Database Systems

Information Systems:the connection of people and resources for innovation

Industrial and Systems EngineeringRensselaer Polytechnic InstituteTroy, NY 12180-3590ISYE 4530 Information SystemsOMIS - #

OMIS - #Quiz: the opening of your IS mind for lifelong learning and innovationName two most powerful (and obvious) information systems (IS) in your world are you a stakeholder there?Give top five examples to show why you cannot live without the Web at work/school as well as for daily life Show that students anywhere in the world increasingly can learn from the same materials as you do in the US, and compete for your job (or collaborate with you)Make a case that your IE skills are predicated on IS (think data collection, parameters of models, and input to R)Make a case that every IE job uses/needs IS (Excel)Who should provide you the IS YOU need? Is YOUR value depending on always having the right IT help around?Who designed iPhone, Facebook, the Web? And how?IS is a human value network; but what could it mean?

OMIS - #First, let us define what is Information System from a connectionist view

Information System (IS):the networking of IS Elements (people, processes, information resources, computing platform, and communications infrastructure) in the connected world for value creation.

Questions:What is networking?What are IS elements?What is the connected world?What is value creation?OMIS - #The Great Migration of Work ForceCIA Report 2009 - 40 years growth of Service: (%A,G,S)China: 142 % (49%, 22%, 29%) Model A: with increasing GRussia: 64% (10%, 21%, 64%)Brazil: 61% (20%, 14%, 66%)Japan: 45% (5%, 28%, 67%) Model B: with decreasing GGermany: 42% (3%, 33%, 64%)India: 35% (60%, 17%, 23%)Indonesia: 34% (45%, 16%, 39%)US: 23% (1%, 23%, 76%) fastest in any sector since 1950UK BRS 2009: 82% STEM graduates working in ServiceClear parallel to the IT/Information/Comm growth

Moral of the story: knowledge economies are service-oriented economies. What is service? OMIS - #

An IBM Vision: the Smarter PlanetWhat is smart? How does it concern an IE?Are they all information systems? Smart traffic systems Smart water management Smart energy gridsSmart healthcareSmart food systems Intelligent oil field technologies Smart regionsSmart weather Smart countriesSmart supply chains Smart citiesSmart retailOMIS - #6SSMED stands for Service Science, Management, Engineering and DesignSSMED is an emerging discipline that creates professionals who work well in collaborative teams of scientists, managers, engineers, etc.SSMED is an interdisciplinary approach to the study of human-made systems that interact with planetary systems to serve customers, and thereby improve quality of life for people.

(The Royal Society report mentions SSME in the Glossary a welcome new program of interest to employers)

Smartness Riddles What is it?What does a connected world mean isnt the world always connected?How could National Grid, Time-Warner, Microsoft, OnStar and the whole world be connected at your command?Where does the new smartness lie in the connected world?Isnt the smart connection built on enabling analytics as much as on information resources and IT infrastructure?How can you plot a revolution or promote a cause using FaceBook, Twitter, Google, YouTube, mobile Apps? Who first achieved giga-, tera-, peta- and exa-scale (10 to 18th) computing? 1M+ SETI PCs, 40K PS3 folding@home, ~1M BOINC PCs at HOME Who designed smartness? Who promoted smartness? What is human value network? (people collaborate to create values using the smart connections; businesses thrive from facilitating this value creation, via free services and personalization) Can you expand yourself this way?

What is the role of IS in this smarter world? The ISE role?OMIS - #When IE Collides with IS and Network Science: the Networked InnovationWhat is the largest information system in the world (or indeed in human history)? Who invented it? Who created it? Who continue to grow it? (all for one and one for all)What smartness does this IS possess? (enabling analytics) Can you name some Web sites that provide connection (use interface), analytics, resources, computing, and infrastructure for your use? (open sources and providers) Who substantiated Facebook, Wikipedia, open sources, social networks? Who gave smartness to smart phones? (speedy grassroots innovation by serendipity)What is networked innovation? (human value networks)What is the role of STEM in networked innovation?What is the Small World Phenomenon? Scale Free laws? What is a hyper-network?Does networking require analytics?What is the ISE role in this big picture? OMIS - #Now, look closerHow does the Web concern you? Your study? Your life? What are the basic (IS) elements that constitute this IS? Can you interpret the Web as systems of IS? How? What does this system comprise - i.e., what are the basic elements of this IS? Can you generalize them for all ISs?How does this IS compare to RPIs Student Information System (and the difference is not their scale)?What are SIS IS elements? How does it work (who controls what; and how can it be used to do your transactions)?If every IE job has an SIS of its own (using, e.g., Excel) then, why should these systems be connected? (Access)Does the Web conduct all transactions for you in a tightly controlled manner similar to SIS? What does it miss?

Do you expect the Web to evolve into a personal resource (iWeb?) to help you further life aspirations?

OMIS - #The Basic IS Elements: They constitute the Enterprise Information Architecture

People: end users (using the IS to perform non-IS jobs), Professional IS staff (IS jobs: administration, support), and personal digital access tools to the IS (chip, smartphone, etc.)Process resources: enterprise analytics and processes (application programs, decision and control models, user interface and other software for processing information)Information Resources: digital software assets (media files, databases, knowledgebases, documents, and repositories of digital tools, models, and methods).Computing Resources: digital hardware (servers, clients, and other information acquiring and processing devices). Infrastructure Resources: networks and (wired or wireless) telecommunications systems

Where do YOU, the IE, belong in this IS worldview?OMIS - #Quiz: What system of IS makes amazon.com and netflix.com tick?The Web presence and personalized marketing (retailing offerings and proactive advertising and/or recommendation by personalization analytics)The data center (production with information resources)The logistics centers (distribution of physical products)The business center (administration and finance)

What integrates these centers/systems? What are the basic IS elements of the integration? How do these IS elements encompass all enterprise systems/centers and thereby connect them together?

Can you name some basic types of data and business analytics/processes for the Enterprise IS?OMIS - #Quiz: Understand the Web as an ISBriefly answer the following questions:Consider the whole Web as an IS: what are its core IS elements? Is RPI SIS a part of this IS?Name some of the core IS elements for Amazon.com, Netflix.com, and Google.Conceive an IS that is built from connecting Facebook, Twitter, Google, and some other Web sites of your choice. That is: First, define a particular mission (value proposition) for the IS using the Internet; e.g., promoting world peace by synchronized meditation; campaigning for someone or some cause by social networking; or selling your resume by ? Second, determine the particular IS elements needed for such an Internet-based IS (e.g., for synchronized meditation). Finally, recognize the open sites/sources that contain some of these elements for you to connect and build the particular IS. Adjust your mission to fit these available resources.What are Web services and SaaS? How can you use them to develop additional IS elements such as analytics for your IS; or in general, for any enterprise IS?

OMIS - #Analytics: customer recommendationHow do Amazon.com and Netflix.com make product recommendations? Is this e-marketing important to YOU? Which company does it better? (accuracy and versatility)What kinds of data you must have? (records and attributes on customer, product, and order)What is the basic logic of recommending based on similar customers? (define similar, clustering attributes, data)What is the basic logic of recommending based on similar products? (define similar, clustering attributes, data)Can you network customers and products to do better? (define the dynamic behaviors of purchase, data)Suggest some simple ideas to improve search/chaining on YouTube (recent viewings)? Ideas for Nteflix.com? What basic data and statistics do these ideas require? Moral: search and recommendation are Web marketing. OMIS - #Exercise: Build dynamic behaviors A simple-minded algorithm based on similar customers Step 1: determine a set of defining attributes (say, 10) for similar customers and collect/analyze data on them. Some of the attributes must indicate the customers preference for product types using, e.g., survey (rating) and past records. Step 2: compute the similarity indicator, S-C(i) = w(j)a(j) over j attributes for each customer i, then group customers based on their S-C(i) scores (or use other schemes) Step 3: recommend the additional products that the similar customers prefer most (statistics) add specific detailsWhy is this scheme unsatisfactory? (Static, Aggregate)Improvement? (use purchased items over preferred types) Develop a basic algorithm for using similar products S-P(i) Develop an algorithm using customers-products networking (compute similar behaviors from rating/purchase and regress them on attributes, by sub-groups; need database design)OMIS - #

OMIS - #Information System: the connection of people and resources for innovationThe world is connected through digitization - Think human communications (e.g., mails, phone, and TV) Explain the difference amongst letter, fax and emailThen, consider the changes in information resources (books, photos, movies); physical objects and environment (cars, machines, buildings, highways) and even humans; mechanisms of transactions Is there an end to the list? Explain, what are RFID chips and wireless sensor networks?Isnt the difference being the scalability of connection?Now, explain what is the connected world? What is underlying the scaling of economic activities? How are you personally connected? What service models do mainframe computer, PC/the iPad, and cloud computing represent?Isnt it being the scaling of digital connections? OMIS - #Innovation: Digital Connections Scaling (society-scale digital convergence)Digitization: the platform. What to digitize - IS elements. (Recognize IS elements in the smartness riddles.) Connections: the convergence. What to connect - IS elements. (Indicate what elements to connect in the riddles.) Scaling: the value. What to scale - IS elements. (Explain the scope of connection in each of the smartness riddles.) DCS: the vision of design, driven by value propositions.What is Digital Connections Scaling up, down, and transformationally? Use the smartness riddles to answer. (enterprise assets, personalized assistance, new design).What is Service? Service Science? Knowledge Economy? (value proposition, value cocreation, and scaling)

Digital Connections Scaling (DCS) is all for one and one for all (open accumulation, networking, and ecosystem)

OMIS - #Digital Connections Scaling: scale up, down, and transformationallyScale Up: cover the whole domain (population) of the economic activities intended and accumulate reusable resources and knowledge from the population and about the population ex. Internet search enginesScale Down: personalize for individual customers or users by using the accumulated population knowledge, to facilitate personal life cycle tasks ex. e-Marketing Scale Transformationally: configure new business designs and models to better utilize the accumulated resources and the personalized capacity to create new basic values ex. e-Commerce and social networking

Moral: value drives DCS; DCS achieves innovation; and IS achieves DCS this is IS for innovation. OMIS - #Your Innovation: think DCSHow can you check numerous credentials (for, e.g., hiring)?How can you manage exotic animal imports with few staff? Whos afraid of IRS digital reforms?Who cares about Radio-Frequency ID? (Listen to the battle cry from Wal-Mart and homeland securityand the global outsourcing to CHINA and INDIA?)How do Twitter, FaceBook, YouTube, Buzz, LinkedIn, GoToMeet, World of WarCraft, and Google make money? How can IBM, mom-and-pops, and YOU use the Web to do the same (innovation)?What might be the next waves of e-Commerce/e-Business? (Just when you think its safe to forever trash the Internet hypes and bash the dot-com suckers)Now, can you the industrial engineer identify some basic enterprises processes, applications, or systems that any innovation must investigate to change? OMIS - #A Humbling IS Project: The Universal Library by Google and Partnering LibrariesThe Recorded Human History:- 750 million books and volumes- 25 million songs and music works- 500 million paintings and drawings- 500 Thousand movies (feature films) - 3 million short films and TV programs- 100 billion homepagesTotal: 5,000,000,000,000,000 bits (5PBs)Digital Library Projects: The Library of Congress, Amazon.com, Stanford, Google Britain, EU, Japan, China (post 1949 publications)Issues: copyrights, business models, liberty

Who cares and why bother? (think DCS for business)

OMIS - #Basic Principles of IS PlanningBasic values of IS: the reduction of transaction cost and cycle time. (IS evaluation)Innovation: networked/collaborated creation of value to renew products/services, and shared utilization and/or concurrent processing of resources to improve quality and productivity. (IS strategic planning)Enterprising: the design of connection of IS elements to realize the innovation. (IS engineering)Sustainability: the openness, scalability, and re-configurability of IS (IS master plan/roadmap)Embedment in societal cyber-infrastructure: the use of open source technology for IS. (IS design)Person-centered: the deployment/collaboration of IS resources around people. (IS construction)OMIS - #Quiz: What are the basic values of IS?Briefly answer the following:Why do people throw away bottles but not nickels?How can you measure the value of an IS to a professional who uses the IS to get information (from colleagues)?What is the transaction cost of buying/selling a house?If a project requires 1,000 man-hours, then what is the minimum labor required to complete it in one hour?How can you turn a sequential office workflow (e.g., job interview) into concurrent and reduce its overall cycle time?How can you measure the value of cycle time reduction?Economists consider a human organization an information processor for facilitating data handling, information exchange, and decision making among all the stakeholders to discharge their common missions. According to this theory, what is the role of IS in the Knowledge Economy?

OMIS - #Performs mundane data acquisition and processing jobs; such as sales, human resources, and inventoryProvides routine operational and managerial information for organizational control; such as sales/competition analysis, performance statistics, and production statusSupports executive decision making and furnishes on- demand decision information; such as strategic reviews, customer relationships/knowledge center, new product planning, and short-term/long-term goal setting Enables online transactions of various scale, timeliness, and automation, and sharing/flow of pre-determined or requested information across the organization; such as point-of-sale, e-retailing, e-marketing, and much more Pro Forma IS Activities: the basic nervous system tasks for the enterpriseOMIS - #

OMIS - #Information System Engineering: innovate the value chain by DCSDigitization: build/expand IS elements - convert paper-based data resources, manual processes, and user access into (proprietary) digital systems (IS), typically focusing on individual applications and functions (islands of IS).Enterprise Transformation: connect IS elements integrate systems to reduce transaction costs and cycle time (scaling up: enterprise assets; down: personalized reuse; transformational: process simplification and fluidity).Enterprise Collaboration and Beyond: globally connect IS elements achieve the same DCS goals across the extended enterprise value chains (e.g., supply chain and demand chain), using open and scalable technology.Society-Scale Digital Convergence: societal DCS centered on persons as both customers and providers The ultimate journey: service orientation of economies OMIS - #The Model of Enterprise TransformationObjective: Reduce intra-enterprise transaction cost and cycle time (better alignment of business processes and resources with value propositions) proprietary IS elements Means: use (open and scalable) enterprise cyber-infrastructure to integrate (on-demand) IS elements; i.e.,- Connect (on demand) users and tasks with data and knowledge, and process resources (Subject oriented) - Provide (on demand) enterprise informatics to users and enable sharing of resources across tasks (Subject model) - Simplify business processes toward a user- and task-centered (on-demand) architecture (Subject paradigm)- Convert sequential processes into concurrent (teams)Scope: the enterprise and the clients (on demand); i.e., pursue the capabilities of (on-demand) value cocreationOMIS - #The Model of Enterprise TransformationObjective: Reduce intra-enterprise transaction cost and cycle time (better alignment of business processes and resources with value propositions) proprietary IS elements Means: use (open and scalable) enterprise cyber-infrastructure to integrate (on-demand) IS elements; i.e.,- Connect (on demand) users and tasks with data and knowledge, and process resources (Subject oriented) - Provide (on demand) enterprise informatics to users and enable sharing of resources across tasks (Subject model) - Simplify business processes toward a user- and task-centered (on-demand) architecture (Subject paradigm)- Convert sequential processes into concurrent (teams)Scope: the enterprise and the clients (on demand); i.e., pursue the capabilities of (on-demand) value cocreationOMIS - #The Model of Enterprises CollaborationObjective: Reduce inter-enterprise/community transaction cost and cycle time (join community resources and align community processes) community-wise open IS elements Means: use societal cyber-infrastructure to globally connect the related IS elements across collaborating enterprises to facilitate each partners respective life cycle tasks and requirements (extended co-production); i.e.,- Follow the value chain to form (on-demand) extended enterprises and pursue opportunities of co-production. - Apply the enterprise transformation model to extended enterprises, recursively if possible. (Subject paradigm)- Put the Person/Client at the center; i.e., renovate the industrial value chain to connect (on-demand) enterprises along the life cycle requirements of a person/client.- Employ innovative virtual organizations (e-business). Scope: Drill through the demand chain and/or supply chain for community-wide capability of value cocreation.OMIS - #QUIZ: Analyze thisRead the Sharing IS Secrets article. Explain, exactly how did the new extended enterprise (across Wal-Mart and Warner-Lambert) reduce the transaction cost and cycle time i.e., where did the savings come from? Hint: identify the simplification due to digital connection of forecasting with replenishment - specify What information system engineering model best describes the CFAR vision? What principles best explain the above reduction? What IS elements did CFAR embody? To what extent are these elements open and scalable?Use CFAR to illustrate the model of digital connections scaling. That is, what was the D, the C, and the S? Analyze the smartness riddles; propose IS solutions to them; and answer the above four questions for them.How can you build an IS i.e., what could be the basic process of information system development?OMIS - #Example: CollaborationDemandForecastingInventoryReplenishmentOrderProcessingProductionPlanningWal-MartWarner-LambertCFARVANInternetOMIS - #Engineering an Information System: The Life Cycle and Rapid Prototyping ApproachesPlanning: determine the use of the IS; i.e., develop innovative ideas to realize the enterprises strategic goals and acquire the commitment, resources, and technology required to execute these ideas.Analysis: determine the IS elements; i.e., identify the enterprise processes involved in the above ideas and goals, and characterize these processes using IS elements (i.e., define them in terms of IS elements). Design: specify the technical structure of the IS elements and their configuration (connections), and create an enterprise information architecture to represent them.Implementation: construct the IS elements and their connections, and validate the system for the enterprise.Control: internalize, maintain, and evolve (updates, etc.) the system to adapt to change.

OMIS - #Make-to-Stock (MTS):Inventory-DrivenBilling SystemcGeneralLedgerD1Order etc.Demand DataaCustomerOrder DataDate of DeliverybDistribu-tion NetworkReadied Order andShipping DataInventoryD2OutstandingDemandD3Back OrdersInventoryInformationDemand ForecastD4ForecastsOf DemandDistributionPolicyD5Forecast SalesForecastingSystem2Process Order InformationOrder Entry System1OrdersOMIS - #InventoryD2OutstandingDemandD3Demand ForecastD4DistributionPolicyD5Make-to-Stock (MTS):Inventory-DrivenPolicy DataInventory, in-process, in-transit, and on-handShort-term schedule and work ordersContinued from previous slideManagementThree-yr Master Production PlanReplenishment SchedulebDistribu-tion NetworkProgress on ReplenishmentDirective for ReplenishmentInventoryD2Inventory in transit and on-handPlan for replenishment in the NetworkDistribution Resource System3Schedule and Monitor the Production (MRPII)Master Production Scheduleing4Monitor Replenishment in the NetworkDistribution Resource System5OMIS - #Assemble to Order (ATO)Monitor Production ProcessManufacturing Facility3Schedule Production (Family of Products)Master Scheduling System2ManagementB.O.MbBilling SystemAvailable OptionscBill of MaterialD3LogD1Process Order InformationOrder Entry System1B.O.MLong Term ScheduleAvailabilityof OptionsD2Options DataConfirmed OrderManufacturing Orders ScheduleOrder SystemEntry LogGeneralLedgerD4OutstandingOrdersD5aCustomerData of Completed OrderSales, A/R, etc.Date of DeliveryOrder DataShipping SystemUpdate Order and Status Accounting4Manufacturing AccountingdShipping DataCost, Shipping, etc.Pending OrdersCompleted OrderOutstandingOrdersUpdatesProduction UpdatesOMIS - #Digitization: application-oriented stand-alone information systemsOrder Processing and ProcurementWarehousing, Logistics, and DistributionCustomer Service (CRM, Knowledge Center, etc.)Accounts Payable, Accounts ReceivableGeneral Ledger and ControlMarketing and SalesPayroll/Personnel (Human Resources) Product Design (CAD/CAE)Process Planning (CAPP)Production Planning (MRP)Production and Inventory Control (MRP II) Shop Floor Control (CAM, SCADA, MES)Statistical Process Control and Quality AssuranceOMIS - #Digital Connections: Enterprise-wide ISConcurrent Engineering (CE): distributed design/alignment with productionComputer Integrated Manufacturing (CIM): integration of CAM, SCADA, MES, Just-in-Time, and other manufacturing systemsEnterprise Resources Planning (ERP): integrated administrationProduct Data Management (PDM): part-centered data managementProduct Life Cycle Management (PLCM): integrate part data for the product cycle (from market study to design, production and service) Enterprise Engineering: total quality management, business process re-engineering, virtual/horizontal enterprises, agile manufacturing, etc..Supply chain management (SCM): manage the extended enterprise to cascade the primes demand to the suppliers production schedules.Industrial Exchanges: marketplace for company buyers and suppliers E-Engineering: collaboration of engineering design across the supply chain (with potential to coordinate production)On-Demand Business/Service: provide demand chain service processes

OMIS - #Quiz: How has IS innovated (DCS) industrial and service processes? What models are concerned with prime-supplier collaboration? Treat each model as an extended enterprise (as you did to, e.g., CFAR), what IS elements do these models connect/integrate across enterprises? Example: CE connects design processes and information resources (CADs) Which of these models provides the highest level of integration for the supply chain? How does the CIM model compare to the PDM and PDLC models (all three are for single enterprises)?How does e-Engineering compare to CAD and Concurrent Engineering?How does CE compare to PDM and PLCM?How does On-Demand Business/Service compare to previous Enterprise Engineering?

OMIS - #Some related terminologyEDP (Electronic Data Processing)

MIS (Management Information Systems)

CBIS (Computer Based Information Systems)

EDI (Electronic Data Interchange)

DSS (Decision Support System)

ES/KBS (Expert System/Knowledge Based System)

EIS (Executive Information System)OMIS - #Quiz: Suppose YOU were the strategist...A small bearings manufacturer has a computer-controlled workshop, a professional staff of marketing, engineering, information technology, and administration. It sells to international buyers, as well as being a certified supplier to such companies as GD, GE, GM, LMI, and Simens. How would the CE, CIM, ERP, PDM and PLCM models work for the company, respectively? How would the Industrial Exchange, e-Engineering, and On-Demand Service/Manufacturing models work? What information system engineering principles are at work in each of the above models? Suggest some ideas to further renovate the manufacturer. What basic IS elements are involved in these ideas?

OMIS - #Exercise I:1. Analyze the CFAR model: how does it achieve enterprise collaboration at the system level? 2. Visit Covisint, Perfect Commerce, and Ariba on the Internet: what is an industrial exchange, and what are some of its representative IS elements?3. Investigate: what is e-Engineering (GE, etc.)? What is On-Demand Business/Services (IBM, etc.)?4. Explore: what do FreshDirect and amazon.com have in common? Bloggers and wikipedia?5. Study: identify how each of the above models affects enterprise supply chain and demand chain. OMIS - #Exercise II:What are Web Services (Internet-resident business process services), Internet 2 and Grid Computing?What is social networking?What are open source technology and ontology?

Check/Google the Internet to gain an adequate understanding about these three categories of emerging technologies, and consider how they might enable the emerging cyber-infrastructure-based enterprises (e.g., help innovate the current practices, effect new collaborations, and afford new models). Can you find some sample applications?OMIS - #