CHAPTER SIX:

SUPPLY CHAIN INFORMATION SYSTEM

6.1 Fundamental concepts of information system

 A system is a set of components that interact to achieve a
common goal.
 An information system (IS) is a collection of:
 hardware,
 software,
 data,
 people, and
 procedures that work together to produce quality
information.
 An information system can be defined technically as a set of
interrelated components that collect (or retrieve), process,
store, and distribute information to support decision making
and control in an organization.
 Cont…

 By information we mean data that have been shaped into a form

that is meaningful and useful to human beings.

 Data, in contrast, are streams of raw facts representing events

occurring in organizations or the physical environment.

 An information system contains information about an

organization and its surrounding environment.
 Three basic activities are input, processing, and output-produce
the information organizations need.
 Environmental actors, such as customers, suppliers,
competitors, stockholders, and regulatory agencies, interact
with the organization and its information systems.
6.2 Solving Business Problems with Information Systems

 Managers and business firms invest in information technology

and systems because they provide real economic value to the
business.

 From a business perspective, an information system is an

important instrument for creating value for the firm.
 It enable the firm to increase its revenue or decrease its costs by
providing information that helps managers make better
decisions or that improves the execution of business processes.

 Every business has an information value chain, illustrated

below in Figure 6.1, in which raw information is systematically
acquired and then transformed through various stages that add
value to that information.
 Cont…

Figure 6.1 information value chain

 From a business perspective, information systems are part of a series of
value-adding activities for acquiring, transforming, and distributing
information that managers can use to improve decision-making, enhance
organizational performance, and, ultimately, increase firm profitability.
 6.3 Data base Management
 A database is a collection of data organized in a manner that
allows access, retrieval, and use of that data.
 Data is a collection of unprocessed items, which can include
text, numbers, images, audio, and video.
 With database software, often called a database management
system (DBMS), users create a computerized database; add,
modify, and delete data in the database, sort and retrieve data
from the database, and create forms and reports from the data in
the database.

 For a computer to produce correct information, the data that is

entered into a database must have integrity/honesty/truth.
 Data integrity identifies the quality of the data.
 The more errors the data contains, the lower its integrity
 Cont…

Garbage in, garbage out (GIGO) is a

computing phrase that points out the accuracy
of a computer’s output depends on the
accuracy of the input.

If you enter incorrect data into a computer

(garbage in), the computer will produce
incorrect information (garbage out).
 Cont…
6.4.1 Qualities of Valuable Information
 People make decisions daily using all types of information.
 To assist with sound decision making, information must have
value.
 For it to be valuable, information should be accurate,
verifiable, timely, organized, accessible, useful, and cost-
effective.
6.4.2. Maintaining Data

 File maintenance refers to the procedures that keep data

current.
 File maintenance procedures include:
 Adding Records:
 Modifying Records:
 Deleting Records:
 Cont…

 DBMSs use a variety of techniques to manage

deleted records.
 Sometimes, the DBMS removes the record from the
file immediately.
 Other times, the record is flagged/highlighted, or
marked, so that the DBMS will not process it again.
 In this case, the DBMS places an asterisk (*) or
some other character at the beginning of the record.
 Cont…
6.4.3. Validating Data
 Validation is the process of comparing data with a set of rules or values to
find out if the data is correct.
 Validity checks, sometimes called validation rules, reduce data entry errors
and thus enhance the data’s integrity.
 Various types of validity checks includes:
 Alphabetic: ensures that users enter only alphabetic data into a field.
 Numeric Check: ensures that users enter only numeric data into a field.
 Range Check: A range check determines whether a number is within a
specified range
 Consistency Check: tests the data in two or more associated fields to
ensure that the relationship is logical and their data is in the correct
format.
 Completeness Check: verifies that a required field contains data.
 Check Digit: A check digit is a number(s) or character(s) that is
appended to or inserted in a primary key value. Bank account, credit
card, and other identification numbers often include one or more check
digits
 Cont…
6.4.4 File Processing versus Databases

 Almost all application programs use the file processing

approach, the database approach, or a combination of both
to store and manage data.
1. File Processing Systems:
 In a typical file processing system, each department or
area within an organization has its own set of files.
 The records in one file may not relate to the records in
any other file.
 File processing systems have two major weaknesses:
they have redundant data and they isolate data
 Cont…
2. The Database Approach
 When an organization uses a database approach, many
programs and users share the data in the database.
 The database does secure its data.
 Only authorized users can access certain data items.
 The database approach addresses many of file processing
systems weaknesses.
• Some strengths of the database approach
 Reduced Data Redundancy:
 Improved Data Integrity:
 Shared Data:
 Easier Access: This approach allows nontechnical users to
access and maintain data, providing they have the necessary
privileges
 Reduced Development Time
 Cont…

Disadvantages of Databases

 It can be more complex than a file processing system.

 People with special training usually develop larger

databases and their associated applications.

 Databases also require more memory, storage, and

processing power than file processing systems.

 It can be more vulnerable than data in file processing

systems.
 6.4.5 Database Management Systems (DBMS)
 a DBMS, or database program, is software that allows you to create, access,
and manage a database.

The most popular types of data management systems, its manufacturers, and the
type of computer used were presented in the following table.
 Cont…
Various functions common to most DBMSs

a) Data Dictionary:

 It sometimes called a repository, contains data about each file

in the database and each field in those files.

 It contains details about data; some call it metadata (Meta

means more comprehensive).

 It is a crucial back-bone to a DBMS.

 Cont…

b) File Retrieval and Maintenance:

 A DBMS provides several tools that allow users and programs to

retrieve and maintain data in the database.

 File maintenance involves adding new records, modifying data

in existing records, and removing unwanted records from the
database.

 To retrieve or select data in a database, you query it.

 Cont…

 From several methods that a DBMS offers to retrieve and

maintain its data, the four more commonly used are:
 Query Language:
 It consists of simple, English-like statements that allow
users to specify the data to display, print, or store.
 Query by Example:
 Form: sometimes called a data entry form,
 Report Generator:
 also called a report writer, allows users to design a
report on the screen, retrieve data into the report design,
and then display or print the report.
 It usually allow you to format page numbers and dates;
titles and column headings; fonts, font sizes, color, etc.
 Cont…

c) Data Security
 A DBMS provides means to ensure that only authorized
users’ access data at permitted times.

 Most DBMSs allow different levels of access privileges to be

identified for each field in the database.

 Access privileges for data involve establishing who can enter

new data, modify existing data, delete unwanted data, and
view data.
 Cont…

d) Backup and Recovery

 A DBMS provides a variety of techniques to restore the

database to a usable form in case it is damaged or destroyed.
 A backup, or copy, of the entire database should be made on a
regular basis.
 More complex DBMSs maintain a log / record/ diary, which is
a listing of activities
 A DBMS that creates a log usually provides a recovery utility.
 The recovery utility restores the database using roll forward and
rolls back techniques.
 Continuous backup is a backup plan in which all data is backed
up whenever a change is made.
6.4.6 Relational, Object-Oriented, and Multidimensional Databases models
 Every database and DBMS is based on a specific data model.
 A data model consists of rules and standards that define how the
database organizes data.
 A data model defines how users view the organization of the data.
 Three popular data models in use today are relational, object-
oriented, and multidimensional.

1. Relational Databases
 It is a database that stores data in tables that consist of rows and
columns.
 a file processing environment uses the terms file, record, and field
to represent data.
 A user of a relational database, by contrast, refers to a file as a
table, a record as a row, and a field as a column.
 A developer of a relational database refers to a file as a relation, a
record as a tuple, and a field as an attribute.
 Cont…

2. Object-Oriented Databases

It stores data in objects.

An object is an item that contains data, as well as the
actions that read or process the data.
It can store more types of data, access this data faster,
and allow programmers to reuse objects.
It stores unstructured data more efficiently than a
relational database.
Unstructured data can include photos, video clips,
audio clips, and documents
 Cont…

Examples of applications appropriate for an object-oriented database include the

following:

 A multimedia database: stores images, audio clips, and/or video clips.

 A groupware database: stores documents such as schedules, calendars, manuals,

memos, and reports.

 A computer-aided design (CAD) database: stores data about engineering, architectural,

and scientific designs.

 A hypertext database: contains text links to other types of documents.

 A hypermedia database: contains text, graphics, video, and sound.

 Cont…

3. Multidimensional Databases

 a relational database is a two-dimensional table, a

multidimensional data-base can store more than two
dimensions of data.

 These multiple dimensions, sometimes known as a

hypercube, allow users to access and analyze any view of
the database data.
 6.4.7 Database Administration

 The role of coordinating the use of the database belongs to the

database analysts (DA) and database administrators (DBA).
 The DA and DBA are responsible for managing and coordinating
all database activities.

 The DA, or data modeler, focuses on the meaning and usage of

data.
 The DBA requires a more technical inside view of the data.
 The DBA creates and maintains the data dictionary, manages
security of the database, monitors the performance of the
database, and checks backup and recovery procedures.

 Employees should learn how to use the data in the database

effectively.
6.4 Planning, Implementing, and controlling Information systems
a. Information System Planning (ISP):
 It is a structured approach developed by IBM to assist organizations in
establishing a plan to satisfy their short and long
term information requirements.
 The goal of strategic ISP is to develop strategies to ensure that the IT function
and infrastructure are aligned with and support the business to enable it to
achieve its business mission, objectives, and goals.
b. Information systems implementation:
 It is the process of defining how the information system should be built,
ensuring that the information system is operational and used, ensuring that
the information system meets quality standard.
 Implementation is the process that turns strategies and plans into actions in
order to accomplish strategic objectives and goals.

 The strategic plan addresses the what and why of

activities, Whereas implementation addresses the who, where,
when, and how questions.
 Cont…

c. Information System Control:

 Information system controls are methods and devices that attempt
to ensure the accuracy, validity and propriety of information
system activities.

There are various controls. These are:

 application controls,
 implementation control,
 software controls,
 hardware controls,
 computer operations controls,
 data security controls, and
 administrative controls.
The end…of
Chapter 6
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