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Build Bright University Management Information System Prepared by: Suy Sothy Table of Contents Chapter 1 - Introduction to Information Systems 1.1. Information Concept ........................................................................................................................ 1 1.2. Type of Data..................................................................................................................................... 3 1.3. Characteristic of Valuable Information............................................................................................ 3 1.4. System .............................................................................................................................................. 4 1.5. System Elements .............................................................................................................................. 4 1.6. Modeling a System........................................................................................................................... 5 1.7. Type of Model .................................................................................................................................. 5 1.8. Why do we need model? .................................................................................................................. 6 1.9. Information System .......................................................................................................................... 6 1.10. Activities of an IS ............................................................................................................................ 7 1.11. Components of an IS ........................................................................................................................ 8 1.12. Input, Processing, and Output .......................................................................................................... 8 1.13. IS Vs. IT ........................................................................................................................................... 9 1.14. Expanding Roles of IS ................................................................................................................... 10 Chapter 2 - Manual Systems Vs. Computerize Systems 2.1. Manual Systems vs. Computerized Systems.................................................................................. 11 2.2. Computer-based Information Systems ........................................................................................... 11 2.3. Parts of a CBIS ............................................................................................................................... 11 Chapter 3 - Business Information Systems 3.1. Fundamental Roles of IS in Business ............................................................................................ 18 3.2. Type of Business Information Systems .......................................................................................... 18 3.3. Working with Systems ................................................................................................................... 22 Chapter 4 - Competing with Information Technology 4.1. Strategic IT ..................................................................................................................................... 24 4.2. The Competitive Environment ....................................................................................................... 24 4.3. Competitive Forces and Strategies ................................................................................................. 25 4.4. Five Competitive Strategies ........................................................................................................... 26 4.5. Other Competitive Strategies ......................................................................................................... 28 4.6. Creating a Virtual Company .......................................................................................................... 28 4.7. A Virtual Company ........................................................................................................................ 28 Chapter 5 - Supply Chain Management and Global Information Systems 5.1. Sharing Information Systems: The Rise of E-Commerce .............................................................. 30 5.2. Vertical Information Systems ........................................................................................................ 30 5.3. Horizontal Information Systems .................................................................................................... 31 5.4. Electronic Data Interchange ........................................................................................................... 32 5.5. Benefits of EDI .............................................................................................................................. 32 5.6. How does EDI work? ..................................................................................................................... 33 5.7. Supply Chain Management ............................................................................................................ 34 5.8. The Importance of Trust ................................................................................................................ 35 5.9. Multinational Organizations .......................................................................................................... 36 5.10. Using the Web for International Commerce .................................................................................. 36 5.11. International Web Commerce Benefits .......................................................................................... 36 5.12. Challenges to Global Information Systems ................................................................................... 36 Chapter 6 - Online Payment Processing Systems 6.1. The Payment Processing Network ................................................................................................. 38 6.2. How Payment Processing Works ................................................................................................... 39 6.3. Payment Processing-Settlement ..................................................................................................... 40 6.4. Choose a payment processing service ............................................................................................ 40 Chapter 7 - Decision Making Model 7.1. Methods for Selecting Projects ...................................................................................................... 42 7.2. Project Time Management ............................................................................................................. 48 Chapter 8 - Human Resource Information Systems 8.1. Personnel Department Chart .......................................................................................................... 51 8.2. Context Diagram ............................................................................................................................ 51 8.3. Data Flow Diagram for Subsystem ................................................................................................ 52 8.4. Recruitment & Selection ................................................................................................................ 53 Chapter 9 - Database Technology 9.1. Basic DB Terms ............................................................................................................................. 59 9.2. Data in Context .............................................................................................................................. 59 9.3. Data: A Resource ........................................................................................................................... 59 9.4. Information..................................................................................................................................... 60 9.5. Metadata ......................................................................................................................................... 60 9.6. Data Integrity ................................................................................................................................. 60 9.7. Traditional File-Oriented ............................................................................................................... 61 9.8. DBMS ............................................................................................................................................ 61 9.9. Database Systems ........................................................................................................................... 61 9.10. Database and Database Systems .................................................................................................... 62 9.11. Advantages of Central Database .................................................................................................... 62 2 9.12. Evolution of DB Models ................................................................................................................ 62 9.13. Hierarchical Database .................................................................................................................... 62 9.14. Network Database .......................................................................................................................... 63 9.15. Relational Database........................................................................................................................ 63 9.16. Relating Tables Using a Common Field ........................................................................................ 64 9.17. Database Applications.................................................................................................................... 65 9.18. An Enterprise Data Warehouse ...................................................................................................... 65 9.19. Data Mining ................................................................................................................................... 65 9.20. Components of the DB Environment ............................................................................................. 65 9.21. Database Development Process ..................................................................................................... 66 9.22. DB Development Schedule ............................................................................................................ 69 9.23. Incremental Commitment in DB Development ............................................................................. 70 9.24. Database Schema ........................................................................................................................... 70 9.25. Centralized Database Systems ....................................................................................................... 71 9.26. Client/Server Database Systems .................................................................................................... 71 9.27. Distributed Database Systems ........................................................................................................ 72 3 Chapter 1 Introduction to Information Systems 1.1. Information Concept Data Vs Information: Data: CavtßúFatuedIm b¤ CabMENkepSg²énB½t’man . Information: CakarRbmUlpþúMénvtßúFatuCaeRcIntammeFüa)a yNamYyEdleFVIeGayBYkvamantMélbEnßm elIsBItMéledImrbs;BYkva . Examples (1): 1 Examples (2): Examples (3): 2 1.2. Type of Data tMNageday Data 1.3. Alphanumeric data elx/ GkSr/ nig GkSrepSg² Image data rUbPaB RkahVik Audio data sUrsemøg Video data rUbPaBclna Characteristic of Valuable Information 3 Example: Health Information 1.4. Systems CasMNMuénFatu b¤smasFatuCaeRcInEdlman TMnak;TMngKña eFVIkarCamYyKñaman\T§iBl elIKñaeTAvijeTAmkedIm,IseRmcnUveKaledA . 1.5. System Elements System Example: Elements Syste m Inputs Processin g elements Goal Outputs 4 Movi e 1.6. tarasEmþg/ ft/ ExSPaBynþ PaBynþkMs GñkdwknaMe kat;t/ Edl)anecj anþ/ rgVan;/ rOg/ EbgE eTAbBa©aM R)ak;cMeNj buKÁlik/ ck genA Qut/ eragPaBynþ eRKOgbrikça Modeling a System Model: CakarbMRBYj rW PaBRbhak;RbEhlEdlRtUv)aneRbIedIm,ItMNageGayPa BBit . 1.7. Type of Model bgðajCakataLúkepSg² (Topic, Subject, Oral, written) Physical: Cakarpþl;B½t’mantamrUbBitCak;Esþg Schematic: bgðajtam Chart epSg² Mathematical: bgðajCataragelx rW rUbmnþepSg² Narrative: 5 1.8. Why do we need model? 1.9. eFVIeGaykaryl;eTAelIRbB½n§EdlsµúKsµajman PaBgayRsYl . GacRtUv)aneRbIedIm,I Design edIm,IeFVIeGayKMrUénRbB½n§fµIRbesIreLIg . eFVIeGaykarTMnak;TMngGMBIRbB½n§gayRs Yl (e.g. rUbPaBmYyGacmanTMnak;TMngCamYyBaküra b;Ban;) . Information System (IS) Definition: 6 CasMNMuénFatu rW smasFatuBak;B½n§KñaCaeRcInEdlRbmUlpþMú (input), erobcMcgRkg (process), nig Eckcay (output) Tinñn½y nig B½t’man ehIypþl;nUvplRtLb;mkvijedIm,IsMerceKalbMNg . (IS) CaTMrg;xøIsMrab; Information Systems b¤ Information Services . sMrab;Rkumh‘unCaeRcIn IS KWCaeQµaHén Department EdlTTYlxusRtUvsMrab; Computers, Networking nig RKb;RKg Tinñn½y . Rkumh‘unCaeRcInepSgeTot sMedAeTAelI Department Ca IT (Information Technology) nig MIS (Management Information Services). ehtuGVIcaM)ac;sikSaBIRbB½n§Bt’man nig bec©kviTüaBt’man ? CasmasPaBEdlnaMeGayBaNiC¢kmµTTYleCaKC ½y . CYyBRgIkBaNiC¢kmµ nig karRbkYtRbECgkñúgBaNiC¢kmµ . eFVIeGayRbesIreLIgnUvdMeNIrkarBaNiC¢kmµ RbkbedayRbsiT§iPaB nigQandl;eKaledA . CYysMrYlkñúgkareFVIkarsMerccitþrbs;GñkRKb ;RKg nigkic©shRbtibtþikarkñúgRkum . 1.10. Activities of an IS 7 1.11. Components of an IS 1.12. Input, Processing, and Output 8 skmµPaBénkarRbmUl nig cgRkgTinñn½y b¤ GVI²k¾edayEdlbBa©ÚleTAkñúgkMuBüÚT½r . Processing: bMElg rW EkERbTinñn½yeGayeTACalT§plEdlmanRbeyaCn_ Output: Bt’manEdlmanRbeyaCn_/ CaFmµtakñúgTMrg;CaÉksar/ r)aykarN_ b¤ GIV²EdlmkBIkMuBüÚT½r . Input: 1.13. IS Vs. IT 9 1.14. Expanding Roles of IS – Data Processing: 1950s-1960s – Management Reporting: 1960s-1970s – Decision support: 1970s-1980s – Strategic and End User Support: 1980s-1990s – Global Internetworking: 1990s-Present 10 Chapter 2 Manual System Vs. Computerize System 2.1. Manual System vs. Computerized Systems Manual System: E.g., enAEtRtUv)aneRbIy:agTUlMTUlay . karviPaKeTAelIkarvinieyaKmYycMnYnKWKUs Charts edayéd ehIysMedACYyBYkeKkñúgkarseRmccitþ vinieyaK . Computerized Systems: KMnUsxagelIGacRtUv)anKUsedaykMuBüÚT½r . 2.2. Computer-Based Information Systems RtUv)anekIteLIgBI ³ CBIS – Hardware – Software – Databases – Telecommunications – Networks – People – Procedures edIm,I RbmUl/ erobcM/ pÞúk/ nig dMeNIrkarTinñn½yeGayeTACaBt’man . 2.3. Parts of a CBIS Hardware: eRKOgbrikçakMuBüÚT½r eRbIsMrab;skmµPaB Input, Processing, nig Output . vaCavtßúEdlGñkGacb:H )anCak;Esþg dUcCa disks, disk drives, display screens, keyboards, printers, boards, and chips, ... . 11 BiPakSa’ : sMedAelIvtßúEdlGñkGacb:HBal;)anCak;Esþg dUcCa Disks, Disk drives, Display screens, Keyboards, Printers, Boards, nig Chips . pÞúymkvij Software KWminGac b:HBal;)an . Software mandUcCa Ideas, Concepts, nig Symbols . Hardware ‘ y:agNamij esovePAk¾man Gtßn½yRbhak;RbEhlKñaEdr . snøwkTMB½r nig TwkexµA KWCa Hardware rIÉBakü/ XaøRbeyaK nig Gtßn½yTaMgmUlKWCa Software . kMuBüÚT½rEdlKµan Software KWeRbobdUc eTAnwgesovePA EdlmanEtTMB½rTeT . GñkRtUvkar Software edIm,IeFVIeGaykMuBüÚT½rman RbeyaCn_ k¾dUcCaGñkRtUvkarBaküedIm,IeFVIeGayeso vePAmanGtßn½yEdr . Software: CakmµviFIkMuBüÚT½rEdlRKb;RKg/ kMNt;/ nigtYtRtanUvRbtibtþikarénkMuBüÚT½r . vaCaTinñn½y b¤ XøabBa¢ar rbs;kMuBüÚT½r . Software RtUv)anEckecjCaBIrRbePT³ – Systems software: rYmmanRbB½n§Rbtibtþikar nig ral; Utilities TaMgGs;EdlGnuBaØateGay kMuBüÚT½rbegáItnUvmuxgar . – Applications software: rYmmankmµviFIEdleFIVkarsMrab;GñkeRbI . ]TahrN_ Word processors, Spreadsheets, nig DBMS ... . Software ‘BiPakSa’ (1): CaXøabBa¢aénkMuBüÚT½r rW Tinñn½y . GVI²EdlGacpÞúkman lkçN³CaTMrg; eGLicRtUnicKWCa Software . ]bkrN_sMrab;pÞúk nig bgðaj KWCa Hardware . 12 Bakü Software nig Hardware RtUv)aneRbICa nampg nig KuNnampg . ]TahrN_ GñkGacniyayfa "bBaðakñúg Software " mann½yfa manbBaðaCamYykmµviFI b¤ Tinnñ½y KWminEmnCamYykMuBüÚT½rxøÜnvaeT . Gñk Gacniyayfa "vaCabBaða Software" . Software ‘BiPakSa’ (2): karEjkrvag Software nig Hardware KWeBlxøHmankarRcLM eRBaH BYkvaRtUv)aneKP¢ab;CamYyKña . y:agNamij eBlEdlGñkTijkmµviFI GñkfaTij Software . b:uEnþedIm,ITij Software GñkRtUvkarTij Disk (Hardware) Edl Software pÞúkenAxagkñúg . Database: CakarerobcMRbmUlpþMúénTinñn½y nig Bt’man b¤ CakarRbmUlpþMúénBt’manEdlRtUv)anerobcM kñúg meFüa)aymYyEdlkmµviFIkMuBüÚT½rGaceRC IserIsykEpñkénTinñn½yEdlRtUvkar)any:agrh½s . Database ‘BiPakSa’ (1): KWCakarRbmUlpþMúénBt’man erobcMkñúgmeFüa)ayEdlkmµviFIrbs;kMuBüÚ T½r GacTajyky:agqab;rh½snUvbMENkNamYyrbs;Ti nñn½yEdlRtUvkar . GñkGacKitfa Database dUceTAnwgRbB½n§eGLicRtugmYy . TMlab; Databases KWRtUverobcMeday Fields, Records, nig Files . Field KWcabMENkEtmYyénBt’man/ Record 13 KWCasMNMueBjeljmYyén Fields ehIy File KWCakarRbmUlpþMúén Records . ]TahrN_ esovePATUrs½BÞ KWRsedogeTAnwg File . vamanpÞúknUv Records CaeRcIn, Rrecord nimYy²man Fields cMnYn bI ³ Name, Address, nig Telephone number . Database ‘BiPakSa’ (2): edIm,I Access Bt’manBI Database, GñkRtUvkar Database Management System (DBMS) . enHCakarRbmUlpþMúénkmµviFIEdl GnuBaØateGayGñk bBa©Úl, erobcM, nig TajykTinñn½ykñúg Database . BiPakSa’ (3): Database ‘ Telecommunications: 14 karbBa¢ÚntamRbB½n§eGLicRtUnicnUv Signals sMrab;TMnak;TMngKña cab;BIsMelgrhUtdl;vIedGU. vaGnuBaØat eGayGgÁPaBP¢ab;RbB½n§kMuBüÚT½reTAkñú gbNþajEdlkMBugdMeNIrkar . Networks: eRbIedIm,ItP¢ab;eRKOgbrikçakMuBüÚT½r nig kMuBüÚT½r kñúgGaKar/ CMuvijRbeTs/ nigelIBiPBelakedIm,IeGayGac TMnak;TMngKñatamRbB½n§eGLicRtUnic . vak¾sMedAeTAelIRkuménRbB½n§kMuBüÚT½ rBIr b¤ eRcInEdlP¢ab;CamYy Kña . BiPakSa’ (1): Computer networks maneRcInRbePT dUcCa³ Network ‘ Local Area Networks (LANs): kMuBüÚT½rzitkñúgPUmisaRsþCamYyKñaCit Kña ¬EdlzitkñúgGaKarEt mYy¦. Wide Area Networks (WANs): kMuBüÚT½rzitq¶ayBIKña ehIyP¢ab;KñaedayExSTUrs½BÞ b¤ rlkviTüú. BiPakSa’ (2): bEnßmelIRbePTTaMgenH/ lkçN³xageRkamKWRtUv)aneRbIpgEdredIm,IEbg Eck RbePT Networks epSg²Kña . Network ‘ Topology: karerobcMFrNImaRténRbB½n§kMuBüÚT½r . Topologies rYmman Bus, Star, nig Ring . Protocol: karkMNt;c,ab; nigsBaØal;EdlkMuBüÚT½reRbIR)as;edIm,ITM nak;TMngKña . Protocol mYykñúg cMeNam Protocols EdlmanRbCaRbiyPaBbMputsMrab; LANs KWRtUv)aneKehAfa Ethernet . Protocol rbs; LAN 15 EdlmanRbCaRbiyPaBepSgeTotsMrab; PCs KW IBM Token-Ring Network . Architecture: Networks GacEbgEcky:agTUlMTUlayedayeRbIR)as;sßab tükmµTaMgBIr KW Peer-to-Peer b¤ Client/Server . BiPakSa’ (3): kMuBüÚT½renAelI Network maneBlxøHRtUv)aneKehAfa Nodes . kMuBüÚT½r nig ]bkrN_EdlEbgEckFnFansMrab; Network RtUv)anehAfa Servers . Network ‘ BiPakSa’ (4): Network ‘ CabNþMúén Network CaeRcInEdltP¢ab;CamYyKñaenABaseBjsaklelak . Internet: CabNþMúén Network BIr b¤ eRcInepSgKñatP¢ab;CamYyKña . internet: CabNþajEdleRbIR)as;bec©kviTüa Internet enAxagkñúgGgÁPaB . Intranet: KWCa Intranet BIr b¤ eRcIn EdltP¢ab;CamYyKña . Extranet: 16 People and Procedures: CaFatusMxan;bMputrbs; Computer-based information systems PaKeRcIn . People rYm bBa©ÚlnUvmnusSEdlCaGñkRKb;RKg/ GñkdMeNIrkarkmµviFI/ nig GñkEfTaMRbB½n§ . People: rYmman yuT§saRsþ/ eKalkarN_/ viFIsaRsþ/ nig c,ab;sMrab; eRbIR)as; CBIS . Procedure: 17 Chapter 3 Business Information Systems 3.1. Fundamental Roles of IS in Business 3.2. Type of Business Information Systems a. Transactions Processing Systems (TPSs) Transaction: CakarepþaHbþÚrEdlBak;B½n§KñamYycMnYnkñú gvis½yBaNiC¢kmµ . ]TahrN_³ karbegáItbBa¢IR)ak;ExRbcaMs)þah_ . 18 karerobcMRbmUlpþMúén People, Procedures, Softwares, Databases nig ]bkrN_CaeRcIn eRbIedIm,Ikt;Rtay:ageBjeljnUvkarepþaHbþÚrEdlB ak;B½n§Kñakñúgvis½y BaNiC¢kmµ . Transaction processing system (TPS): b. E-Commerce System Bak;B½n§RbtibtþikarBaNiC¢kmµmYycMnYnEdlR tUvdMeNIrkartamRbB½n§eGLicRtUnic b¤ karRbRBwtþBaNiC¢kmµ On-line rvagRkumh‘un nigRkumh‘un/ Rkumh‘un nig GñkeRbIR)as;/ CMnYj nig EpñksaFarN³/ GñkeRbIR)as; nig EpñksaFarN³ . ]TahrN_³ sMrab;kEnøgbBa¢aTij Purchase Order – Traditional 19 Purchase Order – E-commerce c. Management Information Systems (MISs) CakarerobcMRbmUlpþMúén People, Procedures, Softwares, Databases, nig ]bkrN_CaeRcIneRbIedIm,I)an B½t’mansMrab;GñkRKb;RKg nig GñkeFVIkarsMerccitþelIbBaða . Scheme of MIS: BiPakSa’ ³ MIS ‘ 20 KWCaTMrg;xøIsMrab; Management Information System b¤ MIS Management Information Services ehIyRtUv)aneKbeBa©jsMelgdac;BIKña . sMedAelIfñak;én Software mYyEdlpþl;eGayGñkRKb;RKgnUv Tools sMrab;erobcM nigvaytMél Department rbs;BYkeK . y:agNamij RbB½n§ MIS RtUv)ansresrkñúg COBOL ehIydMeNIrkarelI Mainframes b¤ Minicomputers . MIS enAkñúgRkumh‘un nig GgÁPaBFM²/ Department TTYlxusRtUvsMrab;RbB½n§kMuBüÚT½r eBlxøHRtUv)anehAfa MIS Department . eQµaHepSgeTotsMrab; MIS rYmman IS (Information Services) nig IT (Information Technology) . d. Decision Support Systems (DSSs) CakarerobcMRbmUlpþMúén People, Procedures, Software, Databases, nig ]bkrN_CaeRcIneRbIedIm,ICYykñúg kareFVIkarsMerccitþelIbBaða . DSS CYyGñkRKb;RKg " Do the right thing " . e. Expert Systems (ESs) CakmµviFIkMuBüÚT½rEdlGnuvtþkargarEdleFVIe dayGñkCMnajkar . pþl;eGaykMuBüÚT½rnUvsmtßPaBedIm,IeFVIkar pþl;eyabl; nigedIrtYrCaGñkCMnajkñúgvis½yNamYy . ]TahrN_³ vinicä½yCm¶WmnusS/ eFVIkarBüakrN_hirBaØvtßú . Expert systems rYmman “Artificial intelligence” 21 Artificial Intelligence: CaEpñkénviTüasaRsþkMuBüÚT½rEdlTak;TgCa mYykareFVIeGaylkçN³rbs; kMuBüÚT½rdUceTAnwgmnusS . vaCaBaküEdlRtUv)anbegáItkñúgqñaM 1956 edayelak John McCarthy enA viTüasßanbec©kviTüa Massachusetts . BiPakSa’ ³ Artificial intelligence rYmman Games playing: CakmµviFIkMuBüÚT½redIm,Ielg Games dUcCa Chess nig Checkers . AI ‘ Expert systems: CakmµviFIkMuBüÚT½redIm,IeFIVkarsMerccitþ kñúgsßanPaBCIvitrs;enA ¬]TahrN_ Expert systems mYycMnYnCYyevC¢bNÐitviPaKCm¶W¦ . Natural language: CakmµviFIkMuBüÚT½redIm,Iyl;BIPasarrbs;mnu sS . CakmµviFIkMuBüÚT½redIm,I eXIj/ B£ nig manRbtikmµelIBaØaNepSg² . Robotics: Problems with Expert Systems (and AI in general): b:unb:gedIm,ICMnYsmnusSkñúgkareFVIkarsMer ccitþ. FmµtamnusSmanehtuplfay:agdUcemþc EtBYkvaKµan. e.g. evC¢bNÐitmincg;eGaykarsMerccitþrbs;Kat;RtUv CMnYseday Expert systems CaCagcg;)anvaedIm,I RtwmEtCYy. 3.3. Working with Systems 22 skmµPaBénkarbegáIt b¤ EkERbeTAelIRbB½n§BaNiC¢kmµEdlmanRsab; . Systems investigation and analysis: kMNt;nUvbBaða nigcMNucl¥énRbB½n§EdlmanRsab; . Systems development: Systems design: kMNt;faetIRbB½n§fµInwgeFVIkary:agdUcemþcedI m,IeGayRsbeTAtamtMrUvkarBaNiC¢kmµ. Systems implementation: karbegáIt nigTTYlyksmasPaBRbB½n§Edl)ankMNt;kñúgeBl Design . Systems maintenance and review: RtYtBinitükarEkERbRbB½n§ faetIvabnþRsbtamkarpøas;bþÚréntMrUvkar BaNiC¢kmµrWeT . 23 Chapter 4 Competing with Information Technology 4.1. Strategic IT bec©kviTüaElgCaKMnitbnÞab;bnSMsMrab;bMerIe Gayvis½yBaNiC¢kmµeTotehIypÞúyeTAvijvaKWCa GñknaMpøÚvedIm,I eGayBaNiC¢kmµTTYl)aneCaKC½y. bec©kviTüaBt’manGacpøas;bþÚrnUvmeFüa)ayRbk YtRbECgkñúgvis½y BaNiC¢kmµ . y:agNamij TPS, DSS, MIS, etc. eRbIR)as;bec©kviTüaBt’manedIm,ICYydl;GgÁPaB dUcCa pþl;KuNsm,tþikñúgkarRbkYtRbECgkan;EtxøaMgkø a/ kat;bnßyKuNvibtþikñúgkarRbkYtRbECg b¤eFVIeGayQandl; eKalbMNgCayuT§saRsþrbs;shRKas . 4.2. The Competitive Environment 24 4.3. Competitive Forces and Strategies 25 4.4. Five Competitive Strategies Cost Leadership: CayuT§saRsþénkarERbkøayéføedIménkarpliteGay TabcuH/ CYykat;bnßyéføedIm rbs;Gñkpþt;pÁg; b¤ GtifiCn/ begáInéføedImrbs;édKURbECg . ]TahrN_³ WestJet–Online ticketing sMrab;kat;bnßytMélsMbuRt . Differentiation Strategy: CayuT§saRsþEdleFVIeGayplitplrbs;Rkumh‘unxus EbøkBIplitplrbs; édKURbkYtRbECg. RbEhlCaGnuBaØateGayGñkkat;bnßynUvKuNsm,t 26 þiénPaBxusEbøkrbs;édKURbECg. ykcitþTukdak;eTAelIPaKBiessNamYyénTIpSa . ]TahrN_³ Nike eRbI Online customer design, ABE Books eRbI Online sales edIm,IeFVIeGay xusEbøkBIGñklk;raytUc²epSgeTot . eRbIrebobfµIénkareFVIBaNiC¢kmµ/ eFVIeGayplitpl b¤ esvakmµmanEtmYyEdl eRbIbec©kviTüaBt’man/ eRbIrebobfµIEdlRbesIredIm,IbMerIGtifiCn/ eFVIeGayRbesIreLIgnUvKuNPaB b¤ RbsiT§iPaB/ kat;bnßyeBlevlaeTAelITIpSa/ eRbIKMrUénkarEbgEcktamrebobfµI . ]TahrN_³ Innovation Strategy: - Schwab – online discount trading to become a market leader FedEx – online package tracking to become a market leader and to lock-in the customers Government of Canada – eGovernment – self-service Air Canada vs. WestJet – Online booking Growth Strategy: BRgIksmtßPaBrbs;Rkumh‘unkñúgkarplit/ BRgIkcUleTAkñúgTIpSaBiPBelak/ eRbI viFanepSg²cMeBaHplitpl b¤ esvakmµfµI . ]TahrN_³ TMnijrbs; Wal-Mart bBa¢aTijtamRbB½n§kt;Rtatamry³ Satellite . begáItTMnak;TMng nigcgsm<½nmiRtCamYyGtifiCn/ GñkpÁt;pÁg;/ édKURbECg/ TIRbwkSa/ b¤ Rkumh‘undéTeTot . bBa©ÚlrYbrYmKña/ rksIuh‘unKña/ Virtual companies,... . eRbIR)as;bec©kviTüa B½t’manedIm,IbegáIt Virtual organizations énédKUBaNiC¢kmµ . Alliance Strategy: 27 4.5. Other Competitive Strategies Lock in Customers and Suppliers: eFVIeGayBYkeKraErkkñúgkargakeTArkPaKIxag RbkYtRbECg . Caeyabl; Businesses should bring value into your relationship. kareFVIkic©snüa . eFVIeGayGtifiCn nig GñkpÁt;pÁg; BwgEp¥keTAelIkareRbIR)as;énRbB½n§ Bt’mantamrebobfµI . Build in Switching Costs: bgçÚcTwkcitþ b¤ BnüaRkumh‘undéTBIkarcUleTAkñúgTIpSa . Erect Barriers to Entry: 4.6. Creating a Virtual Company A virtual company uses IT to link… – People – Organizations – Assets – Ideas – Competitors 4.7. A Virtual Company 28 29 Chapter 5 Supply Chain Management and Global Information Systems 5.1. Sharing Information Systems: The Rise of E-Commerce Interorganizational Information Systems: CaRbB½n§EdlGaceRbIedayGgÁPaBBIr b¤ eRcIn . Vertical Market: CaTIpSarEdlTMenjrbs;GgÁPaBBaNiC¢kmµmYyRt Uv)aneRbICavtßúFatuedIm b¤ smasFatu kñúgplitkmµ rW dMeNIrkarlk;énGgÁPaBBaNiC¢kmµepSgeTot . Horizontal Market: ral;Rkumh‘unBaNiC¢kmµTaMgGs;kñúgTIpSa Tij rW lk;plitpldUc²Kña ehIyBYkeKzit kñúgkarRbkYtRbECgKña . 5.2. Vertical Information Systems Vertically Related: lT§plénGgÁPaBmYyRtUv)aneRbIkñúgdMeNIrkarrb s;GgÁPaBdéTeTot . karRc)ac; bBa©ÚlnUvRbB½n§Bt’manrvagGgÁPaBCalkçN³ Vertically Related KWcMeNjx<s; dUcCakat;bnßykarcMNay fvika nig eBlevla RBmTaMgbMerIGtifiCn)anRbesIreTotpg. 30 5.3. Horizontal Information Systems Horizontal Information Interchange: GgÁPaBGnuvtþskmµPaBRsedogKñaedayEckcayBt’ma n. ]TahrN_³ - viTüasßanhirBaØvtßúEckcayB½t’manhirBaØvtßú . - Rkumh‘unGakascrEckcayRbB½n§kksMbuRt . 31 5.4. Electronic Data Interchange What is EDI? karepþaHbþÚrTinñn½yeGLicRtUnicedayeRbIRbB½ n§Bt’mansMrab;GgÁPaBeRcIn. sMNMuén Hardware, Software, nig Standards EdlpSM KñaeFVIeGay EDI dMeNIrkar . 5.5. Benefits of EDI 32 5.6. How does EDI work? 1. sMeNIrbs;GñkpÁt;pÁg;)anbBa¢ÚnCalkçN³eGLic RtUniceTAkan;GgÁPaBEdlTij. 2. kic©snüaeGLicRtUnicRtUv)anÉkPaBtamry³ Network . 3. GñkpÁt;pÁg;plit nigevcx©b;TMnij/ P¢ab;Tinñn½ydwkCBa¢ÚnenAelI Bar code . 4. cMnYnTMnijEdlbBa¢Ún nig tMélRtUv)anbBa©ÚleTAkñúgRbB½n§ nig naMeTAkan;kmµviFI eFVI Invoice bnÞab;mk Invoices RtUv)anbBa¢ÚneTAkan;GgÁPaBEdlTij . 5. GñkpÁt;pÁg;bBa¢ÚnnUvTMnijEdl)anbBa¢aTij . 33 6. GgÁPaBTijTTYlkBa©b;TMnij/ Scans nigepÞógpÞat;Tinñn½yeTAnwg bar code / Invoices tamcMnYnEdlTTYl )anCak;Esþg . 7. karÉkPaBbg;R)ak;RtUv)anbBa¢ÚnCalkçN³eGLic RtUnic . 8. FnaKarepÞrR)ak;BIGñkTijeTAkñúgKNnIrbs;Gñkp Át;pÁg;edayeRbI Electronic Fund Transfer (EFT) . 5.7. Supply Chain Management mincMNayR)ak;Tak;TgnwgsnñiFi/ karRKb;RKgpÁt;pÁg;TUTaMgdMeNIrkarplit KWBIGgÁPaBmYyeTAGgÁPaBmYy bnÞab;eTot . 34 RtYtBinitü nigRtYtRtaelI Supply Chain KW Supply Chain Management (SCM) . karGnuvtþn_ SCM KWRbtibtþikarcab;BIGñkpÁt;pÁg;rhUtdl;GtifiCn . KuNsm,tþi ³ - kat;bnßykarKitKUelIsnñiFi - kat;bnßyeBlevlaEdlRtUvcMNay - kat;bnßyéføplitkmµ 5.8. The Importance of Trust RbB½n§ SCM manRbsiT§bMputenAeBlEdlRkumh‘unCMnYjTaMg Gs;Edlzitkñúg Chain tP¢ab;RbB½n§rbs;BYkeK ehIyEckcayral;Bt’manEdlTak;TgeTAnwgEpnkarénk arplit nig dwkCBa¢Ún . minEmnRKb;GgÁPaBTaMgGs; enaHeTEdlsuxcitþ . RbB½n§GacRtUv)aneRbIenAxagGñklk; . 35 5.9. Multinational Organizations TIbBa¢akarkñúgRbeTsEtmYy/ RbtibtþikarN_EbgEckeTAkñúgRbeTsepSg² . sBa¢atirbs;Rkumh‘unminc,as; las; . 5.10.Using the Web for International Commerce mansar³sMxan;sMrab;kareFVIBaNiC¢kmµ B2B nig B2C. vapþl;»kassMrab;eFVICMnYjenAelIsklelak . Web 5.11.International Web Commerce Benefits Increased Revenues: begáInkarcUlrYmBICatisasn_nanatamry³ Web/ karcUlrYmBIGñkmanskþanuBl tamry³ web . Cost Savings: kat;bnßyéføe)aHBum< nig dwkCBa¢Ún/ kat;bnßyéføbMerIGtifiCn . 5.12.Challenges to Global Information Systems 36 Technological Challenges: ehdæarcnasm<½n§Bt’manminmanlkçN³ÉksNæan . Regulations and Tariffs: kar)armÖBIktþaCemøaHenAeBlRbtibtþi . Differences in Payment Mechanisms: viFIsaRsþkñúgkarbg;R)ak;cUlcitþrebobepSg²Kña . Language Differences: karyWty:avkñúgkarbkERb/ c,ab;hamXat;kñúgkareRbIR)as;PasabreTs . Cultural Differences: karRbkan;nUvvb,Fm’ . Conflicting Economic, Scientific, and Security kardak;kRmitrbs;rdæaPi)alelIkar EckcayBt’manEdldwg karpøas;bþÚrkarsm¶at;rbs;BaNiC¢kmµ, karGnuBaØat nig karrkSasiT§ . Interests: . Political Challenges: karP½yxøackarKMramkMEhgnUvGFibetyüPaBkñ úgkar Access eTAelIBt’man/ sm<aFBIrdæaPi)aledIm,IeGayTijEt Software rbs;CatixøÜn . Different Standards: kareRbIR)as;sþg;daepSgKñasMrab; Date Format, Measurements, etc. c,ab;énRbeTsnimYy²minsIuKña dUcCakñúg U.S nig Europe . Legal Barriers: 37 Chapter 6 Online Payment Processing Systems 6.1. The Payment Processing Network Acquiring Bank In the online payment processing world, an Acquiring Bank provides Internet Merchant Accounts. A merchant must open an Internet Merchant Account with an Acquiring Bank to enable online credit card authorization and payment processing. Authorization The process by which a customer's credit card is verified as active and that they have the credit available to make a transaction. In the online payment processing world, an authorization also verifies that the billing information the customer has provided matches up with the information on record with their credit card company. Credit Card Association A financial institution that provides credit card services and they are branded and distributed by Customer Issuing Banks. Examples include Visa® and MasterCard®. Customer The holder of a payment instruments such as credit card or electronic check. Customer Issuing Bank A financial institution that provide a customer with a credit card or other payment instruments. Examples include Citibank, Suntrust, etc. During a purchase, the Customer Issuing Bank verifies that the payment information submitted to the merchant is valid and that the customer has the funds or credit limit to make the proposed purchase. Internet Merchant Account A special account with an Acquiring Bank that allows the merchant to accept credit cards over the Internet. The merchant typically pays a processing fee for each transaction processed, also known as the discount rate. A merchant applies for an Internet Merchant Account in a process similar to applying for a commercial loan. The fees charged by the Acquiring Bank will vary. Merchant Someone who owns a company that sells products or services. Payment Processing Service A service that provides connectivity among merchants, customers, and financial networks to process authorizations and payments. The service is usually operated by a third-party provider such as VeriSign, Paypal, etc. 38 Processor A large data center that processes credit card transactions and settles funds to merchants. The processor is connected to a merchant's site on behalf of an Acquiring Bank via a Payment Processing Service. Settlement The process by which transactions with authorization codes are sent to the processor for payment to the merchant. Settlement is a sort of electronic bookkeeping procedure that causes all funds from captured transactions to be routed to the merchant's acquiring bank for deposit. 6.2. How Payment Processing Works Payment Processing-Authorization (Online): 1. Customer decides to make a purchase on Merchant's Web site, proceeds to check-out and inputs credit card information. 2. The Merchant's Web site receives customer information and sends transaction information to Payment Processing Service. 3. Payment Processing Service routes information to the Processor. 4. Processor sends information to the Issuing Bank of the Customer's credit card. 5. Issuing Bank sends transaction result (authorization or decline) to the Processor. 6. Processor routes transaction result to the Payment Processing Service. 7. Payment Processing Service passes result information to Merchant. 8. Merchant accepts or rejects transaction and ships goods if necessary. 39 Brick and Mortar: 1. Customer selects item(s) to purchase, brings them to cashier, and hands credit card to Merchant. 2. Merchant swipes card and transfers transaction information to a point of sale terminal. 3. Point of sale terminal routes information to the Processor via dial-up connection (for the purposes of the graphic above, the point of sale terminal takes the place of the Payment Processing Service in the offline world). 4. Processor sends information to the Issuing Bank of the Customer's credit card. 5. Issuing Bank sends transaction result (authorization or decline) to the Processor. 6. Processor routes transaction result to the point of sale terminal. 7. Point of sale terminal shows Merchant whether the transaction was approved or declined. 8. Merchant tells the Customer the outcome of the transaction. If approved, Merchant has the Customer sign the credit card receipt and gives the item(s) to the Customer. 6.3. Payment Processing-Settlement 6.4. Choose a payment processing service Pay-flow Pro Designed for merchants who want maximum customization, control and scalability. Pay-flow Link Designed for merchants who are just getting started on the Web or who have low transaction volumes. 40 Payflow Pro®: Scalable and fully customizable, the Payflow Pro service is recommended for merchants who require peak site performance and direct control over payment functionality on their site. Payflow Pro allows merchants to process payments through their Web site with a software download that includes a software development kit for simple API integration. Payflow Pro features credit card, debit card, and check processing as well as purchase card levels 2 & 3. Payflow Pro is integrated with most major shopping cart software. Payflow Link®: The Payflow Link service is designed for merchants who require a simple solution to selling on the Web. Payflow Link is a hosted order form service that allows a customer to securely input credit card information.To use Payflow Link, merchants need only add a small piece of HTML code that will link a customer from their Web site to the order forms hosted by VeriSign. Payflow Link offers merchants a simple package for payment processing, including credit card and check processing functionality as well as offline order processing. Payflow Link works with most major shopping cart software. 41 Chapter 7 Decision Making Model 7.1. Methods for Selecting Projects 1. Focusing on Broad Organizational Needs One method for selecting projects based on broad organizational need is to determine whether they first meet three important criteria: need, funding, and will. Need: do people in the organization agree that the project needs to be done? Funding: is the organization willing to provide adequate funds to do the project? Will: is there a strong will to make the project succeed? 2. Categorizing Information Technology Projects Another method for selecting projects is based on various categorizations. One type of categorization assesses whether projects provide a response to a problem, an opportunity, or a directive. Problems are undesirable situations that prevent an organization from achieving its goals. These problems can be current or anticipated. For example, users of an information system may be having trouble logging onto a system or getting information in a timely manner because the system has reached its capacity. In response, the company could initiate a project to enhance the current system by adding more access lines or upgrading the hardware with a faster processor, more memory, or more storage space. Opportunities are chances to improve the organization. For example, a company might believe it could enhance sales by selling products directly to customers over the Internet. The company could initiate a project to provide direct sales of products from its Web site. Directives are new requirements imposed by management, government, or some external influence. For example, an important customer might require that all of its vendors use a certain form of electronic data interchange (EDI) in order to do business with them. Management would then initiate a project to implement this form of EDI to maintain business with that customer. 3. Net Present Value Analysis, ROI, and Payback Analysis Net Present Value Analysis (NPV): is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash flows and outflows to the present point in time. Only projects with a positive net present value should be considered if financial value is a key criterion for project selection. Why? Because a positive NPV means the return from a project exceeds the cost of capital—the return available by investing the capital elsewhere. Project with higher NPVs are preferred to projects with lower NPVs, if all other things are equal. 42 The mathematical formula for calculating NPV is: NPV=∑t=1...n A/(1 + r)t -t : the year of the cash flows -A : the amount of cash flow each year -r : discount rate To determine NPV, follow these steps: 1. Determine the cash inflows (Projected benefits) and outflows (Projected cost) for the project. The cash flow each year is calculated by subtracting the costs from the benefits for each year. 2. Determine the discount rate. A discount rate is the minimum acceptable rate of return on an investment. It is also called the required rate of return, hurdle rate, or opportunity cost of capital. Most companies use a discount rate based on the return that the organization could expect to receive elsewhere for an investment of comparable risk. 3. Calculate the net present value. 43 Recall that the discount rate in this example is 10% or 0.10. 1. You can calculate a discount factor—a multiplier for each year based on the discount rate and year—for each year as follows: Year 1: discount factor = 1/(1+0.10)1 = 0.91 Year 2: discount factor = 1/(1+0.10)2 = 0.83 Year 3: discount factor = 1/(1+0.10)3 = 0.75 Year 4: discount factor = 1/(1+0.10)4 = 0.68 Year 5: discount factor = 1/(1+0.10)5 = 0.62 2. You can calculate the discounted costs each year by multiplying the discount factor by the costs for each year. Discount costs each year = (Discount factor) x (Costs for each year) 3. You can calculate the discounted benefits by multiplying the discount factor by the benefits for each year Discount benefits each year = (Discount factor) x (Benefits for each year) 4. To find the net present value, sum the discounted benefits plus the discounted costs NPV = (Total discounted benefits) + (Total discounted costs) Return on Investment (ROI): is net-income divided by investment. For example, if you invest $100 today and next year it is worth $110, your ROI is $(110-100)/100 or 0.10 or 10 percent. It is best to consider discounted income and investment for multi-year projects when calculating ROI. You can calculate the ROI for project 1 as follows: ROI = (Total discounted benefits – Total discounted costs)/Total discounted costs Payback Analysis: Payback analysis is another important financial tool to use when selecting projects. Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the net dollars invested in a project. In other words, payback analysis determines how much time will lapse before accrued benefits overtake accrued and continuing costs. Payback occurs when the cumulative discounted benefits and costs are greater than zero. Payback period = ∑ (Discounted benefits + Discounted costs) > 0 44 NPV, ROI, and Payback Analysis for Project 1 NPV, ROI, and Payback Analysis for Project 2 45 4. Models of Cost, Revenue, and Profit Fixed cost: is the portion of the total cost that does not depend on the production volume; this cost remains the same no matter how much is produced. Variable cost: is the portion of the total cost that is dependent on and varies with the production volume. R(X) = Unit Price x X C(X) = Fixed cost + (Unit cost x X) P(X) = R(X) – C(X) X R(X) C(X) P(X) : : : : Number of items sold Revenue Expense Profit 5. Simple Interest Fn = p(1 + ni) p n i : : : present value ¬cMnYnR)ak;EdleGayeKx©I¦ number of periods interest rate per period ¬R)ak;srubbnÞab;BI n period TaMgkarTaMgedIm¦ Fn : future value at the nth period th 6. Compound Interest Fn = p(1 + i)n period ¬cMnYnR)ak;EdleGayeKx©I¦ p : present value n i : : number of periods interest rate per period Fn : future value at the nth period TaMgkarTaMgedIm¦ 7. Job Evaluation Methods Ranking Classification Point rating – Responsibility – Education 46 ¬R)ak;srubbnÞab;BI n th – – – Skill Effort Working condition Example: Recruit Computer Programmer: Responsibility: O1 O2 O3 O4 O5 Education: O1 O2 O3 O4 O5 Skill: O1 O2 O3 O4 O5 Effort: O1 O2 O3 O4 O5 Working Condition: O 1 O2 O3 O4 O5 8. Overtime Payment 1. Hourly Employee Overtime Rate = Regular Rate * (1 or 1.5 or 2) 2. Salaried Employee Overtime Rate = (Salaries/Regular Hours)*(1 or 1.5 or 2) Ex: Mr. A Salary: 500$/Month Regular hours: 140h 150 : 500 + [(500/140)*1.5*10] Mr. B Rate: 7$/h 150 : (140*7) + (10*7*1.5) 9. Decision Tree Product: A Unit cost: 2000$ Sale person: 1 2 3 4 5 2500$ 1000$ 2500$ 3000$ 2500$ 47 Selling price: 2500$ 1000$ 3000$ Probability: 1/5 1/5 3/5 Expected value of A: (2500*3/5 + 1000*1/5 + 3000*1/5) – 2000 = 300$ Product: B Unit cost: 1000$ Sale person: 1 2 3 4 5 1500$ 500$ 500$ 2000$ 1500$ Selling price: 1500$ 500$ 2000$ Probability: 2/5 1/5 2/5 Expected value of B: (1500*2/5 + 500*2/5 + 2000*1/5) – 2000 = 200$ 2500 - 2000 3/5 1/5 1000 - 2000 300 1/5 A 3000 - 2000 B 2/5 1500 - 1000 2/5 200 500 - 1000 1/5 2000 - 1000 7.2. Project Time Management 1. Project Network Diagrams D=4 2 A=1 5 B=2 1 H=6 E=5 F=4 3 6 C=3 I=2 4 7 G=6 48 J=3 8 2. PERT/CPM PERT: Program Evaluation and Review Techniques CPM: Critical Path Method Project managers look for answer to the following questions: 1. What is the total completion time of the project? 2. What is the schedule start and finishes dates for each activity? 3. Which activities are "Critical" and must be complete "exactly" as scheduled? 4. How long can "non-critical" be displayed before they cause an increase in the total project completion time? Scheduling with known activity time: Activities A B C D E F G H I Activity Description Activities Predecessor Activities Time Prepare architectural drawing Identify potential new tenant Develop prospectus for tenant Select contractor Prepare building permit Obtain approval building permit Perform construction Finalize contracts with tenant Tenant move in --A A A E D, F B, C G, H 5 6 4 3 1 4 14 12 2 49 AEFGI : Critical part is the long path : Non-critical path ADGI ACHI BHI Note: EARLIEST START (ES) EARLIEST FINISH (EF) C 5 9 4 8 12 LATEST START (LS) LATEST FINISH (LF) 3. Gantt Charts Gantt charts provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format. 50 1.1 Sign Contract 1.2 Close Contract Chapter 8 Human Resource Information Systems HRIS consists of three subsystems: – Recruitment & Selection – Training & Education – Pay & Benefit Administration 8.1. Personnel Department Chart 8.2. Context Diagram 51 KWCa Diagram mYyEdleyIgcat;Tuk System Ca Process mYyEdlbgðajBITMnak;TMngeTA Entity . 8.3. Data Flow Diagram for Subsystem 52 8.4. Recruitment & Selection 1. Recruitment 53 The first part of the process of filling a vacancy i. Examine the vacancy - New workforce requirement - Replacement for people who left the company ii. Source of candidates Internal candidates: - Promotion - Demotion - Transfer External candidate: - Advertisement - Recruiting agencies - Colleges/University 2. Selection - Match applicants to jobs (Short list) - Interview - Medical exams 3. Data Flow Diagram (Recruitment & Selection) Find External Candidates – Get application form from applicants 54 – – – – – Match applicants to jobs and inform applicants in short list for interview Interview applicants and inform selected candidates for medical exams Get medical results from applicants and examine the result Generate job offer letter for successful applicants Store data of new employees in employee file 4. Entity for Recruitment & Selection 55 56 57 58 Chapter 9 Database Technology 9.1. Basic DB Terms Data: Meaningful facts, text, graphics, images, sound, video segments Information: Data processed to be useful in decision making Metadata: Data that describes data 9.2. Data in Context 9.3. Data: A Resource The Success of an organization depends on efficient use of its resources: Buildings, factories, equipment Technical know-how Human resources Data Data: An important organizational resource 59 9.4. Information 9.5. Metadata 9.6. Data Integrity Ensures that the stored data are consistent and correct Easy to define global rules customer_age > 21 years number_of_credits < 18 Can allow multiple users to access data without compromising on data integrity 60 9.7. Traditional File-Oriented 9.8. DBMS 9.9. Database Systems Collection of electronic data Central repository of shared data Stored in a standardized, convenient form. Requires a Database Management System (DBMS) 61 9.10.Database and Database Systems Database: Integrated collection of data Things, Entities, Relationships Self describing Data about data Database Management System (DBMS): Software for Develop, Implement, Manage, Maintain DB. Database System - Database, DBMS, Applications 9.11.Advantages of Central Database Reduce data redundancy – Same customer address for each Dept. Reduce data inconsistency – New real time updates for every Dept. Eliminate application-data dependency Improve data sharing Enforce standardization 9.12.Evolution of DB Models File processing system (traditional) Hierarchical Network Relational Object-oriented (Object-relational) 9.13.Hierarchical Database 62 9.14.Network Database 9.15.Relational Database A relational database is a collection of tables that are related to one another based on a common field. A common field is called a primary key(s): unique identifier in data model (ERD) When the primary key of one table is represented in a second table to form a relationship, it is called a foreign key. 63 Advantages Easier database design, implementation, management, and use Ad hoc query capability with SQL Powerful database management system 9.16.Relating Tables Using a Common Field 64 9.17.Database Applications Personal Database – standalone desktop database Workgroup Database – local area network (<25 users) Department Database – local area network (25-100 users) Enterprise Database – wide-area network (hundreds or thousands of users) 9.18.An Enterprise Data Warehouse 9.19.Data Mining Help to find hidden patterns and relationships in large databases to predict future behavior. 9.20.Components of the DB Environment CASE Tools – computer-aided software engineering Repository (data dictionary) – centralized storehouse of metadata Database Management System (DBMS) – software for managing the database Database – storehouse of the data Application Programs – software using the data User Interface – text and graphical displays to users Database Administrators (DBA) – personnel responsible for maintaining the database System Developers – personnel responsible for designing databases and software End Users – people who use the applications and databases 65 9.21.Database Development Process 66 67 Logical DB Design (Selection of DB model) Analyze database views (transactions, forms, displays, inquiries) required by the business function supported by the database Integrate database views into conceptual data model Identify data integrity and security requirements Create a stable and well-defined structure for the database 68 9.22.DB Development Schedule 69 9.23.Incremental Commitment in DB Development Project is reviewed at the end of each development phase Re-justify the process under the light of new requirements and available resources Renew commitment of stakeholders Continue / Revise Scope / Cancel 9.24.Database Schema The structure of a database system Defines the tables, the fields in each table, and the relationships between fields and tables. External Schema – User Views – Can be determined from business-function/data entity matrices – DBA determines schema for different users Conceptual Schema – ER models Physical Schema – Physical structures 70 9.25.Centralized Database Systems 9.26.Client/Server Database Systems 71 9.27.Distributed Database Systems 72