Chapter 7 Enterprise Systems

What Are Common Departmental Applications? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

When Are Information Silos a Problem? Data isolated in separated information systems Created over time as personal and workgroup support applications implemented Silos duplicate data and become serious problems as organizations grow Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

What Problems Do Information Silos Cause? Some of Departments Involved in Patient Discharge Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Problems of Silos Created in Isolation Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

An Enterprise System for Patient Discharge Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

How Do CRM and ERP Support Enterprise Systems? Help organizations fundamentally rethink how they do work to dramatically improve customer service, cut operational costs, and become world-class competitors Complex, in-house developed applications became too costly to build and maintain Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

How Do CRM and ERP Support Enterprise Systems? (cont’d) Inherent processes Pre-designed procedures for using software products Saves organizations from expensive and time-consuming business process reengineering Based on industry best practices Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Customer Relationship Management (CRM) A suite of applications, a database, and a set of inherent processes for managing all interactions with a customer, from lead generation to customer service Customer-centric ability Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Four Phases of Customer Life Cycle Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Major Components of a CRM Application Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Vendors Source – crmswitch.com

Enterprise Resource Planning (ERP) Suite of applications, database, and set of inherent processes for consolidating business operations into single, consistent, computing platform Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Pre-ERP Information System: Bicycle Manufacturer Does not include accounting Five non-integrated databases Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

ERP Information System All activity processed by ERP application programs and consolidated data stored in centralized ERP database Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

How Are ERP Systems Implemented? Major tasks in implementation of an ERP application Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

ERP Market Share - Gartner Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

What Are the Challenges When Implementing New Enterprise Systems? Collaborative Management Requirements Gaps Transition Problems Employee Resistance Challenges Difficulty Expense Risk Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Collaborative Management Challenges No single manager in charge Committees and steering groups Collaborative Management Licensed products are never perfect fit Features and functions of complex products makes identifying gaps difficult Deciding what to do with gaps. Adapt to application or change application? Requirements Gaps Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Challenges (cont’d) Transition problems Employee resistance Careful planning and substantial training critical Transition problems Change requires effort and creates fear Senior level management must communicate need for change to organization, and must re-iterate Train key users ahead of time to create positive buzz about new system Video demonstrations of employees successfully using new system Encourage change with extra inducements Employee resistance Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

ASSIGNMENT #4 Using the example of your organization, describe three workgroup information systems that are likely to duplicate data. Explain how the three workgroup information systems create information silos. Describe the kinds of problems that those silos are likely to cause using Figure 7-6 in slide #5 as a guide. Describe an enterprise information system that will eliminate the silos. Illustrate the new process like the one in Figure 7-8 in slide #6. Discuss the challenges you might face in implementing the new enterprise information system. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall