IS-344

Computing Applications in Business

Spring 2015
WEEK 1

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Agenda
Introductions
Course Overview and Learning Objectives
Course Organization
Assignments
Grading
Course Schedule
Week 1 Lecture
Teams Selection

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Introductions
Name
Major and Year
Career Interest
Reason for taking the course and what you want to get
out of it
Work Experiences
Hobbies

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Course Overview
This course will provide a comprehensive overview of various types of
information systems used by todays organizations in order to operate
effectively and efficiently.
Information systems that are used by all the major functional
departments within organizations are examined and evaluated to see
how applications are integrated to implement "business processes" that
flow across department and organizational boundaries.
The course will emphasize an understanding of information systems the
enable the business processes of order entry / management, customer
relationship management (CRM), procurement, supply chain
management (SCM), product life cycle management (PLM), and
enterprise resource planning (ERP).
The course is taught from the standpoint of an Enterprise Resource
Planning system.

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Course Overview
The students will be able to:
Understand how applications are integrated to implement "business
processes" that flow across department boundaries, and from
suppliers to customers
Gain experience in using an enterprise management system and
related computing applications to support key business functions
Apply knowledge of computing to define the appropriate computing
applications required to support an organizations business functions
Analyze the organizations processes in order to define the computing
application requirements appropriate to its needs
Participate in teams and work collaboratively to successfully
complete team assignments
Effectively communicate and present assignments to the whole class
and the instructor

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Course Organization
Class on Monday
Frequent team assignment
Learn to work and collaborate as part of a team
Practice written and oral presentation skills
Will provide time at end of class for team meeting and work

We will be using the Moodle with several discussion areas.

For each discussion topic you should participate and make relevant comments.
Your comments should add significantly to the discussion by suggesting other
solutions, pointing out problems, or even totally disagreeing! Simply saying "I
agree" is not enough ---- be sure to tell us WHY! Your discussion will be evaluated
based on:
1. Quality of your response
2. Timeliness of your response
3. Ability of your comments to motivate others in a collaborative effort.

Class members come with a myriad of backgrounds, experiences

and opinions. Everyone will benefit from everyone else's knowledge.
We are structuring the class to encourage discussion and expect
everyone to join in these discussions and contribute appropriately.

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Resources
Text
Ellen Monk, Bret Wagner, Concepts in Enterprise Resource
Planning, 4th Edition, Cengage Learning, 2011Journals and
Publications
Journal of Strategic Information Systems or Information &
Management Articles can be found at: http://www.library.njit.edu/
Industry publications

Computerworld
CIO
Harvard Business Review
And many others

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Course Schedule
Week

Topic

Reading

#1 Jan 26

Course Introduction

#2 Feb 2

Development of Enterprise Resource Planning Systems

Chapter 2

Discussion Questions

#3 Feb 9

Marketing Information Systems and the Sales Order Process

Chapter 3

#4 Feb 16

Chapter 3

#5 Feb 23

Customer Information Systems Cust Relationship

Management
Production and Supply Chain Management

Discussion Questions
Team Case Study
Discussion Questions

Chapter 4

Discussion Questions

#6 Mar 2

Accounting in ERP Systems

Chapter 5

Discussion Questions
Team Case Study

#7 Mar 9

Human Resources Processes in ERP

Chapter 6

Discussion Questions

#8 Mar 16

SPRING BREAK

#9 Mar 23

Process Modeling, Process Improvements in ERP systems

Chapter 7

#10 Mar 30

Enterprise Architecture Implementing an ERP system

Chapter 7

Discussion Questions
Exam (3/27)
Discussion Questions

#11 Apr 6

Business Intelligence

Chapter 8

#12 Apr 13

Chapter 8

#13 Apr 20

Mobile Computing
Social Media
Cloud Computing

Discussion Questions
Team Case Study
Discussion Questions

Chapter 8

Quiz

#14 Apr 27

IT Security, Controls, Governance

Final Project Presentations

#15- May 4

Course Summary

Final Project Presentations

Business Functions & Processes

Assignment Due

Chapter 1

(on line class)

No Class

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Assignments
Participation and discussions:
DiscussionQuestions designed to explore weekly topics and
concepts will be posted.
Generally,your responses to each discussion question should be
at least 250 words in length, but no more than a full page.You
should post your initial response to discussion questions not later
than THURSDAY of the due week; this will allow one week to
complete the answers and one week for discussions.
You are expected to comment on responses posted by others
when you have additional thoughts on the subject matter or if you
have any questions or feedback. We will also review the
discussion questions during our class time.

Papers and Articles will also be posted to foster

discussions and introduce important topics.
(30%) Due every week

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Assignments
Team Cases 3 (5% each) to be assigned by the
instructor
We will do four case studies for which I will provide you with
a series of questions. Groups will be formed and you will work
collaboratively on the answers. The result of your work will
be a written case study report and PowerPoint presentation
that you will present to the class, with the following content:
Introduction: Basic description of the case
Analysis: What is the problem or problems and why.
Solutions: What are the possible solutions and their Pros and
Cons
Recommendation: What would you propose as a solution to the
problem?
Answers to the case study questions.

Its very important to integrate the relevant articles

and course materials in to your analysis.

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Assignments
Mid-Term Exam (25%)
Quiz (5%)
Final Team Project (25%)
Select a company you are or have worked for or are familiar
with and write an IT strategic plan covering the topics
discussed in the course.

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Assignments and Grading

Assignment

Due Date

Participation and discussions

30%

As assigned

Team Case Studies Reports and

Presentations

15%

2/9, 3/2, 4/6

Mid-Term Exam

25%

03/23

Quiz

5%

4/20

Final Team Project Presentation

and Report

25%

4/27 and 5/4

Any evidence of cheating in any form, including plagiarism, will be dealt with according to the
honor code of NJIT (course failure and suspension or expulsion). Please note: There will be no
warnings or chances with regard to cheating. Any discovered case of cheating will be
immediately passed to the Dean of Students for further investigation.
This is your warning now. Cheating is not worth it - you may not only fail this course, but also be
suspended from NJIT. The full text of the NJIT Honor Code is available for your review at
http://www.njit.edu/academics/honorcode.php

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Questions ?

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Week 1 Course
Introduction
Chapter 1

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A Business View
IT is a critical resource.
IT is over 50% of capital goods dollars spent in the US.
Over $3,800 a year per capita.
High growth firms invest more in IT.

What is your view of IT and its role?

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People and Technology

People and Technology work together.
Technology is critical.
Workers rely heavily on technology.

Managers must know how to mesh both.

Examine long-term and short-term consequences.
Manage change carefully.

Technology changes rapidly.

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Business Goals
IS must support business goals.
It is not an end but a means to an end.
Support and strategic focus.
Must be able to support business transactions.

Notable examples:

Wal*Mart
UPS
Amazon
Others ??

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Organizational Systems
IT must support organizational systems
The people, work processes, and structure.

Carefully consider the consequences of making an IS

change.
How will this impact the way work is done?
Will the people accept this new technology?
What changes may need to be made in the structure of the
organization?

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Functional View
Functional View of the business

Based on the functions people perform.

Information flows vertically in the organization.
Sometimes information flows across the organization.
Accounting, Operations, Marketing, Sales and Support.
Executive Management receives the information and distributes
as need arrives.

Process View

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This model sees the business by the processes it performs to achieve

its goals.
Porter describes business in terms of its primary and support
activities.
Primary inbound and outbound logistics, operations,
marketing and sales.
Support HR, technology, procurement, infrastructure.
Activities are linked together to form a chain the value chain

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Information Hierarchy
Data, Information, and Knowledge are not interchangeable
terms.
Data set of specific objective facts or observations (inventory
contains 100 widgets).
Information data endowed with relevance and purpose (75% of
widgets were purchased by customers in December)
Knowledge - information that has been synthesized and
contextualized to provide value.
Data

Information

Knowledge

Definition

Simple Observations of the

sate of the world

Data endowed with

relevance and purpose

Info from the human mind

(includes reflection, etc)

Characteristic

Easily structured

captured

transferred
Often quantified
Mere facts

Requires unit of analysis

Data that has been
processed
Human mediation
necessary

Hard to structure
Difficult to capture on
machines
Often tacit
Hard to transfer

Example

Daily inventory reports of all

inventory items sent to CEO
of large manufacturing
company

Daily inventory report of

items below economic
order quality levels sent to
inventory manager (IM)

IM knows which items

need to be reordered in
light of related potential
problems

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System Hierarchy
Information systems are comprised of three main elements:
Technology
People
Process

Infrastructure everything that supports the flow of

processing information
Hardware, software, data, and components.

Architecture strategy implicit in these components.

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Summary
Business managers must be involved in information
decisions.
Technology is ubiquitous.
IT is a critical resource.
People and Technology work together.
Certain key skills are needed.
Data, Information, and Knowledge are distinct.

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Chapter One
Business Functions and Business
Processes

Page 24

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Objectives
After completing this chapter, you will be able to:

Name the main functional areas of operation used in

business
Differentiate between a business process and a
business function
Identify the kinds of data each main functional area
produces
Identify the kinds of data each main functional area
needs
Define integrated information systems, and explain
why they are essential in todays globally competitive
business environment
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Introduction
Enterprise Resource Planning (ERP) programs: Core
software used by companies to coordinate information in
every area of business
Help manage companywide business processes
Use common database and shared management reporting tools

Business process: Collection of activities that takes

some input and creates an output that is of value to the
customer

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Functional Areas and Business Processes

To understand ERP, you must understand how a business
works
Functional areas of operation
Examples ?

Business processes
Examples ?

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Functional Areas of Operation

Marketing and Sales (M/S)
what is typically done in this area ??

Supply Chain Management (SCM)

what is typically done in this area ??

Accounting and Finance (A/F)

what is typically done in this area ??

Human Resources (HR)

what is typically done in this area ??

Business functions: Activities specific to a functional area

of operation
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Functional Areas of Operation (contd.)

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Figure 1-1 Examples of functional areas of operation and their business functions

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Functional Areas of Operation (contd.)

Functional areas are interdependent
Each requires data from the others

Better integration of functional areas leads to

improvements in communication, workflow, and success
of company
Information system (IS): Computers, people,
procedures, and software that store, organize, and
deliver information

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Business Processes
Collection of activities that takes one or more kinds of
input and creates an output that is of value to customer
Customer can be traditional external customer or internal
customer

Thinking in terms of business processes helps managers

to look at their organization from the customers
perspective
examples of business processes

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Business Processes (contd.)

Figure 1-2 Sample business processes related to the sale of a personal smartphone

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Business Processes (contd.)

Businesses must always consider customers viewpoint in
any transaction
Successful customer interaction
Customer (either internal or external) is not required to interact with
each business function involved in the process

Successful business managers view business operations

from the perspective of a satisfied customer
Sharing data effectively and efficiently between and within
functional areas leads to more efficient business processes
Integrated information systems: Systems in which
functional areas share data

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Business Processes (contd.)

Figure 1-3 A process view of business

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Business Processes (contd.)

Businesses take inputs (resources) and transform these
inputs into goods and services for customers
Inputs: Material, people, equipment

Managing inputs and business processes effectively

requires accurate and up-to-date information

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Functional Areas and Business Processes

of a Very Small Business
Example: A fictitious coffee shop
Examine business processes of the coffee shop
See why coordination of functional areas helps achieve efficient
and effective business processes
Look at how integration of the information system improves the
business

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Marketing and Sales

Functions of Marketing and Sales
Developing products
Determining pricing
Promoting products to customers
Taking customers orders
Helping create a sales forecast

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Marketing and Sales (contd.)

Marketing and Sales tasks for the coffee shop

Formal recordkeeping not required

Need to keep track of customers
Product development can be done informally
Good repeat customers allowed to charge purchasesup to a
point
Records must show how much each customer owes and his or her
available credit

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Supply Chain Management

Functions within Supply Chain Management
Making the coffee (manufacturing/production)
Buying raw materials (purchasing)

Production planning requires sales forecasts from M/S

functional area
Sales forecasts: Analyses that attempt to predict the future
sales of a product

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Supply Chain Management (contd.)

Production plans used to develop requirements for raw
materials and packaging
Raw materials: Bottled spring water, fresh lemons, artificial
sweetener, raw sugar
Packaging: Cups, straws, napkins

SCM and M/S must choose a recipe for each coffee

product sold

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Accounting and Finance

Functions within Accounting and Finance
Recording raw data about transactions (including sales), raw
material purchases, payroll, and receipt of cash from customers

Raw data: Numbers collected from sales, manufacturing

and other operations, without any manipulation,
calculation, or arrangement for presentation

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Accounting and Finance (contd.)

Data from Accounting and Finance used by Marketing
and Sales and Supply Chain Management
Sales records are important component of sales forecast
Sales forecast is used in making staffing decisions and in
production planning
Records from accounts receivable used to monitor the overall
credit-granting policy of the coffee shop

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Human Resources
Functions of Human Resources
Recruit, train, evaluate, and compensate employees

HR uses sales forecasts developed by the individual

departments to plan personnel needs
Systems integrated using ERP software provide the data
sharing necessary between functional areas

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Functional Area Information Systems

Potential inputs and outputs for each functional area
described next
Note the kinds of data needed by each area and how
people use the data
Information systems maintain relationships between all
functional areas and processes

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Marketing and Sales

Needs information from all other functional areas
Customers communicate orders to M/S in person or by
telephone, e-mail, fax, the Web, etc.
M/S has a role in determining product prices
Pricing might be determined based on a products unit cost, plus
some percentage markup
Requires information from Accounting and Finance, and Supply
Chain Management data

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Marketing and Sales (contd.)

Figure 1-4 The Marketing and Sales functional area exchanges data
with customers and with the Human Resources, Accounting and
Finance, and Supply Chain Management functional areas

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Marketing and Sales (contd.)

M/S needs to interact with Human Resources to exchange
information on hiring needs, legal requirements, etc.
Inputs for M/S

Customer data
Order data
Sales trend data
Per-unit cost
Company travel expense policy

Outputs for M/S

Sales strategies
Product pricing
Employment needs
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Supply Chain Management

Needs information from various functional areas
Production plans based on information about product
sales (actual and projected) that comes from Marketing
and Sales
With accurate data about required production levels:
Raw material and packaging can be ordered as needed
Inventory levels can be kept low, saving money

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Supply Chain Management (contd.)

Supply Chain Management data and records can:
Provide data needed by Accounting and Finance to determine how
much of each resource was used
Support the M/S function by providing information about what has
been produced and shipped

Supply Chain Management interacts in some ways with

Human Resources

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Supply Chain Management (contd.)

Figure 1-5 The Supply Chain Management functional area exchanges data
with suppliers and with the Human Resources, Marketing and Sales, and
Accounting and Finance functional areas

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Supply Chain Management (contd.)

Inputs for SCM

Product sales data

Production plans
Inventory levels
Layoff and recall company policy

Outputs for SCM

Raw material orders

Packaging orders
Resource expenditure data
Production and inventory reports
Hiring information

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Accounting and Finance

Needs information from all other functional areas
A/F personnel:
Record companys transactions in the books of account
Record accounts payable when raw materials are purchased and
cash outflows when they pay for materials
Summarize transaction data to prepare reports about companys
financial position and profitability

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Accounting and Finance (contd.)

People in other functional areas provide data to A/F
M/S provides sales data
SCM provides production and inventory data
HR provides payroll and benefit expense data

M/S personnel require data from A/F to evaluate

customer credit

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Accounting and Finance (contd.)

Figure 1-6 The Accounting and Finance functional area exchanges data with
customers and with the Human Resources, Marketing and Sales, and Supply
Chain Management functional areas

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Accounting and Finance (contd.)

Inputs for A/F

Payments from customers

Accounts receivable data
Accounts payable data
Sales data
Production and inventory data
Payroll and expense data

Outputs for A/F

Payments to suppliers
Financial reports
Customer credit data

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Human Resources
HR needs information from the other departments
Tasks related to employee hiring, benefits, training, and
government compliance are all responsibilities of HR
HR needs accurate forecasts of personnel needs from all
functional units
HR needs to know what skills are needed to perform a
particular job and how much the company can afford to
pay employees

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Human Resources (contd.)

Figure 1-7 The Human Resources functional area exchanges data with the
Accounting and Finance, Marketing and Sales, and Supply Chain Management
functional areas

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Human Resources (contd.)

Observing governmental regulations in recruiting,
training, compensating, promoting, and terminating
employees
Inputs for HR
Personnel forecasts
Skills data

Outputs for HR

Regulation compliance
Employee training and certification
Skills database
Employee evaluation and compensation
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Human Resources (contd.)

Significant amount of data is maintained by and shared
among the functional areas
Timeliness and accuracy of these data critical to each
areas success and to companys ability to make a profit
and generate future growth
ERP software allows all functional areas to share a
common database
Allows accurate, real-time information to be available

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Summary
Basic functional areas:

Marketing and Sales,

Supply Chain Management,
Accounting and Finance,
Human Resources

Marketing and Sales: Sets product prices, promotes

products through advertising and marketing, takes
customer orders, supports customers, and creates sales
forecasts
Supply Chain Management: Develops production plans,
orders raw materials from suppliers, receives raw
material, manufactures products, maintains facilities,
and ships products to customers
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Summary (contd.)
Accounting and Finance: Financial accounting to provide
summaries of operational data in managerial reports,
controlling accounts, planning and budgeting, and cashflow management
Human Resources: Recruits, hires, trains, and
compensates employees, ensures compliance with
government regulations, and oversees the evaluation of
employees
Information systems capture, process, and store data to
provide information needed for decision making

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Summary (contd.)
Employees working in one functional area need data
from employees in other functional areas
Functional area information systems should be integrated, so
shared data are accurate and timely

Managers think in terms of business processes that

integrate the functional areas
Need to share information between functions and functional areas
ERP software provides this capability by means of a single
common database

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