“enterprise-wide information systems” by sumana sharma
TRANSCRIPT
“ENTERPRISE-WIDE INFORMATION SYSTEMS”
BY
SUMANA SHARMA
SALES DATA FOR THE YRS 99-03Product 99 00 01 02 03
A 9198 8362 5197 8600 9300
B 9291 7854 8600 8966 9197
C 6800 9277 9366 9600 9433
D 7816 9297 9369 9016 9020
E 9189 6800 6777 7235 7600
F 7218 4300 5689 4395 7281
HOW DOES THE SALES EXECUTIVE FURNISH THE
REQUESTED INFORMATION?
Feeds data into Microsoft Excel
SOFTWARE sitting
on HARDWARE
Sales exec. Collects
data
Information (bar charts)
S/W processes data
BossSent using COMMUNICATION LINKS
ENTITIES THAT MAKE UP THE IS
InformationSystem
PEOPLE
COMMUNICATION
LINKS
SOFTWAREHARDWARE
DATA
BEFORE ENTERPRISE SYSTEMS WERE BORN…
Different departments ran different applications on different computing platforms, using different hardware and different software.
Difficult to integrate information from different departments.
Different departments held different versions of the same data.
… AND THUS ENTERPRISE SYSTEMS WERE BORN
ES are Information systems that allow companies to integrate information across different departments on a company wide basis.
Provide an exhaustive central database common to all users (within different departments)
MAIN GOAL OF ES: SUPPORT BUSINESS ACTIVITIES
Types of Business activities
INTERNALLY FOCUSED
EXTERNALLY FOCUSED
INFORMATION FLOW WITHIN THE COMPANY
Order entry Fulfillment Shipping
OrderOrder
InvoiceInvoice
Business activity
Information
Packing
list
OUT
INFORMATION FLOW ACROSS THE ORGANIZATION
Shipping Receiving
InvoiceInvoiceInventoryInventory
Supplier business activity
Customer business activity
Internal infoFrom customers
Internal infoFrom customers
External infoFrom suppliers
External infoFrom suppliers
INTERNALLY FOCUSSED APPLICATIONS
VALUE CHAIN Flow of information through a set of business activities.
At each node, some value is added.
PRIMARY ACTIVITIES Inbound logistics Operations & Manufacturing Outbound logistics Marketing and Sales Customer service
VALUE CHAIN FRAMEWORK
SUPPORT ACTIVITIES
Infrastructure Human resources Technology development Procurement
EXTERNALLY FOCUSSED APPLICATIONS
INFORMATION FLOW
Upstream
#From an outside organization to us!
Downstream
#From us to an outside organization!
TYPES OF ENTERPRISE SYSTEMS
Packaged Bought from third
party vendor. Can be quite cost
effective. Vendor is
responsible for making changes, distributing new versions, etc
Custom Developed by
company personnel
Is a costly venture Company is
responsible for making changes and for maintenance
HOW ENTRPRISE SYSTEMS EVOLVED
Legacy systems
Customer relationshipManagement (CRM)
Supply ChainManagement (SCM)
Enterprise ResourcePlanning system (ERP)
Internally focused
Externally focused
LEGACY SYSTEMS Each department was like a water tight
compartment. Each had its own set of applications. Applications were infrastructure specific. Process of Information exchange was too
complicated. Inherent delay and data inconsistency
prevailed all over the organization.
INFORMATION FLOW IN LEGACY SYSTEMS
Inbound Logistics
OperationsOutboundLogistics
InventoryInventory OrderOrder InvoiceInvoice
Business activity
Information
ENTERPRISE RESOURCE PLANNING
Information stored on legacy systems is converted to a centralized data repository-data warehouse.
You don’t need to call up the other department to fetch data. It can be directly accessed from the data warehouse.
Eliminates data inconsistency issues. High overall efficiency!
INFORMATION STORAGE IN ERP SYSTEMS
Inbound Logistics
OperationsOutboundLogistics
OrderOrder InvoiceInvoice
InventoryInventory
Data
Warehouse
TOP 4 ERP VENDORS VENDOR PRODUCT MARKET
SHARE
SAP SAP R/3 36%
Peoplesoft
(**JD Edwards is now part of Peoplesoft)
PeoplesoftEnterprise
EnterpriseOneWorld
15%
Oracle Oracle E-Business suite
10%
BAAN SSA BAAN 5%
FACTORS TO CONSIDER BEFORE SELECTING AN ERP PACKAGE
CONTROL# Extent of information available at each
level# Corporate level/Business unit level
policies. BUSINESS REQUIREMENTS # Vanilla or custom? BEST PRACTICES# Industry standard business processes.
BUSINESS PROCESS REENGINEERING (BPR)
Altering the way business processes have been conducted, according to industry’s Best Practices!
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
CRM packages typically comprise of two applications;
SFA (Sales Force Automation) Presales marketing and sales.
CRM (Customer Relationship Management)
Post sales support
CRM VENDORSIN THE ENTERPRISE SEGMENT
*SAP
*Oracle
*SIEBEL
*Peoplesoft
*Onyx software
Challengers Leaders
VisionariesCompleteness of vision
Ability
To
execute
Niche players
Source: Gartner research (Jan 2004)
SUPPLY CHAIN MANAGEMENT(SCM)
Supply chain – consists of producers of supplies,that a company uses.
Supply network.
Supplier
Supplier
COMPANYCOMPANY
Supplier’s supplier
Supplier’s supplier
Supplier’s supplier
Supplier’s supplier
HOW DOES SCM HELP AN ORGANIZATION?
Streamlines upstream information flow. Two main goals are: Accelerate product development Reduce costs related to procurement of
raw materials,components or services from suppliers.
SCM VENDORS
SCM software market is highly highly fragmented.
Some leading SAP vendors include i2 technologies, Worldchain, Manugistics, Ariba etc.
SAP, BAAN, and Oracle offer SCM solutions integrated with their ERP package
FORMULA FOR ENTERPRISE SYSTEM SUCCESS
Secure executive sponsorship Get Help from outside experts. Thoroughly train users Take a multidisciplinary approach to
implementation.
