Introduction to MIS - Chapter 7: Integration of Information

Introduction to MISChapter 7Integration of InformationIntegrationEveryone in the company including managers, salespeople, and engineers need access to the same data across the organization.OutlineBusiness IntegrationEnterprise Resource PlanningCustomer Relationship ManagementWorkgroupsData WarehousesIntegration with DiversityCases: AutomobilesAppendix: Microsoft NetMeetingBusiness Integration ExampleDaily Sales Report February 7, 2004Department Item# Q-sold Price ValueHouse 1153 52 2.95 153.40 5543 13 0.59 7.67W.Clothing 5563 1 87.32 87.32 7765 4 54.89 219.56 9986 2 15.69 31.38Shoes 1553 2 65.79 131.58 6673 1 29.39 29.39Total Sales: 660.30Returned Merchandise Log February 7, 2004Item# Q Price Value1153 3 2.95 8.853353 6 27.59 165.544453 2 15.95 31.908878 1 24.95 24.95Total 12 231.24 Commissions February 7, 2004Emp# Name Dept Sales Rate Amount1143 Jones House 543.95 5% 27.202895 Brown M.Clothing 775.35 4% 31.014462 Smith W.Clothing 1,544.52 5% 77.237893 Torrez Shoes 876.93 6% 52.629963 Cousco M.Clothing 589.47 5% 29.47File: C07E06.xlsFile: DeptStore2000.mdbIntegrated Report Example Weekly Sales Analysis 2/01/04 - 2/07/04Manager comments are written in the first ten pages, along with comments on special events. Department AnalysisDept Sales Returns Commissions NetHouse 4,113.58 25.35 205.68 3,882.55W.Clothing 54,221.92 998.52 3,024.64 50,198.76 M.Clothing 28,664.48 356.24 1,421.58 26,886.66Shoes 10,225.31 853.47 592.36 8,779.48Total: 97,225.29 2,233.58 5,244.26 89,747.451960s & 1970s MIS PiecesPurchasing:OrdersSales:OrdersProduction:MRPMarketing:ForecastsAccounting:Integrated DataSeparateReportsChangessalesdata3 reports(printed)weekly reports1970sSalesTerminalsSalesTerminalsCentralcomputer:create reportsManager:Integrate, graphanalyzeSecretary:type & reviseManagementsalesdata3 reports(printed)weekly reports1980sSalesTerminalsSalesTerminalsCentralcomputer:create reportsManager:Integrate, graphanalyzeManagementpersonal computersalesdata1990sSalesTerminalsSalesTerminalsDBMS:On-line dataPersonal ComputerWeekly reports &ad hoc queries(applications)ManagementquerydataIntegration in 2000ssalesdataSalesTerminalsSalesTerminalsDBMSExecutive InformationSystemPersonal ComputerOr PDAOr BrowserManagementquerydataSuppliersBanksProduction/ServiceEnterprise Resource PlanningBusiness IntegrationVendorsCustomersDesign &EngineeringMarketingDistributionManufacturingPurchasingAdministration & ManagementHRMAccountingFinanceMISJust-in-TimeQuality control & Custom ordersQuickResponseDesigns and QualityMassCustomizationDemand-pullDesign feasibility& production costsproduct planningpartnerships& jointdevelopmentpartnerships& jointdevelopmentplanning& monitoringplanning& monitoringERP IntegrationDatabaseHeadquarters(France)DatabaseSubsidiary(Spain)Financial dataGeneral ledgerPayroll ManufacturingProduct detailsInventory Use inventory item. Deduct quantity. Update inventory value.Check for reorder point. Order new item through EDI. Update Accounts payable.Project cost report.Daily production report.Weekly financial status.Cash flow.Budget versus actual cost.Enterprise Resource PlanningIntegrated systemsExamplesSAPPeoplesoftLawsonJ.D. EdwardsBasic features includedAccountingPurchasingHRMInvestment managementInternational environmentMultiple currenciesMultiple languagesProcedures and practicesFollows local (national) rulesFollows consolidation rulesExampleU.S. firm with European subsidiaries.Data is entered onceEuropean reports are generated for subsidiaries following local rulesResults are converted and consolidated to U.S. firm following international and U.S. rulesSAPBased in Germany, now worldwideSupport for international transactions and multinational firmsRuns on multiple database and hardware platformsCan handle large and small companiesExpensive, but price is relative.FinancialsLogisticsHuman resource managementSAP FinancialsTreasuryCash managementTreasury managementMarket risk managementFunds managementEnterprise ControlExecutive information systemBusiness planning and budgetingProfit center accountingConsolidationFinancial AccountingGeneral ledgerAccounts receivable/payableSpecial ledgersFixed assetsLegal consolidationInvestment ManagementInvestment planning/budgeting/controlDepreciation forecast/simulation/calculateControlsOverhead costActivity based costingProduct costProfitability analysisSAP LogisticsPurchasingMaterials managementManufacturingWarehousingQuality managementPlant maintenanceService managementSalesDistributionProduct data managementMaster data managementDesign and change processProduct structureDevelopment projectsSales and distributionSales activitiesSales order managementShipping and transportationBillingSales information systemSAP LogisticsProduction planning and controlProduction planningMaterial requirements planningProduction control and capacity planningCostingOrder information systemShop floor information systemProject systemWork breakdown structuresNetwork planning techniques, milestonesCost, revenue, financial, schedule, and resource managementEarned value calculationProject information systemSAP LogisticsMaterials managementPurchasingInventory managementWarehouse managementInvoice verificationInventory controllingPurchasing information systemQuality managementQuality planningQuality inspectionsQuality controlQuality notifications and certificatesQuality management information systemPlant maintenanceStructuring technical systemsMaintenance resource planningMaintenance planningSystem for technical and cost accounting dataMaintenance information systemSAP LogisticsService managementCustomer installed base administrationService contract managementCall managementBillingService information systemIntegrationWhen the clerk enters a sale, bills are generated automatically (mail, fax, or EDI).Sales and revenue are instantly updated in financial and control modules.The sales information system and EIS provide various up-to-date views and reports.SAP HRMPersonnel managementHR master dataPersonnel administrationInformation systemsRecruitmentTravel managementBenefits administrationSalary administrationOrganizational managementOrganization structureStaffing schedulesJob descriptionsPlanning scenariosPersonnel cost planningPayroll accountingGross/net accountingHistory functionDialog capabilityMulti-currency capabilityInternational solutionsTime managementShift planningWork schedulesTime recordingAbsence determinationError handlingSAP HRMPersonnel developmentCareer and succession planningProfile comparisonsQualifications assessmentsAdditional training determinationTraining and event managementOther featuresSAP Business workflowInternet scenariosEmployee self-serviceSAP IntegrationFinancial general ledger holds all base totals.Sub-ledgers are defined for important accountsAccounts payableManufacturingUser-definedetc.All transactions automatically flow throughIncluding currency conversionsSpecial rules can be definedSimple exampleManufacturing uses an item from inventoryThe quantity on hand is updatedThe inventory value is automatically changedOn any sub-ledgersOn the general ledgerReports are generated in any currencyNew orders and payments can be generated through EFT.Customer Relationship ManagementMultiple Contact PointsThe goal is to provide a single, integrated view of all customer activity, available to all employees who interact with the customer.Feedback, Individual Needs, and Cross SellingHaving better information enables workers to provide better service, meet the individual needs of each customer.WorkgroupsComputers are increasingly used to support teamwork and workgroups. Data, comments, and analysis are created and shared through networks of computers.SharePoint: DiscussionSharePoint: SurveyCreate a new surveyAdd questionsMultiple ChoiceOpen ended/textSelection ListsRun the surveyGraph the resultsTracking Changes and Adding DiscussionsAnnotationInsert - CommentInsert - Object - WaveMake sure you and your colleagues have a sound card and microphone.Set up and test the multimedia tools.Know what you want to say and keep it short.Video can be used also but you need a camera, video capture card, and editing software.CommentRecorded (wave)commentSharePoint: Subscriptions to Monitor ChangesUsers can subscribe to a document or a directory.They will be notified by e-mail when changes are made.Or notified with a list of changes once a day, once a week, or on whatever schedule the user selects.SharePoint: Routing Slip for WorkflowA routing slip sends documents by e-mail to each person on the list in order.The document records changes and comments.Users on the list can approve or reject changes.Workgroup ExampleDesign TeamClient HQConnecticutFinance & Management TeamConsulting HQCaliforniaDesign ProjectoriginationSingaporeDesign PlansChangesChanges& CorrectionsProblems &SuggestionsCosts & BudgetsChanges &CostsCost AnalysisCost targets& commentsChanges &SuggestionsMessageSupplierContactDatabaseDesignProposalsSupplierContactDatabaseMessageDesignProposalsCostAnalyses1234MessageProblems with SharingSame softwareData conversion tools weak.Exact layouts require same versions.Same environment, fonts, devices, driversHardware conversions not exact.Missing devices might cause crashes.Need access and network paths.Transmission time.ConcurrencyTracking.Locking.Replication.Data Warehouse/Legacy SystemsDataDataDataDataDecision maker managerDatawarehouseSelecteddata itemsAnalysistoolsShared accessSales transactionsand production operationsInterdepartmentalteamsIntegration with DiversityIBMcentral computerUnixfile serverRadioNetworkHardware compatibility:support for network connections.Software compatibility:ability to store, transmit and displaydata created on different machines.PC clientSalesperson’slaptopXML: eXtensible Markup LanguageUsed as a standard means to transfer data to machines with unknown capabilities.Most hardware and software can read and understand the data.The tags describe the content.Usually a separate schema file is used to describe the tags and the document structure. GDSSGroup Decision Support SystemsBrainstormingShared accessVotingRecord of commentsAnonymity?DrawbacksTypingFacilitatorCostsGDSS RoomGroup decision support systems can be used to coordinate meetings, record notes, take votes, and encourage participation. As shown in this system by Ventana corporation, each participant enters data in a PC, with summary results displayed on the central screen.Static IntegrationDocumentCopy the objects to the document.Changes to the original do not affect the copies.ContainerDocumentOriginalspreadsheetobjectOriginalgraphobjectStatic copyof spreadsheetobjectStatic copyof graphobjectDynamic IntegrationDocumentObjects are linked to the document.Document requests changes and updates copies as needed.ContainerDocumentOriginalspreadsheetobjectOriginalgraphobjectDynamic displayof spreadsheetcopyDynamic displayof graph copyrequest changessend datarequest changessend dataCompound DocumentContainer DocumentDatabaseGraphImageTextSpreadSheetDynamic LinksAdvantagesData references are always up-to-date.Computer & document know the source of all components.Updates and changes are automatic, with less user training.DisadvantagesMoving a document forces links to be rebuilt or dropped.Cannot make radical changes to underlying componentsSoftware upgrade problems.File deletions, moves and major alterations affect other (unknown) users.Data changes can cause reformats that require fine-tuning of layouts.Network LinksSalesMarketingAccountingMarketing ForecastGraphSales TableCost of Goods SoldSpreadsheetIntegrated DataIntegration over NetworksShare dataSupport linksDataSoftware availabilityJoint AuthorshipTransmit reportsFile ServerContainerDocumentCirculatedReportServerApplicationsComputer 2Computer 1Spreadsheet link to DBMSRequest dataSend dataFill spreadsheetData changesSend new data SpreadsheetDBMSdata(1) Query to request data(2) Send data(4) Data changes(5) Send new data(3) Fill spreadsheetMicrosoft Pivot TableData - Pivot table report.Select data using a database query (Rolling Thunder).Choose data for rows, columns and table computations (row: ModelType, SaleState; column: Month(SaleDate); Table: SalePrice.Create additional groups (Mark quarters, Data - Group and outline - Group.Hide or show detail.Protected ChangesTools - Protect the document.Save the file and allow others to make changes.Changes are automatically marked in color for each user.Tools - Unprotect the document.Tools - Track Changes - Accept or Reject Changes.Cases: Automobile IndustryCases: Ford Motor CompanyGeneral MotorsWhat is the company’s current status?What is the Internet strategy?How does the company use information technology?What are the prospects for the industry?www.ford.comwww.gm.comAppendix: Microsoft NetMeeting NetMeeting Chat ScreenAppendix: NetMeeting WhiteBoardA simple graphics tool, but it is shared by all participants.All comments and drawings are sent to the other screens.Appendix: NetMeeting Shared DocumentChanges are displayed as they are typed. The owner can integrate them later.Tools Protect Document Track Changes