relationship Management (CRM)
 Focuses on acquiring and retaining profitable customers via marketing, sales, and services
 Partner Relationship Management (PRM)
 Aims at acquiring and retaining partners who
can enhance the selling and distribution of products and services

233. 7-235
Enterprise Application Architecture
 Supply Chain Management (SCM)
 Focuses on developing the most efficient and effective sourcing and procurement processes
 Knowledge Management (KM)
 Focuses on facilitating internal group collaboration and decision support

234. 7-236
Enterprise Application Integration
 EAI software connects cross-functional systems
 Serves as middleware to provide
 Data conversion
 Communication between systems
 Access to system interfaces

235. 7-237
Transaction Processing Systems
 Cross-functional information systems that process
data resulting from the occurrence of business
transactions
 Transactions include sales, purchases, deposits, withdrawals, refunds, and payments
 Online transaction processing (OLTP) is a real-time system that captures transactions
immediately

236. 7-238
Transaction Processing Systems

237. 7-239
The Transaction Processing Cycle

238. 7-240
Enterprise Collaboration Systems
(ECS)
 EC systems are cross-functional information
systems that enhance team and workgroup
 Communication
 Coordination
 Collaboration
 Systems may include
 Networked PC workstations
 Servers
 Databases
 Groupware and application packages

239. 7-241
ECS Tools

240. 7-242
Functional Business Systems
 A variety of types of information systems
that support the business functions of
 Accounting
 Finance
 Marketing
 Operations management
 Human resource management

241. 7-243
IT in Business

242. 7-244
Marketing Systems
 Marketing systems are concerned with
 Planning, promotion, and sale of existing products in existing markets
 Development of new products and new markets
 Better attracting and serving present and
potential customers

243. 7-245
Marketing Information Systems

244. 7-246
Interactive Marketing
 Interactive Marketing
 A customer-focused marketing process
 Uses the Internet, intranets, and extranets
 Establishes two-way transactions between a business and its customers or potential
customers
 Goal
 Profitably use networks to attract and keep customers
 Get customers to help create, purchase, and improve products and services

245. 7-247
Targeted Marketing
 An advertising and promotion management concept
with five targeting components

246. 7-248
Targeted Marketing Components
 Community: customized ads to appeal to specific
virtual communities
 Content: ads placed on a variety of selected
websites, aimed at a specific audience
 Context: ads placed on web pages that are relevant
to a product or service
 Demographic/Psychographic: web marketing

247. 7-249
Sales Force Automation
 Outfit sales force with notebook computers,
web browsers, and sales contact software
 Connect them to marketing websites and the company intranet
 Goals
 Increase personal productivity
 Speed up capture and analysis of sales data
 Gain strategic advantage

248. 7-250
Manufacturing Information Systems
 Supports the production/operations functions
 Includes all activities concerned with planning and control of the processes producing goods
or services

249. 7-251
Computer-Integrated Manufacturing

250. 7-252
CIM Objectives
 Simplify production processes, product designs,
and factory organization
 Automate production processes and the
business functions that support them
 Integrate all production and support
processes using
 Networks
 Cross-functional business software

251. 7-253
CIM Systems
 Computer-aided manufacturing (CAM)
 Automate the production process
 Manufacturing execution systems (MES)
 Performance monitoring information systems
for factory floor operations
 Process control
 Control ongoing physical processes
 Machine control
 Controls the actions of machines

252. 7-254
Human Resource Management (HRM)
 Information systems designed to support
 Planning to meet personnel needs
 Development of employees to their full potential
 Control of all personnel policies and programs

253. 7-255
HRM Systems

254. 7-256
HRM and the Internet
 Recruiting employees using the corporate website
and commercial recruiting services
 Posting messages in selected Internet newsgroups
 Communicating with job applicants via e-mail

255. 7-257
HRM and Corporate Intranets
 Corporate intranet uses
 Process common HRM transactions
 Allow around-the-clock HRM services
 Disseminate information faster than through previous company channels
 Collect information from employees online
 Allow HRM tasks to be performed with little HRM department intervention
 Training

256. 7-258
Employee Self-Service
 Intranet applications can allow employees to
 View benefits
 Enter travel and expense reports
 Verify employment and salary information
 Access and update personal information
 Enter time-sensitive data

257. 7-259
Accounting Information Systems
 The oldest and most widely used information
system in business
 Records and reports business transactions and economic events
 Produces financial statements
 Forecasts future conditions

258. 7-260
Accounting Information Systems
 Typically consists of
 Order processing
 Inventory control
 Accounts receivable
 Accounts payable
 Payroll
 General ledger systems

259. 7-261
Accounting Information Systems

260. 7-262
Financial Management Systems
 Supports business managers and professionals
making decisions concerning
 The financing of a business
 The allocation and control of financial
resources within a business

261. 7-263
Financial Management System
Example

262. EntErprisE BusinEss systEms

263. 8-265
What is CRM?
 Managing the full range of the customer
relationship involves
 Providing customer-facing employees with a single, complete view of every customer at
every touch point and across all channels
 Providing the customer with a single, complete view of the company and its extended
channels
 CRM uses IT to create a cross-functional enterprise
system that integrates and automates many of the
customer-serving processes

264. 8-266
Application Clusters in CRM

265. 8-267
Contact and Account Management
 CRM helps sales, marketing, and service
professionals capture and track relevant
data about
 Every past and planned contact with prospects and customers
 Other business and life cycle events of customers
 Data are captured through customer touchpoints
 Telephone, fax, e-mail
 Websites, retail stores, kiosks
 Personal contact

266. 8-268
Sales
 A CRM system provides sales reps with the
tools and data resources they need to
 Support and manage their sales activities
 Optimize cross- and up-selling
 CRM also provides the means to check on a
customer’s account status and history before
scheduling a sales call

267. 8-269
Marketing and Fulfillment
 CRM systems help with direct marketing
campaigns by automatic such tasks as
 Qualifying leads for targeted marketing
 Scheduling and tracking mailings
 Capturing and managing responses
 Analyzing the business value of the campaign
 Fulfilling responses and requests

268. 8-270
Customer Service and Support
 A CRM system gives service reps real-time access
to the same database used by sales
and marketing
 Requests for service are created, assigned,
and managed
 Call center software routes calls to agents
 Help desk software provides service data
and suggestions for solving problems
 Web-based self-service enables customers

269. 8-271
Retention and Loyalty Programs
 It costs 6 times more to sell to a new customer
 An unhappy customer will tell 8-10 others
 Boosting customer retention by 5 percent can boost
profits by 85 percent
 The odds of selling to an existing customer are 50
percent; a new one 15 percent
 About 70 percent of customers will do business

270. 8-272
Retention and Loyalty Programs
 Enhancing and optimizing customer retention
and loyalty is a primary objective of CRM
 Identify, reward, and market to the most loyal
and profitable customers
 Evaluate targeted marketing and relationship programs

271. 8-273
The Three Phases of CRM

272. 8-274
Benefits of CRM
 Benefits of CRM
 Identify and target the best customers
 Real-time customization and personalization
of products and services
 Track when and how a customer contacts
the company
 Provide a consistent customer experience
 Provide superior service and support across
all customer contact points

273. 8-275
CRM Failures
 Business benefits of CRM are not guaranteed
 50 percent of CRM projects did not produce promised results
 20 percent damaged customer relationships
 Reasons for failure
 Lack of understanding and preparation
 Not solving business process problems first
 No participation on part of business stakeholders involved

274. 8-276
Trends in CRM
 Operational CRM
 Supports customer interaction with greater convenience through a variety of channels
 Synchronizes customer interactions consistently across all channels
 Makes the company easier to do business with

275. 8-277
Trends in CRM
 Analytical CRM
 Extracts in-depth customer history, preferences, and profitability from databases
 Allows prediction of customer value
and behavior
 Allows forecast of demand
 Helps tailor information and offers to
customer needs

276. 8-278
Trends in CRM
 Collaborative CRM
 Easy collaboration with customers,
suppliers, and partners
 Improves efficiency and integration
throughout supply chain
 Greater responsiveness to customer needs through outside sourcing of products
and services

277. 8-279
Trends in CRM
 Portal-based CRM
 Provides users with tools and information
that fit their needs
 Empowers employees to respond to
customer demands more quickly
 Helps reps become truly customer-faced
 Provides instant access to all internal and
external customer information

278. 8-280
ERP: The Business Backbone
 ERP is a cross-functional enterprise backbone that
integrates and automates processes within
 Manufacturing
 Logistics
 Distribution
 Accounting
 Finance
 Human resources

279. 8-281
What is ERP?
 Enterprise resource planning is a cross-functional
enterprise system
 An integrated suite of software modules
 Supports basic internal business processes
 Facilitates business, supplier, and customer information flows

280. 8-282
ERP Application Components

281. 8-283
ERP Process and Information Flows

282. 8-284
Benefits and Challenges of ERP
 ERP Business Benefits
 Quality and efficiency
 Decreased costs
 Decision support
 Enterprise agility
 ERP Costs
 Risks and costs are considerable
 Hardware and software are a small part
of total costs
 Failure can cripple or kill a business

283. 8-285
Costs of Implementing a New ERP

284. 8-286
Causes of ERP Failures
 Most common causes of ERP failure
 Under-estimating the complexity of planning, development, training
 Failure to involve affected employees in
planning and development
 Trying to do too much too fast
 Insufficient training
 Insufficient data conversion and testing
 Over-reliance on ERP vendor or consultants

285. 8-287
Trends in ERP

286. 8-288
Supply Chain Management (SCM)
 Fundamentally, supply chain management
helps a company
 Get the right products
 To the right place
 At the right time
 In the proper quantity
 At an acceptable cost

287. 8-289
Goals of SCM
 The goal of SCM is to efficiently
 Forecast demand
 Control inventory
 Enhance relationships with customers, suppliers, distributors, and others
 Receive feedback on the status of every link in the supply chain

288. 8-290
What is a Supply Chain?
 The interrelationships
 With suppliers, customers, distributors, and
other businesses
 Needed to design, build, and sell a product
 Each supply chain process should add value to the
products or services a company produces
 Frequently called a value chain

289. 8-291
Supply Chain Life Cycle

290. 8-292
Electronic Data Interchange
 EDI
 One of the earliest uses of information technology for supply chain management
 The electronic exchange of business transaction documents between supply chain trading
partners
 The almost complete automation of an e-commerce supply chain process
 Many transactions occur over the Internet, using secure virtual private networks

291. 8-293
Typical EDI Activities

292. 8-294
Roles and Activities of SCM in
Business

293. 8-295
Planning & Execution Functions of SCM
 Planning
 Supply chain design
 Collaborative demand and supply planning
 Execution
 Materials management
 Collaborative manufacturing
 Collaborative fulfillment
 Supply chain event management
 Supply chain performance management

294. 8-296
Benefits and Challenges of SCM
 Key Benefits
 Faster, more accurate order processing
 Reductions in inventory levels
 Quicker times to market
 Lower transaction and materials costs
 Strategic relationships with supplier

295. 8-297
Goals and Objectives of SCM

296. 8-298
Benefits and Challenges of SCM
 Key Challenges
 Lack of demand planning knowledge, tools,
and guidelines
 Inaccurate data provided by other information systems
 Lack of collaboration among marketing, production, and inventory management
 SCM tools are immature, incomplete, and
hard to implement

297. 8-299
Trends in SCM

298. ElEctronic commErcE SyStEmS

299. 9-301
The Scope of e-Commerce

300. 9-302
E-Commerce Technologies

301. 9-303
Categories of e-Commerce
 Business-to-Consumer
 Virtual storefronts, multimedia catalogs, interactive order processing, electronic payment,
online customer support
 Business-to-Business
 Electronic business marketplaces, direct links between businesses, auctions and exchanges
 Consumer-to-Consumer
 Online auctions, posting to newspaper sites, personal websites, e-commerce portals

302. 9-304
Essential e-Commerce Architecture

303. 9-305
Access Control and Security
 E-commerce processes must establish mutual trust
and secure access between parties
 User names and passwords
 Encryption key
 Digital certificates and signatures
 Restricted access areas
 Other people’s accounts
 Restricted company data
 Webmaster administration areas

304. 9-306
Profiling and Personalizing
 Profiling gathers data on you and your website
behavior and choices
 User registration
 Cookie files and tracking software
 User feedback
 Profiling is used for
 Personalized (one-to-one) marketing
 Authenticating identity
 Customer relationship management
 Marketing planning

305. 9-307
Search Management
 Search processes help customers find the specific
product or service they want
 E-commerce software packages often include
a website search engine
 A customized search engine may be acquired from companies like Google or Requisite
Technology
 Searches are often on content or by parameters

306. 9-308
Content and Catalog Management
 Content Management Software
 Helps develop, generate, deliver, update, and archive text and multimedia information at
e-commerce websites
 Catalog Management Software
 Helps generate and manage catalog content
 Catalog and content management software works
with profiling tools to personalize content
 Includes product configuration and
mass customization

307. 9-309
Workflow Management
 E-business and e-commerce workflow manage-
ment depends on a workflow software engine
 Contains software model of business processes
 Workflow models express predefined
 Sets of business rules
 Roles of stakeholders
 Authorization requirements
 Routing alternative
 Databases used


308. 9-310
Example of Workflow Management

309. 9-311
Event Notification
 Most e-commerce applications are event driven
 Responds to such things as customer’s first website visit and payments
 Monitors all e-commerce processes
 Records all relevant events, including problem situations
 Notifies all involved stakeholders
 Works in conjunction with user-profiling software

310. 9-312
Collaboration and Trading
 Processes that support vital collaboration
arrangements and trading services
 Needed by customers, suppliers, and other stakeholders
 Online communities of interest
 E-mail, chat, discussion groups
 Enhances customer service
 Builds loyalty

311. 9-313
Electronic Payment Processes
 Complex processes
 Near-anonymous and electronic nature
of transactions
 Many security issues
 Wide variety of debit and credit alternatives
 Financial institutions may be part of the process

312. 9-314
Electronic Payment Processes
 Web Payment Processes
 Shopping cart process
 Credit card payment process
 Debit and other more complex processes
 Electronic Funds Transfer (EFT)
 Major payment system in banking, retail
 Variety of information technologies capture
and process money and credit card transfers
 Most point-of-sale terminals in retail stores
are networked to bank EFT systems

313. 9-315
Electronic Payment Example

314. 9-316
Securing Electronic Payments
 Network sniffers easily recognize credit card
formats
 Encrypt data between customer and merchant
 Encrypt data between customer and financial institution
 Take sensitive information off-line

315. 9-317
E-Commerce Application Trends

316. 9-318
E-Commerce Success Factors
 Some of the success factors in e-commerce
 Selection and value
 Performance and service
 Look and feel
 Advertising and incentives
 Personal attention (one-to-one marketing)
 Community relationships
 Security and reliability

317. 9-319
Differences in Marketing

318. 9-320
Web Store Requirements

319. 9-321
Developing a Web Store
 Build a website
 Choose or set up web hosting
 Use simple design tools and templates
 Include a shopping cart and payment support
 Market the website
 Include Web page and e-mail advertising
and promotions
 Exchange advertising with other Web stores
 Register with search engines and directories
 Sign up for affiliate programs

320. 9-322
Serving Your Customers
 Convert visitors into loyal customers
 Develop one-to-one relationship with customers
 Create incentives to encourage registration
 Use Web cookies to identify visitors
 Use tracking services to record and analyze website behavior and customer preferences
 Create an attractive, friendly, efficient store
 Offer fast order processing and payment
 Notify when orders are processed and shipped
 Provide links to related websites

321. 9-323
Managing a Web Store
 Manage both the business and the website
 Record and analyze traffic, inventory, sales
 Use CRM features to help retain customers
 Link sales, inventory data to accounting systems
 Operate 24 hours a day, seven day a week
 Protect transactions and customer records
 Use security monitors and firewalls
 Use redundant systems and power sources
 Employ passwords and encryption

322. 9-324
B2B E-Commerce
 B2B is the wholesale and supply side of
the commercial process
 Businesses buy, sell, or trade with other businesses
 Relies on multiple electronic information
technologies
 Catalog systems
 Trading systems
 Data interchange
 Electronic funds transfers

323. 9-325
E-Commerce Marketplaces
 One to Many
 Sell-side marketplaces
 One supplier dictates product offerings and prices
 Many to One
 Buy-side marketplaces
 Many suppliers bid for the business of a buyer
 Some to Many
 Distribution marketplaces
 Unites suppliers who combine their product catalogs to attract a larger audience

324. 9-326
E-Commerce Marketplaces
 Many to Some
 Procurement marketplaces
 Unites major buyers who combine purchasing catalogs
 Attracts more competition and thus lower prices
 Many to Many
 Auction marketplaces
 Dynamically optimizes prices

325. 9-327
E-Commerce Portals
 B2B e-commerce portals offer multiple
marketplaces
 Catalogs
 Exchanges
 Auctions
 Often developed and hosted by third-party market-
maker companies
 Infomediaries serve as intermediaries in
e-business and e-commerce transactions

326. 9-328
B2B E-Commerce Web Portal

327. 9-329
Clicks and Bricks
 Success will go to those who can integrate Internet
initiatives with traditional operations
 Merging operations has trade-offs

328. 9-330
E-Commerce Integration
 The business case for merging e-commerce
with traditional business operations
 Move strategic capabilities in traditional operations to the e-commerce business
 Integrate e-commerce into the traditional business
 Sharing of established brands
 Sharing of key business information
 Joint buying power and distribution efficiencies

329. 9-331
Other Clicks and Bricks Strategies
 Partial e-commerce integration
 Joint ventures and strategic partnerships
 Complete separation
 Spin-off of an independent e-commerce company
 Barnes and Noble’s experience
 Spun off independent e-commerce company
 Gained venture capital, entrepreneurial culture, and flexibility
 Attracted quality management
 Accelerated decision making
 Failed to gain market share

330. 9-332
E-Commerce Channel Choices
 An e-commerce channel is the marketing or sales
channel created by a company for its
e-commerce activities
 There is no universal strategy or e-commerce channel choice
 Both e-commerce integration and separation
have major business benefits and shortcoming
 Most businesses are implementing some
measure of clicks and bricks integration

331. 9-333
E-Commerce Strategy Checklist
 Questions to ask and answer
 What audiences are we attempting to reach?
 What action do we want those audiences to take?
 Who owns the e-commerce channel within the organization?
 Is the e-commerce channel planned alongside other channels?
 Is there a process for generating, approving, releasing, and withdrawing content?
 Will our brand translate to the new channel?
 How will we market the channel itself?

332. DEciSion Support SyStEmS

333. 10-335
Levels of Managerial Decision Making

334. 10-336
Decision Structure
 Structured (operational)
 The procedures to follow when decision
is needed can be specified in advance
 Unstructured (strategic)
 It is not possible to specify in advance
most of the decision procedures to follow
 Semi-structured (tactical)
 Decision procedures can be pre-specified,
but not enough to lead to the correct decision

335. 10-337
Decision Support Systems
Management Information
Systems
Decision Support
Systems
Decision
support
provided
Provide information about
the performance of the
organization
Provide information and
techniques to analyze
specific problems
Information
form and
frequency
Periodic, exception,
demand, and push reports
and responses
Interactive inquiries and
responses
Information
format
Prespecified, fixed format Ad hoc, flexible, and
adaptable format
Information
processing
methodology
Information produced by
extraction and manipulation
of business data
Information produced by
analytical modeling of
business data

336. 10-338
Decision Support Trends
 The emerging class of applications focuses on
 Personalized decision support
 Modeling
 Information retrieval
 Data warehousing
 What-if scenarios
 Reporting

337. 10-339
Business Intelligence Applications

338. 10-340
Decision Support Systems
 Decision support systems use the following to
support the making of semi-structured business
decisions
 Analytical models
 Specialized databases
 A decision-maker’s own insights and judgments
 An interactive, computer-based modeling process
 DSS systems are designed to be ad hoc,
quick-response systems that are initiated and
controlled by decision makers

339. 10-341
DSS Components

340. 10-342
DSS Model Base
 Model Base
 A software component that consists of
models used in computational and analytical routines that mathematically express relations
among variables
 Spreadsheet Examples
 Linear programming
 Multiple regression forecasting
 Capital budgeting present value

341. 10-343
Applications of Statistics and
Modeling
 Supply Chain: simulate and optimize supply
chain flows, reduce inventory, reduce stock-outs
 Pricing: identify the price that maximizes
yield or profit
 Product and Service Quality: detect quality problems early in order to minimize them
 Research and Development: improve quality, efficacy, and safety of products and services

342. 10-344
Management Information Systems
 The original type of information system
that supported managerial decision making
 Produces information products that support
many day-to-day decision-making needs
 Produces reports, display, and responses
 Satisfies needs of operational and tactical decision makers who face structured decisions

343. 10-345
Management Reporting Alternatives
 Periodic Scheduled Reports
 Prespecified format on a regular basis
 Exception Reports
 Reports about exceptional conditions
 May be produced regularly or when an
exception occurs
 Demand Reports and Responses
 Information is available on demand
 Push Reporting

344. 10-346
Example of Push Reporting

345. 10-347
Online Analytical Processing
 OLAP
 Enables managers and analysts to examine
and manipulate large amounts of detailed and consolidated data from many perspectives
 Done interactively, in real time, with rapid response to queries

346. 10-348
Online Analytical Operations
 Consolidation
 Aggregation of data
 Example: data about sales offices rolled up
to the district level
 Drill-Down
 Display underlying detail data
 Example: sales figures by individual product
 Slicing and Dicing
 Viewing database from different viewpoints

347. 10-349
OLAP Configuration

348. 10-350
Geographic Information Systems
 GIS
 DSS uses geographic databases to construct
and display maps and other graphic displays
 Supports decisions affecting the geographic distribution of people and other resources
 Often used with Global Positioning Systems (GPS) devices

349. 10-351
Data Visualization Systems
 DVS
 Represents complex data using interactive,
three-dimensional graphical forms
(charts, graphs, maps)
 Helps users interactively sort, subdivide, combine, and organize data while it is in its
graphical form

350. 10-352
DVS Example

351. 10-353
Using Decision Support Systems
 Using a decision support system involves
an interactive analytical modeling process
 Decision makers are not demanding
pre-specified information
 They are exploring possible alternatives
 What-If Analysis
 Observing how changes to selected variables affect other variables

352. 10-354
Using Decision Support Systems
 Sensitivity Analysis
 Observing how repeated changes to a single variable affect other variables
 Goal-seeking Analysis
 Making repeated changes to selected variables until a chosen variable reaches a target value
 Optimization Analysis
 Finding an optimum value for selected variables, given certain constraints

353. 10-355
Data Mining
 Provides decision support through knowledge
discovery
 Analyzes vast stores of historical business data
 Looks for patterns, trends, and correlations
 Goal is to improve business performance
 Types of analysis
 Regression
 Decision tree
 Neural network
 Cluster detection
 Market basket analysis

354. 10-356
Analysis of Customer Demographics

355. 10-357
Market Basket Analysis
 One of the most common uses for data mining
 Determines what products customers purchase together with other products
 Results affect how companies
 Market products
 Place merchandise in the store
 Lay out catalogs and order forms
 Determine what new products to offer
 Customize solicitation phone calls

356. 10-358
Executive Information Systems
 EIS
 Combines many features of MIS and DSS
 Provide top executives with immediate and
easy access to information
 Identify factors that are critical to accomplishing strategic objectives (critical success factors)
 So popular that it has been expanded to managers, analysis, and other knowledge workers

357. 10-359
Features of an EIS
 Information presented in forms tailored to the
preferences of the executives using the system
 Customizable graphical user interfaces
 Exception reports
 Trend analysis
 Drill down capability

358. 10-360
Enterprise Information Portals
 An EIP is a Web-based interface and integration of
MIS, DSS, EIS, and other technologies
 Available to all intranet users and select
extranet users
 Provides access to a variety of internal and external business applications and services
 Typically tailored or personalized to the user
or groups of users
 Often has a digital dashboard
 Also called enterprise knowledge portals

359. 10-361
Dashboard Example

360. 10-362
Enterprise Information Portal
Components

361. 10-363
Enterprise Knowledge Portal

362. 10-364
Artificial Intelligence (AI)
 AI is a field of science and technology based on
 Computer science
 Biology
 Psychology
 Linguistics
 Mathematics
 Engineering
 The goal is to develop computers than can simulate
the ability to think
 And see, hear, walk, talk, and feel as well

363. 10-365
Attributes of Intelligent Behavior
 Some of the attributes of intelligent behavior
 Think and reason
 Use reason to solve problems
 Learn or understand from experience
 Acquire and apply knowledge
 Exhibit creativity and imagination
 Deal with complex or perplexing situations

364. 10-366
Attributes of Intelligent Behavior
 Attributes of intelligent behavior (continued)
 Respond quickly and successfully to new situations
 Recognize the relative importance of
elements in a situation
 Handle ambiguous, incomplete, or
erroneous information

365. 10-367
Domains of Artificial Intelligence

366. 10-368
Cognitive Science
 Applications in the cognitive science of AI
 Expert systems
 Knowledge-based systems
 Adaptive learning systems
 Fuzzy logic systems
 Neural networks
 Genetic algorithm software
 Intelligent agents
 Focuses on how the human brain works
and how humans think and learn

367. 10-369
Robotics
 AI, engineering, and physiology are the basic
disciplines of robotics
 Produces robot machines with computer intelligence and humanlike physical capabilities
 This area include applications designed to
give robots the powers of
 Sight or visual perception
 Touch
 Dexterity
 Locomotion
 Navigation

368. 10-370
Natural Interfaces
 Major thrusts in the area of AI and the development
of natural interfaces
 Natural languages
 Speech recognition
 Virtual reality
 Involves research and development in
 Linguistics
 Psychology
 Computer science
 Other disciplines

369. 10-371
Latest Commercial Applications of AI
 Decision Support
 Helps capture the why as well as the what of engineered design and decision making
 Information Retrieval
 Distills tidal waves of information into simple presentations
 Natural language technology
 Database mining

370. 10-372
Latest Commercial Applications of AI
 Virtual Reality
 X-ray-like vision enabled by enhanced-reality visualization helps surgeons
 Automated animation and haptic interfaces
allow users to interact with virtual objects
 Robotics
 Machine-vision inspections systems
 Cutting-edge robotics systems
 From micro robots and hands and legs, to cognitive and trainable modular vision systems

371. 10-373
Expert Systems
 An Expert System (ES)
 A knowledge-based information system
 Contain knowledge about a specific, complex application area
 Acts as an expert consultant to end users

372. 10-374
Components of an Expert System
 Knowledge Base
 Facts about a specific subject area
 Heuristics that express the reasoning procedures of an expert (rules of thumb)
 Software Resources
 An inference engine processes the knowledge
and recommends a course of action
 User interface programs communicate with
the end user
 Explanation programs explain the reasoning process to the end user

373. 10-375
Components of an Expert System

374. 10-376
Methods of Knowledge Representation
 Case-Based
 Knowledge organized in the form of cases
 Cases are examples of past performance, occurrences, and experiences
 Frame-Based
 Knowledge organized in a hierarchy or
network of frames
 A frame is a collection of knowledge about
an entity, consisting of a complex package
of data values describing its attributes

375. 10-377
Methods of Knowledge Representation
 Object-Based
 Knowledge represented as a network of objects
 An object is a data element that includes both data and the methods or processes that act on
those data
 Rule-Based
 Knowledge represented in the form of rules
and statements of fact
 Rules are statements that typically take the
form of a premise and a conclusion (If, Then)

376. 10-378
Expert System Application Categories
 Decision Management
 Loan portfolio analysis
 Employee performance evaluation
 Insurance underwriting
 Diagnostic/Troubleshooting
 Equipment calibration
 Help desk operations
 Medical diagnosis
 Software debugging

377. 10-379
Expert System Application Categories
 Design/Configuration
 Computer option installation
 Manufacturability studies
 Communications networks
 Selection/Classification
 Material selection
 Delinquent account identification
 Information classification
 Suspect identification
 Process Monitoring/Control

378. 10-380
Expert System Application Categories
 Process Monitoring/Control
 Machine control (including robotics)
 Inventory control
 Production monitoring
 Chemical testing

379. 10-381
Benefits of Expert Systems
 Captures the expertise of an expert or group of
experts in a computer-based information system
 Faster and more consistent than an expert
 Can contain knowledge of multiple experts
 Does not get tired or distracted
 Cannot be overworked or stressed
 Helps preserve and reproduce the knowledge
of human experts

380. 10-382
Limitations of Expert Systems
 The major limitations of expert systems
 Limited focus
 Inability to learn
 Maintenance problems
 Development cost
 Can only solve specific types of problems
in a limited domain of knowledge

381. 10-383
Developing Expert Systems
 Suitability Criteria for Expert Systems
 Domain: the domain or subject area of
the problem is small and well-defined
 Expertise: a body of knowledge, techniques,
and intuition is needed that only a few people possess
 Complexity: solving the problem is a complex task that requires logical inference
processing

382. 10-384
Developing Expert Systems
 Suitability Criteria for Expert Systems
 Structure: the solution process must be able
to cope with ill-structured, uncertain, missing, and conflicting data and a changing problem
situation
 Availability: an expert exists who is articulate, cooperative, and supported by the
management and end users involved in the development process

383. 10-385
Development Tool
 Expert System Shell
 The easiest way to develop an expert system
 A software package consisting of an expert system without its knowledge base
 Has an inference engine and user interface programs

384. 10-386
Knowledge Engineering
 A knowledge engineer
 Works with experts to capture the knowledge (facts and rules of thumb) they possess
 Builds the knowledge base, and if necessary,
the rest of the expert system
 Performs a role similar to that of systems
analysts in conventional information systems development

385. 10-387
Neural Networks
 Computing systems modeled after the brain’s
mesh-like network of interconnected processing
elements (neurons)
 Interconnected processors operate in parallel
and interact with each other
 Allows the network to learn from the data it processes

386. 10-388
Fuzzy Logic
 Fuzzy logic
 Resembles human reasoning
 Allows for approximate values and
inferences and incomplete or ambiguous data
 Uses terms such as “very high” instead of
precise measures
 Used more often in Japan than in the U.S.
 Used in fuzzy process controllers used in
subway trains, elevators, and cars

387. 10-389
Example of Fuzzy Logic Rules and
Query

388. 10-390
Genetic Algorithms
 Genetic algorithm software
 Uses Darwinian, randomizing, and other mathematical functions
 Simulates an evolutionary process, yielding increasingly better solutions to a problem
 Being uses to model a variety of scientific, technical, and business processes
 Especially useful for situations in which thousands of solutions are possible

389. 10-391
Virtual Reality (VR)
 Virtual reality is a computer-simulated reality
 Fast-growing area of artificial intelligence
 Originated from efforts to build natural, realistic, multi-sensory human-computer interfaces
 Relies on multi-sensory input/output devices
 Creates a three-dimensional world through
sight, sound, and touch
 Also called telepresence

390. 10-392
Typical VR Applications
 Current applications of virtual reality
 Computer-aided design
 Medical diagnostics and treatment
 Scientific experimentation
 Flight simulation
 Product demonstrations
 Employee training
 Entertainment

391. 10-393
Intelligent Agents
 A software surrogate for an end user or a
process that fulfills a stated need or activity
 Uses built-in and learned knowledge base
to make decisions and accomplish tasks in
a way that fulfills the intentions of a user
 Also call software robots or bots

392. 10-394
User Interface Agents
 Interface Tutors – observe user computer operations, correct user mistakes, provide
hints/advice on efficient software use
 Presentation Agents – show information in a variety of forms/media based on user
preferences
 Network Navigation Agents – discover paths
to information, provide ways to view it based
on user preferences
 Role-Playing – play what-if games and other roles to help users understand information and
make better decisions

393. 10-395
Information Management Agents
 Search Agents – help users find files and databases, search for information, and suggest and
find new types of information products, media, resources
 Information Brokers – provide commercial services to discover and develop information
resources that fit business or personal needs
 Information Filters – Receive, find, filter, discard, save, forward, and notify users about
products received or desired, including e-mail, voice mail, and other information media