Ch.10 Enterprise Information Systems Lecture 8. They integrate the functional systems such as finance, marketing, and operations. Key types of enterprise.

Ch.10 Enterprise Information Systems

Lecture 8

They integrate the functional systems such as finance, marketing, and operations.

Key types of enterprise systems ERP: Enterprise Resource PlanningSCM: Supply Chain ManagementCRM: Customer Relationship ManagementKM: Knowledge Management

10-2

10.1 Enterprise Systems

Why ERP?

10.2 Enterprise Resource Planning (ERP) Systems

• ERP: infrastructure that links an enterprise’s internal applications and supports its external business processes, e.g., Under Armour

• Managers can stay informed of what’s going on in other departments that impact their operations or performance.

• ERP can create a competitive edge

10-5

10-6

Figure 10.5 Experts identify what’s most important to the success of an ERP

Managing the Flow of Materials, Data, and Money

• Material or product flow: For example, chipmaker Intel supplies computer chips to its customer Dell. Dell supplies its computers to end-users. Products that are returned make up what is called the reverse supply chain because goods are moving in the reverse direction.

• Information flow: Movement of detailed data among members of the supply chain, e.g., order information, customer information, order fulfillment, delivery status, and proof-of-delivery confirmation.

• Financial flow: Transfer of payments and financial arrangements, e.g., billing payment schedules, credit terms, and payment via electronic funds transfer (EFT).

10-7

10.3 Supply Chain Management (SCM) Systems

SCM & ERP

10.5 Customer Relationship Management (CRM) Systems

• According to management guru Peter Drucker: Those companies who know their customers, understand their needs, and communicate intelligently with them will always have a competitive advantage over those that don’t.

10-10

IT at Work 10.41-800-Flowers.com Uses Data Mining for CRM

• The company decided to cultivate brand loyalty.

• Using SAS Enterprise Miner, 1-800-FLOWERS.COM sifts through data (such as historical purchases) to discover trends, explain outcomes, and predict results so that the company can increase response rates and identify profitable customers.

• Collecting data at all customer contact points, the company turns those data into knowledge for understanding and anticipating customer behavior, meeting customer needs, and building more profitable customer relationships.

10-11

12

1). Explicit knowledge

• Explicit knowledge (or leaky knowledge) deals with objective, rational, and technical knowledge– Data– Policies– Procedures– Software– Documents– Products– Strategies– Goals– Mission– Core competencies

Explicit knowledge has been codified (documented) in a form that can be distributed to others or transformed into a process or strategy without requiring interpersonal interaction.

The more that knowledge is made explicit, the more economically The more that knowledge is made explicit, the more economically it can be transferred.it can be transferred.

10.6 Knowledge Management (KM) Systems

Knowledge has two types

13

2). Tacit knowledge

• Tacit knowledge is the cumulative store – of the corporate experiences– Mental maps– Insights– Acumen– Expertise– Know-how– Trade secrets– Skill sets– Learning of an organization – The organizational culture

Tacit knowledge is usually in the domain of subjective, cognitive, and experiential learning; it is highly personal and difficult to formalize. It is also referred to as embedded knowledge since it is usually either localized within the brain of an individual or embedded in the group interactions within a department or business unit.

Tacit knowledge is generally slow and costly to transfer and can Tacit knowledge is generally slow and costly to transfer and can be plagued by ambiguity.be plagued by ambiguity.

10-14

Create

Capture

Refine

Store

KNOWLEDGE

Manage

Disseminate

Figure 10.12 KM Systems Cycle

1. Create knowledge. Knowledge is created as people learn new ways of doing things

2. Capture knowledge. New knowledge is represented in a reasonable way3. Refine knowledge. New knowledge is put into context4. Store knowledge. Useful knowledge is stored so that others can access it5. Manage knowledge. Knowledge must be kept current and accurate6. Disseminate knowledge. Knowledge must be made available