1. Chapter 7
Enterprise Systems

2. What Are Common Departmental Applications?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

3. When Are Information Silos a Problem?
Data isolated in separated information systems
Created over time as personal and workgroup support applications implemented
Silos duplicate data and become serious problems as organizations grow
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

4. What Problems Do Information Silos Cause?
Some of Departments Involved in Patient Discharge
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

5. Problems of Silos Created in Isolation
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

6. An Enterprise System for Patient Discharge
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

7. How Do CRM and ERP Support Enterprise Systems?
Help organizations fundamentally rethink how they do work to dramatically improve customer service, cut operational costs, and become world-class competitors
Complex, in-house developed applications became too costly to build and maintain
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

8. How Do CRM and ERP Support Enterprise Systems? (cont’d)
Inherent processes
Pre-designed procedures for using software products
Saves organizations from expensive and time-consuming business process reengineering
Based on industry best practices
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

9. Customer Relationship Management (CRM)
A suite of applications, a database, and a set of inherent processes for managing all interactions with a customer, from lead generation to customer service
Customer-centric ability
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

10. Four Phases of Customer Life Cycle
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

11. Major Components of a CRM Application
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

12. Vendors
Source – crmswitch.com

13. Enterprise Resource Planning (ERP)
Suite of applications, database, and set of inherent processes for consolidating business operations into single, consistent, computing platform
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

14. Pre-ERP Information System: Bicycle Manufacturer
Does not include accounting
Five non-integrated databases
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

15. ERP Information System
All activity processed by ERP application programs and consolidated data stored in centralized ERP database
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

16. How Are ERP Systems Implemented?
Major tasks in implementation of an ERP application
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

17. ERP Market Share - Gartner
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

18. Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

19. What Are the Challenges When Implementing New Enterprise Systems?
Collaborative Management
Requirements Gaps
Transition Problems
Employee Resistance
Challenges
Difficulty
Expense
Risk
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

20. Collaborative Management
Challenges
No single manager in charge
Committees and steering groups
Collaborative Management
Licensed products are never perfect fit
Features and functions of complex products makes identifying gaps difficult
Deciding what to do with gaps. Adapt to application or change application?
Requirements Gaps
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

21. Challenges (cont’d) Transition problems Employee resistance
Careful planning and substantial training critical
Transition problems
Change requires effort and creates fear
Senior level management must communicate need for change to organization, and must re-iterate
Train key users ahead of time to create positive buzz about new system
Video demonstrations of employees successfully using new system
Encourage change with extra inducements
Employee resistance
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

22. ASSIGNMENT #4
Using the example of your organization, describe three workgroup information systems that are likely to duplicate data.
Explain how the three workgroup information systems create information silos. Describe the kinds of problems that those silos are likely to cause using Figure 7-6 in slide #5 as a guide.
Describe an enterprise information system that will eliminate the silos. Illustrate the new process like the one in Figure 7-8 in slide #6.
Discuss the challenges you might face in implementing the new enterprise information system.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall