1. 1 Aplikacije za potporu poslovnih funkcija ( Financije, Računovodstvo, Proizvodnja, Ljudski potencijali...) Međuorganizacijske aplikacije Upravljanje vezama s kupcima CRM, Upravljanje nabavnim lancima SCM, Planiranje poslovnih resursa ERP Aplikacije poslovnog sustava

2. 2 Enterprise Business Systems e-Business Applications e-Commerce Cross-functional Enterprise Systems Customer Relationship Management Enterprise Resource Planning Supply Chain Management

3. 3 Learning Objectives 1. Identify the following cross-functional enterprise systems and give examples of how they can provide significant business value to a company. a) Enterprise resource planning b) Customer relationship management c) Supply chain management d) Enterprise application integration e) Transaction processing systems f) Enterprise collaboration systems 2. Give examples of how Internet and other information technologies support business processes within the business functions of accounting, finance, human resource management, marketing, and production and operations management.

4. 4 LEARNING OBJECTIVES Understand the essentials of enterprise systems and computerized supply chain management. Describe the various types of supply chains. Describe some major problems of managing supply chains and some innovative solutions. Describe some major types of software that support activities along the supply chain. Describe the need for integrated software and how ERP does it. Describe CRM and its support by IT.

5. 5 Customer Feedback Market Research Market Test Component Design Product Test Product Release Process Design Equipment Design Production Start MarketingR&D/EngineeringManufacturing Enterprise Business Systems New Product Development Process

6. 6 ERP and Supply Chains It is comprised of a set of applications that automate routine back-end operations: such as financial management inventory management Scheduling order fulfillment cost control accounts payable and receivable, It includes front-end operations such as: POS Field Sales Service It also increases efficiency, improves quality, productivity, and profitability. ERP or enterprise systems control all major business processes with a single software architecture in real time. ESSENTIALS OF ENTERPRISE SYSTEMS AND SUPPLY CHAINS

7. 7 Suppliers Customers Employees Partners Supply Chain Management Sourcing - Procurement Enterprise Resource Planning Internal Business Processes Customer Relationship Management Marketing – Sales - Service Knowledge Management Collaboration – Decision Support Partner Relationship Management Selling – Distribution Enterprise Application Architecture Enterprise Business Systems

8. 8 Typical Enterprise Application Architecture

9. 9 Customer Relationship Management (CRM) Software Gathers data from operations activities such as: Sales automation Customer service center operations Marketing campaigns Web site performance Improve & enrich customer interaction

10. 10 ESSENTIALS OF ENTERPRISE SYSTEMS AND SUPPLY CHAINS

11. 11 Created Real-time Configure-to-Order System Enterprise e-Business Systems Need End-to-End Connectivity: Across Different Processes From Legacy Systems to its Suppliers, Customers and Partners Orders by Customers Travel Great Global Distances Systems Update Order Status Communicate with Other Systems-Real Time Orders Zip Across Atlantic Average 4 Times Enterprise Business Systems IBM Corporation: Global Cross- Functional Enterprise Systems

12. 12 1 st Generation Enterprise Computing Discrete Business Applications within Enterprise Coupled by manual or batch processing Separate application sets like Order, Inventory, Accounting Through print-out or screen-scraper Local optimization on each business operation Data silo issue

13. 13 2 nd Generation Enterprise Computing Monolithic Integration with Package Apps around Business Process ERP package integrates a set of application tightly but monolithic Data silo issue resolved within ERP Needs many customization to adopt New business application packages create higher level data silo issue Between application packages like CRM, e-commerce, SCM etc. B2B and B2C create new integration needs across enterprises

14. 14 3 rd Generation Enterprise Computing EAI needs by On-demand Business ERP and monolithic application packages integration through EAI (Enterprise Application Integration) Has to be responsive through entire processes as enterprise in network economy Still tightly non-flexible integration between business processes No dynamic partnership enabled Difficult to change and create new process (70% of IT budget spent for current system-associated maintenance) Difficult to change IT resource for business transaction fluctuation Huge spike as e-commerce nature

15. 15 Next-Generation Enterprise Computing Enterprise Application Needs for Network Economy Build business process dynamically as composite services within Enterprise and across Enterprise Disintegrate monolithic business processes Long business transaction to complete a business process Dynamic resource allocation for transaction fluctuation

16. 16 Functional Areas in a Business Cash Management Asset Management Budgeting A/R A/P Payroll General Ledger Compensation Vacation Skills/Training Receiving Fulfillment Process control Purchasing Order Taking CRM Self-service Retail Pricing Sales Promotions Sales Force Management. Customer Loyalty Interactive Marketing

17. 17 Functional Areas – Value Chain Perspective The value chain model, views activities in organizations as either primary ( reflecting the flow of goods and services ) or secondary ( supporting the primary activities ). The organizational structure of firms is intended to support both of these types of activities.

18. 18 Functional Areas – Supply Chain Perspective The supply chain is a business process that links all the procurement from suppliers, the transformation activities inside a firm ( the value chain ) and the distribution of goods or services to customers via wholesalers and retailers.

19. 19 Functional Information Systems Composed of smaller systems: A functional information system consists of several smaller information systems that support specific activities performed in the functional area. Integrated or independent: The specific IS applications in any functional area can be integrated to form a coherent departmental functional system, they can be integrated across departmental lines to match a business process or be completely independent. Interfacing: Functional information systems may interface internally with each other to form the organization-wide information system or externally systems outside the organization. Supportive of different levels: Information systems applications support the three levels of an organization ’ s activities: operational, managerial, and strategic Functional information systems support the organization, processes and business model. Enterprise Wide Environment – All business units.

20. 20 Functional Information Systems Business transactions, events and processes. Support of the business and customers. Back office administrative tasks and ops. Datamining ops that support management Data Analysis and statistical forecasting. Operation Level of the company is normally highly structured and predefined. Dynamic and what-if features. Integrated Clerical documents, schedules, mail, manuals, etc.

21. 21 Transaction Processing Information Systems The transaction processing system Monitors Collects Stores Processes Disseminates information for all routine core business transactions. In every organization there are business transactions that provide its mission-critical activities. Each transaction may generate additional transactions. Since the computations involved in most transactions are simple and the transaction processes are well defined they can be easily computerized. The primary goal of is to provide all the information needed to keep the business running properly and efficiently.

22. 22 – Product Lifecycle Management PLM is a business strategy that enables manufacturers to control and share product-related data as part of a products design and development efforts. Web-based supply chains and other technologies are employed to automate this collaborative effort. Managing Production/Operations & Logistics  This electronic-based collaboration can reduce product cost travel expenses reduce costs associated with product-change management reduce the time it takes to get a product to market

23. 23 – Product Lifecycle Management Managing Production/Operations & Logistics

24. 24 – Marketing and Sales Systems Channel systems are the involved in the process of getting a product or service to customers and dealing with their needs. These systems link and transform marketing, sales, procurement, logistics, and delivery activities with other corporate functional areas.  Some of the channel-system activities are: customer relations distribution channels and in-store innovations marketing management telemarketing

25. 25 – Marketing and Sales Systems

26. 26 Production Planning Integrated Logistics Accounting and Finance Human Resources Sales, Distribution, Order Management Customer/ Employee Enterprise Resource Planning The Technological Backbone of e-Business

27. 27 Enterprise Resource Planning Colgate-Palmolive: The Business Value of ERP Use of Software across the Entire Spectrum of the Business Activities That Once Took Days now Take Hours On-Time and Correctness of Deliveries Improved Significantly Inventories Reduced by 1/3 and Realized Meaningful Cost SavingsGraphically…

28. 28 Suppliers Human Resources Finance and Accounting Demand Planning Manufacturing Planning Logistics Planning Distribution Planning Order Entry Enterprise Resource Planning Customers Purchasing & Accounts Payable MRP Inbound Inventory Plant Mgmt. Manufacturing & Production Scheduling Inventory Control & Warehousing Distribution & Accounts Receivable Enterprise Resource Planning Colgate-Palmolive: The Business Value of ERP

29. 29 Benefits of ERP Quality and Efficiency Decreased Costs Decision Support Enterprise Agility Failures in ERP Do Exist Enterprise Resource Planning

30. 30 SAP AG’s Software Installation Problems of ERP Integrated Suite into a Retail Environment Sobey’s Grocer Had Problems with Number of Transactions Jo-Ann Stores and Petsmart Blamed Software for Poor Financial Performance Sobey’s is Replacing System Enterprise Resource Planning Sobeys Inc.: Failure in ERP Implementation

31. 31 Causes of ERP Failures Underestimating the Complexity of Planning, Development, and Training Needed Failure to Involve Affected Employees Trying to do Too Much Too Fast Over Reliance by Company on Claims of Software Companies Enterprise Resource Planning

32. 32 Enterprise Application Integration EAI Software Connects Major e- Business Applications Like CRM and ERP Front-Office CRM Applications Customer Service Field Service Product Configuration Sales Order Entry Back-Office ERP Applications Distribution Manufacturing Scheduling Finance Enterprise Application Integration EAI