Is-IT Procurement March-2012 NOTES2

M39EKM
INFORMATION SYSTEM/INFORMATION TECHNOLOGY PROCUREMENT

MARCH 2012 LECTURE NOTES
by
Mr. Dominic K. Louis (Lecturer, Faculty of Informatics) Ghana Telecom University College
TELECOMMUNICATIONS AND NETWORKS

Telecommunications is the transmission of data (voice,
text, images, audio, video) over networks by such means as electrical signals carried over telephone lines, radio waves or satellite transmission apparatus.
A network is a set of devices that can directly access
each other by means of a shared directory.

Examples of linked electronic devices are computers,
telephones and web TV.

IS/IT Procurement - March 2012 2
CLASSIFICATION OF NETWORKS
Network Classification
Communication Media
Types of Technology
Types of Ownership
Geographic Scope
Network Topology
IS/IT Procurement - March 2012
COMMUNICATION MEDIA
Information may only be transmitted by voice,
videos, data, e-mail, fax and multimedia means (e.g. Voice + data + text +image).
These may be sub-categorised as:
Twisted pair Coaxial cable Fibre optic Wireless technologies
Communications Media
Twisted-pair wire:
Ordinary telephone wire Copper wire twisted into
pairs
Transmission speeds range
from 2 million bits per second (unshielded) to 100 million bits (shielded)
Source: Phil Degginger/Getty Images.
Coaxial cable:
Sturdy copper or
aluminum wire wrapped with spacers to insulate and protect it

Transmission speeds range
from 200 million bits to over 500 million bits per second
Source: Ryan McVay/Getty Images.
Fiber-optic cable: One or more hair-thin filaments of glass fiber wrapped in a protective jacket
Transmission speeds ranges
from as high as trillions of bits per second. of electricity
Uses light elements instead
Source: CMCD/Getty Images.
Wireless Technologies
Terrestrial microwave Earthbound microwave systems that transmit high-
speed radio signals in a line-of-sight path Between relay systems spaced approximately 30-miles apart
Communications satellites Satellite serves as relay stations for communications
signals Uses microwave radio signals

Wireless Technologies
Cellular and PCS telephone and pager systems
Divide the geographic area into small areas or cells Each cell has transmitter or radio relay antenna to send
message from one cell to another

Wireless LANs
Radio signals within an office or building Connect PCs to networks
Bluetooth
Short-range wireless technology To connect PC to peripherals such as printer
TYPE OF TECHNOLOGY
The dominant technology for a particular
application may be optic, microwave or satellite, either separately or interoperating.
10
TYPE OF OWNERSHIP
Networks may be Public or Private, open or closed. The worlds largest Public network is the Internet,
accessible by telephone lines.

In essence the internet is a network of networks, linking
an ever growing number of networks and users in almost every country in the world.
The internet was created in the 1960s by the US military-
industrial complex to enable government researchers working on military projects to share computer files.
TYPE OF OWNERSHIP contd

The Internet has several uses these include: 1. To send and receive e-mail. 2. To transfer files from one computer to another. 3. To locate information on a global basis for business
research or political, educational or business purposes. 4. To communicate with other computers either one at a time (instant message) or many at once ( chat rooms or discussions groups). etc.
Business value of the Internet
13

The world wide web is not the internet but one system running on the internet. Basically, the internet is the hardware and the web the software.The web provides a graphical user interface and means for the display of graphical images, pictures etc. The usefulness of the word is that every document embodies someone's effort to explain what resources are available and to organise them in a way that facilitates their retrieval.
14

The web also allows users to create their own web
documents which, in turn, can provide links to further documents.The web is the most common ways for business to establish a presence on the internet.
Private networks are those in which the organisation
typically runs its own private data-switching equipments, as well as modems, multipliers and other circuit interface devices.
that operate like an internal internet. Such a system may allow other links in the supply chain to communicate in procurement and vice versa. Intranets
uses Internet technologies (such asWeb browsers and servers,
Intranet is a term applied to an organisation-wide systems
TCP/IP protocols, HTML, etc.) to provide an Internet-like environment within the organization for information sharing, communications, collaboration and support of business processes Protected by security measures Can be accessed by authorized users through the Internet

Extranet is a network link that uses Internet technologies
To connect the Intranet of a business With the Intranets of its customers, suppliers or other business
partners
Extranet is the term used for an internet that has been
extended to include access to or from selected external organisation such as customers or suppliers thus making possible collaborative inter-enterprise sharing of information and communication.
Extranet Uses
18

Organisations may also set up bilateral, point to point
transmission schemes with other enterprises who are regular trading partners.
Alternatively organisations use a third party value added
network for receiving, storing distributing their data.

The user transmits the data which is routed to and
collected in an electronic mailbox provided by the value added network (VAN) service provider and owned by the user.

The right pieces of data are then re-routed automatically
by theVAN services to other electronic mailboxes owned by intended recipients where they are held until the receiving organisation asks for them.
This process provides the opportunity for transmission
and receipt from multiple partners with a single telephone call.
20
GEOGRAPHIC SCOPE
Networks are categorised as LANS,WANS,
and MANS according to the area covered:

LAN (Local Area Network) are privately owned
communication networks linking personal computers and workstations or telephones within a limited geographical area such as a building or a group of buildings within a distance of one or two miles.
Local Area Network (LAN)

Connect computers within a limited physical area such
as an office, classroom, or building
GEOGRAPHIC SCOPE cont.

WANs (Wide Area Network) extended over a large
geographical area such as whole country.The Internet links together hundreds of computerWANs. Most telephone systems are WANs.
23
GEOGRAPHIC SCOPE cont.

MANs (Metropolitan Area Network) are high
speed or telephone networks designed to link two or more LANs within a limited geographical regions as the various departments of a local authority.
24
Virtual Private Networks (VPN)

A secure network that uses the Internet as its
backbone but relies on firewalls, encryption and other security. In other words its a pipe traveling through the Internet
25 IS/IT Procurement - March 2012
NETWORK TOPOLOGY
In this context, topology relates to the inter
connection or organisation of computers in a network. It may also be defined as the physical configuration of the various nodes and the manner in which they are linked. A node is a point to which a group of devices such as microcomputers or terminals and transmission lines connect.
NETWORK TOPOLOGY contd

Most LAN topologies currently in use are bus, star
or token ring.
A star network means that the arrangement of the
LAN resembles a star.

A star LAN has a central server ( a server is a central
computer that holds databases and programs for many pc work stations or terminals which are called clients).
28
NETWORK TOPOLOGY cont.

The disadvantage of a star topology is that if
the hub fails then all the computers on that hub fail.
If however, a line from the hub to the
computer is broken then only that computer is down.

If one computer fails the rest of the network
stays up.

A bus topology means that the arrangement
resembles the seating on a bus.

Each seat on the bus is a computer and the
computers communicate through the passage down the centre in the bus as shown on slide 63.
The disadvantage is that cable breaks can disable the
whole network.

A ring topology means that the computers are
arranged in a ring as shown on slide 63. With this there is no central server computers communicate by passing an electronic token or signal from computer to computer until the information reaches the destination computer that matches the address on the data. Again a break on the ring can disable the entire network.

Other forms of networks include mesh and hybrid topologies. A mesh network is one in which every device on the network
is connected to every other device.

Such networks are not much used on LANs but are utilised
forWANs were reliability is important.

Hybrid networks are combination of bus, ring and star
topologies.
Because each topology has its own strengths and weaknesses
several types can be connected for maximum effectiveness.

E-Procurement or Online Procurement

Involve using the Internet and related technologies
to change the role of the purchasing department from a transaction-oriented function to a more managerial function focused on establishing and maintaining relationships
Growth rate of e-procurement revised downwards
due partly to the dot.com bubble.

Electronic Data Interchange (EDI)

A technology that ensures a direct secure link
between organisations computer systems for the convenience of sharing information, and sending/receiving documents.
The key operational function is that EDI comprises
an exchange between organisations and companies without paperwork.

How EDI Works

The sequence is as follows: a) Company A sets up a procurement order using its internal business software (i.e. EDI).
b)
The EDI software translates the order from the internal format to the ISO standard 850 Procurement Order document format.
How EDI Workscont.

c)
Company A sends 850 Procurement Order documents to company B over a third party value added network or encrypted in EDIFACT format over the Internet. Company B receives the 850 Procurement Order document and translates it from EDI to its proprietary format. (Typically Company B will send an acknowledgement to Company A).
d)
Advantages of EDI
1) EDI effectively puts the product back on the shelf
with no paperwork and a minimum of human involvement.

The replacement of the paper documents e.g.
procurement orders, acknowledgements, invoices, etc.
used by buyers and sellers in commercial transactions, by standard electronic computers often without the need for human intervention.
Advantages of EDIcont.
One of the best examples in the way an EDI works is the EPOS at some supermarkets.
When a product is procured, the checkout operator scans
the bar code on its label which automatically registers the price on the cash till. That same signal also triggers a computer process which: reorders the items from the manufactures, sets off a production cycle, arranges invoicing, payment and transportation of the new order.
2)
EDI promotes a reduction in lead times through buyers and suppliers working together in a real-time environment.
For instance, Armstrong and Jackson provides a
real-life example of pre and post-EDI lead times in which the latter shows reduction of 8 days to acknowledge the order and 5 days to deliver it.
Day 1: Order prepared and authorised electronically posted into EDI service. Day 2: Order taken from EDI service by recipient and put straight into order system, acknowledgement created automatically and sent to EDI service. Day 3: Manufacturing process begins (7 DAYS), acknowledgement received by originator and processed automatically. Day 9: Manufacturing complete. Day 11: Delivery complete.
3) 4)
Reduction in cost of inventory and release of working capital. Promotion of such strategies as Just-in-Time (JIT) as a consequence of points 2 and 3 above. Better customer service.
5)
41
6)
Facilitation of global purchasing through international standards, e.g. EDIFACT which is compatible with most equipment in most countries.
For example, in 1970 SITPRO (Simplification of International Trade Procedures) board was established to guide, stimulate and assist the rationalisation of international trade procedures and the documentation and information flows associated with them. SITPRO worked with the British Standards Institution (BSI) in connection 42 with EDI standards.
7) Facilitation of invoice payments by the computer-
to-computer transfer of money which eliminates the need for the preparation and posting of cheques.
8) Promote the integration of functions, particularly
marketing, procurement, production and finance.

9) EDI tends to promote long- term buyer- supplier
relationships and increase mutual trust.

Potential Problems in Implementing EDI

Killen & Kamauff (1995) point out that before adopting EDI an organisation should:
Ensure that exchanging information electronically supports
the over all organisational strategy.

Consider the cost and ramifications of EDI standard tools
and techniques of implementation, software maintenance, manpower and participant training and how to promote systems and applications integration.
Consider the organizational and process changes involved.
Potential Problems in Implementing EDI. cont.

Desmarais Norman (1999) states that the more
data is being processed and reprocessed the more there is to save time and money.
Potential EDI users should therefore calculate
the cost per transaction. If it is cheaper to fax or manually perform the task the buyer probably lacks the volume to invest in EDI.
Indicators of a reasonable opportunity for the application of EDI

Monczka & Carter (1988) propose the following
indicators of a reasonable opportunity for the application of EDI in the procurement environment:
A high volume of paperwork transaction documents. Numerous suppliers. A long internal administration lead time associated with the
procurement cycle. A desire for personnel reductions, new hire avoidance, or both. A need to increase the professionalism of procurement personnel.
LIMITATIONS of EDI
Historically the two principal limitations of EDI relate to cost and inflexibility. Cost EDI was, and still is, an expensive option given
that, until recently, organisations sent all EDI transactions over aVAN that had high set-up and running costs often on the basis of per thousand characters transmitted.
The scope of EDI was also internationally limited to ensure
controlled activity within a closed-door environment.The heavy overhead associated with EDI infrastructure was prohibitive for many small and medium sized enterprises.
LIMITATIONS of EDI..cont.
Internet and Extranet approaches can enable small businesses to
link into secure EDI networks at minimal cost.The Internet pricing model of flat monthly rates have forced most of the VAN networks to lower their pricing structures. A new market shift is also under way in which organisations are moving from proprietary technology to Extranet solutions. A comparison of EDI and extranet technology is shown on the next slide Small businesses using the internet can compete on a level playing field with large competitors, expand globally and improve their trading partner relationships.
Comparison of EDI and Extranets

Characteristics Infrastructure Transmission cost Access Scale EDI
Customised software
Extranets
Package solutions that leverage and extend existing internet. Inexpensive and fast internet connections. Web browser, support EDI protocols as well as many other open Standards Supports real-time buying and selling, allowing for tighter and more proactive planning
49
Extensive VANS or leased lines, slow dial-up connections Proprietary software
Restricted to only the largest vendors who can support the EDI infrastructure.
LIMITATIONS of EDI..cont. (INFLEXIBILITY)

EDI is a cumbersome, static and inflexible method of
transmitting data most suited to straightforward business transactions such as the placement of procured orders for known requirements. It is not suitable for transactions requiring tight coupling and coordination such as the combination of several possible procured alternatives or supply chain optimisation. Unlike human beings computers are poor at interpreting unstructured data and cannot derive useful information from web documents that are not predefinedMarch 2012permanent. and 50 IS/IT Procurement -
INFLEXIBILITYcontd
The standard document language used to create
web pages is Hypertext Markup Language (HTML).

HTML is able to display data and focuses on how data
looks, it cannot describe data.(i.e. HTML can state what items a supplier can offer, it cannot describe them).
Traditionally EDI approaches do not provide the
flexibility required in a dynamic Internet environment.

INFLEXIBILITY..contd
XML(Extensible Markup Language) approved by
theWorld WideWeb Consortium (w3c) in 1998 is an attempt to solve the HTML problem and provide a foundation for a whole new way of communicating across the Internet.
The major difference between EDI and XML is
that the former is designed to meet business needs and is a process.

XML is a language and its success in any
business will always depend on how its being used by a given application.
As a language, XML provides a basic syntax
that can be used to share information between many types of computers, different applications and organizations.
XML can describe (as distinct from display) data. For example , it enables the procurer to understand in detail what a supply has to offer and ensures that a procurement order is accurate and describes what the procurer requires. XML provides a direct route between the procurer
and supplier irrespective of the size of either what was unavailable with EDI. Its argued that when widely used, XML will result in IS/IT Procurement - Marchof EDI. the demise 2012 54
What XML will do- and is already doing- is to force EDI
solution providers to consider how they need to reengineer the EDI business model to fit into a more flexible framework and also how to leverage the benefits of the Internet.
As far as MRO (maintenance, repair and operating)
supplies e- procurement is concerned, XML will become an important element and it will be necessary for both purchasers and suppliers to consider how their applications will work within the XML framework.
Other Ways of Transmitting Data Electronically

Other ways of transmitting data electronically between two or
more organizations include. Encrypted e-mails (which are very cost effective for businesses)
Orders can be collected securely online and put into existing in-house
systems which automatically e-mail suppliers when stock value reach lower limits.
Cellular phones and PDAs owing to changing technology.
Until recently PCs were the Internets access device of choice, but preferred substitutes such as cellular phones and PDAs are outselling PCs several times over as IBM publication states. 56
Other Ways of Transmitting Data Electronically.cont. (PORTALS)

Generally synonymous with gateway the term portal refers to
a world wide web site that provides a major starting point for web users. (i.e. an entry point or homepage for accessing Internet content and services).
Portals may be Horizontal or Vertical.
Typical horizontal or consumer portals include yahoo, excite,
Lycos, and Microsoft network. Vertical or Enterprise Information Portals (EIPs) provide information to a particular group or interest who access the customised or personalised portal. As Pimblett states.
Enterprise Information Portal
58
Other Ways of Transmitting Data Electronically.cont. (PORTALS)

Integrating existing systems and new technologies is the real
benefit of web portals .

In a back-to-front scenario, portals allow analytical processing
of applications to derive information from databases and other information repositories that were previously unavailable to managers or sales personnel in the field.
In a front-to-back scenario, portals allow a greater number of
points of entry for supply of databases and enterprise resource planning systems.
Legal and Security Issues of E-Business Adoption

The many advantages of EDI and the internet
are balanced by concern over security and legal aspects.

Lack of clarity on these issues is significant
reason why many organizations have been slow to adopt e-business approaches.
Security Issues of E-Business Adoption

Security threats to information transmitted by EDI and the Internet include:
Interception and modification of messages (e.g. purchase
orders, credit card numbers) sent by third parties Loss of messages. Messages may be read by persons other than the intended recipient. A third party may pretend to be one of the original two parties. One of the parties may claim never to have sent or received a particular message.
Security Issues of E-Business Adoption.contd

Approaches to meeting the above concerns include:
Encryption technologies:
the act of encoding information in such a way that only the holder of a secret password can decode and read it. Encryption is based on an algorithm or mathematical formula that can transform unintelligible text, and a key (symmetric encryption) or pair of keys ( asymmetric encryption) to decrypt the text. Certification authorities are entities that certify signatures and provide proof that a signature is valid.
Legal Issues of E-Business Adoption

E-business raises legal issues relating to: Online contracts, i.e.
- Contracts and types of contracts - Pre-contract considerations - Contract creation - Writing and signature requirements - Online contract terms and conditions
63
Legal Issues of E-Business Adoption... contd

International issues
- Jurisdiction - Applicable law - Enforcement - Reconciliation of territorial law and global reach
64

Evidence and security:
- Types of evidence - Real evidence - Admissibility and hearsay evidence - The reliability of computer evidence - Good practise i.e. BSI and DISC PC 00008 codes - Protection of intellectual property.

Data protection Webvertising Taxation of electronic commerce
For further clarification on the above matters students should
consult ISO and BS specifications 17799 and 7799 in which information security is defined as maintaining: Confidentiality- personal and business sensitive confidential information is protected from unauthorised disclosure, loss, damage or use.

Availability- ensuring that information is available to
those persons authorised to see, use and process information.

Integrity- information is protected from unauthorised
alteration and is reliable. Other useful sources of information on the security and legal aspects of e-business include relevant publications of the UK government and the European Commission.
The IS/IT Evolutionary Steps/Phases

As an organization moves along the evolutionary
process, it expands its capability for delivery and increased business value via information.
Understanding how to evolve to an intelligent
enterprise means the organization has comprehended the steps along the way.
Organizations need to recognise where they are and
why, and then understand how to move to the next level.

The IS/IT Evolutionary Steps....cont.

These are classified into the following five levels. o Level 1: Operate o Level 2: Consolidate. o Level 3: Integrate. o Level 4: Optimise. o Level 5: Innovative. These five steps along the IS/IT evolutionary road,
and some milestone issues, are illustrated below.


Innovate
Sustainable business model for the Optimize enterprise ERP culture Incremental Improved target improvements achievements Added-value Integrate Better links to improvements strategic plans and Improved supplier vision Enterprise management Better relationship Information Consolidate Improved quality management More informationmanagement data/deliverables based decisions Develop team work Added-value HR Better cross-functional Awareness of systems improvement communications opportunities Still some variable Operate Improved quality performance Basic information Still some departmental measurements Limited Processes interest Individualistic Separate independent systems IS/IT Procurement - March 2012 70

Companies and organisations use information
technology (IT) and information system (IS) differently. Organisations are at varying levels of IT/IS evolution and maturity, and at the same time the technology continues to move forward. The key to using information successfully is not in how far the organisation has evolved but how it is evolving. The intelligent enterprise shows sound judgement and rationality in planning a practical approach to delivering solutions that meet the long-term information need of 71 the organisation.
Key Elements of IT System Procurement

The basic purpose of a purchasing system are to: o Receive or identify and log customers demands or requirements. o Identify a source of supply to specification o Ensure audit process and authority o Enable a buyer to agree a price and terms for supply o Raise an order or contract for delivery from a supplier o Ensure that goods are delivered to that order requirement o Generate the order or contract as a prime document in the payment process o Produce procurement reports.
Key Elements of IT System Procurement

The assessment and evaluation of existing or planned
..cont
purchasing systems should relate to these basic purpose. However, if a buyer is involved in specifying an upgrade or a new system, there are several other costs and measures that should be considered:
o IT software licence fees o Database integration costs- set-up and or integration
with existing systems o Installation costs o Training costs, including software maintenance and upgrade time and costs.
73
INFORMATION TECHNOLOGY/INFORMATION SYSTEMS PROCUREMENT

Technology purchases are risky because of its extensive use in
businesses The product may or may not work as advertised or may not provide the level and quality of work that may be desired. There is a need to consider as many of the potential issues as possible. The supplier may not be financially stable enough to stay till the live of the technology. IT/IS should provide a technical solution to organisations challenges but not to create more problems.
Evolution of purchasing
Stage 1. Product-Centered Characteristics Concerned with the 5 rights Concentrate exclusively on the purchasing of tangible products and outcome dimensions by means of which this product can be described and mentioned Moves beyond a concern with outcomes and begins to measure the process via which the outcome is delivered. Expand to include purchaser-supplier relationships and how these might be used to manage the quality and nature of the supplier. Focused on best product management methods. Employs an integrated methodology to manage relationships, processes and outcomes. Jointly resources this methodology with suppliers
2. Process-Centered 3. Relationship -Centered 4. Performance-Centered
75
Evolution of purchasing
by Reck, R.F and Long B. (1998)
Stage 1. Passive Characteristics Purchasing reacts to request by functions and has no strategic direction Low purchasing visibility Supplier selection based on prices and availability Purchasing function adopts latest techniques but strategy is independent of firms strategy Performance based on cost reduction Purchasing supports firms competitive strategy Purchasing included in sales proposal teams Suppliers considered as a resource Mkts are analyzed and monitored Fully integrated into firms strategy Use of cross functional teams Performance measurement of purchasing
76
2. Independent
3. Supportive
4. Integrative
Changing role of purchasing

Aspect Structure Procedures Purchase considerations Sourcing Purchasing performance Traditional Regarded as a separate function Paper-based, slow and high cost price Multi sourcing , local or national Changing Considered a cross functional relationship and part of the integrated Supply chain IT based, emphasis on centre led and user department involvement Total cost Reduced supplier base, global sourcing
Price differences and saving s Value-added as part of the supply chain
77
Changing role of purchasing

Aspect Supplier Relationships Quality and specification Inventory and lead times Purchasing performance Traditional Short term and adversarial Purchasing specification High to provide security Changing Long term and partnerships Supplier specification and certification Low due to JIT
Price differences and saving s Value-added as part of the supply chain
78
Five rights
These objectives aim at securing goods and services:
1. 2. 3. 4. 5.
of the right quality, at the right time, delivered to the right place, in the right quantity, at the right price
Others are : 6. at the right terms, and 7. from the right source.
Procurement Process

Identifying the need Determining the quality requirements, Determining the quantity requirements, Solicitation of bids/quotes Selecting the sources of supply, Negotiating the terms of purchase and delivery, Issuing the formal purchase orders/procurement contracts, Monitoring and follow-up of the contract, Reviewing performance
80
Procurement Process..cont
Identification of Need This need is normally identified by the function Together with the procurement and supply function develop a clear specification which will provide potential suppliers with adequate information.
81
Procurement Processcont
Quality May be defined as the suitability of the product for its intended use.
The procurement department should have wide
knowledge on materials, market trends and the credibility of different suppliers.
82
Quality cont.
Quality may be defined as fitness for
intended purpose ie fitness; merit; excellence.
83
WHAT IT/IS TO PROCURE

This will depend on Business case but it must:-
- detail benefits in measurable form - provide critical accountability and monitoring -distinguish mandatory from desirable features - help manage priorities -build in transaction, flexibility and scalability - precede organisational requirement analysis - Define Statement of work and evaluation criteria
WHAT IT/IS TO PROCURE cont.

Senior management should understand as well as approve the
business case Changes during actual procurement process are very expensive, get it right first time Introduce to IT/IS procurement contract management Laws and regulations Governing IT/IS must be covered extensively Supplier selection must include the undertaking due diligence, Negotiation before awarding
85
IT/IS OPTIONS
Three options in order of preference:
1. 2.
Buy a package on the market Get external supplier to develop what the organisation Develop it in house
86
3.

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M39EKM

INFORMATION SYSTEM/INFORMATION TECHNOLOGY PROCUREMENT

TELECOMMUNICATIONS AND NETWORKS

each other by means of a shared directory.

telephones and web TV.

IS/IT Procurement - March 2012

aluminum wire wrapped with spacers to insulate and protect it

from as high as trillions of bits per second. of electricity

Uses light elements instead

Source: CMCD/Getty Images.

signals Uses microwave radio signals

message from one cell to another

application may be optic, microwave or satellite, either separately or interoperating.

IS/IT Procurement - March 2012

accessible by telephone lines.

TYPE OF OWNERSHIP contd

Business value of the Internet

IS/IT Procurement - March 2012

TYPE OF OWNERSHIP contd

IS/IT Procurement - March 2012

TYPE OF OWNERSHIP contd

TYPE OF OWNERSHIP contd

Intranet is a term applied to an organisation-wide systems

TYPE OF OWNERSHIP contd

IS/IT Procurement - March 2012

TYPE OF OWNERSHIP contd

network for receiving, storing distributing their data.

TYPE OF OWNERSHIP contd

and receipt from multiple partners with a single telephone call.

IS/IT Procurement - March 2012

and MANS according to the area covered:

Local Area Network (LAN)

as an office, classroom, or building

GEOGRAPHIC SCOPE cont.

IS/IT Procurement - March 2012

GEOGRAPHIC SCOPE cont.

IS/IT Procurement - March 2012

Virtual Private Networks (VPN)

25 IS/IT Procurement - March 2012

NETWORK TOPOLOGY contd

LAN resembles a star.

NETWORK TOPOLOGY contd

IS/IT Procurement - March 2012

NETWORK TOPOLOGY cont.

computer is broken then only that computer is down.

NETWORK TOPOLOGY contd

resembles the seating on a bus.

NETWORK TOPOLOGY contd

NETWORK TOPOLOGY contd

is connected to every other device.

forWANs were reliability is important.

several types can be connected for maximum effectiveness.

E-Procurement or Online Procurement

due partly to the dot.com bubble.

Electronic Data Interchange (EDI)

an exchange between organisations and companies without paperwork.

How EDI Works

How EDI Workscont.

with no paperwork and a minimum of human involvement.

IS/IT Procurement - March 2012

marketing, procurement, production and finance.

relationships and increase mutual trust.

Potential Problems in Implementing EDI