chapter 12 - integrating the organizational from end to end_ entreprise resource planning

ERP is a system provide a foundation for collaboration between departments, enabling people in different business areas to communicate. ERP system have  been widely adopted in large organization to store critical knowledge used to make the decision that drive performance.



ERP INTEGRATION DATA FLOW






ERP PROCESS FLOW






ERP BRINGING THE ORGANIZATION TOGETHER 

before





after






THE EVOLUTION OF ERP




INTEGRATING SCM,CRM & ERP

• application such as SCM,ERP & CRM are the backbone of a business
• integrating between these three application is the key to success for many company

INTEGRATION TOOLS

primary users and business benefits of strategic initiatives






integration between SCM, CRM & ERP application

chapter 11- building a customer-centric organization_customer relationship management

CUSTOMER RELATIONSHIP MANAGEMENT [CRM]  
managing all aspect of a customer's relationship to an organization to increase customer loyalty and retention and an organization's profitability


BENEFITS OF CRM

using the RFM formula _ frequency,recency and monetary value,

• how recently a customer purchased items
• how frequent a customer purchases items
• the monetary value of each customer purchase 

EVOLUTION OF CRM

OPERATIONAL AND ANALYTICAL CRM

chapter 10- extending the organization_supply chain management

supply chain management[SCM] involves the management of information flows between and among stages in supply chain to maximize total supply chain effectiveness and profitability


Organizations must embrace technologies that can effectively manage supply chains






FIVE BASIC SUPPLY CHAIN MANAGEMENT ACTIVITIES




ROLE OF IT IN SUPPLY CHAIN





FACTORS DRIVING SUPPLY CHAIN MANAGEMENT



VISIBILITY

• ability to view all areas up and down the supply chain. it allowes additional visibility in the supply chain such as allow managers to view their supplier's and customer's supply chain.

CONSUMER BEHAVIOUR

• Customers will leave if a company does not continually meet their expectation. they are more demanding because they have information readily available, they know exactly what they want and they know when and how they want it.

COMPETITION

• Supply chain planning [SCP] software -uses advance mathematical algorithms to improve the flow and efficiency of the supply chain
• supply chain execution [SCE] software -automates the different steps and stages of the supply chain

SPEED

• Company's ability to satisfy continually changing customer requirements efficiently, accurately, and quickly.

SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS

SEVEN PRINCIPLES OF SUPPLY CHAIN MANAGEMENT

chapter 9 - enabling the organization_decision making

Porter's strategies suggest to entering markets with a competitive advantage in either overall cost leadership, differentiation or focused group. to achieve those results, managers must be able to make a decision making and forecast future business need and requirement.



DECISION MAKING ESSENTIAL





OPERATIONAL

at the operational level, employee develop, control, and maintain core business activities required to run the day to day operations. operational decision are reconsidered structured decision which arise in situation where established process offer potential solutions.



DECISION MAKING PROCESS

1. problem identification
2. data collection
3. solution generation
4. solution test
5. solution selection
6. solution implementation 

TRANSACTION PROCESSING SYSTEM

The structure of a typical organization is similar to a pyramid. Organizational activities occur at different levels of the pyramid. People in the organization have unique information needs and thus require various sets of IT tools.
 
 - Online transaction processing is the manipulation of information to create business intelligence in support of strategic decision making.

 Transaction processing system – the basic business system that serves the operational level (analysis) in an organization
  Online transaction processing (OLTP) – the capturing of transaction and event information using technology to

•   process the information according to defined business rules, 
•  store the information, 
•  update existing information to reflect the new information

 Online analytical processing (OLAP) – the manipulation of information to create business intelligence in support of strategic decision making



DECISION SUPPORT SYSTEM

Decision support system (DSS) – models information to support managers and business professionals during the decision-making process
Three quantitative models used by DSS:

•  Sensitivity analysis – the study of the impact that changes in one (or more) parts of the model have on other parts of the model
•  What-if analysis – checks the impact of a change in an assumption on the proposed solution

• Goal-seeking analysis – finds the inputs necessary to achieve a goal such as a desired level of outputs

EXECUTIVE INFORMATION SYSTEM 

Executive information system (EIS) – A specialized DSS that supports senior level executives within the organization
Most EISs offering the following capabilities;

• Consolidation – involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information
• Drill-down – enables users to get details, and details of information
• Slice-and-dice – looks at information from different perspectives

ARTIFICIAL INTELLIGENCE [AI]

Phili Lumish said that competing in the internet arena is competing with the entire world rather than a store down the block or a few miles away.

•  Intelligent Systems are various commercial applications of artificial intelligence. 
•  Artificial inteligence(AI) simulates human intelligence such as ability to reason and learn.

There are many categories of AI systems:

1. Expert System
2. Neural Networks
3. Genetic Algorithms
4.  Intelligent agents

.

Chapter 8 - accessing organizational information_data warehouse

Data warehouse – a logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making tasks

The primary purpose of a data warehouse is to combined information throughout an organization into a single repository for decision-making purposes – data warehouse support only analytical processing

DATA WAREHOUSE MODEL

Extraction, transformation, and loading (ETL) – a process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse.

Data warehouse  then send subsets of the information to data mart.

Data mart – contains a subset of data warehouse information

MULTIDIMENSIONAL ANALYSIS AND DATA MINING 













In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows.
Dimension – a particular attribute of information.

Cube – common term for the representation of multidimensional information

• Once a cube of information is created, users can begin to slice and dice the cube to drill down into the information.
• Users can analyze information in a number of different ways and with number of different dimensions.

MULTIDIMENSIONAL ANALYSIS AND DATA MINING


Data mining – the process of analyzing data to extract information not offered by the raw data alone. Also known as "knowledge discovery" – computer-assisted tools and techniques for sifting through and analyzing vast data stores in order to find trends, patterns, and correlations that can guide decision making and increase understanding.

To perform data mining users need data-mining tools.

Data-mining tool – uses a variety of techniques to find patterns and relationships in large volumes of information
. Eg: retailers can use knowledge of these patterns to improve the placement of items in the layout of a mail-order catalog page or Web page.

INFORMATION CLEANSING OR SCRUBBING


An organization must maintain high-quality data in the data warehouse

Information cleansing or scrubbing – a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information
Occur during ETL process and second on the information once if is in the data warehouse

Contact information in an operational system

Standardizing Customer name from Operational Systems

Information cleansing activities

Accurate and complete information

BUSINESS INTELLIGENCE

Business intelligence – refers to applications and technologies that are used to gather, provide access, analyze data, and information to support decision making effort. these systems will illustrate business intelligence in the areas of customer profiling, customer support, market research, market segmentation, product profitability, statistical analysis, and inventory and distribution analysis to name a few

chapter 7 -Storing Organizational Information

WHAT IS INFORMATION?

Information is everywhere in an organization.

Information is stored in databases.

Database – maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses)

database include:

• Hierarchical database model – information is organized into a tree-like structure (using parent/child relationships) in such a way that it cannot have too many relationships
• Network database model – a flexible way of representing objects and their relationships
• Relational database model – stores information in the form of logically related two-dimensional tables

RELATIONAL DATABASE ADVANTAGE

Database advantages from a business perspective include

1. Increased flexibility
2. Increased scalability and performance
3. Reduced information redundancy
4. Increased information integrity (quality)
5. Increased information security

INCREASE FLEXIBILITY 

A well-designed database should:

1. Handle changes quickly and easily
2. Provide users with different views
3. Have only one physical view
4. Physical view – deals with the physical storage of information on a storage device
5. Have multiple logical views
6. Logical view – focuses on how users logically access information 

INCREASE SCALABILITY AND PERFORMANCE

A database must scale to meet increased demand,  while maintaining acceptable performance levels

Scalability – refers to how well a system can adapt to increased demands

Performance – measures how quickly a system performs a certain process or transaction

REDUCE INFORMATION REDUNCY

• Databases reduce information redundancy

Redundancy – the duplication of information or storing the same information in multiple places 

Inconsistency - one of the primary problems with redundant information

INCREASE INFORMATION INTEGRITY

Information integrity – measures the quality of information

Integrity constraint – rules that help ensure the quality of information

• Relational integrity constraint
• Business-critical integrity constraint 

INCREASE INFORMATION SECURITY

Information is an organizational asset and must be protected

Databases offer several security features including:

Password – provides authentication of the user

Access level – determines who has access to the different types of information 

Access control – determines types of user access, such as read-only access

DATABASE MANAGEMENT SYSTEM

Database management systems (DBMS) – software through which users and application programs interact with a database

DATA DRIVEN WEB SITES

Data driven Web sites – an interactive Web site kept constantly updated and relevant to the needs of its customers through the use of a database

DATA DRIVEN WEB SITE ADVANTAGE

• Development
• Content Management
• Future Expandability
• Minimizing Human Error
• Cutting Production and Update Costs
• More Efficient
• Improved Stability

DATA DRIVEN BUSINESS INTELLIGENCE

BI in a data driven web site

ENTITIES AND ATTRIBUTES

Entity – a person, place, thing, transaction, or event about which information is stored
The rows in each table contain the entities

Attributes (fields, columns) – characteristics or properties of an entity class
The columns in each table contain the attributes

KEY AND RELATIONSHIP

Primary keys and foreign keys identify the various entity classes (tables) in the database

Primary key – a field (or group of fields) that uniquely identifies a given entity in a table
Foreign key – a primary key of one table that appears an attribute in another table and acts to provide a logical relationship among the two tables


INTEGRATING INFORMATION AMONG MULTIPLE DATABASE 


Integration – allows separate systems to communicate directly with each other
Forward integration – takes information entered into a given system and sends it automatically to all downstream systems and processes
Backward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes

FORWARD INTEGRATING

BACKWARD INTEGRATING

Building a central repository specifically for integrated information

chapter 5 - Organizational Structures that Support Strategic Initiatives

- organizational structures that support strategic planning-








Chief Information Officer (CIO) – oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectives

   Broad CIO functions include:

1.Manager – ensuring the delivery of all IT projects, on time and within budget
2.Leader – ensuring the strategic vision of IT is in line with the strategic vision of the organization
3.Communicator – building and maintaining strong executive relationships

Chief Technology Officer (CTO) – responsible for ensuring the throughput, speed, accuracy, availability, and reliability of IT

Chief Security Officer (CSO) – responsible for ensuring the security of IT systems

Chief Privacy Officer (CPO) – responsible for ensuring the ethical and legal use of information 

Chief Knowledge Office (CKO) - responsible for collecting, maintaining, and distributing the organization’s knowledge

GAP BETWEEN BUSINESS PERSONNEL AND IT PERSONNEL





IMPROVING COMMUNICATION

• Business personnel must seek to increase their understanding of IT

• IT personnel must seek to increase their understanding of the business

• It is the responsibility of the CIO to ensure effective communication between business personnel and IT personnel

ETHICS AND SECURITY


Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful 

Ethics – the principles and standards that guide our behavior toward other people


Privacy – the right to be left alone when you want to be, to have control over your own personal possessions, and not to be observed without your consent

PRIMARY REASON PRIVACY ISSUES LOST TRUST FOR     E- BUSINESS

Intellectual property - Intangible creative work that is embodied in physical form
Copyright - The legal protection afforded an expression of an idea, such as a song, video game, and some types of proprietary documents
Fair use doctrine - In certain situations, it is legal to use copyrighted material
Pirated software - The unauthorized use, duplication, distribution, or sale of copyrighted software
Counterfeit software - Software that is manufactured to look like the real thing and sold as such

SECURITY

Organizational information is intellectual capital - it must be protected 

Information security – the protection of information from accidental or intentional misuse by persons inside or outside an organization

E-business automatically creates tremendous information security risks for organizations