1. CHAPTER 6 ENTERPRISE SYSTEMS

2. APPLICATION AREAS Interorganizational Systems e-Business applications
B2C – link businesses with their end consumers
B2B – link businesses with other business customers or suppliers
Electronic data interchange (EDI) systems
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3. APPLICATION AREAS Intraorganizational Systems
Enterprise systems – support all or most of the organization
Managerial support systems – support a specific manager or group of managers
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Figure 6.1 Types of Application Systems
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4. CRITICAL CONCEPTS Batch Processing versus Online Processing
Batch Processing – group (or batch) of transactions are accumulated, then processed all at one time
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Figure Batch Processing (simplified)
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5. CRITICAL CONCEPTS Batch Processing versus Online Processing
Online Processing – each transaction is entered directly into computer when it occurs
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Figure Online Processing
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6. CRITICAL CONCEPTS
Batch Processing versus Online Processing
Interactive system – a fully functional online system where computer quickly provides a user response
In-line system – provides for online data entry, but processing of transactions deferred for batch processing
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Figure 6.1 Types of Application Systems
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7. CRITICAL CONCEPTS
Functional Information Systems
Functional information systems – information systems framework based on organization’s primary business functions
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8. CRITICAL CONCEPTS
Vertical Integration of Systems
Top Management
Long-term trend analysis
Middle Management
Weekly data analysis to
track slow-moving items
and productive salespeople
Produce invoices
Capture initial sales data
Example Sales System
Vertically integrated information system – serves more than one vertical level in an organization or industry
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9. CRITICAL CONCEPTS
Distributed Systems and Client/Server Systems
Distributed systems – mode of delivery where processing power is distributed to multiple sites, which are then tied together via telecommunication lines
Client-server system – a type of distributed system where processing power is distributed between a central server computer and a number of client computers (usually PCs)
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10. CRITICAL CONCEPTS Client/Server Systems Handles user interface
Middleware
Client
Server
Handles user interface
Accesses distributed services through a network
Runs on bigger machine
Handles data storage for applications …
Databases
Web pages
Groupware
Software to support clients and server interaction
Microsoft Windows 2003 Server
Novell NetWare
UNIX, Linux
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11. CRITICAL CONCEPTS Client/Server Systems Two-tier configuration
Three-tier configuration
Client
Client
Server
Application Server
Database Server
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12. A three-tier client/server application

13. CRITICAL CONCEPTS
Client/Server Systems
Fat client/thin server – most processing done on client
Thin client/fat server – most processing done on server
Note:
Web and groupware servers usually thin clients
Database servers usually thin servers
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14. TRANSACTION PROCESSING SYSTEMS
Process thousands of transactions each day in most organizations
Examples: sales, payments made and received, inventory shipped and received, paying employees
Typical outputs: invoices, checks, orders, reports
Critical to business operations
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15. TRANSACTION PROCESSING SYSTEMS
Payroll System
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Figure Components of a Payroll System
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16. TRANSACTION PROCESSING SYSTEMS
Order Entry System
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Figure 6.5 Online Order Entry System
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17. ENTERPRISE RESOURCE PLANNING SYSTEMS
Also include transaction processing systems
Set of integrated business applications (modules) that carry out common business functions:
General ledger, accounts payable, accounts receivable, material requirements planning, order management, inventory control, human resources management
Usually purchased from software vendor
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18. ENTERPRISE RESOURCE PLANNING SYSTEMS
How they differ:
ERP modules are integrated
ERP modules reflect a particular way of doing business
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19. ENTERPRISE RESOURCE PLANNING SYSTEMS
Choosing right software and implementation difficult and expensive
Requires large investment of money and people resources
Leading ERP software vendors:
SAP
PeopleSoft, Inc. (bought J.D. Edwards)
Oracle
Baan
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20. Enterprise resource planning (ERP)
ERP integrates all departments and functions throughout an organization into a single IT system so that employees can make enterprise wide decisions by viewing enterprise wide information on all business operations
ERP’s goal – every department or functional area work together sharing common information and not be a “silo”

21. Supply Chain Management
SCM involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability
The steps typically taken when a customer buys a bike from Trek
Basic components of SCM include:
Supply chain partners – partners throughout the supply chain that deliver finished products, raw materials, and services.
Supply chain operation – schedule for production activities
Supply chain logistics – product delivery process

22. Trek orders materials from its
suppliers, such as packaging
material, metal, & accessories
Trek sends payments to
suppliers
Trek receives materials from
Trek assembles the bike
Trek ships the bike to the store
Customer picks up the Trek
bike from the store
Customer places an order for a Trek bike with a store
Store (such as local sporting goods store) receives the order
Store receives the payment from the customer
Store orders the bike from Trek
Store sends payment to Trek

23. Wal-Mart and Procter & Gamble SCM

24. DATA WAREHOUSING
Is the establishment and maintenance of a large data storage facility containing data on all (or at least many) aspects of the enterprise
Provides users data access and analysis capabilities without endangering operational systems
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25. DATA WAREHOUSING Establishing a data warehouse:
Is time-consuming and expensive
Requires software tools to:
Construct warehouse
Operate warehouse
Access and analyze data from the warehouse
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26. DATA WAREHOUSING Page 193 Figure 6.8 Key Elements of Data Warehousing
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Figure Key Elements of Data Warehousing
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27. CUSTOMER RELATIONSHIP MANAGEMENT
CRM system – provides integrated approach to all aspects of company-customer interaction
Marketing
Sales
Support
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28. Customer Relationship Management
CRM – involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization's profitability
CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprise wide level
CRM can enable an organization to:
Identify types of customers
Design individual customer marketing campaigns
Treat each customer as an individual
Understand customer buying behaviors

30. CUSTOMER RELATIONSHIP MANAGEMENT
CRM market segments:
Traditional out-of-the-box CRM
Traditional CRM with templates for specific vertical industries
Traditional out-of-the-box CRM with application development hooks
Industry-specific vertical CRM packages
Custom solutions from vertical systems integrators
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31. The Evolution of CRM

32. Briefly explain the differences between SCM, CRM, and ERP
SCM systems focus specifically on suppliers
CRM systems focus specifically on customers
ERP systems focus on everything, all processes, departments, and operations for an enterprise

33. OFFICE AUTOMATION
Office automation – a set of office-related applications that may or may not be integrated into a single system
Electronic mail
Work processing
Voice mail
Copying
Desktop publishing
Electronic calendaring
Document imaging
Document preparation, storage, and sharing
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34. OFFICE AUTOMATION Variants of e-mail: Electronic Mail
Electronic bulletin boards
Listservs
Computer conferencing
Chat rooms
Instant messaging (IM)
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35. Future Developments Page 198 Figure 6.9 Office of the Future Network
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Figure Office of the Future Network
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36. GROUPWARE
Groupware – industry term that refers to software designed to support groups by facilitating:
collaboration
communication
coordination
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37. GROUPWARE Typical Features: Electronic mail Electronic bulletin boards
Computer conferencing
Electronic calendaring
Group scheduling
Sharing documents
Electronic whiteboards
Meeting support systems
Learning management systems
Workflow routing
Electronic forms
Desktop videoconferencing
Instant messaging
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38. GROUPWARE Software vendors: Lotus Notes Novell GroupWise
Microsoft Exchange
Oracle Collaboration Suite
Thruport Technologies’ HotOffice
Groove Network’s Groove Workspace
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39. Page 203 Figure 6.10 Lotus Notes® Welcome Page
(Copyright © 2004 IBM Lotus Software. Lotus Notes is a registered trademark of IBM Lotus Software. Used with permission of IBM Lotus Software.)
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Figure Lotus Notes® Welcome Page
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40. INTRANETS Advantages:
Intranet – a network operating within an organization that employs the TCP/IP protocol used on the Internet
Advantages:
Implementation is relatively easy
and document sharing available to all in the organization
Web browser acts as “universal client” that works with heterogeneous platforms
Little, if any, user training required
Low cost
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41. INTRANETS
Portal – software that provides intranets with a structure and easier access to internal information via a Web browser
Extranet – an Internet-based application that permits key trading partners to access another organization’s intranet
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42. FACTORY AUTOMATION
Factory automation – involves numerically controlled machines, which use a computer program or a tape with punched holes, to control movement of tools on machines
Material requirements planning (MRP) – uses data input to produce a production schedule for the factory and a schedule of needed raw materials
Computer-integrated manufacturing (CIM) – includes MRP functions, but also has the compute carry out the schedules through control of various machines involved
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43. FACTORY AUTOMATION Page 208 Table 6.1 Abbreviations Used
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Table Abbreviations Used
in Factory Automation
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44. FACTORY AUTOMATION Engineering Systems
Computer-aided design (CAD) – use of two and three-dimensional computer graphics to create and modify engineering designs
Computer-aided engineering (CAE) – system that analyzes functional characteristics of a design and simulates the product performance under various conditions
Group technology (GT) – systems that logically group parts according to physical characteristics, machine routings, and other machine operations
Computer-aided process planning (CAPP) – systems that plan the sequence of processes that produce or assemble a part
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45. FACTORY AUTOMATION Manufacturing resources planning (MRP II)
Manufacturing Administration
Manufacturing resources planning (MRP II)
A system that usually has three components:
Master production schedule
Material requirements planning
Shop floor control
Attempts to implement just-in-time (JIT) production
Does not directly control machines on the shop floor
An information system that tries to minimize inventory and employ machines efficiently and effectively
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46. FACTORY AUTOMATION Supply chain management (SCM)
Manufacturing Administration
Supply chain management (SCM)
Systems to deal with distribution and transportation of raw materials and finished products throughout the supply chain
Are often interorganizational
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47. FACTORY AUTOMATION
Factory Operations
Computer-aided manufacturing (CAM) – use of computers to control manufacturing processes
Series of programs to control automated equipment on shop floor
Includes guiding vehicles to move raw materials and finished products
Requires a lot of input from other systems
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48. FACTORY AUTOMATION Robotics
Robotics – a branch of artificial intelligence (AI) where scientists and engineers build machines to accomplish coordinated physical tasks like humans do
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