Chapter 7: Information Systems in Organizations Nanda Ganesan, Ph.D.

Note Some of the slides are the copyright of Pearson Publishing

Focus Q1: How do information systems vary by scope? Q2: How do Enterprise Systems Solve the problems of departmental silos? Q3: How do CRM, ERP, and EAI Support Enterprise Systems? Q4: How do inter-enterprise IS solve the problems of enterprise silos? Copyright © 2015 Pearson Education, Inc.

Q1: How Do Information Systems Vary by Scope? Copyright © 2015 Pearson Education, Inc.

Departmental Activities Copyright © 2015 Pearson Education, Inc.

Departmental Activities Copyright © 2015 Pearson Education, Inc.

Integration of Departmental Activities Common database

Problems Created by Departmental Silos Copyright © 2015 Pearson Education, Inc.

Integrate Data Into Single Database, Revise Applications and Business Processes Copyright © 2015 Pearson Education, Inc.

An Enterprise System for Patient Discharge Some Departments Involved in Patient Discharge Copyright © 2015 Pearson Education, Inc.

Business Process Reengineering (BPR) Altering and designing business processes to take advantage of new information systems. Difficult, slow, and exceedingly expensive. Systems analysts interview key personnel throughout organization. Requires high-level, expensive skills and considerable time. BMP set stage for emergence of three major enterprise applications. Copyright © 2015 Pearson Education, Inc.

IS Systems Customer Relations Management (CRM) Enterprise Resource Planning (ERP) Enterprise Application Integration (EAI) These systems play an important role in today’s large organizations

Customer Relationship Management (CRM) Suite of applications, a database, set of inherent processes Manage all interactions with customer through four phases of customer life cycle: –Marketing, Customer Acquisition, Relationship Management, Loss/Churn Every contact and transaction with customer is recorded in CRM database Supports customer-centric organization Copyright © 2015 Pearson Education, Inc.

Customer Life Cycle Copyright © 2015 Pearson Education, Inc.

CRM Applications Copyright © 2015 Pearson Education, Inc.

ERP Modules

Enterprise Application Integration (EAI) Links departmental silos together Enables communicating and sharing data Provides integrated information Provides integrated layer-over top of existing applications Enables gradual move to full ERP Copyright © 2015 Pearson Education, Inc.

Enterprise Application Integration (EAI) Architecture “Virtual Integrated Database” Copyright © 2015 Pearson Education, Inc.

Challenges in Implementing Enterprise Systems Four Primary Factors 1.Collaborative management using committees and steering groups 2.Identify requirements gaps 3.Transition problems - implement while continuing to run the business. 4.Managing employee resistance via communication, self-efficacy, positive incentives Copyright © 2015 Pearson Education, Inc.

CRM Software Salesforce SalesCloud Sugar CRM ACT! Goldmine Microsoft and SAP also offer CRM software

Choosing a CRM Product Salesforce.com and Sugarcrm a.Learn about these products, visit and b.Search the Web for “Salesforce vs. Sugar CRM.” Read several comparisons. c.Summarize your findings in a 2-minute presentation. Include intended market for these products, costs, and relative strengths and weaknesses. Copyright © 2015 Pearson Education, Inc.

Video Modules SugarCRM introduction to CRM SalesForce demo for small business Microsoft Dynamics 2013 Demo

CRM E-Book Salesforce e-book free download

ERP Software SAP Oracle (PeopleSoft) Microsoft Dynamics Infor Epicor ERP Software Summary ERP Vendors by Industry

Overview of ERP An Overview of ERP by EPICOR- GoodAn Overview of ERP by EPICOR –Expand on this ERP Overview by SAP

Ethics Guide: Dialing for Dollars Assume you are a salesperson. It has been a bad quarter. VP of sales authorized a 20% discount on new orders if customers take delivery prior to end of quarter so order can be booked for this quarter. VP says “Start dialing for dollars, and get what you can. Be creative.” You identify your top customers to offer discount deal. Copyright © 2015 Pearson Education, Inc.

Ethics Guide: Dialing for Dollars: Scenario 1 To one customer, “Take full delivery now and return your unsold inventory next quarter.” –Customer wants this stipulated on purchase order –But, accounting will not book full sales amount with such a stipulation Salesperson agrees to the stipulation –Accounting books full amount Copyright © 2015 Pearson Education, Inc.

Ethics Guide: Dialing for Dollars: Scenario 1 (cont’d) Significant amount of unsold product will be sent back next quarter for refund. Q: Is it ethical to agree to take back product in an ? Q: What would you say if the boss finds out? Copyright © 2015 Pearson Education, Inc.

Ethics Guide: Dialing for Dollars: Scenario 2 With another customer, you don’t offer discount, but agree to post 80% of sale due this quarter with 20% credit posted next quarter. Accounting books full price now, then takes off 20% next quarter Hurts next quarter sales revenue Copyright © 2015 Pearson Education, Inc.

Ethics Guide: Dialing for Dollars: Scenario 3 Sell product to fictitious company owned by relative. Accounting books full sale this quarter. All merchandise returned next quarter for full refund. Q: Is this ethical? Q: Is this legal? Copyright © 2015 Pearson Education, Inc.

Ethics Guide: Dialing for Dollars: Scenario 3 (cont’d) Copyright © 2015 Pearson Education, Inc. Company is scheduling production for next quarter based on this quarter’s sharply increased sales. It generates a schedule with substantial production increases and schedules workers for production runs. Q: What impact do your sales activities have on next quarter’s inventories?

Guide: The Flavor-of-the-Month Club Management never listens –Employees want change from bottom-up Change management programs are silly –Managers forget about programs –When program loses support, new one introduced –Employees grow more cynical with each failed program Copyright © 2015 Pearson Education, Inc.

Enterprise Level Information Systems

Data Isolation Copyright © 2015 Pearson Education, Inc.

Data Consolidation and Integration Copyright © 2015 Pearson Education, Inc.

Enterprise Information Systems: Using the PRIDE Database Copyright © 2015 Pearson Education, Inc.

Defining the Workout Table with SQL Copyright © 2015 Pearson Education, Inc.

PRIDE, Person, Workout, and Performance Tables Copyright © 2015 Pearson Education, Inc.

Tables Relating to Exercise Prescriptions Copyright © 2015 Pearson Education, Inc.

Enterprise Level Consolidated Database Copyright © 2015 Pearson Education, Inc.

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