SIA101-Lesson1-Introduction to Enterprise Systems for Management PDF

LESSON 1 : INTRODUCTION TO ENTERPRISE SYSTEMS FOR MANAGEMENT INSTRUCTOR: S.M. SAGA LEARNING OBJECTIVES Understand the information systems evolution and its historical role in organizations leading to systems integration and eventually Enterprise Resource Planning (ERP). Learn about ERP systems...

LESSON 1 : INTRODUCTION TO ENTERPRISE SYSTEMS FOR MANAGEMENT INSTRUCTOR: S.M. SAGA LEARNING OBJECTIVES Understand the information systems evolution and its historical role in organizations leading to systems integration and eventually Enterprise Resource Planning (ERP). Learn about ERP systems and their evolution, components, and architecture. Understand the benefits and drawbacks of implementing ERP systems and how they can help an organization improve its efficiency and worker productivity. LEARNING OBJECTIVES Have an overview of the implementation process (e.g., the ERP life cycle, business process reengineering, project management, and change management). Understand the role of staff, vendors, consultants, and the organization in making the ERP implementation process successful. Comprehend the ethical, global, and security challenges while implementing an ERP system as well as get an overview of ERP vendors and industry trends. ENTERPRISE SYSTEMS IN ORGANIZATIONS ENTERPRISE RESOURCE PLANNING SYSTEMS  Enterprise Resource Planning Systems ERP SYSTEMS are the specific kind of enterprise systems to integrate data across and be comprehensive in supporting all the major functions of the organization are basically integrated information systems that support such enterprise functions as accounting, financial, marketing, and production requirements of organizations are comprehensive software applications that support critical organizational functions acts as a central repository eliminating data redundancy and adding flexibility ERP Systems Goals to make information flow be both dynamic and immediate, therefore increasing the usefulness and value of the information to integrate departments and functions across an organization onto a single infrastructure that serves the needs of each department Reasons why companies choose to implement ERP: acts as a central repository eliminating data redundancy and adding flexibility increase customer access to products and services reduce operating costs respond more rapidly to a changing marketplace extract business intelligence from the data ERP SYSTEM COMPONENTS  ERP SYSTEM ARCHITECTURE ERP System Architecture is a blueprint of the actual ERP system. 2 Types of Architecture: 1. Logical - works to assist in implementing the organization’s vision and business processes. 2. Physical - highlights how the data, application logic, and presentations are integrated and installed in the IT environment. ERP SYSTEM ARCHITECTURE  SYSTEM BENEFITS OF ERP Integration of data and applications across functional areas of the organization (i.e., data can be entered once and used by all applications in the organization, improving accuracy and quality of the data). Maintenance and support of the system improves as the IT staff is centralized and is trained to support the needs of users across the organization.  SYSTEM BENEFITS OF ERP Consistency of the user interface across various applications means less employee training, better productivity, and cross- functional job movements. Security of data and applications is enhanced due to better controls and centralization of hardware, software, and network facilities.  SYSTEM LIMITATIONS OF ERP Consolidation of IT hardware, software, and people resources can be cumbersome and difficult to attain. Data conversion and transformation from an old system to a new system can be an extremely tedious and complex process.  SYSTEM LIMITATIONS OF ERP Retraining of IT staff and personnel to the new ERP system can produce resistance and reduce productivity over a period of time Complexity of installing, configuring, and maintaining the system increases, thereby requiring specialized IT staff, hardware, network, and software resources.  BUSINESS BENEFITS OF ERP Increasing agility of the organization in terms of responding to changes in the environment for growth and maintaining the market share in the industry. Sharing of information across the functional departments means employees can collaborate easily with each other and work in teams. Linking and exchanging information in real time with its supply chain partners can improve efficiency and lower costs of products and services.  BUSINESS BENEFITS OF ERP Quality of customer service is better and quicker as information flows both up and down the organization hierarchy and across all business units. Efficiency of business processes are enhanced due to business process reengineering of organization functions. Reduction in cycle time in the supply chain from procurement of raw materials to production, distribution, warehousing, and collection  BUSINESS LIMITATIONS OF ERP Retraining of all employees with the new system can be costly and time consuming. Change of business roles and department boundaries can create upheaval and resistance to the new system. to a degree, the company implementing vanilla (as-is) ERP may lose its competitive advantage when all businesses have the same standardized business processes  ERP VENDORS Tier 1 - provide support to large companies Tier 2 – support midsize companies Tier 3 – support small companies  KEY VENDORS SAP founded in 1972 headquartered in Walldorf, Germany the recognized leader among ERP vendors, claiming the largest current market share Its solutions are for all types of industries and for every major market. PRODUCTS OFFERED BY SAP Source: www.sap.com  KEY VENDORS ORACLE headquartered in Redwood Shores, California is the first software company to develop and deploy 100 percent Internet- enabled enterprise software across its entire product line, which includes databases, business applications, and application development and decision support tools. their three business principles are: Simplify, Standardize, and Automate. PRODUCTS OFFERED BY ORACLE Source: www.oracle.com  KEY VENDORS INFOR headquartered in Alpharetta, Georgia it delivers integrated enterprise solutions in supply chain, customer relationship and supplier management, workforce, asset management, product life cycles, operational and business performance, and more. PRODUCTS OFFERED BY INFOR Source: www.infor.com  KEY VENDORS MICROSOFT (Dynamics GP) formerly known as Microsoft Business Solutions or Great Plains is a comprehensive business management solution built on the Microsoft platform integrates finances, e-commerce, supply chain, manufacturing, project accounting, field service, customer relationships, and human resources. PRODUCTS OFFERED BY MICROSOFT DYNAMICS Source: https://dynamics.microsoft.com/en-us/  KEY VENDORS EPICOR headquartered in Irvine, California provides enterprise software solutions for midmarket companies around the world provides solutions for a limited number of specific industries, including nonprofit, distribution, manufacturing, and hospitality