1. Enterprise Processes and Systems
MIS 2000
Instructor: Bob Travica
Class 17
Enterprise Processes and Systems
Updated Nov. 2016

2. Outline
Concept of Enterprise System (ES) / Enterprise Resource Planning System
ES Design
Databases for ES
Purposes of ES
Example of ES effects on CRM*
DSS capability of ES
ERP System Benefits and Costs
Summary
CRM=customer relationship management

3. Enterprise System
Enterprise System (ES) or Enterprise Resource Planning System (ERPS) is an integrated information system that carries business processes for several departments or in an entire organization.
All data are in electronic form and business processes are automated and linked.
Human Resources Process
Sales & Delivery Process
Marketing Process
Production Process
Supply Process
Management Process (operational, strategic)
Accounting & Finance Process
IS Development & Maintenance Process
Organization
Enterprise System
Electronic
Links to
buyers
suppliers 3

4. Sales & Delivery Departments
Departments covered by ES: purchasing, inventory, production planning and scheduling, accounting, finance, HR, sales… almost any.*
ES typically performs functions of TPS and MIS. With additional modules, ES works as data-driven DSS.
ES are developed differently than other IS. Software is sold in packages, then configured to meet a company’s needs. **
Enterprise System
Management Process
Sales & Delivery Departments
Marketing Dept.
Production Dept.
Accounting Dept.
Info. Systems Dept.
Purchasing Department
HR Dept.
*Engineering operations are not covered. Engineering (machine, electrical, architectural…) requires application
software that performs special calculations and drawing tasks.
**Configuration means choosing from options that are embedded in software (enabling some options, disabling others).

5. Electronic Process Integration with ES
Processes:
Price quoting
Ordering
Delivery
Invoicing

6. Enterprise System Design
Corporate centralized
databases
ES Engine &
Broker
User interfaces in organizational
departments
The ES core is the module called ES Engine
and Broker. Business processes are
mapped in there.
Centralized DBs used by ES supply
data to business processes defined by
ERP modules (accounting, finance, HR...)
ES can be one brand (e.g., SAP) and
use databases another (e.g., Oracle)

7. Databases for Enterprise System
Databases that support
ES may have tens of thousands of tables.
High complexity.
ES Engine & Broker
Benefit from centralized
Databases is that an entity is defined just once and used so across company departments. This improves data quality (next slide).
- Oracle
- MS SQL
- SAP MaxDB

8. Corporate-wide and Department-specific
Purposes of Enterprise System
Accounting
& Finance
Human
Resources
Corporate-wide and Department-specific
reporting
Purposes of ES (ERPS):
The main purpose is to provide an integrated view of a company’s operations. This is possible owing to centralization in corporate data management. Primary beneficiary is executive managers.
2. The integrated view allows for more informed decision making because data are more consistent, complete, accurate, timely.

9. Customer Relationship Management - Sales & Marketing Processes
Entity (italics)
Attributes
Community
of Interest
Marketing
Sales
Customer Order Management
Billing
Complaints/
Support
Customer: Customer ID, Customer Type*, Name, Address, City*, Postal Code, Phone,
Market management entities: Segment, Promotion, Campaign, Channel
Product: Product ID, Product Type*, Description, Distribution Channel,
List Price
Customer Order: Customer Order Number, Order Date, Quantity
Sales Record: Sale Number, Sale Date, Salesperson*, Price
Billing Record: CustomerBillingID, Date, Amount, Payment Method
Customer Support: Customer ID, Complaint, Customer, Date
Customer: Customer ID, Date, Comment, Contribution

10. System Support to Sales & Marketing Processes – Traditional vs
System Support to Sales & Marketing Processes – Traditional vs. ES Model
Old IS solution – separate system for each process
New IS solution – a single system – Enterprise System*
Community
of Interest
Marketing
Sales
Customer Order Management
Billing
Complaints/
Support
Mkt campaign TPS
Mkt segmentation DSS
Brand mgt MIS/DSS
Customer Master TPS
Sales TPS/MIS
Customer Order Mgt TPS/MIS
Billing TPS/MIS
Support Desk TPS/MIS
Communication sys,
Group Support IS
Marketing
Sales
Customer Order Management
Billing
Complaints/
Support ES
Enterprise System for supporting customer-related processes is also called Customer Relationship Management System.
Customer communities are not integrated into ES.

11. Example of ES Screen – SAPTM

12. DSS Capability of Enterprise Systems
Corporate centralized
Databases
ES Engine &
Broker
User interfaces in organizational
departments
Data
cubes
Data
Warehouse
*Data cube is a three-dimensional representation of data; for example, sale amounts per customer, per product and per time periods. A data cube allows for drill-down and roll-up views. For example, initial cube can show weeks, and which can be rolled-down to days, and rolled up to months, customer and product being the same.
Data Warehouse (DW) is a large repository
of data extracted from corporate databases. This
software is purchased separately from standard
ES software.
DW is not relational databases, but has its own
tables, keys, and data models. DW is used for
building data cubes.* The capability of data
cubing makes ES a data-driven DSS.

13. Summary 1/2
Enterprise System (ES) (or Enterprise Resource Planning System – ERPS) is an integrated information system that carries business processes for several departments or in an entire organization. .
Data management is standardized to provide an integrated view of business – ES is a TPS/MIS for whole enterprise. With additions, ES works as a data-driven DSS.
Databases for ES can be very complex and made by different vendors than is the ES software.

14. Summary 2/2
ES costs can be large and should be accounted for the entire system life. Intangible costs include organizational change and employee resistance to it.
ES improves process performance due to better coordination across the enterprise, elimination of complexity associated with separate departmental IS, time savings, more effective management control, and decision making using integrated view of enterprise.