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

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

ERP systems ► Are the core IT application of the business models ► Covers every aspects of Value Chain and organizational systems. ► Idea with ERP:  Support every aspect of storage, processing, retrieval and distribution of data.

What are ERP systems ► Are packages that are bought  Long-term dependence on vendors and consulting firms.  Embedded are normative business practices ► Requiring business process re-engineering ► The most complex and comprehensive IT in organizational use  Affect every aspect of the organization

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

How do ERP systems work ► Attemp to integrate all departments and functions across a company.  Before typiccally every department had their own IT (sub-optimization)  ERP is centralization ► Combine all IT in a single program  One database  Departments share data  Effeictive communication

ERP systems Information flow of an order CustomerSales Purcasing Manufacturing Supplier Shipping

Different reasons for adopting ERP systems ► Technical reasons  Old mainframe system or  Many separate applications ► Business reasons  Establish shared business processes  Shared information  Increase management control  Improve efficiency of operations  Reduce costs ► Standadirzed and rapid manufacturing processes ► Reduce inventory ► Integration of information on customers orders

Implementation of ERP systems ► ”Perhaps the worlds largest experiment in business change” ► ”The largest change project in cost and time that they have undertakens in their history” ► Every ERP have to be configured  Adapting generic functionality to a particuar organization ► Can take years

Failing implementation of ERP systems ► People have to adopt the methods embedded in the system ► People might not like to change  ERP force people to change ► A failure in the integration of the software can bring a company to halt. ► The hardest challange is to change the way people do their job

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

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

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 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 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 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 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 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 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 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 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 SAP integration program for enterprises

ERP systems ► Navision ► Introduktion. Med Microsoft Business Solutions-Navision kan du udnytte det fulde potentiale i virksomheden. Uanset i hvilken retning virksomheden skal udvikles, er løsningen nem at tilpasse og integrere i hele organisationen. ► Hvad får du med Microsoft Business Solutions-Navision? Navision er en videreudvikling af den globale succes Navision Financials og Attain. Løsningen er specielt udviklet til at effektivisere arbejdsgange i mellemstore virksomheder i forbindelse med økonomistyring, administration, kunde-/leverandørstyring og internetaktiviteter. Løsningen matcher dine krav, uanset hvilke særlige krav du har til forretningsgange, økonomistyring og administration. Du får også en række helt nye integrerede web-baserede værktøjer til kundestyring, leverandørstyring, ehandel, onlineadgang til systemet samt elektronisk dokumentudveksling. Navisions teknologi giver mulighed for online-back up, automatisk håndtering af rapportudskrivning, massebogføringsudskrifter, opdatering og vedligeholdelseskørsler af kundeemner i CRM og meget andet.