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Midterm Review Notes
4 Messerschmitt 3.1, Overview and exmaples
• Organizational Applications [Messerschmitt pp60-72]
– Departmental Applications
supports a single functional dept.
– Enterprise Applications
supports enterprise-wide processes and goals
– Commerce Applications
supports organizations engaging in commercial relationships w/ one another
• Customer Care or Customer Relationship Management (CRM) [see slides]
• Batch transaction processing [see slides]
Transactions are accumulated over a period of time and processed periodically
• On- line Transaction Processing(OLTP) [Messerschmitt 72-73]
Transactions are processed immediately
• Workflow [Messerschmitt 73-75]
• Human Resource Management (HRM) [see assignment #3]
5 Messerschmitt 3.3, Enterprise Applications
• Business Transformation (Business Process Re-engineering, [O’Brien Ch2]) [Messerschmitt pp77-78]
• ERP (Enterprise Resource Planning) [Messerschmitt pp79-81]
• Decision Support [Messerschmitt pp81]
• Knowledge Management (also in [O’Brien Ch2])
6 Messerschmitt 3.4, Electronic Commerce
• Electronic Commerce [Messerschmitt pp83-89]
• 3 types of e-commerce [Messerschmitt, Table 3.4, pp84]
• 4 steps in a typical e-commerce transaction [Messerschmitt, Table 3.5, pp85]
– Matching Buyers and Sellers
Catalog, Advertising, Intermediary Recommendation
– Negotiating Terms and Conditions
Auction, Fixed Price, Price Discrimination
Order, Fulfillment, Payment
– Customer Service
• Consumer Commerce (B2C)
• Inter-consumer Commerce (C2C)
• Inter-enterprise Commerce (B2B) [Messerschmitt, pp92-95]
one enterprise purchases goods/services from another
* Direct Procurement [Messerschmitt, Table 3.7, pp92]
obtain raw materials/parts that are directly incorporated into products and service ongoing,
consistent and scheduled procurement focusing on long-term supply relationship
* Indirect Procurement [Messerschmitt, pp 95]
sporadic purchase of goods and services to support organizational objectives
– Supply chain Management (SCM)
– Mass Customization
eg. Dell, integrating business logistics.
– Electronic Data Interchange (EDI)
replace paper invoices and purchase orders, together with FEDI (Financial EDI) automated
existing inter-enterprise business processes.
• Customer Relationship Management (CRM)
find users w/ similar interests/purchases/visits recommend products based on similarities between
the role of intermediaries in e-commerce, B2C/C2C/B2B
7 Messerschmitt 4, Information Technology
• Data vs. Information [Messerschmitt pp108-112]
BIT ( BInary digiT ): 0/1 Data: collection of bits
text, numbers , as well as other media.
* From application perspective, Information is defined from user’s perspective as patterns
or meaning that influence the user in some recognizable way.
* Within the context of Information Technology, Information is defined more narrowly, as
”structure and interpretation added to data ”.
• Information represented as data
– Information → Data : Representation
– Data → Information : Data Processing
Data processing is based on presumed structure and interpretation imposed on data, otherwise
the information could not be recover (at least correctly ) from the data.
– Make a precise copy of the data (copy bit by bit). If the structure and
”Representation”) is known, then the information is actually replicated as well along w/ the
– Several implications (see slides)
8 Messerschmitt 4.3, System Architecture
– System: a composition of subsystems that cooperate to accomplish some purpose
– Subsystem: an element within the system that performs some well-defined action on behalf of
• System Architecture Elements [Messerschmitt pp115, Table 4.2]
– Decomposition: partitioning the whole system
– Functionality: specialized capabilities assigned to each subsystem
– Interaction: subsystems cooperate together to support the system’s goal
• Why architect systems in this way?
– Divide & conquer reduce complexity
– Reuse components
– In accordance w/ industry structure, etc.
• Emergence [Messerschmitt pp116]
Higher- order behavior emerges because the subsystems are composed.
9 Messerschmitt 4.4, Networked Computing Infrastructure
• Infrastructure Software Layering [Messerschmitt pp120-121, Figure 4.7]
• What is the benefit of architecting software with layers?
– Achieves additional capacity by incrementally adding to a specific layer
without affect other
– The implementation of one layer is hidden from all other layers.
– Both of the above simplify the initial design and implementation ( Divide and Conquer ) and
• Operating System
Hide equipment details from layers above
– Sits between Application/Operating System.
– Isolating an application partitioned across hosts from differences among various operating
systems of their host.
– Hide OS details from applications.
• File System
A collection of data managed for the benefit of the application
* Size known, structure & interpretation is unspecified (which depends on the corresponding
– A file system is part of every OS.
– Provides standard services related to files, such as creating, accessing, etc.
• Database Management System
– Database: a file containing interrelated data w/ specific predefined structure
– DBMS: manage multiple databases , basis of OLTP
• Network Functions [Messerschmitt pp122]
Allows hosts (computers connect to network) to communicate authorization/authentication; Message
10 Messerschmitt 4.5, The Internet
“Inter-connected networks”, a network of networks standard ways to interconnect networks
A specific internet the major global internet
• intranet private internet, for exclusive use within an enterprise
– Composed of intranets connected through an unprotected domain (typically the
– Using encryption and other security technologies to protect confidentiality
11 Case Studies
Please read the case studies in the Reader and summarize answers for those question by yourself.
• What was the HHC?
Hand Held Computer, for each salesperson to carry around, log sale transaction data
• *What are the benefits of the HHC project?
Improve accounting; Reduce paper work; Segmentation and Miro-marketing; Replace optical scanners
(stopped support by IBM).
• What were the main reasons why Frito Lay deployed the HHC?
• What changes in marketing strategy did Frito-Lay believe the HHC data would
Micro-marketing (manage small brands, negotiate shelf space)
• How might the HHC project change Frito-Lay’s competitive position with its
new entrants, and its customers?
• What are some of the actions that Cisco took that contributed to the
successful deployment of their
Top personnel, cross-functional group; Consulting KPMG; Locate “hungry” vendors; Priority management
policy; Rapid Iterative Prototyping.
• What mistakes did Cisco make?
Poor testing strategy; Inadequate hardware (yet, they’ve got a favorable hardware contract); Substantial
modifications later, more requirements than the vanilla version supported.
• What are the most important lessons that another company that wants to deploy
ERP could learn
from Cisco’s experience?
• How did Alibris plan to change Interloc’s revenue model?
Eliminate the listing fee of Interloc, yet, mark-up the price of the books.
• What were the potential benefits and risks of this change?
• How did Alibris plan to avoid becoming dis-intermediated?
More quality control; Order fulfillment facility.
• Why did Alibris abandon Thunderstone software, and why did it choose to switch Oracle?
• What made Alibris’ IT challenge particularly difficult compared to what other