Lecture Management information systems: Solving business problems with information technology – Chapter 7

Introduction to MIS
Chapter 7
Integration of Information

Copyright © 1998-2002 by Jerry Post

Introduction to MIS

1


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

 

Introduction to MIS

 

2

Outline









 

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

Introduction to MIS

 

3


File: DeptStore2000.mdb File: C07E06.xls

Business Integration Example
Daily Sales Report

February 7, 2004

Department Item#
House
1153
5543
W.Clothing 5563
7765
9986
Shoes
1553
6673

Q-sold
52
13
1
4
2
2
1

Price
2.95
0.59
87.32

54.89
15.69
65.79
29.39

Total Sales:

Value
153.40
7.67
87.32
219.56
31.38
131.58
29.39
660.30

Commissions
Emp#
1143
2895
4462
7893
9963

 

Name
Jones
Brown

Smith
Torrez
Cousco

Introduction to MIS

Dept
House
M.Clothing
W.Clothing
Shoes
M.Clothing

 

Returned Merchandise Log
February 7, 2004
Item#
1153
3353
4453
8878

Q
3
6
2
1

Total

12

Price
2.95
27.59
15.95
24.95

Value
8.85
165.54
31.90
24.95
231.24

February 7, 2004
Sales
543.95
775.35
1,544.52
876.93
589.47

Rate
5%
4%
5%
6%
5%

Amount
27.20
31.01
77.23
52.62
29.47

4


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
60000
40000
20000
0
House

 

Introduction to MIS

 

W. Cloth. M. Cloth.

Shoes

5


1960s & 1970s MIS Pieces
Accounting:
Integrated Data
Separate
Reports

Marketing:
Forecasts

Production:
MRP
Purchasing:
Orders

 

Introduction to MIS

Sales:
Orders

 

6

Sales
Terminals

Sales
Terminals

sales
data

Central
computer:
create reports

sales
data

 

Management
Manager:
Integrate, graph
analyze

weekly reports

Secretary:
type & revise

1990s
query
sales
data

Introduction to MIS

Management

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

Sales
Terminals

Sales
Terminals

3 reports
(printed)

1980s

Sales

Terminals

Sales
Terminals

Changes

1970s

DBMS:
On-line data
data

 

weekly reports

personal computer

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

7


Integration in 2000s
Management

Sales
Terminals

Sales
Terminals

query
sales
data

DBMS
data

Suppliers
Production/
Service

Executive Information
System
Personal Computer
Or PDA
Or Browser

Enterprise Resource
Planning

Banks

 

Introduction to MIS

 

8


Business Integration
Design feasibility
& production costs

Design &
Engineering

Designs and Quality
product planning

planning
& monitoring

Marketing

Manufacturing

planning
& monitoring

Vendors

Distribution

Purchasing Demand-pull Mass
Customization
Just-in-Time
partnerships
& joint
development

 

Introduction to MIS

Administration & Management
HRM Accounting Finance

 

Quality control
& Custom orders

MIS

Customers

Quick
Response
partnerships
& joint
development

9

ERP Integration

Headquarters
(France)

Subsidiary
(Spain)

Database

Use inventory item.
Deduct quantity.
Update inventory value.
Check for reorder point.
Order new item through EDI.
Update Accounts payable.

Financial data
General ledger
Payroll
…

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

 

Introduction to MIS

 

Database
Manufacturing
Product details
Inventory
…

Project cost report.
Daily production report.

10


Enterprise Resource Planning



Integrated systems
Examples







SAP

Peoplesoft
Lawson
J.D. Edwards

Basic features included





Accounting
Purchasing
HRM
Investment management



International environment







Multiple currencies
Multiple languages
Procedures and practices
Follows local (national) rules
Follows consolidation rules

Example







 

Introduction to MIS

 

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

11


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.

Introduction to MIS

 





Financials
Logistics
Human resource
management

12














Investment
planning/budgeting/control
Depreciation
forecast/simulation/calculate

Controls






 

General ledger
Accounts receivable/payable
Special ledgers
Fixed assets
Legal consolidation

Investment Management




SAP Financials

Financial Accounting

Treasury







 

Cash management

Treasury management
Market risk management
Funds management

Enterprise Control






Overhead cost
Activity based costing
Product cost
Profitability analysis

Introduction to MIS





Executive information
system
Business planning and
budgeting
Profit center accounting
Consolidation

13

SAP Logistics










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



Product data management







Sales and distribution






 

Introduction to MIS

 

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

14


SAP Logistics



Production planning and
control









 

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

Introduction to MIS

 



Project system








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

15













Purchasing
Inventory management
Warehouse management
Invoice verification
Inventory controlling
Purchasing information
system

Quality management







 

SAP Logistics

Materials management

Quality planning
Quality inspections
Quality control
Quality notifications and
certificates

Quality management
information system

Introduction to MIS

 



Plant maintenance









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

16

SAP Logistics


Service management








 

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

Introduction to MIS

 



Integration






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.

17


SAP HRM


Personnel management











Payroll accounting











Organization structure
Staffing schedules
Job descriptions
Planning scenarios
Personnel cost planning








Introduction to MIS

 

Gross/net accounting
History function
Dialog capability
Multi-currency capability
International solutions

Time management

Organizational management


 

HR master data
Personnel administration
Information systems
Recruitment
Travel management
Benefits administration
Salary administration






Shift planning
Work schedules
Time recording
Absence determination
Error handling

18


SAP HRM


Personnel development








 

Career and succession
planning
Profile comparisons
Qualifications assessments
Additional training
determination

Training and event
management

Introduction to MIS

 



Other features




SAP Business workflow
Internet scenarios
Employee self-service

19


SAP Integration




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








All transactions automatically
flow through




 

Accounts payable
Manufacturing
User-defined
etc.

Including currency
conversions
Special rules can be defined

Introduction to MIS

 



Simple example






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

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

20

Customer Relationship Management


Multiple Contact Points




Feedback, Individual Needs, and Cross Selling


 

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.

Introduction to MIS

 

21


Workgroups

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

 

Introduction to MIS

 

22


SharePoint: Discussion

 

Introduction to MIS

 

23


SharePoint: Survey



Create a new survey
Add questions








 

Introduction to MIS

 

Multiple Choice
Open ended/text
Selection Lists

Run the survey
Graph the results

24


Tracking Changes and Adding Discussions

 

Introduction to MIS

 

25