1. Deploying IT resources (MIS 533) MBS in Management Information Systems and Managerial Accounting Systems (2006 / 2007) Fergal Carton Business Information Systems

2. MBS (MIMAS) / MIS533 / Deploying IT Resources Topics covered SAD methodologies Infrastructure planning Strategic dimension of data management Requirements analysis and systems design Process modelling Data modelling Enterprise systems Database development (MS Access and Oracle).

3. MBS (MIMAS) / MIS533 / Deploying IT Resources Assessment dates A practical exam (20%) which will be the development of a small database from a business scenario An MCQ (20%) on the 28 th February 2006

4. MBS (MIMAS) / MIS533 / Deploying IT Resources This week Final system examples (Johanna, Kerrie, David, Michael)

5. MBS (MIMAS) / MIS533 / Deploying IT Resources More system examples Quality control for Guinness –Test samples from franchised breweries –Test data stored (ph, alcohol, colour, …) –Tolerance ranges –Annual prize / discount for high achievers Interbank Accounts System for TSB –Transactional screen, query screen –Search limited to 3 chars (firstname, surname) SIFASoft for Electronic Point of Sale (EPOS) –Response time on price for products with long history Sage Accounting package –Entering transactions, coding of accounts –Issue knowing which account to use

6. MBS (MIMAS) / MIS533 / Deploying IT Resources This week Basic flows of information Common data platform Integration Data issues with ERP implementations

7. MBS (MIMAS) / MIS533 / Deploying IT Resources Basic flows of information Organisations are organised in a number of functional areas They carry out complementary missions They interact and collaborate in managing the organisation What are they called? What are their goals?

8. MBS (MIMAS) / MIS533 / Deploying IT Resources Examples: Finance: managing the cash flows, providing resources to the firm –sub area: Accounting (books and legal reporting) –sub area: Accounts receivable and payable: deal with suppliers and customers Marketing: promoting the firm and its products Sales: selling the products; dealing with customers –sub area: sales orders –sub area: returns Production: manufacture goods –sub area: purchasing raw material –sub area: quality control

9. MBS (MIMAS) / MIS533 / Deploying IT Resources Collaboration / Conflict All areas of the firm must exchange info with the others (just like organisations must interact with the outside) divergence of viewpoints means opportunities for conflict are great managing same resources / using the same assets but with radically different goals

10. MBS (MIMAS) / MIS533 / Deploying IT Resources Examples: Quality control versus production: –production want to increase volumes and keep productivity at highest levels –QC want to prevent any “faulty” product to come out of the door In an environment where zero defect is only a remote target => conflict is likely in one organisation, QC were referred to as the Sales Prevention department

11. MBS (MIMAS) / MIS533 / Deploying IT Resources Reliable Common Grammar: Examples Sales statistics: –as per invoices? –before returns –adjusted for bad debts –Also, what feed back time? Production figures: –after rejects –adjusted for loss / destruction in finished goods storage –Any possibilities that figures are not reliable? business analysts must talk to everyone to ensure existence of common reliable methods

12. MBS (MIMAS) / MIS533 / Deploying IT Resources Reliable / Undisputed sources of data No debate between functional areas about basic figures of the business - production figures Robust measures of individual / area performance for the purpose of assessment and rewarding Robust externally oriented systems for invoicing / paying Reliable systems for storage / processing / retrieval of data Archiving for comparison

13. MBS (MIMAS) / MIS533 / Deploying IT Resources What does integration mean? –All users access the application via a web browser –Information can shared between different parts of the business –Users follow the same training programme –The data is stored in an array of database tables

14. MBS (MIMAS) / MIS533 / Deploying IT Resources ERP Fit ERP poses Questionable Issues ERP poses Significant Issues Not part of initial scope 1.0 Develop New Products & Features 2.0 Position & Sell2.0 Position & Sell 2.0 Position & Sell2.0 Position & Sell 4.0 Fulfill Sales Order4.0 Fulfill Sales Order 4.0 Fulfill Sales Order4.0 Fulfill Sales Order 5.0 Service Aftermkt5.0 Service Aftermkt 5.0 Service Aftermkt5.0 Service Aftermkt 6.0 Exec. Planning Cycle6.0 Exec. Planning Cycle 6.0 Exec. Planning Cycle6.0 Exec. Planning Cycle 7.0 Support Enterprise7.0 Support Enterprise 7.0 Support Enterprise7.0 Support Enterprise 3.0 Source & Mfg. Inventory3.0 Source & Mfg. Inventory 3.0 Source & Mfg. Inventory3.0 Source & Mfg. Inventory 3.1 Develop strategic supplier relationships 3.2 Identify, qualify and select suppliers 3.3 Plan rqmts for product, spares, subassemblies & components 3.4 Procure product, spares, subassemblies & components 3.5 Expedite, receive and disposition materials 3.6 Manage the product RMA process 3.7 Approve and pay 1.1 Conceive new products 1.2 Design New Products & Features 1.3 Build Prototype for feasibility study & business case 1.4 Develop software & establish test procedures 1.5 Integrate new product into organization 1.6 Manage the product life cycle 2.1 Develop marketing strategy 2.2 Develop product strategy 2.3 Launch new products & features 2.4 Develop & conduct marketing programs 2.5 Establish strategic alliances & partnerships 2.6 Acquire, qualify and refer leads 2.7 Develop proposals, solicit orders and close deals 4.1 Assemble test & integrate products 4.2 Receive & process orders 4.3 Allocate, configure & ship customer orders 4.4 Install, establish final configuration and test equipment at customer site 4.5 Bill & collect money 5.1 Prepare svcs and spares strategy 5.2 Remotely monitor customer product performance; diagnose & remedy problems 5.3 Provide post- installation customer service 5.4 Manage customer warranty and maintenance programs 5.5 Provide customer training & education 6.1 Develop strategic plans and establish operating goals 6.2 Develop Budgets 6.3 Manage the BRM process 7.1 Forecast, measure and report financial & operating goals 7.2 Procure capital items/leases & other goods & services 7.3 Recruit, hire & retain employees 7.4 Deliver total compensation to employees 7.5 Acquire product patents & copyrights 7.6 Plan for and Deliver facility & infrastructure requirements BUSINESS FUNCTIONAL REQUIREMENTS CONSIDERATIONS Vanilla ERP Fit With core business processes PRELIMINARY In reality, because of some of the uniquenesses of the business, an ERP system alone will not provide the functionality required for many of its core business processes.

15. MBS (MIMAS) / MIS533 / Deploying IT Resources Key benefits of ERP? Single point of data entry (PO’s, SO’s, …) Inventory control Opportunity to re-design business processes Single technical platform (support) Common language, common pool of data SalesShippingCollect cash

16. MBS (MIMAS) / MIS533 / Deploying IT Resources

17. Parameters in ERP implementations Integration –Application –Services Standardisation –Business practices Centralisation –Decision making Control Acceleration –Information flows –Business process steps Cost reduction And the two levels at play are: Top management Users of ERP system: Managers at local level Operators HQ Local

18. MBS (MIMAS) / MIS533 / Deploying IT Resources The core of the problem This is how the system works This is how we do business This is how business and software will work together

19. MBS (MIMAS) / MIS533 / Deploying IT Resources ERP Resources : data Data clean-up team Data conversion team Data conversion programmer Legacy data team Data quality testing and maintenance …

20. MBS (MIMAS) / MIS533 / Deploying IT Resources Data issues … Getting and maintaining clean data –When creating a new customer, who has control? –42 occurrences of Siemens in your customer database, what do you do? –Customers exist in ERP core database, but also in several legacy systems. How do you make sure they are in synch? –…

21. MBS (MIMAS) / MIS533 / Deploying IT Resources Resources : Technical (IT ops) Database administrator Systems administrator Operators : core apps Server operators Storage technicians HelpDesk …

22. MBS (MIMAS) / MIS533 / Deploying IT Resources Database issues … Guaranteeing “high availability” How often should Test be refreshed? How many environments should I have –Test –Production –Development –Training –Business Simulation –… If I implement a change to Production, do I need to implement the same change across all environments? 20 programmers developing / testing new code every day: how do I track releases to production? …