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Chapter 7 Enterprise-Wide Information Systems

Chapter 7 Enterprise-Wide Information Systems

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Chapter 7 Enterprise-Wide Information Systems

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  1. Chapter 7Enterprise-WideInformation Systems Information Systems Today Leonard Jessup and Joseph Valacich

  2. Enterprise System Example • Hop to it – Haas Hops

  3. Enterprise Systems • Enterprise systems • Also known as enterprise-wide information systems

  4. Enterprise Systems • Supporting business activities • Increase competitive advantage by supporting and/or streamlining business activities • Can support either internally or externally focused business processes • Interorganizational systems (IoS) • Electronic transmission of information to another company

  5. Enterprise Systems – Within the Organization Example – Order Process and Information Flow

  6. Interorganizational Systems – Across Organizations Example – Order Process and Information Flow

  7. Enterprise Systems • Internally Focused Applications • Value chain – the set of business activities

  8. Enterprise Systems • Internally Focused Applications • Support activities –

  9. Enterprise Systems • Externally Focused Applications • Integrate internal applications with those outside: suppliers, partners, customers • Value system = linked value chains

  10. A Value System – Externally Focused • A connection of value chains across organizations • Allows the flow of information between organizations to support business activities

  11. Types of Enterprise Systems • Forms of: • Stand-alone applications

  12. Types of Enterprise Systems • Legacy Systems • Conversion

  13. Types of Enterprise Systems • Enterprise Resource Planning • Integrated applications • Information stored in large, centralized data repositories called Data Warehouses

  14. 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)

  15. Choosing an ERP System - Issues ERP Systems are:

  16. Choosing an ERP System – Selection Factors • Control • Business Requirements • Best Practices

  17. ERP and Business Process Reengineering • Business Process Reengineering • Hammer and Champy, (“Reenginerring the Corporation”)

  18. Business Process Reengineering Steps in Business Process Reengineering

  19. BPR Today – Observations and Research • Many large failures exist in large scale Business Process Reengineering implementations. To be successful and organizations must have:

  20. BPR Today – Observations and Research • Large bodies of research are available on the role of BRP and BPR implementations. Some of this research has come to the following conclusions: • Reengineering and related organizational issues are as important as the technical implementation issues (Kumar and Van Hellersberg, 2000; Markus and Tanis, 2000) • Managers in many cases must choose between making the ERP system fit the organization or the organization fit the ERP system (Soh, Sia, Tay-Yoh, 2000) • For an ERP system to help transform the organization and gain new competitive capabilities, a full organizational and operational change is required (Willcocks and Sykes, 2000) • In order to be successful, manager must first transform the organization and then implement the ERP system

  21. Enterprise Systems – Integrated (Interorganizational) • Integrated Packages

  22. Customer Relationship Management Objective • Applications that help organizations attract new business and attract and encourage repeat business Functions • There are two primary functions in CRM systems: Sources • There are two primary sources of CRM systems:

  23. Sales Support – Sales Force Automation (SFA) • Sales Force Automation • Example: Siebel SFA displays …

  24. Supply Chain Management Objective • Applications that accelerate product development and reduce cost associated with procuring raw materials, components, and services from its suppliers • Supply Chain – • Supply Network – Sources • There are two primary sources of SCM systems. These systems are built to tightly integrate with ERP systems

  25. SCM – Example of a Supply Network

  26. Supply Chain Management Benefits • Supply Chain Management applications can help organizations to gain competitive advantage and provide substantial payback in several ways by:

  27. SCM – Example of SAP SCM Offering SAP is the ERP market leader. They also offer SCM applications whose capabilities including the following:

  28. Recommendations for Enterprise System Success • Secure Executive Sponsorship • Get Help from Outside Experts • Thoroughly Train Users • Take a Multidisciplinary Approach to Implementations

  29. Chapter 7 QUIZ!!!

  30. Reminders! • No Class on Friday!  • FrontPage lab is due Friday by Midnight – email me an URL to your assignment • Next week we finish the book by covering Chapters 8 & 9 • Group Projects due 11/30…also, this is the start of presentations • Attendance at other presentations counts towards participation grade