REVIEW FOR EXAM 3

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REVIEW FOR EXAM 3
BUS3500 - Abdou Illia, Spring 2008
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The Internet and eBusiness
Part 1
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Brief history of the Internet
Make sure you know what DNS is used for.
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Accessing the Internet (www)
Network
Web Browser
Webserver Software
Packet
Packet
Route
Router

• Webserver needs
• Network (or Server) Operating System- TCP/IP-
  Domain name (e.g. eiu.edu)
• Internet access
• IP Address (e.g. 139.67.8.3)

User PC needs- Workstation Operating System-
TCP/IP- Web browser (e.g. Internet Explorer) -
Internet access (e.g. thru an ISP) - IP Address
(e.g. 128.150.50.9)
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Internet applications/services

• E-Mail
• File transfers
• Instant messaging (IM)
• Newsgroups
• Streaming audio and video
• Internet telephony
• World Wide Web (WWW)
• Portal

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Portal

• Portal
• Web site that offers a broad array of resources
  and services such as
• email
• newsgroup
• Serach engines
• Online shopping malls
• Example yahoo!, msn, aol

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Other things to consider

• Make sure you can answer the questions in Quiz 3
  (The quiz is posted to the Review section of the
  course web site).

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Summary Questions
Refers to the slide in class posted notes
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Information Systems forBusiness Integration
ERP Systems
Part 2
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Business Integration?
Suppliers
Integration
Vertical
SalesDepartment
LogisticsDepartment
ProductionDepartment
HorizontalIntegration
Customers
Q what is meant by horizontal business
integration? Vertical?
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Systems for Horizontal Integration

• Enterprise Resource Planning (ERP) systems
• integrate all the internal processes through a
  common information system (or an integrated set
  of info systems)

ERP system
ProductionDepartment
Warehousing
CommonDatabase
SalesDepartment
LogisticsDepartment
MarketingDepartment
AccountingDepartment
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ERP Components (or Modules)

• Two types of components
• Core ERP Components
• Extended ERP Components
• Core ERP Components
• Traditional components found in most ERP systems
• They primarily focus on internal operations

Finance Accounting
CommonDatabase
HumanResource
Manufacturing
Also called Production Material Management
Helps from new products development to actual
production Handles demand forecasting,
production planning, production scheduling,
quality control, etc.
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ERP Components (or Modules)

• Extended ERP Components
• Extra components that might be included
• They primarily focus on external operations

Business Intelligence1
CustomerRelationshipManagement
CommonDatabase
SupplyChainManagement
E-Business2
1 Provide information that help users in
decision-making 1 Collects info used throughout
the organization, organize it, and uses
analytical tools to help decision-making
process 2 Includes e-logistics (managing
transportation storage of goods over the
Internet) and e-procurement (B2B purchase sale
of supplies services over the Internet)
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ERP Components (or Modules)

• ERP mainly used by medium and large businesses
• Average lifetime cost 15 Million (2003 surveys)
• Implementation process up to 5 years

The largest vendors worldwide in 2005 according
to Gartner Dataquest
In January 2005, Oracle bought PeopleSoft the
3rd player until then.
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Factors in ERP System Success

• Active support of upper management
• Having the best people on the implementation team
• Managing the time line well
• User involvement in the planning and implementing
  ERP systems

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Summary Questions
Refers to the slide in class posted notes
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Review Questions

• Make sure you can answer the following questions
  about ERP
• Chapter 10 Review Questions available in the
  Notes section of the course web site.

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Information Systems forBusiness Integration
EDI, SCM, CRM Systems
Part 2 (Cont.)
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Supply Chain Management SCM
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Supply Chain

• Supply Chain includes parties involved in the
  procurement of product or raw material
• Upstream parties
• Downstream parties

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Supply Chain Management SCM

• SCM implies the management of information flow
  between a company and upstream and downstream
  parties of the supply chain
• Which of the following is NOT a potential benefit
  of SCM?
• It helps avoid shortage of raw material
• It could shorten the time for delivering finished
  products to distributors
• It could help organizations better forecast their
  production of goods and services
• It could help organizations better forecast the
  needs of their distributors
• None of the above

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SCM Process

• Stages of SCM (SC Councils Reference Model)
• Planning develop and implement processes that
  attempt to forecast demand for products and
  services
• Goal Balance demand with supply of raw material
• Sourcing determine who should supply the items
  required
• Goal Be supplied on time, within budget
• Production make the product
• Schedule production
• Ensure raw materials are on hand when needed
• Product delivery (logistics)
• Everything from receiving a customer inquiry to
  invoicing
• Warehouse management is one very important factor
• Returns managing returns of raw materials as
  well as finished goods

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EDI a SCM Technology

• Electronic Data Interchange (EDI)
• A network technology that allows the transfer and
  processing of business documents (usually orders)
  between a company and its suppliers

Suppliers
EDI Sys.
EDI System
Value Added Network (VAN)orPrivate network
connection
Companys Internal processes
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EDI SCM Technology

• EDI documents must be formatted according to
  specific standards
• ANSI X12 used in North America
• EDIFACT international, but widely used in
  Europe
• Advantages
• Eliminates paperwork
• Reduces errors
• Speeds supply process
• Disadvantages
• Provides connection only between two companies
• Limits freedom of comparing prices.

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SCM information system

• Part of extended ERP components
• Could be bought separately

Network connection
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Customer Relationship Management CRM
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CRM systems

• CRM systems are systems that can help manage all
  aspects of organizations relation with their
  customers.
• Which of the following is NOT a potential benefit
  of CRM systems?
• Provide better customer service
• Make call centers more efficient
• Help sales staff close deals faster
• Simplify marketing and sales processes
• Discover new customers
• None of the above

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Goals of CRM systems

• Goal of CRM is to increase sales and repeat
  business by learning the customer
• Determine the customers needs and preferences
• Determine the customers satisfaction with
  service
• Determine which customers are in the magic 20
  percent (or have the potential to become part of
  it)
• Recency, Frequency, Monetary value (RFM) at heart
  of CRM systems
• How recently a customer purchased items (Recency)
• How frequently a customer purchased items
  (Frequency)
• How much a customer spends on each purchase
  (Monetary Value

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Summary Questions
Refers to the slide in posted class notes
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Review Questions

• Make sure you can answer the following questions
• Chapter 8-9 review Questions posted to the Notes
  section of the course web site.
• Quiz 4 questions (posted to the Review section of
  the course web site).
• Extra-Credit exercise of 3/27/2008 (posted to the
  Review section of the course web site).

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Managing Security
Part 3
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Best way to prepare

• Review the ppt notes or chapter 4 in the book to
  make sure you can answer the following questions
• Chapter 4 Review Questions available in the Notes
  section of course web site
• Extra-Credit exercise of 4/8/2008 posted to the
  Review section of the course web site).

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Managing the Development and Purchase of IS
Part 4
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Systems Development Methodology?

• The process companies go through to develop and
  maintain an information system
• Framework for successful IS development
• A System Development Methodology is used
• For building a new system
• Or for modifying an existing system
• Examples of SDM
• System Development Life Cycle ? Prototyping
• Joint Application Development ? Rapid Application
  Development

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Questions

• Which of the following is true about SDM?
• They provide guidelines for developing IS and
  maintaining them which includes upgrading and
  improving them.
• SDM are needed when a brand new IS has to be
  developed, but you dont need to use a SDM when
  it comes to modifying an existing IS.
• When a company is engaged in developing an IS,
  the process involves the companys employees who
  would be the future users of the IS, and IS
  professionals like system analysts and
  programmers. But it doesnt involve the companys
  management
• All of the above

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Traditional Systems Development Life Cycle (SDLC)
Planning
Analysis

• Seven phases
• Planning 5) Testing
• Systems Analysis 6) Implementation
• Systems Design 7) Maintenance
• Development
• Typically one phase needs to be completed before
  beginning the next
• Problem in later phase may require return to
  previous phase

Design
Development
Testing
Implementation
Maintenance
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Question

• In SDLC, the 7 phases are typically followed in a
  sequential order, which means we dont return to
  a previous phase in any circumstances
• True
• False

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Planning
Feasibility Analyses
System Development Schedule

• Feasibility analyses
• Technical Analysis
• Do the technologies exist to develop the system?
• Economic Analysis
• Can the organization afford the system?
• Will it provide an adequate Benefit?
• Operational Analysis (i.e. assessing the human
  element of the proposed system)
• Resistance to change
• Organizational politics
• System development schedule
• Is the proposed development time line realistic?
• Is the programming team available during
  Programming step?
• Planning performed by Project Manager using
• Search and investigation (e.g. for technical
  analysis step)
• Total Cost of Ownership analysis
• Project Management software

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Systems Analysis
Analyze current system
Define new system requirement

• Systems analyst works with company to understand
  the problem fully and to detail the requirements
  of the proposed system
• Step 1 Analyze current system
• Objectives
• Understand what things are done and how (business
  processes)
• Identify any problems associated w/ current
  business processes
• Techniques
• Observe employees at work
• Talk to employees (potential users)

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Systems Analysis
Analyze current system
Define new system requirements

• Step 2 Define new systems requirements
• Main Objective
• Specify What need to be done (not how to do it)
• To be defined
• Input requirements (nature of data, source, etc.)
• Processing requirements
• Output requirements (Types of reports, content,
  etc.)
• Storage requirements
• Tools and techniques
• Data flow diagrams (DFD)
• Start with high level process
• Add more levels with increased levels of detail
• Computer-Aided Software Engineering (CASE) tools
• Software that eases the systems development
  process

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Data Flow Diagrams (DFD)
Process
. Symbolized by a rectangle or a curved
rectangle. . Action performed by people of
organizational units in order to transform
input into output OR Action performed by
people in the organizational units to help the
units achieve their objectives
Data flow
. Symbolized by an arrow.. Shows data being
passed from or to a process
External Entity
Symbolized by a square, an external entity is
something (person, group, department, etc.)
outside the system that interacts with the system
by providing input or receiving information.
Data storage
Used to store data in the system. Represents a
file, a database, etc.
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DFD Exercise

• You should be able to answer Questions 1, 2, and
  3 of the Lincoln Pizzas ordering system DFD
  exercise. Hardcopies were given in class. You can
  also get a copy in the Notes section of the
  course web site.

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Systems Design

• Using the requirements from Systems Analysis
  phase to design the new or modified system.
• Logical systems design
• Details the systems functionality (what it
  should do?)
• Uses Structure charts to create top-down
  representation of systems modules
• Uses System flowcharts to show relationships
  between modules
• Physical systems design
• Specifies all of the actual components (hardware,
  network, etc) used to implement the logical
  design
• Design frozen at end of this phase
• Scope creep
• Feature creep
• Performed by system designer or (system analyst
  in some case)

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Development

• Programming process is usually the most difficult
  and time consuming in the Development process.
• Development performed by programmers, database
  developers, and network engineers
• Programmers use Program Development Cycle
• Review the input, processing, output, and storage
  requirements
• Develop the logic of the programs (using
  Flowcharts and Pseudo code)
• Write the programs using code generators
  programming languages
• Test and debug the programs
• Complete the programs documentation

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Development tools
Pseudocode English-language statements that
describe the processing steps of a program in
paragraph form.
Program Flowchart Graphical illustration of the
problem-solving logic within a program

• Programming languages
• Java
• C
• Visual Basic
• Etc.

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Testing

• Programmers test modules
• Do they return proper outputs?
• Do they handle incorrect data appropriately?
• Development team do unit testing
• i.e. testing how modules work together
• System testing (software along with database and
  network component)
• Verification Testing system in simulated
  environment with simulated data
• Validation Testing system in real working
  environment with real data

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Implementation

• Implementation strategies
• Direct cutover Quick change to new system
• Parallel conversion Old and new systems used in
  parallel for a while.
• Pilot testing New system installed at only one
  location or one department
• Staged conversion Only one part of the system
  installed, then another part is installed.
• User training

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Maintenance

• Maintenance counts for as much as 80 of the
  total cost of an information system
• Tasks
• Correct errors found during implementation
• System enhancements
• Incremental upgrades
• Addition of major new features

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Summary Questions
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SDLC Recap
Make sure you can answer questions about System
Development (see link in Review section)