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

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

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

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

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

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

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

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