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Week 7: Enterprise Information Systems

Week 7: Enterprise Information Systems. MIS 2101: Management Information Systems Douglas M. Schutz. Based on material from Information Systems Today: Managing in the Digital World , Leonard Jessup and Joseph Valacich , Pearson Prentice Hall, 2007

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Week 7: Enterprise Information Systems

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  1. Week 7: Enterprise Information Systems MIS 2101: Management Information Systems Douglas M. Schutz Based on material from Information Systems Today: Managing in the Digital World, Leonard Jessup and Joseph Valacich, Pearson Prentice Hall, 2007 Also includes material by David Schuff, Paul Weinberg, Cindy Joy Marselis, Munir Mandviwalla, and Mart Doyle.

  2. Learning Objectives • Describe what enterprise systems are and how they have evolved. • Describe enterprise resource planning systems and how they help to improve internal business processes. • Describe customer relationship management systems and how they help to improve downstream business processes. • Describe supply chain management systems and how they help to improve upstream business processes. • Understand and utilize the keys to successfully implementing enterprise systems.

  3. Legacy System Approach

  4. Legacy Systems Problem: Information systems growing over time Lack of integration in existing systems Different computing platforms Difficult to integrate Data must be reentered from one system to another Same pieces of data stored in several versions

  5. Enterprise System Approach Integrated Database

  6. Internally Focused Systems

  7. Externally Focused Systems

  8. Internally Focused Systems: Value Chain

  9. The Complete Picture

  10. Learning Objectives • Describe what enterprise systems are and how they have evolved. • Describe enterprise resource planning systems and how they help to improve internal business processes. • Describe customer relationship management systems and how they help to improve downstream business processes. • Describe supply chain management systems and how they help to improve upstream business processes. • Understand and utilize the keys to successfully implementing enterprise systems.

  11. What is Enterprise Resource Planning (ERP)?

  12. Enterprise Resource Planning • “Ground up” integration of business processes • A single application ties together multiple business functions • Accounting, Purchasing, HR, etc. • Applies “best practices” to these processes

  13. FI Financial Accounting SD Sales & Distribution MM Materials Mgmt CO Controlling PP Production Planning AM Assets Mgmt R/3 Client / Server PS Project System QM Quality Mgmt PM Plant Main- tenance WF Workflow HR Human Resource IS Industry Solutions SAP R/3 Enterprise

  14. Configuration • Configuration is the process of making standard software fit a specific business. • Vanilla version • Customization

  15. Data Types • Master Data • Data that is relatively stable • Materials, Customers, Vendors • Transaction Data • Data that is relatively temporary • Stored at various stages of a business process • Customer orders, purchase orders, production orders, customer payments

  16. Configuration is notoriously difficult Implementations are notoriously complex Why would a company want to do this? Who might resist? Why? ERP Challenges

  17. Enterprise Resource Planning • Large ERP vendors include • SAP • Oracle

  18. Top Line Versus Bottom Line Where do Enterprise Systems add value?

  19. Learning Objectives • Describe what enterprise systems are and how they have evolved. • Describe enterprise resource planning systems and how they help to improve internal business processes. • Describe customer relationship management systems and how they help to improve downstream business processes. • Describe supply chain management systems and how they help to improve downstream business processes. • Understand and utilize the keys to successfully implementing enterprise systems.

  20. Question? Forget about MIS and technology and computer systems…as a business professional, what do you think about when it comes to attracting and retaining the most profitable customers? What information do you need to do these things?

  21. Customer Relationship Management

  22. Customer Relationship Management • CRM overview

  23. Successful CRM Strategy

  24. Comprehensive CRM

  25. Operational CRM Order Processing & Tracking Contact Development, Assignment, & Management Customer History, Preferences, and Management Sales Forecasting and Performance Analysis Sales Administration Automate service requests, complaints, product returns, and information requests Comprehensive view of the competitive environment Including competitors, industry trends, and environmental Factors.

  26. CRM Supports Three Major Functions

  27. CRM – GoldMine • One oftheleadingproducts

  28. CRM – Management Issues What are possible challenges for CRM in these areas? • Data Sharing and Data Ownership • Technology Issues

  29. Top Line Versus Bottom Line Where do CRM Systems add value?

  30. Learning Objectives • Describe what enterprise systems are and how they have evolved. • Describe enterprise resource planning systems and how they help to improve internal business processes. • Describe customer relationship management systems and how they help to improve downstream business processes. • Describe supply chain management systems and how they help to improve upstream business processes. • Understand and utilize the keys to successfully implementing enterprise systems.

  31. Supply Chain Management • What is “Supply Chain Management” all about and how do “Supply Chain Management Systems” create value?

  32. Top Line Versus Bottom Line Enterprise systems targeted the bottom line. CRM systems targeted the top line. Where do SCM systems add value?

  33. Supply Chain Management • Wal-Mart and Procter & Gamble (P&G) SCM

  34. SCM & Porter’s 5 Forces Can partnerships and investments in your supply chain give you a competitive advantage?

  35. SCM Architecture SCM modules support two functions Supply chain planning Supply chain execution

  36. Tightly Integrated SCM vs. Portals Dell with Many Customers Big 3 with Many Suppliers Elemica

  37. Example: Distribution Portal Automation of business processes between supplier and multiple customers Before transaction During transaction After transaction Customers can manage all phases of the purchasing cycle!

  38. Example: Procurement Portal Automation of business processes between a buyer and multiple suppliers

  39. Radio Frequency Identification What is RFID? Who is using it? How is it creating value?

  40. The Big Picture

  41. Top Line Versus Bottom Line Where do SCM systems add value?

  42. Learning Objectives • Describe what enterprise systems are and how they have evolved. • Describe enterprise resource planning systems and how they help to improve internal business processes. • Describe customer relationship management systems and how they help to improve downstream business processes. • Describe supply chain management systems and how they help to improve upstream business processes. • Understand and utilize the keys to successfully implementing enterprise systems.

  43. The Formula for Enterprise System Success Secure executive sponsorship Get help from outside experts Thoroughly train users Take a multidisciplinary approach to implementations

  44. The SAP Assignment: Getting Started

  45. Step #1 • Work in Teams of 2, One Deliverable/Team • SAP Helpdesk Site – Tips and Tutor Contact • http://community.mis.temple.edu/sapsupport/ • Saraya Hyder and other TAs available to assist M-F: • http://community.mis.temple.edu/sapsupport/ita-contact-information/ • Let Saraya or other TAs know 24 hours in advance if you would like to meet (posted times are tentative) • Contact by email: SHyder@temple.edu • or mobile: 516 – 967 – 9923 • or stop by her office in Gladfelter 421

  46. Database and Application Server SAP vs. MS Office Nothing is saved on your PC --- only the SAP server.

  47. The SAP assignment • In SAP, there are very few delete options: • When you do the assignment, don’t save if things don’t look 100% correct! Exit the transaction and start over

  48. The SAP assignment: Data Set Number (##) • I am data set number 00, not you! • Make sure you use your number when you see ## in the exercises Enter Cred. Contr. area ##CR and Currency USD

  49. The SAP Assignment: Logging On • To log on to SAP, you need the proprietary SAP GUI (Graphical User Interface) client software loaded on your system and an Internet connection Internet Connection Account on SAP R/3 System in Missouri PC with SAP GUI client

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