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Chapter 7

Chapter 7. Enterprise Systems. “But Nobody Told Me”. Scenario Video. Questions. How is Anne’s performance measured? How is Mike’s performance measured? What processes need improvement? How could the problems have been avoided? How could technology have helped?

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Chapter 7

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  1. Chapter 7 Enterprise Systems

  2. “But Nobody Told Me” Scenario Video

  3. Questions • How is Anne’s performance measured? • How is Mike’s performance measured? • What processes need improvement? • How could the problems have been avoided? • How could technology have helped? • What can they do to solve the problem now?

  4. Bottom Line • Different people have different perspectives • Goals and objectives differ • Performance measurements differ • Even small organizations can benefit from cross functional enterprise systems • Information silos can cause problems • Data isolated in different systems conflicted

  5. Information Systems Vary By Scope A.K.A. Departmental, functional, or collaborative

  6. Q2: When Are Information Silos a Problem? Data isolated in separated information systems Created over time as personal and workgroup support applications implemented As organizations grow, silos duplicate data and become serious problems

  7. Group Exercise • Pick a function at Fox Lake • Wedding Events • Golf Operations • Facilities • What are your goals? • Who are your customers? • What problems do you face and what happens if you can’t solve them? • What sort of information system would you need/use?

  8. Fox Lake Departmental Goals

  9. Silos = Islands of Automation

  10. Problems with Silos • Data Duplication or inconsistency • Disjointed processes • Limited information and lack of integration • Isolated decisions can lead to inefficiencies • Increased expenses

  11. How Enterprise Systems Eliminate Silos

  12. Sounds easy… • What would be required to implement this for each department? • What might change?

  13. Business Process Reengineering BPR = Analysis and design of workflows and processes within an organization. Identify Processes Review, Update, Analyze As Is Enterprise systems not feasible until network, data communication, and database technologies reached sufficient level of capability and maturity in late 1980s and early 1990s. Test & Implement To Be Design To Be

  14. Business Process Reengineering • Enterprise systems enabled the creation of stronger, faster, more effective linkages among value chains • BPR is difficult, slow, and exceedingly expensive. • Systems analysts need to interview key personnel throughout the organization to determine how best to use new technology • Require high-level and expensive skills and considerable time

  15. Inherent Processes • Pre-designed procedures for using software products • Saved organizations from expensive and time-consuming business process reengineering • Based on industry best practices

  16. Example of Vendors PeopleSoft—payroll and limited capability HRM systems Siebel—sales lead tracking and management system SAP—enterprise resource management

  17. Customer Relationship Management (CRM) • Systems that manages the interactions through the customer life cycle • Customer life cycle – stages • Attracting a Target • Selling to a Prospect/Lead • Supporting and reselling to a Customer • Loss and Churn/winning back

  18. Customer Life Cycle

  19. STOP

  20. Enterprise Resource Planning (ERP) Suite of applications, database, and set of inherent processes for consolidating business operations into a single, consistent, computing platform.

  21. ERP Projects Almost no organization develops its own ERP software Multi-year project involves millions of dollars and hundreds of employees, consultants, and vendor personnel

  22. Enterprise Application Integration- EAI • Suite of software to integrate existing systems by providing layers of software that connect applications together • Enables sharing of data • Integrates info • Leverages existing systems • Enables gradual move to ERP • Video

  23. EAI Automatically Makes Data Conversions Among Different Systems Virtual Integrated Database

  24. Elements of an ERP Solution ERP Application Programs ERP Databases ERP Training and Consulting ERP ERP Business Process Procedures

  25. ERP Include Applications that Integrate: • Supply chain management • Manufacturing systems • CRM • HR systems • Accounting systems

  26. Major ERP Vendors

  27. ERP Products

  28. A Case Study at SAP • Video

  29. Challenges When Implementing New Enterprise Systems • Challenges • Difficulty • Expense • Risk Employee Resistance Requirements Gaps Transition Problems Four Prime Factors Collaborative Management

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