Transcript Lecture 4 (August 24, 2002)

Lecture 4
(February 8, 2003)
Database management, networks
and integration
Case Analysis
Automobile industry: General Motors Co.
database management systems
(DBMS)
• database – in loose terms, is just a collection of
interrelated data stored structurally to serve multiple
applications, or a central data file, or CIF (central or
customer information file)
• DBMS are integrated set of programs used to define,
update, maintain and control databases
• very often, we also use just database to mean DBMS,
which is inaccurate
• data can be accessed sequentially, randomly and
concurrently by many users. Simultaneous reads and
writes are possible. But redundancies, integrity and
security post problems.
• DBMS is all about dealing with these.
DBMS
• A software that manages and provides control
over the central data to provide services and to
ensure its accuracy and integrity
• Hierarchical and plex or network type database
– Early forms of DBMS are hierarchical or plex type.
They limit the way in which data could be stored. One
need to know exactly how the data will be used before
one started collecting them.
– Database designers had to know exactly what
questions people might ask regarding the data.
hierarchical (tree) structure
level 1
1
1
level 2
level 3
level 4
3
2
5
10
6
11
7
12
4
8
13
9
14
example of plex (network) structure
supplier
part
supplier A
part 1
supplier B
part 2
part 3
supplier C
part 4
DBMS
• Relational database
– Data are stored in tables, consist of columns with rows
– Spreadsheets also store data in rows and columns, but this tool
is not intended for handling large amount of data
– Each table has a name and represents objects or relationships
to the data
– Includes useful tools that eliminate programming, for example,
input screens, query and report writers
– Data independent of programs allowing data change without
impacting program
– Data integrity can be maintained as they are up to date and
accurate
Managing DBMS
• Data might be collected from thousands of sources and
stored in hundreds of locations in an organization.
Keeping databases up-to-date and accurate does not
happen by chance.
• DBMSs help managers manage the data. But DBMSs
needed to be managed themselves. Besides
maintaining, monitoring the performance and solving
day-to-day problems, there are still a lot more work to be
done.
• Privacy rules are often governed by regulatory
requirements in addition to those of the organizations. In
regions where many small countries with different laws
are involved, cross country data transfer could become
complicated, although technically it is quite straight
forward.
Database Administrator
• Database administrator (DBA) is a person who knows,
manages and makes decisions regarding an
organization’s databases. The administrator is
responsible for all operations involving the database.
• Standards, documentation, testing, backup and recovery
techniques and procedures are important to facilitate
what a database administrator uses.
• In a large organization, data definitions and data
standards are the job of a data administrator (DA) rather
than the database administrators themselves.
data security and integrity
• Databases have very strong controls over data
security and integrity.
• Access to database are defined and controlled
by the DBA or DA through the DBMS. Access to
which specific part of the data and whether
changes are allowed or not are defined clearly.
• In-flight problems are taken care of with either
forward or backward recovery facilities.
• As the presence of duplicate data in multiple
data files are eliminated, integrity can be more
easily achieved.
example to illustrate inflight problem
a transfer
transaction
completion of
transaction
debit account 1
credit account 2
example to illustrate inflight problem
a transfer
transaction
completion of
transaction
debit account 1
credit account 2
DBMS vs Spreadsheets
DBMS
spreadsheets
Store different tables containing
large amount of data; there are
tools to combine data from these
tables
Relatively more difficult to combine
information that is stored in
different spreadsheets
Most calculations apply to sets of
data instead of just one item
Primary designed to perform
complex calculations
Stronger control for data security
and integrity, including data
protection, backup, recovery and
other regular and ad-hoc
maintenance
Relatively less control
Accidental and purposefully
data/row/column deletion possible
Networks, H/W & S/W sharing
• Computer networks are developed and implemented to
ease communication between users
• Planning, designing and maintaining a network is a
complex process
– Software and hardware must be shared and access monitored
– Compatibility between many different types of workstations and
programs must be maintained
• LAN (local area network) consists of
– Computers
– Transmission media (e.g. different types of cables, rays or
waves)
– Connection devices (e.g. LAN cards)
– Software (e.g. network operating systems controlling access and
flow of data)
LAN and WAN
• The earlier computer networks were fairly simple
because each consists of only one computer with
several dumb terminals and possibly some nonintelligent printers attached to it as well.
• When more computers are connected to each other, the
situation become more complex.
• For a start, each computer needs to know the existence
of others in order to communicate
• Enterprise network – a network that connects various
LAN across an organization
• WANs (wide area networks) are enterprise networks that
spread across large geographical distances and involves
links that are controlled by public carriers (e.g.
telecommunications companies)
Client and Server
• Computers attached together in a network
perform one of two functions: servers or clients
• Servers are computers that store data to be
used by other computers in the network
• Clients are computers used by individual users
and they access the servers whenever require
• A computer also can perform both as a client
and as a server. Networks where computers
perform both functions are called peer-to-peer
networks
internet
• Internet is a worldwide network of computer networks
• No single group is in charge of the internet
• Anyone with a computer connected to the internet with
the required protocol has the ability to give other users
access to the data stored on that computer
• Three ways to grant access:
– telnet: allow users of other computers to log on just like any other
account holder
– FTP: file transfer protocol, no account required
files can be transferred in either directions as long as the owner
of each computer gives permission (public files)
-- WWW: world wide web
Business Integration
• Sharing data effectively is crucial for success in
today’s competitive environment
• Many ways to integrate different types of data:
– Software such as DBMS, ERP (enterprise resource
planning)
– Networks
– GDSSs (group decision support systems)
• Importance of synergy rather than working and
battling independently. Set aside the duplication
of data/information and inconsistencies created
Legacy systems & data warehousing
• Older systems were build according to requirements and using
technology available then
• Legacy systems are mainly transaction-processing systems and
they store data in their own files
• Timeliness and integrity is always a big problem but few companies
have the opportunity or are willing to invest to completely re-design
or change their systems
• Valuable information and processes are embedded in these
systems, we cannot just throw away them. On the other hand, it is
so difficult to integrate them
• Data warehouse is a single consolidation point for enterprise data
from diverse production systems
• Data is typically stored in one large file server or a central computer.
It is then available for management queries and analysis
• As source data available are scattered and static, it is very difficult to
ensure integrity
Enterprise Resource Planning
• ERP is the current state-of-the-art in integrated
information in business systems
• ERP incorporate data from purchasing, financial
accounting, logistics, human resource management and
investment management
• It can be tailored for specific business areas such as
manufacturing, research & development and retails
• Large and expensive packages available commercially
e.g. SAP, Oracle, Peoplesoft, Lawson etc
• ERP runs on top of a DBMS, provides up-to-the-minute
data on the major financial issues in a firm
Case study: General Motors
• The largest producer of automobiles in the world
• History dates back to 1897
• Operating in over 70 countries with a presence
in more than 200 countries, more than 260
major subsidiaries, and a total of 395,000
employees worldwide (649,000 in 1966)
• More than just build cars and trucks. GM is
involved in Telecommunications, Aerospace,
Defence, Financial and Insurance Services,
Locomotives, Automotive Systems and Heavy
Duty Automatic Transmissions.
General Motors & Information
Technology
• GM did not have strong IS capabilities. Traditionally, GM
handled many tasks manually. Different divisions and
even sections within divisions were using different
computers and software. This resulted in many
duplication and redundancy. One quick solution is to
acquire a computer services company to do the job.
• Electronic Data Systems Corpn (EDS), a data
processing and telecommunications company, was
acquired in 1984. The purpose was to introduce
information systems that would speed all operations and
eliminate unnecessary labour.
• Another acquisition, Hughes Aircraft, was made to
provide the best technology in microelectronics and
system engineering
Acquires Electronic Data Systems Corpn
• EDS, founded in 1962 as a data processing and
telecomunications company, is now a leading global
information technology (IT) services company.
• Today, EDS is serving more than 35,000 business and
government clients in 60 countries. EDS has been
named the world's top application management service
provider in a report released last year by International
Data Corp (IDC).
• Under the digital economy, EDS provides almost every
kind of service. Their products are also versatile.
• Presently, they have over 140,000 employees
worldwide.
The integrations
• Pushing toward a consistent information system infrastructure has
been a great challenge for GM since then
• The integration of EDS into GM turned out to be a very painful and
long-term process. Aside from the clash of cultures and resentment
of EDS’s intrusion, there were professional complaints. EDS lacked
experience with management control systems, robotics, computeraided design and manufacturing. GM people complained that EDS
mishandled parts supplying, often buying far too many or too few,
resulting either in overstock or factory delays.
• After 12 years, EDS officially split-off from GM in 1996
• A Chief Information Officer (CIO) was hired to build an internal
information strategy and management capability
• However, EDS remains as the main outsourcer of GM. The CIO still
relied on EDS for much of his IS needs.
Leveraging on IS
• In recent years, GM’s research has been
focused on bringing new information
technologies to enhance safety and differentiate
its products from competition
• OnStar, an interactive mobile information and
communication system, is an example of how
GM is incorporating IT into its products to gain
competitive advantage in the luxury car market.
Driving directions, emergency assistance, up-tothe-minute stock quotes, e-mail and more, all in
the vehicle.
OnStar Services
•
air bag deployment notification:
contacts you to offer assistance if your air bags deploy.
•
personal calling:
voice-activated nationwide wireless calling service.
•
virtual advisor:
voice-activated access to web-based information.
•
emergency services:
system locates you and give contacts for help.
•
personal concierge services:
plan entire trips, make reservations, even get tickets to sold-out events.
•
route support:
guide to any destination.
•
stolen vehicle tracking:
systems locate a stolen vehicle by satellite and contact the police.
•
roadside assistance:
got a flat tyre, out of petrol, the system will locate your vehicle and send for help.
more services
• ride assist:
if unable to drive, the system will contact a taxi or family member.
• remote door unlock:
the system can send a signal to your car's computer to unlock your doors.
• accident assist:
after an accident, the system will guide you through all the steps that follow.
• remote diagnostics:
run diagnostic test of the engine while driving.
• all these live personal service are available 24 hours
a day, 7 days a week — all at the touch of a button.
Biggest challenges
• In developing and implementing
information technology strategy to achieve
four goals:
– Getting common
– Running lean
– Competing on a global basis
– Growing the business
The future
• GM’s cash flow is strong, financial resources to pursue
IT investment is not a problem but its performance as
compare to its competitors has not been encouraging
• GM still does not have a common global system to run
its business processes, R & D, manufacturing, sales and
marketing activities worldwide
• Need to focus on core businesses and discontinue
others
• Restructure and reduce workforce, implement common
design process, worldwide purchasing, body fabrication,
body-in-white engineering and die engineering
• Undertake thorough market research and implement
brand management
Resources & Reading Materials
Chapters 5, 6 and 7 of textbooks.
www.oracle.com
www.eds.com
www.gm.com