Management Information System Lect 3-cross-functional Enterprise System

Cross-Functional Enterprise System

Introduction Today, information system has the trend that goes from function-centered system to crossfunctional information system. Such systems support business processes, such as : Product development Production Distribution Order management Customer support

Collaborative System in Manufacturing All business processes must be supported by cross-functional information system that crosses the boundaries of several business functions.Many companies are moving one step ahead and trying to install integrated cross-functional client-server applications. They are typically falling in these categories : Enterprise applications integration (EAI) Enterprise resource planning (ERP) and Supply chain management (SCM)

Product Development Process

Enterprise Application Integration EAI (enterprise application integration) refers to the plans, methods, and tools aimed at modernizing, consolidating, and coordinating the computer applications in an enterprise. Typically, an enterprise has existing legacy applications and databases and wants to continue to use them while adding or migrating to a new set of applications that exploit the Internet, e-commerce, extranet, and other new technologies. EAI may involve developing a new total view of an enterprise's business and its applications, seeing how existing applications fit into the new model, and then devising ways to efficiently reuse what already exists while adding new applications and data.

Enterprise Application Integration Enterprise application integration (EAI) entails integrating applications and enterprise data sources so that they can easily share business processes and data. Integrating the applications and data sources must be accomplished without requiring significant changes to these existing applications and the data. Before EAI, integrating applications and data within a corporate environment has been an expensive and risky proposition

Enterprise Application Enterprise

EAI software EAI software enables users to model the business processes involved in the interactions that should occur between business applications. EAI also provides middleware that performs data conversion and coordination, application communication and messaging services, and access to the application interfaces involved. Thus, EAI software can integrate a variety of enterprise application clusters by letting them exchange data according to rules derived from the business process models developed by users. For example, a typical rule might be : When an order is complete, have the order application tell the accounting system to send a bill and alert shipping to send out the product. EAI Software Connects Major e-Business Applications Like CRM and ERP

Enterprise Application Integration

Enterprise Application Integration Fig. show that, how EAI software can integrate the front-office and back-office applications of an Ebusiness. Here EAI Software Connects Major e-Business Applications Like CRM and ERP. That’s because EAI integrates access to the entire customer and product data customer representative need to quickly serve customers. EAI also streamlines sales order processing so products and services can be delivered faster. Thus, EAI improves -customer and supplier experience with the business because of its responsiveness.

Supply Chain Management What is Supply Chain ? A Supply Chain is a network of supplier, manufacturing, assembly, distribution, and logistics facilities that perform the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these products to customers. Supply chains arise in both manufacturing and service organizations.

Supply Chain Management Supply Chain Management (SCM) is a systems approach to managing the entire flow of information, materials, and services from raw materials suppliers through factories and warehouses to the end customer. SCM is different from Supply Management, which emphasizes only the buyer-supplier relationship. All organizations have supply chains of varying degrees, depending upon the size of the organization and the type of product manufactured. These networks obtain supplies and components, change these materials into finished products and then distribute them to the customer.

The supply-chain is the all-inclusive set of links into an end-to-end business process, for example : From the need to the fulfillment From order to delivery From raw materials to shipping From order to cash From an inquiry to a satisfactory response

Online Transaction Processing Transaction processing systems are also type of cross-functional information system that plays a strategic role in electronic commerce. It processes data resulting from business transactions. Many firms are using the Internet, extranets, and other networks that tie them electronically to their customers or suppliers for online transaction processing (OLTP). These real-time systems, which capture and process transactions immediately, can help them provide superior service to customers and other trading partners. OLTP systems add value to a company’s products and services, and thus give them an important way to differentiate themselves from their competitors.

The Transaction Processing Cycle Transaction processing systems capture and process data describing business transactions. Then they update organizational files and databases, and produce a variety of information products for internal and external use.

A transaction processing cycle consists of several basic activities, which involve : Data entry activities Transaction processing activities Database maintenance activities Document and report generation Inquiry processing activities.

Data Entry Purpose of TPS is to capture, store and process data pertaining to all transaction. The input activity in TPS involves a data entry process. In this process, data is captured or collected by recording, coding, and editing activities. Trend : Move from traditional (manual) data entry systems toward source data automation (automated systems). The reason for this trend is that direct methods are more efficient and reliable than manual systems.

Examples of devices used in data automation include : Point-of-sale (POS) transaction terminals. ATM (Automated Teller Machine) terminals. Optical character recognition (OCR) scanners. PCs and network computers with cash drawers as intelligent POS terminals. Portable digital radio terminals and pen-based tablet PCs for remote date entry. PCs equipped with touch screens and voice recognition systems for data entry. Bar coded tags. Magnetic stripe cards. Electronic website on the Internet.

Transaction Processing Transaction processing systems process data in two basic ways : Batch Processing : transaction data are accumulated over a period of time and processed periodically. Real-time Processing : Also called online processing), where data are processed immediately after a transaction occurs. All online transaction processing systems incorporate real-time processing capabilities. Many online systems also depend on the capabilities of fault tolerant systems that can continue to operate even if parts of the system fail.

Transaction Processing Cycle (Batch)

Transaction Processing Cycle (Online)

Database Maintenance An organization’s data must be maintained by its transaction processing systems so that they are always correct and up-to-date. Therefore, transactionprocessing systems update the corporate database of any organization to reflect changes resulting from day-today business transactions

Document and Report Generation Transaction processing systems produce a variety of documents and reports. Examples of transaction documents include : Purchase orders Paychecks Sales receipts Invoices Customer statements. Transaction reports might take the form of a transaction listing such as a payroll register, or edit reports that describe errors detected during processing.

Inquiry Processing Many transaction processing systems allow you to use the Internet, intranets, extranets, and Web browsers or database management query languages to make inquiries and receive responses concerning the results of transaction processing activity. Typically, responses are displayed in a variety of prespecified formats or screens. Examples of queries include: Checking on the status of a sales order Checking on the balance in an account Checking on the amount of stock in inventory

Online Transaction Processing Systems

Change Management Process