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Enterprise Information Systems

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Enterprise Resource Planning (ERP) Supply Chain Management (SCM) ... Enterprise Management. Portion of the SAP New Car Sales Process ... – PowerPoint PPT presentation

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Title: Enterprise Information Systems


1
Enterprise Information Systems
2
Functional View of Organizations
3
Silo Information Systems
4
Business Process Definition
  • A logical set of related activities taking
    inputs, adding value through doing things, and
    creating an output
  • Any set of activities performed by a business
    that is initiated by an event, transforms
    information, materials or business commitments,
    and produces an output.

5
Supply Chain Process
6
Organizational Value Chains
Organization likely to have multiple value chains
that cut across functional areas. For example, a
bank has residential and commercial loans, each
treated as separate products (value chains) and
each is processed by multiple groups within the
bank.
7
Business Process View of Organizations
Business processes cut across functional
areas. Each functional group has its own
information systemswhich are often not
integratedwith those of other functionalgroups.

What problems does this create?
8
Problems with Silo based IS
  • Multiple databases, so you may have inconsistent
    data and data often must be entered multiple
    times.
  • Workflow often involves paper documents and
    inefficiencies such as queuing delays, lost
    documents, etc. often result.
  • Processes may be optimized within functional
    areas but remain suboptimal overall.
  • Information difficult to retrieve and aggregate
    by upper management.

9
Enterprise Information Systems (ES)
  • Information technologies that are deployed across
    multiple organizational groups and specify entire
    business processes
  • Types of ESs
  • Enterprise Resource Planning (ERP)
  • Supply Chain Management (SCM)
  • Customer Resource Management (CRM)
  • e-Procurement
  • e-Marketplace

10
ESs use Best Practices to Implement Business
Processes
  • ERP vendors work with experts from various
    industries to define best practices for that
    industry
  • They then create a Business Architecture for the
    industry and define various processes which are
    embodied in the software

11
Portion of SAP Telecommunications Business
Architecture
12
Portion of the SAP New Car Sales Process
13
Business Processes and SAP Modules
14
Data Integration
15
IT Investments can be Problematic
  • 50 of IT initiatives are abandoned altogether
  • Another 40 are delivered late and over budget
  • 70 failure rates among IT-based change
    initiatives
  • 30-60 failure rates among general efforts to
    improve work processes
  • Only about 30 of all projects are considered by
    their sponsors to fully successful

16
ES Implementation
  • Implementing ESs pose greater challenges to
    managers than other projects

Why?
17
Challenges of ES
  • More groups involved so political issues are more
    important
  • Entire processes are impacted so risks are high
  • Changes embedded in the system are difficult to
    revisit so development choices must be made
    correctly the first time

18
ES Implementation
  • Riskiest type of IT investment
  • Because scope is so large, ES projects often
    effect the careers of the major players and can
    impact the viability of the organization
  • 50 of all corporate IT investment
  • Potential reward is high
  • ESs can have significant performance improvements
    and can positively affect company valuation

19
Number one reason for failure
Managerial Factors!
20
Outline for Semester
  • Introduction to SAP
  • Initial use of SAP
  • Business Process Mapping
  • Mapping business processes
  • SAP exercises
  • SAP system landscape
  • Implementing ERP
  • Simulation
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