Information Systems Infrastructure

(IS3314)3rd year BIS 2006 / 2007

Fergal CartonBusiness Information Systems

2 weeks ago

• Integration definition: benefits of sharing, while retaining own identity

• Integration examples– Dell– Sun MicroSystems– Bank branch

• Integration downsides• ERP project resources

– Business process– Project– Technical (data and IT)

• Topps Case study (handout)

This week

• Integration examples– Dell– Sun MicroSystems

• ERP Project issues

• Topps Case study

Integration example: Dell • Suppliers using 18 different s/w packages• Missing integration:

– Seamless processing

– Reduces costs

– Speeds up customer responsiveness

• Develop system to interface to 18 others?• For 40 biggest customers “one click shopping”

– Customers continue to order on-line

– Dell simultaneously enters the order into the customers procurement system

Dell update 2007• Michael Dell back as CEO

• Biggest challenge is “bureaucracy”

Integration example: Sun Microelectronics

• “Fabless” manufacturer• Uses contract manufacturers• Chip demand forecasts based on sales and internal

demand• Forecasts loaded into web based SCM s/w• Contract manufacturers check demand against

inventory and capacity• Enter component and materials needs into system• 2nd tier suppliers (memory and CPU) commit to

deliver by certain dates• Sun sees a picture of upcoming product flow

ERP projects: resources required

Users / power users

User management

Steering Committee

Functional analysts

Application expert

DBA’s / Sys Admin

Project team

Process leads

Project Managers

Technical Project Business process

ERP projects: resources required

Software vendor

Hardware vendor

Users / power users

User management

Steering Committee

Functional analysts

Application expert

DBA’s / Sys Admin

Project team

Process leads

Project Managers

Systems Integrator

Technical Project Business process

Project issues• Availability of team members / users• Decision making processes• Developing workarounds• Timeline too tight to allow resolution of issues• Massive learning curve for team• Expectation management• Retaining ownership of process related decisions

Resources : Financial Controller• Having seconded the AP manager to the project for 18

months …– Just after go-live, lost the AP manager– Basic functionality missing

• Statutory reports for countries• Unmatched receiver report• arguments over Break-Fix vs. Enhancement

– Lost understanding of why things were done in a certain way• Knowledge of application• Knowledge of business processes in the US

– Worse: lost ability to get things fixed!• Prioritisation of SIRs (System Investigation Requests)• Reports written by end-users (eg. AP Manager)• Local IS or global IS now working to gobal requirements• Can’t customise the application

Resources : Technical (data)• Data clean-up team• Data conversion team• Data conversion programmer• Legacy data team • Data quality testing and maintenance• …

Data issues …• Getting and maintaining clean data

– When creating a new customer, who has control?

– 42 occurrences of Siemens in your customer database, what do you do?

– Customers exist in ERP core database, but also in several legacy systems. How do you make sure they are in synch?

– …

Resources : Technical (IT ops)• Database administrator

• Systems administrator

• Operators : core apps

• Server operators

• Storage technicians

• HelpDesk

• …

Database issues …• Guaranteeing “high availability”

• How often should Test be refreshed?• How many environments should I have

– Test– Production– Development– Training– Business Simulation– …

• If I implement a change to Production, do I need to implement the same change across all environments?

• 20 programmers developing / testing new code every day: how do I track releases to production?

• …

Systems admin issues …• Ensuring system access for users

• New users

• Changes to existing profiles

• System downtime for maintenance

• Forcing users out of system

• Tracking source of corrupt data to user profile

• …

HelpDesk issues …• Calls arriving at HelpDesk are either :

• Forgotten password• New user • Changes to user profile• Printing problems• Connectivity problems• Response time problems• System crashes• System error messages• PC problems• I need more training• …

HelpDesk issues …• …or :

• Functionality questions (how do I transact an invoice?)

• Process questions (when should I post to GL?)

• Reporting (I need a revenue report)

Project handover to HelpDesk• Prior to go-live, implement procedures for :

– Logging calls such that it will be routed to the right person and tracked, reported on and escalated

– Training for HelpDesk to be able to ask the right questions concering an application issue

– Troubleshooting application issues to be able to deal with simple “fixes”

– Ongoing consultation with application team regarding new functionality being rolled out, common errors, planned outages, …

Topps questions• Describe the limitations of current processes (un-

integrated)

• What were the potential failure points for the business?

• What are the potential benefits of ERP (integration) for Topps?

• Why did the decision to implement ERP take so long?

Case study notes

• Entertainment products• 3 warehouses

– Cork (stocks manufactured in Cork)– Liverpool (stocks for UK market)– Rotterdam (stocks of imported products)

• Only 20% of goods manufactured locally• Product lifecycle short : rotation critical• Rapid growth of business• Increase in trading -> increase paperwork

Topps : systems “as-is”

• Spreadsheet based (eg. mini P&L accounts)

• Payroll / invoicing / inventory : obsolete systems

• No local IS support

Issues with Spreadsheets?

Risks?

Systems issues

• Lack of on-line stock control• Paperwork delays on shipping• Lack of control of debtors balances /

invoices due• Lack of detail on reporting profitability• Too much information in people’s heads• Too much time gathering information, not

analysis

ShippingCredit Control

Treasury

Potential business failures

• Sales order processing

• Invoicing“Execution”

Benefits for Topps

• Results in 1 week

• Drill-down capability

• Live data on inventory & shipment

Why did it take so long

• Match with IT strategy?

• Support issues

• Project champion

• No analysis of processes