it and business models chapter 10 value chain and organizational systems: activities and...
TRANSCRIPT
IT and Business Models
Chapter 10Value chain and
organizational systems: activities and organization
Enterprise ressource planning
ERP systems is part of VCO systems – Value Chain and Organization systems
ERP systems characteristics
Long term systems – vendor specific Requiring business process re-
enginering
High complexity
Information systems strategy
Efficiency Cost-benefit Competitive advantage Effectiveness
Redefine the boundaries of particular industries Develop new products or services Change the relationships between suppliers
and customers Establish barriers to deter new entrants to
marketplaces
Information systems strategy
Application areas: accounting, logistics and human resource management.
Logistics Production Distribution Sales Materials management
Information systems strategy
Application areas: accounting, logistics and human resource management.
Accounting Financial Controlling Investment management
Information systems strategy
Application areas: accounting, logistics and human resource management.
Human resources Development Administration Payroll Workforce planning Time management
Figure 10.2 Components of ERP systems.
Departments and ERP systems
Marketing Customer service Production Procurement Inventory Accounting Human resources Sales
Paper based systems
Sales personel Writes order Sales manager Checks order Manufactoring Manufactures order Shipment Deliver order Accounting Invoice / Payment
Documents
ERP systems
The information flow of order processing
Figur 10.5
ERP systems – the chatch
Falling implementation bankrupcy
ERP systems – the business effect - 1
Business process improvement Integration among business units Real-time access to data and information Standardization of company processes Increased flexibility Increased customer satisfaction Optimization of the supply chain Reduction of rework Business growth
ERP systems – the business effect - 2
Improvement of order-to-cash time Competitive positioning ability Implementation af shared services Improved time to market cycles Improved product quality
ERP systems
Re-think your business model