“ENTERPRISE-WIDE INFORMATION SYSTEMS”

“ENTERPRISE-WIDE INFORMATION SYSTEMS”

BY

SUMANA SHARMA

SALES DATA FOR THE YRS 99-03Product 99 00 01 02 03

A 9198 8362 5197 8600 9300

B 9291 7854 8600 8966 9197

C 6800 9277 9366 9600 9433

D 7816 9297 9369 9016 9020

E 9189 6800 6777 7235 7600

F 7218 4300 5689 4395 7281

HOW DOES THE SALES EXECUTIVE FURNISH THE

REQUESTED INFORMATION?

Feeds data into Microsoft Excel

SOFTWARE sitting

on HARDWARE

Sales exec. Collects

data

Information (bar charts)

S/W processes data

BossSent using COMMUNICATION LINKS

ENTITIES THAT MAKE UP THE IS

InformationSystem

PEOPLE

COMMUNICATION

LINKS

SOFTWAREHARDWARE

DATA

BEFORE ENTERPRISE SYSTEMS WERE BORN…

Different departments ran different applications on different computing platforms, using different hardware and different software.

Difficult to integrate information from different departments.

Different departments held different versions of the same data.

… AND THUS ENTERPRISE SYSTEMS WERE BORN

ES are Information systems that allow companies to integrate information across different departments on a company wide basis.

Provide an exhaustive central database common to all users (within different departments)

MAIN GOAL OF ES: SUPPORT BUSINESS ACTIVITIES

Types of Business activities

INTERNALLY FOCUSED

EXTERNALLY FOCUSED

INFORMATION FLOW WITHIN THE COMPANY

Order entry Fulfillment Shipping

OrderOrder

InvoiceInvoice

Business activity

Information

Packing

list

OUT

INFORMATION FLOW ACROSS THE ORGANIZATION

Shipping Receiving

InvoiceInvoiceInventoryInventory

Supplier business activity

Customer business activity

Internal infoFrom customers

Internal infoFrom customers

External infoFrom suppliers

External infoFrom suppliers

INTERNALLY FOCUSSED APPLICATIONS

VALUE CHAIN Flow of information through a set of business activities.

At each node, some value is added.

PRIMARY ACTIVITIES Inbound logistics Operations & Manufacturing Outbound logistics Marketing and Sales Customer service

VALUE CHAIN FRAMEWORK

SUPPORT ACTIVITIES

Infrastructure Human resources Technology development Procurement

EXTERNALLY FOCUSSED APPLICATIONS

INFORMATION FLOW

Upstream

#From an outside organization to us!

Downstream

#From us to an outside organization!

TYPES OF ENTERPRISE SYSTEMS

Packaged Bought from third

party vendor. Can be quite cost

effective. Vendor is

responsible for making changes, distributing new versions, etc

Custom Developed by

company personnel

Is a costly venture Company is

responsible for making changes and for maintenance

HOW ENTRPRISE SYSTEMS EVOLVED

Legacy systems

Customer relationshipManagement (CRM)

Supply ChainManagement (SCM)

Enterprise ResourcePlanning system (ERP)

Internally focused

Externally focused

LEGACY SYSTEMS Each department was like a water tight

compartment. Each had its own set of applications. Applications were infrastructure specific. Process of Information exchange was too

complicated. Inherent delay and data inconsistency

prevailed all over the organization.

INFORMATION FLOW IN LEGACY SYSTEMS

Inbound Logistics

OperationsOutboundLogistics

InventoryInventory OrderOrder InvoiceInvoice

Business activity

Information

ENTERPRISE RESOURCE PLANNING

Information stored on legacy systems is converted to a centralized data repository-data warehouse.

You don’t need to call up the other department to fetch data. It can be directly accessed from the data warehouse.

Eliminates data inconsistency issues. High overall efficiency!

INFORMATION STORAGE IN ERP SYSTEMS

Inbound Logistics

OperationsOutboundLogistics

OrderOrder InvoiceInvoice

InventoryInventory

Data

Warehouse

TOP 4 ERP VENDORS VENDOR PRODUCT MARKET

SHARE

SAP SAP R/3 36%

Peoplesoft

(**JD Edwards is now part of Peoplesoft)

PeoplesoftEnterprise

EnterpriseOneWorld

15%

Oracle Oracle E-Business suite

10%

BAAN SSA BAAN 5%

FACTORS TO CONSIDER BEFORE SELECTING AN ERP PACKAGE

CONTROL# Extent of information available at each

level# Corporate level/Business unit level

policies. BUSINESS REQUIREMENTS # Vanilla or custom? BEST PRACTICES# Industry standard business processes.

BUSINESS PROCESS REENGINEERING (BPR)

Altering the way business processes have been conducted, according to industry’s Best Practices!

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

CRM packages typically comprise of two applications;

SFA (Sales Force Automation) Presales marketing and sales.

CRM (Customer Relationship Management)

Post sales support

CRM VENDORSIN THE ENTERPRISE SEGMENT

*SAP

*Oracle

*SIEBEL

*Peoplesoft

*Onyx software

Challengers Leaders

VisionariesCompleteness of vision

Ability

To

execute

Niche players

Source: Gartner research (Jan 2004)

SUPPLY CHAIN MANAGEMENT(SCM)

Supply chain – consists of producers of supplies,that a company uses.

Supply network.

Supplier

Supplier

COMPANYCOMPANY

Supplier’s supplier

Supplier’s supplier

Supplier’s supplier

Supplier’s supplier

HOW DOES SCM HELP AN ORGANIZATION?

Streamlines upstream information flow. Two main goals are: Accelerate product development Reduce costs related to procurement of

raw materials,components or services from suppliers.

SCM VENDORS

SCM software market is highly highly fragmented.

Some leading SAP vendors include i2 technologies, Worldchain, Manugistics, Ariba etc.

SAP, BAAN, and Oracle offer SCM solutions integrated with their ERP package

FORMULA FOR ENTERPRISE SYSTEM SUCCESS

Secure executive sponsorship Get Help from outside experts. Thoroughly train users Take a multidisciplinary approach to

implementation.

THANK YOU!!

sharma_sumana@yahoo.com