CSE1720 Summer 2005 Lecture 8 / 1 Lecture No. 8 Communications.
CSE1720 Summer Semester 2005 Lect 9 / 1 Lecture No. 9 That’s 2 to go, plus the review ! Decision...
-
Upload
nathan-harrington -
Category
Documents
-
view
215 -
download
1
Transcript of CSE1720 Summer Semester 2005 Lect 9 / 1 Lecture No. 9 That’s 2 to go, plus the review ! Decision...
CSE1720 Summer Semester 2005 Lect 9 / 1
Lecture No. 9Lecture No. 9
That’s 2 to go, plus the review !
Decision MakingSecurityColes
CSE1720 Summer Semester 2005 Lect 9 / 2
Lecture ObjectivesLecture Objectives
1. To provide you with some contact with Decision Making Processes and to illustrate support from Computer Technology
2. A few thoughts about Security (including Database Security) will appear
3. And we will go ‘shopping at Coles’.
CSE1720 Summer Semester 2005 Lect 9 / 4
Goedels’ TheoremGoedels’ Theorem
“Mathematical statements exist for which no systematic procedure could determine whether they are true or false”
also known as undecidable propositions
Some statements :
‘This statement is a lie’
‘We cannot prove this statement to be true’
Socrates : ‘ What Plato is about to say is false’
Plato : ‘ Socrates has spoken truly’
If the statement is true then it is false
If it is false, it is true. [self referential paradoxes]
CSE1720 Summer Semester 2005 Lect 9 / 5
The Decision ProcessThe Decision Process
INTELLIGENCE
DESIGN
CHOICE
Determine ConditionsRequiring ManagementAttention/Decision
Develop and AnalysePossible Courses (Alternatives) of Action
Select a particular course of action from the availablealternatives (models, QA,Projections)
CSE1720 Summer Semester 2005 Lect 9 / 6
Decision MakingDecision Making
• Rules form an important part of the decision-making Rules form an important part of the decision-making environment of an organisation (enterprise)environment of an organisation (enterprise)
• Rules may beRules may be– word of mouthword of mouth– referenced in a rules manualreferenced in a rules manual– embedded inn application code (DBMS Integrity)embedded inn application code (DBMS Integrity)– installed in a separate structure (e.g. law)installed in a separate structure (e.g. law)
Rules affectRules affect– hiring and firing procedureshiring and firing procedures– product return policiesproduct return policies– sales markdown strategies (January sales ?)sales markdown strategies (January sales ?)– manufacturing methodsmanufacturing methods
• Rules form an important part of the decision-making Rules form an important part of the decision-making environment of an organisation (enterprise)environment of an organisation (enterprise)
• Rules may beRules may be– word of mouthword of mouth– referenced in a rules manualreferenced in a rules manual– embedded inn application code (DBMS Integrity)embedded inn application code (DBMS Integrity)– installed in a separate structure (e.g. law)installed in a separate structure (e.g. law)
Rules affectRules affect– hiring and firing procedureshiring and firing procedures– product return policiesproduct return policies– sales markdown strategies (January sales ?)sales markdown strategies (January sales ?)– manufacturing methodsmanufacturing methods
CSE1720 Summer Semester 2005 Lect 9 / 7
Decision MakingDecision Making
• Can there be decisions without rules ?• What conditions, agendas, goals can affect a decision ?• Are the ‘reasons’ for decisions be analysed ?• Is there some way of knowing that the ‘right’ decision was
made ?
• Decisions are frequently associated with ‘action’• Decisions may be about ? ? ?
– Goals of a corporation (enterprise) - for instance diversification or concentration
– Rules of a corporation - e.g. dress code on Fridays to be casual (Telstra)
CSE1720 Summer Semester 2005 Lect 9 / 8
Decision MakingDecision Making
• Another example is a decision to alter a predictive model Business and Financial Analysts may change the components or domains for credit risk prediction - any recent examples spring to mind ?
• Decisions can only be implemented on things which can be changed– Is a ‘decision’ to increase sales by say selling solar
panels on Jupiter or Mars really a decision ? Can it be implemented ?
CSE1720 Summer Semester 2005 Lect 9 / 9
Decision MakingDecision Making
• Making a decision is the function of combining goals and predictive models– The lowering of prices of some products (e.g. K-Mart
sales) is the result of• a goal to maximise sales• a model which relates sales to prices
– The denial of credit by a bank to a loan applicant is the result of
• a goal to minimise loan write-offs• a predictive model which relates selected applicant
attributes (properties) with the likelihood of a loan default
CSE1720 Summer Semester 2005 Lect 9 / 10
Decision MakingDecision Making
• Without goals there would be difficulty in deciding what course of action to take.
• Without the goal of maximising sales, there is no correct decision concerning product pricing
• Without a predictive model which equates product prices to product sales, there is no clear indication which decision will be most likely to maximise sales
CSE1720 Summer Semester 2005 Lect 9 / 11
Decision MakingDecision Making
Consider these decision making ‘challenges’
1. The need to automate some decision-making functions
2. The need to ensure consistent decisions
3. Difficulties in analysing how a decision was made
4. Complexities in the predictive model
5. Difficulties in interpreting stated goals (which may change)
6. Instability in the goals
7. Interpersonal dynamics (know any recent examples ?)
8. Fluctuations in the predictive models
9. Conflict between data-driven and model-driven understanding or ‘knowledge (beliefs)’
CSE1720 Summer Semester 2005 Lect 9 / 12
Decision MakingDecision Making
Business-rule automation tools focus on
1. The need to automate some decision-making functions
2. The need to ensure consistent decisions
Decision analysis tools focus on
3. Difficulties in analysing how a decision was made
4. Complexities in the predictive model
5. Difficulties in interpreting stated goals (which may change)
6. Instability in the goals
Group decision-support tools focus on
7. Interpersonal dynamics
CSE1720 Summer Semester 2005 Lect 9 / 13
Decision MakingDecision Making
And items 8 and 9 ?
8. Fluctuations in the predictive models
9. Conflict between data-driven and model-driven understanding or ‘knowledge (beliefs)’
more on these later on.
Business rules connect to transaction systems and help to automate decision-making processes which were previously the function and responsibility of persons - the goals are fixed and are explicit.
CSE1720 Summer Semester 2005 Lect 9 / 14
Decision MakingDecision Making
Decision-analysis tools (software)
Decisions are based on multiple predictive models
There are complex measures of uncertainty or imprecision
The goals may be variable
Decision analysis is related to operations research - the area where– mutually exclusive goals– shared scarce resources
The intention is to maximise profit, stability
CSE1720 Summer Semester 2005 Lect 9 / 15
Decision MakingDecision Making
Group decision support tools
Consider the situation of many managers of an organisation attempting to arrive at a common decision to– fire 300 staff– increase sales to justify no firings– increase sales and increase the number of staff– reduce staff but maintain existing sales or improve sales
Interpersonal / political challenges
Anonymous electronic meeting environment
Vote on merit of ideas rather than on identities
CSE1720 Summer Semester 2005 Lect 9 / 16
The Decision ProcessThe Decision Process
Stage Description
1. Determine objectives, problems
2. Identify courses of action available to
achieve / rectify
3. Collect Information to assess available options
4. Select criteria for evaluation purposes
5. Evaluate information acquired
6. Select preferred course of action / strategy
7. Implement chosen option / strategy
8. Monitor results - post analysis
CSE1720 Summer Semester 2005 Lect 9 / 17
Decision Support SystemsDecision Support Systems
Characteristics:
Interactive Computer Base Information Systems
Decision Models - Statistical Forecasting, Profiling ...
Management Data Base
OUTPUTS: Information ‘tailored’ to SUPPORT specific
decisions faced by Managers ( Car Industry,
Manufacturing Industry, Farming Industry,
Financial, Accounting etc ...)
CSE1720 Summer Semester 2005 Lect 9 / 18
Decision Support Systems ComponentsDecision Support Systems Components
Data Base
Report Writer
Graphics
Computing Facilities - Processor, Storage, I/O Devices
Communications
Human Skills:
Objectivity Communication
Clear Thinking Analytical Ability
Lateral Thinking Computer Literacy
Adaptability Tenacity
CSE1720 Summer Semester 2005 Lect 9 / 19
The Decision MakersThe Decision Makers
Who are ‘The Decision Makers’ ?
In the early days of decision support, the Decision Makers were a small group of high-level executives (does this sound familiar ?)
Since then however, the business intelligence industry has helped push data-drive decisions to a much wider user environment
CSE1720 Summer Semester 2005 Lect 9 / 20
The Decision MakersThe Decision Makers
Today, the ‘decision makers’ are business people who are closest to the point where an action needs to be taken.
This can be:– in the supply chain– when in contact with a customer (email, web-mail,
telephone, (fax ?)– at a strategic executive meeting
CSE1720 Summer Semester 2005 Lect 9 / 21
Business IntelligenceBusiness Intelligence
Business Intelligence addresses :
Synthesising or constructing useful knowledge from large sets of data
It involves
integration
summarisation
abstractions
ratios
trends
allocations
CSE1720 Summer Semester 2005 Lect 9 / 22
Business IntelligenceBusiness Intelligence
It addresses
comparing generalisations based on data with model-based assumptions
reconciling these when they differ
creative thinking supported by data
using data carefully
understanding how to calculate derived data
continual learning
modifying goals
CSE1720 Summer Semester 2005 Lect 9 / 23
Business IntelligenceBusiness Intelligence
The functions which support Business Intelligence are– data collection– data storage (why ?)– data translations - time, currencies– dimensional structuring (allows for extractions on a
number of bases)– access models– predictive models– model verification– knowledge sharing– resource allocation scenarios– decision implementation strategies
CSE1720 Summer Semester 2005 Lect 9 / 24
Decision Support Systems Decision Support Systems
Provide a quick response to SIMULATED problems (software support)
Generally LESS COSTLY than real life exercises
Variety of ‘business decision models’
- linear programming
- decision trees
- simulation
- queueing
- financial analysis DCF, EMV, NPV
- forecasting / projections Which one(s)
- risk analysis best suit the
- sensitivity analysis conditions ?
CSE1720 Summer Semester 2005 Lect 9 / 25
Decision Support Systems SoftwareDecision Support Systems Software
• Model Building– Relationships between parameters
• What-if Incremental Assumptions– Highly useful aspects
• Backward Iteration– Establish a Target and work back - ( ? regression)
• Risk Analysis– Use probability distributions to assess outcomes
• Statistical Analysis and Management Science Models– Regression Time Series Analyses
• Financial Functions– Depreciation Methods Return on Investment
CSE1720 Summer Semester 2005 Lect 9 / 26
Decision Support SystemsDecision Support Systems
• Programmable Tasks = Rules / Procedures Known
* Clear Rules
* Rules can be built into a software program
* All required data is available
* The Decision Maker is supported by software processes
* Complex situations may indicate a very deep but
‘modular’ and / or progressive structure• Some Examples:
* Mergers, Takeovers, Off-Loadings
* Plant Expansion
* New Products
* Portfolio Management * Marketing
CSE1720 Summer Semester 2005 Lect 9 / 27
Decision Support SystemsDecision Support Systems
• Non-Programmable Tasks
* Unstructured = No Definable Rules
* Does not permit software programs to be developed
* Cannot determine :
- Objectives
- Trade Offs
- Relevant Information
- Methods for analyses
CSE1720 Summer Semester 2005 Lect 9 / 28
Decision SupportDecision Support
• Some Offsets:
Managers tend to be busy and highly paid
This will normally lead to a reluctance to learn the ‘special features’ of a software package
OR to understand the problem which the software BEST addresses
• A brief and cursory understanding may lead to– lack of understanding of limitations– lack of clarity in interpretation of results
CSE1720 Summer Semester 2005 Lect 9 / 29
Decision SupportDecision Support
• Related Matters
Economic models invariably are developed for
‘General Cases’
Quality of Information Used
Some models have default values/options - may not be suitable for specific instances
CSE1720 Summer Semester 2005 Lect 9 / 30
Decision SupportDecision Support
Uncertainties - types and sources of
- effects on decision making
A few examples:– response to direct mailings– Internet home page accesses– default rates for loans– sales reports
• sales reports - doubts - are ALL sales reflected ?
- how is ‘missing’ data handled - 0 ?
- is the program 100% error free ?• Can such doubts be quantified ? Should they be ?
CSE1720 Summer Semester 2005 Lect 9 / 31
Business IntelligenceBusiness Intelligence
Data uncertainty can be : predictions
historical
Budgeting, marketing are widely analysed using spreadsheets.
Uncertainties are handled (generally) with a single valued estimate.
Next year’s sales may include a single estimate in the budgeting exercise.
Healthcare (as in Medicare) may be based on a single value for doctors’ productivity (or hospital case-mix).
CSE1720 Summer Semester 2005 Lect 9 / 32
Business IntelligenceBusiness Intelligence
Let’s look at a company which is trying to float a new product, or increase its sales of an existing product.
5 possible promotional methods are available– radio– newspaper (local, local/country, local/interstate ?)– television advertising– direct mail– an ‘all-bells’ presence on the World Wide Web
There is a hidden agenda - what is the Competition doing or how is it going to react ?
CSE1720 Summer Semester 2005 Lect 9 / 33
Business IntelligenceBusiness Intelligence
There could be :– no competition– low competition– medium competition– high competition– multiple competitor competition (e.g. car industry)– and what is ‘low’, ‘medium’, ‘high’ ?
• A decision analysis tool will accommodate a probabilistic component.
• The ‘unknown’ is a spreadsheet model is the range of likelihood of competitive promotions, and of course their effect on sales
CSE1720 Summer Semester 2005 Lect 9 / 34
Business IntelligenceBusiness Intelligence
A decision analysis tool will simulate a number of scenarios based on the specified probabilities, and will indicate the decision which will (in this case) have the best likelihood of maximising profit.
And the past ? - meaning legacy or historical data ?– Quality of data is important here– Customer code structures - any changes over 3 to 5
years /– Customer name spelling ?– Incorrect replication– Regional boundary alterations ? - are we able to compare
oranges to oranges ?
CSE1720 Summer Semester 2005 Lect 9 / 35
Business IntelligenceBusiness Intelligence
• What about missing data - is it shown as zero ? • Should it be zero ? (is this accurate ?)• Data in the wrong field - a name in an address field ?• The number of items on an invoice = the number actually
received ?• Deliberate errors on response cards - age, income, number
of people living at an address, types of goods normally purchased etc.
• And finally, does software assume for example an even distribution of error ?
CSE1720 Summer Semester 2005 Lect 9 / 36
Business IntelligenceBusiness Intelligence
And the next stage ?
Business Performance Management– A ‘total’ view which ignores operational category
boundaries– Efficiency and profitability boost– Key goals - reduced costs, higher productivity, faster
cycle times– Aligns corporate strategy with line operations– Uses predictive techniques– Control of ‘out of control’ growth in data storage
CSE1720 Summer Semester 2005 Lect 9 / 37
Decision SupportDecision Support
‘Results’ and Real Life
• Most simulators and models produce numeric, character and objects based results
• There may be a ‘hidden’ component which has biased the result(s)
• It is advisable to associate
- Sensitivity testing,
- Reliability testing,
- Risk analysis to provide a sound basis for results
CSE1720 Summer Semester 2005 Lect 9 / 39
Database Access SecurityDatabase Access Security
In a multi-user environment, security is important, if not essential
Without security, malicious users could ( ? would)• invade a database, • view confidential information• make unauthorised alterations
CSE1720 Summer Semester 2005 Lect 9 / 40
Database Access SecurityDatabase Access Security
The major forms of security are
1. User Management and Authentication
2. Privilege Management and Roles
3. Database Resource Limits
4. User Password Management
5. Database Auditing
6. Special Security features
CSE1720 Summer Semester 2005 Lect 9 / 41
Database SecurityDatabase Security
• DATABASE SECURITY is the protection of a database from• unauthorised access• unauthorised modification• destruction
• PRIVACY is the right of individuals to have some control over information about themselves
• INTEGRITY refers to the correctness, completeness and consistency of stored data
CSE1720 Summer Semester 2005 Lect 9 / 42
Database Access SecurityDatabase Access Security
1. User Management and Authentication
A user must have a username (create user …)
The DBMS will authenticate that a connect attempt should proceed to connection, or not.
CSE1720 Summer Semester 2005 Lect 9 / 43
Database Access SecurityDatabase Access Security
2. Privilege Management
After the ‘create’ user process, a user needs privileges to perform specific database functions
A user cannot connect unless a ‘Create Session’ system privilege is allocated
A user cannot create a table in the user schema unless the ‘create table’ system privilege is allocated
A user cannot delete rows from a table in a different schema unless the user has the ‘delete’ object privilege for the table
CSE1720 Summer Semester 2005 Lect 9 / 44
SecuritySecurity
Some Random Ideas:
• Physical Access controls - badges, closed circuit TV, guards...
• Terminal Authentication User I/D’s, Passwords
(System Level and Database Level)• Authorisation - Authorisation Rules
(which users can access what information
What operation users can invoke
Read Only, Read/Write, Update, Delete• User Views - non updatable access, but access to latest
level of information
CSE1720 Summer Semester 2005 Lect 9 / 45
Security Security
User
Application
Database
Security Table
user name
Authority Checks(grants)
Access authority
CSE1720 Summer Semester 2005 Lect 9 / 46
Server SecurityServer Security
1. First layer - LAN or Host Computer Operating System
(1) Login / valid username / password
(2) Privileges / permissions on directories
and files (read/write/execute/delete)
Operating System controls
CSE1720 Summer Semester 2005 Lect 9 / 47
Server SecurityServer Security
2. Second Layer - Database Server
(1) Valid user accounts / password
(some servers use operating system authentication
- eliminates a level of security checking)
(2) Privileges / permissions
Database Administrator - GRANT and REVOKE
commands
Examples: Create, Alter, Drop database objects .....
(Databases, Tables, Views, Procedures ..)
CSE1720 Summer Semester 2005 Lect 9 / 48
Server SecurityServer Security
More examples: Create, Alter, Drop Database Users
Start Up and Shut Down the Database Server
Customise Specific Jobs or Locations Privileges
Different Administrators and Different Functions
CSE1720 Summer Semester 2005 Lect 9 / 49
Server SecurityServer Security
OBJECT PRIVILEGES
All database servers control access to :
Tables, Views, Procedures with Object Privileges
Examples: Select, Insert, Update, Delete privileges on
tables and views
References privilege (associated with referential
integrity constraints and Rules/Procedures
Execute - controls the ability to execute a Procedure
CSE1720 Summer Semester 2005 Lect 9 / 50
Server SecurityServer Security
A result of the application of attribute lists and object privileges.
IF a server cannot insert a value for a not-null attribute, AND the attribute does not have a default attribute value, all INSERT statements on the table will :
(a) be suspended Y/N
(b) override the not-null condition Y/N
(c) fail Y/N
CSE1720 Summer Semester 2005 Lect 9 / 51
Oracle SecurityOracle Security
• Security Manager (software)
Menu Options:
- Create (a new user)
- Create Like (an existing user)
- Remove
- Revoke Privilege (remove a selected privilege)
- Add Privilege to user
- Change Account Status (enable/disable access)
CSE1720 Summer Semester 2005 Lect 9 / 52
Oracle SecurityOracle Security
• Role
- Create (create a role)
- Create Like (an existing role)
- Remove (delete nominated role)
- Revoke Privilege
- Add Privilege
CSE1720 Summer Semester 2005 Lect 9 / 53
And Microsoft Access ?And Microsoft Access ?
There are a number of privileges available tothe System Administrator.
They are similar in application to the Security featuresof DB2, SQLServer and Oracle, but are more limited.
Access in Network mode offers more security features.
CSE1720 Summer Semester 2005 Lect 9 / 54
Database Access SecurityDatabase Access Security
There are 3 techniques:
1. Password Authentication
2. Operating System Authentication - the Operating System forwards the user account details to the DBMS to determine if the user has database access. Used where direct connection to the database server is set up
3. Global User Authentication - used in network environments where users access multiple databases, and the network is not necessarily secure
Accounts may be locked or unlocked by the Database Administrator or the System Administrator
CSE1720 Summer Semester 2005 Lect 9 / 55
Database Access SecurityDatabase Access Security
There are 2 major types of Privileges -
System privileges
Object privileges
A system privilege gives a user the ability to perform system-wide operations
‘Create Session’ system privilege gives a user connection to the database server, and permits a database session to be established.
‘Create Table’ system privilege gives a user the ability to create a table, or many tables, in the user’s schema
CSE1720 Summer Semester 2005 Lect 9 / 56
Database Access SecurityDatabase Access Security
‘Create Any Table’ system privilege allows a user to create a table in any schema of the database
‘Create Any Type’ gives a user the privilege to create types and associated type bodies in any schema in the database
‘Select Any Table’ means the user can query any table in the database
‘Execute Any Procedure’ - a user can execute any stored procedure, stored function or packaged component in the database
‘Execute Any Type’ - a user can reference and execute methods of any type in the database
CSE1720 Summer Semester 2005 Lect 9 / 57
Database Access SecurityDatabase Access Security
The ALTER DATABASE system privilege (which allows alteration to any table in a database) is normally restricted to the Database Administrator.
Developers normally have ‘create table’, ‘create view’, and create type’ system privileges
Every authorised user (including ‘query’ users) would normally have the ‘create session’ privilege
CSE1720 Summer Semester 2005 Lect 9 / 58
Database Access SecurityDatabase Access Security
An Object Privilege gives a user the ability to perform a specific type of operations on a specific database object such as a table, view, or stored procedure
The ‘Select’ object privilege for a view named ‘Extract’ for instance would allow the select function to execute the view.
The ‘Insert’ object privilege for say the ‘Customer’ table would allow the user to insert new rows into the table
The ‘Execute’ privilege for an object type, for example ‘Address’, would permit a user to use this type when creating other database objects, and the use of the type’s methods.
CSE1720 Summer Semester 2005 Lect 9 / 59
Database Access SecurityDatabase Access Security
In an Invoicing or Ordering application a user may be granted the privileges of
Select, Insert, Update, Delete for say the Customers, Orders and Items tables,
and could have the Select and Update privileges for the Parts table
Privileges are granted to nominated users, or groups of users
and are revoked to remove the privilege(s)
The DBA or SA is normally the agent for these functions
CSE1720 Summer Semester 2005 Lect 9 / 60
Database Access SecurityDatabase Access Security
Privilege Management and Roles.
These are ‘bundles’ of privileges which can be granted to many users who need the privileges to do their work.This is better than allocating individual privileges to each user
- it is less time consuming
- modifications affect all users simultaneously
- number of different roles can be created depending on the nature of the application and the requirements for each user
- roles can be enabled and disabled as required
Roles can be made ‘default’ and subject to authentication
CSE1720 Summer Semester 2005 Lect 9 / 61
Database Access SecurityDatabase Access Security
Resource Limitation
Typical Areas:
Tablespace Quotas - set as a number of bytes
Resource Limit Profiles - this is a set of resource limit settings such as :
CPU time per session or per statement Logical disk I/O, per session or statement
Concurrent database sessions per user
Maximum amount of connect time and idle time per session
Maximum amount of server memory available to a
multithreaded server session
CSE1720 Summer Semester 2005 Lect 9 / 62
Database Access SecurityDatabase Access Security
Resource Limit Profiles can also be used to enforce
– the number of consecutive failed connection attempts– the user account password lifetime– the number of days an expired account can be used
before the account is locked– the amount of elapsed before a previously used
password can be reused (or never)– ‘obvious’ account password control (e.g. family name)
CSE1720 Summer Semester 2005 Lect 9 / 63
Database Access SecurityDatabase Access Security
Database Auditing
– Selective Auditing
the database can generate an audit record each time a user issues a ‘drop table’ statement
the database can generate an audit record each time a user makes use of the ‘select any table’ system privilege to query a table in the database
the database can generate an audit record each time a user deletes a record from a nominated table
CSE1720 Summer Semester 2005 Lect 9 / 64
Database Access SecurityDatabase Access Security
Each audit record includes information about the audited statement - the operation, the user, data and time
These records are stored in an audit trail. It’s a storage area.
The audit records can be stored in either the database audit trail, or the audit trail of the operating system which is resident in the Server.
CSE1720 Summer Semester 2005 Lect 9 / 66
A Shopping TripA Shopping Trip
We are now going to ‘visit Coles’ to look at some of the Technology, and Management Information which is generated
You have probably visited Coles and bought a wide a variety of goods.
The Company (Coles Myer Ltd) operates about 80 stores in the Melbourne area and there are other stores in the Regional areas (Geelong, Ballarat, Bendigo) and large Country cities such as Warragul, Colac, Traralgon, Benalla, Shepparton, Ararat ……..
They also operate Interstate
CSE1720 Summer Semester 2005 Lect 9 / 67
Coles Myer LtdColes Myer Ltd
The Company is updating its Customer outlet scanning equipment, but like most Companies cannot do this ‘all at once’ or ‘all at the same time’ - any suggestions why this is so ?
As Coles refurbishes their stores, they are equipped with ‘state of the art’ equipment
Does this conflict with lower sales/ profits and a fluctuating share price ?
CSE1720 Summer Semester 2005 Lect 9 / 68
Coles Myer LtdColes Myer Ltd
The equipment consists of– multi dimensional laser scanners, which have built in
scale (weighing) facilities
– 2 LCD screens per lane. Full colour and high resolution
– The Operator’s screen is a touch screen (also colour)
– The printer - high speed thermal printer
CSE1720 Summer Semester 2005 Lect 9 / 69
Coles Myer LtdColes Myer Ltd
If you watch carefully you will notice that printing does not does not occur until the items have been paid for (any reason for this ?)
Payments may be made by– credit / debit card– cash– shareholder discount cards– vouchers– cheque– CML gift vouchers
Fly Buy credits are also active.
CSE1720 Summer Semester 2005 Lect 9 / 70
Coles Myer LtdColes Myer Ltd
Each check out consists of the devices mentions plus a PC
There is a LAN in each store (for what purpose ?)
The checkouts will operate in a standalone mode if a network failure occurs (what about the credit cards … ?)
Fail safe : Each store has a standby generator, Uninterruptable Power Supply (UPS) and battery backup emergency lighting
CSE1720 Summer Semester 2005 Lect 9 / 71
Coles Myer LtdColes Myer Ltd
Prices are maintained in 2 databases
Each store has a price look up local database
Each Point of Sale unit has a copy of the database prices in case the unit has to operate on a stand-alone basis
CSE1720 Summer Semester 2005 Lect 9 / 72
Coles Myer LtdColes Myer Ltd
Price changes are maintained in a central database (Coles System Reference), and this is sent to all stores once a week via communications.
Individual stores use this new data to update item shelf prices (and of course for customer purchases)
CSE1720 Summer Semester 2005 Lect 9 / 73
Coles Myer LtdColes Myer Ltd
Store devices – Point of Sale– Client– Point of Sale Server– Back Office Servers
are Pentium PC’s running on Windows NT
Central Processing is on Alpha Mainframes (as is Oracle here at Monash)
CSE1720 Summer Semester 2005 Lect 9 / 74
Coles Myer LtdColes Myer Ltd
The retail stores are divided
– into State operations
– then 2 geographic regions within each State except South Australia and Tasmania
– then into areas of 6 to 10 stores
CSE1720 Summer Semester 2005 Lect 9 / 75
Coles Myer LtdColes Myer Ltd
State Operations
Victoria New South Wales West Australia ……
Region 1 Region 2
S1 S2 S3 S4 S5 ……. S10
CSE1720 Summer Semester 2005 Lect 9 / 76
Coles Myer LtdColes Myer Ltd
Information ?
Hourly sales
Customer counts are available in all stores
Customer Resource Management ?
Yes. Captured at Point of Sale
Numerically via transactions
Quantitatively via the Fly Buys program (Coles + NAB + Shell + Qantas/Ansett)
CSE1720 Summer Semester 2005 Lect 9 / 77
Coles Myer LtdColes Myer Ltd
Seasonal variations in Items
Soups and chocolate biscuits are in demand during the cooler months
Fruit juices, frozen drink demand drops off in the same period
Item popularity
Management of ‘popular’ items - these are determined by the customers - and reported to the store manager.
Success items stay ‘on show’ - less successful or non successful items are withdrawn - replaced by new lines
CSE1720 Summer Semester 2005 Lect 9 / 78
Coles Myer LtdColes Myer Ltd
There are also ‘promotions’ and special analyses are made of the item performance during the promotion and for some time after the promotion.
Item Procurement:
Item suppliers are generally locally based, but may also be part of an International Business (can you think of one ?)
Suppliers are required to respond to tenders. A supplier might provide many items (fruit juices, butter, meat, vegetables) and there can be ‘specialist’ suppliers - for instance organic products, health products.