HA275 Prelim II_StudyGuide - HA275 Information Systems...

HA275 Information Systems
Prelim II
Information integration
Information Integration Trend
• Streamlined: Reduced redundancy/data entry
• Accurate: Increased reliability of data
• Timely
• Relevant
• Secure - Increased data control
• Shareable across the enterprise
How to integrate?
1. Stepwise approaches
• Not always realistic to turn off legacy applications
• Apps are crucial for daily operations
• Apps are better than what you can buy
• ‘Big bang’ implementation = high risk strategy
 Point-to-point
o Custom software interfaces
 Pairs of applications
 Good for low budgets, easy
o Drawbacks
 Data extraction is slower
 Exponentially complex
 Build or buy?
 Complex to install
 Maintenance problematic
 Enterprise Application Integration (EAI) – more efficient than P2P!
o (EAI) – or middleware (software)
 Single software hub
 Acts as a bridge (switch)
 Potentially less expensive than P2P
o Drawbacks
 Data mapping
 Island risk
 Build or buy?
 Cooperating packages?

 Proprietary SW interfaces
2. Complete replacement of isolated systems
 Enterprise Resource Planning (ERP) – Software (IT)
o Integrates all functions in a single package
 ‘Off-the-shelf’ and tailored by an organization
 Data shared through a common repository
o Can be purchased in modules that address only specific functional
needs
 Best of Breed
 Middleware
• Why do we want ERP?
o Single integrated infrastructure
o Streamlined organizational activities
o Facilitates confidence in information
o Timely and informed decision making
o Generic modules based on industry/functional best practices
o Enables Business process reengineering (BPR)
o Maintenance outsourcing
• What are the challenges of ERP?
o Whole-house implementation
o Inflexible compared to in-house IS
o Long and expensive implementations
o 2/3 failure – ROI, budget, time, functionality
o Complex changes
 Software is designed with a powerful agenda
 …to workforce expertise, business processes, and organizational
structures
Outsourcing
Outsourcing = hiring an outside organization to perform services (such as information
processing and applications development)
• Example: McDonalds subcontracts with North Dakota call center