Professional Documents
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(ICT) -
ESP 1
What are enterprise wide systems?
ESP 2
Enterprise wide systems:
• Allow organisations to wipe out some of
the inefficiencies created by separate
IS (known as legacy systems)
– Re entering information
– Inability to share data between systems
– Duplication of data in different
departments
• Adds a common data warehouse –
single place where all info is stored &
accessed
ESP 3
• Rather than information flowing from one department
to next, data is accessed and updated, so next
business activity can access whenever required
• Sharing gives access to accurate, real time
information
• Storing data in single place and making it available
empowers everyone to be aware of current state of
business and perform jobs better
• Central repository of info common to all users
• Common user interface – share info seamlessly
• Globablisation of customer and supplier networks
given new opportunities and methods to conduct
business
• The need to give good quality customer service
ESP 4
Recommendations for Success
Secure Executive Sponsorship
The highest level support is required to obtain resources and
make and support difficult reengineering decisions
ESP 6
Interorganisational Systems
ESP 7
Types of Enterprise Systems
Packaged
Packaged Applications
Applications
“Off
“Off the
theShelf”
Shelf” computer
computer applications
applications purchased
purchasedfromfrom aavendor
vendor
or
orthe
thecompany
companythat thatcreated
createdthe
thesystem
system (i.e.
(i.e. Quicken
Quickenor
orMSMS
Money
Moneyforfor financial
financialapplications)
applications)
Key
KeyCharacteristics
Characteristicsof of packaged
packagedapplications
applications
••Best
BestUse
Use --standardized,
standardized, repetitive
repetitivetasks
tasks
••Cost
CostEffectiveness
Effectiveness––lower lowercost
costbecause
becausevendors
vendorscan
can
create
createonce
onceand
andthen
thensell
sellmany
manycopies
copiesto toothers
others
••Organizational
OrganizationalFitFit ––may
maynotnotbebewell
wellsuited
suitedfor
fortasks
tasksthat
that
are
areunique
uniqueto
toaaparticular
particularbusiness
businessor or industry
industry
••Maintenance
Maintenance––the thevendor
vendor makes
makesthethechanges
changesandandthen
then
sends
sendsthe
theupdates
updatesto toits
itscustomer
customeron onaaperiodic
periodicbasis.
basis. The
The
customer
customer does
does not
not control
control this
this schedule
schedule
ESP 8
Types of Enterprise Systems
Custom Applications
“Custom-built” computer applications created by the organization
or a third party (e.g. a consulting organization)
Key
KeyCharacteristics
Characteristics of
of Custom
Custom Applications
Applications
••Best
Best Use
Use-- unique
uniquebusiness
businessprocess
processto
to an
anorganization
organization
••Cost
CostEffectiveness
Effectiveness ––much
muchhigher
higher cost
costdue
dueto tothe
theone-time
one-time
creation
creationof
ofthe
theapplications
applications
••Organizational
Organizational Fit
Fit ––excellent
excellent as
asthey
theyare
aredesigned
designedto to fit
fit aa
specific
specificbusiness
businessprocess
process
••Maintenance
Maintenance ––all
allchanges
changesarearecreated
created and
and implemented
implemented by by
the
theorganization
organizationusing
usingthe
theapplication
application
ESP 9
Enterprise System Evolution
System Evolution System Types
Standalone Systems
Integrated Systems
(Intraorganizational)
Integrated Systems
(Interorganizational)
ESP 10
Enterprise Systems
Stand
StandAlone
Alone(Legacy)
(Legacy)Systems
Systems
AAsingle
singlesystem
system or or groups
groupsofofsystems,
systems, designed
designedto toeach
each
support
support one
oneor oraa few
few business
businessfunctions
functions (e.g.
(e.g. accounting
accounting
system
systemororaa manufacturing
manufacturingsystem,
system,etc.)
etc.)
Stand
StandAlone Alone(Legacy)
(Legacy) Systems
Systems
••Little
Littleor ornonointegration
integration with withother
other organizational
organizationalsystems.
systems.
IfIfintegration
integrationexists,
exists,itit isisusually
usuallyininbatch
batch(i.e.
(i.e.the
theaccounting
accounting
system
systemgets getsupdates
updatesfrom from manufacturing
manufacturingsystemsystemonce
onceaaday
day
or
orweek
week
••Organizational
Organizationalfit fit may
maybe bebetter
better than
than integrated
integrated packages
packages
due
dueto tothe
thefocus
focusononone
onefunction
functionand
and that
that they
theyhave
havebeen
been
highly
highlymodified
modified over
overtime time
••Customization
Customizationand andthe theage ageofofthese
thesesystems
systemsmake makethem
them
difficult
difficultto tosupport
support due dueto tothe
the complexity,
complexity, useuseofofolder
older or
or
obscure
obscure languages,
languages, etc.
etc.
ESP 11
Enterprise Systems
ESP 13
Integrated System Example
ESP 15
ENTERPRISE RESOURCE PLANNING
ESP 16
COSTS
ESP 17
Choosing an ERP System - Issues
ERP
ERP Systems
Systems are: are:
••Supplied
Supplied by by multiple
multiple vendors
vendors including
including SAP,
SAP, SSA
SSA
Baan,
Baan, Oracle,
Oracle, etc.,
etc., with
with each
each having
having their
their own
own unique
unique
features
features and
and structures
structures
••Packaged
Packaged systems
systems thatthat are
are following
following aa one
one size-fits
size-fits
all
all strategy
strategy which
which means
means theythey may
may not
not support
support all
all
functions
functions asas well
well as
as aa custom
custom system
system
••Similar
Similar but
but are
are also
also different.
different. They
They should
should be be selected
selected
based
based on on factors
factors including
including control,
control, business
business
requirements,
requirements, and and best
best practices
practices
ESP 18
CUSTOMER RELATIONSHIP MANAGEMENT
ESP 19
Customer Relationship Management
Objective
Objective
Applications
Applicationsthat
thathelp
helporganizations
organizationsattract
attractnew
newbusiness
businessand
and
attract
attractand
andencourage
encouragerepeat
repeat business
business
Functions
Functions
There
Thereare
aretwo
two primary
primaryfunctions
functionsininCRM
CRM systems:
systems:
••Sales
Sales––tools
toolsdesigned
designedto toassist
assistin
in presales
presales activities
activitiessuch
such as
as
marketing
marketing and
and prospecting
prospecting (e.g.
(e.g.Sales
SalesForce
Force Automation)
Automation)
••Service
Service ––tools
toolsthat
that help
helpwith
withthe
the post-sales
post-salesaspects
aspectsofofthe
the
business
business (e.g.
(e.g. call
callcenter
centertechnology,
technology, analytics)
analytics)
Sources
Sources
There
Thereare
aretwo
two primary
primarysources
sourcesof
ofCRM
CRMsystems:
systems:
••CRM
CRMSoftware
SoftwareVendors
Vendors––Siebel,
Siebel,FirePond,
FirePond,Onyx,
Onyx,E.Piphany
E.Piphany
••ERP
ERP Vendors
Vendors ––SAP,
SAP, Baan,
Baan, Oracle,
Oracle, etc.
etc. 20
ESP
SUPPLY CHAIN MANAGEMENT SYSTEMS
ESP 21
Supply Chain Management
Objective
Objective
Applications
Applicationsthat
thataccelerate
accelerateproduct
productdevelopment
developmentand
andreduce
reduce
cost
costassociated
associatedwith
withprocuring
procuringrawrawmaterials,
materials, components,
components,and
and
services
servicesfrom
from its
itssuppliers
suppliers
••Supply
SupplyChain
Chain ––the
thesuppliers
suppliersthat
that an
anorganization
organization
purchases
purchasesfromfrom directly
directly
••Supply
SupplyNetwork
Network ––thethesuppliers
suppliersthat
thatan
anorganization
organization
purchases
purchasesfromfrom directly
directlyand
andits
itssuppliers
suppliers
Sources
Sources
There
Thereare
aretwo
two primary
primarysources
sourcesof ofSCM
SCMsystems.
systems. These
These
systems
systemsare
arebuilt
builtto
to tightly
tightlyintegrate
integratewith
withERP
ERPsystems
systems
••SCM
SCM Software
SoftwareVendors
Vendors ––Agile,
Agile,Ariba,
Ariba,I2,
I2, Manugistics,
Manugistics,
Commerce
CommerceOne,One, etc.
etc.
••ERP
ERPVendors
Vendors––SAP, SAP, Baan,
Baan,Oracle,
Oracle, etc
etc
ESP 22
SCM – Example of a Supply Network
ESP 23
Supply Chain Management Benefits
Supply
SupplyChainChainManagement
Management applications
applicationscancanhelp
help
organizations
organizationsto togain
gaincompetitive
competitiveadvantage
advantageand andprovide
provide
substantial
substantialpayback
paybackin inseveral
severalways
waysby:by:
••Streamlining
Streamliningworkflow
workflow and andincreasing
increasingemployee
employee
productivity
productivity (i.e.
(i.e.efficiently
efficientlymanaging
managingbusiness
businesstravel,
travel, time,
time,
and
andexpenses
expensesby bycollaborating
collaboratingwith
withsuppliers
suppliersin
inreal
realtime)
time)
••Accelerating
Acceleratingproduct
product development
development (i.e.(i.e.enabled
enabledbybythe
the
ability
abilityof
oforganizations
organizationsto toswiftly
swiftlyreact
react to
tomarket
marketconditions)
conditions)
••Streamlining
Streamliningcost
cost and andcreating
creating efficiencies
efficiencies across
acrossthe
the
supply
supplynetwork
network(i.e.,
(i.e.,supporting
supportingcontract
contract negotiation
negotiationand
and
measuring
measuringeffectiveness
effectivenessof ofthose
thoseagreements)
agreements)
ESP 24
SCM – Example of SAP SCM Offering
SAP
SAPisis the
theERP
ERPmarket
marketleader.
leader. They
Theyalso
alsooffer
offer SCM
SCM
applications
applicationswhose
whosecapabilities
capabilitiesinclude
includethe
thefollowing:
following:
ESP 25
OUTSOURCING
ESP 26
Reasons for Outsourcing
ESP 28