FUNCTIONAL BUSINESS SYSTEMS

&
ENTERPRISE SYSTEMS
 Business Management Systems (BMSs)
• BMSs aid leadership teams by using technology to improve cross-
functional collaboration, clarify the relationship between steps in the
planning and implementation process, assign responsibilities, and
monitor progress toward objectives and outcomes
• Typical features or modules in a BMS include the following:
ORGANIZATIONAL LEVEL
 Business Functions vs Cross Functional
FBSs that do not
support cross-
functional
collaboration are an
impediment to
organizational
success
Workflows and
data flows between
departments that
are not coordinated
result in
delays, errors, poor
customer service,
and higher costs
Business Processes
it becomes possible for
the company to
monitor and evaluate
progress toward
goals and objectives
established during the
Cross-Functional strategic planning
Coordination and process
Integration
It becomes easier to
SOP, to maintain: identify problems or
Data security barriers to achieving
Data validity objectives and develop
Data integrity solutions to those
problems
 Transaction Processing Systems
• Transaction processing is information processing that is divided into
distinct, undividable operations called transactions. While transaction
processing certainly applies to the financial transactions that take
place in a business (i.e., the data generated by a store cash register),
transaction processing is used in the FBSs of all areas.
• Transaction processing systems (TPSs) are software and/or hardware
technologies that collect, monitor, store, process, and distribute
transactional data according to certain criteria referred to as the ACID
test (atomicity, consistency, isolation, and durability)
Transaction Processing Systems
Online Transaction Processing Systems
Production and Operations Management Systems
SCM was adopted as a way to coordinate all of
the factors that contribute to customer value,
including supplier relationships, logistics,
inventory management across the supply
chain, order fulfillment, and so on.

In some companies, manufacturing simply

became a supply chain factor that could be
Performed internally, outsourced or both, as
conditions in different markets evolved.

Production and operations are sometimes

viewed in the larger context of SCM, and ISs
have been developed to support
organizations with traditional production
and operations management (POM) as well
as SCM processes.
Transportation Management
Systems
• Transportation management systems
(TMSs) are relied on to handle
transportation planning, which
includes shipping consolidation, load
and trip planning, route planning,
fleet and driver planning, and carrier
selection.
• TMSs also support vehicle
management and accounting
transactions.
Logistics Management
• Logistics management deals with
the coordination of several
complex processes, namely
ordering, purchasing or
procurement, inbound logistics,
and outbound logistics activities
• Inbound logistics refers to
receiving inventory
• Outbound logistics refers to
shipping inventory
Logistics Management Systems:
• Optimize transportation
operations.
• Coordinate with all suppliers.
• Integrate supply chain
technologies.
• Synchronize inbound and outbound
flows of materials or goods.
• Manage distribution or transport
networks.

These
These systems
systems enable
enable real-time
real-time
monitoring
monitoring and
and tracking
tracking of
of supply
supply chain
chain
shipments,
shipments, schedules,
schedules, and
and orders.
orders.
 Inventory control systems minimize the
Inventory Control Systems following three cost categories:
• Inventory carrying costs
• Inventory ordering costs
• Cost of shortages

• Inventory control systems are stock

control or inventory management systems.
• Safety stock is extra inventory used as a
buffer to reduce the risk of stockouts. It is
also called buffer stock.
• Stockouts inventory shortage arising from
unexpected demand, delays in scheduled
delivery, production delays, or poor Inventory Control Systems help companies balance inventory
inventory management. ordering and carrying costs against the costs inventory shortages.
 Quality
Quality Control
Control Systems
Systems
Inventory Control Systems -- Manufacturing
Manufacturing quality
quality control
control (QC)
(QC) systems
systems cancan be
be
stand-alone
stand-alone systems
systems oror part
part of
of an
an enterprise-wide
enterprise-wide
Just-in-Time Inventory Management Systems total
total quality
quality management
management (TQM)(TQM) effort.
effort.
- JIT inventory management attempts to minimize holding -- QC
QC systems
systems provide
provide data
data about
about the
the quality
quality of
of incoming
incoming
costs by not taking possession of inventory until it is materials
materials and
and parts,
parts, as
as well
well as
as the
the quality
quality of
of in-process
in-process
needed in the production process. semifinished
semifinished and
and finished
finished products.
products.
- With JIT, costs associated with carrying large inventories at -- These
These systems
systems record
record the
the results
results of
of all
all inspections
inspections and
and
any given point in time are eliminated. compare
compare actual
actual results
results to
to expected
expected results.
results.
- Because of the higher risk of stockouts, JIT requires
accurate and timely monitoring of materials’ usage in
production.

Lean Manufacturing Systems

Objectives:
- to eliminate waste of any kind, that is, to eliminate
anything that does not add value to the final product.
Holding inventory that is not needed very soon is seen as
waste, which adds cost but not value.
- to empower workers so that production decisions can be
made by those who are closest to the production
processes.
Other Production/Operations Technologies
- Many other areas of production/ operations are
improved by ISs and tools.
- Production planning optimization tools, product
routing and tracking systems, order management,
factory layout planning and design, and other tasks can
be supported by POM subsystems.
Computer-integrated Manufacturing &
Manufacturing Execution Systems
Computer-integrated manufacturing (CIM) Systems
- CIM control day-to-day shop floor activities
- CIM helps production managers better use
information to execute manufacturing plans.
Manufacturing execution systems (MESs)
- MESs manage operations on the shop floors of
factories.
- Some MESs schedule a few critical machines, while
others manage all operations on the shop floor.
- Functions of MES programs include the following:
compiling a bill of materials, resource management
and scheduling, preparing and dispatching
production orders, preparing work-in-progress
(WIP) reports, and tracking production lots.
Sales and
Marketing Systems

Data-Driven Marketing

Sales and Distribution Channels

Social Media Customer Service

Marketing Management
Sales and marketing systems and subsystems
 Accounting, Finance,
and Regulatory Systems

Accounting Software Packages

• Accounting software is a foundational technology for
many companies, and as a business grows, powerful
and effective accounting solutions are critical.
• Most accounting software packages offer the same
basic features necessary for managing finances:
accounts receivable (A/R), accounts payable (A/P),
general ledger, billing and invoicing, purchase and
sales orders, and reporting. In addition to basic
functionality, the top accounting solutions offer
additional features to give users more power,
flexibility, and customization.
• Often, accounting solutions are closely integrated
with enterprise systems, such as ERP systems that
include an extensive accounting module.
 Accounting, Finance,
and Regulatory Systems

Factors that make companies targets for fraud.

 Human Resource Systems, Compliance,
and Ethics
HR Monitors Compliance with Antidiscrimination Employment Laws
• HRISs have been moved to intranets and clouds—wherein HR
applications are leased in SaaS arrangements. Using intranets,
HR applications have shifted many routine tasks to employees
who log in to manage their retirement benefits, payroll
deductions, direct deposits, health-care benefits, and the like.
• When employees manage their own HR services, HR
professionals can focus on legal and compliance responsibilities,
employee development, talent management, hiring, and
succession planning.
HR management activities.
 Enterprise Systems
An Enterprise system is a large-scale
application software package that supports
business processes, information flows,
reporting, and data analytics in complex
organizations.

Enterprise systems not only integrate

systems within the organization but also
link organizations with their suppliers,
business partners, and customers.
Enterprise Systems

Integration of enterprise systems is achieved via access to shared data

 Implementation Challenges of Enterprise Systems

• Implementing an enterprise system is:

 complex;
 time-consuming; and
 typically requires the help of a consulting firm, vendor, or value-
added reseller (VAR). Integrating legacy systems with cloud based
applications is complex.
• Much of the complexity is due to getting new apps or system modules
to interface with existing or legacy systems that are several
generations older.
 Investing in Enterprise Systems
Why many companies do not have the Three situations where changes are needed are as
resources to replace all their legacy systems? follows:
Enterprise Systems Insights
 Enterprise Resource Planning
(ERP)
• ERP is now a mature technology, whose core components have not changed much.
• What has changed are the way ERPs are deployed—on-premises, in the cloud, or as a managed service—and users’
expectations. The latest ERP solutions are designed with a focus on social collaboration, deployment flexibility, faster
response, and accessibility from mobile devices.
• They have touch-enabled user interfaces designed to work with all touch-screen devices.

New apps and mobile add-ons enable the following:

Acquiring an
ERP
Most Important Factors for ERP Project Success
ERP – Key Success Factors
Supply Chain Management Systems
Steps in the Order Fulfillment Process
Innovations Driving Supply Chain Strategic Priorities
Innovations Driving
Supply Chain Technology is changing the traditional supply chain
Strategic Priorities into a digitized, 24/7 supply chain, referred
to as “always-on” supply chain.

Always-on supply chain is an

integrated set of supply networks
characterized by a continuous,
high-velocity flow of information
and analytics creating predictive,
actionable decisions to better
serve the customer 24/7.
 Customer Relationship
Management Systems

- CRM is a widely used and mature technology that can be

deployed on-premises or on-demand as a service or SaaS.
- The fierce competition among the big four CRM vendors
—Salesforce.com, SAP, Oracle, and Microsoft—motivates
innovation.
- Numerous successful CRM implementations have helped
transform the business, increased profit, and
strengthened customer loyalty.
- CRM can provide managers with a 360-degree view of
the customer relationship, enable real-time responses, Four CRM critical success factors
and improve sales productivity and predictability.
- However, CRM technology cannot transform or improve
anything on its own.
Common CRM Mistakes: How to Avoid
Them
Justifying
CRM
 Recommendations to Realize
Enterprise Social Platforms Business Value from Enterprise Social
Enterprise social platform is a private, company-owned
social media software application that promotes social
connectivity and collaboration with an organization and
enhances productivity and employee satisfaction.

Main Reasons for Greater Interest in Enterprise Social Platforms

 Sharepoint
SharePoint has the following social capabilities

Yammer is “Facebook for business.” The platform has features

similar to Facebook likes, newsfeeds, threaded conversation,
and direct messaging. This private social channel helps
employees, partners, and customers communicate; exchange
information; and collaborate across departments, locations,
and business apps.