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Chapter 7 Enterprise-Wide Information Systems
Information Systems Today Leonard Jessup and Joseph Valacich
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Enterprise System Example
Hop to it – Haas Hops
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Enterprise Systems Enterprise systems
Also known as enterprise-wide information systems
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Enterprise Systems Supporting business activities
Increase competitive advantage by supporting and/or streamlining business activities Can support either internally or externally focused business processes Interorganizational systems (IoS) Electronic transmission of information to another company
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Enterprise Systems – Within the Organization
Example – Order Process and Information Flow
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Interorganizational Systems – Across Organizations
Example – Order Process and Information Flow
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Enterprise Systems Internally Focused Applications
Value chain – the set of business activities
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Enterprise Systems Internally Focused Applications
Support activities –
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Enterprise Systems Externally Focused Applications
Integrate internal applications with those outside: suppliers, partners, customers Value system = linked value chains
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A Value System – Externally Focused
A connection of value chains across organizations Allows the flow of information between organizations to support business activities
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Types of Enterprise Systems
Forms of: Stand-alone applications
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Types of Enterprise Systems
Legacy Systems Conversion
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Types of Enterprise Systems
Enterprise Resource Planning Integrated applications Information stored in large, centralized data repositories called Data Warehouses
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Enterprise Systems – Integrated System Example
Integrated Systems – Information is stored in a single data repository and can be accessed and updated by all functional systems (e.g. Operations)
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Choosing an ERP System - Issues
ERP Systems are:
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Choosing an ERP System – Selection Factors
Control Business Requirements Best Practices
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ERP and Business Process Reengineering
Hammer and Champy, (“Reenginerring the Corporation”)
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Business Process Reengineering
Steps in Business Process Reengineering
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BPR Today – Observations and Research
Many large failures exist in large scale Business Process Reengineering implementations. To be successful and organizations must have:
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BPR Today – Observations and Research
Large bodies of research are available on the role of BRP and BPR implementations. Some of this research has come to the following conclusions: Reengineering and related organizational issues are as important as the technical implementation issues (Kumar and Van Hellersberg, 2000; Markus and Tanis, 2000) Managers in many cases must choose between making the ERP system fit the organization or the organization fit the ERP system (Soh, Sia, Tay-Yoh, 2000) For an ERP system to help transform the organization and gain new competitive capabilities, a full organizational and operational change is required (Willcocks and Sykes, 2000) In order to be successful, manager must first transform the organization and then implement the ERP system
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Enterprise Systems – Integrated (Interorganizational)
Integrated Packages
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Customer Relationship Management
Objective Applications that help organizations attract new business and attract and encourage repeat business Functions There are two primary functions in CRM systems: Sources There are two primary sources of CRM systems:
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Sales Support – Sales Force Automation (SFA)
Example: Siebel SFA displays …
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Supply Chain Management
Objective Applications that accelerate product development and reduce cost associated with procuring raw materials, components, and services from its suppliers Supply Chain – Supply Network – Sources There are two primary sources of SCM systems. These systems are built to tightly integrate with ERP systems
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SCM – Example of a Supply Network
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Supply Chain Management Benefits
Supply Chain Management applications can help organizations to gain competitive advantage and provide substantial payback in several ways by:
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SCM – Example of SAP SCM Offering
SAP is the ERP market leader. They also offer SCM applications whose capabilities including the following:
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Recommendations for Enterprise System Success
Secure Executive Sponsorship Get Help from Outside Experts Thoroughly Train Users Take a Multidisciplinary Approach to Implementations
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Chapter 7 QUIZ!!!
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Reminders! No Class on Friday!
FrontPage lab is due Friday by Midnight – me an URL to your assignment Next week we finish the book by covering Chapters 8 & 9 Group Projects due 11/30…also, this is the start of presentations Attendance at other presentations counts towards participation grade
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