Traditional “Silo” View of Information Systems
•Within the business:
There are functions, each having its uses of information systems •Outside the organization’s boundaries:
There are customers and vendors
Functions tend to work in isolation.
Traditional View of Systems:
Systems for Enterprise-Wide Process Integration:
•Designed to support organization-wide process coordination and integration. •Consist of :
•Supply chain management systems
•Customer relationship management systems
•Knowledge management systems
•All these enterprise applications integrate a related set of functions and business processes to enhance the performance of the organization as a whole.
INTEGRATING FUNCTIONS AND BUSINESS PROCESSES:
Introduction to Enterprise Applications:
Enterprise Application Architecture
•Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single information system for organization-wide coordination and integration of key business processes. •Information that was previously fragmented in different systems can seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas.
What Are Enterprise Systems?
•Enterprise Resource Planning (ERP) systems
•Interdependent software modules with a common central database that support basic internal business processes for finance and accounting, human resources, manufacturing and production, and sales and marketing Gives a company an integrated real-time view of its core business processes • ERP software suites typically consist of integrated modules of… •Manufacturing
•Human Resource Management
•Enables data to be used by multiple functions and business processes for precise organizational coordination and control. •Serves as a cross-functional enterprise backbone that integrates & automates many internal business processes and information systems. •Helps companies gain the efficiency, agility, & responsiveness needed to succeed today. SELECTION OF ERP:
•ERP procurement & successful implementation are very costly affairs. •Implementation involves risk, risk is due to changes, and benefits are not immediate. •Investment ?
•Is a strategic decision- long term decision, difficult to get reversed? Vendor Evaluation
•Business strength of the vendor
•Product share in total business of the vendor
•R & D investment in the product
•Future plans of the vendor
•Market reach & resource strength of the vendor.
•Client server architecture & its implementation – two tier or three tier •Front end tools & back end data based management system tools for the data, process & presentation management. •Interface mechanism; data transfer, real time access.
•Use of case tools, screen generators, report writers & screen painter. •Support system technologies like bar coding, EDI, imaging, communication & network. •Downloading to PC based package, MS-office, etc.
•Hardware - Software configuration management.
Difficulty in selecting ERP:
•Selection is difficult by an internal, better to approach the external consultants. •ERP package may be cheaper, but may not fulfill the requirement. •Some take a lot of time in implementation.
•Validated information on the vendor.
•Objective of the organization may not be clear.
ERP implementation issues
•Technical and Business issues:
•Implementation effort will be bigger than ever talked about or even imagined. We are yet to hear from an organization who have implemented ahead of schedule and under budget. •Users need to become more computer literate.
•Many more tasks will be automated. Automation will significantly reduce the...