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Convener: Houman Younessi 1-860-548-7880 youneh@rpi

Information Systems Spring 2011. Convener: Houman Younessi 1-860-548-7880 youneh@rpi.edu. Business Effectiveness. Managing Risk. Reducing Uncertainty. Production Support. Integration. Integration. Legal. Marketing. Human Resources. IT. Production. Facilities and logistics.

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Convener: Houman Younessi 1-860-548-7880 youneh@rpi

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  1. Information Systems Spring 2011 Convener: Houman Younessi 1-860-548-7880 youneh@rpi.edu

  2. Business Effectiveness Managing Risk Reducing Uncertainty Production Support Integration

  3. Integration Legal Marketing • Human Resources IT Production Facilities and logistics Finance

  4. 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.

  5. Integration Requires: Communication and Coordination

  6. Challenges to Information Based Integration Heterogeneity - Conceptual - Linguistic - Technological Volume Access

  7. Heterogeneity Solutions: - Monolithic Business Application Framework - Open Standards/Architecture

  8. EnterpriseResourcePlanningSystems 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

  9. 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

  10. 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 Potential for: One “language”, One system, One vendor

  11. 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

  12. 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

  13. 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

  14. Some ERP Providers and Products 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

  15. Some ERP Providers and Products Microsoft Corporation: World’s largest software manufacturer with a wide array of products including ERP. Product: Microsoft Dynamics

  16. Some ERP Providers and Products Some other providers: Sage MAS 500 – by The Sage Group SSA ERP LN by SSA Global Technologies NetERP by NetSuite Inc. SYSPRO by Syspro Inc.

  17. Examples: Hospital Auto-manufacturer

  18. Some Technical Issues with ERP Problems 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

  19. Open-Architecture Open 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

  20. 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.

  21. (Open) Service-Oriented Architecture Essential Principles: Compliance to standards (both de facto and actual) Componentization Service identification Interoperability Service Categorization Modularity Granularity Reuse

  22. (Open) Service-Oriented Architecture Architectural Principles: Services are: Contract-based Encapsulated Loosely Coupled Abstract Autonomous State-less Composible (Granular)

  23. Advantages • Macro (service) level Reuse • Possible legacy system integration • Third party systems (e.g. suppliers) integration • Does not lock-in the user • Cost of acquisition • Tailorable (the user chooses the best product for the service)

  24. Disadvantages • Needs know-how and coordination to install and integrate • Lots of tailoring effort required • Support issues – Passing the buck • Tuning issues – Efficiency (component architecture mismatch)

  25. Volume Data Storage Data Transfer Data Manipulation Development

  26. Data Storage/Transfer

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

  28. Data Storage/Transfer

  29. Data Manipulation Moving from database querying to : • Data mining • Graphical data (e.g. Geographical) • Voice data

  30. 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

  31. Access Availability • Data • Communication • Service Security

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