Presentation is loading. Please wait.

Presentation is loading. Please wait.

18.1 18.2 LEARNING OBJECTIVES DESCRIBE FEATURES OF ENTERPRISE COMPUTING & INDUSTRIAL NETWORKSDESCRIBE FEATURES OF ENTERPRISE COMPUTING & INDUSTRIAL NETWORKS.

Similar presentations


Presentation on theme: "18.1 18.2 LEARNING OBJECTIVES DESCRIBE FEATURES OF ENTERPRISE COMPUTING & INDUSTRIAL NETWORKSDESCRIBE FEATURES OF ENTERPRISE COMPUTING & INDUSTRIAL NETWORKS."— Presentation transcript:

1

2 18.1

3 18.2 LEARNING OBJECTIVES DESCRIBE FEATURES OF ENTERPRISE COMPUTING & INDUSTRIAL NETWORKSDESCRIBE FEATURES OF ENTERPRISE COMPUTING & INDUSTRIAL NETWORKS EXPLAIN BUSINESS & TECHNOLOGY DRIVERSEXPLAIN BUSINESS & TECHNOLOGY DRIVERS IDENTIFY ELEMENTS & DECISIONS IN BUILDING INFORMATION TECHNOLOGY INFRASTRUCTUREIDENTIFY ELEMENTS & DECISIONS IN BUILDING INFORMATION TECHNOLOGY INFRASTRUCTURE*

4 18.3 LEARNING OBJECTIVES COMPARE VISION OF ENTERPRISE SYSTEMS AND INDUSTRIAL NETWORKS WITH MANAGEMENT REALITYCOMPARE VISION OF ENTERPRISE SYSTEMS AND INDUSTRIAL NETWORKS WITH MANAGEMENT REALITY PLAN DEVELOPMENT OF ENTERPRISE SYSTEMS AND INDUSTRIAL NETWORKSPLAN DEVELOPMENT OF ENTERPRISE SYSTEMS AND INDUSTRIAL NETWORKS*

5 18.4 MANAGEMENT CHALLENGES MANAGING INFORMATION TECHNOLOGY (IT) INFRASTRUCTURE & ARCHITECTURE: ENTERPRISE COMPUTINGMANAGING INFORMATION TECHNOLOGY (IT) INFRASTRUCTURE & ARCHITECTURE: ENTERPRISE COMPUTING MANAGING THE NEW IT INFRASTRUCTUREMANAGING THE NEW IT INFRASTRUCTURE ENTERPRISE SYSTEMSENTERPRISE SYSTEMS INDUSTRIAL NETWORKS & EXTENDED ENTERPRISE SYSTEMSINDUSTRIAL NETWORKS & EXTENDED ENTERPRISE SYSTEMS*

6 German: German: SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG English: English: SYSTEMS, APPLICATIONS, PRODUCTS IN DATA PROCESSING SYSTEMS, APPLICATIONS, PRODUCTS IN DATA PROCESSING Pronounced “S A P.” Like you say: “I B M” SAP 18.5

7 ENTERPRISE RESOURCE PLANNING (ERP): Collection of software programs which ties enterprise’s (finance, manufacturing, sales, HR,...) into a cohesive database.Collection of software programs which ties enterprise’s (finance, manufacturing, sales, HR,...) into a cohesive database. This software also provides tools to analyze data to plan production, forecast sales, analyze quality, …This software also provides tools to analyze data to plan production, forecast sales, analyze quality, …* 18.6

8 18.7 BUSINESS VALUE CHAIN INTERDEPENDENT FUNCTIONS DEAL WITH VENDOR & CUSTOMER BUSINESS PROCESSESINTERDEPENDENT FUNCTIONS DEAL WITH VENDOR & CUSTOMER BUSINESS PROCESSES TYPICAL CHAIN:TYPICAL CHAIN: –INBOUND LOGISTICS –MANUFACTURING –FINANCE –MARKETING & SALES –SUPPORT *

9 18.8 TRADITIONAL VIEW OF SYSTEMS APPLICATION SPECIFIC: Separate systems support discrete business processes, discrete segments of business value chainAPPLICATION SPECIFIC: Separate systems support discrete business processes, discrete segments of business value chain FIRM BOUNDARIES: Vendors & customers rarely considered, impermeable, tightly controlledFIRM BOUNDARIES: Vendors & customers rarely considered, impermeable, tightly controlled*

10 18.9 ENTERPRISE BUSINESS SYSTEMS ENTERPRISE BUSINESS SYSTEMS MARKETING INBOUND MANUFACTURING FINANCE AND SUPPORT LOGISTICS SALES VENDORS CUSTOMERS SINGLE SOFTWARE & HARDWARE SYSTEM PERMEABLE BOUNDARIES

11 18.10 ENTERPRISE BUSINESS SYSTEMS ENTERPRISE BUSINESS SYSTEMS ENTERPRISE COMPUTING: Firmwide integration of key business process information, processes shared with multiple firmsENTERPRISE COMPUTING: Firmwide integration of key business process information, processes shared with multiple firms INFORMATION TECHNOLOGY (IT)INFORMATION TECHNOLOGY (IT) –IT INVESTMENT PORTFOLIO –IT & PUBLIC INFRASTRUCTURES –BUSINESS LOGIC *

12 18.11 INFORMATION TECHNOLOGY (IT) INFORMATION TECHNOLOGY (IT) IT INVESTMENT PORTFOLIO: Firm’s total capital investment on ITIT INVESTMENT PORTFOLIO: Firm’s total capital investment on IT IT INFRASTRUCTURE: List of hardware, software, telecommunications, people related to ITIT INFRASTRUCTURE: List of hardware, software, telecommunications, people related to IT PUBLIC INFRASTRUCTURE: External links to firm’s IT infrastructurePUBLIC INFRASTRUCTURE: External links to firm’s IT infrastructure*

13 18.12 INFORMATION TECHNOLOGY (IT) INFORMATION TECHNOLOGY (IT) BUSINESS LOGIC: Specifications of model & processes to maximize firm’s revenueBUSINESS LOGIC: Specifications of model & processes to maximize firm’s revenue IT ARCHITECTURE: Applications, relationship to firm’s business logic, descriptions of systems that support business model & processesIT ARCHITECTURE: Applications, relationship to firm’s business logic, descriptions of systems that support business model & processes*

14 18.13 INDUSTRIAL NETWORKS & TRANSENTERPRISE SYSTEMS INDUSTRIAL NETWORKS & TRANSENTERPRISE SYSTEMS INDUSTRIAL NETWORKS: Networks linking systems of multiple firms, also called EXTENDED ENTERPRISESINDUSTRIAL NETWORKS: Networks linking systems of multiple firms, also called EXTENDED ENTERPRISES BUSINESS DRIVERSBUSINESS DRIVERS TECHNOLOGY DRIVERSTECHNOLOGY DRIVERS*

15 18.14 BUSINESS DRIVERS MARKETS: Globalization, information intensity reduce marginsMARKETS: Globalization, information intensity reduce margins INDUSTRY: Mergers, acquisitions, consolidations increase economies of scale, competitionINDUSTRY: Mergers, acquisitions, consolidations increase economies of scale, competition FIRMS & ORGANIZATIONS: Process redesign highlight need for enterprise- wide ITFIRMS & ORGANIZATIONS: Process redesign highlight need for enterprise- wide IT*

16 18.15 BUSINESS DRIVERS PRODUCTS & SERVICES: Growth of info capabilities shortens product life cyclePRODUCTS & SERVICES: Growth of info capabilities shortens product life cycle MANAGEMENT PROCESS THINKING: Shift to view firm as integrated processes, industry-based views of cooperation, allianceMANAGEMENT PROCESS THINKING: Shift to view firm as integrated processes, industry-based views of cooperation, alliance MANAGEMENT STRATEGY: Belief that IT investment leads to valuable knowledgeMANAGEMENT STRATEGY: Belief that IT investment leads to valuable knowledge*

17 18.16 TECHNOLOGY DRIVERS RELATIONAL DATABASE TECHNOLOGYRELATIONAL DATABASE TECHNOLOGY REDUCTION IN STORAGE COSTSREDUCTION IN STORAGE COSTS EXPANDED PUBLIC INFRASTRUCTUREEXPANDED PUBLIC INFRASTRUCTURE DEPLOYMENT OF CLIENT/SERVERDEPLOYMENT OF CLIENT/SERVER EVOLUTION OF DESKTOP COMPUTINGEVOLUTION OF DESKTOP COMPUTING ENTERPRISE SOFTWARE: Standardized applications in integrated environmentENTERPRISE SOFTWARE: Standardized applications in integrated environment*

18 18.17 MODEL FOR PLANNING ENTERPRISE SYSTEMS MODEL FOR PLANNING ENTERPRISE SYSTEMS FIRM STRATEGY AND GOVERNANCE BUSINESS MODEL BUSINESS PROCESSES FIRM IT ARCHITECTURE FIRM IT ARCHITECTURE FIRM IT INFRASTRUCTURE FIRM’S MARKET ENVIRONMENT

19 18.18 MANAGING THE NEW IT INFRASTRUCTURE ELEMENTS OF THE INFRASTRUCTUREELEMENTS OF THE INFRASTRUCTURE KEY INFRASTRUCTURE DECISIONSKEY INFRASTRUCTURE DECISIONS GOVERNANCEGOVERNANCE MERGERS & ACQUISITIONSMERGERS & ACQUISITIONS*

20 18.19 ELEMENTS OF THE NEW INFRASTRUCTURE RELIANCE ON NETWORKED DESKTOP & PERSONAL DEVICE COMPUTINGRELIANCE ON NETWORKED DESKTOP & PERSONAL DEVICE COMPUTING RISE OF THE INTERNETRISE OF THE INTERNET GROWING PUBLIC INFRASTRUCTUREGROWING PUBLIC INFRASTRUCTURE RELIANCE ON THIRD PARTIESRELIANCE ON THIRD PARTIES*

21 18.20 KEY INFRASTRUCTURE DECISIONS PROCESSORSPROCESSORS SOFTWARE ENVIRONMENTSOFTWARE ENVIRONMENT SHARED APPLICATIONSSHARED APPLICATIONS TELECOMMUNICATIONSTELECOMMUNICATIONS*

22 18.21 GOVERNANCE: CONNECTING INFRASTRUCTURE TO STRATEGY TRADITIONAL INFRASTRUCTURE, ARCHITECTURE GREW HAPHAZARDLYTRADITIONAL INFRASTRUCTURE, ARCHITECTURE GREW HAPHAZARDLY REQUIRES 4 LEVELS OF INVOLVEMENTREQUIRES 4 LEVELS OF INVOLVEMENT –STRATEGIC: CEO, CIO, top managers –OPERATIONAL: Set functional specs, establish budget –BUSINESS, REGIONAL UNITS: Plan to allocate funds –FUNCTIONS: Detail plans & implement *

23 18.22 MERGERS & ACQUISITIONS ECONOMIES OF SCALE, SCOPE, KNOWLEDGE, TIMEECONOMIES OF SCALE, SCOPE, KNOWLEDGE, TIME CUT COSTS, REDUCE RISKSCUT COSTS, REDUCE RISKS POTENTIAL PROBLEMS:POTENTIAL PROBLEMS: –Integrating diverse systems –Merged entity cannot execute new processes –Loss of customers *

24 18.23 MERGERS & ACQUISITIONS FOUR STAGES: 1. STRATEGIC EXPLORATION: Identify firms with strong IT assets, knowledge bases, potential for rapid integration 2. VALUATION: Identify integration costs, estimate economies of scale, scope, knowledge, time *

25 18.24 MERGERS & ACQUISITIONS FOUR STAGES: 3. PURCHASE: Establish transition team, validate costs & benefits, establish IT transition teams 4. TRANSITION: Activate systems coordinating group, search for best systems, reduce redundancies *

26 18.25 ENTERPRISE SYSTEMS THE VISIONTHE VISION THE REALITYTHE REALITY*

27 18.26 ENTERPRISE SYSTEMS: THE VISION STRUCTURE & ORGANIZATION: One organizationSTRUCTURE & ORGANIZATION: One organization MANAGEMENT: Firm-wide Knowledge- based management processesMANAGEMENT: Firm-wide Knowledge- based management processes TECHNOLOGY: Totally unified information systemTECHNOLOGY: Totally unified information system BUSINESS: Customer- driven business processesBUSINESS: Customer- driven business processes*

28 18.27 ENTERPRISE SYSTEMS: THE REALITY DAUNTING IMPLEMENTATIONDAUNTING IMPLEMENTATION UNREALISTIC COST / BENEFIT ANALYSISUNREALISTIC COST / BENEFIT ANALYSIS NOT ACHIEVING ROBUSTNESSNOT ACHIEVING ROBUSTNESS TRAPPED IN DIGITAL CONCRETE: Older systems hard, expensive to changeTRAPPED IN DIGITAL CONCRETE: Older systems hard, expensive to change DIFFICULT TO ATTAIN INTEROPERABILITYDIFFICULT TO ATTAIN INTEROPERABILITY DIFFICULT TO REALIZE STRATEGIC VALUEDIFFICULT TO REALIZE STRATEGIC VALUE*

29 18.28 INDUSTRIAL NETWORKS & EXTENDED ENTERPRISE SYSTEMS THE VISIONTHE VISION THE REALITYTHE REALITY*

30 18.29 INDUSTRIAL NETWORKS & EXTENDED ENTERPRISE SYSTEMS THE VISION: STRUCTURE: From marketplace to “value web” VALUE WEB: COLLECTION OF FIRMS ACTING TOGETHER IN AN INDUSTRIAL VALUE CHAIN COORDINATED BY NETWORKS VALUE WEB: COLLECTION OF FIRMS ACTING TOGETHER IN AN INDUSTRIAL VALUE CHAIN COORDINATED BY NETWORKS*

31 18.30 INDUSTRIAL NETWORKS INDUSTRY VALUE CHAIN FIRM 1FIRM 2FIRM 3 COMPETING FIRMS VENDOR 1 VENDOR 2 VENDOR 3 COMPETING VENDORS

32 18.31 INDUSTRIAL NETWORKS & EXTENDED ENTERPRISE SYSTEMS THE REALITY: CHOOSING BOUNDARY REGIMECHOOSING BOUNDARY REGIME SHARING COSTS, RETAINING BENEFITSSHARING COSTS, RETAINING BENEFITS VULNERABILITY & DEPENDENCEVULNERABILITY & DEPENDENCE*

33 18.32 INDUSTRIAL NETWORKS & EXTENDED ENTERPRISE SYSTEMS THE STEPS: 1. KNOW WHERE YOU ARE: Relative to technology, competition 2. KNOW WHO YOU ARE, WHERE YOU WANT TO BE 3. DEVISE LONG TERM PLAN (FIVE YEARS): Don’t redesign everything at once *

34 18.33 INDUSTRIAL NETWORKS & EXTENDED ENTERPRISE SYSTEMS THE STEPS: 4. SUCCESS WILL REQUIRE SIGNIFICANT CULTURAL, MANAGERIAL PROCESS CHANGE 5. RETRAIN MANAGERS, EMPLOYEES 6. DEVELOP INCENTIVE SYSTEMS TO SUPPORT NEW INFORMATION ENVIRONMENTS *

35 18.34 Connect to the INTERNET PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON WEB SITE FOR MORE INFORMATION IN THIS CHAPTER

36 18.35


Download ppt "18.1 18.2 LEARNING OBJECTIVES DESCRIBE FEATURES OF ENTERPRISE COMPUTING & INDUSTRIAL NETWORKSDESCRIBE FEATURES OF ENTERPRISE COMPUTING & INDUSTRIAL NETWORKS."

Similar presentations


Ads by Google