W1: Enterprise Information Systems PDF

w1 Explain the concept of "Enterprise" An Enterprise is a group of people with a common goal, which has certain resources (people, Money, Material, space, time and information) at its disposal to achieve this goal. Enterprise acts as a single entity. The resources are considered as the inputs and th...

w1 Explain the concept of "Enterprise" An Enterprise is a group of people with a common goal, which has certain resources (people, Money, Material, space, time and information) at its disposal to achieve this goal. Enterprise acts as a single entity. The resources are considered as the inputs and the attainment of goals is the final output of the process Include extended enterprises and virtual enterprises Discuss the problems with functional structure Focusing on functional objectives without regard to process objectives Optimizing functional goals vs. process goals Business functions create information silos as they function in isolation. There is a conflict between functional structure and nature of business process Explain how process-oriented perspective addresses the problems with functional structure 1. Balanced Objectives: It combines functional and process goals to ensure a well-rounded approach. 2. Aligned Goals: It harmonizes functional and process objectives for optimal results. 3. Information Sharing: It encourages data sharing, eliminating isolated information. 4. Structural Alignment: It ensures the organizational structure complements business processes. Differentiate between information silos and information integration Identify and explain different levels of enterprise integration Explain how EIS enable physical and logical integration Understand that different EIS has different purposes w1 1 Appreciate the challenge in EIS implementations Understand the concept of "best practices" in ERP systems What is EIS “[C]ommercial software packages” that “promise seamless (бесшовный) integration of all the information flow through a company – financial and accounting information, human resources information, supply chain information, customer information.” Enterprise Information Systems Enterprise IS Strategy Enterprise IS (object) An Enterprise is a group of people with a common goal, which has certain resources (people, Money, Material, space, time and information) at its disposal to achieve this goal. Enterprise acts as a single entity. The resources are considered as the inputs and the attainment of goals is the final output of the process Include extended enterprises and virtual enterprises Characteristics w1 2 Integration (physical and logical) Physical integration: Information about all the functional units are stored centrally and information is shared between all the departments. Logical integration: Removes information flow barriers across the organization and automates the business processes and functions. Standardization Silos Effect Focusing on functional objectives without regard to process objectives Optimizing functional goals vs. process goals w1 3 Business functions create information silos as they function in isolation. There is a conflict between functional structure and nature of business process Siloed Information Systems Problems with siloed information systems: Information cannot be easily shared Duplication of effort and data – data redundancy (duplicates) and inconsistencies Escalating costs for maintaining different systems on different platforms and technologies Restricts flexibility and agility of the company = bottleneck Process Orientation w1 4 Focus on end-to-end business processes Provides "big picture" (enterprise view) of the business process instead of goals of functional areas. Based on Porter's value chain that organizes high level business functions and relate them to each other in order to understand how a company operates Configuration of activity embodies the way the activity is performed, type of human and physical assets employed, and associated organizational arrangement Understanding of value chain and overall value systems brings about sustained competitive advantage Enterprise Integration w1 5 A way to provide information to the right place at right time for efficient cooperation and coordination. 3 levels of integration Physical integration: interconnected systems and data exchanges Application integration: interoperability of software applications and database systems Business integration: coordination of functions, processes, people 2 levels of application Internal: Facilitate information control and material flow by connecting necessary functions and heterogenous functional entities with aim to enable enterprise to behave as an integrated whole w1 6 External: Facilitate coordination between two or more businesses in order to work together as a single entity Business Silos Companies focused IT Move from local view of data and investment on delivering solutions for local business problems and opportunities applications to enterprise view Role of IT is to automate specific processes Applications are aligned with a company’s business unit, functional or geographical structures End result = non-integrated, heterogenous systems w1 Optimized Core IT investments shift from local applications and shared infrastructure to enterprise system and shared data Develop interfaces to critical corporate data Standardisation of business processes and IT applications Emphasis of IT management is to reuse data and business process platforms 7 Standardized Technology Use of technology standards to reduce number of software platforms Software selection is based on best-fit to company’s technology architecture instead of being best-fit to Management refines and increasingly modularizes processes from previous stage Web services used to create reusable business services with standard interfaces (e.g. Service Oriented Architecture) required functionalities Business units allowed to design front end processes by building or buying IT is mainly for automation of local business processes individual modules to connect to core data and back end processes Although data warehouses may be used, transaction data is still embedded in local applications Role of IT is to provide seamless linkages between business process modules Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) Systems are the first generation of enterprise systems meant to integrate data and support all the major functions of organizations. ERP systems integrate various functional aspects of the organization as well as systems within the organization of its partners and suppliers. Goals of ERP: To make the information flow dynamic and immediate, w1 Business Modularity ERP and Workflow Management Functionalities of ERP systems are integrated with workflow management systems Workflow determines who processes are carried out and by whom Workflow designs in ERP system determine functionalities ERP and Best Practices ERP software embeds best business practices to allow organizations to implement their policies and procedures. 8 therefore, increasing its Conforming best practices is usefulness and value. believed to lead to improved organization's productivity and performance To integrate departments and functions across an organization into a single infrastructure that serves the needs of each department Features of ERP Single infrastructure Consistent graphical user interface (GUI) Implementation of ERP systems will lead to process changes Customization or changes are necessary when best practices conflict with organization's policy ERP is more than a software package Integration across functions Centralized database Integration with ERP ERP systems supports both physical and logical integration. Physical integration - single database and single application infrastructure Logical integration - built-in processes (best practices) ERP and Configuration ERP systems are frame systems that provide a default frame that must be configured before application in a specific context Configuration refers the changing the provided settings in the ERP system to cater for specific context of the business w1 9 (e.g. language, time zone, currencies, accounting practices) Customer Relationship Management (CRM) CRM integrates corporate strategy, business methodology and technology to achieve the goals of customer-driven environment Focuses on supporting requirements of customers and clients (front-end customer facing functionalities eg marketing, sales, customer services) Results from integration of discrete customer centric applications (e.g. sales force automation system, customer centre support system, marketing automation) Interest in CRM fuelled by shift from mass marketing to segment marketing to target marketing, which created the desire to maximize customer's experience with brand Type of CRM Operational CRM Provides back end support for sales and marketing, administrative personnel, or customer service processes Often embedded in campaign management and customer help desks, and integrated with corporate database to provide single and consistent view of customers Analytical CRM Provides tools for collecting and analyzing data gathered from operational processes for improving relationships and experience with clients Store and value add customer knowledge using data warehousing, OLAP, data mining etc. Collaborative CRM Deals with interaction points between organization and customer (channels) CRM Processes Functions of a good CRM: w1 10 Capture and maintain customer needs, motivations, behaviours over lifetime of relationship Facilitate use of customer experience for continuous improvement of relationship Integrate marketing, sales and customer support activities Delivery Processes: Campaign Management Sales Management Service Management Complaint Management Support Processes Marketing Research Loyalty Management Analysis Processes Lead Management Customer Profiling Feedback Management Supply Chain Management (SCM) SCM systems are inter-organizational systems to support efficient handling of flow of goods, data and resources relating to the products/services from suppliers to customers. SCM is the strategy to organize, control and move the resources involved in the flow of services and materials within the supply chain SCM brings together front and back office activities from marketing, distribution, planning, manufacturing and purchasing departments SCM Processes Procurement and e-procurement Outsourcing and partnerships Manufacturing flow management Order fulfilment Customer service management process Forecasting Collaborative Design and product development w1 11