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Why do you think that Aviall failed in their implementation of an enterprise resource planning system? What could they have done differently?. 951761 潘伊芳. Failed reason : Integration of old system is not fine Aviall couldn’t properly order Relationship between supplier, Aviall and customer
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Why do you think that Aviall failed in their implementation of an enterprise resource planning system? What could they have done differently? 951761 潘伊芳
Failed reason: Integration of old system is not fine Aviall couldn’t properly order Relationship between supplier, Aviall and customer Aviall doesn’t try to measure the return on investment the e-business website Aviall couldn’t properly ship things
Why Integration of old system is not fine ERP software and stock operation system can not keep synchronized. Every system may be produced by different suppliers, and it’s hard to integrate. Old system lacks of database system to integrate. (There are 380,000 air-flight components , if the database system is not completed, it may manage stock improperly.) Integration of old system is not fine
Integration of old system is not fine Improvement method: Purchase flawless database system and integrate all systems, and use the same database to do automated order schedule and stock management. It will be more instant and consistent, and it prevents from input error that different database causes.
Why couldn’t properly order or ship things Stock management out of control (problem happens when handle order, different quantity or item with order that affect revenue) Can’t estimate which product or how many (so that stock is too much or too less) Can’t handle with price quoting and order making (the cycle of sale managing becomes longer) It makes error in financial accounting, and customer will lost patience. Aviall couldn’t properly order
Faster order management (reduce work quantity which staff are required to do → train them to own one professional skill → reduces the time of doing one task and convenient to mark off responsibility.) Estimate the stock quantity (use the information of last period or last season to estimate required stock → reduce the stock cost and the supply is unable to meet the demand) Correctness of delivery product item and quantity (before delivering product, check once more to reduce the delivery cost and return goods.) Improvement method:
Relationship between supplier, Aviall and customer Supplier Aviall Aviall Customer Between the supplier and the customer has not been connected, must penetrate the Aviall relation. The supplier is unable immediate knowing to produce how many components. Cause Aviall to order to the supplier, the supplier actually does not have situation of the goods supplies.
Improvement method: Make the relationship of supplier and customer more closer Automatic:create web server – make supplier check the prepaid order and price information Manuel:After staff finish the sale order, tell the supplier the required quantity right away. Customer Supplier Aviall
Automated placing order system can be used by company staff, and it’s not online edition. If company invest e-commerce website, it must pay another set of online purchasing system. Why doesn’t try to measure the return on investment the e-business website: 1. Reduce cost and doesn’t do investment 2. Company doesn’t have professional information staff Aviall doesn’t try to measure the return on investment the e-business website
Improvement method: Implement set of online purchasing system (make customers place order themselves to reduce human cost) Train the staff about the e-commerce
About the logistics, Aviall doesn’t have this kind of system, and they can’t plan the delivery route perfectly. So that it may lost some customer’s product and increase the delivery cost. Aviall couldn’t properly ship things
Improvement method: Implement →Warehouse Logistics System The advantage to implement: Accelerate frequency of component flow (plan delivery route completely - Example:How many routes do they require to reach the minimum cost. Arrange the product’s place in truck to save the waiting time.) Reduce lots of stock quantity (how many stock from every component can be recorded in database, and can research the updated stock quantity.) Reduce operation staff (there are specific position from different components, and that can reduce time and staff to manage stock.)
How has information technology brought new business success to Aviall? 941761 林承豐
Successful to make all systems cooperate together New Era Of Network E-Biz (Integration Server) Aviall uses different information systems to get ability to serve clients. Because every system’s data format may be different, to make them cooperate with each other, Aviall uses New Era of Network e-Biz to integrate server.
E-commerce • Aviall needs to be the best supply chain company which keep great relationship with clients, and to be ahead of competitors. Aviall implements comprehensive e-commerce which can handle all business in order to get out of difficult position.
Customers can do all business through Internet • Customers can do all business automatically with Aviall through Internet. Company provides a tool which can transfer the online component list for customers. The respond time of price reporting and order making reduces from 5 days to few minutes that clients use Web.
Get information easier • Customers can search information about component more convenient, and they can receive the component price and stock situation in 5 seconds.
Customized order • Aviall has special fixed price with many clients. They need to connect with Internet and ERP system, and create customized catalog automatically based on client’s login information, so that website can show agreement price.
Changed into an E-commerce system through Internet • Transfer the business into Internet • Reduce the cost of company • Phone order: 9 dollars Internet: 0.39 dollars • Newly purchase planning • Reduce time which salesman search the order, and they can spend more time on clients.
How could other companyies use Aviall's approach to the use of IT to improve their business success? Give several examples 932509 王振羽
For: • Outgoing Lunch restaurants • What’s going to do: • Using the internet technologies to change the traditional way for outgoing. • Why need to change: • Now customers want everything to be fast and convenient to get. Using internet technologies is able to fit customers’ needs.
How to do: • 1. Set a website interface • 2. Build users system • 3. Build databases • 4. Set the flow path • 5. Make network interactive functions
Website interface • Appearance design • Convenience • Security • Easy to use
User system • User system • Certification For website security • Order list check Users could check, cancel, or modify their order list. • Credit card • Database • Including User, Menu, Order List, Transaction Record, and Forum Record…etc.
Flow path • 1. Users register(input users’ information) • 2. Users login(input ID and password) • 3. Users order their meals(menu on website) • 4. Users check order list • 5.Users input name, phone number, and address • 6. Deliver to users’ houses and get money
Network interactive functions • 1. FAQ Area • 2. Forum • 3.Evaluation System
Benefit: • 1.reduce human cost • 2. reduce human error • 3. Improve the efficiency of ordering
Descript what the “IS”/IT in the real case is about? 951738 劉慧慈
What are the IS in this real case? • Broad-Vision online purchasing system • Siebel Systems sales force automation and order entry system • Lawson Software financial system • Catalyst Manufacturing Service inventory control and warehouse management system • Xelus product allocation, inventory management , and purchasing forecasting software • Database software form Sybase,Inc.
What the system do? Broad-Vision online purchasing system • E-catalog and search function • User-friendly click through process • Download spreadsheets of part lists from aviall.com for instant pricing • Instantly receive RFQs (Request For Quotes) infrequently • Certifications, warranty information, and MSDS
What the system do? Siebel Systems sales force automation • Customer relationship management (CRM) • Order processing • Information sharing • Inventory monitoring and control • Order tracking, customer management • Sales forecast analysis
What the system do? Siebel Systems order entry system • Customer relationship management (CRM) • Product catalog displayed both to the employee and customers • List of top 5 products displayed to the customers • Product information displayed for each product • Customer information displayed for each customer • Greeting message displayed to each user of the system • Shopping cart
What the system do? Lawson Software financial system • Enterprise Resource Planning (ERP) • Stores vendor and employee information • Information will be secured • Monitor key performance indicators • Easily create and manage multiple visual reports • Help validate and maintain employee data
Lawson and Siebel One of the most important connections would be between the Lawson software and the Siebel software, enabling a sales representative to assure a customer that an order could be fulfilled. The Siebel customer-service software would have to draw information on the prices and availability of parts from Lawson.
What the system do? Catalyst Manufacturing Service inventorycontrol and warehouse management system • Combines both flow-through functionality and traditional warehouse management features • Manages all aspects of the distribution center and manufacturing warehouse operations including receiving and put away to order selection, picking, loading and shipping. • Make Better Decisions
What the system do? Xelus product allocation,inventorymanagement, and purchasing forecasting software • Enterprise Service Management (ESM) • Maintain very minimal stocking levels • Multiple forecasting methods • All sales information can be easily downloaded to Excel • Make Better Decisions
Xelus and Catalyst The combination of Xelus and Catalyst made sure that the right parts got to the right customers at the right time. No empty boxes
What the system do? Sybase Database pioneer Sybase of Dublin, California, created software “adapters” that would let the different pieces of software swap data . Simply put, when two pieces of software call the same piece of data, an adapter figures out what has to be done. The adapter transfers that piece of data between the two programs, making sure it ends up in the right place. Then each program that receives it can process the data further.
Before Sybase Integration Limited Functionality AVIALL.COM Isolated Silos of Information Isolated data Separate customer database Human interaction between systems required CATALYST XELUS LAWSON Warehouse Mgmt General Ledger AR/AP HR/Payroll Order Entry Inventory Mgmt Inventory Control Purchasing/Forecasting
Core Systems Order Entry Sales Force Automation Sales Force Integration On Line Web Purchase Web Customer Services Web Supplier Services Business Process Improvement Real Time Integration Message Aggregation Exception Handling SIEBEL BROADVISION Current Development Current Development CATALYST XELUS LAWSON Inventory Control Warehouse Mgmt General Ledger AR/AP HR/Payroll Product Allocation Inventory Mgmt Purchasing/Forecasting
What are the advantages and disadvantages of the IS/IT? 951763 吳浩瑋
Online Purchasing System Advantage: • Convenient (Everywhere and anytime can buy anything) • Compare product price and features (It can compare each product in the system) • product variety (It have many product in the system) • Increases the efficiency 44
Online Purchasing System Disadvantage: • Privacy and security issues (Hacker maybe steal personal information) • Access to the Internet (The Internet is so important) 45
Sales Force Automation Advantage: • Increases the productive (It can help the order quickly) • Analyzing future sales patterns and behavior • Screening and control of inventory • Opportunity management (It can chose the best business chance) 46
Sales Force Automation Advantage: • The assistance Business agency locks the correct customer (It can chose the best customer) • Enhances the sales predict accurate (Avoid the unnecessary mistake) 47
Sales Force Automation Disadvantage: • To sales personals pressurize (It can know the sale’s everything by the system) • The system is expensive • Needs to maintain and to renew (Because the system’s information must be new) 48
Order Entry Software Advantage: • Increase sales force efficiency (It can help SFA deal with order quickly) • Avoid costly inventory shortages or overstocking (It can handle the stock) • Reduces the human error (People sometimes key error word) 49
Order Entry Software Disadvantage: • Security and privacy (Hacker maybe steal personal information) 50