1. © 2003 Prentice Hall, Inc.7-1 Chapter 7 Enterprise-Wide Information Systems Information Systems Today Leonard Jessup and Joseph Valacich

2. © 2003 Prentice Hall, Inc.7-2

3. © 2003 Prentice Hall, Inc.7-3 Chapter 7 Objectives Understand how information technology supports business activities Understand how information technology supports business activities Understand enterprise systems and how they evolved Understand enterprise systems and how they evolved Understand software applications that are internally or externally focused Understand software applications that are internally or externally focused Understand how to implement enterprise systems Understand how to implement enterprise systems

4. © 2003 Prentice Hall, Inc.7-4 Enterprise Systems Enterprise systems Enterprise systems  Also known as enterprise-wide information systems  Information systems that allow companies to integrate information across operations on a company-wide basis

5. © 2003 Prentice Hall, Inc.7-5 Enterprise Systems Enterprise systems Enterprise systems  The Internet has helped create the globalization  New business needs/expectations:  Customer service management  Supply chain management

6. © 2003 Prentice Hall, Inc.7-6 Enterprise Systems Supporting business activities Supporting business activities  Increase competitive advantage by streamlining business activities  Interorganizational systems (IoS)  Electronic transmission of information to another company

7. © 2003 Prentice Hall, Inc.7-7 Enterprise Systems Internally Focused Applications Internally Focused Applications  Value chain – the set of business activities  Primary activities:  Inbound logistics  Operations and manufacturing  Outbound logistics  Marketing and sales  Customer service

8. © 2003 Prentice Hall, Inc.7-8

9. © 2003 Prentice Hall, Inc.7-9 Enterprise Systems Internally Focused Applications Internally Focused Applications  Support activities:  Infrastructure  Human resources  Technology development  Procurement

10. © 2003 Prentice Hall, Inc.7-10 Enterprise Systems Externally Focused Applications Externally Focused Applications  Integrate internal applications with those outside: suppliers, partners, customers  Upstream information  Information received from another organization  Downstream information  Information sent to another organization

11. © 2003 Prentice Hall, Inc.7-11 Types of Enterprise Systems Packaged applications Packaged applications Custom applications Custom applications Stand-alone applications Stand-alone applications

12. © 2003 Prentice Hall, Inc.7-12 Types of Enterprise Systems Legacy Systems Legacy Systems  Older systems  Tend to be infrastructure-specific  Usually linked to a specific business need  Not integrated

13. © 2003 Prentice Hall, Inc.7-13 Types of Enterprise Systems Enterprise Resource Planning Enterprise Resource Planning  Integrated applications  ERP systems  Baan  Oracle  PeopleSoft  SAP  J.D. Edwards

14. © 2003 Prentice Hall, Inc.7-14 Types of Enterprise Systems ERP Implementation ERP Implementation  Modules  “Vanilla” version  Customizations  Best practices  Business process reengineering (BPR)

15. © 2003 Prentice Hall, Inc.7-15 Types of Enterprise Systems Customer Relationship Management (CRM) Customer Relationship Management (CRM)  Sales Force Automation (SFA)  New opportunities for competitive advantage  Examples:  MGM  American Airlines  Marriott International

16. © 2003 Prentice Hall, Inc.7-16 Types of Enterprise Systems Supply Chain Management (SCM) Supply Chain Management (SCM)  Supply chain – the producers of supplies that a company uses  Supply network  What if supply chain does not collaborate?  Two objectives of upstream information flow:  Accelerate product development  Reduce costs associated with suppliers

17. © 2003 Prentice Hall, Inc.7-17 The Formula for Enterprise System Success Secure executive sponsorship Secure executive sponsorship Get help from outside experts Get help from outside experts Thoroughly train users Thoroughly train users Take a multidisciplinary approach to implementation Take a multidisciplinary approach to implementation