Introduction to MIS

Chapter 7 Integration of Information

Copyright 1998-2002 by Jerry Post

Introduction to MIS

Integration
Everyone in the company including managers, salespeople, and engineers need access to the same data across the organization.

Introduction to MIS

Outline
       

Business Integration Enterprise Resource Planning Customer Relationship Management Workgroups Data Warehouses Integration with Diversity Cases: Automobiles Appendix: Microsoft NetMeeting

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File: DeptStore2000.mdb File: C07E06.xls

Business Integration Example

Daily Sales Report Department Item# House 1153 5543 W.Clothing 5563 7765 9986 Shoes 1553 6673 Total Sales: February 7, 2004 Q-sold 52 13 1 4 2 2 1 Price 2.95 0.59 87.32 54.89 15.69 65.79 29.39 Value 153.40 7.67 87.32 219.56 31.38 131.58 29.39 660.30

Returned Merchandise Log February 7, 2004 Item# 1153 3353 4453 8878 Total Q 3 6 2 1 12 Price 2.95 27.59 15.95 24.95 Value 8.85 165.54 31.90 24.95 231.24

Commissions Emp# 1143 2895 4462 7893 9963 Name Jones Brown Smith Torrez Cousco Dept House M.Clothing W.Clothing Shoes M.Clothing Sales 543.95 775.35 1,544.52 876.93 589.47

February 7, 2004 Rate 5% 4% 5% 6% 5% Amount 27.20 31.01 77.23 52.62 29.47

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Integrated Report Example

Weekly Sales Analysis 2/01/04 - 2/07/04 Manager comments are written in the first ten pages, along with comments on special events. Department Analysis Dept Sales Returns Commissions House 4,113.58 25.35 205.68 W.Clothing 54,221.92 998.52 3,024.64 M.Clothing 28,664.48 356.24 1,421.58 Shoes 10,225.31 853.47 592.36 Total: 97,225.29 2,233.58 5,244.26

Net 3,882.55 50,198.76 26,886.66 8,779.48 89,747.45

Sales & Net Sales

6 4 2 House W. Cloth. M. Cloth. Shoes

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1960s & 1970s MIS Pieces

Accounting: Integrated Data Separate Reports

Marketing: Forecasts

Production: MRP Purchasing: Orders Sales: Orders

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Sales Terminals
sales data

1970s
3 reports Central Manager: (printed) computer: Integrate, graph create reports analyze

Changes
Management
weekly reports

Sales Terminals Sales Terminals

sales data

Secretary: type & revise Management

weekly reports

1980s
3 reports Central Manager: (printed) computer: Integrate, graph create reports analyze

Sales Terminals Sales Terminals

sales data

personal computer

1990s
query

Management Personal Computer Weekly reports & ad hoc queries (applications)

Sales Terminals
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DB S: On-line data
data

Integration in 2000s
Management Sales Terminals
sales data

query

DB S
data

Sales Terminals

Executive Information System Personal Computer Or PDA Or Browser

Suppliers Production/ Service Banks

Enterprise Resource Planning

Introduction to MIS

Business Integration
Design feasibility & production costs Design & Engineering

Designs and Quality product planning Marketing Quality control & Custom orders Customers

planning & monitoring Vendors

Manufacturing

planning & monitoring

Distribution Purchasing Demand-pull Mass Customization Just-in-Time

Quick Response partnerships & joint development

partnerships & joint development

Administration & Management HRM Accounting Finance MIS

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Headquarters (France)

ERP Integration
Subsidiary (Spain) Use inventory item. Deduct quantity. Update inventory value. Check for reorder point. Order new item through EDI. Update Accounts payable. Database Manufacturing Product details Inventory

Database Financial data General ledger Payroll

Weekly financial status. Cash flow. Budget versus actual cost.

Project cost report. Daily production report.

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Enterprise Resource Planning

 

Integrated systems Examples

   

International environment
     

SAP Peoplesoft Lawson J.D. Edwards Accounting Purchasing HRM Investment management

Basic features included

   

Multiple currencies Multiple languages Procedures and practices Follows local (national) rules Follows consolidation rules Example
U.S. firm with European subsidiaries. Data is entered once European reports are generated for subsidiaries following local rules Results are converted and consolidated to U.S. firm following international and U.S. rules

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SAP
 

  

Based in Germany, now worldwide Support for international transactions and multinational firms Runs on multiple database and hardware platforms Can handle large and small companies Expensive, but price is relative.

  

Financials Logistics Human resource management

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Financial Accounting
    

SAP Financials


General ledger Accounts receivable/payable Special ledgers Fixed assets Legal consolidation Investment planning/budgeting/control Depreciation forecast/simulation/calculate Overhead cost Activity based costing Product cost Profitability analysis

Treasury
   

Cash management Treasury management Market risk management Funds management Executive information system Business planning and budgeting Profit center accounting Consolidation

Investment Management
 

Enterprise Control
   

Controls
   

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SAP Logistics
        

Purchasing Materials management Manufacturing Warehousing Quality management Plant maintenance Service management Sales Distribution

Product data management

   

Master data management Design and change process Product structure Development projects Sales activities Sales order management Shipping and transportation Billing Sales information system

Sales and distribution

    

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SAP Logistics


Production planning and control

     

Project system
  

Production planning Material requirements planning Production control and capacity planning Costing Order information system Shop floor information system

 

Work breakdown structures Network planning techniques, milestones Cost, revenue, financial, schedule, and resource management Earned value calculation Project information system

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Materials management
     

SAP Logistics


Purchasing Inventory management Warehouse management Invoice verification Inventory controlling Purchasing information system Quality planning Quality inspections Quality control Quality notifications and certificates Quality management information system

Plant maintenance
    

Quality management
    

Structuring technical systems Maintenance resource planning Maintenance planning System for technical and cost accounting data Maintenance information system

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SAP Logistics


Service management
    

Integration


Customer installed base administration Service contract management Call management Billing Service information system

When the clerk enters a sale, bills are generated automatically (mail, fax, or EDI). Sales and revenue are instantly updated in financial and control modules. The sales information system and EIS provide various up-to-date views and reports.

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SAP HRM


Personnel management
      

Payroll accounting
    

HR master data Personnel administration Information systems Recruitment Travel management Benefits administration Salary administration Organization structure Staffing schedules Job descriptions Planning scenarios Personnel cost planning

Gross/net accounting History function Dialog capability Multi-currency capability International solutions Shift planning Work schedules Time recording Absence determination Error handling

Time management
    

Organizational management
    

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SAP HRM


Personnel development
    

Other features
  

Career and succession planning Profile comparisons Qualifications assessments Additional training determination Training and event management

SAP Business workflow Internet scenarios Employee self-service

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SAP Integration
 

Financial general ledger holds all base totals. Sub-ledgers are defined for important accounts
   

Simple example
  

Accounts payable Manufacturing User-defined etc.

Manufacturing uses an item from inventory The quantity on hand is updated The inventory value is automatically changed
On any sub-ledgers On the general ledger

All transactions automatically flow through

 

 

Including currency conversions Special rules can be defined

Reports are generated in any currency New orders and payments can be generated through EFT.

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Customer Relationship Management



Multiple Contact Points



The goal is to provide a single, integrated view of all customer activity, available to all employees who interact with the customer. Having better information enables workers to provide better service, meet the individual needs of each customer.

Feedback, Individual Needs, and Cross Selling



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Workgroups

Computers are increasingly used to support teamwork and workgroups. Data, comments, and analysis are created and shared through networks of computers.

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SharePoint: Discussion

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SharePoint: Survey
 

Create a new survey Add questions

  

Multiple Choice Open ended/text Selection Lists

 

Run the survey Graph the results

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Tracking Changes and Adding Discussions

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Recorded (wave) comment

Annotation
 

Insert - Comment Insert - Object - Wave Make sure you and your colleagues have a sound card and microphone. Set up and test the multimedia tools. Know what you want to say and keep it short. Video can be used also but you need a camera, video capture card, and editing software.

  

Comment

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SharePoint: Subscriptions to Monitor Changes

 

Users can subscribe to a document or a directory. They will be notified by e-mail when changes are made. Or notified with a list of changes once a day, once a week, or on whatever schedule the user selects.

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SharePoint: Routing Slip for Workflow



 

A routing slip sends documents by e-mail to each person on the list in order. The document records changes and comments. Users on the list can approve or reject changes.

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Consulting HQ California

Workgroup Example
Client HQ Connecticut

3
Finance anagement Team
Cost Analysis Costs & Budgets Changes & Costs Message Design Supplier Proposals Contact Database Cost Design Supplier Message Analyses Proposals Contact Database Cost targets & comments Changes & Suggestions

Singapore Problems & Suggestions

Design Plans

Changes & Corrections Message

Design Team

Changes

Design Project origination

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Introduction to MIS

Problems with Sharing



Same software
 

Data conversion tools weak. Exact layouts require same versions. Hardware conversions not exact. Missing devices might cause crashes.

Same environment, fonts, devices, drivers

 

  

Need access and network paths. Transmission time. Concurrency

  

Tracking. Locking. Replication.

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Data Warehouse/Legacy Systems

Data warehouse Shared access
Interdepartmental teams

Analysis tools
Data

Selected data items

Data Data Data

Decision maker manager

Sales transactions and production operations

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Integration with Diversity

PC client Unix file server IBM central computer

Radio Network Hardware compatibility: support for network connections. Software compatibility: ability to store, transmit and display data created on different machines. Salespersons laptop

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XML: eXtensible Markup Language



 

Used as a standard means to transfer data to machines with unknown capabilities. Most hardware and software can read and understand the data. The tags describe the content. Usually a separate schema file is used to describe the tags and the document structure.

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GDSS


Group Decision Support Systems

    

Brainstorming Shared access Voting Record of comments Anonymity? Typing Facilitator Costs

Drawbacks
  

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GDSS Room

Group decision support systems can be used to coordinate meetings, record notes, take votes, and encourage participation. As shown in this system by Ventana corporation, each participant enters data in a PC, with summary results displayed on the central screen.

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Copy the objects to the document. Changes to the original do not affect the copies.

Static Integration

Original spreadsheet object Original graph object

Container Document Document Static copy of spreadsheet object Static copy of graph object

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Objects are linked to the document. Document requests changes and updates copies as needed.

Dynamic Integration

Original spreadsheet object

request changes

Document Container Document

Dynamic display of spreadsheet copy

send data request changes

Original graph object

send data

Dynamic display of graph copy

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Compound Document
Database SpreadSheet

Container Document Text

Graph Image

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Dynamic Links


Advantages
 

Disadvantages
 

Data references are always up-to-date. Computer & document know the source of all components. Updates and changes are automatic, with less user training.

Moving a document forces links to be rebuilt or dropped. Cannot make radical changes to underlying components
Software upgrade problems. File deletions, moves and major alterations affect other (unknown) users.

Data changes can cause reformats that require finetuning of layouts.

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Sales

Network Links

Accounting Marketing Integrated Data

Marketing Forecast Graph

Sales Table

Cost of Goods Sold Spreadsheet

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Integration over Networks

 

Share data Support links

 

Data Software availability File Server

 

Joint Authorship Transmit reports

Server Applications

Container Document Circulated Report Computer 1 Computer 2

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Request data Send data Fill spreadsheet Data changes Send new data (1) Query to

Spreadsheet link to DBMS

Spreadsheet

request data

DBMS
(2) Send data

(3) Fill spreadsheet

data
(4) Data changes

(5) Send new data

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Microsoft Pivot Table

Sum of SalePrice ModelType SaleState Hybrid Mountain Race Road Tour Track Grand Total
    

uarter uarter , , , , , , , . . . . . . .

Month uarter , , , , , , , . . . . . . .

uarter , , , , , , , . . . . . . .

uarter , , , , , , , . . . . . . .

Grand Total , , , , , , , . . . . . . .

Data - Pivot table report. Select data using a database query (Rolling Thunder). Choose data for rows, columns and table computations (row: ModelType, SaleState; column: Month(SaleDate); Table: SalePrice. Create additional groups (Mark quarters, Data - Group and outline Group. Hide or show detail.

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Protected Changes

    

Tools - Protect the document. Save the file and allow others to make changes. Changes are automatically marked in color for each user. Tools - Unprotect the document. Tools - Track Changes - Accept or Reject Changes.

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Cases: Automobile Industry

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Cases: Ford Motor Company General Motors

www.ford.com www.gm.com

What is the companys current status? What is the Internet strategy? How does the company use information technology? What are the prospects for the industry?

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http://www.microsoft.com/netmeeting/

Appendix: Microsoft NetMeeting

Sound, Video Participants

Document Video

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Appendix: NetMeeting Chat Screen

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Appendix: NetMeeting WhiteBoard

A simple graphics tool, but it is shared by all participants. All comments and drawings are sent to the other screens.

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Appendix: NetMeeting Shared Document

Tools Protect Document Track Changes

Changes are displayed as they are typed. The owner can integrate them later.
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