Chapter 7 Enterprise Systems

This Could Happen to You: “Maybe so, but Nobody Told Me” Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes needs fixing Mike Stone’s (facilities manager) renovation plans interfere with scheduled weddings No body informed wedding planner, Anne Foster Scenario Video Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Study Questions Q1. How do information systems vary by scope? Q2. When are information silos a problem? Q3. How do enterprise information systems eliminate silos? Q4. How do CRM, ERP, and EAI support enterprise systems? Q5. What are the challenges when implementing new enterprise systems? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q1: How Do Information Systems Vary by Scope? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q2: When Are Information Silos a Problem? Data isolated in separated information systems Created over time as personal and workgroup support applications implemented Silos duplicate data and become serious problems as organizations grow Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Fox Lake Country Club Departmental Goals and Silos Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Departmental Information Systems: Islands of Automation Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

What Are Common Departmental Applications? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Problems of Silos Created in Isolation Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q3: How Do Enterprise Information Systems Eliminate Silos? Central database Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

An Enterprise System for Patient Discharge All data in Central database Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Business Process Reengineering (BPR) “Analysis and design of workflows and processes within an organization” (wikipedia.org) Enterprise systems not feasible until network, data communication, and database technologies reached sufficient level of capability and maturity in late 1980s and early 1990s. Identify Processes Review, Update, Analyze As-Is Design To-Be Test and Implement To-Be Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q4: How Do CRM, ERP, and EAI Support Enterprise Systems? Help organizations fundamentally rethink how they do work to dramatically improve customer service, cut operational costs, and become world-class competitors Complex, in-house developed applications became too costly to build and maintain Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q4: How Do CRM, ERP, and EAI Support Enterprise Systems? (cont’d) Inherent processes Pre-designed procedures for using software products Saves organizations from expensive and time-consuming business process reengineering Based on industry best practices Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

ERP Vendors PeopleSoft—licensed payroll and limited capability HRM systems Siebel—licensed sales lead tracking and management system SAP—licensed enterprise resource management Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Customer Relationship Management (CRM) A suite of applications, a database, and a set of inherent processes for managing all interactions with a customer, from lead generation to customer service Customer-centric ability Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Major Components of a CRM Application Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Enterprise Resource Planning (ERP) Suite of applications, database, and set of inherent processes for consolidating business operations into single, consistent, computing platform Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q5: What Are the Challenges When Implementing New Enterprise Systems? Collaborative Management Requirements Gaps Transition Problems Employee Resistance Challenges Difficulty Expense Risk Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Challenges of ERP Implementation Careful planning and substantial training critical Transition problems Change requires effort and creates fear Senior level management must communicate need for change to organization, and must re-iterate Train key users ahead of time to create positive buzz about new system Video demonstrations of employees successfully using new system Encourage change with extra inducements Employee resistance Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Active Review Q1. How do information systems vary by scope? Q2. When are information silos a problem? Q3. How do enterprise information systems eliminate silos? Q4. How do CRM, ERP, and EAI support enterprise systems? Q5. What are the challenges when implementing new enterprise systems? How does the knowledge in this chapter help Fox Lake and you? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall