Information Systems in Organizations Running the Business: Enterprise Systems (ERP)

Review Learn IT! Assignment #2 – Due 9/28 – Fast-Food Drive-Through Learn IT! Assignment #3 – Due 10/23 – ERP Systems Learn IT Assignment #4 – Cyber Analytics ( – Starts 10/1 and due 10/30

Learn IT! Assignment #2 Create a swim lane diagram that documents the process of taking and filling an order at a fast-food drive-through. Questions and Steps

Who? Customer Clerk Point-of-sale Terminal Kitchen

What? Placing an order Paying for the order Receiving the food

When? Receiving the food - Placing an order - Paying for the order – Preparing the food

Example

Course Topics Overview Unit 1: Introduction Unit 2: Systems Analysis Unit 3: Organizational Systems Unit 4: Consumer Systems 8

Unit 3: Organizational Systems How do large firms function today? 3.1. Types of systems in organizations Running the business: enterprise systems (ERP) Managing the business: decision-making (analytics, BI, dashboards) Growing the business: knowledge management, R&D, and social business 9

Unit 3: Organizational Systems 3.2. Systems management Business analysis, requirements, and systems acquisition Developing systems: programming, testing, and deployment Systems integration: standards, interoperability, and external collaboration Managing risk: security, hackers, and privacy 10

Unit 3: Organizational Systems 3.3. Digital business innovation Generating IT value Competitive advantage of digital business models 11

? What is an ERP system? Business processes that span multiple functional areas Single System Single Database Many modules One copy of data Costs Benefits Risks Integration Partner Executive Support Change SAP, Oracle and Microsoft

Remember Swim Lane Diagram? Who does what and when?

Legacy Systems Information Flow Diagram SalesWarehouse Accounting

What kind of non-value added work is created when inventory data or credit data is old? Does your customer view your organization as the “well oiled machine”?

Enterprise System Sales + Warehouse + Accounting How many copies of data do I have? How much better is my decision making with a single copy of all data? How much non-value added work do I eliminate when inventory and credit data are current? How much happier are your customers when they are dealing with the “well oiled machine”?

Exercise Break up into teams of 3-4 On the following slide, identify all of the system interfaces: – What system needs to talk to what other system – One line per data flow

ERP Challenges Adoption – People HATE change! Configuration is extremely complex – Vanilla (config change only) vs. Customization Implementation is extremely complex Costs – Rohm and Haas spend $300 million over a period of three years – What else could they have done with $300 million? Risks – Mega-failures with ERP implementations in the mid-90s – Many companies went out of business as a result Internally focused – Need supply chain and customer relationship management too

ERP Benefits A single database providing superior, real- time, data-driven decision making Standardizing business processes based on industry best practices – Force business process reengineering Reduced operating costs – Rohm and Haas saved $200 million/year

Leaders in the ERP Space SAP Oracle Microsoft Dynamics New cloud based ERP providers?

SAP ERPSAP CRMSAP SCM

Making it Happen Executive Sponsor Driven by the business, not by IT Requires experts from all of the functional areas Top-tier Integration Partner Training, training, training Testing, testing, testing Don’t cut corners! – It could cost you a fortune – It could cost you your business

Unit 3: Organizational Systems How do large firms function today? 3.1. Types of systems in organizations Running the business: enterprise systems (ERP) Managing the business: decision-making (analytics, BI, dashboards) Growing the business: knowledge management, R&D, and social business 27

Unit 3: Organizational Systems 3.2. Systems management Business analysis, requirements, and systems acquisition Developing systems: programming, testing, and deployment Systems integration: standards, interoperability, and external collaboration Managing risk: security, hackers, and privacy 28

Unit 3: Organizational Systems 3.3. Digital business innovation Generating IT value Competitive advantage of digital business models 29

Review Grades Learn IT! Assignment #3 – Due 10/23 – ERP Systems Learn IT Assignment #4 – Cyber Analytics ( – Starts 10/1 and due 10/30

ibit.temple.edu/analyticschallenge 2015

University-wide/National student competition Work in teams or individually Real-world problems for Merck / QVC / PA BAllet Use any tool. Workshops throughout October Opens October 1, entries due October 30th $10,000 in prizes for winning entries / First Prize $2,500

Will an Ebola vaccine change world heath? Who is the best audience for cultural institutions? Can TV and digital jointly increase sales? The Challenges

A good graphic tells a story

Good graphics help compare large amounts of data easily

They look at data from multiple angles…

It’s also about choosing the right data…

Good graphics provide meaningful insight The electoral result of the 2012 election Under pre-1920 rules: men only Under 1850 rules: white men only

Infographics: They can be simple

Or they can be more complex, combining several types of data

Infographics tell a story using data and images

For more information, visit ibit.temple.edu/analyticschallenge

Worksheet Activity Worksheet “Business Processes: Procure to Pay”

Review Grades Learn IT! Assignment #3 – SAP Login Information on Gradebook – Due 10/23 Learn IT Assignment #4 – Cyber Analytics ( – Starts 10/1 and due 10/30

Worksheet Activity Worksheet “Business Process : Procure to Pay with ERP”

Worksheet Activity Worksheet “Organizational Systems : Filling in the Income Statement”