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REVIEW FOR

EXAM 3

BUS3500 - Abdou Illia, Fall 2008

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The Internet and eBusiness

Part 1

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Brief history of the Internet

1969 The Defense Advanced Research Projects developed ARPANET, the precursor of the Internet

1971 Ray Tomlison invents e-mail1979 USENET newsgroups created at Duke University

and the University of North Carolina1984 Domain Name System (DNS) established1991 Tim Berners-Lee creates the World Wide Web1994 First online shopping mall, first spam email, first

pizza ordered online, first advertisement banner2000 A major denial of service attack brings down

websites such as Yahoo!, Amazon.com, and eBay2002 Denial of service attack knocks out 8/15 root DNS

servers

Make sure you know what DNS is used for.

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Webserver needs:- Network (or Server) Operating System- TCP/IP- Domain name (e.g. eiu.edu)- Internet access - IP Address (e.g. 139.67.8.3)

User PC needs:- Workstation Operating System- TCP/IP- Web browser (e.g. Internet Explorer)- Internet access (e.g. thru an ISP)- IP Address (e.g. 128.150.50.9)

Accessing the Internet (www)

NetworkWeb

Browser

Packet

Router

Packet

Route

WebserverSoftware

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Internet applications/services E-Mail File transfers Instant messaging (IM) Newsgroups Streaming audio and video Internet telephony World Wide Web (WWW) Portal

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Portal Portal

Web site that offers a broad array of resources and services; such as

email newsgroup Serach engines Online shopping malls

Example: yahoo!, msn, aol

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Summary Questions

Refers to the slide # in class posted notes

Book Notes

1) (a) Name some Internet applications/services (b) What is Instant Messaging? (c) What is a newsgroup?

9,14, 15

2) (a) What does a user PC needs for accessing the World Wide Web? (b) What is needed on the webserver side?

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3) Name some Internet connection options available for residential users and businesses.

5-6

4) What is meant by podcasting? 16

5) (a) What is an intranet? (b) an extranet? (c) a portal 18,19

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Information Systems for

Business Integration: ERP Systems

Part 2

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Business Integration?

SalesDepartment

LogisticsDepartment

ProductionDepartment

HorizontalIntegration

Vertical

Integration

Suppliers

Customers

Q: what is meant by horizontal business integration? Vertical?

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Systems for Horizontal Integration

Enterprise Resource Planning (ERP) systems integrate all the internal processes through a common

information system (or an integrated set of info systems)

ERP system

SalesDepartment

LogisticsDepartment

ProductionDepartment Warehousing

MarketingDepartment

AccountingDepartment

Process1 Process2 Process1 Process2

Process1 Process2 Process1 Process2

Process1 Process2 Process1 Process2

CommonDatabase

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ERP Components (or Modules) Two types of components

Core ERP Components Extended ERP Components

Core ERP Components Traditional components found in most ERP systems They primarily focus on internal operations

CommonDatabase

Finance &Accounting

Manufacturing*

* Also called Production & Material Management* Helps from new products development to actual production* Handles demand forecasting, production planning, production scheduling, quality control, etc.

HumanResource

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ERP Components (or Modules) Extended ERP Components

Extra components that might be included They primarily focus on external operations

CommonDatabase

CustomerRelationshipManagement

SupplyChain

Management

BusinessIntelligence1

E-Business2

1 Provide information that help users in decision-making1 Collects info used throughout the organization, organize it, and uses analytical tools to help decision-making process2 Includes e-logistics (managing transportation & storage of goods over the Internet) and e-procurement (B2B purchase & sale of supplies & services over the Internet)

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ERP Components (or Modules) ERP mainly used by medium and large businesses

Average lifetime cost: $15 Million (2003 surveys) Implementation process: up to 5 years

The largest vendors worldwide in 2005 according to Gartner Dataquest

#    Vendor  Revenue(million $) 

Market share(%)

1 SAP 4726 28.7

2 Oracle Applications* 1674 10.2

3 The Sage Group 1221 7.4

4 Microsoft Dynamics 616 3.7

5 SSA Global Technologies 464 2.8

* In January 2005, Oracle bought PeopleSoft the 3rd player until then.

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Factors in ERP System Success Active support of upper management Having the best people on the

implementation team Managing the time line well User involvement in the planning and

implementing ERP systems

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Summary QuestionsBook Notes

1) What is the difference between Horizontal integration and Vertical integration? What could be the consequences of a bad horizontal integration?

5,6

2) What kind of information system is typically used by organizations for horizontal integration?

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3) What are the core modules found in ERP systems?.? 10

4) What does the Manufacturing ERP component allow? Name some of the activities it handles

10

5) Name the major three ERP software vendors 12

6) What are the success factors of ERP implementation? 14

Refers to the slide # in class posted notes

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Review Questions Make sure you can answer the following

questions about ERP: Chapter 10 Review Questions available in the

Notes’ section of the course web site.

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Information Systems for

Business Integration:

EDI, SCM, CRM Systems

Part 2 (Cont.)

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Supply Chain Management SCM

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Supply Chain Supply Chain includes parties involved in the

procurement of product or raw material Upstream parties Downstream parties

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Supply Chain Management SCM SCM implies the management of

information flow between a company and upstream and downstream parties of the supply chain

Which of the following is NOT a potential benefit of SCM?

a) It helps avoid shortage of raw materialb) It could shorten the time for delivering finished

products to distributorsc) It could help organizations better forecast their

production of goods and servicesd) It could help organizations better forecast the needs of

their distributorse) None of the above

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SCM Process 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 material2) Sourcing: determine who should supply the items required

Goal: Be supplied on time, within budget3) Production: make the product

1) Schedule production2) Ensure raw materials are on hand when needed

4) Product delivery (logistics) 1) Everything from receiving a customer inquiry to invoicing2) Warehouse management is one very important factor

5) Returns: managing returns of raw materials as well as finished goods

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EDI: a SCM Technology Electronic Data Interchange (EDI):

A network technology that allows the transfer and processing of business documents (usually orders) between a company and its suppliers

Suppliers

Company’s Internal processesSales

DepartmentProcess1 Process2

DeliveryDepartment

Process1 Process2

ProductionDepartment

Process1 Process2

EDI System

Value Added Network (VAN)or

Private network connection

EDI Sys.

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EDI: SCM Technology EDI documents must be formatted according

to specific 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 Limits freedom of comparing prices.

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SCM information system Part of extended ERP components Could be bought separately

Company’s Internal processesSales

DepartmentProcess1 Process2

DeliveryDepartment

Process1 Process2

ProductionDepartment

Process1 Process2

SCM System

Network connection

Suppliers

SCM Sys.- Forecast demand- Handle purchase of supply- Manage storage + shipping

Three main functions

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Customer Relationship Management CRM

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CRM systems CRM systems are systems that can help

manage all aspects of organizations’ relation with their customers.

Which of the following is NOT a potential benefit of CRM systems?

a) Provide better customer serviceb) Make call centers more efficientc) Help sales staff close deals fasterd) Simplify marketing and sales processese) Discover new customersf) None of the above

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Goals of CRM systems Goal of CRM is to increase sales and repeat business

by learning the customer Determine 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)

Recency, Frequency, Monetary value (RFM) at heart of CRM systems How recently a customer purchased items (Recency) How frequently a customer purchased items (Frequency) How much a customer spends on each purchase (Monetary

Value

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Summary QuestionsBook Notes

1) Is the information flow between a company and its retailers part of its supply chain?

6

2) What are the potential benefit of SCM systems? 7

3) What are the 5 stages of SCM according to the SC Council’s Reference Model?

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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.?

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5) Are SCM systems part of ERP systems? Are SCM systems sold as separate system from ERP systems? 11

5) What are the potential benefit of CRM systems? 14

5) What is the main goal of using CRM systems? What is meant by RFM?

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Refers to the slide # in posted class notes

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Review Questions Make sure you can answer the following

questions: Chapter 8-9 review Questions posted to the

Review section of the course web site.

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Managing Security

Part 3

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Best way to prepare Review the ppt notes or chapter 4 in the

book to make sure you can answer the following questions Chapter 4 Review Questions available in the

Review section of course web site Quiz 3 questions posted to the Review section of

the course web site).

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Managing the Development and

Purchase of IS

Part 4

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Systems Development Methodology? The process companies go through to

develop and maintain an information system Framework for successful IS development A System Development Methodology is used

For building a new system Or for modifying an existing system

Examples of SDM: System Development Life Cycle ￭ Prototyping Joint Application Development ￭ Rapid Application Development

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Questions Which of the following is true about SDM?

1) They provide guidelines for developing IS and maintaining them which includes upgrading and improving them.

2) SDM are needed when a brand new IS has to be developed, but you don’t need to use a SDM when it comes to modifying an existing IS.

3) When a company is engaged in developing an IS, the process involves the company’s employees who would be the future users of the IS, and IS professionals like system analysts and programmers. But it doesn’t involve the company’s management

4) All of the above

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Traditional Systems Development Life Cycle (SDLC)

Seven phases 1) Planning 5) Testing2) Systems Analysis 6) Implementation3) Systems Design7) Maintenance4) Development

Typically one phase needs to be completed before beginning the next

Problem in later phase may require return to previous phase

PlanningAnalysisDesign

DevelopmentTesting

ImplementationMaintenance

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Question In SDLC, the 7 phases are typically

followed in a sequential order, which means we don’t return to a previous phase in any circumstances

True False

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Planning Feasibility analyses

Technical Analysis Do the technologies exist to develop the system?

Economic Analysis Can the organization afford the system? Will it provide an adequate Benefit?

Operational Analysis (i.e. assessing the human element of the proposed system)

Resistance to change Organizational politics

System development schedule Is the proposed development time line realistic? Is the programming team available during Programming

step? Planning performed by Project Manager using

Search and investigation (e.g. for technical analysis step) Total Cost of Ownership analysis Project Management software

Feasibility AnalysesSystem Development Schedule

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Systems Analysis Systems analyst works with company to understand

the problem fully and to detail the requirements of the proposed system

Step 1: Analyze current system Objectives:

Understand what things are done and how (business processes) Identify any problems associated w/ current business processes

Techniques: Observe employees at work Talk to employees (potential users) Conducting interviews

Analyze current systemDefine new system requirement

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Systems Analysis Step 2: Define new system’s requirements

Main Objective: Specify What need to be done (not how to do it)

To be defined: Input requirements (nature of data, source, etc.) Processing requirements Output requirements (Types of reports, content, etc.) Storage requirements

Tools and techniques Data flow diagrams (DFD)

Start with high level process Add more levels with increased levels of detail

Computer-Aided Software Engineering (CASE) tools Software that eases the systems development process

Analyze current systemDefine new system requirements

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Data Flow Diagrams (DFD)

Data flow

Process

External Entity

Data storage

. Symbolized by an arrow.

. Shows data being passed from or to a process

. Symbolized by a rectangle or a curved rectangle.

. Action performed by people of organizational units in order to transform input into output OR Action performed by people in the organizational units to help the units achieve their objectives

Symbolized by a square, an external entity is something (person, group, department, etc.) outside the system that interacts with the system by providing input or receiving information.

Used to store data in the system. Represents a file, a database, etc.

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DFD Exercise You should be able to answer Questions 1,

2, and 3 of the Lincoln Pizza’s ordering system DFD exercise. Hardcopies were given in class. You can also get a copy in the Notes’ section or in the Review section of the course web site.

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Systems Design Using the requirements from Systems Analysis phase

to design the new or modified system. Logical systems design

Details the system’s functionality (what it should do?) Uses Structure charts to create top-down representation of

system’s modules Uses System flowcharts to show relationships between modules

Physical systems design Specifies all of the actual components (hardware, network, etc) used

to implement the logical design The design must be frozen at end of this phase to prevent the

to system grow indefinitely in terms of its scope and features Scope creep Feature creep

Performed by system designer or (system analyst in some case)

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Development Programming process is usually the most

difficult and time consuming in the Development process.

Development performed by programmers, database developers, and network engineers

Programmers use Program Development Cycle

1) Review the input, processing, output, and storage requirements2) Develop the logic of the programs (using Flowcharts and Pseudo code)3) Write the programs using code generators & programming languages4) Test and debug the programs5) Complete the programs documentation

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Development tools

Program Flowchart:

Graphical illustration of the problem-solving logic

within a programPseudocode:

English-language statements that describe the processing steps of a

program in paragraph form.

Programming languages:-Java-C++-Visual Basic-Etc.

Code generators:Software that generate programs that programmers could modify.

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Testing Programmers test modules

Do they return proper outputs? Do they handle incorrect data appropriately?

Development team do unit testing i.e. testing how modules work together

System testing (software along with database and network component) Verification: Testing system in simulated

environment with simulated data Validation: Testing system in real working

environment with real data

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Implementation Implementation strategies

Direct cutover: Quick change to new system Parallel conversion: Old and new systems used

in parallel for a while. Pilot testing: New system installed at only one

location or one department Staged conversion: Only one part of the system

installed, then another part is installed. User training

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Maintenance Maintenance counts for as much as 80%

of the total cost of an information system Tasks

Correct errors found during implementation System enhancements

Incremental upgrades Addition of major new features

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Summary QuestionsBook 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 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?

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SDLC: RecapSteps Key actors Tools/Techniques1. Planning Project Manager Project Management software,

Total Cost Ownership analysis, etc.

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 Unit testing, verification, validation

6. Implementation Development team, Users Direct cutover, parallel conversion,pilot testing, staged conversion

7. Maintenance internal IS staff, external consultant

Make sure you can answer questions about System Development (see link in Review section)