Chapter 7 Enterprise-Wide Information Systems Information Systems Today Leonard Jessup and Joseph Valacich

Enterprise System Example Hop to it – Haas Hops

Enterprise Systems Enterprise systems Also known as enterprise-wide information systems

Enterprise Systems Supporting business activities Increase competitive advantage by supporting and/or streamlining business activities Can support either internally or externally focused business processes Interorganizational systems (IoS) Electronic transmission of information to another company

Enterprise Systems – Within the Organization Example – Order Process and Information Flow

Interorganizational Systems – Across Organizations Example – Order Process and Information Flow

Enterprise Systems Internally Focused Applications Value chain – the set of business activities

Enterprise Systems Internally Focused Applications Support activities –

Enterprise Systems Externally Focused Applications Integrate internal applications with those outside: suppliers, partners, customers Value system = linked value chains

A Value System – Externally Focused A connection of value chains across organizations Allows the flow of information between organizations to support business activities

Types of Enterprise Systems Forms of: Stand-alone applications

Types of Enterprise Systems Legacy Systems Conversion

Types of Enterprise Systems Enterprise Resource Planning Integrated applications Information stored in large, centralized data repositories called Data Warehouses

Enterprise Systems – Integrated System Example Integrated Systems – Information is stored in a single data repository and can be accessed and updated by all functional systems (e.g. Operations)

Choosing an ERP System - Issues ERP Systems are:

Choosing an ERP System – Selection Factors Control Business Requirements Best Practices

ERP and Business Process Reengineering Hammer and Champy, (“Reenginerring the Corporation”)

Business Process Reengineering Steps in Business Process Reengineering

BPR Today – Observations and Research Many large failures exist in large scale Business Process Reengineering implementations. To be successful and organizations must have:

BPR Today – Observations and Research Large bodies of research are available on the role of BRP and BPR implementations. Some of this research has come to the following conclusions: Reengineering and related organizational issues are as important as the technical implementation issues (Kumar and Van Hellersberg, 2000; Markus and Tanis, 2000) Managers in many cases must choose between making the ERP system fit the organization or the organization fit the ERP system (Soh, Sia, Tay-Yoh, 2000) For an ERP system to help transform the organization and gain new competitive capabilities, a full organizational and operational change is required (Willcocks and Sykes, 2000) In order to be successful, manager must first transform the organization and then implement the ERP system

Enterprise Systems – Integrated (Interorganizational) Integrated Packages

Customer Relationship Management Objective Applications that help organizations attract new business and attract and encourage repeat business Functions There are two primary functions in CRM systems: Sources There are two primary sources of CRM systems:

Sales Support – Sales Force Automation (SFA) Example: Siebel SFA displays …

Supply Chain Management Objective Applications that accelerate product development and reduce cost associated with procuring raw materials, components, and services from its suppliers Supply Chain – Supply Network – Sources There are two primary sources of SCM systems. These systems are built to tightly integrate with ERP systems

SCM – Example of a Supply Network

Supply Chain Management Benefits Supply Chain Management applications can help organizations to gain competitive advantage and provide substantial payback in several ways by:

SCM – Example of SAP SCM Offering SAP is the ERP market leader. They also offer SCM applications whose capabilities including the following:

Recommendations for Enterprise System Success Secure Executive Sponsorship Get Help from Outside Experts Thoroughly Train Users Take a Multidisciplinary Approach to Implementations

Chapter 7 QUIZ!!!

Reminders! No Class on Friday!  FrontPage lab is due Friday by Midnight – email me an URL to your assignment Next week we finish the book by covering Chapters 8 & 9 Group Projects due 11/30…also, this is the start of presentations Attendance at other presentations counts towards participation grade