1. Introduction to MIS1 Copyright © 1998 by Jerry Post Introduction to MIS Chapter 7 Integration of Information

2. Introduction to MIS2 Outline  Integration in Business  Static and Dynamic Integration  Word Processors, Database and Spreadsheet Integration  Spreadsheets  Word Processors  Database Reports  Guidelines for Integrating Data  Integrating Data with Windows  Integration over Networks  Workgroup Integration  Communication  Compound Documents  Databases  Applications  Problems with Sharing  Group Decisions  Open Systems: Integration

3. Introduction to MIS3 Changes sales data 3 reports (printed) weekly reports 1970s Sales Terminals Sales Terminals Central computer: create reports Manager: Integrate, graph analyze Secretary: type & revise Management sales data 3 reports (printed) weekly reports 1980s Sales Terminals Sales Terminals Central computer: create reports Manager: Integrate, graph analyze Management personal computer sales data 1990s Sales Terminals Sales Terminals DBMS: On-line data Personal Computer Weekly reports & ad hoc queries (applications) Management query data

4. Introduction to MIS4 Integration Finance Accounting Production Marketing Human Resources Operations Tactics Strategy data decisions Company

5. Introduction to MIS5 Business Integration Example Daily Sales ReportFebruary 16, 2001 DepartmentItem#Q-soldPriceValue House1153522.95153.40 5543130.597.67 W.Clothing5563187.3287.32 7765454.89219.56 9986215.6931.38 Shoes1553265.79131.58 6673129.3929.39 Total Sales:660.30 Returned Merchandise Log February 16, 2001 Item#QPriceValue 115332.958.85 3353627.59165.54 4453215.9531.90 8878124.9524.95 Total12231.24 CommissionsFebruary 16, 2001 Emp#NameDeptSalesRateAmount 1143JonesHouse543.955%27.20 2895BrownM.Clothing775.354%31.01 4462SmithW.Clothing1,544.525%77.23 7893TorrezShoes876.936%52.62 9963CouscoM.Clothing589.475%29.47 File: C07E06.xlsC07E06.xls File: DeptStore.mdbDeptStore.mdb

6. Introduction to MIS6 Integrated Report Example Weekly Sales Analysis2/04/01 - 2/17/01 Manager comments are written in the first ten pages, along with comments on special events. Department Analysis DeptSalesReturnsCommissionsNet House4,113.5825.35205.683,882.55 W.Clothing54,221.92998.523,024.6450,198.76 M.Clothing28,664.48356.241,421.5826,886.66 Shoes10,225.31853.47592.368,779.48 Total:97,225.292,233.585,244.2689,747.45

7. Introduction to MIS7 Business Integration VendorsCustomers Design & Engineering Marketing Distribution Manufacturing Purchasing Administration & Management HRMAccountingFinanceMIS Just-in-Time Quality control & Custom orders Quick Response Designs and Quality Mass Customization Demand-pull Design feasibility & production costs product planning partnerships & joint development partnerships & joint development planning & monitoring planning & monitoring

8. Introduction to MIS8 ERP Integration Database Headquarters (France) Database Subsidiary (Spain) Financial data General ledger Payroll … Manufacturing Product details Inventory … 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.

9. Introduction to MIS9 Enterprise Resource Planning  Integrated systems  Examples  SAP  Peoplesoft  Lawson  J.D. Edwards  Basic features included  Accounting  Purchasing  HRM  Investment management  International environment  Multiple currencies  Multiple languages  Procedures and practices  Follows local (national) rules  Follows consolidation rules  Example  U.S. firm with European subsidiaries.  Data is entered once  European reports are generated for subsidiaries following local rules  Results are converted and consolidated to U.S. firm following international and U.S. rules

10. Introduction to MIS10 SAP Financials  Treasury  Cash management  Treasury management  Market risk management  Funds management  Enterprise Control  Executive information system  Business planning and budgeting  Profit center accounting  Consolidation  Financial Accounting  General ledger  Accounts receivable/payable  Special ledgers  Fixed assets  Legal consolidation  Investment Management  Investment planning/budgeting/control  Depreciation forecast/simulation/calculate  Controls  Overhead cost  Activity based costing  Product cost  Profitability analysis

11. Introduction to MIS11 SAP Logistics  Purchasing  Materials management  Manufacturing  Warehousing  Quality management  Plant maintenance  Service management  Sales  Distribution  Product data management  Master data management  Design and change process  Product structure  Development projects  Sales and distribution  Sales activities  Sales order management  Shipping and transportation  Billing  Sales information system

12. Introduction to MIS12 SAP Logistics  Production planning and control  Production planning  Material requirements planning  Production control and capacity planning  Costing  Order information system  Shop floor information system  Project system  Work breakdown structures  Network planning techniques, milestones  Cost, revenue, financial, schedule, and resource management  Earned value calculation  Project information system

13. Introduction to MIS13 SAP Logistics  Materials management  Purchasing  Inventory management  Warehouse management  Invoice verification  Inventory controlling  Purchasing information system  Quality management  Quality planning  Quality inspections  Quality control  Quality notifications and certificates  Quality management information system  Plant maintenance  Structuring technical systems  Maintenance resource planning  Maintenance planning  System for technical and cost accounting data  Maintenance information system

14. Introduction to MIS14 SAP Logistics  Service management  Customer installed base administration  Service contract management  Call management  Billing  Service information system  Integration  When the clerk enters a sale, bills are generated automatically (mail, fax, or EDI).  Sales and revenue are instantly updated in financial and control modules.  The sales information system and EIS provide various up-to-date views and reports.

15. Introduction to MIS15 SAP HRM  Personnel management  HR master data  Personnel administration  Information systems  Recruitment  Travel management  Benefits administration  Salary administration  Organizational management  Organization structure  Staffing schedules  Job descriptions  Planning scenarios  Personnel cost planning  Payroll accounting  Gross/net accounting  History function  Dialog capability  Multi-currency capability  International solutions  Time management  Shift planning  Work schedules  Time recording  Absence determination  Error handling

16. Introduction to MIS16 SAP HRM  Personnel development  Career and succession planning  Profile comparisons  Qualifications assessments  Additional training determination  Training and event management  Other features  SAP Business workflow  Internet scenarios  Employee self-service

17. Introduction to MIS17 SAP Integration  Financial general ledger holds all base totals.  Sub-ledgers are defined for important accounts  Accounts payable  Manufacturing  User-defined  etc.  All transactions automatically flow through  Including currency conversions  Special rules can be defined  Simple example  Manufacturing uses an item from inventory  The quantity on hand is updated  The inventory value is automatically changed  On any sub-ledgers  On the general ledger  Reports are generated in any currency  New orders and payments can be generated through EFT.

18. Introduction to MIS18 Advantages of ERP  Eliminates costly, inflexible legacy systems  Improved technology infrastructure  Improved work processes  Increased data access for decision making  Expense & time  Radical change  Integrating with other systems  One vendor risks Disadvantages of ERP

19. Introduction to MIS19 Disadvantages of ERP

20. Introduction to MIS20 Workgroup Example Design Team Client HQ Connecticut Finance & Management Team Consulting HQ California Design Project origination Singapore Design Plans Changes & Corrections Problems & Suggestions Costs & Budgets Changes & Costs Cost Analysis Cost targets & comments Changes & Suggestions Message Supplier Contact Database Design Proposals Supplier Contact Database Message Design Proposals Cost Analyses 1 2 3 4 Message

21. Introduction to MIS21 GDSS  Group Decision Support Systems  Brainstorming  Shared access  Voting  Record of comments  Anonymity?  Drawbacks  Typing  Facilitator  Costs

22. Introduction to MIS22 GDSS Room Group decision support systems can be used to coordinate meetings, record notes, take votes, and encourage participation. As shown in this system by Ventana corporation, each participant enters data in a PC, with summary results displayed on the central screen.

23. Introduction to MIS23 Data Warehouse/Legacy Systems Data Decision maker manager Data warehouse Selected data items Analysis tools Shared access Sales transactions and production operations Interdepartmental teams

24. Introduction to MIS24 Integration with Diversity IBM central computer Unix file server Radio Network Hardware compatibility: support for network connections. Software compatibility: ability to store, transmit and display data created on different machines. PC client Salesperson’s laptop

25. Introduction to MIS25 Static Integration Document  Copy the objects to the document.  Changes to the original do not affect the copies. Container Document Original spreadsheet object Original graph object Static copy of spreadsheet object Static copy of graph object

26. Introduction to MIS26 Dynamic Integration Document  Objects are linked to the document.  Document requests changes and updates copies as needed. Container Document Original spreadsheet object Original graph object Dynamic display of spreadsheet copy Dynamic display of graph copy request changes send data request changes send data

27. Introduction to MIS27 Compound Document Container Document Database Graph Image Text SpreadSheet

28. Introduction to MIS28 Dynamic Links  Advantages  Data references are always up-to-date.  Computer & document know the source of all components.  Updates and changes are automatic, with less user training.  Disadvantages  Moving a document forces links to be rebuilt or dropped.  Cannot make radical changes to underlying components  Software upgrade problems.  File deletions, moves and major alterations affect other (unknown) users.  Data changes can cause reformats that require fine- tuning of layouts.

29. Introduction to MIS29 Network Links Sales Marketing Accounting Marketing Forecast Graph Sales Table Cost of Goods Sold Spreadsheet Integrated Data

30. Introduction to MIS30 Integration over Networks  Share data  Support links  Data  Software availability  Joint Authorship  Transmit reports File Server Container Document Circulated Report Server Applications Computer 2 Computer 1

31. Introduction to MIS31 Spreadsheet link to DBMS À Request data Á Send data  Fill spreadsheet à Data changes Ä Send new data Spreadsheet DBMS data (1) Query to request data (2) Send data (4) Data changes (5) Send new data (3) Fill spreadsheet

32. Introduction to MIS32 Microsoft Pivot Table  Data - Pivot table report.  Select data using a database query (Rolling Thunder).  Choose data for rows, columns and table computations (row: ModelType, SaleState; column: Month(SaleDate); Table: SalePrice.  Create additional groups (Mark quarters, Data - Group and outline - Group.  Hide or show detail.

33. Introduction to MIS33 Protected Changes  Tools - 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.

34. Introduction to MIS34 Annotation  Insert - Comment  Insert - Object - Wave  Make sure you and your colleagues have a sound card and microphone.  Set up and test the multimedia tools.  Know what you want to say and keep it short.  Video can be used also but you need a camera, video capture card, and editing software. Comment Recorded (wave) comment

35. Introduction to MIS35 Problems with Sharing  Same software  Data conversion tools weak.  Exact layouts require same versions.  Same environment, fonts, devices, drivers  Hardware conversions not exact.  Missing devices might cause crashes.  Need access and network paths.  Transmission time.  Concurrency  Tracking.  Locking.  Replication.

36. Introduction to MIS36 Cases: Automobile Industry

37. Introduction to MIS37 Cases: Ford Motor Company General Motors What is the company’s current status? What is the Internet strategy? How does the company use information technology? What are the prospects for the industry? www.ford.com www.gm.com

38. Introduction to MIS38 Appendix: Microsoft NetMeeting http://www.microsoft.com/netmeeting/ Video Participants Sound, Video Document

39. Introduction to MIS39 Appendix: NetMeeting Chat Screen

40. Introduction to MIS40 Appendix: NetMeeting WhiteBoard A simple graphics tool, but it is shared by all participants. All comments and drawings are sent to the other screens.

41. Introduction to MIS41 Appendix: NetMeeting Shared Document Changes are displayed as they are typed. The owner can integrate them later. Tools Protect Document Track Changes