1 review for exam 3 bus3500 - abdou illia, spring 2005
TRANSCRIPT
1
REVIEW FOR
EXAM 3
BUS3500 - Abdou Illia, Spring 2005
2
Information Systems For E-
Business
Part 1
3
What technologies would helpimplement your E-Business model?
What technologies would take care of my concerns?
What kind of issues/concernsyou have to deal with?
Who are you? How far you can go digital?- What product/service?
- How customers find, purchase, pay prod./serv.- How product/service are delivered?
Who are your customers?
E-BusinessTriangle
4
E-Business TechnologiesWeb design
TCP/IPJava
FirewallsElectronic Payments,
Online BillingEncryption
E-Business IssuesCopyright
PrivacySecurity
Intellectual PropertyTaxation
TrustJurisdiction
E-Business modelsB2BB2CC2C
E-Gvt: G2B, G2C
E-BusinessTriangle
5
Components of E-Business Each component could be Physical or Digital. The extent to which a Business is an e-Business depends on
the extent to which the components are digital.
Processes: Process of finding the product, purchasing and paying.
6
E-Business Models Business-to-Consumer – B2C
Business sells product directly to the consumer.
Business-to-Business – B2B Businesses sell to other businesses.
Consumer-to-Consumer – C2C Consumers sell directly to other consumers.
7
B2C Models Subscription
Consumers pay to have regular access to site. Consumersreports.com
Online storefront Web site acts as intermediary between
manufacturer and consumer. Amazon.com
8
B2C Models (continued)
Bricks-and-clicks Combines a traditional retail outlet with an
online storefront CircuitCity.com
Advertising Sell advertising space on web site to other
companies Sports.yahoo.com
9
B2C Models (continued)
Internet presence Use web presence to provide information about
products and services Exxon.com
Intermediary New types of intermediaries connect buyers
and sellers E-Trade.com
10
B2B Models B2B is much larger than B2C
Size estimates range from $543 Billion to $6.8 Trillion Increase 50% per year
Information exchanges Exchange business documents over the Internet EDI via the Internet
Direct sellers Direct sales model, direct to other businesses
Dell Premier pages Cisco
New intermediaries Virtual hubs match buyers and sellers
E-Hospitality
11
C2C Models Online garage sales Online auctions
Allows consumers to buy and sell goods with other consumers
EBay.com
C2C services Sell expertise directly to other customers Keen.com
Online communities Allow people with similar interests to come together Chat rooms Discussion boards
12
E-Government Business Models Government-to-citizen (G2C)
Provide government services to citizens over the Internet
Vehicle registration renewal Online voting
Government-to-business (G2B) Helps government and business work together more
efficiently Reduces paperwork and costs for business and
government
13
E-Business Issues
E-Business raises a number of difficult legal, social, and ethical issues Protection of intellectual property Taxation of e-business transactions Jurisdiction – whose laws apply when a
transaction crosses many international boundaries
Trust TRUSTe
14
Security Hackers: who attempts to gain
unauthorized access to a computer system Spoofing (spoof attacks) Denial of service attacks Distributed denial of service attacks Ping of Death attacks
15
16
Summary Questions
Malaga Notes
1) What are the three elements of the e-business triangle?
2) (a) Which business model do online auction sites use? (b) Which ones governments use?
3) (a) What is a Denial of service attack? What is a spoof attack? What is a Ping of Death attack?
4) Do Encryption protect the data stored on a server computer?
17
Information Systems For
Decision-Making
Part 2
18
The Decision-Making Process
Simon’s model of the decision-making process Intelligence Design Choice
19
Intelligence Phase Scan the environment
for a problem.
Determine if decision-maker can solve the problem. Within scope of
influence
Fully define the problem by gathering more information about the problem.
Scan Environment forproblem to be solved
or decision to be made
Data source
MIS
Problem ? END
Problem within scope of influence?
No
Yes
ENDNo
Gather more informationabout the problem
Internal & External data
20
Design Phase Develop a model of
the problem. Determine type of
model. Verify model.
Develop and analyze potential solutions.
Develop a model ofproblem to be solved
Verify that the model is accurate
Develop potentialsolutions
21
Choice Phase Select the solution to implement.
More detailed analysis of selected solutions might be needed.
Verify initial conditions. Analyze proposed solution against real-world
constraints.
22
Decision Support Systems Major components
Data management subsystem Internal and external data sources
Model management subsystem Typically mathematical in nature
User interface How the people interact with the DSS Data visualization is the key
Text Graphs Charts
UserInterface
Model Management- Sensitivity Analysis- What-if Analysis- Simulation- Goal-seeking Analysis
Data Management
- Transactional Data- Data warehouse- Business partners data- Economic data
23
Modeling Tools and Techniques Simulation
Used to examine proposed solutions and their impact Sensitivity analysis
Determine how changes in one part of the model influence other parts of the model
What-if analysis Manipulate variables to see what would happen in given
scenarios Goal-seeking analysis
Work backward from desired outcome
Determine monthly payment given various interest rates.
Works backward from a given monthly payment to determine various loans that would give that payment.
24
Groups Decision Support Systems
DSS designed to help groups make decisions with the help of a Group Facilitator
GDSS Tools: Brainstorming tools: Allow users enter ideas simultaneously & anonymously
Commenter tools: Allow users to anonymously comment on others’ ideas
Categorizing tools: Groups ideas into categories
Idea-ranking tools: Ranks ideas. Identify the best ones.
Electronic-voting tools: Allow users to vote for their favorite ideas.
GDSS tools
Front Screen
25
Executive Information Systems Computer-based tool that specifically
helps top-level management make strategic decisions Processes both internal and external data Presents data in summary form Drill-down is a key feature – gives the
manager the ability to see more details when needed
26
27
KWS. Expert Systems AI systems that codify human expertise in a
computer system Main goal is to transfer knowledge from one person to
another Wide range of subject areas
Medical diagnosis Computer purchasing
Knowledge engineer elicits the expertise from the expert and encodes it in the expert system
28
Expert Systems Components Knowledge base: database of the expertise, often in IF THEN rules. Inference engine: derives recommendations from knowledge base and
problem-specific data User interface: controls the dialog between the user and the system Explanation system: Explain the how and why of recommendations
Knowledgebase
Domain Expert
Knowledge Engineer
Expertise
ExplanationSystem
InferenceEngine
UserInterface
User
System Engineer
Encoded expertise
IFfamily is albatross ANDcolor is whiteTHENbird is laysan albatross.
IFfamily is albatross ANDcolor is darkTHENbird is black footed albatross
Example of rules
29
Summary Questions
Malaga Notes
1) What are the steps of a decision making process according to the Simon’s model? Explain each step.
2) (a) What are the major components in a DSS? (b) What is the function of each?
3) (a) What is the difference between a DSS and a GDSS? What is a Group facilitator? What are the main tools used in a GDSS to help users reach a decision?
4) What is an EIS? What is the difference between a DSS and an EIS?
5) What is an Expert System? What are the main components of an Expert system? What is a knowledge engineer?
30
Information Systems For
Business Integration
Part 3
31
Business Integration?
SalesDepartment
LogisticsDepartment
ProductionDepartment
HorizontalIntegration
Vertical
Integration
Suppliers
Customers
32
Systems for Horizontal Integration Enterprise Resource Planning (ERP) system
integrate all the internal processes through a common information system
ERP system
SalesDepartment
LogisticsDepartment
ProductionDepartment Warehouse
MarketingDepartment
AccountingDepartment
CommonDatabase
Process1 Process2Process1 Process2
Process1 Process2 Process1 Process2
Process1 Process2Process1 Process2
33
Integrating Internal Processeswith ERP
ERP systems integrate all the functions and departments within an organization through a common information system
Most common modules for an ERP system Finance Manufacturing: helps from product development to production Human resources: Handles all HR functions Procurement: helps manage the purchase of office supply & raw
material Marketing: manage relationship with customers
ERP mainly used by medium and large businesses Average lifetime cost: $15 Million (in 2003) Implementation process: up to 5 years
34
Vertical Integration with suppliers
Possible problems: Raw material shortage Receiving more raw material than needed Etc.
Suppliers
Company’s Internal processes
Lack of good integration
Q: What kind of solution can provide business integration in this specific case?
SalesDepartment
Process1 Process2
DeliveryDepartment
Process1 Process2
ProductionDepartment
Process1 Process2
35
Systems for Vertical Integration Electronic Data Interchange (EDI):
Direct computer-to-computer transfer of business documents in electronic form
Suppliers
Company’s Internal processes
SalesDepartment
Process1 Process2
DeliveryDepartment
Process1 Process2
ProductionDepartment
Process1 Process2
EDI System
Value Added Network (VAN)or
Private network connection
36
Electronic Data Interchange (EDI)
Allows automatic transfer of electronic order forms and their automatic processing
EDI relies on a pair of message standards ANSI X12 – used in North America EDIFACT – international, but widely used in Europe
Advantages: Eliminates paperwork Reduces errors Speeds supply process
Disadvantages: Provides connection only between two companies Doesn’t help in supply planning.
37
Systems for Vertical Integration Supply chain management (SCM) system
provide a direct electronic connection with suppliers
Company’s Internal processes
SalesDepartment
Process1 Process2
DeliveryDepartment
Process1 Process2
ProductionDepartment
Process1 Process2
SCM System
Network connection
Suppliers
- Forecast demand- Handle purchase of supply- Manage storage + shipping
Three main functions
38
Supply Chain Management (SCM)
Stages of SCM (SC Council’s Reference Model):
1) Planning: develop and implement processes that attempt to forecast demand for products and services
Goal: Balance demand with supply of raw material
2) Sourcing: determine who should supply the items required
Goal: Be supplied on time, within budget
3) Production: make the product1) Schedule production
2) Ensure raw materials are on hand when needed
4) Product delivery (logistics) 1) Everything from receiving a customer inquiry to invoicing
2) Warehouse management is one very important factor
5) Returns: managing returns of raw materials as well as finished goods
39
Vertical Integration with customers
Possible problems: Out of product Poor customer support Etc.
Customers
Lack of good integration
Q: What kind of solution can provide business integration in this specific case?
Company’s Internal processes
SalesDepartment
Process1 Process2
DeliveryDepartment
Process1 Process2
ProductionDepartment
Process1 Process2
40
Systems for Vertical Integration Customer Relationship Management (CRM)
information system to manage all the functions that deal with customers
Goal of CRM is to increase sales and repeat business by learning the customer Remember the customer’s needs and preferences Determine the customer’s satisfaction with service Determine which customers are in the magic 20 percent
(or have the potential to become part of it)
41
CRM software CRM software modules include
Personalization Marketing automation Sales force automation Service and support
42
Summary QuestionsMalaga Notes
1) What is the difference between Horizontal integration and Vertical integration?
2) (a) What king of IS could be used for horizontal integration of business processes? (b) What kind of IS could be used for vertical integration of business processes?
3) (a) What are the common modules found in ERP systems? (b) Name few ERP software vendors. (c) What are the success factors of ERP implementation?
4) What is EDI? What kind of network connections are usually used in EDI? What is the EDI message standard used in the U.S.?
5) What is a SCM system? What is the main goal of an SCM system? What are the stages of SCM?
5) What is a CRM software used for? What is their goal?
43
Information Systems For
Strategic Advantage
Part 4
44
Value Chain?
Q1: Which internal processes are directly related to getting raw materials and transforming them into something of greater value?
Internal Business Processes
SalesProcess
ProductionProcess
PurchasingProcess
WarehousingProcess
Marketing/ServiceProcess
AccountingProcess
DeliveryProcess
Suppliers
Customers
Human ResourcesProcess
Purchase Price + Added Value + Profit Margin = Sales Price
45
Value Chain? Business processes directly related to
taking raw materials and transforming them into something of greater value.
Business processes that support Value Chain activities but do not directly add value to a product or service.
46
Inbound logistics: Purchasing and receiving raw materialsOperations: Actual conversion of raw material into finished productsOutbound logistics: Getting the product to the customersMarketing & Sales: Getting the customers buy the productsService: Keeping products work after purchase
Q2: In a Value Chain, primary activities include function such as Accounting T FQ3: The cost of implementing and managing IS is part of the value chain T F
47
Porter’s Value Chain Analysis tool Tool for analyzing internal business
activities that bring products and services to market.
Process of analyzing the activities within an organization’s value chain
Companies gain strategic value by focusing on a particular portion of the value chain
IT can help reduce the costs of these processes, thus increasing profit margins
48
Porter’s Competitive Forces Model:Dealing with external factors
Industrycompetition
Industry Competition: Rivalry with the industryNew Entrants: Potential competitors. E.g. IBM could decide to use Dell’s direct selling model
Suppliers: Bargaining power of suppliers. The more suppliers, the less their bargaining power
Customers: Bargaining power of customers. Individual has less bargaining power than corporations.
Substitutes: Potential for substitute products to undercut our market share.
49
Porter’s Competitive Forces Model
Five components Level of competition in industry Threat of new entrants into industry Bargaining power of customers Bargaining power of suppliers Threat of substitute products
Uses for CFM Determine company’s own position within industry Identify competitive forces and threats early Analyze industries and market segments to
determine their future prospects Possible strategic decisions based on CFM
Begin producing substitute product Exit a declining market segment
50
Summary QuestionsMalaga Notes
1) What is Value Chain? What group of activities are there in Porter’s Value Chain Analysis tool?
2) Could companies gain strategic value by focusing on only one activity in the value chain?
3) What kind of Information systems could help performing each of the primary and support activities of Porter’s Value Chain?
4) What are the possible uses of Porter’s Competitive Force Model?
10
5) What kind of Information systems could help dealing with Competitive Forces issues?
51
Managing the Development and
Purchase of IS
Part 5
52
Traditional Systems Development Life Cycle (SDLC)
Seven phases 1) Planning 5) Testing2) Systems Analysis 6) Implementation3) Systems Design 7) Maintenance4) Development
Usually complete one phase before beginning the next
Problem in later phase may require return to previous phase
Planning
Analysis
Design
Development
Testing
Implementation
Maintenance
53
SDLC: RecapSteps Key actors Tools/Techniques
1. Planning Project Manager
2. System Analysis System Analyst, Users. Interviews, observing users at work, DFD
3. System Design System analyst (or system designer)
System Flowchart, Structure chart
4. Development Programmers, database developers, network engineers
Program Flowchart, Pseudo code, programming languages, DBMS
5. Testing Development team, Users
6. Implementation Development team, Users Direct cutover, parallel conversion,pilot testing, staged conversion
7. Maintenance internal IS staff, external consultant
54
Summary QuestionsMalaga Notes
1) What is a System Development Methodology? What is it used for?
2) What are the 7 phases of the SDLC methodology?
3) What are kind of Feasibility analyses need to be performed during the Planning phase? Why is the system development schedule important?
4) What are the two steps in the Systems Analysis phase? What techniques and tools are used during the Systems Analysis phase?
5) What tools do programmers usually use during the Development phase?
6) What is the difference between the Verification and the Validation tests performed during systems testing?
55
Prototyping Actors
Development team, Users
System analyst, programmer
Users
System analyst, programmer
Identify basicrequirements
Develop aprototype
Is Usersatisfied?
Use theprototype
Revise theprototype
Operationalprototype
Develop final system(improved prototype)
YES
NO
56
Prototyping Advantages
Working model ready to use quickly Works in situation where requirements are
changing Works in situations where users cannot
explicitly express their requirements Disadvantage
Only a limited number of users involved
57
Joint Application Development (JAD)
A SDM that addresses: The limited scale of users involvement problem of Prototyping Potential implementation problem due to limited user involvement
A SDM that brings together the Development team and a significant number of users to define system requirements and develop a prototype.
58
Joint Application Development (JAD)
Identify a validsample of users
Set a JAD team(Users, IS professionals, scribe)
Run the 1st JAD session(JAD team + Facilitator)
Develop system prototype(based on agreed requirements)
Run the 2nd JAD session(JAD team + Facilitator)
Improve system prototype(based on JAD session results)
Objectives
Identify agreed systems requirements
Test the system and identify agreed changes
59
Joint Application Development (JAD) Advantages:
Helps alleviate conflicting requirements Greater user involvement leads to greater user
acceptance of final system Disadvantages
Could be expensive and time consuming
60
Rapid Application Development (RAD)
Combines JAD, Prototyping, and integrated CASE (ICASE) tools to decrease the time for systems development
ICASE tools provide code generating capability ICASE tools can produce a completed program
based on the diagrams developed by systems analysts
ICASE tools can generate table for a database based on detailed system specifications
61
Summary QuestionsMalaga Notes
1) What are the main problems associated with SDLC?
2) What is Prototyping? What are the steps of Prototyping? In what kind of situations Prototyping might be the best SDM to use?
3) What is JAD? Typically, who could be a member of a JAD team? Usually, what is the main objective of the 1st JAD session ? What is the main problem associated with JAD?
4) What is RAD? What is an ICASE tool
62
Object-Oriented Analysis and Design (OOAD)
Uses same phases as SDLC System Analysis and Design phases view system
In terms of objects (e.g. customers, employees, products) NOT in terms of processes
OOAD identifies each object in the system along with its properties (e.g. SSN, Name, address, etc. for Student) its procedures (e.g. Register for a class, Apply for graduation)
Advantages Reduces time to develop system (objects’ reuse) Can lead to high-quality systems (reuse of tested objects and
procedures)
63
Purchasing Software Commercial off-the-shelf (COTS) software
Less expensive May not contain all the needed features
Phases in COTS SDLC System planning Systems analysis Request for proposals Proposal evaluation Implementation Maintenance
}here is the difference
64
Request for Proposals (RFP) Details the requirements for the new
systems and invites interested parties to submit a proposal for the system
Sections in an RFP Summary of existing systems Specific description of the features of the new
system Proposal evaluation criteria Budget constraints Timetable for deliverables Details of other miscellaneous information
65
Request for Proposals (RFP) Summary of existing systems
Internal business processes Type of computers used etc.
Description of the features of the new system Requirements for hardware Requirements for software Requirements databases Requirements for network How many transactions per minutes? etc
Proposal evaluation criteria Features, reliability, speed, etc.
Budget constraints Maximum budget vs. No budget information
Details of other miscellaneous information Vendor’s past projects, client references, etc.
66
Evaluating Proposals Usually using a point-system
Number of points for each requirement More points to more important requirements
Evaluation approaches Specific requirements
Eliminate proposals that don’t meet requirements Compare remaining proposals
Demonstrations At vendor’s location vs. At client site
Benchmarks Running system with sample data to see how it
performs
67
Summary QuestionsMalaga Notes
1) What is the difference between OOAD and SDLC? What is an object’s property? What is a procedure? What are the main advantages of OOAD?
2) What is a COST software? How does the Traditional SDLC SDM differ from COST SDLC? In what kind of situations Prototyping might be the best SDM to use?
3) What are the common sections found in a Request For Proposals? What is a point-system for evaluating proposals? What are the common proposal evaluation approaches?