FOUNDATIONS OF INFORMATION SYSTEMS T o p i c 6b BIS 1202 Chapter 6 Enterprise Applications
Dec 27, 2015
FOUNDATIONS OF INFORMATION SYSTEMS
Top
ic6b
BIS 1202
Chapter 6 Enterprise Applications
Support of:
Business processes and operations
Managerial decision making
Strategies for competitive advantage
Role of IS in the Enterprise
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Enterprise Applications
Enterprise Applications are systems that span functional areas, focus on executing business processes across the business firm, and include all levels of management.
Enterprise applications help businesses become more flexible and productive by coordinating their business processes more closely.
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Enterprise Applications
There are four major enterprise applications: Enterprise systems
Supply chain management systems
Customer relationship management systems
Knowledge management systems
Each of these enterprise applications integrates a related set of functions and business processes to enhance the performance of the organization as a whole.
Functional main-framed legacy systems
Integrated cross-functional client/server systems
Enterprise Resource Planning (ERP)Supply Chain Management (SCM)
Customer Relationship Management (CRM)
Enterprise Systems
Customer Relationship Management Marketing. Sales. Services
Supply Chain Management Sourcing. Procurement
Enterprise Resource Planning Internal business processes
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O’brien p 164
An IS that supports several areas of business, e.g. order handling, manufacturing, shipping, financing
Combines a number of applications with a single database
“An integrated set of programs that provides support for core organisational activities such as:
manufacturing and logistics, finance and accounting, sales and marketing, and human resources.”(Aladwani, 2001)
Enterprise Resource Planning (ERP)
What is an ERP /Enterprise systems ?
ERP Application in Comparison to separate functional applications
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Bocij, p678
Enterprise Resource Planning (ERP)
Acts as the backbone for the whole business help an organisation to:
assess the data it holds how that data can be better managed how to create better corporate intelligence what further data is needed
Aims to automate basic business processes - covers all routine transactions within a company including the internal suppliers and customers
Aims to increase efficiency in handling transactions, improve decision making, and (further) transform ways of doing business into e-commerce.
Enterprise Resource Planning (ERP)
Function
Challenges
Demands an unprecedented degree of teamwork, process expertise, and business knowledge
Getting their existing production data into the new system,
Enterprise Resource Planning (ERP)
Problems Cost, time, and effort Lack of alignment between technology and
business needs Difficulties implementing and upgrading
enterprise software Inability to support all business needs with
enterprise software
Enterprise Resource Planning (ERP)
Implementation Issues Building a supportive IT infrastructure Skill shortage Necessity to treat as a business project rather than
an IT project Extensive training The need to update -
Enterprise Resource Planning (ERP)
Benefits Reduced cost of buying from a single supplier Better transfer of information within the
organisation since all modules of the system are compatible
Support and maintenance through a single supplier
Use of ‘best-of-breed’ solutions applied by other companies
Enterprise Resource Planning (ERP)
Providers SAP AG - R/3 softwar PeopleSoft Inc. Baan Co. NV Oracle Corp J.D. Edwards & Co - Denver
(See www.cio.com/forums/erp/ ERP site at on-line Consultant Software at:
http://www.olcsoft.com/top%20ERP%20vendors.htmWikipedia gives a list
http://en.wikipedia.org/wiki/List_of_ERP_vendors User rankings of ERP systems, Data Research DPU for Evaluation of Information Technology at: http://www.dpu.se/rankmeny_e.html)
Enterprise Resource Planning (ERP)
What is a supply chain?“Describes the flow of material, information, money, services, from raw material suppliers through factories and ware houses to the end customer.”
(Turban et al., 2006:63)
SCM – planning, organising, and optimising one or more activities of the supply chain
Supply Chain Management (SCM)
Managing supply chains
ERP – Help manage both the internal and external relationships with the business partners
SCM – Help in decision making related to internal segments and their relationship with external segments
Supply Chain Management (SCM)
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Customer Relationship Management (CRM) (CRM) focus on coordinating the business
processes surrounding a firm's interactions with its customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention.
They consolidate customer data from multiple sources and communication channels to help firms identify profitable customers, acquire new customers, improve service and support, and target products and services more precisely to customer preferences
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Knowledge Management Systems The value of a firm's products and services is
based not only on its physical resources but also on intangible knowledge assets.
Some firms perform better than others because they have better knowledge about how to create, produce, and deliver products and services.
Knowledge management systems support processes for discovering and codifying, sharing, and distributing knowledge, as well as processes for creating new knowledge and integrating external sources of knowledge.
The next topic is
Strategic role IS
BIS1202