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Chapter 7_ Enterprise-Wide Information Systems

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Chapter 7_ Enterprise-Wide Information Systems Powered By Docstoc
					ENTERPRISE-WIDE INFORMATION
         SYSTEMS
Chapter 7
           SYSTEM CATEGORIES

Enterprise-wide Systems
aka ____________ ____________ are systems that
allow companies to integrate information across
operations on a company-wide basis


 ____________ Systems (IOS)
 Systems that communicate across organizational
 ____________ whose goal it is to streamline
 information flow from one company to another


                        7-2
   ENTERPRISE SYSTEMS – WITHIN THE
            ORGANIZATION
Example – Order Process and Information Flow




                                               7-3
INTERORGANIZATIONAL SYSTEMS – ACROSS
           ORGANIZATIONS
 Example – Order Process and Information Flow




                                                7-4
    THE VALUE CHAIN – INTERNALLY FOCUSED




                                                                                               7-5
Used to identify the flow of information through a set of business activities. It identifies
two types of activities: primary and support.
THE VALUE CHAIN - ____________ ACTIVITIES
Functional areas within an organization that process inputs and produce outputs.
 These activities may vary widely based on the unique requirements of a
 company’s industry




                                                                                   7-6
Primary Activities include:
    • ____________ Logistics – receiving and stocking raw
        materials, parts, products
    •   Operations/Manufacturing – processing orders and raw
        materials into finished product
    •   ____________ Logistics – distribution of the finished
        product to customers
    •   Marketing and Sales – creating demand for the product (pre-
        sales activities)
    •   ____________ Service – providing support for the product
        or customer (post-sales activities)
THE VALUE CHAIN - ____________ ACTIVITIES
Support activities are business activities that enable Primary Activities. These
activities can be unique by industry but are generally more typical across industries.




                                                                                         7-7
Support Activities include:
   • ____________ – hardware and software that must be
     implemented to support applications for primary activities
   • Human Resources – employee management activities: hiring,
     interview scheduling, and benefits management
   • Technology Development – the design and development of
     applications that support the organization
   • ____________ – purchase of goods or services that are required
     as inputs to primary activities
   A VALUE SYSTEM – EXTERNALLY FOCUSED




                                                                 7-8
• A connection of value chains across organizations
• Allows the ____________ ____________ between
  organizations to support business activities
      • ____________ flow is information received from another
        organization
      • ____________ Flow is information sent to another
        organization
          OPTIONS FOR ENTERPRISE SYSTEMS –
                PACKAGED VS. CUSTOM

____________ Applications




                                                                                        7-9
“____________ ____________” computer applications purchased from a vendor or the
company that created the system (i.e. Quicken or MS Money for financial applications)




Packaged Key Characteristics
   • Best Use –

   • Cost Effectiveness –

   • Organizational Fit –

   • Maintenance –
           OPTIONS FOR ENTERPRISE SYSTEMS –
                 PACKAGED VS. CUSTOM

____________ Applications




                                                                                       7-10
“____________” computer applications created by the organization or a third party (e.g. a
consulting organization)



Custom Key Characteristics
   • Best Use –


   • Cost Effectiveness –


   • Organizational Fit –

   • Maintenance –
       ENTERPRISE SYSTEM EVOLUTION
System Evolution            System Types


 ____________
    Systems


Integrated Systems
  ____________)




Integrated Systems
  (____________




                     7-11
ENTERPRISE SYSTEMS - ____________ SYSTEM
                 EXAMPLE




 ____________ Legacy (stand-alone) Systems – information is not readily shared
 between systems (i.e. Inbound Logistics inventory information shared with
 Operations)
                                    7-12
        ENTERPRISE ____________ PLANNING
Integrated Packages (Enterprise ____________ Planning)
Richly functional systems designed to support many organizational functions (e.g.
accounting and finance)


ERP Key Characteristics
   • ____________ focused systems designed to support the internal
     operations of the organization
   • Highly integrated systems sharing a common data warehouse for
     information sharing across functions, using real-time updates
   • ____________ fit may be less for individual departments but the
     integrated sharing of information usually outweighs these issues
   • Usually packaged applications supported by the vendor utilizing a
     common user interface
   • ____________ is discouraged but these systems have the
     flexibility to support other outside applications using the common
     data repository and interfaces


                                         7-13
                                                                          In Tech We trust
ENTERPRISE SYSTEMS – INTEGRATED SYSTEM
EXAMPLE




      Integrated Systems – Information is stored in a single data repository and can
      be accessed and updated by all functional systems (e.g. Operations)

                                       7-14
    CHOOSING AN ERP SYSTEM - ISSUES

ERP Systems are:
  • Supplied by ____________ ____________ including
    SAP, Baan, Oracle, etc., with each having their own
    unique features and structures
  • ____________ ____________ that follow a one-size-fits-
    all strategy which means they may not support all
    functions as well as a custom system does
  • Similar but are also different. They should be selected
    based on factors including control, business
    requirements, and ____________ ____________
                            7-15
      CHOOSING AN ERP SYSTEM – SELECTION
                   FACTORS
____________ refers to where the power lies related to computing and decision
support systems (centralized vs. decentralized) in selecting systems, developing
policies and procedures, etc. (Who will decide?)




           ____________ ____________ refers to the system’s capabilities and how they
             meet organizational needs through the use of software modules or groups of
             business functionality (What do you need?)




____________ ____________ refers to the degree to which the software
incorporates industry standard methods for doing business which can
cause a need for significant business processes reengineering (How much
change is required?)




                                         7-16
ERP CAPABILITIES – SAP EXAMPLE




               7-17
ERP AND _____________ PROCESS REENGINEERING
_____________ Process Reengineering
A systematic, structured improvement approach by all or part of an
organization whereby people critically examine, rethink, and redesign business




                                                                                     7-18
processes in order to achieve dramatic improvements in one or more performance
measures (e.g. quality, cycle time, cost)




   Hammer and Champy, (“Reenginerring the Corporation”)
   “The radical redesign of an organization was sometimes necessary in order to
   lower costs and increase quality and information technology was the key enabler
   for that radical change.”
EXAMPLE OF BPR
Elle Mae Mortgage


           BUSINESS PROCESS REENGINEERING

   Steps in Business Process Reengineering




                                                                                           7-20
       • _____________ _____________ for the organization that specifies business
         objectives (e.g. reduced costs, shorter time to market, improved quality, etc.)
       • _____________ _____________ processes that are to be redesigned
       • _____________ _____________ existing processes as a baseline for future
         improvements
       • Identify ways that information technology can be used to improve processes
       • Design and implement a prototype of the new process(es)
         BPR TODAY – OBSERVATIONS AND
                  RESEARCH
Large bodies of _____________ are available on the role of ERP and BPR
implementations. Some of this research has come to the following conclusions:
    • Reengineering issues are as important as technical
      implementation issues

    • choose between making the ERP system fit the organization
      or the organization fit the ERP system

    • For an ERP system to help transform the organization and
      gain new competitive capabilities, a full organizational and
      operational change is required

    • first transform the organization and then implement the ERP
      system
                                        7-21
    ENTERPRISE SYSTEMS – INTEGRATED
         (INTERORGANIZATIONAL)
_____________ _____________
Richly functional systems designed to support externally focused
functions
_____________ – Supply Chain Management

_____________ – Customer Relationship Management)




                             7-22
     CUSTOMER RELATIONSHIP MANAGEMENT
_____________
Applications that help organizations attract new business and attract and encourage
repeat business


_____________ There are two primary functions in CRM systems:
  • Sales – tools designed to assist in presales activities such as marketing and
    prospecting (e.g. Sales Force Automation)
  • Service – tools that help with the post-sales aspects of the business (e.g. call center
    technology, analytics)



_____________ There are two primary sources of CRM systems:
   • CRM Software Vendors – Siebel, FirePond, Onyx, E.Piphany
   • ERP Vendors – SAP, Baan, Oracle, etc.


                                          7-23
       SALES SUPPORT – SALES FORCE
             AUTOMATION (SFA)




Sales Force Automation provides salespeople and sales
managers with computerized support tools to assist in daily
routines




                                 7-24
              SUPPLY CHAIN MANAGEMENT
_____________
Applications that accelerate product development and reduce cost associated
with procuring raw materials, components, and services from its suppliers
    • Supply Chain – the suppliers that an organization purchases from
      directly
    • Supply Network – the suppliers that an organization purchases from
      directly and its suppliers

 _____________
 There are two primary sources of SCM systems. These systems
 are built to tightly integrate with ERP systems
   • SCM Software Vendors – Agile, Ariba, I2, Manugistics,
     Commerce One, etc.
   • ERP Vendors – SAP, Baan, Oracle, etc
                                     7-25
                                    Amazon.com
SCM – EXAMPLE OF A SUPPLY NETWORK




                 7-26
SCM APPLICATION FUNCTIONS




             7-27
SCM APPLICATION FUNCTIONS 2ND HALF




                 7-28
    SUPPLY CHAIN MANAGEMENT BENEFITS

Supply Chain Management _____________ can help
organizations to gain competitive advantage and provide
substantial payback in several ways by:
  • Streamlining _____________ and increasing
    _____________ productivity (i.e. efficiently managing
    business travel, time, and expenses by collaborating with
    suppliers in real time)
  • Accelerating _____________ _____________ (i.e. enabled
    by the ability of organizations to swiftly react to market
    conditions)
 • Streamlining _____________ and creating _____________
   across the supply network (i.e., supporting contract
   negotiation and measuring effectiveness of those agreements)
                               7-29
 RECOMMENDATIONS FOR ENTERPRISE SYSTEM                                                 google
               SUCCESS
  _____________ _____________ _____________
  The highest level support is required to obtain resources and make and support difficult
  reengineering decisions


_____________ _____________ _____________ _____________
Implementation success is enabled by deep application experience and access to
supporting tools and methods


Thoroughly Train Users
Training in organization, business process, and application functions is critical to
success and must be reinforced


Take a _____________ Approach to Implementations
Enterprise systems span the entire organization and as such require input and
participation from all functions


                                         7-30

				
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posted:4/17/2013
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