IT for Managers

S. Ramanathan

A Framework for Information Systems

Development Process
Applications Technology Foundation Concepts

Information System Resources
People Data Software Hardware Networks Technologies to
  

Collect data / information Transform data into information Disseminate information

A system to effectively and efficiently handle all information related tasks Capture. consolidate  Format. transmit. retrieve  Analyze. disseminate  Archive. delete . timely reflection of facts Permit quick access to desired information Make information useful in a given context Make information available and usable Store. classify. verify. summarize. validate  Information system Truthful.

Information system Procedures   Define work flow and steps in an activity Define processing logic. products   People   . modem Operational staff. managers External users (customers) Technology.. telephone Computer system. role of people E. pencil.G. typewriter. word processor. supervisors. Book.

g) business system. political system .What is a System? Set of interrelated elements with a common goal (e.

The System Concept Systems may be abstract (conceptual) or physical   Social system is an example of abstract system Data processing system is a physical system Goals Inputs and outputs Conversion process Feedback and control Communication with other subsystems Environment Boundaries A system is defined by        .


Classification of Systems Natural (rivers. lakes…) or manmade (Computer) Closed (does not interact with outside world) or Open (interacts with external environment) .

Expanding Role of IS 1990s2000s 1980s – 90s Electronic Business Strategic and End user support Decision Support Management Reporting Data Processing 1970s -80s 1960s – 70s 1950s – 60s .

Leveraging IT at Different Levels Strategic support at top Decision support for Managers Operational support for business procedures .

Beware: Inasmuch as IT can make. IT can mar business too Case: Hershey Foods .

IS for Strategic Advantage .

C o m p e t i t i v e S t r a t e g i e s Strategies for Competitive Advantage Competitive Forces Bargainin Bargainin g power of g power Suppliers of Customer s Differentiati on Cost Innovation Growth Alliance Rivalry of Threat of Competitors New Entrants Threat of Substitute .

Strategic Role of Information Systems Lower Costs   Use IT to reduce the cost of business process Use IT to reduce the cost of customers and suppliers Develop IT features to differentiate products and services Use IT features to reduce the differentiation advantage of the competitor Use IT features to focus on specific markets and products Create new products and services that include IT components Differentiate    Innovate  .

Strategic Role of Information Systems – Contd. Promote growth   Use IT to manage expansion Use IT to diversify and integrate into other products and services Use IT to create virtual organization of business partners Develop interorganizational information systems linked by the Internet and extranets to support strategic relationships with customers and suppliers Develop alliances   .

Strategic Role of Information Systems – Contd. produce and deliver products and services Use interorganizational systems to create switching costs that lock in customers and suppliers Use investment in IT to create barriers for new entrants Use IT to make substitution of products unattractive Use IT to create. Improve quality and efficiency    Use IT to improve quality of product and service Use IT to improve efficiency Use IT to shorten the time needed to develop. share and manage business knowledge Other strategies     .

enable multiple tasks to be performed simultaneously Creation of knowledge to improve the processes Tracking Disintermediatio n Ability to track any entity Direct connect to end users .How can IT improve business processes? Transactional Geographical Automational Analytical Informational Sequential Knowledge Transform unstructured processes into routine transactions Transfer information quickly across large distances Replace labour Handle complex algorithms Handle large amount of information Change the sequence of tasks.

Using Information Technology for Strategic Advantage Reengineering business processes Becoming an agile company Creating a virtual company Building a knowledge-creating company .

Breaking Business Barriers with IT .

Information Technologies .

Hardware .

but still high Proprietary software environment Still used in large corporations. Utility companies Useful for compute-intensive applications Platform for Data Warehousing and data Mining apps . but still large Reduced air-conditioning over a period of time. Government.Mainframes Large and Powerful Computers Main memory: Hundreds of Megabytes to Gigabytes Slimmed over a period.

Mini (Midrange) computers Less costly. less powerful and easier to maintain than mainframes Can support terminals Special purpose applications – scientific analysis. engineering workstations Servers .

but has since become powerful Economical Easy networking Further miniaturization – notebooks Handheld computers – Palmtops .Microcomputers (PCs) Small in size Originally developed for individual use.PDAs .

Power of the processor doubles every 18 months – Moore’s Law .


Hardware  Size Density of circuitry  Speed Cost Reliability Connectivity  .


Supercomputers Very large computers with high processing speed Designed for specialized applications requiring extensive processing power (such as complex mathematical calculations) (E.g) Weather forecasting .

Organization of a Computer Input Process Outpu t Storage .

Central Processing Unit The Brain Most important hardware component CPU Arithmetic –Logic Unit (ALU) Control Unit .

Primary Storage Main memory Also known as Random Access Memory (RAM) Holds data and programs between processing steps Volatile .

Secondary Storage For storage of data and programs   Magnetic disks Optical disks More permanent type of storage .

Optical Character Recognition Barcode Reader Smart cards Digitizer Web camera .Input Devices Keyboard Point and Click  Electronic Mouse  Trackball  Pointing stick  Touch pad  Touch screen Pen-based Voice recognition Optical scanning.

Output Devices

Impact Printers
Dot Matrix Line

Non impact Printers
Inkjet Laser

Plotters Sound Card and Speakers Video

Liquid crystal displays

Storage Devices
Capacity measured in terms of bytes Binary representation of data Magnetic Disk
 

Floppy Disk Hard Disk RAID Storage CD (RW and R) DVD

Magnetic Tape

Optical Disk
 

Sequential and Direct Access

Software .

specific ERP CRM System Management Operating System Network Management Utilities Performance monitors Systems Development Programming languages Editors Tools CASE Security software .Overview of Software Software Application Software For end users Systems Software For computer system operation General Purpose Office automation software Email Presentation graphics Groupware Application .

Application Software for End Users Integrated packages (eg) Oracle business suite Web browsers Electronic mail and instant messaging Word processing  Desktop publishing Electronic spreadsheets Presentation graphics Personal information managers Groupware Alternatives: Buy / Contract / Develop Application Service Providers Software licensing .

Unix. Error logs.g. system accounting)  Recovery from system errors  Support services Popular Operating Systems: Windows. Mac OS X  .Operating Systems Functions: Providing user interface  Permits users to share hardware  Resource management  Task scheduling  File management  Utilities (e. Linux.

Machine Languages Assembly Languages High-level Languages Fourth Generation Languages Object-Oriented Languages . 3.Programming Languages Facilitate a programmer to develop a set of instructions (programs) to be executed on a computer Different Programming Languages 1. 4. 2. 5.

Web Languages HTML XML Java Web Services .

Data Base Management Systems .

Data – Basic Concepts Field: Data item Record: Group of related fields File (table): Group of related records Data Base: Collection of logically related files .

Advantages of a Data Base Data stored in a data base are independent of the application programs using them Advantages        Controlled redundancy Inconsistency avoided Data integrity Integrated view of data Addresses unstructured information needs Enforcement of standards Security .

Data Base Management System Software interface between data base and user Facilitates Creation  Interrogation and  Maintenance of data bases And application development  .

Interacting with Data Base Application Programmer: thro’ DML.g. thro’ DB utilities Sophisticated User: thro’ query language Naïve User: thro’ menu driven application programs . Cobol) Administrator. embedded in a host language (e.

Data Base Creation By Data Base Administrator (DBA) Using Data Definition Language (DDL) Information about cataloged and stored in data dictionary – contains the names and descriptions about all types of data records and their interrelationships. application programs using each data . access privileges.

Data Base Interrogation User-friendly query language Report Generator SQL and QBE .

. A2...SQL SQL is based on set and relational operations with certain modifications and enhancements A typical SQL query has the form: select A1.. r2... rm where P . An from r1.. .

Data Base Structures Hierarchical Network Relational .

Hierarchical Structure Relationship between records form a hierarchy or tree like structure All relationships are one-to-many .

Network Structure Allows many-to-many relationships Relationship between data items is called sets Pointer to locate record Complex – difficult to comprehend. modify. reconstruct .

Relational Structure Data elements are viewed as being stored in tables (relations) Easy to understand and implement Easy to modify Access control is easier to implement .

Multidimensional Structure Variation of relational model Can be visualized as cubes of data Useful for manipulating data with many interrelationships Support online analytical processing (OLAP) applications .

Object-Oriented Structure Used in multimedia web based applications and computer aided design (CAD) Claimed to be superior in handling complex data types such as documents. video clips. graphic images. audio segments than relational database management system .

Architecture of Data Base Schema – logical view of the data base Conceptual schema – created by DA for DBA Internal schema – physical representation External schema – users’ view .

Database Development Data planning Database design: Data modeling using Entity-Relationship diagram – Conceptual model Logical design: in conformance with the requirements of database model chosen such as relational Physical design: data storage in the database and access methods .

standardized and integrated . screened. integrated. edited. query and reporting purposes Data extracted from operational data bases over a period of time. managed store of relevant corporate data optimized for analysis.Data Warehouse A planned.

apart from operational data Additional views of data that are relevant to users in decision support and analysis environment     Integrated Non-volatile Subject-oriented Time invariant .Characteristics of Data Warehouse Separate location for data that is used for decision support and analysis.

Capabilities of Data Warehouse Data storage Data reconciliation Data consolidation Trend analysis Drill-down Slicing and Dicing Graphical output .

Types of Data warehouse Applications Market Analysis Financial Analysis Sales Support Customer Service .

Data Mining Data Mining: Process in a data warehouse to identify patterns – knowledge discovery Data Mart: subset of Data warehouse .

Telecommunications and Networking .

Advantages of Networks Common storage Sharing of resources Sharing of applications Centralized administration .

Imagine breaking these barriers without Networking .

The Internet Revolution Internet is a computer network made up of thousands of networks worldwide. . There are millions of computers connected to the Internet and the number is growing at a rapid rate No one is in control of the Internet.

The Internet backbone. . through which Internet traffic flows. All computers on the Internet communicate with one another using the Transmission Control Protocol/Internet Protocol suite. There are organizations which develop technical aspects of this network and set standards for creating applications on it. abbreviated to TCP/IP.Contd. is owned by private companies.Internet .

news Buy and sell Chat – data and voice . opinions.Business Use of Internet Information Email Discussion forums Publishing thoughts.

Business Value of the Internet Cost reduction More opportunities for marketing Informed decision-making Effective and efficient communication Breaking geographical and time barriers .

complexity and geographical spread Local Area Network (LAN): Collection of networked computers within a premises Wide Area Network (WAN): Connecting computers.Types of Networks Classified on the basis of size. in which a public network service is also used .

Ring and Star Media: Copper cables. Fibre optics Transmission speed: 10 Mbps to 1 Gbps Benefit: Resource sharing .Local Area Network Usually private owned Topologies: Bus.

Wide Area Network
WAN can transmit information across a wide geographic area Can use both public and private networks Error control more difficult than LANs

Intranets and Extranets

Intranets use Web-based and Internet technology to inexpensively and easily share [organizational] data across a private network within an organization
Extranets connect companies with their suppliers and customers via Web links. Extranets facilitate supply chain information sharing

Modulator / Demodulator Necessary because data communication takes place on a telephone line Converts digital signal to analog and back Speed measured in baud rate Support for transmission error control, auto dial and answer

Used to link several low speed lines to a high speed line .Multiplexors Facilitate simultaneous data transmission from many terminals over a single channel.

Client / Server Network Network management from a central computer called server Client makes requests to the server and the server responds with the required information User-friendly interface and part of application logic in client Data storage at the server end: Robustness. Security Flexibility Scalability Reduced cost .

workstation Unix Manages the display of data Performs data input and validation Dispatches requests to server(s) Manages local environment   Display Keyboard .A Typical Client Usually manages the GUI  E.g. Windows. Mac OS.

g.A Typical Server A program that carries out client requests o E. MVS RDBMS Printer Business Logic Files Usually manages some unique resource o o o o . Unix. Windows N/T.

client program will grow bigger (fat client) Only limited scalability Limitations:   .Client / Server Architectures – Two-tier Architecture   client with a front end program server with data base With increasing complexity of application.

Client / Server Architectures – Three-tier Architecture  Client focussed on GUI tasks Application servers focussed on application logic Data base servers .

Network Topologies Bus Ring Star Mesh .

Bus Topology .

if a node fails  Easy to use and understand  Least amount of cable and less expensive  Easy to expand Disadvantages  Degradation high because of attenuation caused by taps to medium  Heavy traffic affects the speed  Vulnerability to break-down in channel  All nodes have access to data on the channel: protection of data .Bus Topology – Contd. All stations connected along a single transmission medium Only one computer can communicate at a time Extension by repeaters Advantages  Network will not fail.

Star Topology .

All computers connected to a single hub.Star Topology – Contd. which establishes connections between stations Resources and management centralized Throughput depends on hub Advantages    Easy to add / remove nodes Node failure does not affect the network Easier to diagnose network problems through hub Vulnerable to failure of central hub Cable cost is higher Disadvantages   .

Ring Topology Work Station/Node Work Station/Node Work Station/Node Work Station/Node .

longer distances can be covered . All the nodes are connected in the form of a ring through repeaters Unidirectional flow Every repeater checks the packet for destination and passes it on Since signals are regenerated at each repeater.Ring Topology – Contd.

Ring Topology – Advantages and Disadvantages Advantages    Easily extendable Predictable delay (Token passing access) Better throughput Vulnerable Difficult to troubleshoot Message delay proportional to the number of nodes Adding / removing computers can disrupt network Maintenance problems restrict number of workstations Disadvantages      .

Mesh Topology .

Every node is connected to every other node Full and Partial mesh topologies Advantages   Minor faults will not disrupt the network Highly reliable Adding / replacing a machine will disrupt the network Installation and maintenance costs are high Disadvantages   .Mesh Topology – Contd.

25 Internet Activities Board (IAB) improvements in Internet standards – TCP/IP.5 International Telecommunications Union (ITU): standards for telecommunications X. SNMP .Network Standards International Standards Organization (ISO): Open Systems Interconnect (OSI) model American National Standards Institute (ANSI): Fibre Distributed Data Interface (FDDI) and other communication standards Electronic Industries Association (EIA) – electrical transmission standards EIA/TIA 232 (formerly RS 232) Institute of Electrical and Electronic Engineers (IEEE): networking standards 802. 802.3.

OSI Model Seven layers – logical partitions for system – system communication Each layer performs a specific function .

The OSI Model Application Presentation Session Transport Network Data link Physical Peer Communication Application Presentation Session Transport Network Data link Physical 1 2 3 4 5 6 7 Information Flow Network Medium .

Physical Layer Defines mechanical and electrical characteristics to establish and maintain the physical connection Digital ones and zeroes are converted to electrical signals Issues addressed     Physical topology Synchronization of bits Transfer rate Transmission mode .

Network Interface Card     Provides connection between a computer’s internal bus and network media Comes in many shapes and sizes Vary by the type of bus connection they employ Have a unique identification number .

Transceiver Part of any network interface (transmitter / receiver) Appearance and function vary with the type of network cable and topology in use .

Repeater Amplifies the signal it receives on one port and resends them on another Extends maximum length of a network segment Disadv: Amplifies everything it receives .

Hub Also called a concentrator central connection point for several network devices a multiport repeater Classified as   Active hub Passive hub .

Data Link Layer Responsible for       Creating packets (Logical chunks) Transmitting packets Receiving packets Logical addressing Detection of and recovery from errors Controlling media access Contention Polling Token passing  Flow regulation: synchronization of fast transmitters and slow receivers .

Network Layer Controls the operation of the network Determines route from source to destination Handles congestion problems .

Data Link and Network layers Connect heterogeneous LANs .Routers Operate at Physical.

forwards them. addresses the packets. reassembles them at destination node .Transport Layer Ensures data transfer between end points with error recovery and flow control Breaks down messages into packets.

Session Layer Provides control structure for communication between applications Establishes. manages and terminates connections (sessions) between cooperating applications Functions   Managing dialog control Synchronization .

Presentation Layer Concerns itself with information representation Transforms information from machine format to user understandable format Services: data translation conversion of file formats encryption .

Application Layer All exchange of information between the user and the network occurs through this layer Responsible for user and application program support such as passwords resource sharing file transfer network file system electronic mail remote login directory services inter-process communications remote procedure call .

Gateways Operate at all layers Enable different communication architecture to communicate Maps functions performed by one application in one computer to another on a different computer .


Networking Protocols Set of rules for sending information over a network Functions       Data transmission mechanism Communication session initiation and termination Addressing and routing Authentication and verification Encryption and compression Error correction .

Transmission cost based on packet and distance. used exclusively by two users. Virtual circuits: logical circuit   Switched Virtual Circuit (SVC): Dynamic on-demand connectivity Permanent Virtual Circuit (PVC): always on-line connection . No error or flow control. route them individually. Error and flow control procedures Circuit Switching: physical channel established between communicating equipment. connection. once established. Transmission cost based on message length Packet Switching: breaking message into packets.WAN Message Transmission Techniques Message Switching: sending a complete message to a concentration point for storage and routing to the destination as soon as the communication path is available.

Base Band Network Single channel frequency Transmit signals without modulation Half duplex transmission Operates at a shorter distances (< 2 miles) Speed: upto 100 Mbps .

Broadband Network Multiple channels and multiple signals at different frequencies Capable of supporting wide range of data. audio and video Full duplex transmission Speed: upto 10Gbps . incl.

Virtual Private Network (VPN) Use of public network to create a secure network among preselected users Less expensive than dedicated lines (eg) Auto manufacturer and its dealers network .

Noise . Twisting reduces the sensitivity of the cable to EMI and also reduces the tendency of the cable to radiate RF noise Low cost.Twisted-Pair Cable Consists of two strands of copper wire twisted together. inexpensive to install lowest cost per foot of any cable Disadv: Cross talk.

Twisted Pair Cable Shielded Twisted Pair (STP) Unshielded Twisted Pair .

New standards however support upto 100Mbps.Categories of Twisted Pair Cables Unshielded Twisted Pair Cable Categories 1 and 2 Voice cables & low data rates < 4Mbps Category 3 Data rates upto 10Mbps. Supports upto 100 Mbps . Supports upto 16Mbps Category 5 Data grade cable with 4 twisted pairs. Category 4 Consists of 4 twisted pairs.

Coaxial Cables Central copper conductor enclosed in an insulating sheath outer metallic case for transmission of high frequency signals .

Coaxial Cable .

. running from building to building Thicknet     .5 inches (13mm) in diameter harder to work with but can carry more signals a longer distance(500m) than Thinnet More expensive relatively safer to install outside. Approximately .Types of Coaxial Cables Thinnet     Light & flexible cable Inexpensive easy to install.25 inches(6mm) in thickness Appx.

Optical Fibre
Transmission of signals in the form of light Higher bandwidth More reliable Extremely secure: Difficult to tap No cross talk High cost

Fiber Optics Cable
Data travels in the form of light Light sources could be LEDs and lasers The centre coductor is a fiber that consists of highly refined glass or plastic designed to transmit light signals with little loss. Glass core supports longer distance but plastic core is easier to support with. Fiber is coated with a cladding or a gel that reflects signals back into the fiber to reduce signal loss. A plastic sheet protects the fiber The end of the cable that receives the light signal must convert it back to electrical form

Fiber Optics Cable

Rationale for Unbounded Media Space constraint Mobile people Temporary Installation Satellite office or branches Ships in Ocean Teams in remote field locations .

communication among mobile police force Should get Govt. clearance for usage of frequency Cheap Easy to tap Interference and Noise .Radio Waves Used where cabling is difficult (eg) communication to ships from shore.

Micro Wave Useful. where cable communication is difficult Line of sight between sending and receiving stations High cost of installation Easy to tap Interference and Noise .

Satellite Communication Transmission across globe Uses artificial satellites Satellite terminals at the sending and receiving ends Reliable Expensive .

Wireless LANs Avoids cabling issues Uses radio technology Short-range wireless technology: Bluetooth in computers and other devices: rate of 1 Mbps within 10 to 100 metres .

PDAs Standard wireless application protocol (WAP): specifies conversion of web pages in HTML / XML into a wireless markup language (WML) to be accessible in a Web-enabled wireless device Third generation (3G) wireless technologies to raise transmission speeds to enable streaming video and multimedia applications on mobile devices .Wireless Web For Smart telephones. pagers.

data and video through digital switching and transmission for worldwide communication Narrowband and Broadband Uses CCITT’s X. Data and Video Formally known as Integrated Services Digital Network (ISDN) Integrates voice.Integrated Voice.25 standard .

administration tools .Network Administration and Control Ensures proper functioning of network Security Monitoring usage and throughput Load balancing Response to security violations Back-up and recovery Planning for scalability Requirements: Knowledge of network topology and protocols.

Network Operating System Renders the network as an unified. controlled and uniform computing environment Enabling terminal – local and remote – access to server(s) Sharing of network resources Checking user authorization to specific resources .

measured in terms of bytes per second .Network Performance Metrics Measures of Communication Network performance   Latency: delay of transmitting a message from source to destination Throughput: quantity of work per unit time.

24 Two pieces of information   Network id Host id . which has overall responsibility of the IP pool and by the Regional Internet Registry (RIR) organizations to which IANA distributes large blocks of IP addresses Unique IP address for each host and network component 32 bit – segmented into four 8 bits (octets).30. separated by dots 01010000.3.00011000 80.IP Addressing Internet addresses are managed by the Internet Assigned Numbers Authority (IANA).00011110.00000011.

Classes of IP Addresses A: assigned to networks with a very large number of hosts    First bit zero Balance bits in the first octet – network id Remaining 24 bits – host id First two bits 10 Next 14 bits network id Balance 16 bits host id First three bits 110 Next 21 bits network id Last 8 bits host id B: medium to large sized networks    C: Small networks    .

B and C .Classes of IP Addresses – Contd. D: for multicast groups – hosts related in some manner   First four bits 1110 Remaining bits uniquely identify the group of hosts First four bits 1111 E: reserved for future  TCP/IP supports only A.

607.211.463.14 Unique identifier: 4.920.IPv6 IP addresses are being extended beyond computers IPv6 increases the address size from 32 bits to 128 bits Can support up to 340 trillion trillion trillion addresses Example     IPv4 address: 198.967.282.366.296 IPv6 address: 2001:DB8:BE:C001:1234:ABCD:22:1 Unique identifier: 340.374.938.51.768.294.100.463.4 .431.


Information Systems in Business .

Types of Information Systems Information Systems Operations Support TPS Process Control Enterprise Collaboration Management Support MIS EIS DSS .

Information Requirements of Decision Makers Ad hoc Unscheduled Summarized Infrequent Unstructured Strategic Management Tactical Management Forward looking External Wide scope Prespecified Scheduled Semistructured Detailed Structured Operational Management Frequent Historical Internal Narrow focus .

Information System and Decision-Making EIS MIS TPS .

goods receipt Online Transaction Processing (OLTP): for better customer service and hence a strategic need Transaction Processing Cycle: Data capture  Data process data base update  Document and Report generation  Query process . purchase Information systems that process data resulting from the occurrence of business transactions (eg) invoicing.Transaction Processing System (TPS)occur as part of Transactions – events that doing business (eg) sales.

ATMs Bar codes Magnetic stripes Optical scanning OCR Pen-based tablet PCs Touch screens Voice recognition system .Data Entry Input activity in transaction processing system Speed and accuracy problems Automated methods of data entry (source data automation):         POS terminals.

Data Processing Batch processing: transaction data accumulated over a period of time and processed periodically (eg) day end process in a bank Realtime processing (online processing): Data processed immediately after a transaction occurs .

Batch Processing Advantages:   Economical Some applications are necessarily batch processes (eg) payroll Current status may not be available Disadvantages:  .

Realtime Processing Particularly important for applications where a high frequency of changes are made in a short period and currency of data is critical Data base protection is more critical than in batch process More controls to prevent unauthorized access High cost .

disk drives. software etc. .Fault Tolerant Systems Built-in back-up failover capability Multiprocessor technology Redundancy in memory.

Transaction Documents  Document and Report Generation Action Documents: initiates action or transaction on the recipient (eg)purchase order Information Documents: confirmation to the recipient that the transition has occurred (eg) sales receipt Turnaround Document: Designed to be returned to sender in whole or in part as acknowledgement (eg) delivery challan Control listings: detailed listing of transactions (eg) payroll report Edit reports: description of errors during processing (eg) error reports   Reports   .

Management Information Systems Produces information products that support many of the day-to-day decision making needs of the management Types of reports     Periodic (eg) weekly sales analysis Exception (eg) list of customers who have exceeded credit limit On-demand Push (eg) selective broadcast of reports (eg) sales analysis reports .

Executive Information Systems Focus on strategic needs of top management Graphical displays Drill-down Exception reporting Trend analysis Web access .

.Groupware for Enterprise Collaboration Software that enables multiple users to share information with one another and to work together on multiple projects (eg) Lotus Notes. Netscape Communicator Collaboration through e-mail. data or audio conferencing. Microsoft Exchange. scheduling and calendaring. discussion forums. Use over Internet or intranets and extranets Designed to make communication and coordination of workgroup activities easier irrespective of location of the team Important applications:  Document management  Workflow systems  Knowledge management . Novell Groupwise. joint document creation etc.

Office Automation Systems  Main purpose: improving office productivity Word processing Spreadsheet Database management Graphics .

Information Systems in Functional Areas .

Strategic Sale Order Forecast Planning Dispatch Invoicing/ MPS RCCP A/c Receivable WO / Sch Creation Operations Planning MRP Purchase Stores Receipt Execution Production Bill Passing A/C payable GL MIS / EIS EIS .

Business Modules in an Enterprise System Finance Manufacturing HR Production Planning Quality Enterprise System Maintenance Sales & Materials Distribution .

Finance Financial Accounting (GL. portfolio management. Fixed Asset. Product Costing. Activity Based Costing) Treasury (Cash. A/R. EIS) Scenarios . Funds. Risk analysis) Control (Budgeting. P&L. A/P. Balance Sheet) Costing (Cost centre accounting. MIS.

Manufacturing Capacity Planning Material Requirement Planning (MRP) Shop Floor Control Engineering Data Management Configuration Management Lot control/ traceability Tooling Lobour Productivity Computer-Integrated Manufacturing (CIM)    Computer-Aided Engineering (CAE) Computer-Aided Design (CAD) Computer-Aided Process Planning (CAPP) Process Control .

Materials Management Pre-Purchasing Activities Purchasing Vendor evaluation Material Inspection Inventory Management Supplier Bill Passing Tracking of material on-order Reservation Consignment Stocks Stock valuation Perpetual audit .

Quality Quality Planning (Material Specifications. QC Charts . Inspection Planning) Inspection and follow-up action Quality Control (Dynamic sample determination on the basis of history.

Valuation. Prospect List) Export Sales Force Automation . Cancellation of Invoices. Quotations) Sales Support (Customer Data. Analysis. Proforma Invoices. Lot Control) Distribution Requirement Planning (DRP) Despatch (Due Date Monitoring . Discounts) Pricing (Costing.Sales and Distribution Customer Data Base Sales Forecast Order Processing Finished Goods Stock (Reservation. Pick List) Invoicing (Credit and Debit Notes.

Training Needs assessment. Staff Cost) Time & Attendance (Time Recording. recruitment. benefits administration) Organization (Organization Structure. Job Descriptions) Payroll (Salary Preparation. Profile Maintenance.Human Resources Personnel (Employee database. Training Management) . Shift Planning) HRD (Career and Succession Planning.

Plant Maintenance Preventive Maintenance Planning Equipment Tracking Component Tracking Calibration Tracking Warranty Claims Tracking .

Enterprise Business Systems Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Customer Relationship Management (CRM) .

WHAT IS ERP? The techniques and concepts employed for the integrated management of business as a whole from the viewpoint of the effective use of management resources .

Information Integration through ERP Business Planning Finance Manufacturing Human Resources ERP Materials Logistics Quality Sales & Distribution Maintenance .

Traditional applications are functionally oriented and lines of demarcation become barriers to communication





ERP is business process based and improves communication and accountability

Organization as a stream of Business Processes
AN EXAMPLE: Order Fulfillment Process Order receipt  Order Processing  Production Planning  Material Planning  Purchase Order Release  Work Order release  Production Monitoring  Warehousing  Despatch Instructions  Billing Accounts Receivable

All processes are customer focused Everybody in the value chain is fully informed about the process Single repository or information and hence non redundancy Updates across functions maintaining consistency Information access across functions

Main Benefits of ERP: Accountability
Responsibility Communication

What can you expect from ERP? To enable improved business processes           Cycle time reduction Increased business agility On-time delivery Inventory reduction Order fulfillment improvement Increased flexibility Improved supplier performance Reduction in quality costs Improved resource utility Better customer satisfaction .

What more can you expect from ERP? To provide flexible. integrated. realtime decision support   Improved information accuracy Better decision making capability .

Still More To support business growth requirements    Multiple product lines Multiple languages Multiple currencies To eliminate limitation of legacy systems    Fragmentation of data and processing inflexibility to change obsolete technologies .

ERP – Top Players in India SAP. Navision. Axapta J D Edwards Peoplesoft MfgPro Marshall BaaN MakeESS . Business One Oracle Microsoft Dynamics.

For ERP to succeed clarity of expectations from ERP top management commitment reasonable scope adequate resources the right product the right people for implementation Participation of end users proper communication within the organization steering committee and strong leader balanced team good training sound and appropriate Implementation methodology good monitoring and review mechanism .

Service Web enabling . Government.Trends in ERP Industry specific versions Additional Features Targeting SME Segment Stratified offerings with reduced functionality Lower Entry Price Faster deployment methodologies Extension to Non-manufacturing Sectors – Retail. Utilities.

Additional Features Integration with Business Intelligence Systems Supply Chain Management Capability of integration with Electronic Data Interchange (EDI) and Electronic Fund Transfer (EFT) Smooth integration with popular CAD packages Integration with workflow Simulation capability (useful for capacity calculation) Data warehousing and Data Mining .

wants. the needs of current and potential customers .What is CRM? a multifaceted process. as well as anticipate. and buying patterns. that focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs. – Wikipedia definition CRM helps companies understand. mediated by a set of information technologies.

So. and capturing information on customers Unified view of customer across the enterprise . What is CRM? Enhancing the experience of customers Identifying.

What Constitute Customer Relationship Management? Customer Support WWW Fax Post Sales -Cross-sell -Up-sell email Telephone Customer or Prospect Cell .

Different Aspects of CRM Customer facing operations Back-office operations Collection of metrics .

Components of CRM Sales Force Automation     Lead tracking Opportunity management Contact management Partnership relationship management Call centre management Online help facilities Internal help desk Expert systems Customer Service and Support     .

Components of CRM – Contd. Marketing Automation (Customer facing)        Online catalog Campaign management Surveys Contest management Distribution of marketing materials Email marketing Customer intelligence Gathering customer data Analyzing data Formulating strategy action .

Types of CRM Operational CRM:  Makes customer interaction with the company easy Extracts customer preferences from data warehouse Input for customizing products to suit customer needs and maximize customer value Analytical CRM:   Collaborative CRM:  Integrates supply chain for higher responsiveness Internal and external information base of customers accessible to employees for better customer service Portal-based CRM:  .

Supply Chain Management .

distribution.What is a Supply Chain? Includes all parties involved in fulfilling customer request Includes manufacturers. customer service…. finance. . warehouses. operations. transporters. suppliers. retailers and customers Includes functions such as order receipt. order execution.

Redundant physical assets maintained to handle supply chain uncertainties were no more necessary . The current data availability ensures control of processes and verification of performance Availability of accurate information across the organization ensured reduction of physical inventories and resource requirements.Role of IT in SCM IT integrates the internal business functions so that availability of data is current and uniform across the organization.

Benefits of e-SCM •Scalability: 24*7 availability Capability to handle multiple requests •Reduced interaction cost: Quick and economical search Reduced cost of coordination Aggregate purchasing Easy comparison shopping Reduced ‘maverick’ spending .

• Level Play: No entry barrier • Economy: Sourcing at globally competitive prices Substitution of inventory with information .Benefits of e-SCM – Contd.

E-SCM improves supplier performance Free Flow of Communication Transparency Accountability Improved supplier performance .

Electrical Sector Network Connectivity with : 400 Stockists (E-enabled) 28 Regional / Branch Offices 600 Vendors (E-enabled) 4 Factories 9 Godowns .EBG .

com .www.LNTEBG.

B2B Purchase Queries for Vendors Purchase Orders Login & Authentication Goods Receipts Accounts Details Selection Criteria : From date -.To date Document number Material Plant .

qty supplied. description. qty pending. date.Purchase Order (PO) Query Orders with schedules Orders awaiting invoice Closed Orders Summary : PO number. material code. delivery schedule Full PO : by clicking PO number in summary . rate.

rejected.. accepted..Goods Receipt (GR) Query Cleared GRs GRs pending for quantity check GRs awaiting inspection Summary : GR number. qty supplied. challan ref. date. VQR Rejection Details : by clicking on quality lot number . PO ref.

. amount. cheque details for cleared invoices .Accounts Query Open invoices Paid invoices Bill number. due date. date. PO ref. invoice errors (if any).


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