1 Computer applications in the modern enterprise Επιχειρησιακές Εφαρμογές...
35
1 Computer applications in the modern enterprise Επιχειρησιακές Εφαρμογές Η/Υ Lecture 1 & 2 & 3: Introduction to Enterprise Information Systems Univ. of the Aegean Financial and Management Engineering Dpt Petros KAVASSALIS <pkavassalis@atlantis- group.gr>
-
date post
19-Dec-2015 -
Category
Documents
-
view
215 -
download
0
Transcript of 1 Computer applications in the modern enterprise Επιχειρησιακές Εφαρμογές...
1
Computer applications in the modern enterprise
Επιχειρησιακές Εφαρμογές Η/Υ
Lecture 1 & 2 & 3: Introduction to Enterprise Information Systems
Univ. of the Aegean Financial and Management Engineering Dpt
Petros KAVASSALIS<[email protected]>
What you will learn in this course
A set of fundamental concepts and frameworks for understanding the potential impact of information technology (IT) on business strategy and structure Computers and Information Systems (IS) The business value chain Business integration through Enterprise Application Integration
Information Systems in practice: How does the modern enterprise use “Business Intelligence” (BI) systems to improve decision-making Methods and BI examples “Hands-on” experience: create business reports by using Eclpise BIRT Reporting Tool (
http://www.eclipse.org/birt/phoenix/)
Who am I?
PhD in Economics and Management (Univ. Paris Dauphine & Ecole polytechnique)
Research experience Ecole polytechnique, Paris MIT Center of Technology Policy and Industrial Development, MIT
CTPID (MIT Internet Telecommunications Convergence Consortium)
Current positions Univ. of the Aegean (FME): Assoc. Professor RACTI: Director of ATLANTIS Group
Students evaluation
Class Participation (20%)
+ Assignments (20%)
+ Final Exam (60%)
My expectations from students [I copy a colleague I respect a lot…]
“Computer applications in the modern enterprise” is practical (with “hands-on” examples) but also intellectually challenging
I'm not a formal person and will be as accessible as I can to all of you (through e-mail) Official office hours are proposed as Friday, from 12:00 to 15:00h
But my informality doesn't mean I'm casual about what goes on in my class…
I want from my students to avoid missing lectures and actively participate in the practical work (if yes: there is compensation)
Layers of a computer organization
User (User Interface / UI)
Application (Algorithms expressed in High Level Language)
Database
System software (Compiler, OS, etc.)
Hardware
Computers are everywhere:
@home – @business
Computers are pervasive in today's firms Investment in computers is for many firms the largest capital
investment, often exceeding 50% of capital expenditure Computers generate value via digitization
Enterprise
Applications
Databases
digitalinformation
Information Systems: more than computers
<[email protected]> 10
An Information System (IS) is a set of people, procedures and resources that collects data which it disseminates and transforms
It is a system of communication between people and machines (computers)
Data transformationand dissemination
ISKnowledgeData Information
Person’sprior learning
and experienceSource: U. Fuller (2008)http://www.cs.kent.ac.uk/teaching/08/modules/CO/3/21/lectures.html
<[email protected]> 11
Information Systems (IS)
An Information System (IS) [source Wikipedia] is the system of persons, data records and activities that process the data
and information in a given organization, including manual processes or automated processes. Usually the term is used erroneously as a synonym for computer-based information systems, which is only the Information technologies component of an Information System
The study of Information Systems originated as a sub-discipline of computer science, in an attempt to
understand and rationalize the management of technology within organizations. It has matured into a major field of management, that is increasingly being emphasized as an important area of research in management studies, and is taught at all major universities and business schools in the world. Today, Information and Information technology have become the fifth major resource available to executives for shaping an organization, alongside people, money, material and machines.
Many companies have created a position of Chief Information Officer (CIO) that sits on the executive board with the Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO) and Chief Technical Officer (CTO).The CTO may also serve as CIO, and vice versa…
Enterprise Information Systems
Information technology is the hardware and software a business uses to achieve its objectives
An information system consists of components that support decision making and control, and help with analysis, visualization, product design and creation and management of operations and processes
<[email protected]> 13
<[email protected]> 14
Data versus Information
Data is one or more symbols that are used to represent something (technically speaking, they are streams of raw facts representing events and occurrences). They may or may not mean something to the observer. Give examples of data 6,602,224,175
Information is data that has been processed to have meaning and value to the recipient. It refers to data shaped into a meaningful and useful form.
<[email protected]> 15
About data… you know something
New concepts in this course Information and Knowledge
<[email protected]> 16
(Business) Information is…
See New York City website: CPR Agency Performance Reporting http://
www.nyc.gov/html/ops/cpr/html/about/about.shtml
Digital Information is a key business resource
(Business Digital) Information is data that are processed to be useful Provides answers to "who", "what", "where", and "when" questions
Fuels firms’ operational life and can be the critical factor in determining the success or failure of a business
Information has enabled radically lower cost structures, new levels of customer service, new products, new markets etc
Needs to be managed correctly Managing computer-generated information differs from handling manually
produced data. Information is:o Stored in relational databaseso Used to understand relations: information becomes evident when we organize the
clean raw data into charts, summaries, averages and ranked lists that help us understand the problem and make decisions
<[email protected]> 17
IS: Categorization
Transaction Processing Systems (TPS) Office Automation Systems (OAS) Knowledge Work Systems (KWS) Management Information Systems (MIS) Decision Support Systems (DSS) Expert Systems (ES) Executive Support Systems (ESS) Group Decision Support Systems (GDSS) Computer-Supported Collaborative Work Systems
(CSCWS)
<[email protected]> 18
A list with no end…
New technologies, such as ecommerce, Enterprise or Enterprise Resource Planning (ERP), Customer Relationships Management (CRM), Business Process Management Systems (BPMS), Document Management Systems (DMS) etc. are being integrated into traditional systems and so on… E-commerce uses the Web to perform business activities Enterprise Resource Planning (ERP) has the goal of integrating many
different information systems within the corporation, using a “single” software Customer Relationships Management (CRM) supports customer information
handling Business Process Management Systems (BPMS) is software that is Is driven
by explicit “process representations” to coordinate the enactment of business processes
Document Management Systems (DMS) provide an information for document storage, versioning and collaborative authoring
<[email protected]> 19
The role of ISs in the modern enterprise
Information systems provide value in organizations by supporting organizational (or business) objectives Achieving operational excellence Managing business processes Developing new products and services Attaining customer intimacy and service Improving decision making Promoting competitive advantage Ensuring survival through change management
<[email protected]> 20
Firms, Functions and Information Systems
Organizations are complex systems composed of interrelated and interdependent subsystems (Functional Areas)
Information Systems support the operation of these “interrelated and independent” enterprise functions
Information Systems are described as either open, with free flowing information, or closed with restricted access to information.
Information Systems usually extend beyond enterprise frontiers to support e-business activities
<[email protected]> 21
<[email protected]> 23
IS relate to firm’s value chain
Value chain The enterprise’s activity breaks down to different business functions
with the objective to analyze their contribution to market success Enterprises’ value chains interconnect each other
UPS: a brief overview
1. Headquarters: Atlanta, GA
2. Company Profile: The company is the world's largest package delivery company and a leading global provider of specialized transportation and logistics services
3. 2000: UPS had grown to become the world’s largest integrated package delivery company, delivering an average of 13.6 million packages a day sent by 1.8 million shippers to 7 million consignees
4. UPS employs approximately 359,000 people in 200 countries around the world
5. Core functional units include U.S. operations, International Operation (both of which had regional offices as well), Sales and Marketing, Finance, Legal, Human Resources, and UPS Airlines
6. UPS always emphasized efficiency in its delivery services. But it had not always emphasized IT in the delivery of its services.
7. This came in late 80s and 90s, through a massive investment program of digitization
<[email protected]> 25Case: http://dspace.mit.edu/bitstream/handle/1721.1/1572/United+Parcel+Service+4356-01.pdf?sequence=1 Visit: http://www.ups.com/ (country: Greece)
IT@UPS (1)
Introductory case: package tracking
We thought, “Why do they care about tracking? We know we deliver them all. It’s really only a creature comfort, because we deliver every package every day. We’re so effective that there’s no reason to track these packages.”
Mike Eskew, Vice Chairman and Executive Vice President
<[email protected]> 26
IS@UPS (2)
In 1985 The company was generating revenues of about $8 billion, the corporate IT unit
numbered approximately 100 people and had a budget of approximately $50 million (total IT spending was about $75 million)
Between 1986 and 1996 UPS Invested more than$11 billion in information technology Growing the IT unit to more than 4,000 people by 1997
Package tracking has been the locomotive for IT development (due to the competitive pressure) “Look, we don't have anything in place to do tracking. We have no network. We have no
databases. We have no repository for packaging. We are several years away from a sophisticated tracking system”, Frank Erbrick, CIO
By 1990 UPS had a global network called UPS Net, three centralized databases (people,
customers, packages), and a centralized data processing facility It began to build applications around this infrastructure, starting with package tracking
and billing
<[email protected]> 27
IS@UPS: Phase 1 (80s and 90s)
The centralized IT infrastructure supports deployment of enterprise-wide applications In 1993 UPS introduced the DIAD 4 (Delivery Information Acquisition
Device)o Captured a customer signature with every delivery and uploaded data in
real time to the package information database. The device was estimated to save each driver thirty minutes per day by automatically summarizing the day’s results
o By capturing delivery data on every package, UPS enhanced its package database with information that it could use to better understand the profitability of individual customers and packages
o This information could be used to make routing and pricing decisions, and, ultimately, to provide its customers with information on their individual shipping habits
<[email protected]> 28
IS@UPS: Phase 2 (90s up to today)_1
In the mid-1990s The company assigned a small team to study Web technologies, and
UPS became one of the first companies to create its own web page e-commerce
o 80% of UPS’ revenues were generated by businesses shipping goods to other businesses and individual customers. If businesses increasingly used the Internet to sell directly to end customers rather than to wholesalers and distributors, the Internet would prove to be a business opportunity
UPS’ goals in e-commerce were to enable more business and to establish a branded presence in global commerce solutions. From the beginning, management believed that electronic linkages with customers would allow UPS to get more deeply into their customers’ businesses.
<[email protected]> 29
IS@UPS: Phase 2 (90s up to today)_2
To establish tighter linkages with customers, UPS developed tools that could be embedded into customers’ applications Tracking
o The IT unit built a web front-end onto the existing tracking system as well as an API (what is an API?) that individual companies or vendors could integrate into their applications
Putting the tracking tool on the UPS web site generated immediate benefits by reducing call center traffic… Only that?
“We’ve gotten into customers’ systems and shown that we can save them money, because if your customer calls and asks a question about your order, nine times out of ten, customer service can’t answer it. They have to call shipping and shipping often calls somebody else. So now that one call is generating a minimum of two other calls. If we assume the $2.00 rule, now you’ve got $6.00 in cost, where if I can give you a tracking number when you order—which we can do in our system—and send you to our page, you can self -service. So the customer gets better service.”, Joe Pyne, Senior VP, Marketing and Corporate Development
<[email protected]> 30
IS@UPS: Phase 2 (90s up to today)_3
Although many customers were able and willing to integrate UPS’ tracking API into their home-grown software, many others purchased software, including ERP systems (what is it?) To meet the needs of these customers, UPS established alliances with key
vendors (Oracle, Peoplesoft, Harbinger, IBM, SAP built the UPS tracking API into their software)
o UPS followed three principles in developing alliances with software vendors: The APIs would be developed by UPS They would be embedded into the software of the alliance partner The service would be branded—when individual customers accessed UPS systems, the
UPS logo would be on their screenso “A lot of vendors wanted us to pay them to get the tools into their software, and we
said no, we’re giving you the value of our brand. We’re increasing the functionality. Your customers will see greater value in what you’re offering”, Joe Pyne
o Open standards (please comment it) [More on Open Standards: T. McGrath, 2009, Open Standards make for better business]
<[email protected]> 31
IS@UPS: Phase 2 (90s up to today)_4
New Services Following the launch of the Tracking API, UPS introduced a Rates and
Services tool that allowed UPS customers to link their own customers to a menu of UPS shipping options and costs
o By late 2000, UPS had six OnLine Tools available to customers for downloading, and had compiled a list of 30 services, some functional, others informational, that the company intended to make available through UPS Online Tools
In addition to its OnLine Tools, UPS developed a wide range of web-supported products and services
o UPS Document Exchange allowed firms to transfer large electronic files in a secure, encrypted environment, with full visibility real-time tracking and confirmation of delivery.
o UPS Returns Services supported the return process for shippers who wanted to make their customers’ return process hassle-free
o UPS shippers could enter package information on-line and receive the same services as firms that had downloaded the OnLine Tools
<[email protected]> 32
Successful outcome
These products and services were intended to bring UPS deeper into its customers’ businesses (!) and increasingly provide global commerce solutions
By mid-2000 More than 50,000 firms had downloaded UPS’ OnLine Tools and integrated
them into their shipping or accounting applicationso On December 19, 2000, UPS received 6.5 million tracking requests, approximately
double the number of tracking requests on the busiest day in 1999o In 1995, UPS had received only 100,000 tracking requests during the entire month
of Decembero “The surge in online tracking requests is a clear indication of the rapidly growing
use of Internet technology, by UPS and its customers, to manage the “supply chains” of everyone from Fortune 500 companies to individual consumers.”, UPS Press Release
<[email protected]> 33
New business opportunities
UPS e-Venture UPS believed that the Internet offered new opportunities to provide
global commerce solutions for its customers. To identify these “out of the box” opportunities, UPS e-Ventures, a wholly owned subsidiary of UPS
UPS e-Logistics Provided a complete menu of “behind the scene” services that would
manage the entire back-end logistics process from the time an order was placed on a customer’s web site to the time the order was delivered. Services included warehousing, inventory management, order fulfillment (pick, pack and ship), shipping and delivery, management reporting, returns management, customer care, and telephone support
<[email protected]> 34
IT development: prioritize
Modularity and re-usability With the Internet, tracking was the first application, and that was just reusing
mainframe-based technology? (what is it?). We wrote an interface module that was used originally to interface customer service to our tracking environment. Then we extended it to the Internet, and then extended it for IVR (what is it?). It's just a query entrance, so basically here’s the API, do a query, submit this data. It will go out, peruse all the databases in two different data centers, pull the data together, present it back in this file format, and your application just uses it.”, Jim Medeiros, UPS IS
IT focus on supporting cross-functional processes within the firm Customer Relationship Management Customer Information Management Package Management Product Management
<[email protected]> 35
