8/7/2018

The need for expanding ERP

• ERP connect separate business functions
ERP and related • Goals organizations strive for - operational efficiency, reduced costs,
high quality, personalized customer service, improved customer
technologies satisfaction, and profit margins
• Managers need reports that provide relevant information
• Slice and dice
• Managers need trends and patterns
• Integrating ERP data with other enterprises or divisions or intelligence
• With changing technologies - organizations to integrate their ERP with
other applications and continuously strive for their goals.

Business process re-engineering contd.

Business process re-engineering 1. Begin 2. Building the
organizational re-engineering
change organization
McDonnel Douglas – Integrated Manufacturing Control
• BPR … fundamental rethinking and radical re-design of business System St. Louis
processes to achieve dramatic improvements in critical, contemporary • Felt large vendor supplied ERP is not necessary
• BPR done from 1994 – 1996
measures of performance such as cost, quality, service, and speed – Dr. 3. Identifying • Customers were involved in the BPR
Michael Hammer 7. Perform the
transformation
BPR
opportunities • Starting point for BPR was biz processes and not systems
• BPR requires not just re-defining process with IT but… (clean state)
• IMAC integrated 38 systems – tested in 1995, modified in
• Organizational structure re-design 1997 and in 1999 all products migrated to IMAC
• Management systems, • IMAC measured – inventory, cycle time, cost delivery
performance, and product quality
• Job descriptions, skill development, training 6. Blueprint 4. • Work in-progress was much easier to identify; lead times
• A change that involves re-engineering comes with risk the new
business
Understanding
the existing reduced; fewer material shortages; lowered product costs.
system processes
• Vendors were Hewlett Packard (hardware), Oracle
• The need for change is known; what to change and how to change (database), and Western Data Systems (ERP)
• Six-Sigma – DMAIC; DMADV 5.
Reengineering
the process

Business process re-engineering contd. Business process re-engineering contd.

ERP and best practices • O’Leary developed 2 methods
• Challenges faced • Best practices – 800-1000 best • Clean state re-engineering
• Resistance practices included in SAP R/3 • Design everything from scratch – identify needs and requirements
• Best practice – superior to other • More expensive; slow; may not work with selected ERP;
• Tradition • Maintain competitive advantage
methods (benchmarking)
• Time requirements • O’Leary suggests this approach for large firms that have ample funds
• 20% of functionality needed by
• Cost ERP users is missing Scott & • Technology-enabled re-engineering
• Scepticism Kaindle (Information & Mgmt, • System is selected and re-engineering is attempted (constrained engineering)
2000) • System evolution – limited; competitive advantage?
• Job losses • All best practices may not be available
• Human values and biz purposes and
neglected in ERP application Taylor • Requires most change to organization – leading to complications in training, and
(Journal of Org Change Mgmt, changing human values.
1998) • The time, budget, and functionality look great but benefits?
• Training and cooperative participation • O’Leary – SAP R/3 16% planned reengineering; of this 33% felt no BPR is necessary
before implementation; of that 10% felt that after implementation
• The most common approach is take up BPR along with implementation

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Business process re-engineering contd. OLTP (Online Transaction Processing)

• Difficulty switching from legacy systems to ERP
• Rollback segments
• Russ Berrie and Co. makes teddy bears – used JD Edwards for CRM and • Read consistency in the vent of rollback
Financial applications • Clusters
• Phased approach and took 18 months • Schema – contains one or more tables (one or more columns).
• Multiple ERP systems • Improves join operations
• Mobil – SAP (US), JD Edwards (Asia-Pacific – lesser volumes • Discrete transactions
• Defers all changes to the data until transaction is complete
• Best practices standardized – resulted in lesser implementation of ERP
• Block size
• 18 months and $2.5 million to 6 months and $600,000 • Data block size should be a multiple of the OS block size
• Discouraged local customization • Buffer cache
• Requirements engineering – in ERP BPR takes this role. • Use database buffer cache size to avoid unnecessary I/O
• Dynamic allocation of space to tables and rollback segments

OLTP (Online Transaction Processing) cont. Data warehousing

• Transaction processing • Data used by business analysts requires
• Monitors and the multi-threaded servers • Ready access
• Partition • Separating it from operational systems
• Availability and load-balancing • Types of data collection
• Database tuning • Subject-oriented – customer, product, transaction, and so forth
• Integrated – filtering and translation of data from many sources into one
consistent database is integration
• Non-volatile – data in data warehouse is loaded and accessed bt not changed
• Time variant -

Data warehousing contd. Data warehousing (components)

Walmart’s data warehousing system
• 2,900 outlets; 101 terabytes; $4 billion Highly
Metadata Light summarized
• Initially stocked point-of-sale, and shipment data summarized data
data
• Later extended to include inventory, forecast, demographic,
Data
markdown, return, and market basket information. Including mart
competition; 65 weeks of data by item, by store, and by day
DB
• Processes 65 million transactions per week; 35,000 queries per week
• Information accessed by buyers, merchandisers, logistics personnel, Operational
Integration or
system of Archive
and forecasters, 3,500 vendor partners records
transformation
Programs

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Data mart Data warehousing and other components

• Data warehouses are intended as permanent storage

Operational
• Data marts DB Product type

• Created with a subset of data warehouse information, specific to certain users Analysis
• Freestanding data mart – quick and less expensive idea of data warehouse Extract, Data warehouse Data mining
OLAP cube
• A prototype for a future data warehouse Transform, Reports
& Load (ETL)
• Data marts assist data miners for mining of information
Time
External
DB
• Create new variables (ratios, logarithm or power) Geography

• Specific data necessary for mining (buying patterns, response to advertisements,

region specific, profitability of product
• Unlike data warehouse, data miners manage data mart Data Data Data
• Unlike data warehouse where finest granularity is desired in data mart aggregate Flat files mart mart mart
granularity is desired

Data warehousing contd. Data Quality

• Metadata management – Metadata is data about data.
• Load procedures and execution of load procedures • Data integrity
• ETL- Extract, Transform, and Load • Meaningless, redundant, and corrupt data not to be entered into the system
• Source vs. Target – normalized source schemas to denormalized target schemas • Data matching
• Table joins and the propagation of updates • Associating variables to unique categories
• Data transformations – Biz logic and intricate manipulations of data • Spellings, data checks, matching companies with addresses,
• Transaction-based loading – transaction in the source and the transaction at the
Datawarehouse. • Data validation and testing tools
• Aggregate totals to check data accuracy
• Load control and auditing
• Audit trail; load dependencies
• Data warehouse recovery
• Backup tapes; rollback points;

Data Mining Data Mining contd.

• Collection - Retrospective nature and dynamic data delivery • Data discovery and verification
• revenue • Query (discovery) and analysis (hypothesis - verification)
• Access – Aggregate the data at the next higher level – for e.g. region • Multi-dimensional visualization tools
• Category proportions or counts: pie chart; bar chart; histogram
wise
• Relationships between variables: scatter plot; line chart; box-whisker plot
• Warehouse and decision support – aggregate the data at the next higher • Process Review Report
levels – multiple levels of reporting Results results
• Search for pattern
• Data mining – predicting/prospective nature and proactive information • Revise and refine query
delivery • Review results
Refine
• Statistics; artificial intelligence; machine learning • Report results Pattern Query
query

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Online Analytical Processing (OLAP) OLAP contd.

• Unlike OLTP that focuses on transactions, OLAP focuses on decision- • OLAP server connects
making • Statistical package; GUI; Spreadsheet
• Hierarchical database (data organized into tree like structure); RDBMS; flat
• Before OLAP, these systems were termed as decision support systems files
• Integral component of data warehouse but not a data warehouse • Key features of OLAP – multi-dimensional views; complex
• Uses multi-dimensional analysis calculations; time intelligence
• Multi-dimensional views –
• OLAP systems evaluated based on deriving information from data
• Business models rarely are limited to fewer than 3 dimensions
• OLAP to enable analysis across any dimension, any level of aggregation, and
ease
• Consistent response times irrespective of the complexity of the query

OLAP contd. Database concepts

• Complex calculation • File-based systems
• Perform more than simple aggregation • Data redundancy and inconsistency
• KPIs require algebraic equations • Unanticipated queries
• Sales forecasting – trend algorithms • Data isolation
• Security and integrity problems
• Time Intelligence
• Period over period comparisons • Database systems
• Collection of inter-related data with minimal redundancy to serve multiple
• Styles of OLAP applications
• Multidimensional OLAP – pre-defined analysis on multiple dimensions • Types of databases
• Relational OLAP – unrestricted access to large volumes of data • Hierarchical
• Hybrid OLAP – intensive analysis (combination of MOLAP and ROLAP) • Network
• Desktop OLAP – pre-defined, flexible analysis, multiple users • relational

Database concepts cont. - RDBMS Database concepts cont. - RDBMS

Customer

Cust No. Customer name Address City Primary Key

15371 Siemens PLM California Cypress Relationship properties
…. Cust No. Customer name Address City • No duplicate tuples
relation 15371 Siemens PLM California Cypress • Tuples & attributes are unordered
Contacts Orders
Cardinality• Attribute values are atomic
Cust No. Contact Designation Order No. Order date Cust No ….

15371 Mike CEO 3216 1-Aug-2017 15371 Integrity rules

• No component of primary
Parts Attributes
Parts Ordered keys can be null
Parts No. Parts Description Part price • Database must not contain
Order No. Part No Quantity Degree
53 USB Mouse 500 Tuples any unmatched foreign keys
3216 C1 300 • Deletes/updates of parent
Sales History 3216 S3 125 • Restrict
Part No Region Year Units • Cascade
• nullify
C1 East 2017 2000
S3 North 2017 5500

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Database RDBMS – relational cont.

• Relational Algebra Operators • Union
• Select – SELECT Orders placed by customer number 002 • Intersect
• Product – A • Difference
A X
X
B A Y
C
Y
B X
• Join
B Y • Divide
C X
C Y • Views
• Virtual relations
• Store definition of the
view and not the view