Enterprise Systems Foundations

1. Enterprise Systems Foundations Objectives Business needsApplication architecture Technology perspectiveImplicationsReview questions

2. What is Business Intelligence (BI)? • According to Wiki (2013) • BI is a set of theories, methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information for business purposes. • BI can handle large amounts of information to help identify and develop new opportunities. • Making use of new opportunities and implementing an effective strategy can provide a competitive market advantage and long-term stability. • However Internet / Smart Phone age has changed the BI landscape….

3. BI landscape in the age of Smart Phones Crowd Systems & Users Crowd Data Social Network Vehicle Sensors etc. Extraction Smart Phones Web Sites Etc. Open Data Time Tables Road Displays etc. Management & Analysts Manufacturing Data, Financial Data etc. DW DB ES

4. BI solutions are offered by all main vendors • The BI share is 5-10% of the ES market • BI solutions are offered by • Large ES vendors • SAP: SAP Netweaver Business Warehouse (SAP NetWeaver BW) alias "SAP BI" • Oracle : Oracle Business Intelligence Enterprise Edition Plus (OBI EE Plus) • MS: SQL server series • Specialized vendors • SAS: integrated system of software products • Microstrategy • Open source platforms :e.g. Pentaho • Etc.

5. The BI architect • What is BI course for? • It intends to provide foundations for BI architects • BI projects require an architect • BI integrates a variety of software modules • The main BI project activity is to customize modules to user requirements • What is BI architect ? • He/she is able to model the needs of users and follows a framework • He/she is able to transform needs in a language understood by software developers • He/she is able to understand the software platforms to implement BI • He/she is NOT a pure software developer

6. Enterprise Information Modeling SIRE KPI Identification / mapping HIGO GUI Modeling GOA Our approach to BI Rep DSS Dash ES taxonomy Aggregate Strategic Level (ASL) Analytic Information Modeling DFM BI systems modelling Plan Exec Mon Ctl BI Architecture Info Rich Semantic Level (RSL) Implementation Level Software Engineering Interface (SEI)

7. Enterprise Systems Foundations Objectives Business perspective Application perspectiveTechnology perspectiveImplicationsReview questions

8. The business perspective: Enterprise Crowd Systems & Users Crowd Data Social Network Vehicle Sensors etc. Extraction Smart Phones Web Sites Etc. Open Data Time Tables Road Displays etc. Management & Analysts Manufacturing Data, Financial Data etc. DW DB ES

9. BI: scope of Enterprise BI • BI was born for sales analysis: «what we sold, where, to whom» • Enterprise has been and still is the primary target of BI • BI is a primary technology in Enterprise Systems (ES), specifically in Management Information Systems (MIS) • We here give an overview of ES

10. ES targets Enterprise governance (Strategic decisions & budget governance) Strategic Planning Management Control Operation life cycle of the enterprise Operations Control Operations Planning Operations Execution Operations Monitoring Management of enterprise related information (Execution life cycle) Information Management

11. ES for Management • Governance includes • Strategic planning, where managers decide products, markets, geography and structure of the organization • Management Control, where managers define budgets and analyze results and set appropriate corrective actions Strategic Planning Management Control Operations Control Operations Planning Operations Execution Operations Monitoring Information Management

12. Each governance level runs a three-phase control cycle (see right) Information systems support management: DSS (Decision Support Systems) help managers to define budget and plans Data Warehouse store aggregate data for management analysis Reporting Systems provide information for analysis of results ES for Management: Management Cycle • Define objectives & goals (plan) Strategic Planning Management Control Appraise results monthly (analysis) Opereations Control Operations Planning Operations Execution Opereatiions Monitoring Define corrective actions (action) Operations (Execution) Information Management

13. Figures: actual, goals Indicators Semeser 2 Annualvalues EFF BDGT ACT BDGT PROD 1 PROD 2 P&L STATEMENT Sales 2.100 2.000 4.300 4.000 1.955 2.345 Purchase 720 720 1.400 1.500 800 600 HR 850 800 1.600 1.650 900 700 EBITDA1 530 480 1.300 850 255 1.045 Depreciation 200 200 420 420 191 229 Miscellaneouscosts 200 225 400 450 182 218 Allowances 20 20 41 40 19 22 EBIT 110 35 231 74 154 77 Physicalindicators Cars shipped 1.200 1.100 2.400 2.200 1.200 1.200 Carssold 1.100 1.100 2.200 2.200 1.100 1.100 Time period Aggregate and computed information ES for Management: Reporting (example)

14. ES for Management: Reporting (example) • Reporting systems aggregate time series of elementary information • E.g. the information «Sales» of semester 2 rolls up all the invoices of the cars sold • Reporting systems enable to compare goals against actual results (e.g. budget and actual sales) where: • Actual results are extracted from operational records generated by execution activities • Goals are calculated in the planning phase of the management control cycle • Time series can be segmented by multiple views e.g.: • Product (in the example sales are segmented by Product 1 and Product 2) • Market (e.g. Sales in China, France, Italy etc.) • Customer (e.g. Sales for returning customers, for new customers etc.) • Plant (Cars produced by Shanghai plant, by Milan plant etc.)

15. ES for Management: Reporting / dashboard

16. ES for Management: DSS Strategic Planning Management Control Operations Control Operations Planning Operations Execution Operations Monitoring • Decision Support Systems • Support semi-structured decisions where the main decision variables are known and can be processed e.g.: • Budgeting systems • Financial planning • Investment analysis • Loan management • Etc. Information Management

17. ES for Management: DSS

18. ES for Operations Strategic Planning Management Control Operations Control Operations Planning Operations Execution Operations Monitoring • Nowadays ES support the whole operations cycle • Operations Planning e.g. Define the production plan of a plant • Execution: e.g. Record a car delivered, reserve a seat on a plane etc. • Monitoring: e.g. Track the position and status of a shipment • Control: e.g. Analyze the service level to the dealers Information Management

19. ES for Operations: Planning (SAP) • Planning implies • To define the objectives of an action (e.g. cars to be produced) • To identify resources needed (e.g. materials to be used) • To balance the set of resources (e.g. materials, manpower, machinery) • Planning systems improve performance of operations because • They define feasible execution • They can assure punctuality and optimal resource usage

20. ES for Operations: Planning (SAP)

21. ES for Operations: Execution (hotel booking) • Execution implies • To collect the data of the transaction to be executed • To update database accordingly • Execution systems simplify and shorten operations: • By reducing / eliminating paperwork • By coordinating interdependent tasks and activities Strategic Planning Management Control Operations Control Operations Planning Operations Execution Operations Monitoring Information Management

22. ES for Operations: Execution (hotel booking)

23. ES for Operations: Monitoring (shipping) • Monitoring implies • To track the status of a certain object or service • To undertake immediate actions in front of alarms • Monitoring systems assure the promise in the business processes e.g. • To receive on time the freight the customer ordered • To receive the car the customer ordered

24. ES for Operations: Monitoring (shipping)

25. ES for Operations: Control (Project) • Control implies • To know the status of a certain activity at a given time • To appraise results against Information Systems for Operations: Control (Project case study) • Control systems check the promise e.g. • Measure the deviance from expected results • Can identify the reasons why • Can help to findcorrection

26. ES for Operations: Control (Project)

27. ES for Operations: Information Management (BOM) • Information management implies to define data (typically master data) and parameters used in operations execution e.g.: • To define the data of raw materials • To define the layout of a warehouse • Information management improves the accuracy of execution systems e.g. • To provide more information to a patient • To provide more information on a material Strategic Planning Management Control Operations Control Operations Planning Operations Execution Operations Monitoring Information Management

28. ES for Operations: Information Management (BOM)

29. ES for operations: a real life example The whole range of Planning, Execution, Monitoring, Control activities is (and has to be) found in operations support systems as in the Materials Management example here below Strategic Planning Management Control Operations Control Operations Planning Operations Execution Operations Monitoring Information Management

30. Enterprise Systems Foundations Objectives Business perspective Application perspectiveTechnology perspectiveImplicationsReview questions

31. Introduction • In the functional perspective • We consider what ES do • We do not consider how ES is implemented • Specifically we target : • The ES functional structure (= architecture) • The taxonomy of ES processing functions • The ES information structure • The taxonomy of ES information • The approach by which ES functional characteristics are defined

32. ES: structure • An ES is a collection of functions that access databases / data warehouse to read, change, insert or delete records • Function: • A self-contained action on database that can be started independently e.g. • Book a flight • It contains a number of tasks e.g. • Log-in • Select the flight • Input personal data • Input payment data • Confirm payment • Database (DB): • Stores permanent information structured according to a predefined format (e.g. tables or cubes) • Contains a set of records, i.e. tuples e.g. a row in a relational table Function 1 Function …. Function N Database

33. ES: Function Classes • An ES includes various function classes i.e. • Installation that are used by IT professionals to install the software application • User functions that execute the activities performed by users • Administration functions that are used by professionals who are in charge of running and maintaining the application User

34. ES: information classes An ES includes a wide range of information that be classified according to its dynamic properties into the levels: Master, Event, Analysis CUSTOMER CUSTOMER ORDER PRODUCT ORDERS BY PRODUCT, CUSTOMER, TIME CALENDAR Master Information Event Information Analysis Information

35. Taxonomy of information: information levels • Master information • Describes structural properties of an object • Typically has one key • Event information • Describes properties of an event or transaction • Typically has multiple keys • Analysis information • Describes time dependent values • Typically has multiple keys

36. Taxonomy of information: information levels Customer# Customer# Customer Customer Order Product # Order# Product # Product • Records the attributes of ecah event (i.e order) • One record for each event (i.e. order) Customer# Orders by Product, Customer, Time Date# Calendar Product # Order# • Records the facts concerning a time series (eg. Quantity, Value etc.) • The time series is identified by multiple domain keys (i.e. customer, order , product) • Record structural prioperties (e.g. customer address) • Exah key identifes an individual in a given domain Date#

37. Taxonomy of information : examples in different sectors

38. ES cross-systems architecture Infobus (EAI) Transaction 1 Transaction 1 Transaction 1 Transaction …. Transaction …. Transaction …. Transaction N Transaction N Transaction N • In a very ideal world an enterprise should store all its information in one database. • However: • Over time enterprises independently implement interdependent databases • Synchronization of information becomes a critical problem • EAI (Enterprise Application Integration) enables synchronization across databases Database Database Database

39. Enterprise Systems Foundations Objectives Business perspective Application perspectiveTechnology perspectiveImplicationsReview questions

40. Introduction • The business perspective addresses WHAT enterprise domains systems should support • Business and Management Processes • Decisions • Information • The application perspective addresses WHAT systems should in terms of • Information to be stored • Processing functions to be run and related business rules • Human computer interface • The technology perspective considers HOW systems are implemented. Specifically we target : • The processing tiers • The executive architecture

41. Processing tiers : Gartner’s taxonomy • From 1992-93 systems are implemented on a client-server schema • Clients may be more or less fat • Fat clients are frequent in smart phone applications (see case study) • Slim clients are typical of large enterprise information systems e.g. CRM

42. Processing tiers : three-tier architecture • The logic tier may be implemented on multiple Application Servers • Typically Data Server is implemente on one set of machines and therefore may be the critical ring of the processing chain

43. The cross-systems architecture Transaction 1 Transaction 1 Transaction 1 Transaction …. Transaction …. Transaction …. Transaction N Transaction N Transaction N Infobus (EAI) • Over time multiple interdependent databases have been implemented in enterprises • Synchronization of information is becoming a problem • EAI (Enterprise Application Integration) enables synchronization across databases Database Database Database

44. The cross-systems architecture : Services Oriented Architecture Business Process Orchestration layer Executable image of a Business Process Services Siebel CICS … Service Platforms Applications Servers Storage

45. Enterprise Systems Foundations Objectives Business perspective Application perspectiveTechnology perspectiveImplicationsReview questions

46. Business perspective : implications for the ES architect • The architect • Understands enterprise business, organization & business processes • Analyzes business process / organization and elicits ES requirements • Has to use appropriate frameworks

47. Enterprise Systems Foundations Objectives Business perspective Application perspectiveTechnology perspectiveImplicationsReview questions

48. Review questions: technology perspective • The business perspective what the systems are for, i.e. what is the kind the support they can give to the enterprise • Illustrate the five levels of ES (strategic planning, management control, operations planning, execution, operations monitoring, operations control, information management) • Exemplify the five levels on a simple case, e.g. a car maker as VW or public body as University • The application perspective illustrates what systems do regardless their implementation. • What is the functional structure of information systems? • Information systems contain functions for users (i.e. user transactions) and functions for administration and installation. Please comment. • Illustrate the threefold taxonomy of information (Master, Event, Analysis) and list information on familiar domains e.g. University, Health Care, Bank

49. INCIDENT: Warehouse ES Architecture (deployment) The ware-house Software The company

50. Enterprise Systems Foundations Appendix 1Railways case study