1 Chapter 7 Enterprise-Wide Information Systems Dr. Hassan Ismail Slides prepared based on Information Systems Today Leonard Jessup and Joseph Valacich.

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Chapter 7Chapter 7

Enterprise-WideEnterprise-WideInformation SystemsInformation Systems

Dr. Hassan IsmailDr. Hassan IsmailSlides prepared based on Information Systems Today

Leonard Jessup and Joseph Valacich

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Chapter 7 ObjectivesChapter 7 Objectives

Understand how information technology supports business activities

Understand enterprise systems and how they evolved

Understand software applications that are internally or externally focused

Understand how to implement enterprise systems

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Enterprise SystemsEnterprise Systems

Allow companies to integrate information across operations on a company-wide basis

The Internet has helped create the globalization

New business needs/expectations: Customer service management Supply chain management

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Support business activitiesSupport business activities

Increase competitive advantage by streamlining business activities

Inter-organizational systems (IoS) Electronic transmission of information to another

company

Order EntryOrder Entry FulfillmentFulfillment ShippingShipping

OrderPacking

ListInvoice

Info

rmati

on

Busi

ness

Act

ivit

y Information Flow for a typical OrderInformation Flow for a typical Order

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Support business activitiesSupport business activities

ShippingShipping ReceivingReceiving

Invoice Inventory

Customer Business Activity

Supplier Business Activity

Information Flow for a typical shipment across organizational Information Flow for a typical shipment across organizational boundariesboundaries

Supplier Customer

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Internally Focused ApplicationsInternally Focused Applications

Value chain – the set of business activities

Primary activities: Inbound logistics Operations and manufacturing Outbound logistics Marketing and sales Customer service

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Internally Focused ApplicationsInternally Focused Applications

Support activities:InfrastructureHuman resourcesTechnology developmentProcurement

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External Focused ApplicationsExternal Focused Applications

Integrate internal applications with those outside: suppliers, partners, customers

Upstream information Information received from another

organization Downstream information

Information sent to another organization

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Types of Enterprise SystemsTypes of Enterprise Systems

Packaged applications Custom applications Stand-alone applications

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Legacy SystemsLegacy Systems

Older systemsTend to be infrastructure-specificUsually linked to a specific

business needNot integrated

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ERP- Enterprise Resource PlanningERP- Enterprise Resource Planning

Integrated applications ERP systems

Baan Oracle PeopleSoft SAP J.D. Edwards

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ERP-ImplementationERP-Implementation

Modules “Vanilla” version Customizations Best practices Business process reengineering

(BPR)

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Customer Relationship Management –Customer Relationship Management –CRMCRM

Sales Force Automation (SFA) New opportunities for competitive

advantage Examples:

MGM American Airlines Marriott International

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Supply Chain Management (SCM)Supply Chain Management (SCM)

Supply chain – the producers of supplies that a company uses

Supply network What if supply chain does not collaborate? Two objectives of upstream information flow:

Accelerate product development Reduce costs associated with suppliers

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The Formula for Enterprise System Success

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

implementation