Business Information

Systems
Presented By:
Deepali Bhardwaj
 Group 11
Total Cost Of Ownership
Enterprise Resource Planning (ERP)
 Enterprise Resource Planning
General Ledger
Pricing AR / AP
Billing Finance & Fixed Assets
Order entry & processing Accounting Treasury Management
Warehouse management Cost Center Accounting
Transportation management Product-cost accounting
Financial accounting
Sales & Human
Centralized
Marketing Resources
Database
Payroll
Procurement HR Administration
Production planning Time accounting
Manufacturing & Benefits accounting
Production scheduling
Production Performance management
Materials Management
Quality Control
Plant Maintenance
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Enterprise Resource Planning

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What Are Enterprise Resource Planning?
Links internal applications and supports external
business processes
Suite of integrated software modules and a common
central database
Enterprise software built on thousands of predefined
processes
ERP implementation should be in alignment with
Organizational Transformations and Process Re-
engineering initiatives
Custom build, Product, SaaS

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Enterprise Systems (ERP)
Focus on bottom line growth
Benefits
Increased operational efficiency
 Transformation of quality, productivity and profitability
 Shorter Cycle Times

Improved decision making

Standardization of practices and data

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Symantec’s ERP Turmoil
Business Objective For Symantec
Integrate process of Symantec and Veritas
Integration of processes with acquired
companies(e.g Veritas) was a problem
 There existing ERP implementations could not be
leveraged for common processes as they were highly
customized
Included extended network of resellers,
integrators, distributors, customers
Reduce Operational cost by reducing cost of
maintaining IT infrastructure and licensing fee

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Implementing Enterprise Systems
Select functions to be used
Map business processes with the pre-defined
processes of the software
Use Configuration tables provided by the s/w
manufacturer to tailor a particular aspect of the
system to the way it does business - Configuration
E.g. track revenue by product line, geographical unit etc

If s/w does not support the way organization does

business, companies can rewrite some of the s/w to
support their business processes - Customization

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ERP Customization vs Configuration
Configuration :
Changing parameters in tables
 Isthe normal set-up of the software, such as
parameters, fields, and workflows. Do not require
changes to the source code
Customization :
Requires changes to the source code or write additional
code
May involve defining new database tables
Requires a higher level of technical sophistication

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ERP Customization vs Configuration

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Manage ERP Customization
• Select the right Solution
• Define a clear policy concerning customization
• Ensure business requirements are clearly defined
• Apply effective project management and governance
practices

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Challenges Faced By Symantec At System’s
Launch
• System not user friendly
• Users struggled with large amount of information and
increased number of steps
• Delay in placing orders
• Load of Support Team increased
• Support team unable to handle the load
• Not prepared with answers to many of the queries
• Increased dissatisfaction and delay

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Challenges Faced At The System’s Launch
• Launch of ERP coincided with launch of other
products by various divisions
• Added pressure on support team leading to further
delays
• New system of stock-keeping-unit(SKU) had
issues
• Many smaller partners of Symantec did not update the
new product codes hence their orders had to be
processed manually by Symantec
• Changes in the software licensing process led to
further delays for the customers

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Challenges Faced At The System’s Launch
• System was to show customers all their licenses
however system allowed same company to have
multiple accounts with name variations thus
leading to confusion and inaccurate data
• Channel partners faced difficulty in buying
products from distributors because of cryptically
described part numbers

Due to these mis-steps, Symantec in danger of losing its

customers

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Some Statistics
A study of 63 Fortune 500 companies by META
group revealed:
Average time taken for implementation: 23 months
Average Total Cost of Ownership(TCO): US$ 15 M
 US$ 300 M for the largest and US$ 400K for the
smallest organization
Drop in business performance in atleast 1 in 4 cases
Drop in performance lasted between 3-9 months
after going live

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Some Statistics
Other studies reveal:
1/3rd implementation fail to achieve business
benefits because its was considered an automation
program and not change management program
Only 10% ERP projects implemented in time and on
budget
Systems Integration and Change Management
represent 80% of the TCO
H/W and S/W represent 20% of TCO

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What Went Wrong With The Cycle
OF ERP Rollout
Weaknesses in System Integration Strategy
Planning had flaws
 Clashbetween ERP and new product rollout
 Changes in the licensing process

Design and testing flaws

 Multiple company codes to track licenses

 Cryptically described part numbers

 Ineffective Process changes
 Increased number of steps to create orders

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What Went Wrong WithThe Cycle
OF ERP Rollout
Training
Call center employees were not fully trained to handle
the queries
FAQs etc not ready for reference
Change Management
Managing customer expectations on the stability and
productivity curve of the new system
Expectation management
Communication to their partners, customers
Importance of updating new codes for SKU
Smaller partners left out from the communications

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ERP And Change Management
ERP
Implementa
tion

Technol Strateg
ogy y

Process People

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Organizational Change Management
 Three perspectives
 Formal / Strategic
 Political
 Cultural

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Strategic ERP Implementation Choices
Timeline
Big Bang Implementation
Phased (Roll Out) Implementation
Mini Big Bang (Combination of big bang and roll-out)
Staff/Resources
Outsourcing
In-house
Customization Level

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Hidden Costs of ERP Implementation
 Training
 Integration and testing
 Customisation
 Data conversion
 Consultants
 Replacing your best and brightest staff
 System may suffer from “weakest link” problem due to
inefficiency of one department affecting others
 ROI takes much longer
 Post-ERP depression (because of performance degradation)

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Supply Chain Management
Supply Chain And Management
Supply Chain
 Network of organizations and business processes for
procuring raw materials, transforming these materials into
intermediate and finished products and distributing the
finished products to customers
Suppliers Manufacturers Warehouses & Customers
Distribution Centers

Transportation Transportation
Material Costs Costs Costs Transportation
Manufacturing Costs Inventory Costs Costs
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 Supply Chain

Internal Supply Chain

Company

Integration can reduce the bullwhip effect

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 Supply Chain

Supply Chains vary depending on type, complexity and

perishability of the product

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 Supply Chain Management
Integrating management practices and IT to optimize
information and product flows among the business partners

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Supply Chains
Demand driven Supply Chains
Agile and Responsive Supply Chains
Global Supply Chains

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 Demand Driven (Push- Versus
Pull)-Based Supply Chain Models
(Build-to-Stock)

(Build-to-Order)

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Agile Supply Chain
Network based
EDI and internet enable
partners in the supply chain
to act upon the real demand
Process integration
Collaborative working
between buyers and
suppliers, joint product
development, common
systems and shared
information

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Flexible & Responsive SCs
Manage fluctuating Demand
Mass Customization
Postponement of differentiation
Strategy that delays product differentiation at a point
closer to the customer
Better standardization of the products, therefore the
complexity and specifications of each product can be
added in at the very last point of the production line

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Global Supply Chains- Opportunities
Globalization of business leading to global supply
chains
Leading to new trends in outsourcing and virtual
businesses
Contract manufacturing
Cheaper raw material procurement
Outsourcing of warehouse management
Transportation and logistics management

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Global Supply Chains
Geographic distances
Time differences
Different taxation laws
Government regulations
Performance standards may vary
Communication etc.

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Supply Chain Planning & Execution Systems
 Supply Chain Planning Systems
 Order Planning
 Advance Scheduling
 Demand Forecast Planning
 Distribution Planning
 Transportation Planning
 Supply Chain Execution Systems
 Order Commitments
 Production
 Component Replenishment
 Distribution Management
 Reverse Distribution
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Supply Chain Management
04/26/2020
• Generate Demand Forecast
• Develop optimum sourcing
& manufacturing plans
• Establish Inventory levels
• Decisions on where to store
finished goods
• Transportation mode
• Manage flow of products
through distribution
centers and warehouses
•Tracking physical status of
goods
• Management of materials,
warehouses, transportation
• Financial information
management
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Information Systems And SCM
Use of Intranets and Extranets
Web based SCM solutions for end-to-end visibility
Use Information systems to reduce inefficiencies in the
Supply Chain
SCM products like JDA software, Oracle, i2 and
Manugistics, Manhatten Associates

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Business Value Of Supply Chain Strategies
Better plant productivity
Supplier stability
Reduce operating costs
Reduce inefficiencies in the Supply Chain
Improve delivery service and execute JIT
Improve time to market
Increase asset utilization
Match demand with supply
 Increase asset utilization

Help make better purchasing and scheduling

decisions
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 Group 10
EAI Applications
Customer Relationship
Management
Customer Relationship Management
Why the need for customer management?
Cost of customer acquisition / retention
Growing competition, globally
Customers becoming more demanding
What is CRM?
Managing relationships with your customer, current and
potential
 Evaluating customer lifetime value and creating means

of achieving that value

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Dimensions Of CRM

CRM

Process People

Technol
ogy

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 CRM Software
Sales Force Automation
Focus on increasing sales with profitable
customers
• Prospect and contact information
• Product information
• product configuration capabilities
• Sales quote generation capabilities
• Information on customer’s past
purchases
• Sales forecasting
• Territory management
• Team selling

• Helps reduce Cost per Sales

• Cost of acquiring new customers
• Enable easy sharing of Customer & Prospect information between
Marketing, Sales & Delivery
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 CRM Software
• Greater productivity : Helps in handling
more calls per day
• Reduce transaction time: Decrease call
duration
• Higher quality of service at lower cost

Customer Service
Tools & information to improve
efficiency of call centers, help desks,
customer support staff
• Managing customer service request
• Web-based self service capabilities
• Contacting support staff

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 CRM Software

Marketing
• Support direct marketing campaigns by
capturing prospect and customer data
• Scheduling & tracking direct-marketing
mailings
• Tools to analyze customer & marketing
data
• Identifying profitable & unprofitable
customers
• Identifying opportunities for cross-
selling

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 CRM Software Capabilities

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 Operational & Analytical CRM
Two types of CRM applications
Operational
 Mostly with a Customer Interface or Sales Force support
activities
 Includes Collaboration

Analytical
 Analysis of data from
 Operational CRM

 Other Data Warehouses and analytical platforms

 Calculated CLTV

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 Analytical CRM Data Warehouse

• CLTV

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 Business Value Of CRM
Top line growth
Increased customer satisfaction
Customer retention and loyalty
Reduced direct marketing and sales costs
Higher customer profitability
Lower cost of customer acquisition and retention

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 Enterprise Applications Challenges
Long implementation periods
High implementation costs
Technological and business process changes
Employee acceptance to new job functions and
responsibilities
Multi-organization sharing of information and business
processes
High switching costs

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Enterprise Application Trends
Flexible, web-enabled Suites
 SAP
Business Suite, Oracle e-Business Suite, Microsoft’s
Dynamics Suite
 Use SOA and Web-services
Open source : Apache Open for Business, Openbravo
Cloud based On Demand systems
SAP cloud version of Business One
Salesforce.com, Siebel, Microsoft Dynamics, SAP ByDesign,
Oracle ERP Cloud
Business Intelligence is embedded in Enterprise Applications
SAP Business Objects, Oracle BI Enterprise edition
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Q&A