IT & Business Models Value chain and organizational systems Chp. 10

The Business Model (p. 113) Market/industry Customers, competition Offering Environment Physical and service component, price/cost External Activities and organization The Company The company and its value chain! Internal ResourcesEnvironment Human, physical, organizationalExternal Suppliers Factor market, production input

Value chain and organizational systems (VOC) VOC systems Accounting systems Human resource management systems Distribution systems Work flow systems

Enterprise resource planning systems (ERP) Logistics Production Distribution Sales Materials management Accounting Financial Controlling Investment management Human resources Development Administration Payroll Workforce planning Time management ERP System

Departments and ERP-systems ERP System marketing customer service production procurement inventory accounting Human ressources sales

The journey of paper based order sales poersonel Sales managermanufactoring shipmentaccounting Doc. Writes order Checks order Manufactures order Deliver order Invoice/ payment

ERP systems Information flow of an order CustomerSales Purcasing Manufacturing Supplier Shipping Places an order Pays money Reports a demand Orders Pays money Delivers material Checks order Places an order Plans, Manufactures Delivers item Delivers item

ERP systems SAP R3 Navision (Damgaard Data now MicroSoft)

ERP systems SAP is a world leader in business solutions, offering comprehensive software and services that can address your unique needs. mySAP ERP -- This solution provides end-to-end functionality for business analytics, financials, human capital management, operations, and corporate services -- and allows you to upgrade to the full range of SAP solutions. mySAP ERP mySAP Business Suite -- This family of adaptive business solutions optimizes your most critical business processes. Built on the SAP NetWeaver platform, mySAP Business Suite solutions include mySAP Customer Relationship Management, mySAP Product Lifecycle Management, mySAP Supply Chain Management, and mySAP Supplier Relationship Management. mySAP Business SuitemySAP Customer Relationship ManagementmySAP Product Lifecycle ManagementmySAP Supply Chain ManagementmySAP Supplier Relationship Management SAP xApps -- SAP offers packaged composite applications that run on top of existing, heterogeneous systems -- integrating them into cross- functional, end-to-end business systems that let you execute enterprise-wide strategies with greater ease and efficiency. SAP xApps SAP Manufacturing -- This solution empowers both discrete and process manufacturers with role-based software that leverages real-time data -- enabling you to respond quickly to changes in demand, coordinate your value chain, comply with health and safety standards, and improve productivity. SAP Manufacturing SAP NetWeaver -- This integration and application platform is the technical foundation for mySAP Business Suite and SAP xApps. SAP NetWeaver delivers a complete, open, and flexible infrastructure that allows you to integrate SAP and non-SAP applications easily. SAP NetWeaver Solutions for small and midsize businesses -- These affordable, prepackaged, and easy-to-implement solutions are designed to deliver SAP functionality and industry best practices to small and midsize companies. Solutions for small and midsize businesses SAP solutions for mobile business -- With these solutions, you can leverage your existing IT investment by extending key business processes to your mobile workforce through a variety of mobile devices, including palmtop computers, personal digital assistants (PDAs), and laptops. SAP solutions for mobile business Analytic applications -- With analytic applications by SAP, you can make effective use of the business-intelligence functionality embedded in the software that supports your business processes. These applications enable the insights that can increase the value gained from your enterprise software. Analytic applications SAP integration program for enterprises -- This program supports the seamless integration of SAP Business One and mySAP All-in-One solutions into the larger system landscape -- enabling your enterprise to take advantage of these cost-effective solutions to support subsidiaries, corporate subdivisions, and business partners. SAP integration program for enterprises

CMM Capability Maturity Model and ERP Warning: Don’t introduce ERP below level 3 5. Optimising 4. Managed 3. Defined 2. Repeatable 1. Initial © Systematic Software Engineering A/S

Effects on business (+) Business process improvement Integration among business units Realtime access to data and information Standardization of company processes Increased flexibility Increased productivity Increased customer satisfaction Optimazation of the supply chain Reduction of rework Business growth Improvement of order-to-cash time Competitive position ability Implementation of shared services Improved time to marked cycles Improved product quality

Effects on business (÷) Very high implementation costs (US$ to US$300 milion) Personnel turnover Organisation development is needed Side effects ERP consulting services relates to US$8 billion year 2002