MGSC 300 Final Review

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ERP Application: CRM

sales prospecting, customer management, marketing, customer support, call center support

ERP Application: Manufacturing

scheduling, capacity planning, quality control, bill of materials, and related activities

Chapter 12

Systems Analysis and Design

Information Systems by Scope: Workgroup

10-100 users; procedures understood within group: problem solutions within group; somewhat difficult to change Ex. Physician Partnership

Information Systems by Scope: Enterprise

100-1,000s of users; procedures formalized; problem solutions affect enterprise; difficult to change Ex. Hospital

Information Systems by Scope: Inter-Enterprise

1000s of users; procedures formalized; problem solutions affect multiple organizations; difficult to change ex. PRIDE system

BPI Phase: Analysis

- the BPI team examines the "as is" process map and the collected data to identify problems with the process (e.g., decreasing efficiency or effectiveness) and their root causes. - If possible, the team should also benchmark the process by comparing its performance with that of similar processes in other companies, or other areas of the organization.

BPI 5 Phases

-Define -Measure -Analysis -Improve -Control (Dan Makes Apples In Cakes)

How are Systems Developed?

-Determine hardware specifications -Determine software specifications -Design database -Design Procedures- normal, backup and failure recovery procedures - Design Job Descriptions - create and define new tasks and responsibilities

Elements of ERP

-ERP Application programs -ERP Business process procedures -ERP Databases -ERP Training and Consulting

ERP Market Leaders

-ERP market mature with only 3.8% to $25billion 2013 -Consolidation of vendors is likely, with smaller vendors falling out entirely -Top five own 55% of market share -Cloud is having a major impact on ERP vendors -Microsoft, Oracle, SAP

Plunge (Direct)

-High Risk if new system fails -Only if new system not vital to company operations

IT Factors that affect Supply Chain Performance cont..

-Reduce costs of buying and selling -increase supply chain speed -reduce size and cost of inventories -improve delivery scheduling, enable JIT -fix bullwhip effect -do not optimize supply chain profitability

System Definition

-assign a few employees such as (Systems Analyst), possibly on a part time basis, to define a new system, assess its feasibility, and plan project -members include users, managers, and IS professionals

System Testing

-Test Plan -Product Quality Assurance -User Testing- develop test plans and test cases -Beta Testing: Users final say on whether system is "production ready" -augmenters with testers and business users

Removal of Silos and Tech implemented

-Workgroup: Ex. Physician Partnership, Silo = physicians and hospitals store separated data about patients. Unnecessarily duplicate tests and procedures Tech= functional applications -Enterprise: Ex. Hospital, Silo = hospital and local drug store pharmacy have different prescription data for the same patient Tech = Enterprise applications (CRM, ERP, EAI) on enterprise networks -Inter-enterprise: Ex. Inter-agency prescription application. Silo = No silo; doctors, hospitals pharmacies share patients prescription and other data Tech = Distributed systems using Web service technologies in the cloud

Business Process Reengineering (BPR)

-a radical redesign of an organization's business processes to increase productivity and profitability -examines business processes with "clean slate" approach - example used was Taco Bell, National geographic, Ford, Amazon and postal service

Business Process Improvement (BPI)

-an incremental approach to move an organization toward business process centered operations -focuses on reducing variation in process outputs by identifying the underlying cause of the variation

Parallel

-complete new and old systems run simultaneously -very safe but expensive

BPI Phase: Define

-documents the existing "as is" process activities, process resources, and process inputs and outputs, usually as a graphical process map or diagram. - documents the customer and the customers requirements and a description of the problem

Factors that affect Supply Chain Performance

-facilities -inventory -transportation -information

Pilot

-implement entire system in limited portion of business -limits exposure to business if system fails

Incorrect Data Modification

-procedures incorrectly designed or not followed - increasing a customer's discount or incorrectly modifying employee's salary - placing incorrect data on company Web site -Improper internal controls on systems -Systems errors -Faulty recovery actions after a disaster

Maintenance

-record requests for change: failures or enhancements - prioritize requests -fix failures: patches, service packs , new releases

BPI Phase: Measure

-relevant process metrics, such as time and cost generate one output (product or service) are identified, -and data is collected to understand how the metrics evolve over time (data sources, such as customer and employee observations, interviews and surveys)

Customer Relationship Management (CRM)

-suite of applications, database and set of inherent processes -manage all interactions with customer through the four stages of the customer life cycle

Phased

-system installed in phases or modules -each piece installed and tested

BPI Phase: Improve

-the BPI team identifies possible solutions for addressing the root causes, maps the resulting "to be" process alternatives, and selects and implements the most appropriate solution.

BPI Phase: Control

-the team establishes process metrics and monitors the improved process after the solution has been implemented to ensure the process performance remains stable. An IS system can be very useful for this purpose.

Profit

-total revenue generated minus total costs incurred -maximum profit from chain -not achieved if each organization maximizes its own profits in isolation -profitability increases when one or more operate at less than maximum profitability (ex. carries larger than optimal inventory)

Customer Life Cycle

1. Marketing 2. Customer Acquisition 3. Relationship Management 4. Loss/ Churn

Firewall

A firewall is a system designed to prevent unauthorized access to or from a private network. You can implement a firewall in either hardware or software form, or a combination of both. Firewalls prevent unauthorized Internet users from accessing private networks connected to the Internet, especially intranets.

Enterprise Resource Planning Systems (ERP)

A suite of modules, database, set of inherent processes for consolidating business operations into a single, consistent computing form -primary purpose: integration of purchasing, human resources, production, sales and accounting data into a single system - allow real time global updates of transactions -enable critical business decisions using latest data.

Diseconomies of Scale: Brook's Law

Adding more people to a late project makes the project later -veteran members train new staff and lose productivity while training -schedules can only be compressed so far - Once a project is late and over budget, no good choices exist

BPI vs BPR

BPI: -low risk/low cost -incremental change -bottom-up approach -takes less time - quantifiable results -all employees trained in BPI BPR: -high risk/high cost -radical redesign -top-down approach -time consuming -impacts can be overwhelming -high failure rate

Hacking

Breaking into computers, servers, networks

Hybrid Model

ERP Customers store most data on cloud servers and sensitive data on self-managed servers

Chapter 9 Extension

Enterprise Resource Systems (ERP)

ERP and the Cloud

Hardware: -Cloud based hosting --PaaS: Install ERP Software and databases on leased cloud hardware --SaaS: Use ERP vendors ERP software as a service ex. SAP, Oracle, Microsoft and others

Requirements Analysis

Heavy with business and systems analysis

Spoofing

IP Spoofing: intruder uses another IP address to disguise its identity Email Spoofing: same as above but in email form

ERP Databases

Includes a database design and initial configuration data -more than 15,000 tables with metadata and relationships, rules and constraints about metadata about relationships

Chapter 10

Information Security Managment

Faulty Service (Usurpation)

Occurs when a computer criminals invade a computer system and replace legitimate programs with their own unauthorized ones that shut down legitimate application and substitute their own processing to spy, steal and manipulate data or other purposes

Denial of Service Attack Un-intentional

Occurs when humans inadvertently shut down a Web server or corporate gateway router by starting a computationally intensive application

Denial of Service Attack Intentional

Occurs when millions of bogus requests flood a web server and prevent it from servicing legitimate requests

Loss of Infrastructure: Property Loss

Property or capital lost due to destruction ex. building destroyed in natural disaster

Information Systems by Scope: Personal

Single user, procedures are informal; problems isolate; easy to manage change. ex. Drug Salesperson

Chapter 10 Extension

Supply Chain Management

Encryption

The translation of data into a secret code. The most affective way to achieve data security.

Supply Chain Management System

a set of software solutions that manages and oversees the flow of goods, data, and finances as a product or service moves from point of origin to its final destination

Silo

a silo occurs when data is isolated in separated information systems. Usually between departments. Problems created by silos; 1. Data are duplicated which causes data duplication 2. When applications are isolated, business processes are disjointed 3. A consequence of such disjointed activities in the lack of integrated enterprise information 4. This leads to inefficiency from making decisions in isolation

Just In Time Inventory (JIT)

a strategy used to minimize inventories deliver the precise number of parts, called work-in-process inventory, to be assembled into a finished product at precisely the right time

Component Design

emphasizes the separation of concerns with respect to the wide-ranging functionality available throughout a given software system.

Biometric Authentication

ex- fingerprints, eye scan

ERP Application: Accounting

general ledger, accounts receivable, accounts payable, cash management, fixed asset accounting

Implementation

heavy with programmers, testers and database designers

Drive-By sniffers

intercepts computer communications

Vendor Managed Inventory (VMI)

occurs when the supplier, rather than the retailer, manages the entire inventory process for a particular product or group of products

ERP Application: Human Resources

payroll, time and attendance, HR management, commission calculations, benefits administration, and related activities

ERP Application: Supply Chain

procurement, sales order processing, inventory management, supplier management, related activities

Bullwhip effect

small change is all it takes to make large supply chain impact -unexpected distortion in supply chain -natural dynamic multistage supply chains - Caused by variability in size and timing of orders - Caused by variability in size and timing of orders -affects each stage of supply chain from customer to supplier -large demand fluctuations force distributors, manufacturers and suppliers to carry larger inventories -reduce overall profitability in the supply chain -eliminate by giving supply chain participants access to consumer demand information from the retailer

Supply Chain

the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses, to the end customers

Project Management

the practice of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria at the specified time.

Loss of Infrastructure: Advanced Persistent Threat

theft of intellectual property from U.S firms, these are long running sophisticated and well funded organizations, ex. governments

Wardrivers

used in wireless communications


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