CSE1720 Summer Semester 2005 Lect 9 / 1 Lecture No. 9 That’s 2 to go, plus the review ! Decision...

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CSE1720 Summer Semester 2005 Lect 9 / 1 Lecture No. 9 hat’s 2 to go, plus the review ! Decision Making Security Coles

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 / 3

SOME ASPECTS OF THE DECISION PROCESS

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

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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 / 38

Database SecurityDatabase Security

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.

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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 / 65

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.

CSE1720 Summer Semester 2005 Lect 9 / 79