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Information Systems in Organizations 3. 1

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1 Information Systems in Organizations 3. 1
Information Systems in Organizations Running the Business: Enterprise Systems (ERP)

2 Roadmap Week 1: Intro to MIS Week 2: Systems Analysis
What is MIS? Week 2: Systems Analysis Swimlanes Week 3: Systems Analysis ERDs Week 4: Systems Analysis Decision Trees Architecture Diagrams Max Labs 0 Week 5 Exam #1 Week 6: Organizational Systems ERP Learn IT! #1 Week 7: Organizational Systems Decision Support Knowledge Mgmt Week 8: Organizational Systems SDLC Digital Innovation Max Labs 1a & 1b Week 9 Exam #2 Week 10: Organizational Systems Supply Chain Management Systems Max Labs 2a & 2b Week 11: Organizational Systems Customer Relationship Management Systems Week 12: Organizational Systems Platforms Cloud Computing Max Labs 3a & 3b Week 13: Organizational Systems Artificial Intelligence Week 14 Exam #3 Prep Learn IT! #2

3 Learn IT! #1 Digital Identity Management
Due week 6 4 Parts Part 1: Digital Identity (Create a profile on eportfolio site) Part 2: Digital Portfolio Part 3: Analytics Part 4: Build a Professional Network DO NOT COMPLETE : Part 5

4 How to: Max Labs 1. Review the preflight checklist. (Trust us, it’s worth it.) 2. Read through and follow Max’s steps on your own Salesforce account. 3. Take screen shots where indicated Make sure your name is visible You will not receive credit if your name is not visible. 4. Paste screenshots into the numbered spot in the answer sheet. 5. Follow the directions provided by your instructor to hand your answer sheet in before the due date. 6. No late assignments accepted.  No exceptions.

5 Max Labs 1a & 1b Due week 8 – Each part will take about an hour
2 Screenshots Make a salesforce account – use TUmail! Make Max’s app! Max Labs 1b 4 Screenshots Use your app to find “loaded & likely” investors Track and monitor tasks

6 Creating Systems for a Business
3.1 Types of Systems in Organizations Enterprise Systems (ERP) Decision Support Knowledge management, R&D, and social business 3.2 Systems Management 3.3 Digital Business Innovation

7 Required Reading What is ERP? Wikipedia, ERP
Putting the Enterprise into ERP 9 Tips for Selecting and Implementing ERP Systems

8 What is ERP? Discuss: 1. What was this article about?
2. Why should you care? This is a short article that provides a basic explanation of what ERP is, where ERP systems came from and the high level benefits of investing in an ERP. ERP systems represent some of the largest, most expensive, most complicated, highest risk and greatest reward technology investments an organization can make. Business people need to understand them, the pros and the cons, and make good choices.

9 Wikipedia, ERP Discuss: 1. What was this article about?
2. Why should you care? While the previous article was a nice introduction to ERP, this article goes into a little more depth in all of the same basic areas. ERP systems represent some of the largest, most expensive, most complicated, highest risk and greatest reward technology investments an organization can make. Business people need to understand them, the pros and the cons, and make good choices.

10 Required Viewing 1/2

11 ? Business processes that span multiple functional areas Change Risks Single Database Costs Executive Support What is an ERP system? One copy of data Many modules Get students talking about ERP systems. Focus on business processes like O2C and P2P that span multiple functional areas. Integration Partner Benefits SAP, Oracle and Microsoft Single System

12 Value Proposition for All Businesses
Gives a global, real-time view of data that can enable companies to address concerns proactively and drive improvements Improves financial compliance with regulatory standards and reduces risk Automates core business operations such as lead-to-cash, order- to-fulfillment, and procure-to-pay processes  Enhances customer service by providing one source for billing and relationship tracking. 

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14 Remember Swim Lane Diagram? Who does what and when?
Remind students of the O2C process using the same swim lane diagram they saw a few weeks ago.

15 Show them the more detailed swim lane diagram and review it quickly.

16 Legacy Systems Sales Warehouse Accounting
Show them the legacy systems that support the O2C process. Highlight that they are separate systems that really do make each of the individual functional areas more efficient/effective but point out some of the problems with legacy systems. Problems with legacy systems: Standalone systems – Not designed to work with each other. Make each functional area more efficient/effective but not organization as a whole. Multiple copies of data can make decision making a challenge. You must build and support the system interfaces. System interfaces must run like clockwork of chaos ensues. Different computing platforms can be a challenge. Every system interface can be designed differently.

17 Does your customer view your organization as the “well oiled machine”?
What kind of non-value added work is created when inventory data or credit data is old? Talk about the chaos that occurs when we make decisions based on old data like mistakenly accepting an order when the customer has exceeded their credit limit or mistakenly rejecting an order when we think a customer is exceeding their credit limit but just paid their invoices. Talk about the chaos that occurs when you accept an order but you’re actually out of stock. What kind of image does your customer get when you can’t even take an order without some sort of chaos?

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

19 Exercise On the following slide, identify all of the system interfaces: What system needs to talk to what other system One line per data flow Have the students split up into small teams. On the following slide, have student identify all of the systems that need to talk to each other. Start drawing lines until it is a mess.

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21 This is an example of a system interface map for a global Fortune 500 company (Rohm and Haas) before they implemented SAP. Each dot is a system. Each line is an interface. Companies get like this over a few decades adding one system after another until they have this mess. 90+% of the IT organization’s budget was spent simply keeping these systems and these interfaces up and running. There wasn’t any money left over to do interesting and innovative things that could really help the business.

22 This is the system interface map after Rohm and Haas implemented SAP
This is the system interface map after Rohm and Haas implemented SAP. The collection of boxes in the middle is actually a single SAP system (each box is a separate module in this single system). There are still quite a few systems but far fewer and all of the interfaces work the exact same way making support MUCH easier and MUCH less expensive. In the end the organization spent far less money keeping systems and interfaces up and running and could invest much more money on projects that created value for the organization.

23 Required Viewing 2/2

24 ERP Challenges Adoption – People HATE change!
Configuration is extremely complex Vanilla (config change only) vs. Customization Implementation is extremely complex Costs Rohm and Haas spent $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

25 Putting the Enterprise into Enterprise Systems
Discuss: 1. What was this article about? 2. Why should you care? Enterprise systems are marvels of technology but they are not for everyone. There can be significant downsides for many organizations. The decision to invest in an enterprise system is a business decision, NOT a technology decision. Organizations need to understand all of the business implications before heading down this path.

26 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

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

28 SAP SCM SAP ERP SAP CRM SCM- SUPPLY CHAIN MANAGEMENT
ERP – ENTERPRISE RESOURCE PLANNING CRP – CUSTOMER

29 9 Tips for Selecting Implementing an ERP System
Discuss: 1. What was this article about? 2. Why should you care? While the early days of ERP implementations where fraught with peril, over the years industry has developed best practices for successful ERP implementation. This article lists and describes some of these best practices. If you are working at an organization that is considering investing in an ERP, learn from the past and don’t make costly mistakes that could destroy your business.

30 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

31 Roadmap Week 1: Intro to MIS Week 2: Systems Analysis
What is MIS? Week 2: Systems Analysis Swimlanes Week 3: Systems Analysis ERDs Week 4: Systems Analysis Decision Trees Architecture Diagrams Max Labs 0 Week 5 Exam #1 Week 6: Organizational Systems ERP Learn IT! #1 Week 7: Organizational Systems Decision Support Knowledge Mgmt Week 8: Organizational Systems SDLC Digital Innovation Max Labs 1a & 1b Week 9 Exam #2 Week 10: Organizational Systems Supply Chain Management Systems Max Labs 2a & 2b Week 11: Organizational Systems Customer Relationship Management Systems Week 12: Organizational Systems Platforms Cloud Computing Max Labs 3a & 3b Week 13: Organizational Systems Artificial Intelligence Week 14 Exam #3 Prep Learn IT! #2


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