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Chapter 7. Organizations and Information Systems. Study Questions. Q1: How do information systems vary by scope? Q2: How do enterprise IS solve the problems of departmental silos? Q3: What are the differences among CRM, ERP, SCM and EAI systems?

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organizations and information systems

Chapter 7

Organizations and Information Systems

study questions
Study Questions

Q1: How do information systems vary by scope?

Q2: How do enterprise IS solve the problems of departmental silos?

Q3: What are the differences among CRM, ERP, SCM and EAI systems?

Q4: How do inter-enterprise IS solve the problems of enterprise silos?

q2 how do enterprise is solve the problems of departmental silos
Q2: How Do Enterprise IS Solve the Problems Of Departmental Silos?

An information silo is a management system incapable of reciprocal operation with other, related management systems.

how do enterprise information systems eliminate silos
How Do Enterprise Information Systems Eliminate Silos?

Fox Lake Country Club

Enterprise Reservation


what problems do information silos cause
What Problems Do Information Silos Cause?

Some of Departments Involved in Patient Discharge

business process reengineering bpr
Business Process Reengineering (BPR)

“Analysis and design of workflows and processes within an organization” (

Identify Processes

Review, Update, Analyze As-Is

Enterprise systems not feasible until network, data communication, and database technologies reached sufficient level of capability and maturity in late 1980s and early 1990s.

Test and Implement To-Be

Design To-Be

business process reengineering bpr cont d
Business Process Reengineering (BPR) (cont’d)

Altering and designing business processes to take advantage to enable creation of stronger, faster, more effective linkages among value chains

BPR is difficult, slow, and exceedingly expensive

Systems analysts need to interview key personnel throughout organization to determine how best to use new technology

BPR requires high-level and expensive skills and considerable time

q3 how do crm erp and eai support enterprise systems
Q3: How Do CRM, ERP, and EAI Support Enterprise Systems?

Help organizations fundamentally rethink how they do work to dramatically improve customer service, cut operational costs, and become world-class competitors

Inherent processes save money and time in business process reengineering (“industry best practices”)

Eliminate costs of developing complex applications in-house

Enterprise Application Integration (EAI)


PeopleSoft—licensed payroll and limited capability HRM systems, administration to large orgs.

Siebel—licensed sales lead tracking and management system (acquired by Oracle)

SAP—licensed enterprise resource management for midsize and large organizations in all industries and sectors (Oracle, SAGE, Microsoft)

sales lead: the identification of a person or entity that has the interest and authority to purchase a product or service.

customer relationship management crm
Customer Relationship Management (CRM)

A suite of applications, a database, and a set of inherent processes for managing all interactions (Vendors: SAP, Oracle,, Microsoft)

  • through four phases of customer life cycle:
  • Marketing, customer acquisition, relationship management, loss/churn

to support customer-centric organization

lead generation: to generate consumer interest or inquiry into products or services of a business

enterprise resource planning erp
Enterprise Resource Planning (ERP)

Suite of applications, database, and set of inherent processes for consolidating business operations into single, consistent, computing platform

enterprise application integration eai
Enterprise Application Integration (EAI)

Suite of software to integrate existing applications together

Connects system “islands” via new software layer

Enables existing applications to communicate and share data

Provides integrated information

Leverages existing systems—leaving functional applications as is, but providing integration top layer

Enables a gradual move to ERP

eai automatically makes data conversions among different systems
EAI Automatically Makes Data Conversions Among Different Systems

Virtual Integrated Database

MRP – Manufacturing Resource Planning

Metadata - The design and specification of data structures

supply chain management systems scm
Supply Chain Management Systems (SCM)
  • Manage firm’s order-related information from supply of raw materials to delivery of finished products.
  • Share information about
    • Orders, production, inventory levels, delivery of products and services
  • Goal: Right volume of products to destination with least amount of time and lowest cost
example of a supply chain management system
Example of a Supply Chain Management System

Customer orders, shipping notifications, optimized shipping plans, and other supply chain information flow among Haworth’s Warehouse Management System (WMS), Transportation Management System (TMS), and its back-end corporate systems.

q5 what are the challenges when implementing new enterprise systems
Q5: What Are the Challenges When Implementing New Enterprise Systems?

Employee Resistance

  • Challenges
  • Difficulty
  • Expense
  • Risk

Requirements Gaps

Transition Problems

Collaborative Management


Collaborative Management

  • No single manager in charge
  • Committees and steering groups

Requirements Gaps

  • Licensed products are never perfect fit
  • Features and functions of complex products makes identifying gaps difficult
  • Deciding what to do with gaps. Adapt to application or change application?
challenges cont d
Challenges (cont’d)

Transition problems

  • Careful planning and substantial training critical
  • Change requires effort and creates fear
  • Senior level management must communicate need for change to organization, and must re-iterate
  • Train key users ahead of time to create positive buzz about new system
  • Video demonstrations of employees successfully using new system
  • Encourage change with extra inducements

Employee resistance