Lesson Enterprise systems

Lesson Enterprise systems present the content: legacy system approach and the problems of information silos; enterprise system approach, improve business processes through enterprise systems; the challenges when implementing new enterprise systems.

Enterprise Systems nga.lethiquynh@ueh.edu.vn Study Questions Q1 What is legacy system approach and the problems of information silos? Q2 What is enterprise system approach? How to improve business processes through Enterprise Systems? Q3 What is ERP? Q4 What is CRM? Q5 What is SCM? Q6 What are the challenges when implementing new enterprise systems? BUSINESS INFORMATION SYSTEMS Q1 What is legacy system approach and the problems of information silos? BUSINESS INFORMATION SYSTEMS Information Systems in Enterprises Source: textbook[2], page 280 BUSINESS INFORMATION SYSTEMS Legacy System Approach Source: textbook[2], page 290 BUSINESS INFORMATION SYSTEMS Information Silos ► An information silo exists when data is isolated in separated information systems How Do Information Silos Arise? ► Data isolated in islands of automation ► Different department goals ► Different personal and workgroup needs ► Duplicate data as organization grows BUSINESS INFORMATION SYSTEMS Problems Created by Information Silos Source: textbook[1], page 212 BUSINESS INFORMATION SYSTEMS Q2 What is enterprise system approach? How to improve business processes through Enterprise Systems? BUSINESS INFORMATION SYSTEMS Enterprise System Approach Source: textbook[2], page 289 BUSINESS INFORMATION SYSTEMS Supporting Business Processes ► 10 Internally focused systems ► Support functional areas, business processes, and decision making within an organization ► New information (value) is added at every step Source: textbook[2], page 290 BUSINESS INFORMATION SYSTEMS Supply Chain Management ► Supply chain: the producers of supplies that a company uses ► Suppliers work with additional suppliers ► Supply network ► Problems with not collaborating effectively ► Information gets distorted ► Forecast errors add up, leading to degradation of profitability and poor customer service ► “Bullwhip effect” ► Goals of improving upstream information flows ► Accelerate product development ► Reduce costs associated with procuring raw materials BUSINESS INFORMATION SYSTEMS 34 Supply Network 35 Source: textbook[2], page 315 BUSINESS INFORMATION SYSTEMS Developing an SCM Strategy ► 36 SCM efficiency and effectiveness need to be balanced ► Efficiency—cost minimization ► Effectiveness—customer service maximization ► Tradeoffs—Supply chain strategy should match overall competitive strategy Source: textbook[2], page 321 BUSINESS INFORMATION SYSTEMS Emerging SCM Trends ► ► Enterprise portals—B2B marketplace ► Access point to proprietary information ► Productivity gains and cost savings Distribution portals ► ► Products from single supplier to many buyers Procurement portals ► Procurement of products between single buyer and multiple suppliers Source: textbook [2] BUSINESS INFORMATION SYSTEMS 37 Example: Distribution Portal ► ► Automation of business processes between supplier and multiple customers ► Before transaction ► During transaction ► After transaction Trading exchanges ► Equilibrium between buyers and sellers ► Vertical markets Source: http://www.dell.com BUSINESS INFORMATION SYSTEMS 38 Procurement Portal ► Automation of business processes between a buyer and multiple suppliers BUSINESS INFORMATION SYSTEMS 39 Trading Exchanges ► ► Small companies don’t have funds for SCM Trading exchanges provide a solution ► ► Operated by third-party vendors Revenue model ► Commission for each transaction ► Usage and association fees ► Advertising ► ► Many buyers and many sellers can come together Popular trading exchanges: ► www.scrapsite.com (steel) ► www.paperspace.com (paper) ► www.sciquest.com (medical equipment) BUSINESS INFORMATION SYSTEMS 40 Key Technologies for Enhancing SCM ► Extensible Markup Language (XML) ► ► Specifies rules for tagging elements Specifies how information should be used and interpreted ► ► ► ► ► … Useful for sharing data across applications over the web Possible replacement for EDI Customizable XML variations ► Extensible Business Reporting Language (XBRL) ► Publishing of financial information BUSINESS INFORMATION SYSTEMS 41 Radio Frequency Identification (RFID) ► 42 Replacement for standard bar codes ► Transceiver and antenna ► Line-of-sight reading not necessary ► RFID tags can contain more information than bar codes ► Diverse usage opportunities ► Scanning can be done from greater distance ► Passive tags—range of few feet ► Active tags—range of hundreds of feet Source: METRO AG BUSINESS INFORMATION SYSTEMS Use of RFID in Supply Chain Management 43 Pallet of inventory processed through an RFID gate Source: METRO AG BUSINESS INFORMATION SYSTEMS 44 Q6 What are the challenges when implementing new enterprise systems? BUSINESS INFORMATION SYSTEMS What Are the Challenges of Implementing and Upgrading Enterprise Information Systems? Source: textbook[1], page 230 BUSINESS INFORMATION SYSTEMS 45 Summary Q1 What is legacy system approach and the problems of information silos? Q2 What is enterprise system approach? How to improve business processes through Enterprise Systems? Q3 What is ERP? Q4 What is CRM? Q5 What is SCM? Q6 What are the challenges when implementing new enterprise systems? BUSINESS INFORMATION SYSTEMS 46 Additional Resources ► What is ERP ► What is CRM ► Salesforce CMR ► What is Supply chain management? ► Coca Cola Supply chain ► RFID ► XBRL BUSINESS INFORMATION SYSTEMS 47 ... new enterprise systems? BUSINESS INFORMATION SYSTEMS What Are the Challenges of Implementing and Upgrading Enterprise Information Systems? Source: textbook[1], page 230 BUSINESS INFORMATION SYSTEMS. .. Enterprise Systems? BUSINESS INFORMATION SYSTEMS Enterprise System Approach Source: textbook[2], page 289 BUSINESS INFORMATION SYSTEMS Supporting Business Processes ► 10 Internally focused systems. .. new enterprise systems? BUSINESS INFORMATION SYSTEMS Q1 What is legacy system approach and the problems of information silos? BUSINESS INFORMATION SYSTEMS Information Systems in Enterprises Source: