1. Foundations of information systems6b
Foundations of information systems
Topic
Chapter 6
Enterprise Applications
BIS 1202

2. Role of IS in the Enterprise
Business processes and operations
Support of:
Managerial decision making
Strategies for competitive advantage

3. Enterprise Applications
Enterprise Applications are systems that span functional areas, focus on executing business processes across the business firm, and include all levels of management.
Enterprise applications help businesses become more flexible and productive by coordinating their business processes more closely.

4. Enterprise Applications
There are four major enterprise applications:
Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systems
Each of these enterprise applications integrates a related set of functions and business processes to enhance the performance of the organization as a whole.

5. Enterprise Systems
Functional main-framed legacy systems Integrated cross-functional client/server systems Enterprise Resource Planning (ERP) Supply Chain Management (SCM) Customer Relationship Management (CRM)
O’Brien page 163
Many companies first moved from functional main-frame based legacy systems to integrated cross-functional client-server applications. This typically involved installing ERP, SCM, or CRM software from SAP, PEOPLESOFT, ORACLE, AND OTHERS. Instead of focusing on the information requirements of business functions, these enterprise software focuses on supporting integrated clusters of business processes involved in the operation of a business.

6. Partner Relationship Management Selling. Distribution
SUPPLIERS
Partner Relationship Management Selling. Distribution
Knowledge Management collaboration. Decision support
Supply Chain Management Sourcing. Procurement
EMPLOYEES
Enterprise Resource Planning Internal business processes
PARTNERS
The figure represents an enterprise application architecture, which illustrates the interrelationships of the major cross-functional applications that many companies install today. This architecture does not provide a detailed or exhaustive application blueprint, but provides a conceptual framework to help you visualise the basic components, processes and interfaces of these major e-business applications and their interrelationship to each other. This application architecture also emphasises the roles these systems play in supporting the customers, suppliers, partners, and employees of a business. (O’Brien, page ).
As you can see instead of just concentrating on supporting traditional business functions, enterprise applications are focused on accomplishing fundamental business processes together with suppliers, partners, customers and employee stakeholders. Thus, ERP concentrates on the efficiency of a firm’s internal production, distribution, and financial processes. CRM focuses on acquiring and retaining profitable customers via marketing, sales, and service processes. PRM aims to acquire and retain partners who can enhance the selling and distribution of the company’s products and services. SCM focuses on developing the most efficcient and effective sourcing and procurement processes with suppliers for the products and services needed by the business. KM applications focus on providing the employees with tools that support group collaboration and decision making
Customer Relationship Management Marketing. Sales. Services
CUSTOMERS
O’brien p 164

7. Enterprise Resource Planning (ERP)
What is an ERP /Enterprise systems ?
An IS that supports several areas of business, e.g. order handling, manufacturing, shipping, financing
Combines a number of applications with a single database
“An integrated set of programs that provides support for core organisational activities such as:
manufacturing and logistics,
finance and accounting,
sales and marketing, and
human resources.”
(Aladwani, 2001)

8. ERP Application in Comparison to separate functional applications
Enterprise Resource Planning (ERP)
ERP Application in Comparison to separate functional applications
Enterprise Resource Planning System
New
Marketing
Finance
Manufacture
Distribution
HRM
Old
Informix
Coda
MRP II
Oracle
Peoplesoft
Bocij, p678

9. Enterprise Resource Planning (ERP)
Function
Acts as the backbone for the whole business
help an organisation to:
assess the data it holds
how that data can be better managed
how to create better corporate intelligence
what further data is needed
Aims to automate basic business processes - covers all routine transactions within a company including the internal suppliers and customers
Aims to increase efficiency in handling transactions, improve decision making, and (further) transform ways of doing business into e-commerce.

10. Enterprise Resource Planning (ERP)
Challenges
Demands an unprecedented degree of teamwork, process expertise, and business knowledge
Getting their existing production data into the new system,

11. Problems Enterprise Resource Planning (ERP) Cost, time, and effort
Lack of alignment between technology and business needs
Difficulties implementing and upgrading enterprise software
Inability to support all business needs with enterprise software

12. Implementation Issues
Enterprise Resource Planning (ERP)
Implementation Issues
Building a supportive IT infrastructure
Skill shortage
Necessity to treat as a business project rather than an IT project
Extensive training
The need to update -

13. Enterprise Resource Planning (ERP)
Benefits
Reduced cost of buying from a single supplier
Better transfer of information within the organisation since all modules of the system are compatible
Support and maintenance through a single supplier
Use of ‘best-of-breed’ solutions applied by other companies

14. Enterprise Resource Planning (ERP)
Providers
SAP AG - R/3 softwar
PeopleSoft Inc.
Baan Co. NV
Oracle Corp
J.D. Edwards & Co - Denver
(See ERP site at on-line Consultant Software at: Wikipedia gives a list User rankings of ERP systems, Data Research DPU for Evaluation of Information Technology at:
the early providers are:SAP AG - R/3 softwar, PeopleSoft Inc., Baan Co. NV, Oracle Corp, J.D. Edwards & Co – Denver, Computer Associates. Some of these don’t exisit any more, some have been taken over
Look at Data Research DPU for Evaluation of Information Technology at where users have ranked ERP systems. You can see the ranking for large, medium-sized and small organisations. Go to the bottom of the page and see the current status of the market. The only problem is that the information seems to have not been updated since There is an ongoing vote on ‘What is most important when selecting an ERP system?’ and according to the current results the first is functionality followed by ease of use.

15. Supply Chain Management (SCM)
What is a supply chain?
“Describes the flow of material, information, money, services, from raw material suppliers through factories and ware houses to the end customer.” (Turban et al., 2006:63)
SCM – planning, organising, and optimising one or more activities of the supply chain

16. Managing supply chains
Supply Chain Management (SCM)
Managing supply chains
SCM – Help in decision making related to internal segments and their relationship with external segments
ERP – Help manage both the internal and external relationships with the business partners

17. Customer Relationship Management (CRM)
(CRM) focus on coordinating the business processes surrounding a firm's interactions with its customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention.
They consolidate customer data from multiple sources and communication channels to help firms identify profitable customers, acquire new customers, improve service and support, and target products and services more precisely to customer preferences

18. Knowledge Management Systems
The value of a firm's products and services is based not only on its physical resources but also on intangible knowledge assets.
Some firms perform better than others because they have better knowledge about how to create, produce, and deliver products and services.
Knowledge management systems support processes for discovering and codifying, sharing, and distributing knowledge, as well as processes for creating new knowledge and integrating external sources of knowledge.

19. The next topic is Strategic role IS
BIS1202