“ENTERPRISE-WIDE INFORMATION SYSTEMS” BY SUMANA SHARMA
SALES DATA FOR THE YRS 99 -03 Product 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? Sales exec. Collects data Feeds data into Microsoft Excel SOFTWARE sitting on HARDWARE S/W processes data Information (bar charts) Boss Sent using COMMUNICATION LINKS
ENTITIES THAT MAKE UP THE IS PEOPLE COMMUNICATION Information System LINKS HARDWARE SOFTWARE 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 q ES are Information systems that allow companies to integrate information across different departments on a company wide basis. q 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 Business activity Order entry Order Fulfillment Shipping Packing list Invoice Information OUT
INFORMATION FLOW ACROSS THE ORGANIZATION Customer business activity Supplier business activity Shipping Invoice External info From suppliers Receiving Inventory Internal info From customers
INTERNALLY FOCUSSED APPLICATIONS VALUE CHAIN Flow of information through a set of business activities. At each node, some value is added. q PRIMARY ACTIVITIES è Inbound logistics è Operations & Manufacturing è Outbound logistics è Marketing and Sales è Customer service q
VALUE CHAIN FRAMEWORK
SUPPORT ACTIVITIES n Infrastructure n Human resources n Technology development n Procurement
EXTERNALLY FOCUSSED APPLICATIONS INFORMATION FLOW Upstream Downstream #From an outside organization to us! #From us to an outside organization!
TYPES OF ENTERPRISE SYSTEMS Packaged ü Bought from third party vendor. ü Can be quite cost effective. ü Vendor is responsible for making changes, distributing new versions, etc n Custom ü Developed by company personnel ü Is a costly venture ü Company is responsible for making changes and for maintenance n
HOW ENTRPRISE SYSTEMS EVOLVED Internally focused Legacy systems Enterprise Resource Planning system (ERP) Supply Chain Management (SCM) Customer relationship Management (CRM) Externally focused
LEGACY SYSTEMS Each department was like a water tight compartment. ì Each had its own set of applications. ì Applications were infrastructure specific. ì Process of Information exchange was too complicated. ì Inherent delay and data inconsistency prevailed all over the organization. ì
INFORMATION FLOW IN LEGACY SYSTEMS Business activity Inbound Logistics Operations Outbound Logistics Inventory Order Invoice Information
ENTERPRISE RESOURCE PLANNING Information stored on legacy systems is converted to a centralized data repositorydata warehouse. n You don’t need to call up the other department to fetch data. It can be directly accessed from the data warehouse. n Eliminates data inconsistency issues. n High overall efficiency! n
INFORMATION STORAGE IN ERP SYSTEMS Inbound Logistics Data Operations Order Invoice Warehouse Inventory Outbound Logistics
TOP 4 ERP VENDORS VENDOR PRODUCT SAP R/3 Peoplesoft (**JD Edwards is now part of Peoplesoft) Peoplesoft §Enterprise. One §World 15% Oracle EBusiness suite SSA BAAN 10% BAAN MARKET SHARE 36% 5%
FACTORS TO CONSIDER BEFORE SELECTING AN ERP PACKAGE n # # n # 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) ü Presales marketing and sales. CRM (Customer Relationship Management) ü Post sales support
CRM VENDORS IN THE ENTERPRISE SEGMENT Challengers Leaders *SIEBEL Ability To execute *SAP *Oracle *Peoplesoft *Onyx software Niche players Visionaries Completeness of vision Source: Gartner research (Jan 2004)
SUPPLY CHAIN MANAGEMENT(SCM) Supply chain – consists of producers of supplies, that a company uses. Supplier’s n Supply network. supplier n Supplier COMPANY Supplier’s supplier
HOW DOES SCM HELP AN ORGANIZATION? Streamlines upstream information flow. n Two main goals are: ü Accelerate product development ü Reduce costs related to procurement of raw materials, components or services from suppliers. n
SCM VENDORS SCM software market is highly fragmented. n Some leading SAP vendors include i 2 technologies, Worldchain, Manugistics, Ariba etc. n SAP, BAAN, and Oracle offer SCM solutions integrated with their ERP package n
FORMULA FOR ENTERPRISE SYSTEM SUCCESS Secure executive sponsorship n Get Help from outside experts. n Thoroughly train users n Take a multidisciplinary approach to implementation. n
THANK YOU!! sharma_sumana@yahoo. com
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