Covers Unit IVV of MIS & EDP of MBA (UoM)

1. Introduction to MIS Transactions and Enterprise Resource Planning Technology Toolbox: Creating EDI Transactions Technology Toolbox: Paying for Transactions Cases: Retail Sales

3. Transactions and Integration Central Computer Sales Reports POS Cash Registers Customers EDI Supplier Bank Process Control Additional Stores Strategy Tactics Operations Warehouse Inventory Management CEO Information

4. Data Capture Collecting transaction data at the point of sale ensures accurate data, speeds transactions, and provides up-to-the-minute data to managers. Sales Process Control Banking and Finance Workers

5. Radio Frequency Identification (RFID) Scanner from: http://www.rfidinc.com C antenna Capacitor: collected energy Transistors: data RFID tag RFID reader Radio/microwaves Data: Alter the waves B E

6. Process Control Various Production machines: lathe, press, dryer, . .. Control Terminal Production data: Quantity Quality Time Machine status Control settings and commands

8. EDI: Proprietary Supplier Customer 1 Queries & Orders Invoices & confirmation Order Database & Accounts Customer 2 Firms must support multiple data formats and sometimes different computers for each contact. Production Database & Accounts Convert Convert

9. EDI: Standards Supplier Customer 1 Production Database & Accounts Order Database & Accounts Customer 2 Bank/EDI consolidator Convert to Standard Route Messages Messages to/from any customer Convert to Standard Convert to Standard

13. Transaction Risks payment products or services Vendor Customer Government 1. Receive payment. 2. Legitimate payment. 3. Customer not repudiate sale. 4. Government not invalidate sale. 1. Receive product. 2. Charged only as agreed. 3. Seller not repudiate sale. 4. Legal transaction. 1. Transaction record. 2. Tax records. 3. Identify fraud. 4. Track money for other cases (drugs). Credit card company accepts risks for a fee.

15. International Transaction Issues http:// worldwind.arc.nasa.gov Shipping Currencies Languages Customs and tariffs Jurisdiction for disputes Different laws and systems Verify seller and purchaser Payment methods

17. Accounting Suppliers Customers Management Shareholders Banks and Creditors Departments & Employees Sales & Accounts Receivable Produce Management Accounting Reports Produce Shareholder Reports Sales & Receivables Inventory Changes Purchases & Payables Loans & Notes Expenses Equity Shareholder Reports Management Reports Product Inventory Orders & Accounts Payable Inventory Management, & Fixed Asset & Cost Acct. Payroll & Employee Benefits Cash Management, Investments, Foreign Exchange Supply & In-process Inventory Governments Tax Filing & Planning Strategic & Tactical Planning Inventory Changes Payables Capital Acct Sales Tax Tax Filings Tax data Receivables Inventory & Assets Payroll Planning Reports Planning Data

20. Human Resources Management Management Managers Employees Customers Government Process Payroll Benefits Vacation Compile Merit Evaluations & Salary Changes Job Applicants Produce Management Employee Reports Screen Jobs & Applications Produce Government Reports Employee Data Files Employee Data Evaluations Salary Merit & Salary Sales Data & Commission Employee Data Merit Applicant Data Employee Summaries Job & Applicant Data EEO Data Government Reports Management Reports

21. Production Management Production Information System Purchase Orders Customer Order Shipping Receiving Production and Assembly Quality Quality Quality Suppliers Customers Bill of Materials Crank UL6500 Pedals LK3500 Stem UL6600 Saddle Selle …

22. Production Management Issues factories Customers or stores Multiple factories produce many items that need to be distributed to multiple stores. How do you schedule efficient production? How do you ensure the right products go to the right locations? Ask Gitano Jeans in the 1980s

23. Distribution Center Factories Customer or stores Split the mass production shipments into smaller units and distribute to stores immediately—without holding inventory. Need to match orders exactly, and carefully schedule arrival time of shipments.

24. Integrated Report Example

25. 1960s & 1970s MIS Pieces Purchasing: Orders Sales: Orders Production: MRP Marketing: Forecasts Accounting: Integrated Data Separate Reports

26. Changes weekly reports 1970s Sales Terminals Sales Terminals Central computer: create reports Manager: Integrate, graph analyze Secretary: type & revise Management weekly reports 1980s Sales Terminals Sales Terminals Central computer: create reports Manager: Integrate, graph analyze Management personal computer 1990s Sales Terminals Sales Terminals DBMS: On-line data Personal Computer Weekly reports & ad hoc queries (applications) Management query data sales data 3 reports (printed) sales data 3 reports (printed) sales data

27. Integration in 2000s Sales Terminals Sales Terminals DBMS Executive Information System Personal Computer Or PDA Or Browser Management query data Suppliers Banks Production/ Service Enterprise Resource Planning sales data

28. ERP Integration Database Headquarters (England) Database Subsidiary (Spain) Financial data General ledger Payroll … Manufacturing Product details Inventory … Use inventory item. Deduct quantity. Update inventory value. Check for reorder point. Order new item through EDI. Update Accounts payable. Project cost report. Daily production report. Weekly financial status. Cash flow. Budget versus actual cost.

40. Supply Chain Management Vendors Customers Design & Engineering Marketing Distribution Manufacturing Purchasing Administration & Management HRM Accounting Finance MIS Just-in-Time Quality control & Custom orders Quick Response Designs and Quality Mass Customization Demand-pull Design feasibility & production costs product planning partnerships & joint development partnerships & joint development planning & monitoring planning & monitoring

41. Purchasing/Logistics Buyer Suppliers Provide product details Negotiate contracts Verify orders and times Correct errors Schedule delivery Monitor shipments Handle returns Monitor payments Identify product features Request for Proposal Evaluate suppliers Negotiate contract Identify exact items and costs Correct errors Receive products Match receipts against order Return items Pay supplier

42. PeopleSoft SCM: Buyer/Planner

43. Supply Chain: Purchasing

44. The Role of XML Buyer Supplier ERP: Oracle ERP: SAP Messages and data <xml> <order> … </order> </xml>

46. CRM: Sales Management

47. PeopleSoft CRM: Salesperson Perspective

48. PeopleSoft CRM: Customer Perspective

50. Digital Dashboard Example http:// www.corda.com/examples/go/ddash/front.cfm Charts Gauges Icons Tickers Exceptions Drill-down links

51. Digital Dashboard http://www.microsoft.com/business/casestudies/dd/honeywell.asp Stock market Exceptions Plant or management variables Equipment details Products Quality control Plant schedule

53. Executive IS Production Distribution Sales Central Management Executives Data Data Sales Production Costs Distribution Costs Fixed Costs Production Costs South North Overseas Production: North Item# 1995 1994 1234 542.1 442.3 2938 631.3 153.5 7319 753.1 623.8 Data for EIS Data Data

54. Audits and Sarbanes-Oxley Financial Statements Bank Cash Inventory Sales Customer Inventory Some financial numbers are tied to the outside world. Validate these to anchor the statements.

55. Technology Toolbox: Selecting an ERP System Customize applications, convert data, restructure company operations, define new processes and train employees. Implementation Product demonstrations, ratings, and site visits. Demos and Selection Identify business requirements. Detailed list of specifications, unit goals, and critical features. Evaluation criteria. Requirements Gathering Initial vendor list and basic features (hardware platform, fees, internationalization, vendor size and stability, industry-specific support and so on.) Initial Planning Estimate costs, establish objectives, select team Initiation Goals and Outputs Planning Stage

56. Quick Quiz: Selecting an ERP System 1. Assume you work for a mid-size construction firm that does about 30 percent of its work internationally. Find at least three ERP vendors and outline the features they provide. 2. Assume you work for a large retail clothing firm with stores in most U.S. states. Identify the specific accounting and financial features you would want in an ERP system. 3. Assume you work for a regional manufacturer that makes parts for cars. Explain how you would select and evaluate an ERP system. Find an example of a system that would work.