Chapter 12 Enterprise Information Systems Information Systems for Business: An Experiential Approach Second Edition France Bélanger, Craig Van Slyke, Robert E. Crossler Bélanger, Van Slyke, Crossler © Prospect Press 2016

Practice: Focusing Story What are the key success factors for the supply chain implementation at Wal-Mart? What would be those factors for other companies trying to imitate Wal-Mart’s supply chain efforts? What is your assessment of Wal-Mart’s move into RFID technology as a leader? Could there be an issue being at the leading edge of technology? How can technology be used to help Wal-Mart in its green supply chain effort? Bélanger, Van Slyke, Crossler © Prospect Press 2016

Practice: Learning Activity 12.1 (p. 257) Research an Enterprise Resource Planning (ERP) system offered by one of the larger companies such as SAP, Oracle PeopleSoft, or Microsoft Dynamics. Identifies the company that sells the ERP system. Provide a brief background on the company. Identify the components of the ERP system. Provide a brief description of each component. Bélanger, Van Slyke, Crossler © Prospect Press 2016

Enterprise Systems Hierarchal Prospective Functional Perspective Meet the needs of a level within the organization Functional Perspective Meet the needs of a functional area Process Prospective Support the process at hand Bélanger, Van Slyke, Crossler © Prospect Press 2016

Hierarchical Perspective Activity Time horizon Hierarchical level Characteristics Strategic Long term General management Functional management Externally focused Highly unstructured Tactical Mid term Middle management Semi-structured Recurrent Operational Short term Operation management Front line employees Highly structured Transaction focused TABLE 12.1 Types of Information Required by Hierarchical Level Bélanger, Van Slyke, Crossler © Prospect Press 2016

Hierarchical Information Systems Figure 12.1-Hierarchical Information Systems Bélanger, Van Slyke, Crossler © Prospect Press 2016

Functional Perspective H/R Marketing Finance Logistics Accounting Departments or Functions Business processes are linked. The R/3 System integrates all activities related to a process in workflows, replacing conventional work structures with a cross-functional approach. To describe the business process, capabilities of the software, and application relationship among the different processes, SAP provides the R/3 reference model.This model is the key to R/3 projects, allowing customers and consultants to select what business solutions and system components are needed to best meet their practices, requirements, and organization. It is a graphical tool which documents the business processes included in the R/3 system, giving a clear picture of the integration among them. Together with the customizing tools, the R/3 reference model constitutes one essential element to implement SAP R/3 projects. Information systems AIS HRIS Sales IS FIS Shipping IS Bélanger, Van Slyke, Crossler © Prospect Press 2016

Materials Acquisition Process Process Perspective H/R Marketing Finance Logistics Accounting Materials Acquisition Process Departments or Functions Business processes are linked. The R/3 System integrates all activities related to a process in workflows, replacing conventional work structures with a cross-functional approach. To describe the business process, capabilities of the software, and application relationship among the different processes, SAP provides the R/3 reference model.This model is the key to R/3 projects, allowing customers and consultants to select what business solutions and system components are needed to best meet their practices, requirements, and organization. It is a graphical tool which documents the business processes included in the R/3 system, giving a clear picture of the integration among them. Together with the customizing tools, the R/3 reference model constitutes one essential element to implement SAP R/3 projects. Information systems AIS HRIS Sales IS FIS Shipping IS Bélanger, Van Slyke, Crossler © Prospect Press 2016

Enterprise Resource Planning (ERP) Set of IS tools used to enable information flow within and between processes. Before ERP systems, different applications for different functions Data integration Module based Centralized database Customizable Figure 12.2-ERP Shared Database Bélanger, Van Slyke, Crossler © Prospect Press 2016

Practice: Learning Activity 12.2 (p. 264) The Beer Game (MIT) http://beergame.pipechain.com Select a new game and one of the four position to play the game. Play the game then answer the following: How does information impact your supply chain decisions? How could information systems help with the information needs of managing a supply chain? Bélanger, Van Slyke, Crossler © Prospect Press 2016

Supply Chain Management (SCM) Supply chain: flow of goods, information, or money upstream and downstream between suppliers and customers Upstream Downstream Figure 12.3- Traditional Supply Chain Bélanger, Van Slyke, Crossler © Prospect Press 2016

Practice: Learning Activity 12.3 (p. 267) Read various articles on the following website: http://www.cio.com/category/customer-relationship-management What are the purposes of a CRM? What are the various types of tasks that can be accomplished with a CRM? How were these tasks done (or are done) before the advent of CRM? Who benefits from a CRM system? What are the benefits for each stakeholder? What types of companies should have a CRM? Why? Bélanger, Van Slyke, Crossler © Prospect Press 2016

Customer Relationship Management Organization-wide strategy for managing an organization’s multiple interactions with customers. Goals Manage multiple channels of interaction with customer Provide unified view of each customer across enterprise Analyze information about customers Bélanger, Van Slyke, Crossler © Prospect Press 2016

Customer Service Lifecycle Figure 12.4- Customer Service Life Cycle Bélanger, Van Slyke, Crossler © Prospect Press 2016

CRM Infrastructure FIGURE 12.5 Sample CRM Architecture Bélanger, Van Slyke, Crossler © Prospect Press 2016

Practice: Learning Activity 12.4 (p. 272) Returning an item to Amazon.com How difficult was it to find the information needed? How difficult do you think it would be to actually complete return? How likely are you to use this self-servicing application (Return Center) instead of calling someone at Amazon? Why? What are the benefits to customers of self-servicing CRM applications? What are the benefits to companies of self-servicing CRM applications? Bélanger, Van Slyke, Crossler © Prospect Press 2016

Customer Managed Interactions Customer data is stored and managed by the customer CMI solves limitations of CRM initiatives: Future events are more likely known Inferences are more precise Bélanger, Van Slyke, Crossler © Prospect Press 2016

Reflection How does cloud computing relate to ERP and CRM applications? Explain how data integration is essential to the success of ERP, SCM, and CRM systems. Which issues are similar for both the process and the hierarchical perspectives of developing enterprise systems? Why? How can process modeling (Chapter 11) enable firms to successfully implement enterprise systems? Can a very small business implement a CRM system? What would be the advantages and disadvantages of doing so? Bélanger, Van Slyke, Crossler © Prospect Press 2016

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