“ENTERPRISE-WIDE INFORMATION SYSTEMS” BY SUMANA SHARMA

SALES DATA FOR THE YRS Product A B C D E F

HOW DOES THE SALES EXECUTIVE FURNISH THE REQUESTED INFORMATION? Feeds data into Microsoft Excel SOFTWARE sitting on HARDWARE Sales exec. Collects data Information (bar charts) S/W processes data Boss Sent using COMMUNICATION LINKS

ENTITIES THAT MAKE UP THE IS Information System PEOPLE COMMUNICATION LINKS SOFTWARE HARDWARE DATA

BEFORE ENTERPRISE SYSTEMS WERE BORN…  Different departments ran different applications on different computing platforms, using different hardware and different software.  Difficult to integrate information from different departments.  Different departments held different versions of the same data.

… AND THUS ENTERPRISE SYSTEMS WERE BORN  ES are Information systems that allow companies to integrate information across different departments on a company wide basis.  Provide an exhaustive central database common to all users (within different departments)

MAIN GOAL OF ES: SUPPORT BUSINESS ACTIVITIES Types of Business activities INTERNALLY FOCUSED EXTERNALLY FOCUSED

INFORMATION FLOW WITHIN THE COMPANY Order entryFulfillment Shipping Order Invoice Business activity Information Packing list OUT

INFORMATION FLOW ACROSS THE ORGANIZATION Shipping Receiving Invoice Inventory Supplier business activity Customer business activity Internal info From customers External info From suppliers

INTERNALLY FOCUSSED APPLICATIONS  VALUE CHAIN Flow of information through a set of business activities. At each node, some value is added.  PRIMARY ACTIVITIES  Inbound logistics  Operations & Manufacturing  Outbound logistics  Marketing and Sales  Customer service

VALUE CHAIN FRAMEWORK

SUPPORT ACTIVITIES Infrastructure Human resources Technology development Procurement

EXTERNALLY FOCUSSED APPLICATIONS INFORMATION FLOW Upstream #From an outside organization to us! Downstream #From us to an outside organization!

TYPES OF ENTERPRISE SYSTEMS Packaged Bought from third party vendor. Can be quite cost effective. Vendor is responsible for making changes, distributing new versions, etc Custom Developed by company personnel Is a costly venture Company is responsible for making changes and for maintenance

HOW ENTRPRISE SYSTEMS EVOLVED Legacy systems Customer relationship Management (CRM) Supply Chain Management (SCM) Enterprise Resource Planning system (ERP) Internally focused Externally focused

LEGACY SYSTEMS  Each department was like a water tight compartment.  Each had its own set of applications.  Applications were infrastructure specific.  Process of Information exchange was too complicated.  Inherent delay and data inconsistency prevailed all over the organization.

INFORMATION FLOW IN LEGACY SYSTEMS Inbound Logistics Operations Outbound Logistics Inventory Order Invoice Business activity Information

ENTERPRISE RESOURCE PLANNING Information stored on legacy systems is converted to a centralized data repository- data warehouse. You don’t need to call up the other department to fetch data. It can be directly accessed from the data warehouse. Eliminates data inconsistency issues. High overall efficiency!

INFORMATION STORAGE IN ERP SYSTEMS Inbound Logistics Operations Outbound Logistics Order Invoice Inventory Data Warehouse

TOP 4 ERP VENDORS VENDORPRODUCTMARKET SHARE SAPSAP R/336% Peoplesoft (**JD Edwards is now part of Peoplesoft) Peoplesoft  Enterprise  EnterpriseOne  World 15% OracleOracle E- Business suite 10% BAANSSA BAAN5%

FACTORS TO CONSIDER BEFORE SELECTING AN ERP PACKAGE CONTROL # Extent of information available at each level # Corporate level/Business unit level policies. BUSINESS REQUIREMENTS # Vanilla or custom? BEST PRACTICES # Industry standard business processes.

BUSINESS PROCESS REENGINEERING (BPR) Altering the way business processes have been conducted, according to industry’s Best Practices!

CUSTOMER RELATIONSHIP MANAGEMENT (CRM) CRM packages typically comprise of two applications; SFA (Sales Force Automation) Presales marketing and sales. CRM (Customer Relationship Management) Post sales support

CRM VENDORS IN THE ENTERPRISE SEGMENT *SAP *Oracle *SIEBEL *Peoplesoft *Onyx software ChallengersLeaders Visionaries Completeness of vision Ability To execute Niche players Source: Gartner research (Jan 2004)

SUPPLY CHAIN MANAGEMENT(SCM) Supply chain – consists of producers of supplies,that a company uses. Supply network. Supplier COMPANY Supplier’s supplier Supplier’s supplier Supplier’s supplier Supplier’s supplier

HOW DOES SCM HELP AN ORGANIZATION? Streamlines upstream information flow. Two main goals are: Accelerate product development Reduce costs related to procurement of raw materials,components or services from suppliers.

SCM VENDORS SCM software market is highly highly fragmented. Some leading SAP vendors include i2 technologies, Worldchain, Manugistics, Ariba etc. SAP, BAAN, and Oracle offer SCM solutions integrated with their ERP package

FORMULA FOR ENTERPRISE SYSTEM SUCCESS Secure executive sponsorship Get Help from outside experts. Thoroughly train users Take a multidisciplinary approach to implementation.

THANK YOU!!