SIT EXAM 2 (copy)

**Integration**

Allows separate systems to communicate directly with each other – UK Defense

zappos supply chain

very good, not out of stock, based in Vegas, wont show anything unless everything is in stock

integration tools 2022

supply chain management, customer relationship management, enterprise resource planning

**Supply Chain Management** **(SCM)**

The management of information flows between activities in a supply chain

3 main links of supply chain

1\.Materials flow from suppliers

2\.Transformation of materials into products

3\.Distribution of products to customers

**Dodge Viper – Bullwhip Effect**

a mistake at one end of the supply chain gets amplified at the other

3 components of supply chain management

•**Procurement –** the purchasing of goods and services to meet the needs of the supply chain. McDonalds’s potatoes (can’t get potatoes that are big enough in Europe)

•**Logistics –** includes the processes that control the distribution, maintenance, and replacement of materials and personnel to support the supply chain….. inbound & outbound

•**Materials management -** actual movement of goods…. shipping

anytime you hear the word processes you should think

logistics

broken link

your supply chain is only as good as your weakest link

technologies reinventing the supply chain

•**3D printing - biggest one** (supports procurement, Bone printer)

•**Radio Frequency IDdentification** (supports logistics) ZARA, BEACONS - The Marketing Insider, January 3, 2018, Keith Wright

•**Drones** (supports logistics) Amazon, Walmart, FedEx

•**Robotic**s (supports materials management) Kiva

•**Blockchain** (Digital Ledger, Eliminate Counterfeits)

**Customer relationship management (CRM)** and example of businesses who use it

Involves managing a customer’s relationship to increase customer loyalty + profitability;

Harley-Davidson has obtained great success through CRM

nickname of Harley motorcycle

hog (symbol HOG)

how many members do we have in this Harley Owners Group?

650,000 (greater than 600,000)

who was all state targeting through CRM data

Gain insight into customers’ shopping and buying behaviors (Women, 35 to 45, SUVs, 30 miles from city limits)

what does RFM mean and what does it help organizations do

Recency, Frequency, and Monetary Value;

Organizations can find their most valuable customers through…. based off of : how recently a customer purchases items, how frequently, the amount of each purchase

the power of the customer

* The customer has more power than ever thanks to the Internet
* Jet Blue (plane tried to pull away but got stuck in snow, people stuck on plane for 11 hours and was all over social media) , Dodge
* Social Media – companies have to listen to people with a lot of followers– “YouTube”

How many CRM metrics should you track to measure success

5 to 7 ( three categories are sales, customer service and marketing)

CRM contact points and communication channels

* Text message / Instant Message
* Voice mail / Voice call
* Email / Letter
* Web order / Phone order
* Meeting / Service Call
* Twitter, Facebook, Blog (gets wisdom of the crowd e.g., MSI)

evolution of CRM

1) reporting 2) analysis 3) predicting

reporting

Identify customers across other applications – Revenue by customer… related to RFM

analysis

Segment customers - best and worst customers - Why did sales not meet forecast?

predicting

Make predictions - Which customers are at risk of leaving?

operational CRM (boring)

Supports traditional transactional processing for day-to-day front-office (customers)

**Analytical CRM** (more fun)

Supports back-office operations and strategic analysis – Demographics, Psychographics… how are we going to sell more

two different approaches to sell to customer

One product to many customers?

* One customer as many products as possible?

what was the first department to begin developing CRM systems with sales force automation (tracks steps in sales process)

sales department

Analytical CRM

* **Which type of marketing and sales campaign to launch and which customers to target and when?**
* **Data Warehouse, Business Intelligence, Find new profitable customers! Uplift!**
* **Customer Segmentation**
* **Website personalization**
* **`Salesforce.com, pipedrive, Zoho**

enterprise resource planning

Integrates all departments and functions throughout an organization into a single IT system

* Real-time views of entire business to make enterprise-wide decisions

SAP, Oracle, Microsoft (large ERP)

Reasons ERP systems are powerful tools

•Logical solution to incompatible applications

•Global information sharing and reporting

•Avoid pain and expense of fixing legacy systems (Y2K)

**ENTERPRISE RESOURCE PLANNING “Single Repository”**

**ERP Bringing The Organization Together, everyone has access to same data and same IT system**

**Three most common core ERP components – SAP, Oracle, Salesforce**

1\.Accounting and finance FI/CO

2\.Production and materials management MM/PP

3\.Human resource HR

extended ERP components

SCM, CRM, BI, Ebusiness

ERP failures

**Software customization, ERP costs**

e.g, Hershey decided to go live right before Halloween and whole supply chain shut down due to it……. **Nike (spent 100 mill on SCM), K-Mart lost over $100M**

mid ERP companies

Infor, Lawson, Epicor, **Sage**

small ERP companies (bold is most popular)

Exact Globe, Syspro, **NetSuite**, Consona

what percent of the company is in single repository

90%, book says 15%

balanced scorecard, who developed it

measure company and see how they are doing before ERP and after ERP, how well is this company performing

Clarify strategy and translate it into action – **Kaplan/Norton**

balanced scorecard components

financial (100pts), customer satisfaction (100 pts), learning and growth (100pts), internal business processes (100pts)

On-premise ERP

Servers at HQ, all in one data center, expensive noisy machines

SAP = Single source of information, no duplication of data, ownership

On-demand ERP (in the cloud, giant hard drive stored in internet)

Cloud ERP, SAAS stores, manages and processes data and applications over the Internet - SAAS ERP - deconstructing into dispersed apps. (Microservices)

SMEs can’t afford traditional ERP systems, most operate on the cloud

Hybrid, Two Tier ERP Architecture - On-premise ERP and Cloud or SAAS ERP

financials were on premise, everything else was in the cloud

why is CFO nervous about financial information in the cloud

hackers, leaked data

Monolithic Architecture

Single package, large, complex (SAP) (Single database)

Micro Services

– Digital Transformation,  Single business function, fast ROI, low TCO

•Supports small start ups, acquisitions with old ERPs, small subsidiaries with no ERP, or specific industry or local focus - **Valero**

Services Oriented Architecture (SOA)

(90 services lego blocks)

a method of software development that uses software components called services to create business applications. Each service provides a business capability, and services can also communicate with each other across platforms and languages.

**Data Warehouse and examples**

**(centralized repository), that you can use for decision making**

Snowflake Data Warehouse (DW), Google TensorFlow AI

rite aid used beacon in how many stores?

4500

target - 100 stores

amazon echo vs google home

Alexa had 71% share, google home had 24%

what percent of wholefood shoppers were amazon prime members

65%, bought wholefoods for 13 billion

where is data stored in most companies

transactional databases

e.g., Walmart does around 2 million transactions per hour

components of data

•**Levels –** Individual, Department (e.g., marketing, finance), Enterprise (SAP/Oracle)

•**Formats –** Spreadsheet (small companies), Database

•**Granularities –** Detail = Fine +    Summary = Coarse, Aggregate, Abstract

what’s the most important word in ERP

enterprise

**Transactional information** ( day to day operations)

information to support daily operational tasks

•Walmart = 2M cust. transactions / hour

•Facebook = 800M active users, 3B total

analytical information

•information to support managerial decisions

•Build a new store?, McDonalds, burger king

•Spot trends – Storms in Florida? Fraud?

data/information quality

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**Data Steward – policies MIS + Business**

fields (columns), records (rows), table, database (smallest to largest)

what is the first field in a data base called, that uniquely identifies a given record in a table. What is it called when it shows up in an attribute of another table

primary key

if primary key shows up in another table, its called a **foreign key** which shows a relationship

**Benefits of** \n **Good Information**

* Real-time – continual change, pitfall?, constantly changing
* Nestle vendors – 550K, IBM, IBM inc.
* High quality information improves  chances of making a good decision
* Golfsmith.. where to build superstores: Phoenix (bly thought this was best spot, but after research they chose: Rochester, Detroit)
* Governance – Integrity
* MDM – accurate, complete – perfect data?

Relational Database management systems (RDBMS)

Allows users to create, read, **update, and delete data** – Relationships – primary key, foreign key

* Query by example - QBE (e.g., show me all the customers that are greater than 1,000,00 in sales), Access (managers) and SQL (MIS experts)

blockchain ledger

distributed ledger that no one owns, you can delete a blockchain

most common data base tools and top 4

1. Oracle is still in the lead with 21C focused on the cloud (SAAS) Java, C, have to do a little bit of coding
2. Microsoft is still number 2 with MySQL 8.0, SQL Server - Facebook Access = #10 managers love (QBE)
3. IBM continues to hold on to sixth place #6 – IBM DB2, MongoDB up
4. SAP has a significant segment now with SAP HANA

how long did it take data to double back then vs now

2 years vs 6 months

field

Single unit of data, data element

•customer name, address, email

record

Collection of related fields -  person, place, thing, transaction

•one customer e.g., customer 113 could be steve smith

tables/entities

collection of related records

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database (3 dimensional)

collection of related 2D tables, layered tables

physical

the way you store everything in database on disk

logical

do a report anyway you want from the way it is physically stored on disc e.g., show any songs over 4 min

ellisisland.org

50 million hits the first day, never crashed due to data base

driving websites with data

•Zappos – the online shoe retailer

•The customer enters search criteria in the website

•The database runs a query on the search criteria

dynamic vs static

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data-driven websites advantage

•Easy to manage content, CC, CE

•Easy to store large amounts of data

•Easy to eliminate human errors

data warehouse and data marts

**logical** collection of **operational** databases (LO)

data marts are if a specific part of company wants their own warehouse e.g. if marketing

ETL

internal + external databases combined into data warehouse

single repository

a business intelligence tool where you can ask why something happened

what did best buy learn

7% of their customers are responsible for 43% of their sales and then designed the stores around them

In a data warehouse (Big Data) processed information is multidimensional, layers

•Cube – representation of multidimensional information – Sun Tsu – Know your strengths

•Data Lake, raw original format

•Hadoop Platform (takes raw data and creates data warehouse)

data cubes

•Users can slice and dice the cube to drill down into the information, used a lot

information cleansing / scrubbing

**25% dirty data – 15% inaccurate, 35% incomplete, duplicated**

e.g., 2/31/10 is a complete piece of data but it is not accurate

If i go online and order a hat or merch, why do they make you go to the dealership to pick it up

so you can see all the other products

harley davidson how often do they get orders ready

they have to get the orders ready twice a day

3 most popular data bases

oracle, Microsoft, IBM

**Data mining**

**extract info. for trends and patterns – Best Buy 7% (babyboomers) / 43%    Netflix - Cinematch**

big data analytics

•**Structured = 20% Unstructured = 80%**

data visualization

**Infographics – Data Artist, Story, Dashboard = CSF’s, KPI’s, PTOE (Chemistry)**

Own Private ledger

Visa, PayPal, Banks

blockchain

Distributed ledger (all around the world and managers decentralized data bases), blocks of data, permanent, tamper-proof record, Decentralized (no centralized authority), Unalterable

digital currencies and blockchain

No central intermediaries, no country regulation, 20% lost = $140 billion? IronKey, 18M BC

* Bitcoin (2009), Ethereum, decentralized, open-source, blockchain, blocks, hash and data, unbreakable chain, immutable (unchangeable)

If you have a data lake and want to cook some of the data what do you use

Hadoop clusters through Extract Transform and Load (ETL) to form data warehouse and stricture the data warehouse

what is a data warehouse

logical collection of operational data bases

**Non-Fungible Tokens (NFTs)**

Digital signature backed by Blockchain, proves ownership, NFTs are unique unlike Bitcoins. Beeple, Banksy, Jack Dorsey

Scarce digital assets, digital artwork, sports cards, rarities…

money and crypto are fungible

database and blockchain, what can you do with NFTs

Create, Read, but no Update, and Delete in BC;

Money and Cryptocurrencies are fungible;

NFTs – each token is unique and irreplaceable Beeple - $69M, Bansky 400K, Jack Dorsey first tweet $3M

Amazon vs. Google in the Arms Race over Voice-Enabled Commerce

35 Million Americans

* Amazon buys Whole Foods – Echo / Alexa
* Wal-Mart and Google Partnership - Home
* Alexa’s in Charge for Now – 71% share, uses Bing
* Google Home - 24% market (better)
* Apple Home Pod? - only plays apple music

**Accenture – split audit and management consulting**

* **As-Is (2001)**
* **600 global and 1,500 local applications**
* **Complex, patchwork of legacy systems**
* **To-Be (2004)**
* **Single-vendor approach, simplify, rationalize**
* **SAP (Finance and HR) and Microsoft (Windows, Outlook e-mail and SQL DB)**
* **Outsource 86% to low cost regions. Only 14% permanent IT staff. Virtualization 250 to 115**
* 3 outsourcing companies (All I’s) India, Ireland, Israel

* 3 outsourcing companies (All I’s)

* India, Ireland, Israel

Software 

The set of instructions the hardware executes to carry out specific tasks

Network

A communications system created by linking two or more devices and establishing a standard methodology in which they can communicate

Hardware

Consists of the physical devices associated with a computer system

Architecture

Infrastructure:

**MIS infrastructure**

1. Detailed blueprint – Enterprise Architect (EA) ;;;;
2. Supports growth, operations profits;;;
3. plans to build, deploy, use, and share data, processes, and MIS assets


1. •Client – requests info.

web browser

•Server – provides info. 

which is supposed to be faster upload or download

\

download

fault tolerance system and disaster recovery plan, which system do you fix first

fail over then fail back and disaster recovery plan was started at Union Bank of California in downtown San Francisco, hot site, either email or accounting or sales