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Chapter 4: Database Processing
Q1 What Is the Purpose of Database?
- The purpose of a database is to keep track of things that involve more than one theme - Lists that involve a single theme can be stored in a spreadsheet - Lists that involve multiple themes require a database
Q2 What Does a Database Contain?
- Database: a self-describing collection of integrated records - Byte: a character of data - Columns (or fields): a group of bytes - Rows (or records): a group of columns - Table (or file): a group of similar rows - A database is a collection of tables PLUS relationships among the rows in those tables, PLUS special data called metadata - Databases are normally stored on magnetic disks
Relationships Among Records
- Key: a column or group of columns that identifies a unique row in a table - Every table must have a key - Foreign keys: a column or groups of columns used to represent relationships. Values of the foreign key match values of the primary key in a different (foreign) table - Relational database: database that carries its data in the form of tables and that represents relationships using foreign keys
Metadata
- Metadata: data that describe data. - Metadata are always a part of the database - To find out what a database contains, just look at the metadata
Chapter 10: Database Design
Q1 How Does Email Travel?
- Key concept is divide and conquer - All of the work is divided into categories, and the categories of work are arranged into layers
Q2 What Is a Communications Protocol?
- Protocol: a standardized means for coordinating an activity between two or more entities - Humans use social protocols - Communications protocol: A means for coordinating activity between two or more communicating computers. o Two machines must agree on the protocol to use and they must follow that protocol as they send messages back and forth o Because there is so much to do, communications protocol are broken up into levels or layers
Q3 What Are the Functions of the Five TCP/IP—OSI Layers?
- Layered protocols (protocol architectures): Different ways of arranging the layers of communication protocols for transmission of data across networks o Ex: OSI, TCP/IP - International Organization for Standardization (ISO) developed the Reference Model for Open Systems Interconnection (OSI) protocol that has seven layers. - Internet Engineering Task Force (IETF) developed the Transmission Control Program/Internet Protocol (TCP/IP) architecture a four-layered scheme. - The Internet uses a five-layer blend of both architectures called the TCP/IP—OSI architecture
Layer 5
- Email program operates at Layer 5 - Most likely uses a protocol called Simple Mail Transfer Protocol (SMTP) - Other Layer-5 protocols: Hypertext Transfer Protocol (HTTP) is used for the processing of Web pages. - Web ≠ Internet - The Web is a subset of the Internet; consists of sites and users that process the HTTP protocol - The Internet is the communications structure that supports all application-layer protocols, including HTTP, SMTP , and other protocols - File Transfer Protocol (FTP) : an application-layer protocol that can be used to copy files from one computer to another - THREE IMPORTANT TERMS:
Layers 1 and 2
- Basic computer connectivity is accomplished using Layers 1 and 2 of the TCP/IP—OSI architecture - Computing devices called switches facilitate that data communication - A program implementing a Layer-2 protocol will package each of your packets into **frames
- Frames:** containers used at Layers 1 and 2 o Segments Packets Frames
Q4 How Does the Internet Work?
Network Addresses: MAC and IP
- Programs that implement Layer 2 protocols use physical addresses, or MAC addresses - Programs that implement Layer 3, 4, and 5p protocols use logical addresses, or IP addresses
Physical Addresses (MAC Addresses)
- Every network device has a NIC for accessing the network - Each NIC has a given address; this address is the device’s physical address or MAC address - NO two NICs will ever have the same MAC address - MAC addresses are used within networks at Layer 2 of the TCP/IP—OSI model
Logical Addresses (IP Addresses)
- Internets, the Internet, and many private networks use logical addresses or **IP addresses
- IP addresses** are NOT permanently associated with a given hardware device o They CAN be reassigned to another computer, router, or another device. - If a company, i.e. IBM, changes the device (router) that receives the request when people type www.ibm.co m, the network administrator only needs to assign IBM’s IP address to a new router, instead of all users changing the IP address associated with www.ibm.com
Public Versus Private IP Addresses
- Two kinds of IP address exist o Public IP address es o **Private IP addresses
- Public IP addresses** are assigned to major institutions in blocks by the Internet Corporation for Assigned Names and Numbers (ICANN) - Each IP address is unique across all computers on the Internet - Private IP addresses are used within private networks and internets - Private IP addresses are controlled by the company that operates the private network on the internet
Dynamic Host Configuration Protocol
- When you plug your computer into a network, a program in the operation system will search that network for a **DHCP server
- Dynamic Host Configuration Protocol (DHCP):** computer or router that hosts a program - When the program finds such a device, your computer will request for a temporary IP address from the DHCP server - The IP address is loaned to you while you are connected to the LAN - When you disconnect, the IP address becomes available and the DHCP server will reuse it - Within a private network , administrators can either: o Assign private IP addresses manually to computers that operate Web servers or other shared devices for which it is desirable to have a fixed IP address o Assign IP addresses using DHCP
Using TCP/IP—OSI Protocols Within the Hotel
Q3 What Are the Functions of Operations Applications?
- Operation activities concern the management of finished-goods inventory and the movement of goods from that inventory to the customer - Operation applications : applications that maintain data on finished goods inventory and the movement of goods from inventory to the customer o Especially prominent for non-manufacturers, such as distributers, wholesalers, and retailers
Q4 What Are the Functions of Manufacturing Applications?
- Manufacturing applications : applications that support one or more aspects of manufacturing processes, including planning, scheduling, inventory integration, quality control, and related processing.
Inventory Applications
- Inventory applications : support inventory control, management, and policy o Control: inventory applications track goods and materials into, out of, and between inventories o Inventory tracking requires items be identified by a number (UPC barcode) or RFIDs - Inventory-management applications use past data to compute stocking levels, reorder levels, and reorder quantities in accordance with inventory policy - 2 schools of thought in modern operations management for inventory policy o “Inventories are assets” Large inventories are beneficial = increase sales by offering greater product selection and availability o “Inventories are liabilities” Keep inventories as small as possible (if possible, eliminate completely) Just-in-time (JIT) inventory policy : have production inputs (raw materials & work-in-process) delivered to the manufacturing site just as they are needed o Wal-Mart uses both Has large inventories in stores Minimizes all other inventories in its warehouse and distribution centers
Manufacturing-Planning Applications
- In order to plan materials for manufacturing, it is necessary to record the components of the manufactured items - Bill of materials (BOM): list of the materials that comprise a product
- Compensation o Payroll o Vacation, health, and benefits o Retirement plans and stock options o Employee contributions - Assessment o Job requirements o Performance evaluations - Development and training o Development programs o Training classes - HR planning o Standards, including job classification, skill requirements, and pay standards o Staff planning
Q6 What Are the Functions of Accounting Applications?
- Treasury management o Manages retained earnings, dividends payments, and long-term financing (equity offerings and borrowing) - Cash management o Helps the company manage inflows and outflows of cash; prepares company’s cash budget; arranges for any needed external financing - Accounts payable o Tracks amounts that the company owes to its supplies. Schedules payments - Accounts receivable o Tracks amounts owed to the company by its customers. Manages collections - General ledger o Shows balances in all asset, liability, and equity accounts - Financial reporting o Keeps records and reports financial results to investors, creditors, and other external users (e.g., government regulators) - Cost accounting o Determines, for internal users, how much it costs the company to provide specific products or services - Budgeting o Assists management in quantifying goals for revenues and expenses; tracks progress toward meeting those goals
Q7 What Are the Problems of Functional Processes?
- Because they operate in isolation from one another, they create islands of automation that lead to problems - Data is duplicated o Why? Because each functional application has its own database - Disjointed processes o Why? When applications are isolated o If supporting applications are separated, it will be difficult for the two activities to reconcile their data and the approval will be slow o Consequence: lack of integrated enterprise information - Limited information and lack of integrated information o With isolated functional processes, data will reside in two different databases and will be difficult to integrate - Isolated decisions lead to organizational inefficiencies o When using isolated functional applications, a process can make decisions based only on the data is has - Increased expense - Problems can be solved by cross-functional processes
- Because all customer data reside in one location, CRM processes can be linked to one another
Q4 What Are the Functions and Characteristics of Enterprise Resource
Planning (ERP) Applications?
- Enterprise Resource Planning (ERP) applications: Cross-functional, enterprise-wide applications that integrate the primary value-chain activities with the functions of human resources and accounting - ERP integrates the primary value chain activities with human resources and accounting. - ERP systems are truly enterprise-wide - ERP systems track customers, process orders, manage inventory, pay employees, and provide general ledger, payable, receivables, and other necessary accounting functions. - ERP is the ultimate in cross-functional systems
ERP Characteristics
- ERP takes a cross-functional, process view of the entire organization o the entire organization is considered a collection of interrelated activities and cross- functional processes - True ERP is a formal approach that is based on documented, tested business models - Process blueprint: in an ERP product, a comprehensive set of inherent processes for organizational activities - Organizations MUST adapt their processing to the ERP blueprint - With ERP systems, organizational data are processed in a centralized database o Makes it easy for authorized users to obtain needed information form a single source - DISADVANTAGES OF ERP : o Process of moving from separated, functional applications to an ERP system is difficult , challenging , and slow o Switch to ERP is costly (new hardware and software, developing new procedures, training employees, converting data, and other developmental expenses)
Benefits of ERP
- Since the processes in the business blueprint have been tried and tested over hundreds of organizations, the processes are effective and are often very efficient. - Organizations that convert to ERP do not need to reinvent business processes o Instead they gain the benefit of processes that have already been proved successful - By taking an organization-wide view, many organizations find they can reduce their inventories o Better planning = no need to maintain large buffer stocks o Items remain in inventory for shorter periods of time - ERP helps organizations reduce lead times
o More efficient processes and better information = organizations respond more quickly orders = faster delivered goods
- All data is readily accessible (customer, order, product, etc., data is stored in one place) - Can produce and sell the same products at lower costs due to smaller inventories, reduced lead times, and cheaper customer support o Results in less costly customer service - Can produce and sell same products at lower costs due to smaller inventories, reduced lead times, and cheaper customer support - Bottom-line? Higher profitability
How Is an ERP System Implemented?
- (1) Model the current business process o Managers and analysts compare processes to ERP blueprint processes to note differences o Company must eliminate differences by changing existing business process to match the ERP process or by altering the ERP system - (2) Implement the system o Before implementation, users must be trained on the new processes, procedures, and use of the ERP system’s features and function o Company must also conduct simulation test of new system to identify problems - (3) Organization converts its data, procedures , and personnel to new ERP system o This happens while business continues to run on old system - ALL ERP projects must have the FULL support of the CEO and executive staff o ERP crosses departmental boundaries and no single departmental manager has the authority to force an ERP implementation
Chapter 6: E-Commerce and Web 2.
Q1 How Do Companies Use E-Commerce?
- E-commerce is the buying and selling of goods and services over public and private computer networks - Merchant companies : those that take title to goods they sell o Sell services that they provide - Non-merchant companies: those that arrange for the purchase and sale of goods without ever owning or taking title to those goods o Sell services provided by others
E-Commerce Merchant Companies
- 3 main types of merchant companies o Business-to-consumer (B2C) e-commerce concerns sales between a supplier and a retail customer (the consumer) IS for B2C provides Web storefront by which customers enter and manage their orders i.e. Amazon.com, REI.com, and LLBean.com o Business-to-business (B2B) e-commerce refers to sales between companies Raw material suppliers use B2B systems to sell to manufacturers , manufacturers use B2B systems to sell to distributers , distributers…etc. o Business-to-government (B2G) refers to sales between companies and government agencies
Non-Merchant E-Commerce
- Most common: auctions and clearinghouses - E-commerce auctions match buyers and sellers by using an e-commerce version of a standard auction o i.e. eBay - Clearinghouse provides goods and services at a stated price and arrange for the delivery of the goods, but they never take the title o i.e. Amazon.com - Another type of clearinghouse is electronic exchange that matches buyers and sellers o Similar to stock exchange o Sellers offer goods at a given price through the electronic exchange and buyers make offers to purchase over the same exchange o i.e. priceline.com
Q2 How Does E-Commerce Improve Market Efficiency?
- E-commerce leads to disintermediation , the elimination of the middleman. - E-commerce also improves the flow of price information o As a consumer you can go to a number of Web sites that offer product price comparisons o This allows you to pay the lowest price possible - From seller’s standpoint, e-commerce produces information about **price elasticity
- Price elasticity:** measures the amount that demand rises or falls with change in prince
Q3 What Economic Factors Disfavor E-Commerce?
- Companies need to consider the following economic factors: o Chanel conflict o Price conflict o Logistics expense o Customer-service expense - Channel conflict: in e-commerce, a conflict that may result between a manufacturer that wants to sell products directly to consumers and the retailers in the existing sales channels - Price conflict: in e-commerce, a conflict that may result when manufacturers offer products at prices lower than those available through existing sales channels
Chapter 14: Interorganizational
Processes: Supply Chain Management
Q2 What Is a Supply Chain?
- Supply chain: a network of organizations and facilities that transforms raw materials into products delivered to customers o Customers order from retailers, who order from distributors, who order from manufacturers, who order from suppliers. - Supply chain also includes transportation companies, warehouses, and inventories and some means for transmitting messages and information among the organizations involved. - Because of disintermediation, not ever supply chain has all of these organizations - The term chain is misleading. At each level, an organization can work with many organizations both up and down the supply chain. - The only source of revenue in a supply chain is the customer.
Q5 What Is the Bullwhip Effect?
- Bullwhip effect: phenomenon in which the variability in the size and timing of orders increases at each stage up the supply chain, from customer to supplier - The bullwhip effect is a natural dynamic that occurs because of the multistage nature of the supply chain - To eliminate bullwhip effect: give all participants in the supply chain access to consumer- demand information from the retailer o Each organization can plan its inventory or manufacturing based on the true demand, instead of the demand from the only party that offers money
