Lecture 2 Emerging and Future Information Systems II
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The document describes enterprise resource planning (ERP) systems and expert systems. It defines ERP systems as integrated software packages that manage key business functions like production, sales, finance, and HR. Benefits include reduced costs and improved information sharing, while disadvantages include high costs and need to change business processes. Expert systems are described as using knowledge to solve problems like medical diagnosis or machine configuration. Their characteristics and some business applications are provided.
Lecture 2 Emerging and Future Information Systems II
- 1. Lecture 2 Emerging and Future Information Systems II
- 2. Objectives Describe enterprise resource planning System Describe the Characteristics of: Artificial Intelligence Expert Systems Describe some business applications of: Enterprise resource planning systems Expert systems
- 3. Enterprise Resource Planning ERP system is a set of integrated programs capable of managing a companies vital business operation for an entire multi-site, global organization. Major business functions of such a system includes production, distribution, sales, finance and human resource management. It is normally purchased as an off-the-shelf package.
- 4. Enterprise Resource Planning (Cont…) The benefits of ERP system includes: Reduce cost of buying from a single supplier. Better transfer of information within the organization since all modules of the system is compatible. Simplified support and maintenance through a single supplier. Use of ‘best-of-breed’ solutions applied by the companies.
- 5. Enterprise Resource Planning (Cont…) The main disadvantage of ERP systems includes: The high costs charged by suppliers. The system often has to change its processes or way of working in order to fit the way the software operates. Only large companies can afford the software and the consultants, which will often be a total cost of millions of pounds.
- 6. Traditional View of Information Systems Large organization typically has many different kinds of information systems that support different functions Most of these systems are built around different functions, business units and business processes that do not “talk” to each other, and managers might have a hard time assembling the data they need for a comprehensive, overall picture of the organization’s operations. For Example, sales personnel might not be able to tell at the time they place an order whether the items that were ordered were in inventory
- 7. Traditional View of Information Systems
- 8. Enterprise Systems Traditional IS have negative impact on organizational efficiency and business performance. Many organizations are now building ERP systems. ERP models and automates many business processes, with the goal of integrating information across the company and eliminating complex, expensive links between computer systems in different areas of the business.
- 9. Enterprise Systems Information will flow throughout the firm and can be shared in all business processes This have positive impact and overall efficiency of the organization will increase
- 11. Business Process Support by ERP Manufacturing process , including inventory management, purchasing, shipping, production planning, material requirements planning, and plant and equipment maintenance. Financial and accounting processes , including accounts payable, accounts receivable, cash management, and forecasting, product-cost accounting, cost-center accounting, asset accounting, general ledger, and financial reporting.
- 12. Business Process Support by ERP Sales and marketing processes , including order processing, pricing, shipping, billing, sales management, and sales planning. Human resource processes , including personnel administration, payroll, personnel planning and development, applicant tracking, and travel expense reporting.
- 13. Some Business Applications of ERP Sales and Marketing Systems The sales and marketing function is responsible for selling the organization’s products or service. Marketing is concerned with: Identifying the customers for the firm’s products or services Determining what they need or want
- 14. Some Business Applications of ERP Planning and developing products and services to meet their needs Advertising and promoting these products and services. Sales are concerned with contacting customers, selling the products and services, taking orders, and following up on sales.
- 15. Examples of Sales and Marketing IS System Description Organizational Level Order processing Enter, process, and track orders Operational Market analysis Identify customers and markets using data on demographics, markets, consumer behavior, and trends Knowledge Pricing analysis Determine prices for production and services Management Sales trend forecasting Prepare 5-year sales forecast Strategic
- 16. Some Business Applications of ERP Manufacturing and production Information Systems The manufacturing and production function is responsible for actually producing the firm’s goods and services. Manufacturing and production systems deal with: Planning Development Maintenance of production facilities
- 17. Some Business Applications of ERP Establishment of production goals The acquisition Storage Availability of production materials Scheduling of equipment, facilities, material, and labor required to fashion finished products.
- 18. Examples of Manufacturing and Production Information Systems System Description Organizational Level Machine control Control the actions of machines and equipment Operational Computer-aided design (CAD) Design new products using the computer Knowledge Production planning Decide when and how many products should be produced Management Facilities location Decide where to locate new production facilities Strategic
- 19. Some Business Applications of ERP Finance and Accounting Systems The finance function is responsible for managing the firm’s financial assets, such as cash, stocks, bonds, and other investments in order to maximize the return on these financial assets. The finance function is also in charge of managing the assets of the firm. In order to determine whether the firm is getting the best return on its investments, the finance function must obtain a considerable amount of information from sources external to the firm.
- 20. Examples of Finance and Accounting Information Systems System Description Organizational Level Accounts receivable Track money owed to the firm Operational Portfolio analysis Design the firms portfolio of investments Knowledge Budget Prepare short-term budgets Management Profit planning Plan long-term profits Strategic
- 21. Some Business Applications of ERP Human Resources Systems The human resources function is responsible for attracting, developing, and maintaining the firm’s work force. HRM Systems support activities such as identifying potential employees, maintaining complete records on existing employees, and creating programs to develop employees’ talent and skills.
- 22. Examples of Human Resources IS System Description Organizational Level Training and development Track employee training, skills, and performance appraisals Operational Career pathing Design career paths for employees Knowledge Compensation analysis Monitoring the range and distribution of employee wages, salaries, and benefits Management Human resource planning Plan the long-term labor force needs of the organization Strategic
- 23. Artificial Intelligence People Software Data Knowledge Hardware Procedures AIS
- 24. Artificial Intelligence Artificial Intelligence Systems Include: People Procedures Hardware Software Data Knowledge The Objective of AI is not to replace human Decision making completely but to solve certain types of problems.
- 25. The Characteristics of AI Learn from experience and apply knowledge acquired from experience Natural for Human beings Must be programmed Handle Complex Situations Even Human beings make mistakes requires careful planning and elaborate computer programming
- 26. The Characteristics of AI (Cont…) Solve problems with important information is missing. Decision must be made even when we lack information or have inaccurate information Determine what is important. Everyday we are bombarded with facts and must process large amounts of data, filtering out what is unnecessary Computers do not have this natural ability
- 27. The Characteristics of AI (Cont…) React quickly and correctly to a new situation Human beings react quickly and correctly in a new situation Complex programming is required Understand visual images. Being able to understand and correctly interact visual images is an extremely complex process for computer systems. Process and manipulate symbols Computers have difficulty handling symbolic processing and reasoning
- 28. The characteristics of AI (Cont…) Be creative and imaginative Developing new and exiting products and services from an exiting situation is a human characteristic Human beings are creating new technologies to make computer as an imaginative and creative thing Use heuristics Human beings can guess and take decision using general rules of thumb, without completely searching all alternatives and possibilities
- 29. Expert Systems Components of an Expert Systems
- 30. Expert Systems An ES is a special type of IS that uses knowledge within some topic area to solve problems or provide advice. ES’s are used to mimic human expertise by manipulating knowledge rather than simply information. When you use an ES, the system asks you a series of questions, much as a human expert would.
- 31. Expert Systems (Cont…) ES’s are used when expertise for a particular problem is rare or expensive. Examples of ES are:- Medical diagnosis Machine configuration Financial planning Computerized expert systems have been developed to diagnose problems, predict future events, and improve healthcare etc…
- 32. Characteristics of ES Can explain their reasoning or suggested decisions This is the most valuable feature of a computerized expert system Can display “intelligent” behaviors Can process new ideas or approaches to problem solving Can draw conclusions from complex relationships Can suggest ways to improve quality control procedure. Can provide portable knowledge. Can be used to capture human expertise that might otherwise be lost
- 33. Characteristics of ES (Cont…) Can deal with uncertainty Use of probability & statistics. Not widely used or tested Difficult to use Some ES are difficult to control and use Limited to relatively narrow problems Some ES can perform complex data analysis Others are limited to simple problems Cannot readily deal with “mixed” knowledge Knowledge can be represented through defined rules
- 34. Characteristics of ES (Cont…) Possibility of errors. The primary source of knowledge is a human expert. If this knowledge is incorrect or incomplete, it will affect the system negatively Cannot refine own knowledgebase programmer must provide instructions to the system that determine how the system is to learn from experience
- 35. Characteristics of ES (Cont…) Difficult to maintain Some are not responsive or adaptive to changing conditions May have high development cost It can be expensive to develop when using traditional programming languages and approaches Raise legal and ethical concerns People who make decisions and take action are legally and ethically responsible for their behavior
- 36. Some Business Applications of ES Information Management and Retrieval The explosive growth of information available to decision makers has created a demand for devices to help manage the information. Expert systems can aid this process through the use of bots. Business might use a bot to retrieve information from a large distributed databases or a vast network like the Internet. Expert system agents help managers find the right data and information while filtering out irrelevant facts that might impede timely decision-making.
- 37. Some Business Applications of ES SHYSTER A case-based legal expert system which provides advice in areas of case law that have been defined by a legal expert using a unique specification language. CARGEX Cargo Export System is used by Lufthansa, a German airline, to help determine the best shipping routes.
- 38. Some Business Applications of ES FLEXPERT Uses fuzzy logic to perform plant layout. The software helps determine the best placement for equipment and manufacturing facilities. MYCIN (used by Harvard Community Health Plan) A software that helps patients by giving uncomplicated treatments for minor problems, & for serious problems it schedules appointments.
- 39. Some Business Applications of ES Employee Appraiser Helps managers in employee performance reviews and career development discussions. ACE Used by AT&T to analyze the maintenance of telephone networks. CoverStory Extracts marketing information from database and automatically writes marketing reports.
- 40. Some Business Applications of ERP 24SevenOffice system for small and medium sized businesses delivered on demand through a Ajax-powered web-based interface Includes modules for: CRM Accounting Invoicing/Ordering Procurement Email Calendar Project Management, Content management system E-commerce
- 41. Some Business Applications of ERP Components available to create a complete business solution integrating the front office with the back office applications: Sage Accpac CRM (Customer Relationship Management) Accpac HR Series (Human Resources) Sage Accpac WMS (Warehouse Management System) Sage Accpac Exchange (Electronic Data Interchange) Accpac eTransact (Online Webstore) Sage Accpac ePOS (Retail Point of Sale) Sage Accpac Insight (Business Intelligence & Analysis) Accpac CFO (Financial Analysis) Sage Accpac Hosted Services (Remote Hosting Facilities) Sage Accpac is an award-winning accounting system that integrates with a complete set of end-to-end business solutions, including CRM, HRMS, warehouse management …and more.
- 42. Some Business Applications of ERP Apache Open For Business (Apache OFBiz) is Open Source automation software Apache OFBiz aggregates functionalities like : ERP - planning CRM - customer management eCommerce SCM - supply chain management MRP - manufacturing resource planning CMMS/EAM - Computerized Maintenance Management System also known as Enterprise Asset Management .