Lecture 4 (February 8, 2003)

1
Lecture 4(February 8, 2003)

• Database management, networks and integration
• Case Analysis
• Automobile industry General Motors Co.

2
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.

3
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.

4
hierarchical (tree) structure
level 1
1
1
3
4
level 2
2
level 3
9
6
7
5
8
level 4
10
11
12
13
14
5
example of plex (network) structure
supplier B
supplier A
supplier C
supplier
part
part 4
part 1
part 2
part 3
6
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

7
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.

8
Database Administrator

• Database administrator (DBA) is a person who
  knows, manages and makes decisions regarding an
  organizations 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.

9
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.

10
example to illustrate inflight problem
a transfer transaction
debit account 1
completion of transaction
credit account 2
11
example to illustrate inflight problem
a transfer transaction
debit account 1
completion of transaction
credit account 2
12
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
13
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)

14
LAN and WAN

• The earlier computer networks were fairly simple
  because each consists of only one computer with
  several dumb terminals and possibly some
  non-intelligent 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)

15
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

16
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

17
Business Integration

• Sharing data effectively is crucial for success
  in todays 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

18
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

19
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

20
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.

21
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

22
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.

23
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 EDSs
  intrusion, there were professional complaints.
  EDS lacked experience with management control
  systems, robotics, computer-aided 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.

24
Leveraging on IS

• In recent years, GMs 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-to-the-minute stock quotes, e-mail and more,
  all in the vehicle.

25
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 servicessystem locates you and give
  contacts for help.
• personal concierge servicesplan 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.

26
more services

• ride assistif 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.

27
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

28
The future

• GMs 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

29
Resources Reading Materials

• Chapters 5, 6 and 7 of textbooks.
• www.oracle.com
• www.eds.com
• www.gm.com