1 Chapter 8 Enterprise Information Systems

2 Enterprise Information Systems Executive information system –Computer system that allows executives access to management reports Drill-down capabilities User-friendly Executive support system –Comprehensive executive support system Includes communication, office automation, analysis support, business intelligence Enterprise information system –Corporate-wide system –Not restricted to executives only –Business intelligence

3 Executive Information System (EIS) An extremely user-friendly computer-based information system for top-level executives Provides continuous and rapid access to critical- to-success (critical success factors) information Provides drill-down investigation capabilities using multidimensional analysis and OLAP Provides exceptions reporting and status reporting capabilities

4 Examples of Critical Success Factors (CSFs) Strengthen customer relations Supporting the sales force in the field Improving productivity Securing R&D support from the government Developing new products Acquiring new technologies and capabilities How promptly the company responds to market (competitor’s) situation and the financial penalty for failing to do so

5 Comparing EIS to DSS EIS –Supports upper management in discovering problems and opportunities –Repetitive analysis –High speed –GUI based DSS –Analyzes specific problem or opportunity –Ad hoc analysis –Effective –May have GUI Integration of EIS & DSS -- Executive Support System –Uses EIS output to launch DSS Data from same places –Integrates user roles –Third party software

6 Executive Support System (ESS) A comprehensive support system that integrates executive information system (EIS) and decision support system (DSS) Uses EIS output to launch DSS application Provides drill-down multi dimensional investigation capabilities Provides capabilities to do trend analysis

7 Examples of OLAP/Multidimensional analysis packages used in EIS BrioQuery (Brio Technology Inc.) Business Objects (Business objects Inc.) Decision web (Comshare Inc.) DataFountain (Dimensional Insight Inc.) DSS Web (MicroStrategy Inc.) Focus Fusion (Information Builders Inc.) InfoBeacon Web (Platinum technology Inc.) Oracle Express Server (Oracle Corporation) Pilot Internet Publisher (Pilot Software Inc.)

8 Executive Support System (ESS) Contd. Assists top executives in conducting ad hoc analysis of current performance and projected operations to stimulate insights that may call for high-level decision-making Gives executives easy and rapid access to internal and external information relevant to their critical success factors (CSFs) – provides alerts, highlights exceptions Helps executives request and monitor CSFs via customized presentation attuned to an executive’s individual needs and tastes

9 Enterprise Information System Enterprise-wide system Provides organizational-level support in operating a firm and its problem-solving Part of enterprise resource planning (ERP) systems For providing business intelligence to effectively carryout customer relationship management (CRM) Leading up to enterprise information (corporate) portals and knowledge management systems

10 Organizational DSS (ODSS) One of the three types of DSS – individual, group, and organizational ODSS is used by individuals or groups, at several workstations in more than one organizational units, who make varied (interrelated but autonomous) decisions using a common set of tools ODSS focuses on an organizational task or activity involving a sequence of operations and actors where each individual’s activities must mesh closely with other people’s work ODSS provides computerized support for effective communication and coordination for collaborative problem solving

11 Supply Chain Refers to the flow of materials, information, and services from raw material suppliers through factories and warehouses to the end customers Also includes the organizations and processes that create and deliver these products, information, and services to the end customers It includes many activities such as purchasing, materials handling, production planning and control, logistics and warehousing, inventory control, and distribution and delivery

12 Supply Chain Management (SCM) To deliver an effective supply chain and do it effectively To plan, organize, and coordinate the supply chain’s activities SCM systems include (but not limited to): –Inventory management –Shipping management –Efficient purchasing –JIT –CRM –Collaboration along chain –Strategic partnerships –Reduce number of intermediaries –Outsourcing

13 The goals of modern SCM To reduce uncertainty and risks in the supply chain To positively affect: –Inventory levels –Cycle time –Processes, and –Customer service Hence, to increase profitability and competitive advantage

14 Enterprise Resource Planning (ERP) An ERP is a computer-based system that integrates all of an organization’s departments and functions An ERP controls all major business processes with a single software architecture in real-time The integrated solution promises benefits from increased efficiency to improved quality, productivity, and profitability

15 ERP software Vendors SAP Baan PeopleSoft Oracle J.D. Edwards Computer Associates

16 ERP Very expensive 2 nd generation – doing better, Web-enabled Susceptible to failure if an organization’s business processes do not fit the ERP system’s model

17 Customer Relationship Management (CRM) Systems Enterprise approach Communication based Focused on: –Customer acquisition –Customer retention –Customer loyalty –Customer profitability Empowers employees Enables one-to-one marketing Allows for proper allocation of resources to each customer class

18 CRM Relationship technologies –Data warehouses –Foundation for CRM –Business intelligence/business analytics Data mining Predictive analytics determine relationships OLAP Integrated with: –GIS = geographical preferences –Revenue management optimization software = optimized pricing –Data mining workbench = targets promotions

19 Product Lifecycle Management (PLM) Integrated, information driven Includes all aspects of product’s life Goals –Streamline development –Increase innovation Requires integration of independent databases Shares information about product among different groups, both inside and outside organization

20 Business Process Management (BPM) Systems Integrates data, applications, and people through business process Streamlined Automates processes Less administration Graphical map of processes Enterprise information portal into business processes –Integrates systems –Provides view of organization’s health and progress –Unifies rules, processes, methods, and workflows Benefits –Links legacy systems to newer workflows Issues –Forces review of processes

21 Future EIS Developments Hardware and software advances Virtual reality Three-dimensional image displays Increased utilization of multimedia Increased collaboration Improved communication Automated support Intelligent agents