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Chapter 7 Integration of Information

I. Integration of information in business systems 1. What Is Meant by the Concept of Integrating information in business? Hardware platforms, software platforms, applications, versions, and networks. Companies were divided into separate departments and managed independently.

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Chapter 7 Integration of Information

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  1. I. Integration of information in business systems • 1. What Is Meant by the Concept of Integrating information in business? • Hardware platforms, software platforms, applications, versions, and networks. • Companies were divided into separate departments and managed independently. • Company is now integrating data for workers to share data across departments and to have a big picture about business. • What if information is not integrated? • Error • Miss the “best” decision Chapter 7 Integration of Information

  2. 2. Evolution of integrated information systems • Functional areas of business and transaction-processing systems. • Difference between a business function and a business process: business process involves several functional areas and functions within those areas. • Integrated information systems are information systems that are designed to share accurate and timely data across functional areas. Sharing data effectively and efficiently leads to more efficient business processes. • Roots of ERP (Enterprise Resource Planning System) • MRP (materials requirements planning): Plan production and raw materials by working backward from the sales forecast. 1960s-70s • EDI (avoid cost and delays resulting from paper purchase order and invoice systems) • MRP II (MRP becomes a company game for various functional areas) 1980s • ERP (an extension of MRP II) – hardware, software, and vision of integrated information systems.

  3. II. Enterprise Recourse Planning (ERP) • The primary method for ERP systems to integrate data is the use of a database with consistent data definitions. • Features and Capabilities of ERP (IBM 1972) • A standard software that integrates business functions such as accounting, human resources, purchasing/logistics, sales, production planning, and so forth. • Data to be processed interactively and to be available in real time. • Work with data on a computer screen, and not with printed output.

  4. III. Integrating information through networking • 1. What role is played by networks in integrating information in business? • The means to share data and to integrate information across the entire company or even the entire world (Internet). • The World Wide Web (WWW) technology has been integrated into new operating systems and application software. Therefor, it is easier to share data through Web sites with users inside and outside the company. • Example: In PowerPoint, Save as HTML command under File menu.

  5. 2. What are problems with sharing information and solutions? • Different version of software - conversion tools • Different font, displays, sound cards, and video driver - adjustment and conversion tools. • Access and network paths – switches for speed. • Transmission time - data compression and broadband for speed. • Concurrency problem - tracking multiple changes and lock out users.

  6. 3. Groupware and Tools for Teamwork • Networks • Conferencing systems • Collaboration tools (tracking changes, linked documents) • Coordination systems • GDSS is a type of DSS that integrates • Groupware (email, conferencing systems, collaborative authoring systems, coordination systems) • DSS capability • telecommunications

  7. IV. Data Warehouse • It contains copies of transaction data rather than the original transaction • Transactional data from a variety of sources is specifically formatted • Transactional data is specifically structured to facilitate the formation of queries and further analysis • A data warehouse can be normalized or denormalized • The purpose of the data warehouse is – query, analysis, and reporting • Making decision vs. post-decision monitoring • (Marakas, G.M. 2003, “Modern Data Warehousing, Mining, and Visualization”)

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