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Chapter 7

Enterprise-WideInformation Systems

Information Systems TodayLeonard 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 OrganizationsExample – 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 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 ManagementObjective Applications that help organizations attract new

business and attract and encourage repeat businessFunctions 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)

Sales Force Automation

Example: Siebel SFA displays …

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Supply Chain ManagementObjective 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 OfferingSAP is the ERP market leader. They also offer SCM applications whose capabilities including the following:

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

– email 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