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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