Lecture 3. Business models & networks Flashcards
(!) Describe structure models
General:
- Describe data & info-structures in business process
- Create blueprint for relational database
- Tool to plan, document, discuss & implement database
- Facilitate database use after implementation
Must describe:
- Entities in interest domain
- Entities relationships
- # relations btw. entities: Carnalities
- Attributes/characteristics of entities & relationships
(!) Describe unified modeling language / UML & best practice for it
General:
- Unified modelling language
- Used to design diagrams
- ERD: One of many diagrams
- Class diagram notation for structure models
- Describe logical structure of database system
- Much like entity relationship diagrams
- Specifications maintained by Object Management Group
- Incl. Notation for many diagrams: Structure, behavior & interaction diagrams
- Support collection, aggregation & communication of process info
- Eg. ERD
Best practice
- Use common terms as names
- Only relation if clear firm purpose
- Avoid crossing lines: Misreading
- Use same sized rectangles
- Avoid association lines close together
- Seek simplicity
- Accuracy > Appearance
- Use notes if complex
(!) Describe the building blocks in UML
Building blocks:
Classes:
- A rectancle
- Same as entities
- What firm want collected & stored info about
- Either w. name, attributes & operations or just name
- Eg. Ress., persons, events or conceptual structures
Attributes:
- Data elements
- Describes instances in class
- Data dictionary: Primary & foreign keys
__________
Associations:
- Relation btw. classes
__________
Multiplicities:
General:
- Business rules
- Min & max times instance in one class associated w. instances in another
- 0 = Optional
- 1 = Mandatory
Options:
- 0..1: Zero or one
- 1..1: Only one
- 0..: Zero or more
- 1..: One Or more
(!) Describe primary & foreign keys & other notations
Primary keys:
Requirements:
- Must be unique
- Can’t be blank
- Can’t be 0: Else Foreign can’t find it
- Can’t change over time
- Controlled by firm
- Short > Long
If relational:
- Unique identify specific row in table
__________
Foreign keys:
General:
- Logically link tables
- Attribute this table = Primary in other
- Result tables shown by associations
- # is all except many-many & mid-tables
- Two if two relations btw. same tables
If relational:
- Attribute one table primary key in another
- Provide logical relationship or link btw. two tables
__________
Other notations:
Generalization:
- Group things sharing characteristic
- Eg. Sports car, sedan & SUV w. arrows to auto
Aggregation:
- Eg. Team & players
Composition:
- Eg. Chapters & book
(!) Describe decision categories
Eligibility or approval:
- Individual or firm eligible for this product or service?
Validation:
- Claim valid for processing?
Calculation:
- What is correct discount for this product/service for this customer?
Risk:
- Whats the risk of relying on this supplier’s promised delivery date?
Fraud:
- Likelihood of claim is fraudulent
Opportunity:
- What option is best opportunity?
Assignment:
- Who should issue be assigned to?
Targeting:
- How to respond to this person?
(!) Describe business rules
General:
- Short statement
- Business process constraint
- Typically text > model: Yet influence models structure & flow
- Establish multiplicities in class models
- Ensure info operate consistent & effective to achieve firm objectives
- Implement control activities
- Set criteria for branching (forgrening) in activity models
- Obligatory, prohibited or allowed
- Short sentences
- Make modeling business process easier: Limit options
- Often implicit
- Must be enforceable (håndhævet)
Enforcement levels:
- Strict enforcement: No violation allowed
- Pre-override: Violation allowed if authorized in advance
- Post-override: Violation allowed if authorized after violation
- Guidelines: Rules followed, not enforced
Control activities:
- Approval, authorization, verification & reconciliation
- Review operating performance
- Secure assets & segregation of duties
(!) Describe a database & types of data models
General:
- Collection of related data
- Data w. many uses
- Maintain info for many objects
__________
Types of data models:
Hierarchical data models:
- Not part of chapter
- Organize data into tree-like structure
- Parent-child relationships
- 1:N relations
Network data models:
- Not part of chapter
- Flexible model
- Show objects & their relationship
- Look like big net
- M:N relations
Relational data models:
General:
- Two-dimensional tables
- Made as needed
- Most used today
Advantages:
- Flexible & scalable
- Quick & easy change handling: Eg. SAP
- Simplicity: Easy to communicate
- Reduce redundant info: Data in one place
Describe database management systems / DBMS, data dictionary & data administrator
Database management systems / DBMS:
- Computer program
- Create, modify & query database
- Manage databases storage & retrieval of info
Data dictionary:
- Describe data field in each record
- Eg. Field description. field length, field type. Eg. Numeric
Data administrator:
- Person responsible for design, implementation, repair & security of database
(!) Describe the fundamentals of relational databases & REA framework
Entities:
- Same as classes
__________
REA framework:
Ressources:
- Economic value for firm
- Eg. Cash & products
Events:
- Activities in operation
- Eg. Sales & purchases
Agents:
- Participants in event
- Eg. Customers & sales people
___________
Type image:
- Sum of category info
- Guidelines, constraints & descriptive info to ress., events & agents
- Help manage business process
- Sum activity to support management info req.
- Eg. Product cat. or order status
__________
Attributes:
General:
- Describe class / entity
Characteristics:
- Customer ID
- Address
- Name
Properties:
- Invoice number
- Date
Adjectives:
- Product name
- Price
Describe the main constructs in a relational database
Column:
- Field
- Attribute
Table/relation
Row:
- Record or tuple
(!) Describe the basic requirements of tables to hinder anormalies
The Entity Integrity Rule:
- Primary key: Data value not null
- Can’t be 0: Else Foreign can’t find i
- Else constraint not possible
The Referential Integrity Rule:
- Foreign key: Data value null or match a existing data value
Others:
- Attributes req. unique name
- Attributes req. same value type
- Attribute s must be single-valued: Many-many = New
- Non-key attributes must describe characteristics of table identified by primary key
(!) Describe enterprise systems & differentiate AIS
General:
- Internal business process backbone
- Connect in- & external business processes: SCM & CRM
- Integrate & support business processes & info needs
- Higher lvl internal transparency than isolated legacy systems
- Provide info benefits to manage business activities effectively
- Integrate & automate processes
- Often use relational data model as IS-basis w. hundreds of tables
- Eg. SAP, Oracle, Microsoft dynamics or IFS applications
Benefits:
- Enhance completeness
- Enhance transparency
- Enhance timeliness
____________
AIS vs. ERP:
AIS:
- Financials: Cover all needs to be accurate & efficient
ERP:
- Cover wide range of functionalities
- Financials
- Reporting
- Order entry
- Purchasing
- Inventory control
- Warehouse management
(!) Describe ERP advantages & disadvantages
Advantages:
- Standardize procedures & reports
- Improve customer service
- Increase productivity: Automation
- Integrated firm-wide view of firms data streamline info flow
- Data captured once
- Greater visibility & monitoring capabilities for management
- Improve access & control of data: Security settings
Disadvantages:
- Ref. ERP-SIM
- Costly
- Complex: Need consultants
- Time consuming to implement
- Customize or standardize business processes
- User resistance: Hate change
- Error spread in system if wrong data
- Big consequences if not “segregation of duty”, authentication & authorization
(!) Describe the challenges of implementing ERP
- Relate to ERP-SIM
- Many modules in enterprise system
- Integrate w. external systems: Eg. Supplier IS
- Integrate w. existing legacy systems
- Convert data from legacy systems to enterprise system
- Implement big project in firm: Resistance
(!) Describe computing in the cloud
General:
- Internet-based computing
- Shared ress., software & info provided on demand
- Alternative to host enterprise systems & other firm computing needs
- Easily host enterprise system applications
Considerations:
- Security of sensitive data & back up
- Ensure low down time & adequate processing speed at hosting firm
- Require constant internet connection
Give some examples on multiplicities
(!) Describe other relationship notations
.
Describe the ERP manufacturing game - Steps
Describe the ERP manufacturing game - Roles
Describe the ERP manufacturing game - Steps
Describe the main take-aways from ERP-SIM
General:
- Marketing for each area
- 2 Prod. Mat. & boxes
- Limited program: Only some steps
- Summary & detailed sales report: Incl: Q, Price & Value & cost - vs. Price market report: No costs
Business rules:
- 4 At a time
- Setup time
Company value:
- Calculate
- W. + & - in simulation
Roles:
- Reporting + Analysis x 2. Segregation of duty
- Pricing
- Marketing
___________
Learning points:
Understanding ERP Functionality:
- Inventory management
- Production planning
- Procurement
- Order processing,
- Financial management
Integrated Information Systems:
- Importance of correct data
Supply Chain Management:
- Handle demand fluctuations
Decision-Making and Trade-offs:
- Balance prod. cost, demand, inventory & financial targets
Collaboration and Communication:
- Important
Continuous Improvement:
- Trial & error –>
Realistic Simulation:
- Bridge theoretical + practical knowledge
Adaptability:
- Since uncertainty
____________
Challenges:
- Complexity
- Time constraints
- Unexpected events
- Navigating the program
- Uncertainty
