chapter 11

Four factors have contributed to the growth of the commercial software market:

(1) the relatively low cost of general commercial software as compared to customized software; (2) the emergence of industry specific vendors who target their software to the needs of particular types of businesses (3) a growing demand from businesses that are too small to afford in house systems' development staff (4) The trend toward downsizing organizational units and the move toward distributed data processing has made the commercial software option appealing to larger organizations are completely finished and tested systems that are ready for implementation.

phased in

-It is particularly suited to diversified organizations whose units do not share common processes and data. -independent ERP systems can be installed in each business unit over time to accommodate the adjustment periods needed for assimilation.

data mart

-is a data warehouse organized for a single department or function. •Rather than containing hundreds of gigabytes of data for the entire enterprise, a data mart may have only tens of gigabytes of data. •Other than size, we make no distinction between a data mart and a data warehouse.

access control list (ACL)

-is a list containing information that defines the access privileges for all valid users of the resource. -An access control list assigned to each resource controls access to system resources such as directories, files, programs, and printers.

payback method

-is a variation of break-even analysis. -Under the payback method, the break-even point is reached when total costs equal total benefits.

Enterprise resource planning (ERP)

-systems are assembled from prefabricated software components -are multiple module software packages that evolved primarily from traditional manufacturing resource planning (MRP II) systems

two-tier model

-the server handles both application and database duties. -Client computers are responsible for presenting data to the user and passing user input back to the server.

three tier model

-where the database and application functions are separated. -This architecture is typical of large ERP systems that use wide area networks (WANs) for connectivity among the users.

The data warehousing process has the following essential stages:

1.Modeling data for the data warehouse 2.Extracting data from operational databases 3.Cleansing extracted data 4.Transforming data into the warehouse model 5.Loading data into the data warehouse database

object oriented approach

Build information systems from reusable standard components or objects

Control

By keeping modules small, they are less likely to contain material errors of fraudulent logic

Programming efficiency

Modules can be coded and tested independently

Backbone systems

Provide a basic system structure on which to build

Maintenance efficiency

Small modules are easier to analyze and change

project schedule

a budget of the time and costs for all the phases of the SDLC and represents management's commitment to the project.

client/server model

a form of network topology in which a user's computer or terminal (the client) accesses the ERP programs and data via a host computer called the server.

user handbook

a reference manual of commands for getting started.

The systems development process constitutes

a set of activities by which organizations obtain IT-based information systems.

one of the most critical control issues in an ERP environment.

access security

The systems development process activities are of interest to

accountants and auditors

online analytical processing (OLAP)

an enterprise resource planning decision support tool used to supply management with real time information. -It also permits timely decisions that are needed to improve performance and achieve a competitive advantage.

systems evaluation and selection phase

an optimization process that seeks to identify the best system.

Using Internet technologies and OLAP applications

an organization can share its data warehouse with its trading partners and, in effect, treat them like divisions of the firm.

Turnkey systems

are completely finished and tested systems that are ready for implementation.

Office automation systems

are computer systems that improve the productivity of office workers.

General accounting systems

are designed to serve a wide variety of user needs.

stakeholders

are entities either inside or outside an organization that have a direct or indirect interest in the firm

Online transaction processing (OLTP)

are events consisting of large numbers of relatively simple transactions such as updating accounting records that are stored in several related tables.

Systems professionals

are systems analysts, designers, and programmers who have expertise in the specific areas that the feasibility study covers

core applications

are those applications that operationally support the day today activities of the business. •Sales and Distribution •Business Planning •Production Planning •Shop floor control •Logistics

End users

are those for whom the system is built

Systems maintenance

constitutes the organization's program change procedures: It begins once the seven phases are completed and the system is fully implemented.

ERP functionality falls into two general groups of applications:

core applications and business analysis applications.

data warehouse

database constructed for quick searching, retrieval, ad hoc queries, and ease of use

system implementation phase of the systems development process

database structures are created and populated with data, equipment is purchased and installed, employees are trained, the system is documented, and the new system is installed.

systems selection report

deliverable portion of the systems selection process that will go to the next phase

A data warehouse is composed of both

detail and summary data.

structure diagram

diagram that divides processes into input, process, and output functions

run manual

documentation describing how to run the system.

drill down capability

enables users to view details, and details of details, of information useful data analysis technique associated with data mining.

Legal feasibility

ensures that the proposed system is not in conflict with the company's ability to discharge its legal responsibilities.

The process of data warehousing involves

extracting, converting, and standardizing an organization's operational data from ERP and legacy systems and loading them into a central archive the data warehouse.

Total cost of ownership (TCO) includes

hardware, software, consulting services, internal personnel costs, installation, and upgrades and maintenance to the system for the first two years after implementation.

Tangible benefits fall into two categories:

hose that increase revenue and those that reduce costs

Intangible benefits

improve customer satisfaction

The ERP implementation team

includes key users and information technology (IT) professionals, selects specific database tables and processes by setting switches in the system.

New systems development

involves conceptual steps that can apply to any problem-solving process: •identify the problem •understand what needs to be done •consider alternative solutions •select the best solution •finally, implement the solution.

Data cleansing

involves filtering out or repairing invalid data prior to being stored in the warehouse. transforming data into standard business terms with standard data values.

Strategic systems planning

involves the allocation of systems resources at the macro level and often deals with a time frame of three to five years.

role

is a formal technique for grouping together users according to the system resources needed to perform their assigned tasks

role-based access control (RBAC)

is a formal technique for grouping users according to the system resources they require to perform their assigned tasks.

data warehouse

is a relational or multidimensional database that may consume hundreds of gigabytes or even terabytes of disk storage.

changed data capture

is a technique that can dramatically reduce extraction time by capturing only newly modified data.

big bang

is an attempt by organizations to switch operations from their old legacy systems to a new system in a single event that implements the ERP across the entire company.

iterative approach

is associated with SDLC where small "chunks" or modules cycle through all ofthe SDLC phases rather rapidly, with a short time frame from beginning to end.

A key feature of a data warehouse

is that the data contained in it are in a nonvolatile, stable state

An OLAP transaction

is the aggregation of sales data by region, product type, and sales channel.

Walk-through

is the analysis of system design to ensure the design is free from conceptual errors that could become programmed into the final system.

Technical feasibility

is the determination of whether the system can be developed under existing technology or if new technology is required.

Systems analysis report

is the formal report that marks the conclusion of the systems analysis phase

Net present value method

is the method in which the present value of the costs is deducted from the present value of the benefits over the life of the system.

Data extraction

is the process of collecting data from operational databases, flat files, archives, and external data sources.

The purpose of project planning

is to allocate resources to individual applications within the framework of the strategic plan.

The purpose of project planning

is to allocate resources to individual applications within the framework of the strategic plan. •involves : •identifying areas of user needs, •preparing proposals •evaluating each proposal's feasibility and contribution to the business plan, •prioritizing individual projects ,•scheduling the work to be done

The objective of systems planning

is to link individual system projects or applications to the strategic objectives of the firm.

The primary reason for data warehousing

is to optimize business performance.

conceptual design phase

is to produce several alternative conceptual systems that satisfy the system requirements identified during systems analysis

OLAP applications support

management critical tasks through analytical investigation of complex data associations that are captured in data warehouses.

project proposal provides

management with a basis for deciding whether to proceed with the project.

OLTP applications support

mission critical tasks through simple queries of operational databases.

Fact Gathering Techniques

observation, task participation, personal interviews, reviewing key documents

Economic feasibility

pertains to the availability of funds to complete the project.

Operational feasibility

pertains to the degree of compatibility between the firm's existing procedures and personnel skills and the operational requirements of the new system.

The purpose of the detailed design phase

produce a detailed description of the proposed system that both satisfies the system requirements identified during systems analysis and is in accordance with the conceptual design.

Schedule feasibility

relates to the firm's ability to implement the project within an acceptable time.

detailed design report

set of blueprints that specify input screen formats, output report layouts, database structures, and process logic.

Supply chain management (SCM)

software is a class of application software that supports the set of activities associated with moving goods from the raw materials stage through to the consumer.

Bolt-on software

software provided by third party vendors used in conjunction with already purchased ERP software

two methods of conceptual design phase

structured designed, object designed

The participants in systems development may be classified into three broad groups:

system professionals, end users, and stakeholders

role-based governance

systems that allow managers to view current and historical inventory of roles, permissions granted, and individuals assigned to roles; identify unnecessary or inappropriate access entitlements and segregation-of-duties violations; and verify that changes to roles and entitlements have been successfully implemented.

Vendorsupported systems

systems that the vendor develops and maintains for the client organization.

extraction software compares

the current operational database with an image of the data taken at the last transfer of data to the warehouse. Only data that have changed in the interim are captured

System survey

the determination of what elements, if any, of the current system should be preserved as part of the new system

Systems development life cycle (SDLC)

the software development process.

Scalability

the system's ability to grow smoothly and economically as user requirements increase.

break-even point

total costs equal total benefits

Data flow diagrams (DFDs)

use of a set of symbols in a diagram to represent the processes, data sources, data flows, and process sequences of a current or proposed system.

WHY PERFORM STRATEGIC SYSTEMS PLANNING ?

•Resolving conflicts that arise from new systems •Reviewing projects and assigning priorities •Budgeting funds for systems development •Reviewing the status of individual projects under development •Determining at various checkpoints throughout the SDLC whether to continue with the project or terminate it

Organizations acquire information systems in two ways:

•They develop customized systems in house through formal systems development activities. •They purchase commercial systems from software vendors.

OLAP servers support common analytical operations:

•consolidation, •drill down •slicing and dicing.

Develop Performance Measures

•reductions in inventory levels •inventory turnover •stock-outs •average order fulfillment time that reflect its expectations

Modular Programming

This technique produces small programs that perform narrowly defined tasks.