1. Information Systems Infrastructure (IS3314) 3 rd year BIS 2006 / 2007 Fergal Carton Business Information Systems

2. 2 weeks ago Integration definition: benefits of sharing, while retaining own identity Integration examples –Dell –Sun MicroSystems –Bank branch Integration downsides ERP project resources –Business process –Project –Technical (data and IT) Topps Case study (handout)

3. This week Integration examples –Dell –Sun MicroSystems ERP Project issues Topps Case study

4. Integration example: Dell Suppliers using 18 different s/w packages Missing integration: –Seamless processing –Reduces costs –Speeds up customer responsiveness Develop system to interface to 18 others? For 40 biggest customers “one click shopping” –Customers continue to order on-line –Dell simultaneously enters the order into the customers procurement system

5. Dell update 2007 Michael Dell back as CEO Biggest challenge is “bureaucracy”

6. Integration example: Sun Microelectronics “Fabless” manufacturer Uses contract manufacturers Chip demand forecasts based on sales and internal demand Forecasts loaded into web based SCM s/w Contract manufacturers check demand against inventory and capacity Enter component and materials needs into system 2 nd tier suppliers (memory and CPU) commit to deliver by certain dates Sun sees a picture of upcoming product flow

7. ERP projects: resources required Users / power users User management Steering Committee Functional analysts Application expert DBA’s / Sys Admin Project team Process leads Project Managers Technical Project Business process

8. ERP projects: resources required Software vendor Hardware vendor Users / power users User management Steering Committee Functional analysts Application expert DBA’s / Sys Admin Project team Process leads Project Managers Systems Integrator Technical Project Business process

9. Project issues Availability of team members / users Decision making processes Developing workarounds Timeline too tight to allow resolution of issues Massive learning curve for team Expectation management Retaining ownership of process related decisions

10. Resources : Financial Controller Having seconded the AP manager to the project for 18 months … –Just after go-live, lost the AP manager –Basic functionality missing Statutory reports for countries Unmatched receiver report arguments over Break-Fix vs. Enhancement –Lost understanding of why things were done in a certain way Knowledge of application Knowledge of business processes in the US –Worse: lost ability to get things fixed! Prioritisation of SIRs (System Investigation Requests) Reports written by end-users (eg. AP Manager) Local IS or global IS now working to gobal requirements Can’t customise the application

11. Resources : Technical (data) Data clean-up team Data conversion team Data conversion programmer Legacy data team Data quality testing and maintenance …

12. Data issues … Getting and maintaining clean data –When creating a new customer, who has control? –42 occurrences of Siemens in your customer database, what do you do? –Customers exist in ERP core database, but also in several legacy systems. How do you make sure they are in synch? –…

13. Resources : Technical (IT ops) Database administrator Systems administrator Operators : core apps Server operators Storage technicians HelpDesk …

14. Database issues … Guaranteeing “high availability” How often should Test be refreshed? How many environments should I have –Test –Production –Development –Training –Business Simulation –… If I implement a change to Production, do I need to implement the same change across all environments? 20 programmers developing / testing new code every day: how do I track releases to production? …

15. Systems admin issues … Ensuring system access for users New users Changes to existing profiles System downtime for maintenance Forcing users out of system Tracking source of corrupt data to user profile …

16. HelpDesk issues … Calls arriving at HelpDesk are either : Forgotten password New user Changes to user profile Printing problems Connectivity problems Response time problems System crashes System error messages PC problems I need more training …

17. HelpDesk issues … …or : Functionality questions (how do I transact an invoice?) Process questions (when should I post to GL?) Reporting (I need a revenue report)

18. Project handover to HelpDesk Prior to go-live, implement procedures for : –Logging calls such that it will be routed to the right person and tracked, reported on and escalated –Training for HelpDesk to be able to ask the right questions concering an application issue –Troubleshooting application issues to be able to deal with simple “fixes” –Ongoing consultation with application team regarding new functionality being rolled out, common errors, planned outages, …

19. Topps questions Describe the limitations of current processes (un- integrated) What were the potential failure points for the business? What are the potential benefits of ERP (integration) for Topps? Why did the decision to implement ERP take so long?

20. Case study notes Entertainment products 3 warehouses –Cork (stocks manufactured in Cork) –Liverpool (stocks for UK market) –Rotterdam (stocks of imported products) Only 20% of goods manufactured locally Product lifecycle short : rotation critical Rapid growth of business Increase in trading -> increase paperwork

21. Topps : systems “as-is” Spreadsheet based (eg. mini P&L accounts) Payroll / invoicing / inventory : obsolete systems No local IS support Issues with Spreadsheets? Risks?

22. Systems issues Lack of on-line stock control Paperwork delays on shipping Lack of control of debtors balances / invoices due Lack of detail on reporting profitability Too much information in people’s heads Too much time gathering information, not analysis Shipping Credit Control Treasury

23. Potential business failures Sales order processing Invoicing “Execution”

24. Benefits for Topps Results in 1 week Drill-down capability Live data on inventory & shipment

25. Why did it take so long Match with IT strategy? Support issues Project champion No analysis of processes