Management Information System Lect 3-Cross-Functional Enterprise System

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Cross-Functional Enterprise

System

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Introduction

Today, information system has the trend

Today, information system has the trend that

that

goes from function-centered system to

cross-functional information system.

functional information system.

Such systems support

Such systems support business processes

business processes,,

such as :

Product development

Production

Distribution

Order management

Customer support

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Collaborative System in

Manufacturing

All business processes must be s

All business processes must be supported by

upported by

cross-functional information system that

crosses the boundaries of several

crosses the boundaries of several business

business

functions.Many companies are moving one

step ahead and trying to install

step ahead and trying to install integrated

integrated

cross-functional client-server applications.

They are typically falling in these categories

They are typically falling in these categories ::

Enterprise applications integration (EAI)

Enterprise resource planning (ERP) and

Supply chain management (SCM)

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Product Development Process

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EAI (enterprise application integration

EAI (enterprise application integration) refers ) refers to theto the plans, methods, and tools aimed at modernizing, plans, methods, and tools aimed at modernizing, consolidatin

consolidating, and g, and coordinating the computer coordinating the computer application

applications in s in an enterprise.an enterprise.

Typically, an enterprise has existing legacy Typically, an enterprise has existing legacy application

applications and databases and s and databases and wants to continue towants to continue to use them while adding or migrating to a new

use them while adding or migrating to a new set of set of application

applications that exploit the s that exploit the Internet, e-commerce,Internet, e-commerce, extranet, and other new

extranet, and other new technologies.technologies.

EAI may involve developing a new total view of an EAI may involve developing a new total view of an

enterprise's business and its applications, seeing how enterprise's business and its applications, seeing how existing applicati

existing applications fit into ons fit into the new model, the new model, and thenand then devising ways to efficiently reuse what

devising ways to efficiently reuse what already existsalready exists while adding new applications and data.

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Enterprise Application Integration

Enterprise application integration (EAI) entails

integrating applications and enterprise data

sources so that they can easily

sources so that they can easily share business

share business

processes and data.

Integrating the applications and data sources

must be accomplished without requiring

significant changes to these existing

applications and the data.

Before EAI, integrating applications and data

within a corporate environment has been an

expensive and risky proposition

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Enterprise Application Enterprise

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EAI software

EAI software enables users to model the business

EAI software enables users to model the business processesprocesses involved in the interactions that should occur between business involved in the interactions that should occur between business applications.

applications.

EAI also provides middleware that performs data conversion and EAI also provides middleware that performs data conversion and coordination, application communication and messaging

coordination, application communication and messaging services, and access to the a

services, and access to the application interfaces involved.pplication interfaces involved. Thus, EAI software can integrate a variety of enterprise

Thus, EAI software can integrate a variety of enterprise

application clusters by letting them exchange data according to application clusters by letting them exchange data according to rules derived from the business process

rules derived from the business process models developed bymodels developed by users.

users.

For example, a typical rule might be :

For example, a typical rule might be : When an order is complete,When an order is complete, have the order application tell the accounting s

have the order application tell the accounting system to send aystem to send a bill and alert shipping to send

bill and alert shipping to send out the product.out the product.

EAI Software Connects Major e-Business Applications Like CRM EAI Software Connects Major e-Business Applications Like CRM and ERP

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Enterprise Application Integration

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Enterprise Application Integration

Fig. show that, how EAI software can

Fig. show that, how EAI software can integrate theintegrate the front-office and back-office applications of an front-office and back-office applications of an E-business.

business.

Here EAI Software Connects Major e-Business Here EAI Software Connects Major e-Business Applicatio

Applications Like CRM and ns Like CRM and ERP. That’s because EAIERP. That’s because EAI integrates access to the entire customer and pr

integrates access to the entire customer and productoduct data customer representative need to quickly

data customer representative need to quickly serveserve customers.

customers.

EAI also streamlines sales order processing so EAI also streamlines sales order processing so

products and services can be delivered faster. Thus, products and services can be delivered faster. Thus, EAI improves -customer and

EAI improves -customer and supplier experience withsupplier experience with the business because of its

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Supply Chain Management

What is Supply Chain ?

A Supply Chain is a network of supplier

A Supply Chain is a network of supplier,,

manufacturing, assembly, distribution, and

logistics facilities that perform the functions of

procurement of materials, transformation of

these materials into intermediate and finished

products, and the distribution of these

products to customers.

Supply chains arise in both manufacturing and

service organizations.

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Supply Chain Management

Supply

Supply Chain Chain Management Management (SCM) (SCM) is is a a systemssystems

approach to managing the entire flow of information, approach to managing the entire flow of information, materials, and services from raw m

materials, and services from raw materials suppliersaterials suppliers through factories and warehouses to the end

through factories and warehouses to the end

customer. SCM is different from Supply Management, customer. SCM is different from Supply Management, which emphasizes only

which emphasizes only the buyer-supplier relationship.the buyer-supplier relationship. All organizations have supply chains of

All organizations have supply chains of varyingvarying degrees, depending upon the size of the

degrees, depending upon the size of the organizationorganization and the type of product manufactured. These networks and the type of product manufactured. These networks obtain supplies and components, change these

obtain supplies and components, change these materials into finished products and then

materials into finished products and then distributedistribute them to the customer.

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The supply-chain is the all-inclusive set of links

into an end-to-end business process, for

example :

From the need to the fulfillment

From order to delivery

From raw materials to shipping

From order to cash

From an inquiry to a satisfactory response

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Online Transaction Processing

Transaction processing systems are also type of Transaction processing systems are also type of cross-functional information system that plays a cross-functional information system that plays a strategic role in electronic commerce. It processes strategic role in electronic commerce. It processes data resulting from business transactions.

data resulting from business transactions. Many firms are using the Internet,

Many firms are using the Internet, extranets, and other extranets, and other networks that tie them electronically to their customers networks that tie them electronically to their customers or suppliers for online transaction processing (OLTP). or suppliers for online transaction processing (OLTP). These

These real-timereal-time _{systems, which capture and process}_{systems, which capture and process}

transactions immediately, can help them

transactions immediately, can help them provideprovide superior service to customers and other trading superior service to customers and other trading partners.

partners.

OLTP systems add value to a company’s products

OLTP systems add value to a company’s products andand services, and thus give them an important way to

services, and thus give them an important way to differentiate themselves from their competitors. differentiate themselves from their competitors.

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The Transaction Processing

Cycle

Transaction processing systems capture

and process data describing business

transactions.

Then they update organizational files

and databases, and produce a variety of

information products for internal and

external use.

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A transaction processing cycle consists of

several basic activities, which involve :

Data entry activities

Transaction processing activities

Database maintenance activities

Document and report generation

Inquiry processing activities.

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Data Entry

Purpose of TPS is to capture, store and

process data pertaining to all transaction. The

input activity in TPS involves a data entry

process.

process. In

In this

this process, da

process, data

ta is captured

is captured or

or

collected by recording, coding, and editing

activities.

Trend :

Trend : Move from traditional (manual) data

Move from traditional (manual) data

entry systems toward source data automation

(automated

(automated systems).

systems). The

The reason

reason for

for this

this

trend is that direct methods are more efficient

and reliable than manual systems.

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Examples of devices used in data automation include : Examples of devices used in data automation include :

Point-of-sale (POS) transaction terminals. Point-of-sale (POS) transaction terminals. ATM (Automated Teller Machine) terminals. ATM (Automated Teller Machine) terminals. Optical character recognition (OCR) scanners. Optical character recognition (OCR) scanners.

PCs and network computers with cash drawers as intelligent POS PCs and network computers with cash drawers as intelligent POS terminals.

terminals.

Portable digital radio terminals and pen-based tablet PCs for Portable digital radio terminals and pen-based tablet PCs for remote date entry.

remote date entry.

PCs equipped with touch screens and voice

PCs equipped with touch screens and voice recognition systemsrecognition systems for data entry.

for data entry. Bar coded tags. Bar coded tags.

Magnetic stripe cards. Magnetic stripe cards.

Electronic website on the Internet. Electronic website on the Internet.

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Transaction Processing

Transaction processing systems process data in two Transaction processing systems process data in two

basic ways : basic ways :

Batch Processing :

Batch Processing : transaction data are accumulatedtransaction data are accumulated over a period of tim

over a period of time and processed periodically.e and processed periodically. Real-time Processing

Real-time Processing :: Also called onlineAlso called online processing), where data are

processing), where data are processed immediatelyprocessed immediately after

after a ta transaction ransaction occurs. occurs. All All online online transactiontransaction

processing systems incorporate real-time processing processing systems incorporate real-time processing capabiliti

capabilities. Many online systems es. Many online systems also depend on thealso depend on the capabilities of

capabilities of fault tolerant fault tolerant _{systems that can continue}_{systems that can continue}

to operate even if parts of the

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Transaction Processing Cycle

(Batch)

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Transaction Processing Cycle

(Online)

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Database Maintenance

An organization’s data must be

maintained by its transaction processing

systems so that they are always correct

and

and up-to-date.

up-to-date. Therefore,

Therefore, transaction-

transaction-processing systems update the

processing systems update the

corporate database of any organization

to reflect changes resulting from

to reflect changes resulting from day-to-

day-to-day business transactions

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Document and Report Generation

Transaction processing systems produce a variety of Transaction processing systems produce a variety of

documents and reports. documents and reports.

Examples of transaction documents include : Examples of transaction documents include :

Purchase orders Purchase orders Paychecks Paychecks Sales receipts Sales receipts Invoices Invoices Customer statements. Customer statements.

Transaction reports might take the form of a Transaction reports might take the form of a

transaction listing such as a payroll register, or edit transaction listing such as a payroll register, or edit reports that describe errors detected during

reports that describe errors detected during processing.

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Inquiry

Processin

g

Many transaction processing systems allow you to use Many transaction processing systems allow you to use the Internet, intranets, extranets, and Web browsers or the Internet, intranets, extranets, and Web browsers or database management query languages to make

database management query languages to make

inquiries and receive responses concerning the results inquiries and receive responses concerning the results of transaction processing

of transaction processing activity.activity.

Typically, responses are displayed in a variety of Typically, responses are displayed in a variety of pre-specified formats or screens. Examples of queries

specified formats or screens. Examples of queries include:

include:

Checking on the status of a sales order Checking on the status of a sales order Checking on the balance in an

Checking on the balance in an accountaccount

Checking on the amount of stock in inventory Checking on the amount of stock in inventory