1 chapter 7 enterprise-wide information systems dr. hassan ismail slides prepared based on...
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Chapter 7Chapter 7
Enterprise-WideEnterprise-WideInformation SystemsInformation Systems
Dr. Hassan IsmailDr. Hassan IsmailSlides prepared based on Information Systems Today
Leonard Jessup and Joseph Valacich
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Chapter 7 ObjectivesChapter 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
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Enterprise SystemsEnterprise Systems
Allow companies to integrate information across operations on a company-wide basis
The Internet has helped create the globalization
New business needs/expectations: Customer service management Supply chain management
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Support business activitiesSupport business activities
Increase competitive advantage by streamlining business activities
Inter-organizational systems (IoS) Electronic transmission of information to another
company
Order EntryOrder Entry FulfillmentFulfillment ShippingShipping
OrderPacking
ListInvoice
Info
rmati
on
Busi
ness
Act
ivit
y Information Flow for a typical OrderInformation Flow for a typical Order
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Support business activitiesSupport business activities
ShippingShipping ReceivingReceiving
Invoice Inventory
Customer Business Activity
Supplier Business Activity
Information Flow for a typical shipment across organizational Information Flow for a typical shipment across organizational boundariesboundaries
Supplier Customer
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Internally Focused ApplicationsInternally 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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Internally Focused ApplicationsInternally Focused Applications
Support activities:InfrastructureHuman resourcesTechnology developmentProcurement
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External Focused ApplicationsExternal 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
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Types of Enterprise SystemsTypes of Enterprise Systems
Packaged applications Custom applications Stand-alone applications
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Legacy SystemsLegacy Systems
Older systemsTend to be infrastructure-specificUsually linked to a specific
business needNot integrated
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ERP- Enterprise Resource PlanningERP- Enterprise Resource Planning
Integrated applications ERP systems
Baan Oracle PeopleSoft SAP J.D. Edwards
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ERP-ImplementationERP-Implementation
Modules “Vanilla” version Customizations Best practices Business process reengineering
(BPR)
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Customer Relationship Management –Customer Relationship Management –CRMCRM
Sales Force Automation (SFA) New opportunities for competitive
advantage Examples:
MGM American Airlines Marriott International
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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
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The Formula for Enterprise System Success
Secure executive sponsorship Get help from outside experts Thoroughly train users Take a multidisciplinary approach to
implementation