1. Chapter 2: Enterprise Systems Accounting Information Systems, 9e Gelinas ►Dull ► Wheeler © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

2. Learning Objectives  Describe enterprise systems and enterprise resources planning (ERP) systems.  Illustrate the organization value chain.  Describe the relationship of the organization value chain and an enterprise system.  Demonstrate the value of systems integration.  Describe how an enterprise system supports major business event processes.  Enumerate the pros and cons of implementing enterprise systems. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

3. Enterprise Systems  Enterprise systems: Video: Costco Enterprise System Integrate business processes and information from all of an organization’s functional areas. Helps coordinate the operation of business functions and provide a central information resource for the organization. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

4. Inefficient Customer Service © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

5. Solution to Inefficient Customer Service  Enterprise system establishes ATP (available to promise) by checking warehouses and scheduled manufacturing.  Enterprise systems uses the central database to automatically determine price and creditworthiness. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

6. Data Maintenance: Create Customer Record © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

7. Business Event Data Processing: Enter Customer Order © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

8. Using Stored Data for Decision Making © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

9. Modules of ERP systems  Enterprise Resource Planning (ERP) Systems: Software packages that can be used for the core systems necessary to support enterprise systems. SCM CRM E-Collaboration © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

10. SUPPLY CHAIN MANAGEMENT  Supply chain management (SCM) – tracks inventory and information among business processes and across companies  Supply chain management (SCM) system – IT system that supports supply chain management  Just-in-time (JIT) – method for producing or delivering a product or service just at the time the customer wants it Key feature of effective SCM Dell uses JIT to deliver custom computers 2-10

11. Supply Chain Management  Most supply chains use inter-modal transportation, multiple transportation channels (railway, truck, etc) to move products from origin destination  This creates supply chain complexities 2-11

12. Opportunities of SCM  Business strategy Overall cost leadership Wal-Mart  Goal is to squeeze out every penny of cost possible in the supply chain  This will optimize fulfillment, logistics, production, revenue and profit, and cost and price 2-12

13. CUSTOMER RELATIONSHIP MANAGEMENT  Customer relationship management (CRM) system – uses information about customers to gain insight into their needs, wants, and behaviors in order to serve them better  Includes multi-channel service delivery, multiple ways in which customers can interact with a business  Focuses on 1.Sales force automation 2.Customer service and support 3.Marketing campaign management and analysis 2-13

14. Customer Relationship Management 2-14

15. Customer Relationship Management  Sales force automation (SFA) systems – automatically track all the steps in the sales process Sales lead tracking Listing potential customers Market and customer analysis Product configuration Getting repeat customers 2-15

16. Opportunities of CRM  Business strategy Differentiation and focus Growing the organization  Classic goals Treating customers better Understanding their needs and wants Tailoring offerings Providing “delightful” experiences 2-16

17. E-COLLABORATION  E-collaboration is the use of technology to support 1.Work activities with integrated collaboration environments 2.Knowledge management with knowledge management systems 3.Social networking with social networking systems 4.Learning with e-learning tools 5.Informal collaboration to support open-source information 2-17

18. IT Support for E-Collaboration Just a few of the literally hundreds of e-collaboration tools 2-18

19. ENTERPRISE RESOURCE PLANNING  How do you bring together SCM, CRM, and e- collaboration systems? With an ERP system.  Enterprise resource planning (ERP) system – collection of integrated software for business management, accounting, finance, supply chain management, inventory management, customer relationship management, e- collaboration, etc. 2-19

20. ENTERPRISE RESOURCE PLANNING 2-20

21. Major ERP Vendors 2-21

22. ERP  Attempts to integrate everything CRM drives what SCM will produce Everyone works together in e-collaboration The entire organization knows the entire organization  Think about your school Can you register for class with a bill outstanding? Can you register for a class for which you haven’t completed the prerequisite? 2-22

23. ERP Integrates Everything 2-23

24. SD Audit Trail for Completion of Steps in the SAP Sales Process © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

25. Audit Trail for Completion of Steps in the SAP Purchase Process © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

26. Pros of Enterprise Systems © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

27. Pros of ERP Packages © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

28. Cons of Enterprise Systems and ERP Packages © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.