Professional Documents
Culture Documents
Professor Allen S. Lee states that research in the information system field
examines more than the technological system,or just the social system or even
the two side by side in addition it investigates the phenomena that emerge when
the two interact.
The system provides information on past, present, and project future and on
relevant events inside and outside the organization in the society. it may be
define as planned and integrated system for gathering relevant data,coverting it
in to right time. The main purpose of management information system is to
provide the right and correct information to the right people at right time.
9. It helps the clerical personnel in the transaction processing and answer their
queries on the data pertaining to the transaction the status of a particular record
and reference on a variety of documents.
A. Set up cost.
B. Work force.
C. Overtime rates.
D. Production capacity.
E. Capital requirement
D. Customer service.
8. Data base - The data is the mortar that holds the functional system together
each system requires access to a master file or data covering inventory,
personnel, vendors, customers, general ledger, work in progress and so on. If the
data is stored efficiently and with common usages in mind one master file can
provide the data needed by any of the functional system. It seems logical to
gather data once, properly validate it and place it on a central storage medium
that can be accessed by any system. However it is not unusual to find a
company with multiple data files, one serving one functional system and
another serving another system.
1 - Integrated processing
2 - Use of common modules
The control feedback loop is basic to system design. The computer can improve
the control process in several ways:
3. Reporting with computers can use irregular time interval which is very
difficult with manual processing and can be done more frequently.
Limitation
1. Aggression - The people may hit back at the system and may even sabotage
it by using equipment incorrectly by putting incomplete information into the
system or buy actual destruction of hardware or software.
2. Objectives and goals for the corporate in all key performance areas. These are
in line with the mission of the corporate.
Shareability
An ability to share data resources is a fundamental objective of database
management. Rather far reaching ramifications stem from the stated objectives
of shareability
Evolvability
Evolvability refers to the ability of the database management system to
change in response to growing user needs and advancing technology.
Evolvability is the system characteristics system that enhances the future
availability of the data resources. Evolvability is not the same as expandability
or extensibility, which imply extending or adding to the system, which then
grows ever larger. Evolvability covers expansion or contraction, both of which
may occur as the system changes to fit the ever changing needs and desires of
the using environment.
Adaptability
Adaptability is a more advanced form of evolvability in which built in
algorithms enable a system to change itself, rather than having a change made to
it. Adaptability involves purposive, self organizing, self controlling behavior,
that is, self regulation towards a single criterion of success, it is an ultimate long
term survival. System exhibiting adaptive behavior actively seeks a particular
state or goal by changing itself in response to change in it self or its
environment.
Integrity
The three primary facets of database integrity are.
The name database management was chosen recognizing that the different
names are in use and different types of system exist. Substantial generalization
is assumed in any database management system of interest without using it
generalized data is referred over information for the various reasons.
- Provide tools to access and update the data and produce reports.
- Inform and assist users in planning and using data resources and database
management tools.
- Maintain database integrity protecting its existence, maintain its quality and
controlling access to private data.
Creating
The needed information which is to be stored in the database is created first
using the appropriate software.
Storing
The created data are then stored up in the appropriate location in the database
file.
Protecting
The most important duty of the database is to protect the data stored.
Retrieving
Database management system derives from the data a logical record needed by
the application program.
Conclusion
We have seen briefly about the database management systems various
objectives, functions and purpose which provide a convenient accessibility in
managing the database of the management.
Integrity rules
Relation table follow certain integrity rules to ensure that the data they contain
stay accurate and are always accessible. First, the rows in a relational table
should all be distinct. If there are duplicate rows, there can be problem resolving
which of two possible selections the correct one is. For most DBMS the user
can specify that duplicate rows are not allowed, and if that is done, the DBMS
will prevent the addition of any rows that duplicate an existing row. A second
integrity rule of the traditional relational model is that column values must not
be repeating groups or arrays. A third aspect of data integrity involves the
concept of a null valve. A database takes care of situation where data may not be
available by using a null value to indicate that a value is missing it does not
equate to a blank or zero. A blank is considered equal to another blank, a zero is
equal to another zero, but two null values are not considered equal.
Object Oriented Database Concept
Agenda
Database
Manipulation of database
Types of database
Object oriented database
Basic concept of database management system (DBMS)
Common features of old and new database
The object oriented data model
Object oriented language
Some of the approaches to make object persistent
Database
Manipulation of Database
Types of Database
Uniformity
All the similarly sutured data items have the same size (in bytes).
Record orientation
The basic data items consist of fixed length records.
Atomic fields
Field within the record are short and of fixed length. Each fixed length holds
only atomic values. The database introduced recently may fail to have at leas
one of the preceding features.
1. Sources code.
2. Definition and use of variable.
3. Dependencies among software modules.
4. History of software system.
Multimedia databases
Multimedia database contains images, spatial data, audio, video, etc.
Hypertext database
Hypertext database supports the ability to retrieve document based on links and
to query documents.
Object - oriented database
An object oriented database is a newer structure that has been generating a great
deal of interest in recent years. It represents very different approach to the way
data is treated by database developers and users. The object oriented structure
groups data item and their associated characteristics, attributes, and procedures
into complex items called objects. Physically an object can be anything a
product, or event such as a house, an appliances, an art piece, a customer
complaints, or even a purchase, an objects is defined by its characteristics
attributes and procedures. An object characteristics can be text, sound, graphics,
and video. Examples of attributes might be color, size, style, quantity, and price.
A procedure refers to the processing or handling that can be associated to the
object.
1. Object structure
2. Object classes
3. Inheritance
4. Multiple
5. Object identity
6. Object containment
Possible languages into which the object oriented feature can be integrated
are:
Data manipulation language.
Persistent programming languages.
Persistent data
Data that continue to exist even after the program that created it has terminated.
Persistence of objects
Object oriented programming language has the concept of objects, which are
transient i.e. they vanish when the program terminates. If we wish to turn such a
language into a database programming language, first step to provide a way to
make objects persistent.
Data Warehousing
A data warehouse provides a common data model for all data of interest
regardless of the datas source. This makes it easier to report and analyze
information than it would be it multiple data models where used to retrieve
information such as sales invoices order receipts, general ledger charger, etc.
Prior to loading data into the data warehouse, inconsistence are identified and
resolved. This greatly simplifies reporting and analysis.
Marketing / retailing
Data mining can aid direct marketers by providing them with useful and
accurate trends about their customers purchasing behavior. Based on these
trends, marketers can direct their marketing attentions to their customers with
more precision. For example, marketers of a software company may advertise
about their new software to consumers who have a lot of software purchasing
history. In addition, data mining may also help marketers in predicting which
products their customers may be interested in buying. Through this prediction,
marketers can surprise their customers and make the customer's shopping
experience a pleasant one.
Retail stores can also benefit from data mining in similar ways. For example,
through the trends provided by data mining, the store managers can arrange
shelves, stock certain items, or provide a certain discount that will attract their
customers.
Banking / crediting
Data mining can assist financial institution in areas such as credit reporting and
loan information for example, by examining previous customers with similar
attributes, a bank can estimate the level of risk associated with each given loan.
In addition, data mining can also assist credit cards issuers in detecting
potentially fraudulent credit card transaction. Although the data mining
technique is not 100% accurate in its prediction about fraudulent charges, it
does help the credit card issuers reduce their losses.
Law enforcement
Data mining can aid law enforcers in identifying criminal suspects as well as
apprehending these criminal by examining trends in location, crime type, habit,
and other patterns of behaviors.
Researchers
Data mining can assist researchers by speeding up their data analyzing process
thus, allowing them more time to work on other projects.
Decision Making Topics:
Definition of Decision Making
Types of Decision Making
Objects of Decision Making
Advantages of Decision Making
Group Decision Making
Phases of Decision Making Process
Models of the Decision Making Process
Steps in the process of Decision Making
Information System
Components of Decision Support System
Function of Decision Support System
Definition of Decision Making
Managers make decision affecting the organization daily and communicate that
decision to other organizational members. Not at all managerial decision is
equal significance to the organization, some affect the large number of
organization members, cost a great deal of money to carry out, or have a long
term effect on the organization.
Types of Decision Making
Organizational models
Problem formulation
There is always a significant danger, when a problem is identified, as solving
the wrong problem. The purpose of problem formulation is to clarify the
problem, so that design and choice activities operate on the right problem.
Life is full of difficult decision for us to make, and no matter how simple we try
to make our lives, how many self help books or articles we read, how much we
try to learn from other peoples experience, etc.we always end up confronted
with a hard decision to make. There simply is no escape from it.
Group Decision Making
Abstract
Many managers like to believe that they are accomplished in such group
decision making processes as action planning goal setting and problem setting
and problem solving. However their ability to implement such techniques
effectively is often hindered by their lack of understanding of the dynamics of
these group decision making processes. As a result these managers often end
up perpetuating problems that they themselves create through their insensitivity
to the needs of other group members.
Phase 1 - Identification
This is the first phase in the decision making process. It involves identification
and the clear definition and formulation of the problem. In this phase a written
problem statement is prepared, which specifies the nature and magnitude of the
problem. It is necessary to determine how important and urgent the problem is
not well defined, the decision instead of solving the problem may complicate it.
This phase requires the manager to use his imagination, experience and
judgment in order to identify the real nature of the problem.
Phase 2 - Analysis
The second phase of the decision making process involves determining the
causes and scope. The problem should be classified to determine the futurity,
periodicity and impact of the decision required as well as limiting or strategic
factor relevant to the decision. The most important part in this phase is to find
out the real cause or source of the problem. Analyzing the real problem implies
knowing the cause of gap between what is and what should be and
understanding the problem in relation to the objectives of organization. In some
cases all the required information might not be available. In such a case, the
manager has to judge the risk involved in the decision.
Phase 3 - Search
After defining and analyzing the problem, the next phase of the decision
making process involves the search for the several possible alternatives. A
problem can be solved in several ways all of which are not equally good. A wide
range of alternative should be prepared this also increase the managers freedom
of choice. This is done in order to ensure effective decision making but it is
advisable for the manager to limit his discovery of those alternative which are
strategic or critical to the problem.
Phase 4 - Selection
The forth phase of the decision making process deals with comparing and
scrutinizing the various developed alternative to identify the pros and cons of
each. Also this phase requires certain criteria like feasibility, cost, organizational
goals, risk, timing, economy of effort, limitation of sources etc.
Phase 5 - Selection
The last phase is the most critical part of the decision making process. A wrong
choice would negate all effort made in the previous steps. The judgment may be
influenced by the intuition and personal value system of the decision maker. The
selected solution must be acceptable to those who must implement it and who
are affected by it.
Models of the Decision Making Process
Models are the tools of the decision making process which help the managers
to assess the situations before they have happened by mimicking the real
experiences and situation, without the expense of developing the situation for
real. Here the decision makers use simulation to try to mimic the way that the
firm or elements within the firm, will respond to changes in operating
characteristics sometimes mathematical techniques such as queuing theory or
linear programming are applied to mimic the real life situation.
- Conceptual models
- Iconic models
- Analog models
- Schematic models
Conceptual models
Conceptual models are those formed through our experience, knowledge and
intuition. They are further subdivided as
Iconic models
Iconic models are those that resemble what they represent, although the
properties of an iconic model may not be the same as those of the real system it
represent iconic models include physical and pictorial models.
Analog models
Analog models are those that are built to act like real system, although they look
different from what they represent. These models employ one set of properties
to represent some other set of properties possessed by the real system. An
artificial kidney dialysis machine that provides life support is an example of an
analog model.
Symbolic models
Symbolic models use symbols to designate the components of a system and
relationship among those components. They are abstract models in which
symbols are substituted for systems characteristics.
- Graphical representation
- Schematic models, and
- Mathematical equations
Steps in the process of Decision Making
2. Discovery of alternatives
The next step is to search for available alternatives and assess their probable
consequences. But the number of forces reacting upon a given situation is so
large and varied that management would be wise to follow the principle of the
limiting factor. That is management should limit itself to the discovery of those
key factors which are critical or strategic to the decision involved.
An information system differs from other kinds of system in that its objectives
is to monitor/document the operations of some other system which we can call a
target system an information system cannot exist without such a target system.
Areas of work
Information system has a number of different areas of work:
Each of which branches out into a number of sub disciplines, that overlap with
other science and managerial disciplines such as computer science, pure and
engineering sciences, social and behavioral sciences and business management.
Meaning
Decisions taken by a single individual are called individual decision.
Organizational decisions are those taken by a group of persons. Organizational
decision making is considered better because the knowledge and imagination of
a group is better than individual. Organization decision making also factors co-
operation and co-ordination in the organization. But group decision are those
which an executive takes in his official capacity and on behalf of the
organization.
Models
There are three models in decision making process they are as follows:
Features
3. It involves the evolution of alternative, only through evaluation one can come
to know the best alternative.
4. Decision making is a mental process, because the final selection is made after
a thorough consideration.
Todays decision support system generator provide the user with a wide variety
of interface modes styles menu based interaction mode command language style
question and answer interaction natural language processing based dialogue,
and graphical user interface use icon, button, pull down menus, bars and boxes
extensively and have become the most widely implemented and versatile type.
The interface system allows users access to.
Decision Support System varies in scope- some are intended for multiple users
more common nowadays and other is stand alone units common in the past in
addition to that, Decision Support System can take a many different forms and
can be used in many different ways i.e. some Decision Support System focus
on modes. Other on data and other on communication the better the manager
understand the different categories, scope and uses of Decision Support
System the better he will be able to specify requirements for a Decision
Support System that he wants to implement or buy.
Decision Support System provides varying analysis without much
programming efforts and is usually directed towards non technical
users/managers. Managers main uses for a Decision Support System include
searching retrieving and analyzing decision relevant data to allow them to
summarize main points which assist them in making more informed and
educated decision user often search for correlation between data without
rewriting the underlying MIS or software application and most Decision
Support System allows graphic capability which not only allows trend analysis
and reporting for top executive, but also assists managers in mapping out
conjoint analysis and alternative scenario to answer what is quires.
Consecuenlty, Decision Support System support both tactical and strategically
decision and are employed to leverage managers expertise in a certain field.
Decision Support System varies in scope- some are intended for multiple users
more common nowadays and other is stand alone units common in the past. In
addition to that can take on many different forms can be used in many different
ways i.e. some Decision Support System focus on models, other on
communication the better the manager understand the different categories,
scope and uses of Decision Support System the better he will be able to specify
requirement for a Decision Support System that he wants to implement or buy.
Strategic Planning Topics:
Features of Strategic Planning
Purpose of Strategic Planning
The Advantages of Strategic Management
Analysis of Organizational Information Requirements
Define and Evaluate Information Requirements for Organizational
Subsystem
Limitation of Management Information System
Development and Implementation of Managerial Information System
Implementation of Managerial Information System
Features of Strategic Planning
2. They are internal in source, and the business venture has absolute control
over their application.
3. Strategy can apply once after that it is process of application with no unique
element remaining.
a) What do we do?
b) For whom do we do it?
c) How do we excel?
In business strategic planning the third question is better how can we beat or
avoid competition? In many organizations this is viewed as a process for
determining where an organization is going over the next year or more-
typically 3 to 5 years, although some extended their vision to 20 years.
Purpose of Strategic Planning
1. Clearly define the purpose of the organization and establish realistic goal and
objectives consistent with that mission in a defined time frame within the
organizations capacity for implementation.
6. Bring together everyones best and most reasoned efforts to have important
value in building a consensus about where an organization is going.
9. Builds strong teams in the board and the staff in the case of corporation.
10. Provides the glue that keeps the board together in case of corporation.
11. Produce great satisfaction among planners around a common vision.
Discharge board responsibility - the first reason that most organization state
for having a strategic management process is that it discharges the responsibility
of the board of directors.
- Credit
- Leasing
- Maintenance
- Eviction and delinquency
- Marketing
- Advertising
- Accounts receivable and collection
- Corporate accounting
- Market and product analysis
- Client reporting
- Appraisal
- Insurance
- Sales
- Personnel
- Inspection
- Audit
- Inventory
- Legal
- what problem do you have and what information is needed for solving them?
- what decision do you make and what information do you need for decision
making?
- what factors are critical to the success of your activity and what information
do you need to achieve success in them or monitor progress?
- what resources are used in producing the end what information is needed to
measure efficiency in use of the resources.
Statement of purpose - the first step of the interview is to get the managers to
define a statement of purpose for the subsystem under consideration for
example, the purpose of maintenance was defined as maintain rental property at
satisfactory level with minimal cost and process vendor payments.
Resource requirements - the business requirements which define the high level
customer objectives and vision for the system, are used to determine the scope
of the system. When capturing the business requirements, it is essential that the
project team look at all aspects of the system, including
- Simple and fast access to data of various sources both internal and external
without data amount limitation.
3. System design- which builds upon the work performed during system
requirements analysis and result in a translation of the functional requirements
into a complete technical solution. This solution dictates the technical
architecture, standards, specification and strategies to be followed. Throughout
the building, testing, and implementation of the system the completion of
system design also marks the point in the project at which the project manager
should be able to plan in detailed all future project phases.
4. System construction- throughout which the project team builds and tests
various modules of the application including any utilities that will be needed
during system acceptance and system implementation as system components are
built they will be tested both individually and in logically related and integrated
grouping until such time as a full system test has been performed to validate
functionally. Documentation and training materials are also developed during
this phase.
6. System implementation- the final phase of the life cycle which comprises all
activities associated with the deployment of the application. These efforts
include training, installation of the system in a production setting and transition
of ownership of the application from the project team to the performing
organization.
Implementation of Managerial Information System
- input
- processor
- storage
- output
First, information in the form of gravitational force from the earth serves as
input to the system we call a rock. At a particular instant the rock is a specific
distance from the surface of the earth traveling at that instant only may be
considered stored in the rock.
10. Testing - once the code is generated, the software program testing begins.
Different testing methodologies are available to unravel the bugs that were
committed during the previous phase. Deferent testing tools and methodologies
are already available. Some companies build their own testing tools that are
tailor made for their own development operations.
Prototyping Model
This is a cycle version of the linear model. Once the requirement analysis is
done and the design for a prototype is made the development process gets
started. Once the prototype is created, it is given to the customer for evaluation.
The customers test the package and given his/her feedback to the developer who
refines the product according to the customers exact expectation. After a finite
number of iteration, the final software package is given to the customer in the
methodology; the software is evolved as a result of periodic shuttling of
information between the customer and developer. This is the most popular
development model in the contemporary IT industry.
3. Process modeling - The data objects defined in the data modeling phase are
transformed to achieve the information flow necessary to implement a business
faction. Processing the description is created for adding, modifying deleting or
retrieving a data object.
4. Application Generation - The RAD model assumes the use of the RAD
tools like VB, VC++, and Delphi etc... rather than creating software using
conventional third generation programming languages. The RAD model works
to reuse existing program components (when possible) or create reusable
components (when necessary). In all cases, automated tools are used to facilitate
construction of the software.
5. Testing and Turnover - Since the RAD process emphasizes reuse, many of
the program components have already been tested. This minimizes the testing
and development time.
E-Commerce Topics:
Introduction of E-Commere
The Advent of E-commerce
Types of E-commerce
The Scope of E-commerce
Supply Chain Application
What is E-commerce?
Advantages of E-commerce
The Business Model
Developments in Supply Chain Management
Business-to-business transactions in E-commerce
Business-to-consumer transaction in E-commerce
Electronic Data Interchange (EDI)
Introduction of E-Commere
The astonishing growth of internet and particularly the world wide wed has led
to a critical mass of customer and companies participating in a global on-line
market place. Business owners around the world are increasingly turning to
internet to increase the efficiency and profitability. A large number of companies
have come to the net to maintain a electronic presence, market products,
generate sales leads, provide customer support and open up electronic stores
that can be accessed by the internet users. Some benefit are enjoyed by these
companies include lower purchasing cost, lower overheads etc. the internet also
provides to be a great equalizer, allowing the smallest companies to compete
against the giants in the industry.
The Advent of E-commerce
Types of E-commerce
Business-to-business (B2B)
The internet can connect all business all business to each other, regardless of the
location or position in the supply chain. This ability presents a huge threat to
traditional threat to wholesaler and brokers. This category has been well
established for several years.
Business-to-consumers (B2C)
The business-to-consumers is focused on the use of a virtual of the World Wide
Web that allows an internet user to browse and order goods or services from
storefronts online catalogue. This category largely equates to electronic
retailing.
Business-within-business (intra-company)
Companies suited around the world are now implementing the applications of
web based technology to improve and transform their business communication
and processes. The-business-within-business e-commerce takes the intranet
beyond its popular role as a corporate and product information center.
The Scope of E-commerce
E-commerce beneficiaries:
Benefit to customers
Access to more information
Rapid response to needs
Lower cost and prices
Global choice
Easier market research and comparison
Benefit and opportunities to suppliers
Shortened supply chain
Substantial cost saving
Mass customization
Global presence
Competition on specialty
Improved competitiveness
Supply Chain Application
Supply chain application delivering the right product to the right place, at the
right time and at the right price is one of the most powerful engines of business
transformation. Supply chain application is a concept that is well known and
well used throughout the business world today. It has brought along many
changes in business that has produced long term benefits for companies and,
most importantly, consumers.
Definition
Supply chain management flows can be divided into three main flows.
The financial flow consists of credit terms, payment schedule and consignment
and title ownership arrangements.
Planning application use advance algorithms to determine the best way to fill an
order. Execution application track the physical status of goods, the management
of materials, and financial information involving all parties supply chain
application is based on open data models that support the sharing of data both
inside and outside the enterprise (this is called the extended enterprise, and
include key suppliers, manufactures, and end customer of specific company).
And downstream (with a companys suppliers) and a downstream (with a
companys clients) supply chain application has the potential to time the time-
to-market of product, reduce costs, and allow all parties in the supply chain to
better manage current resources and plan for future.
What is E-commerce?
1. E-commerce is the buying and selling the goods and service through digital
communication. It also include inter-company function such as marketing,
finance, manufacturing, negotiations and selling, that involves commercial
transactions and use e-mail, edit, eft, file transfer, fax, video conferencing or
interacting with remote computers. E-commerce also includes doing business
on the web.
2. Beginnings of E-commerce
E-commerce started in the 1970s, when some business houses started creating
private networks to share information with business partners and suppliers. This
process, known as Edi, involving transmitting standardizes data, saved a great
deal of paper and reduce the burden on the work force. EDI used the major
components of E-commerce.
3. Benefits
Convenience, speed, reduced costs and wider choice are some of the main
advantages of E-commerce. A seller can have access to a larger number of
customers, even those located physically far away. The customer has a wider
choice of seller are not required to meet at any one particular point, overhead
costs are drastically cut. Customers demand can be met even at the most
awkward hours, for no person is needed to conduct the trade.
These are two basic problem in the field of E-commerce security and privacy.
In the absence of stringent and well defined cyber laws, money transfer has
latent risks. Several cases of shipping off money illegally from customers
accounts have come to light. Secondly, people feel very uncomfortable while
giving information about their business on the net, for they are not sure of the
confidently of this information. But these are teething troubles and will be taken
care of in due course.
Advantages of E-commerce
Integration into the business cycle - a web site that is well- integrated into the
business cycle can offers customers more information than previously available.
For example, if Dell tracks each computers through the manufacturing and
shipping process customer can see exactly where their order is at any time. This
is FedEx did when they introduced on-line package tracking-FedEx made more
information available to the customer.
Traditional mail order companies introduce the concept of shopping from home
in your pajamas, and e-commerce offers this same luxury. New features that
web sites offer include.
Larger catalogs - a company can build a catalog on the web that would never
fit in an ordinary mailbox. For example, Amazon sells 4,000,000 books and
associated items. Imagine trying to fit all of the information available in
Amazons database into a paper catalog.
Definition
Purpose
Policy
Ensure that parties comply with Stanford names use the private policies.
1. Creation Era
The term supply chain management was first coined by an American industry
consultant in the early 1980s however the concept of supply chain in
management, was of great importance log before in the early 20th century,
especially by the creation of the assembly line, the chacteristics of this era of
supply chain management include the need for large scale changes,
reengineering, downsizing driven by cost reduction programs, and widespread
attention to the Japanese practice of management.
2. Integration Era
This era of supply chain management studies was highlighted with the
development of electronic data interchange system in 1960s and developed
through the 1990s by the introduction of enterprise resource planning systems.
This era has continued to develop into the 21st century with the expansion of
internet- based collaborative systems. This era SC evolution is characterized by
both increasing value-added and cost reduction through integration.
3. Globalization Era
The objective of every supply chain is to maximize the overall value generated.
The value supply chain generates is the difference between what the final
products is worth to the customer and the effect of supply chain expends in
filling the customers request the difference between the revenue generated from
the customer and overall cost across the supply chain. For example a customer
purchasing a computer from dell pays 2000 which represents the supply chain
receives. Dell and other stages of the supply chain incur cost to convey
information and transport the item and transfer find of 2000 that the customer
paid and sum of all the cost incurred.
1. Introduction
Supply chain management has received a lot of attention and the terminology
has been used (sometimes misused) by companies to describe the set of
manufacturing and logistics processes the result in delivering a product to their
customers. The supply chain encompasses all activities associated with the
flow and transformation of goods from the raw materials stage, through to the
end use as well as the associated information flows. Supply chain
management is the integration of these activities through improved supply
chain relationship to achieve a competitive advantage.
The globalization of the US soft goods industry has caused many companies to
examine the total cost of procurement. In general, the further the product is
made from the US market, the lower manufacturing cost and the higher the
logistics cost. A source on the side of the world may have the cheapest
manufacturing cost, but it will cost more to deliver. Keeping the correct balance
will pay off at the companys bottom line.
6. Manufacturing and logistics cost have inverse relationship.
The voluntary inter- industry commerce standards group has developed a set of
business processes called collaborative planning, forecasting and replenishment
which start with the premise that there should be one agreed upon view of
demand.CPFR pilots between retailers and their suppliers have shown that
sharing views of demand data demand data and collaborative on the differences
result in increased sales, higher in-stock positions and lower inventory. This is
accomplished because forecasting and planning processes increase in accuracy,
which makes the supply chain responsive to the consumer.
Business-to-business transactions in E-commerce
Introduction
The real power of e-commerce lies not in the direct sale of product to consumer
but in the integration of relationship among merchants and suppliers for prompt,
quality customer service. Business-to-business e-commerce is industrial and
marketing among the processes it handles are fulfillment and procurement. As
soon as an online purchase is entered and payment is approved through a credit
card clearance procedure a message is generally displayed saying, thank you for
your order. The amount of Sxxx will be charged to your credit card. The product
should reach within 5 to 7 working days. The moment the message is displayed
on the customers monitor, an electronic order is sent to the vendor to fill the
order and ship it directly to the customer. Doing this electronically means
reduced inventory and quicker service. However business to business is more
than fulfillment there is the potential for the internet to become like a central
computer system for all industries. Companies can conveniently and quickly
check their suppliers inventories or make instant purchases. Overhead should
decline as web- driven systems eliminate many of the traditional workers who
do the faxing and handle purchase orders. Competing online should also force
prices for materials and supplies to drop dramatically. An extranet is shared
intranet, deploying e-commerce within the larger community of an organization,
including its vendors, contractor, and key customer. Extranet is an extended
networks that share information with business partners via the internet. It is said
that more than 90% of business that sell goods to other companies will be doing
business on the web.
Introduction
EDI can also be used to transmit financial information and payments carried out
over EDI are usually referred to as electronic funds transfer (EFT).
EDI should not be viewed as simply a way of way of replacing paper documents
and traditional methods transmission such as mail phone or in person delivery
with electronic transmission.
But it should be seen not as end but as means to streamline procedures and
improve efficiency and productivity.
It also refers specially to a family of standard, including the X12 series. EDI
also exhibits its pre-internet roots, and the standard tend to focus on ASCII-
formatted single messages rather than the whole sequence of condition and
exchanges that make up an inter-organization business process.
The basic documents for transaction of business will be taken once by one
agency, and other agencies will take the information from the agency,
electronically, avoiding the need to either physically take the document from
one office to another or keying in the data again and again involving the
attendant problems of manual labor and errors creeping in at each stage of data
entry.
Standards of EDI
EDI has been established within various industries as a reliable and efficient
from of data transmission. It is a technical representation of a business
conversation between two entities, either external or internal or internal. From
its inception, EDI was applied differently within these industries and therefore
different standard were set up.
Benefits of EDI
Within various industries, EDI has been used to great advantage, and many
benefits have been expounded in its regard. EDIs benefits relate to environment
impact, improved time efficiency, improved accuracy and increased flexibility,
enhanced partnership, labor cost, shipping. EDI creates a system where by
documents and data can easily be transported from one source to another, and is
able to overcome incompatibility issues.
Specifications of EDI
Organizations that send or receive documents from each other are referred to as
trading partners in EDI terminology. The trading partners agree on the specific
information to be transmitted and how it should be used. This is done in human
readable specification. While the standards are analogous to building codes, the
specification are specification are analogous to blue prints. Larger trading hubs
have existing message implementation guideline which mirror their business
processes for processing for processing EDI and they are usually unwilling to
modify their EDI business practices to meet the needs of their trading partners.
Transmission of EDI
Trading partners are free to use any method for the transmission of documents.
In the past one of the more popular methods was the usages of a bisync modem
to communicate through a value added network (VAN). Some organization
have used direct modem connection and bulletin board system (BBS), and
recently there has been a move towards using some of the many internet
protocols for transmission, but most EDI is still transmitted using a VAN. In the
healthcare industry, a VAN is referred to as a clearing-house.