Docstoc

MIS

Document Sample
MIS Powered By Docstoc
					Chapter - 4

Operations & Transactions
Branches / stores
                                Transactions
                                                                                 Banks
                                           Central Database                      Financial Institutions

                                                                  EDI/XML/WWW

                    Online/offline applications

                                                   Applications   Web services
                                                                  / Extranets     Suppliers


  •Point of Sale



                                             Internal users


Collecting transaction data at the point of sale ensures accurate data, speeds
transactions, and provides up-to-the-minute data to upper levels of MIS.
       Production Data & Process Control
                Production machinery & equipment ( on-line, off-line)




                                                                        Control settings
                                                                        and commands
Data may be
collected on-   Production data:
line or via      Quantity
media            Quality                Control/Surveillance/Audit/Monitoring
                 Time                   Terminal
                 Machine status
     Electronic Data Interchange
• Generally speaking, EDI is considered to be a technical
  representation of a business conversation between two
  entities, either internal or external.

• The EDI (Electronic Data Interchange) standards were
  designed to be independent of communication and
  software technologies.

• EDI can be transmitted using any methodology agreed to
  by the sender and recipient. This includes a variety of
  technologies, including asynchronous modem,FTP, Email,
  HTTP, MQ, etc.
          EDI: Proprietary                           Customer 1




Firms must support multiple data   Queries &
formats and sometimes different    Orders
computers for each contact.
                                                    Order
         Supplier                                  Database
                                                  & Accounts




                                   Invoices &
         Production                confirmation
          Database
         & Accounts                                Customer 2
                 EDI: Standards

                          Route
                          Messages                      Customer 1
                                             Order
  EDI consolidator                          Database
                                           & Accounts
           Messages
           to/from
           any customer
                              Production
                               Database
                              & Accounts

                                                   Customer 2


Supplier
   Partial List of ANSI X12
           Segments
104 - Air Shipment Information
110 - Air Freight Details and Invoice
125 - Multilevel Railcar Load Details
126 - Vehicle Application Advice
127 - Vehicle Buying Order
128 - Dealer Information
129 - Vehicle Carrier Rate Update
130 - Student Educational Record (Transcript)
140 - Product Registration
           EDI On The Internet
• Advantages                 • Disadvantages
  – Low cost.                  – No service guarantee.
  – Anyone can connect.           • Delays might be
                                    unacceptable.
  – Worldwide reach.
                                  • Questionable reliability.
  – Many tools and
                               – Security is challenging.
    standards.
  – Designed to be robust,
    minimizes impact of
    network failures.
 Transaction Objects : trade data
• Example transaction attributes         Transactions         Items
                                             Date & Time   Item_Id
                                             Value         Description
   –   Date & time                                         Location
                                             Item          ...
   –   Price
   –   Quantity – volume                     Buyer
                                                             Buyers
   –   Value ( price * quantity)             Seller
                                                            Buyer_Id
                                                            Address
   –   Item Number                                          Phone
                                   Sellers
   –   Buyer                        Seller_Id
   –   Seller                       Address
                                    Phone
     Transaction Risks for Payment
                                                  1. Receive payment.
Credit card
                                                  2. Legal payment.
company
accepts risks for                                 3. Customer not reject
a fee.                  payment                       sale.
                                       Vendor     4. Government not
                                                      invalidate sale.




                                                1. Transaction record.
  Customer
                                                2. Tax records.
1. Receive product.                             3. Identify fraud.
2. Charged only as agreed.                      4. Track money for other
3. Legal transaction.                              cases
                                  Government
    E-Commerce Risk Mitigation
                                              It is critical that vendors
                        Consumer is           protect their databases.
                        protected by credit          Encrypt(Database)
                        card company.

Encryption protects                                           Vendor
transmission of data
and verifies identity
of vendor.




                                                Vendor is not protected
                                                by credit card and has
                                                only weak methods to
Customer                                        verify customer identity.
                                                (No signature, id, face,
                                                etc.)
       Shopping on the Internet
• Advantages                   • Disadvantages
  – Search and compare.          – Availability: requires a
  – More tailored                  computer and an ISP.
    information.                 – Slow speed limits
  – Wider selection.               graphics and video.
  – More competition.            – Limited portability
  – Speed: especially if you     – Trust: vendors and
    can download the               consumers.
    product.                     – Taxation.
  – Comparison databases:
    What did others buy?
             Electronic Commerce
• Pre-Purchase activities (non- • Purchase (requires
  interactive or interactive)     interactive).
      •   Promotion.
      •   Product specifications.
                                    –   Transmission security.
      •   Pictures.
                                    –   User identification.
      •   Schematics.
                                    –   Product selection.
      •   Pricing.
                                    –   Payment validation.
      •   FAQs.
                                    –   Order confirmation.
   – Interactive sites.
      • Configuration.
      • Compatibility.
      • Complex pricing.
           Electronic Commerce
• Post-Purchase Activities    • Digital content on internet
   – Service.
      • Revenue generation.
                                 –   Software.
      • Problem tracking.
                                 –   News and data.
      • Sales leads.
                                 –   Books.
   – Resolve problems.           –   Music.
   – Answer questions.           –   Video.
   – Product evaluation.
      • Modifications.
      • Tracking customers.
                    Security and Trust
• Security                               • Trust
                                            – Is the vendor valid?
   – Each transmission is
     encrypted.                                 • Consider: Internet
                                                  gambling.
       • Prevent interception.
                                                • What if offshore vendor
       • Keys generated by                        refuses to pay off a bet?
         certificate authority (e.g.,
                                                • As long as Internet
         Verisign).
                                                  gambling is illegal
   – Security on individual                       consumer has no choice.
     servers is the responsibility              • Otherwise, use credit
     of vendor.                                   cards and rely on banks.
       • There have been some                   • Secure certificates.
         thefts of data (e.g., credit-
         card numbers.)
                                            – Is the customer valid?
       • Vendor is motivated to
         secure the server.                     • Rely on credit card data.
       • Commercial software                    • Some vendors will ship
         exists to provide secure                 only to billing address.
         sites.                                 • Certificate authority.
      Internet International Issues
• Authority questions for disputes.
   – Collection and payment for sales.
       • Currently rely on credit cards.
       • Many people do not use/prefer credit cards.
       • Does not protect vendor vey much
   – Coordinate and stop fraud
   – Control harassment, spamming, and denial of service attacks.
• Encryption restrictions.
   – France does not allow citizens to use encryption at all.
• Different privacy rules.
• Nations have differing perspectives of “offensive” content.
              Payment Mechanisms
• Credit card drawbacks
   – High transaction costs.
   – Not feasible for small payments.
   – Do not protect the merchant.
• Characteristics needed
   –   Low enough costs to support tiny payments
   –   Secure transmission.
   –   Secure storage.
   –   Authentication mechanism.
   –   Easy translation to traditional money.
• Alternatives
   – Bill the mobile phone
   – Smart cards – prepaid cards
         Digital Cash Payment
                   Trusted
                   Party
                                             Conversion
                                             to
                                             real money.
                                                               Bank

                                          (A) Consumer
                                              purchases a cash
          (C) Cash amount is                  value that can be
              verified and added to           used only once.
              vendor account.



Vendor                (B) Customer choose
                          product, sends ID or             Consumer
                          digital cash number.
                         Data Quality
• Integrity                              • Summaries
   –   Errors in data entry.
                                           – Too much detail.
   –   Missing data.
                                           – Hard to get detail.
   –   Failure to make updates.
   –   Duplicate data
• Multitasking/Concurrency               • Time
   – Changes by two people at
                                           – Report and decision
     same time gives bad data.
                                             deadlines.
   – Unhandled concurrency
                                           – Departments get data at
• Volume                                     different times.
   –   Cost (disk, tape, time, backup)     – Sequencing problems.
   –   Errors harder to spot.
   –   Transmission costs over lines
   –   Difficulty of searching.
   –   System overload.
Multitasking and Concurrency
•   Data Integrity
•   Multitasking & concurrency
•   Data volume
•   Data summaries
                Accounting
• Financial data and reports
• What do things really cost (cost
  accounting) ?
• The accounting cycle
• Inventory
• Checks and balances
  – Double-entry
  – Separation of duties
  – Audits
               Accounting Software
• General Ledger                      • Accounts payable
   –   Sample chart of accounts          –   Check reconciliation
   –   Automatic posting                 –   Automatic recurring entries
   –   Automatic entry of vendors        –   Monitor payment discounts
   –   Fiscal years                      –   Select bills from screen
   –   Keep past data books open         –   Pay by item, not just total bill
   –   Post to prior years
   –   Allocate department expenses   • General Features
• Accounts Receivable                    –   Printer support
   –   Automatic early discounts         –   Use of preprinted forms
   –   Interest on late payments         –   Custom reports
   –   Multiple shipping addresses       –   Custom queries
   –   Sales tax                         –   Security controls
   –   Automatic reminder notices        –   Technical support costs
   –   Automatic monthly fees            –   Often legislation changes
   –   Keep monthly details              –   New year operations
                                    Accounting
       Banks                                     Management
        and
      Creditors                                                                          Shareholders
                    Loans & Notes                              Planning Reports
                            Cash       Management
                        Management,    Reports                                              Shareholder
                                                              Strategic
                        Investments,                                                        Reports
                                                              & Tactical
                           Foreign                            Planning
                          Exchange   Capital Acct
                                                                                 Produce                        Governments
      Departments
                                                               Planning         Shareholder
      & Employees
                                                               Data               Reports

                      Payroll &                    Produce                                                    Tax Filings
                                                                      Equity
       Expenses       Employee                   Management
                       Benefits                                                  Tax data           Tax
                                   Payroll        Accounting
                                                                                                  Filing &
                                                   Reports
                                                                                                  Planning
                                                                           Receivables
                                                Inventory &                                       Sales Tax
                    Orders &                    Assets
                                                                                       Sales &
                    Accounts      Payables              Inventory
                                                                                      Accounts
                     Payable                          Management,                                    Sales & Receivables
                                                                                     Receivable
                                                      & Fixed Asset
                                                      & Cost Acct.                                                Customers
              Purchases &
              Payables            Inventory Changes                Inventory Changes
Suppliers                                                                       Product
                                         Supply &
                                        In-process                             Inventory
                                         Inventory
         The Role of Accounting
•   Transaction Data
•   Purchases, Sales, Loans, and Investments
•   Inventory Control
•   Process and Controls

    – Double-Entry Systems
    – Separation of Duties
    – Audits
Human Resources Management
                                                          Management
                          Compile
                           Merit                                   Management
  Managers
                         Evaluations                               Reports
                          & Salary        Merit
                          Changes                           Produce
       Evaluations
                                                          Management
                                                                                                            Government
                                                           Employee
                                                                                     Produce
                                                            Reports
                                           Merit &                                  Government
                                           Salary                                    Reports       Government
                                                              Employee                             Reports
              Salary                                          Summaries
                                                                                         Equal Employment
                     Process                                                             Opportunity Data
                                  Employee
                      Payroll                      Employee Data
                                  Data
                     Benefits                      Files
                                                                                  Screen
                     Vacation
                                                                                  Jobs &
                                                                   Job &        Applications
 Employee                                                                                         Applicant
                                                                   Applicant
 Data                                                                                             Data
                                                                   Data
                           Sales Data &
  Employees                Commission                                                                   Job
                                                  Customers                                           Applicants

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:111
posted:6/28/2011
language:English
pages:25