1. 1 Chapter 7 Enterprise-Wide Information Systems Information Systems Today Leonard Jessup and Joseph Valacich

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3. 3 Chapter 7 Objectives  Understand how information technology supports business activities  Understand enterprise systems and how they evolved  Understand software applications that are internally or externally focused  Understand how to implement enterprise systems

4. 4 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. 5 Enterprise Systems  Enterprise systems –The Internet has helped create the globalization –New business needs/expectations:  Customer service management  Supply chain management

6. 6 Enterprise Systems  Supporting business activities –Increase competitive advantage by streamlining business activities –Interorganizational systems (IoS)  Electronic transmission of information to another company

7. 7 Enterprise Systems  Internally Focused Applications –Value chain – the set of business activities –Primary activities:  Inbound logistics  Operations and manufacturing  Outbound logistics  Marketing and sales  Customer service

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9. 9 Enterprise Systems  Internally Focused Applications –Support activities:  Infrastructure  Human resources  Technology development  Procurement

10. 10 Enterprise Systems  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. 11 Types of Enterprise Systems  Packaged applications  Custom applications  Stand-alone applications

12. 12 Types of Enterprise Systems  Legacy Systems –Older systems –Tend to be infrastructure-specific –Usually linked to a specific business need –Not integrated

13. 13 Types of Enterprise Systems  Enterprise Resource Planning –Integrated applications –ERP systems  Baan  Oracle  PeopleSoft  SAP  J.D. Edwards

14. 14 Types of Enterprise Systems  ERP Implementation –Modules –“Vanilla” version –Customizations –Best practices –Business process reengineering (BPR)

15. 15 Types of Enterprise Systems  Customer Relationship Management (CRM) –Sales Force Automation (SFA) –New opportunities for competitive advantage –Examples:  MGM  American Airlines  Marriott International

16. 16 Types of Enterprise Systems  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. 17 The Formula for Enterprise System Success  Secure executive sponsorship  Get help from outside experts  Thoroughly train users  Take a multidisciplinary approach to implementation