“ENTERPRISE-WIDE INFORMATION SYSTEMS”

1. “ENTERPRISE-WIDE INFORMATION SYSTEMS” BY SUMANA SHARMA

2. SALES DATA FOR THE YRS 99-03

3. HOW DOES THE SALES EXECUTIVE FURNISH THE REQUESTED INFORMATION? Feeds data into Microsoft Excel SOFTWARE sitting on HARDWARE Sales exec. Collects data S/W processes data Information (bar charts) Boss Sent using COMMUNICATION LINKS

4. ENTITIES THAT MAKE UP THE IS PEOPLE Information System DATA COMMUNICATION LINKS SOFTWARE HARDWARE

5. 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.

6. … 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)

7. MAIN GOAL OF ES: SUPPORT BUSINESS ACTIVITIES Types of Business activities INTERNALLY FOCUSED EXTERNALLY FOCUSED

8. INFORMATION FLOW WITHIN THE COMPANY Business activity Shipping Order entry Fulfillment Order Packing list Invoice Information OUT

9. INFORMATION FLOW ACROSS THE ORGANIZATION Customer business activity Supplier business activity Receiving Shipping Inventory Invoice Internal info From customers External info From suppliers

10. 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

11. VALUE CHAIN FRAMEWORK

12. SUPPORT ACTIVITIES • Infrastructure • Human resources • Technology development • Procurement

13. EXTERNALLY FOCUSSED APPLICATIONS INFORMATION FLOW • Downstream • From us to an outside organization! • Upstream • From an outside organization to us!

14. 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 TYPES OF ENTERPRISE SYSTEMS

15. HOW ENTRPRISE SYSTEMS EVOLVED Internally focused Legacy systems Enterprise Resource Planning system (ERP) Customer relationship Management (CRM) Supply Chain Management (SCM) Externally focused

16. 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.

17. INFORMATION FLOW IN LEGACY SYSTEMS Business activity Inbound Logistics Operations Outbound Logistics Inventory Order Invoice Information

18. 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!

19. INFORMATION STORAGE IN ERP SYSTEMS Operations Outbound Logistics Inbound Logistics Data Warehouse Order Invoice Inventory

20. TOP 4 ERP VENDORS

21. 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.

22. BUSINESS PROCESS REENGINEERING (BPR) Altering the way business processes have been conducted, according to industry’s Best Practices!

23. 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

24. CRM VENDORSIN THE ENTERPRISE SEGMENT Challengers Leaders Ability To execute Niche players Visionaries Completeness of vision Source: Gartner research (Jan 2004)

25. SUPPLY CHAIN MANAGEMENT(SCM) • Supply chain – consists of producers of supplies,that a company uses. • Supply network. Supplier’s supplier Supplier Supplier’s supplier COMPANY Supplier’s supplier Supplier Supplier’s supplier

26. 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.

27. 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

28. FORMULA FOR ENTERPRISE SYSTEM SUCCESS • Secure executive sponsorship • Get Help from outside experts. • Thoroughly train users • Take a multidisciplinary approach to implementation.

29. THANK YOU!! sharma_sumana@yahoo.com