Exam 2 Review

Topics Chapter 5 Data Resource Management Database Terminology Types of Relationships Comparison to File Systems Labs Introduction to Databases Wagemart Scheduling (DSS) Supply Chain Mgmt. & RFID Fund Trading Lab (DSS) Student Presentations & Related Reading (see website) DBMS CRM ERP SCM EIS DSS GIS  Expert System will be on the final but not this exam

First, understand the big picture.

Historical Perspective Information Systems were initially designed to meet the needs of traditional functional areas of business Accounting Finance Human Resources Production or Operations Marketing

CRM System Modern View Enterprise Systems are so valuable and superior, Functional System are rarely developed anymore An Enterprise System can replace several Functional Systems Accounting System Finance System HR System Production or Operations (PCS) Marketing System

Oracle Siebel Modern IS Systems The big software developers (Oracle for example), now sell Enterprise Systems (cross-functional), not functional systems.  i.e., they don’t sell a marketing System, but they do sell a CRM system. Why? Used by Accounting Finance System HR System Essential for Operations Used by Marketing

CRM System Accounting System In the Real World You might use more than one Enterprise System. Example, if you work in Accounting, you might use 2 different Enterprise Systems and one functional system. Accounting Finance Human Resources Production Marketing ERP System

CRM System Accounting System Why this course matters Accountant’s without a back-ground in MIS might not understand the roles these three systems play and why all three are necessary. Accounting Finance Human Resources Production Marketing ERP System

CRM System Accounting System Key Principle These system exist because of common goals and the need to share information. Business Processes are not isolated to one area Accounting Finance Human Resources Production Marketing ERP System

Traditional Classification (Types of Systems) Information Systems Operations Support Systems Management Support Systems Transaction Processing Systems (TPS) Process Control Systems (PCS) Enterprise Collaboration Systems (ECS) Management Information Systems (MIS) Decision Support Systems (DSS) Executive Information Systems (EIS)

Modern View But, Cross-Functional Systems are so complex, they do not fit into one category. Information Systems Operations Support Systems Management Support Systems Transaction Processing Systems (TPS) Process Control Systems (PCS) Enterprise Collaboration Systems (ECS) Management Information Systems (MIS) Decision Support Systems (DSS) Executive Information Systems (EIS) CRM System

WTF? Q: Why did we study the different types if modern systems rarely fit one specific type? A: Some basic systems still fit perfectly into a category  Example: Outlook is just an ECS. A: Some enterprise system lack a certain characteristic.  Example: A poorly design CRM may not have any DSS characteristics.

In the Real World Does this mean an ERP system replaces all these other systems? Information Systems Operations Support Systems Management Support Systems Transaction Processing Systems (TPS) Process Control Systems (PCS) Enterprise Collaboration Systems (ECS) Management Information Systems (MIS) Decision Support Systems (DSS) Executive Information Systems (EIS) ERP System

In the Real World It means that an ERP system has some of the characteristics of all these types of systems.  But, you still might need a basic TPS to handle your point of sale operations and ECS to collaborate. Information Systems Operations Support Systems Management Support Systems Transaction Processing Systems (TPS) Process Control Systems (PCS) Enterprise Collaboration Systems (ECS) Management Information Systems (MIS) Decision Support Systems (DSS) Executive Information Systems (EIS) Peoplesoft Outlook Cash Register System (POS)

Second, make sure you understand databases Almost all information systems have an underlying database

Basic Information System Architecture Forms Reports Charts Applications Algorithms User Interface Queries DBMS Information Systems that transform Data into something more useful… Database: Tables Relationships Metadata User

Logical vs. Physical Forms Reports Charts Applications Algorithms User Interface Queries DBMS Information Systems Database User Physical Access Layer how to actually fetch the data from a hard disk or server Logical Access Layer how to access the DBMS

Why Databases are so great… Database Management System (DBMS) does all the nitty-gritty work. Information Systems just have to deal with Logical (high-level) Access. Physical Access Layer how to actually fetch the data from a hard disk or server Logical Access Layer how to access the DBMS DBMS

Before Databases Marketing Application These Information Systems are custom built based on the data (documents, files, spreadsheets) Customer Data Docs Inventory Management System (TPS) Financial Calculator Tool Special Inventory Data File Financial Spreadsheets Sales Team Warehouse Manager VP of Finance

Functional Systems built with DBMS Marketing System DBMS These Information Systems are now Database Applications Customer Data Inventory Management System (TPS) Finance System Inventory Data Financial Data Sales Team Warehouse Manager VP of Finance

Enterprise Systems built with DBMS CRM System DBMS These Information Systems are now Database Applications Customer Data Inventory Management System (TPS) ERP System Inventory Data Financial Data Sales Team Warehouse Manager VP of Finance

Databases But, databases are not just a bunch of tables A database also includes relationships between the different tables Customers CIDFNameLNameAddress 508EricBreimer AndrewZych GregSmith... Products PIDDescriptionCost 199Viagra$ Tooth Paste$ Hair Gel$5.99 Orders OIDCIDPIDQuantity ,

Types of Relationships One to One ThingAThingB Relationship ManWoman Married

Types of Relationships One to Many Faculty Student Advises Get Advisement

Types of Relationships Many to Many course has a student student takes course Course Student Course Student

Supply Chain Management Systems Remember Lindsey and Deanna’s presentation.

Process of SCM: SCM systems assist with  flow of Raw materials  Producing products  Providing service  Delivering the product to the end consumer.

Goals of an SCM system: Speed Efficiency Reduce Cost Improve Supply chain cycle times (to get a company’s products from concept to market)

Five Basic Components: 1. Plan 2. Source 3. Make 4. Deliver 5. Return

Third, review student presentations See the website… Also, the website tells you the corresponding reading.

Know the supply chain… This wasn’t adequately covered in any of the presentations.

What if there aren’t enough bikes in Finished Inventory? What if you don’t have enough bike parts?

SCM Example Supply Chain Systems are so complicated that its sometimes hard to see simple solutions. Simple Solution: The guy who orders parts queries the Finished Inventory Database and the Orders Database. In the older system, he only looked at the Parts database to see if they should re-order parts.

SCM Fundamentals Implementing and then using an SCM can re- engineer a company.  This could improve the company’s operations significantly  Leads to Strategic Advantage However, notice that an SCM system if very Operational  Its used everyday to support the core business process. ERP systems are very different…

ERP Systems So how are they different than SCM Systems? The key is the word “Planning” Planning is a forward thinking process  Planning for next year… Supply Chain management  Planning for your next order Implementing and using an ERP can re-engineer a company in even more strategic ways.  SCM system are more focused on ….?

ERP Example Remember the presentation by… Shalagh, Tara, and Kristen

One ERP System: Peoplesoft Peoplesoft by ORACLE Helps Companies with: Customer Relationship Management Financial Management Supply Chain Management Project Management Asset Lifecyle Management Sales and Other Application

ERP ADVANTAGES Complete orders faster Fewer errors Security features to protect against outside crime Better customer service Improved efficiency and productivity Easier to share data across departments Complete revenue cycle faster

Do you get it? What’s more likely… An ERP system has a CRM and SCM built into it. A SCM system has an ERP and CRM built into it.

Here is another distinction SCM system help deliver products to customers faster… CRM systems can also help with this… But, CRM system are more focused on things like  Customer Service  Improving Sales  Marketing Support

Remember Ken & Nicole’s presentation… Sales - Marketing Marketing & Customer Service  Customer service could be an operational devision. Training - HR

CRM and Human Resources Professional Development Performance Management Human Resource Development & Compensation

Players Within a CRM Customer Advocates & Experience Designers Performance Managers & Marketing Analysts Customer & Employee Surveyors & Analysts

Input Database with:  Customer’s interactions with the organization  Support information  Requests  Complaints  Interviews  Survey responses

DSS Julie, Lizzy, and Mike’s presentation is a must see…

Why Use a DSS? Linear Programming Regression Analysis Decision Trees Forecasting

Analytical Modeling Type of Modeling Example What-if analysis If we raised our advertising budget by 15% of our employees, what would happen to sales? Sensitivity analysis Continuously raise our advertising budget by 1% to monitor its relationship to sales Goal-seeking analysis Increase our advertising budget until sales reach $10 million Optimization analysis What number of advertisements maximizes our overall profit?

In the real world… Most Management Information Systems are now so interactive that…. Every MIS is really a DSS. Interactivity and Data Modeling are the key ingredients that distinguish a DSS from an MIS.

Where do GIS’s fit in? There are a new kind of DSS that integrates geographic data with regular table-based data.  Maps + Spatial Data + Tables See the presentation by Jill, Will, and Stacey… Things to look at: Raster vs. Vector

EIS: The top of the pyramid A picture is worth a thousand words: An Executive EIS MISDSS CRM MIS TPS SCM PCS External Data

EIS see Larissa &Ciara’s slides for more details…