Lecture 6 ISM - © 2010 Houman Younessi Convener: Houman Younessi 1-860-548-7880 [email protected] Information Systems Spring 2011

Lecture 6

ISM - © 2010 Houman Younessi

Convener:

Houman Younessi

1-860-548-7880

[email protected]

Information SystemsSpring 2011

Lecture 6


Element Concept Information Category Information System

Risk Uncertainty Economic EnvironmentInternal control

ForecastingControl

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Business Effectiveness

Production Support

Managing Risk

Reducing Uncertainty

Integration

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Marketing

Produ

ctio

nHuman

Resources

Finance

Legal

IT

Facilities and logistics

Integration

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Note:

Each business component may itself be looked at as a production process. As such, it is internally subject – or can be subject at least – to the provisions of process efficiency maximization discussed in

the previous lecture.

This lecture is about how to reduce risk and be effective as a cohesive and integrated collection of these individual elements.

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Integration Requires:

Communication

and

Coordination

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Heterogeneity

- Conceptual

- Linguistic

- Technological

Volume

Access

Challenges to Information Based Integration

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Heterogeneity

Solutions:

- Monolithic Business Application Framework

- Open Standards/Architecture

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Enterprise Resource Planning Systems

ERP systems integrate information systems requirements of an organization. ERP systems usually use a single, unified database as the backbone to store data for the various system modules.

Manufacturing: Engineering, Bills of Material, Scheduling, Capacity Planning, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Flow Optimization, Forecasting

Supply Chain Management: Inventory, Order Entry, Purchasing, Product Configuration, Supply Chain Planning, Supplier Scheduling

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Financials: General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets Projects: Costing, Billing, Time and Expense, Activity Management Human Resources: Resources, Payroll, Training, Time & Attendance, Benefits Customer Relationship Management: Sales and Marketing, Commissions, Service, Customer Contact and Call Center support

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Advantages:

Enables Integrated design (Process efficiency)

Integration from customer requirement through to need fulfillment

Full revenue cycle management

Integrated and context based logistics management

Integrated accounting and control

Relatively secure

One “language”, One system, One vendor

Potential for:

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Disadvantages:

Expensive to acquire – Cost structures sometimes unrelated to business size.

Difficult to properly fit into the needs/philosophy of the organization. Limited and difficult customization.

Re-engineering of business processes to fit the “philosophy" (Usually a discrete manufacturing view of the world) prescribed by the ERP system may lead to a loss of competitive advantage.

Difficult/Complex to implement

As good as the weakest link

Lock-in issues. Once committed to a technology/vendor, almost impossible to switch

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Disadvantages:By blurring lines of responsibility, can cause problems with accountability, efficiency, and transparency.

Off-the-rack suit, may or may not fit your body, your style, or your budget

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Some ERP Providers and Products

SAP AG: World’s third largest software company headquartered in Walldorf Germany. Almost exclusively specializes in ERP solutions.

Products:

SAP R/3

mySAP All-in-one

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Oracle Corporation: World’s leading vendor of database management systems. Also develops and sells ERP and associated systems that rely heavily on database technologies.

Products:

Peoplesoft

Oracle e-Business Suite

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Microsoft Corporation: World’s largest software manufacturer with a wide array of products including ERP.

Product:

Microsoft Dynamics

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Some other providers:

SSA ERP LN by SSA Global Technologies

NetERP by NetSuite Inc.

Sage MAS 500 – by The Sage Group

SYSPRO by Syspro Inc.

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Examples:

Hospital

Auto-manufacturer

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Some Technical Issues with ERPProblems of Integration with legacy systems

Problems of fit and integration into existing business processes

Unit rather than service orientation

Not all components of a single ERP package are at the same level of utility

Difficult to integrate with supplier systems if not the same ERP

An open-architecture service-oriented solution is needed

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Open-ArchitectureOpen architecture refers to use of open-standard hardware and software to construct information systems. Open standard refers to products that are constructed using protocols and interfaces that are non-proprietary and according to a publicly available and widely adopted definition.

An architecture that enables the creation of information systems that are built by combining loosely coupled and interoperable components

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Service-Oriented Architecture

A style of potentially multi-tier computing that helps share logic and data among multiple applications and usage modes. These usage modes are defined or expressed as “services” and are aligned with the requirements of system users.

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(Open) Service-Oriented Architecture

Essential Principles:

Interoperability

Modularity Granularity

Componentization

Reuse

Service identification

Service Categorization

Compliance to standards (both de facto and actual)

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Encapsulated Loosely Coupled

Contract-based

Abstract Autonomous

State-less

Composible (Granular)

(Open) Service-Oriented Architecture

Architectural Principles:

Services are:

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Advantages

1. Macro (service) level Reuse

2. Possible legacy system integration

3. Third party systems (e.g. suppliers) integration

4. Does not lock-in the user

5. Cost of acquisition

6. Tailorable (the user chooses the best product for the service)

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Disadvantages

1. Needs know-how and coordination to install and integrate

2. Lots of tailoring effort required

3. Support issues – Passing the buck

4. Tuning issues – Efficiency (component architecture mismatch)

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Volume

Data Storage

Data Transfer

Data Manipulation

Development

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Kilobyte (KB) 210 103 Three pages typical manuscript

Megabyte (MB) 220 106 War and Peace

Gigabyte (GB) 230 109 A small library (1000 books)

Terabyte (TB) 240 1012 A major university library

Petabyte (PB) 250 1015 All books ever written in the world

Exabyte (EB) 260 1018 All written words ever

Zettabyte (ZB) 270 1021 ?

Data Storage/Transfer

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iPod 10 MB per minute

SETI 1.8 GB per minute

Internet 1.5 TB per minute

Next time your bank say that they hold and manage over 2 terabytes of data, ….. Have respect


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Typical lap-top hard-disk 40-100 Gigabytes

National Bank Database 1-2 Terabytes

All databases in NYC 3-5 Pentabytes

All data in electronic form 5 Exabytes

Domestic Cable BB ~200 KB per second

Wi-Fi network ~1.4 – 2.5 MB per second

T3 ~5 MB per second

OC3 ~20 MB per second

OC768 ~5 GB per second

Intercontinental FO trunk ~50-100 GB per second


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Data Manipulation

Moving from database querying to :

- Data mining

- Graphical data (e.g. Geographical)

- Voice data

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Development

Volume of work!!!

Despite common belief there is a severe shortage of SE/IS/IT staff world-wide.

- Open-sourcing

- Out-sourcing

- Off-shoring

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Access

Availability

Security

- Data

- Communication

- Service

Documents

Lecture 6 ISM - © 2010 Houman Younessi Convener: Houman Younessi 1-860-548-7880 [email protected] Information Systems Spring 2011