CHAPTER 3

The External World Component

The alpha and the omega of the corporate information factory is the external world in which business is transacted. Without an external world of commerce, there would be no corporate information factory. So, let’s take a quick look at this component that feeds the fuel and consumes the information produced by the CIF.

It is easy to focus on the technology and other aspects of the corporate information factory and forget the external world because the external world is full of normal occurrences and normal events. The very ordinary nature of the external world makes us take it for granted.

But the external world is where business and commerce takes place. In a sense, the corporate information factory is merely an adjunct to the external world. Stated differently, the external world would exist and commerce would go on without the corporate information factory. However, the corporate information factory could not exist without the external world’s transaction producers and information consumers.

Transaction Producers

One of the focuses of the external world, at least insofar as the CIF is concerned, is to generate business transactions. A brief taxonomy of the important characteristics of the transactions that occur in the external world follows.

A Taxonomy of Transactions

   Is the transaction direct or indirect?

   A direct transaction might be typified by the use of an ATM machine.

   An indirect transaction might be typified by the use of a bank teller in order to cash a check.

   Is the transaction at the detailed or the summary level?

   An example of a detailed transaction is the purchase of an airplane ticket.

   An example of a summary level transaction is the raising of interest rates by the bank.

   Is the transaction immediate or delayed?

   An immediate transaction might be the placing of a coin in a soda machine.

   A delayed transaction might be the making of a loan application.

   Is the transaction large or small?

   A large transaction might be the purchase of a company.

   A small transaction might be the purchase of a pack of gum.

   Is the transaction wholesale or retail?

   A wholesale transaction might be the acquisition of a ream of paper.

   A retail transaction might be the purchase of a pencil.

   Is the transaction personal or machine assisted?

   A personal transaction might be a massage.

   A machine-assisted transaction might be the display of wares on the Internet.

   Is the transaction structured or unstructured?

   A structured transaction might be an activity executed in SAP.

   An unstructured transaction might be the examination of food at a farmers market.

   Is the transaction integrated or unintegrated?

   An integrated transaction might be the purchases made at Disney World.

   An unintegrated transaction might be an interaction with the telephone company in which you have two phones, and the telephone company does not realize it.

   Is the transaction commercial or retail?

   A commercial transaction might be the exchange of goods between manufacturers.

   A retail transaction might be the placement of funds in an individual checking account.

In short, there are many facets to the way business is conducted. The corporate information factory must take into account all of these facets and more.

Consumers of Information

The relationship of the participants in the real world to the corporate information factory is both as a creator of transactions and as a consumer of the information. The transactions executed by the participants creates data that is captured by the corporate information factory. The information generated and manipulated is, in turn, used by the participants in the external world in order to make decisions.

Who Are the Participants?

The list of participants in the external world is a rather long one because, in one way or another, everyone is on the list. Furthermore, most people are on the list more than once because at different points in time the participants play different roles.

In general, the participants in the external world with whom the corporate information factory must interact include:

   Consumers

   Partners

   Vendors

   Clerical workers

   Managers

   Statisticians

The interface with the participant in the external world is germane to the success of the corporate information factory. To be successful, the interface needs to be:

   Fast

   Efficient

   Convenient

   Cheap

   Capable of performing a useful function

   Simple to use

   Scalable

The interface needs to accommodate all of these features. If any one feature is not present, then the interface may be deemed to be a failure despite the existence of attractive features.

Some “nice to have” features of the interface to the corporate information factory include:

   An elegant interface

   Flexibility to accomplish many functions in the same place

   Availability of the interface in many places and in many forms

The interface to the external participant can take many forms—some high tech and some decidedly low tech. Ultimately, the form will be driven by the capabilities of the application (e.g., ERP, CRM, etc.) and technology (e.g., Internet, Client/Server) used.

Summary

An important component of the corporate information factory is the external world, which consists of transaction producers and information consumers. These participants (individuals, employees, partners, and vendors) fuel the CIF. They provide the raw material (transactions), direct the machinery, and consume the final product (information). Without their participation, there would be no need for the corporate information factory to exist. Creating an effective interface is key to gaining and maintaining their participation.

Now that we have talked a bit about the external world and its value to the corporate information factory, let’s focus our attention on the component of the CIF that collects transaction data from this external world, the Applications component.