MANAGING

INFORMATION
TECHNOLOGY
FIFTH EDITION

CHAPTER 6

ENTERPRISE SYSTEMS
E. Wainright Martin  Carol V. Brown  Daniel W. DeHayes
Jeffrey A. Hoffer  William C. Perkins
 APPLICATION AREAS
 Interorganizational Systems
 e-Business applications
 B2C – link businesses with their end
consumers
 B2B – link businesses with other
business customers or suppliers
 Electronic data interchange (EDI)
systems

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 APPLICATION AREAS
 Intraorganizational
Systems
 Enterprise systems
– support all or most
of the organization

 Managerial support
systems – support a
specific manager or
group of managers

© 2005 Pearson Prentice-Hall Chapter 6 - 3

Figure 6.1 Types of Application Systems Page 182
 CRITICAL CONCEPTS
Batch Processing versus Online Processing

Batch Processing – group (or batch) of

transactions are accumulated, then
processed all at one time

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Figure 6.2 Batch Processing (simplified) Page 183
 CRITICAL CONCEPTS
Batch Processing versus Online Processing

Online Processing – each transaction is

entered directly into computer when it
occurs

© 2005 Pearson Prentice-Hall Chapter 6 - 5

Figure 6.3 Online Processing Page 183
 CRITICAL CONCEPTS
Batch Processing versus Online Processing

 Interactive system – a fully functional

online system where computer quickly
provides a user response

 In-line system – provides for online

data entry, but processing of
transactions deferred for batch
processing

© 2005 Pearson Prentice-Hall Chapter 6 - 6

Figure 6.1 Types of Application Systems Page 183
 CRITICAL CONCEPTS
Functional Information Systems

 Functional information systems – information

systems framework based on organization’s
primary business functions

Example
Business Functions

Production Marketing Accounting Personnel Engineering

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 CRITICAL CONCEPTS
Vertical Integration of Systems
Example Sales System
 Vertically integrated Top Management
Long-term trend analysis
information system –
serves more than one Middle Management
Weekly data analysis to
vertical level in an track slow-moving items
organization or industry and productive salespeople

Produce invoices

Capture initial sales data

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 CRITICAL CONCEPTS
Distributed Systems and Client/Server Systems

 Distributed systems – mode of delivery where

processing power is distributed to multiple
sites, which are then tied together via
telecommunication lines
 Client-server system – a type of distributed
system where processing power is distributed
between a central server computer and a number
of client computers (usually PCs)

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 CRITICAL CONCEPTS
Client/Server Systems

Client Server Middleware

 Handles user  Runs on bigger  Software to

interface machine support clients
 Accesses  Handles data and server
distributed storage for interaction
services through applications …
 Microsoft
Windows 2003
a network  Databases
Server
 Web pages
 Novell NetWare
 Groupware
 UNIX, Linux

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 CRITICAL CONCEPTS
Client/Server Systems

 Two-tier configuration  Three-tier configuration

Client Client

Server Application Server

Database Server

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 CRITICAL CONCEPTS
Client/Server Systems

 Fat client/thin server – most processing done

on client

 Thin client/fat server – most processing done

on server

Note:
 Web and groupware servers usually thin clients
 Database servers usually thin servers

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 TRANSACTION PROCESSING
SYSTEMS
 Process thousands of transactions each day
in most organizations
 Examples: sales, payments made and
received, inventory shipped and received,
paying employees
 Typical outputs: invoices, checks, orders,
reports
 Critical to business operations
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 TRANSACTION PROCESSING
SYSTEMS
Payroll System

© 2005 Pearson Prentice-Hall Chapter 6 - 14

Figure 6.4 Components of a Payroll System Page 187
 TRANSACTION PROCESSING
SYSTEMS Order Entry System

© 2005 Pearson Prentice-Hall Chapter 6 - 15

Figure 6.5 Online Order Entry System Page 188
 ENTERPRISE RESOURCE
PLANNING SYSTEMS
 Also include transaction processing systems
 Set of integrated business applications
(modules) that carry out common business
functions:
General ledger, accounts payable, accounts
receivable, material requirements planning, order
management, inventory control, human resources
management

 Usually purchased from software vendor

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 ENTERPRISE RESOURCE
PLANNING SYSTEMS
 How they differ:
1. ERP modules are integrated
2. ERP modules reflect a particular way of
doing business

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 ENTERPRISE RESOURCE
PLANNING SYSTEMS
 Choosing right software and implementation
difficult and expensive
 Requires large investment of money and
people resources
 Leading ERP software vendors:
 SAP
 PeopleSoft, Inc. (bought J.D. Edwards)
 Oracle
 Baan
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 DATA WAREHOUSING
 Is the establishment and maintenance
of a large data storage facility
containing data on all (or at least
many) aspects of the enterprise
 Provides users data access and
analysis capabilities without
endangering operational systems

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 DATA WAREHOUSING
 Establishing a data warehouse:
 Is time-consuming and expensive
 Requires software tools to:
1. Construct warehouse
2. Operate warehouse
3. Access and analyze data from the warehouse

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 DATA WAREHOUSING

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Figure 6.8 Key Elements of Data Warehousing Page 193
 CUSTOMER RELATIONSHIP
MANAGEMENT
 CRM system – provides integrated approach
to all aspects of company-customer interaction
 Marketing
 Sales
 Support

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 CUSTOMER RELATIONSHIP
MANAGEMENT
CRM market segments:
 Traditional out-of-the-box CRM
 Traditional CRM with templates for specific vertical
industries
 Traditional out-of-the-box CRM with application
development hooks
 Industry-specific vertical CRM packages
 Custom solutions from vertical systems integrators

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 OFFICE AUTOMATION
Office automation – a set of office-related applications that
may or may not be integrated into a single system

 Electronic mail
 Work processing
 Voice mail
 Copying
 Desktop publishing
 Electronic calendaring
 Document imaging
 Document preparation, storage, and sharing

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 OFFICE AUTOMATION
Electronic Mail

 Variants of e-mail:
 Electronic bulletin boards
 Listservs
 Computer conferencing
 Chat rooms
 Instant messaging (IM)

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 Future Developments

© 2005 Pearson Prentice-Hall Chapter 6 - 26

Figure 6.9 Office of the Future Network Page 198
 GROUPWARE
Groupware – industry term that refers to
software designed to support groups by
facilitating:
• collaboration
• communication
• coordination

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 GROUPWARE
Typical Features:
 Electronic mail  Meeting support systems
 Electronic bulletin boards  Learning management systems
 Computer conferencing
 Workflow routing
 Electronic calendaring
 Group scheduling
 Electronic forms
 Sharing documents  Desktop videoconferencing
 Electronic whiteboards  Instant messaging

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 GROUPWARE
Software vendors:
 Lotus Notes
 Novell GroupWise
 Microsoft Exchange
 Oracle Collaboration Suite
 Thruport Technologies’ HotOffice
 Groove Network’s Groove Workspace

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 (Copyright © 2004 IBM Lotus Software. Lotus Notes is a registered trademark of IBM Lotus Software. Used with permission
of IBM Lotus Software.)

© 2005 Pearson Prentice-Hall Chapter 6 - 30

Figure 6.10 Lotus Notes® Welcome Page Page 203
 INTRANETS
Intranet – a network operating within an organization that
employs the TCP/IP protocol used on the Internet

 Advantages:
 Implementation is relatively easy
 E-mail and document sharing available to all in
the organization
 Web browser acts as “universal client” that works
with heterogeneous platforms
 Little, if any, user training required
 Low cost

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 INTRANETS
Portal – software that provides intranets with a structure
and easier access to internal information via a Web
browser

Extranet – an Internet-based application that permits key

trading partners to access another organization’s intranet

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 FACTORY AUTOMATION
Factory automation – involves numerically controlled
machines, which use a computer program or a tape with
punched holes, to control movement of tools on machines

Material requirements planning (MRP) – uses data input to

produce a production schedule for the factory and a
schedule of needed raw materials

Computer-integrated manufacturing (CIM) – includes MRP

functions, but also has the compute carry out the
schedules through control of various machines involved

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 FACTORY AUTOMATION

© 2005 Pearson Prentice-Hall Chapter 6 - 34 Table 6.1 Abbreviations Used Page 208
in Factory Automation
 FACTORY AUTOMATION
Engineering Systems
 Computer-aided design (CAD) – use of two and three-
dimensional computer graphics to create and modify
engineering designs
 Computer-aided engineering (CAE) – system that analyzes
functional characteristics of a design and simulates the product
performance under various conditions
 Group technology (GT) – systems that logically group parts
according to physical characteristics, machine routings, and
other machine operations
 Computer-aided process planning (CAPP) – systems that plan
the sequence of processes that produce or assemble a part

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 FACTORY AUTOMATION
Manufacturing Administration

 Manufacturing resources planning (MRP II)

 A system that usually has three components:
1. Master production schedule
2. Material requirements planning
3. Shop floor control
 Attempts to implement just-in-time (JIT) production
 Does not directly control machines on the shop floor
 An information system that tries to minimize inventory
and employ machines efficiently and effectively

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 FACTORY AUTOMATION
Manufacturing Administration

 Supply chain management (SCM)

 Systems to deal with distribution and transportation of
raw materials and finished products throughout the
supply chain
 Are often interorganizational

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 FACTORY AUTOMATION
Factory Operations

 Computer-aided manufacturing (CAM) –

use of computers to control manufacturing
processes
 Series of programs to control
automated equipment on shop floor
 Includes guiding vehicles to move
raw materials and finished products
 Requires a lot of input from other
systems

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 FACTORY AUTOMATION
Robotics

Robotics – a branch of artificial intelligence (AI) where

scientists and engineers build machines to accomplish
coordinated physical tasks like humans do

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