it & business models value chain and organizational systems chp. 10

IT & Business ModelsIT & Business Models

Value chain and organizational Value chain and organizational systemssystems

Chp. 10Chp. 10

Value chain and Value chain and organizational systems (VOC)organizational systems (VOC)

VOC systemsVOC systems

► Accounting systemsAccounting systems►Human resource management systemsHuman resource management systems►Distribution systemsDistribution systems►Work flow systemsWork flow systems

ERP systemsERP systems

►Are the core IT application of the Are the core IT application of the business modelsbusiness models

►Covers every aspects of Value Chain Covers every aspects of Value Chain and organizational systems.and organizational systems.

► Idea with ERP:Idea with ERP: Support every aspect of storage, Support every aspect of storage,

processing, retrieval and distribution of processing, retrieval and distribution of data.data.

What are ERP systemsWhat are ERP systems

►Are packages that are boughtAre packages that are bought Long-term dependence on vendors and Long-term dependence on vendors and

consulting firms.consulting firms. Embedded are normative business Embedded are normative business

practicespractices►Requiring business process re-engineeringRequiring business process re-engineering

►The most complex and comprehensive The most complex and comprehensive IT in organizational useIT in organizational use Affect every aspect of the organizationAffect every aspect of the organization

Enterprise resource planning Enterprise resource planning systems (ERP)systems (ERP)

LogisticsProductionDistributionSalesMaterials management

AccountingFinancialControllingInvestment management

Human resourcesDevelopmentAdministrationPayrollWorkforce planningTime management

ERPSystem

How do ERP systems workHow do ERP systems work

►Attemp to integrate all departments Attemp to integrate all departments and functions across a company.and functions across a company. Before typiccally every department had Before typiccally every department had

their own IT (sub-optimization)their own IT (sub-optimization) ERP is centralizationERP is centralization

►Combine all IT in a single programCombine all IT in a single program One databaseOne database Departments share dataDepartments share data Effeictive communicationEffeictive communication


Information flow of an orderInformation flow of an order

Customer Sales

Purcasing

Manufacturing

Supplier

Shipping

Different reasons for adopting Different reasons for adopting ERP systemsERP systems

► Technical reasonsTechnical reasons Old mainframe system orOld mainframe system or Many separate applicationsMany separate applications

► Business reasonsBusiness reasons Establish shared business processesEstablish shared business processes Shared informationShared information Increase management controlIncrease management control Improve efficiency of operationsImprove efficiency of operations Reduce costsReduce costs

► Standadirzed and rapid manufacturing processesStandadirzed and rapid manufacturing processes► Reduce inventoryReduce inventory► Integration of information on customers ordersIntegration of information on customers orders

Implementation of ERP Implementation of ERP systemssystems

►””Perhaps the worlds largest experiment Perhaps the worlds largest experiment in business change”in business change”

►””The largest change project in cost and The largest change project in cost and time that they have undertakens in time that they have undertakens in their history”their history”

►Every ERP have to be configuredEvery ERP have to be configured Adapting generic functionality to a Adapting generic functionality to a

particuar organizationparticuar organization

►Can take yearsCan take years

Failing implementation of ERP Failing implementation of ERP systemssystems

►People have to adopt the methods People have to adopt the methods embedded in the systemembedded in the system

►People might not like to changePeople might not like to change ERP force people to changeERP force people to change

►A failure in the integration of the A failure in the integration of the software can bring a company to halt.software can bring a company to halt.

►The hardest challange is to change the The hardest challange is to change the way people do their jobway people do their job

Effects on business (+)Effects on business (+)

Business process improvementBusiness process improvementIntegration among business unitsIntegration among business unitsRealtime access to data and informationRealtime access to data and informationStandardization of company processesStandardization of company processesIncreased flexibilityIncreased flexibilityIncreased productivityIncreased productivityIncreased customer satisfactionIncreased customer satisfactionOptimazation of the supply chainOptimazation of the supply chainReduction of reworkReduction of reworkBusiness growthBusiness growthImprovement of order-to-cash timeImprovement of order-to-cash timeCompetitive position abilityCompetitive position abilityImplementation of shared servicesImplementation of shared servicesImproved time to marked cyclesImproved time to marked cyclesImproved product qualityImproved product quality

Effects on business (Effects on business (÷)÷)

Very high implementation costs (US$400.000 to Very high implementation costs (US$400.000 to US$300 milion)US$300 milion)

Personnel turnoverPersonnel turnover

Organisation development is neededOrganisation development is needed

Side effectsSide effects

ERP consulting services relates to US$8 billion ERP consulting services relates to US$8 billion year 2002year 2002

The Business Model (p. 113)The Business Model (p. 113)

► Market/industryMarket/industry► Customers, competitionCustomers, competition

► Offering Offering EnvironmentEnvironment► Physical and service component, price/cost Physical and service component, price/cost ExternalExternal

► Activities and organizationActivities and organization The The CompanyCompany

► The company and its value chain! The company and its value chain! InternalInternal

► ResourcesResources EnvironmentEnvironment► Human, physical, organizationalHuman, physical, organizational ExternalExternal

► SuppliersSuppliers► Factor market, production inputFactor market, production input


SAP R3SAP R3

Navision (Damgaard Data now MicroSoft)Navision (Damgaard Data now MicroSoft)


http://www.sap.com/solutions/index.epxhttp://www.sap.com/solutions/index.epx

► SAP is a world leader in business solutions, offering comprehensive software and services that can address your unique needs.SAP is a world leader in business solutions, offering comprehensive software and services that can address your unique needs.► mySAPmySAP ERP ERP -- This solution provides end-to-end functionality for business analytics, financials, human capital management, -- This solution provides end-to-end functionality for business analytics, financials, human capital management,

operations, and corporate services -- and allows you to upgrade to the full range of SAP solutions. operations, and corporate services -- and allows you to upgrade to the full range of SAP solutions. ► mySAPmySAP Business Suite Business Suite -- This family of adaptive business solutions optimizes your most critical business processes. Built on the -- This family of adaptive business solutions optimizes your most critical business processes. Built on the

SAP NetWeaver platform, mySAP Business Suite solutions include SAP NetWeaver platform, mySAP Business Suite solutions include mySAPmySAP CustomerCustomer RelationshipRelationship Management Management, , mySAPmySAP ProductProduct LifecycleLifecycle Management Management, , mySAPmySAP SupplySupply ChainChain Management Management, and , and mySAPmySAP SupplierSupplier RelationshipRelationship Management Management. .

► SAP SAP xAppsxApps -- SAP offers packaged composite applications that run on top of existing, heterogeneous systems -- integrating -- SAP offers packaged composite applications that run on top of existing, heterogeneous systems -- integrating them into cross-functional, end-to-end business systems that let you execute enterprise-wide strategies with greater ease and them into cross-functional, end-to-end business systems that let you execute enterprise-wide strategies with greater ease and efficiency. efficiency.

► SAP SAP ManufacturingManufacturing -- This solution empowers both discrete and process manufacturers with role-based software that leverages -- This solution empowers both discrete and process manufacturers with role-based software that leverages real-time data -- enabling you to respond quickly to changes in demand, coordinate your value chain, comply with health and real-time data -- enabling you to respond quickly to changes in demand, coordinate your value chain, comply with health and safety standards, and improve productivity. safety standards, and improve productivity.

► SAP SAP NetWeaverNetWeaver -- This integration and application platform is the technical foundation for mySAP Business Suite and SAP -- This integration and application platform is the technical foundation for mySAP Business Suite and SAP xApps. SAP NetWeaver delivers a complete, open, and flexible infrastructure that allows you to integrate SAP and non-SAP xApps. SAP NetWeaver delivers a complete, open, and flexible infrastructure that allows you to integrate SAP and non-SAP applications easily. applications easily.

► Solutions for small and Solutions for small and midsizemidsize businessesbusinesses -- These affordable, prepackaged, and easy-to-implement solutions are designed to -- These affordable, prepackaged, and easy-to-implement solutions are designed to deliver SAP functionality and industry best practices to small and midsize companies. deliver SAP functionality and industry best practices to small and midsize companies.

► SAP solutions for mobile business -- With these solutions, you can leverage your existing IT investment by extending key SAP solutions for mobile business -- With these solutions, you can leverage your existing IT investment by extending key business processes to your mobile workforce through a variety of mobile devices, including palmtop computers, personal business processes to your mobile workforce through a variety of mobile devices, including palmtop computers, personal digital assistants (PDAs), and laptops. digital assistants (PDAs), and laptops.

► Analytic applications -- With analytic applications by SAP, you can make effective use of the business-intelligence functionality Analytic applications -- With analytic applications by SAP, you can make effective use of the business-intelligence functionality embedded in the software that supports your business processes. These applications enable the insights that can increase the embedded in the software that supports your business processes. These applications enable the insights that can increase the value gained from your enterprise software. value gained from your enterprise software.

► SAP integration program for enterprises -- This program supports the seamless integration of SAP Business One and mySAP All-SAP integration program for enterprises -- This program supports the seamless integration of SAP Business One and mySAP All-in-One solutions into the larger system landscape -- enabling your enterprise to take advantage of these cost-effective in-One solutions into the larger system landscape -- enabling your enterprise to take advantage of these cost-effective solutions to support subsidiaries, corporate subdivisions, and business partners. solutions to support subsidiaries, corporate subdivisions, and business partners.


http://www.microsoft.com/danmark/mbs/default.asphttp://www.microsoft.com/danmark/mbs/default.asp

► NavisionNavision► Introduktion. Med Microsoft Business Solutions-Navision kan du Introduktion. Med Microsoft Business Solutions-Navision kan du

udnytte det fulde potentiale i virksomheden. Uanset i hvilken retning udnytte det fulde potentiale i virksomheden. Uanset i hvilken retning virksomheden skal udvikles, er løsningen nem at tilpasse og integrere virksomheden skal udvikles, er løsningen nem at tilpasse og integrere i hele organisationen.i hele organisationen.

► Hvad får du med Microsoft Business Solutions-Navision?Hvad får du med Microsoft Business Solutions-Navision?Navision er en videreudvikling af den globale succes Navision Financials og Navision er en videreudvikling af den globale succes Navision Financials og Attain. Løsningen er specielt udviklet til at effektivisere arbejdsgange i Attain. Løsningen er specielt udviklet til at effektivisere arbejdsgange i mellemstore virksomheder i forbindelse med økonomistyring, administration, mellemstore virksomheder i forbindelse med økonomistyring, administration, kunde-/leverandørstyring og internetaktiviteter. Løsningen matcher dine krav, kunde-/leverandørstyring og internetaktiviteter. Løsningen matcher dine krav, uanset hvilke særlige krav du har til forretningsgange, økonomistyring og uanset hvilke særlige krav du har til forretningsgange, økonomistyring og administration. Du får også en række helt nye integrerede web-baserede administration. Du får også en række helt nye integrerede web-baserede værktøjer til kundestyring, leverandørstyring, ehandel, onlineadgang til værktøjer til kundestyring, leverandørstyring, ehandel, onlineadgang til systemet samt elektronisk dokumentudveksling. Navisions teknologi giver systemet samt elektronisk dokumentudveksling. Navisions teknologi giver mulighed for online-back up, automatisk håndtering af rapportudskrivning, mulighed for online-back up, automatisk håndtering af rapportudskrivning, massebogføringsudskrifter, opdatering og vedligeholdelseskørsler af massebogføringsudskrifter, opdatering og vedligeholdelseskørsler af kundeemner i CRM og meget andet.kundeemner i CRM og meget andet.

it & business models value chain and organizational systems chp. 10

Documents