1. 1 Chapter 7 Enterprise-Wide Information Systems Dr. Hassan Ismail Slides prepared based on Information Systems Today Leonard Jessup and Joseph Valacich

2. 2 Chapter 7 Objectives Understand how information technology supports business activities Understand enterprise systems and how they evolved Understand software applications that are internally or externally focused Understand how to implement enterprise systems

3. 3 Enterprise Systems Allow companies to integrate information across operations on a company-wide basis The Internet has helped create the globalization New business needs/expectations: Customer service management Supply chain management

4. 4 Support business activities Increase competitive advantage by streamlining business activities Inter-organizational systems (IoS) Electronic transmission of information to another company Order Entry Fulfillment Shipping Order Packing List Invoice Information Business Activity Information Flow for a typical Order

5. 5 Support business activities Shipping Receiving Invoice Inventory Customer Business Activity Supplier Business Activity Information Flow for a typical shipment across organizational boundaries Supplier Customer

6. 6 Internally Focused Applications Value chain – the set of business activities Primary activities: Inbound logistics Operations and manufacturing Outbound logistics Marketing and sales Customer service

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8. 8 Internally Focused Applications Support activities: Infrastructure Human resources Technology development Procurement

9. 9 External Focused Applications Integrate internal applications with those outside: suppliers, partners, customers Upstream information Information received from another organization Downstream information Information sent to another organization

10. 10 Types of Enterprise Systems Packaged applications Custom applications Stand-alone applications

11. 11 Legacy Systems Older systems Tend to be infrastructure-specific Usually linked to a specific business need Not integrated

12. 12 ERP- Enterprise Resource Planning Integrated applications ERP systems Baan Oracle PeopleSoft SAP J.D. Edwards

13. 13 ERP-Implementation Modules “Vanilla” version Customizations Best practices Business process reengineering (BPR)

14. 14 Customer Relationship Management – CRM Sales Force Automation (SFA) New opportunities for competitive advantage Examples:  MGM  American Airlines  Marriott International

15. 15 Supply Chain Management (SCM) Supply chain – the producers of supplies that a company uses Supply network What if supply chain does not collaborate? Two objectives of upstream information flow: Accelerate product development Reduce costs associated with suppliers

16. 16 The Formula for Enterprise System Success Secure executive sponsorship Get help from outside experts Thoroughly train users Take a multidisciplinary approach to implementation