Information Systems Infrastructure (IS3314) 3 rd year BIS 2006 / 2007 Fergal Carton Business Information Systems

Last week Richness and reach (cf. Strategy and the New Economics of Information) Organisations put people who need to share information together High fixed costs of high street presence (eg. Roches Stores) Remote access over internet changes the rules Distance learning versus in-class attendance MP3 sales in traditional record stores? Web based applications (thin client) Uses a PC and a browser (IE 6.0) Client installation unnecessary Upgrading application once centrally No impact on client performance (eg. memory usage)

This week Functional business systems E-business and e-commerce Overview of Information systems Evolution of ERP from MRP Key business decisions D 0 – D 6 Key benefits of ERP ERP: the state of play Davenport handout SBP Retail Technology handout (27 Aug 2006)

Functional business systems Production Operations Production Operations Marketing Human Resource Management Human Resource Management Finance Accounting Functional Business Systems

Functional business systems Functional business systems are composed of a variety of types of information systems (transaction processing, management information, decision support, etc.) that support the business functions of: –Accounting –Finance –Marketing –Productions/operations management –Human resource management Composite or cross-functional information systems cross the boundaries of traditional business functions in order to reengineer and improve vital business processes. Cross-functional information systems as a strategic way to share information resources and improve the efficiency and effectiveness of a business Internet technologies help integrate the flow of information among their internal business functions and their customers and suppliers. Companies are using the World Wide Web and their intranets and extranets as the technology platform for their cross-functional and interorganizational information systems.

E-business and e-commerce Distinction between e-commerce and e-business: e-Commerce is defined as buying and selling over digital media. e-Business encompasses e-commerce, but includes front- and back- office “e-business is the use of the Internet and other networks and information technologies to support electronic commerce, enterprise communications and collaboration, and Web-enabled business processes both within an internetworked enterprise, and with its customers and business partners”

Overview of information systems Support day to day transaction processing –Back-office (SCM, ERP) –Manufacturing (Scada, LIMS, …) –Engineering (CAD, …) –Front-office (CRM) Provide management information –EIS –Data warehouse –Portal Collaborative tools for productivity (eg. MS-Office) Support links to business partners –IOS, EDI, e-commerce, …

What is ERP? Enterprise Resource Planning Whole company Single point of entry Integrated Process oriented People Money Materials Inventory Transact Report Manage Plan

Deliver CustomerMakeSupplier 1950’s: unlimited demand

Deliver CustomerMake Buy Supplier Plan 1960’s : inventory costs money!

Deliver CustomerMake Buy Supplier Plan MRP 1960’s : inventory costs money

MRP II Sell CustomerMake Buy Supplier Plan MRP Deliver 1970’s : first wave of integration

MRP II Sell CustomerMake Buy Supplier Plan MRP Deliver 1980’s : sales order processing SOP

MRP II Sell CustomerMake Buy Supplier Plan MRP Deliver 1990’s : back-office integration ERP Accounting & FinanceHuman Resources

–A system for planning the resources to –take –make –ship –and account for customer orders –Modular structure, relational database David Sammon © 2002 What is ERP?

Key benefits of ERP? Single point of data entry (PO’s, SO’s, …) Inventory control Opportunity to re-design business processes Single technical platform (support) Common language, common pool of data SalesShippingCollect cash

ERP : the state of play High penetration rate in large businesses ERP seen as panacea to lack of control in subs Centralising of expensive IS resources CEO’s are “disappointed” with results Reporting weakness : need for data warehouse

Key business decisions

As-is Best of breed Are there alternatives? Scalability? Flexibility?