10-1 McGraw-Hill/Irwin

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10-1 McGraw-Hill/Irwin

  1. 1. Business Driven Information Systems 2e CHAPTER 10 ENTERPRISE RESOURCE PLANNING AND COLLABORATION SYSTEMS
  2. 2. ENTERPRISE RESOURCE PLANNING <ul><li>Enterprise resource planning (ERP) – integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operations </li></ul><ul><li>Keyword in ERP is “enterprise” </li></ul>
  3. 3. ENTERPRISE RESOURCE PLANNING <ul><li>Sample data from a sales database </li></ul>
  4. 4. ENTERPRISE RESOURCE PLANNING <ul><li>Sample data from an accounting database </li></ul>
  5. 5. ENTERPRISE RESOURCE PLANNING <ul><li>Sample data from a sales database </li></ul>
  6. 6. Enterprise Resource Planning Systems (ERP) <ul><li>Internally focused systems are designed to support the internal operations of the firm </li></ul><ul><ul><li>Provide a central data repository common to all corporate users </li></ul></ul><ul><ul><li>Share a common user interface </li></ul></ul><ul><ul><li>Allow the sharing of information regardless of location </li></ul></ul><ul><li>Externally focused systems can streamline communications with customers and suppliers as well </li></ul>
  7. 7. ENTERPRISE RESOURCE PLANNING <ul><li>Reasons ERP Systems are Powerful Organizational Tools </li></ul><ul><ul><li>ERP is a logical solution to the mess of incompatible applications that have sprung up in most businesses </li></ul></ul><ul><ul><li>ERP is used to avoid the pain and expense of fixing legacy systems </li></ul></ul><ul><ul><li>ERP addresses the need for global information sharing and reporting </li></ul></ul>
  8. 8. System Types System Evolution Standalone Systems Integrated Systems (Intraorganizational) Integrated Systems (Interorganizational)
  9. 9. Standalone (Legacy) Systems <ul><li>Designed to support one or a few related business functions </li></ul><ul><li>Little or no integration with other organizational systems so information is not readily shared between systems </li></ul><ul><li>Often run on a variety of HW and SW platforms, also complicating compatibility </li></ul>
  10. 10. Legacy (stand-alone) Systems – information is not readily shared between systems (i.e. Inbound Logistics inventory information is not shared with Operations)
  11. 11. ERP Systems – Information is stored in a single data repository and can be accessed and updated by all functional systems
  12. 12. The Heart of ERP <ul><li>At the heart of all ERP systems is a database </li></ul>
  13. 13. The Heart of ERP <ul><li>ERP systems help automate business processes </li></ul>
  14. 14. Core and Extended ERP Components <ul><li>Internally focused ERP Systems include: </li></ul><ul><ul><li>Core ERP components – traditional components included in most ERP systems - they primarily focus on internal operations (intraorganizational) </li></ul></ul><ul><li>Externally focused ERP Systems include: </li></ul><ul><ul><li>Extended ERP components – extra components that meet the organizational needs not covered by the core components - primarily focus on external operations (interorganizational) </li></ul></ul>
  15. 15. Core and Extended ERP Components
  16. 16. CORE ERP COMPONENTS <ul><li>Three most common core ERP components </li></ul><ul><ul><li>Accounting and finance </li></ul></ul><ul><ul><li>Production and materials management </li></ul></ul><ul><ul><li>Human resource </li></ul></ul>
  17. 17. Accounting and Finance ERP Components <ul><li>Accounting and finance ERP component – manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management </li></ul>
  18. 18. Production and Materials Management ERP Components <ul><li>Production and materials management ERP component – handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control </li></ul>
  19. 19. Human Resource ERP Component <ul><li>Human Resource ERP component – tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities </li></ul>
  20. 20. EXTENDED ERP COMPONENTS <ul><li>Extended ERP components include: </li></ul><ul><ul><li>Business intelligence (BI) </li></ul></ul><ul><ul><li>Customer relationship management (CRM) </li></ul></ul><ul><ul><li>Supply chain management (SCM) </li></ul></ul><ul><ul><li>E-business </li></ul></ul>
  21. 21. EXTENDED ERP COMPONENTS <ul><li>Business Intelligence – information that people use to support their decision-making efforts </li></ul><ul><li>Customer Relationship Management (CRM) - managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and the organization’s profitability </li></ul><ul><li>Supply Chain Management (SCM) – management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability </li></ul>
  22. 22. E-Business Components <ul><li>E-business – conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners </li></ul><ul><li>E-business components include e-logistics and e-procurement </li></ul><ul><ul><li>E-logistics – manages the transportation and storage of goods </li></ul></ul><ul><ul><li>E-procurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet </li></ul></ul>
  23. 23. INTEGRATING SCM, CRM, AND ERP <ul><li>SCM, CRM, and ERP are the backbone of business! </li></ul><ul><li>Integration of these applications is the key to success for many companies </li></ul><ul><li>Integration allows the unlocking of information to make it available to any user, anywhere, anytime </li></ul>
  24. 24. ERP VENDOR OVERVIEW
  25. 25. INTEGRATING SCM, CRM, AND ERP <ul><li>SCM and CRM market overviews </li></ul>
  26. 26. INTEGRATING SCM, CRM, AND ERP <ul><li>General audience and purpose of SCM, CRM and ERP </li></ul>
  27. 27. THE CONNECTED CORPORATION <ul><li>Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together </li></ul><ul><ul><li>Middleware – several different types of software which sit in the middle of and provide connectivity between two or more software applications </li></ul></ul><ul><ul><li>Enterprise application integration (EAI) middleware – packages together commonly used functionality which reduces the time necessary to develop solutions that integrate applications from multiple vendors </li></ul></ul>
  28. 28. Integration Tools <ul><li>Data points where SCM, CRM, and ERP integrate </li></ul>
  29. 29. MEASURING ERP SUCCESS <ul><li>Balanced scorecard – a management and measurement system that enables organizations to clarify their vision and strategy and translate them into action </li></ul><ul><li>Balanced scorecard views the organization from four perspectives </li></ul><ul><ul><li>Learning and growth </li></ul></ul><ul><ul><li>Internal business process </li></ul></ul><ul><ul><li>Customer </li></ul></ul><ul><ul><li>Financial </li></ul></ul>
  30. 30. MEASURING ERP SUCCESS Using the Balanced Scorecard
  31. 31. ERP SOFTWARE <ul><li>Successful ERP projects share 3 attributes </li></ul><ul><ul><li>Proper business analysis </li></ul></ul><ul><ul><ul><li>Successful companies spend up to 10% of the project budget on a business analysis </li></ul></ul></ul><ul><ul><li>Overall fit </li></ul></ul><ul><ul><ul><li>Off the rack </li></ul></ul></ul><ul><ul><ul><li>Off the rack and tailored to fit </li></ul></ul></ul><ul><ul><ul><li>Custom made/designed </li></ul></ul></ul><ul><ul><li>Solid implementation plans </li></ul></ul><ul><ul><ul><li>A plan is needed to monitor the quality, objectives, and timelines </li></ul></ul></ul>
  32. 32. ERP BENEFITS <ul><li>Common ERP benefits: </li></ul><ul><li>Integrate financial information </li></ul><ul><li>Integrate customer order information </li></ul><ul><li>Standardize human resource information </li></ul><ul><li>Standardize and speed up manufacturing processes </li></ul><ul><li>Reduce inventory </li></ul>
  33. 33. Common ERP Benefits, cont. <ul><li>Eliminate costly, inflexible legacy systems - replace multiple systems with a single integrated set of applications </li></ul><ul><li>Improve work processes - supports best practices – the most efficient and effective ways to complete a business process </li></ul>
  34. 34. Common ERP Benefits, cont. <ul><li>Increase data access for decision making </li></ul><ul><ul><li>Better customer service </li></ul></ul><ul><ul><li>Strengthening of customer/supplier relationships </li></ul></ul><ul><ul><li>Generate new business opportunities </li></ul></ul><ul><li>Upgrade your technology infrastructure </li></ul><ul><ul><li>Upgrade and standardize HW, operating systems, and databases </li></ul></ul><ul><ul><li>Reduce incompatibilities </li></ul></ul>
  35. 35. ERP RISKS/COSTS
  36. 36. ERP RISKS/COSTS, cont. <ul><li>Expense & time </li></ul><ul><ul><li>Can take years & millions of $$$ </li></ul></ul><ul><ul><li>Many failures </li></ul></ul><ul><li>May require radical changes to conform with the best practices supported by the ERP system </li></ul>
  37. 37. TEAMS, PARTNERSHIPS, AND ALLIANCES <ul><li>Organizations create and use teams, partnerships, and alliances to: </li></ul><ul><ul><li>Undertake new initiatives </li></ul></ul><ul><ul><li>Address both minor and major problems </li></ul></ul><ul><ul><li>Capitalize on significant opportunities </li></ul></ul><ul><li>Organizations create teams, partnerships, and alliances both internally with employees and externally with other organizations </li></ul>
  38. 38. TEAMS, PARTNERSHIPS, AND ALLIANCES <ul><li>Organizations form alliances and partnerships with other organizations based on their core competencies </li></ul><ul><ul><li>Core competency – an organization’s key strength; a business function that it does better than any of its competitors </li></ul></ul><ul><ul><li>Core competency strategy – a strategy in which the organization chooses to focus specifically on its core competency and forms partnerships with other organizations to handle nonstrategic business processes </li></ul></ul>
  39. 39. TEAMS, PARTNERSHIPS, AND ALLIANCES <ul><li>Information technology can make a business partnership easier to establish and manage </li></ul><ul><ul><li>Information partnership – occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer </li></ul></ul><ul><li>The Internet has dramatically increased the ease and availability for IT-enabled organizational alliances and partnerships </li></ul>
  40. 40. COLLABORATION SYSTEMS <ul><li>Collaboration system – an IT-based set of tools that supports the work of teams by facilitating the sharing & flow of information </li></ul><ul><li>Allow people, teams, and organizations to leverage and build upon the ideas of & talents of staff, suppliers, customers & business partners </li></ul><ul><li>Support complex interactions between people across different functions, locations, time zones </li></ul>
  41. 41. COLLABORATION SYSTEMS <ul><li>Two categories of collaboration </li></ul><ul><ul><li>Unstructured collaboration (information collaboration ) – can improve personal productivity, reducing time spent searching for information; ex. document exchange, shared whiteboards, discussion forums, and e-mail </li></ul></ul><ul><ul><li>Structured collaboration (process collaboration) - involves shared participation in business processes such as workflow in which knowledge is hard coded as rules, improving automation and routing of information </li></ul></ul>
  42. 42. COLLABORATION SYSTEMS <ul><li>Collaboration systems include: </li></ul><ul><ul><li>Knowledge management systems </li></ul></ul><ul><ul><li>Content management systems </li></ul></ul><ul><ul><li>Workflow management systems </li></ul></ul><ul><ul><li>Groupware systems </li></ul></ul>
  43. 43. COLLABORATION: KNOWLEDGE MANAGEMENT <ul><li>Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions </li></ul><ul><li>Knowledge management system (KMS) – supports the capturing, organization, and dissemination (use) of knowledge (an organization’s “know-how”) </li></ul>
  44. 44. COLLABORATION: KNOWLEDGE MANAGEMENT <ul><li>Knowledge Assets – all underlying skills, routines, practices, principles, formulas, heuristics, and intuitions </li></ul><ul><li>Knowledge-based assets fall into two categories </li></ul><ul><ul><li>Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the help of IT </li></ul></ul><ul><ul><li>Tacit knowledge - knowledge contained in people’s heads </li></ul></ul>
  45. 45. COLLABORATION: KNOWLEDGE MANAGEMENT <ul><li>Best Practices - Procedures and processes that are widely accepted as being among the most effective and/or efficient </li></ul><ul><li>Primary Objective of a KMS - how to recognize, generate, store, share, manage this tacit knowledge (Best Practices) for deployment and use </li></ul>
  46. 46. COLLABORATION: KNOWLEDGE MANAGEMENT <ul><li>Two common practices for transferring or recreating tacit knowledge: </li></ul><ul><ul><li>Shadowing – less experienced staff observe more experienced staff to learn how their more experienced counterparts approach their work </li></ul></ul><ul><ul><li>Joint problem solving – a novice and expert work together on a project </li></ul></ul>
  47. 47. COLLABORATION: KNOWLEDGE MANAGEMENT <ul><li>Knowledge management systems include : </li></ul><ul><ul><li>Knowledge repositories (databases) </li></ul></ul><ul><ul><li>Expertise tools </li></ul></ul><ul><ul><li>E-learning applications </li></ul></ul><ul><ul><li>Discussion and chat technologies </li></ul></ul><ul><ul><li>Search and data mining tools </li></ul></ul>
  48. 48. COLLABORATION: KNOWLEDGE MANAGEMENT <ul><li>Finding out how information flows through an organization </li></ul><ul><ul><li>Social networking analysis (SNA) – a process of mapping a group’s contacts (whether personal or professional) to identify who knows whom and who works with whom </li></ul></ul><ul><ul><li>SNA provides a clear picture of how employees and divisions work together and can help identify key experts/individuals who possess needed knowledge </li></ul></ul>
  49. 49. Knowledge Management Benefits <ul><li>Reasons why organizations launch knowledge management programs </li></ul>
  50. 50. Knowledge Management Challenges <ul><li>Getting employee buy-in </li></ul><ul><li>Focusing too much on technology </li></ul><ul><li>Forgetting the goals </li></ul><ul><li>Dealing with knowledge overload and obsolescence </li></ul>
  51. 51. COLLABORATION: CONTENT MANAGEMENT <ul><li>Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment </li></ul><ul><li>Types of CMS systems include: </li></ul><ul><ul><li>Document management systems (DMS) </li></ul></ul><ul><ul><li>Digital asset management systems (DAM) </li></ul></ul><ul><ul><li>Web content management systems (WCM) </li></ul></ul>
  52. 53. COLLABORATION: CONTENT MANAGEMENT <ul><li>Content management system vendor overview </li></ul>
  53. 54. COLLABORATION: CONTENT MANAGEMENT <ul><li>Wikis - Web-based tools that make it easy for users to add, remove, and change online content </li></ul><ul><li>Business wikis - collaborative Web pages that allow users to edit documents, share ideas, or monitor the status of a project </li></ul>
  54. 55. COLLABORATION: WORKFLOW MANAGEMENT <ul><li>Work activities can be performed in series or in parallel that involves people and automated computer systems </li></ul><ul><li>Workflow – defines all the steps or business rules, from beginning to end, required for a business process </li></ul><ul><li>Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process </li></ul>
  55. 56. COLLABORATION: WORKFLOW MANAGEMENT <ul><li>Messaging-based workflow system – sends work assignments through an e-mail system </li></ul><ul><li>Database-based workflow system – stores documents in a central location and automatically asks the team members to access the document when it is their turn to edit the document </li></ul>
  56. 57. COLLABORATION: GROUPWARE <ul><li>Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing; enables people to work together more effectively </li></ul><ul><li>Dimensions of Groupware Support </li></ul><ul><ul><li>Time Dimension </li></ul></ul><ul><ul><li>Location Dimension </li></ul></ul>
  57. 58. COLLABORATION: GROUPWARE Time Dimension <ul><li>Asynchronous Groupware – Systems that do not require users to be on the system working at the same time; examples: e-mail, newsgroups, workflow automation, group calendars, collaborative writing tools </li></ul><ul><li>Synchronous Groupware – Systems that allow and support simultaneous group interactions; examples: shared whiteboards, electronic meeting support systems, video communication systems </li></ul>
  58. 59. COLLABORATION: GROUPWARE Location Dimension <ul><li>Co-located - Systems that support users working at the same place </li></ul><ul><li>Distance - Systems that allow and support users working at different locations; different place </li></ul>
  59. 60. COLLABORATION: GROUPWARE <ul><li>Groupware – supports team interactions </li></ul>
  60. 61. COLLABORATION: GROUPWARE <ul><li>Same time (synchronous) & same place (co-located) </li></ul><ul><ul><li>technological support for live meetings in electronic meeting facilities </li></ul></ul><ul><ul><ul><li>Decision rooms </li></ul></ul></ul><ul><ul><ul><li>“ War” rooms </li></ul></ul></ul>
  61. 62. COLLABORATION: GROUPWARE A DECISION ROOM
  62. 63. General Characteristics/Features of a Groupware System to support decision making <ul><li>Idea generation/brainstorming </li></ul><ul><li>Parallel communication </li></ul><ul><li>Idea organization </li></ul><ul><li>Prioritization, ranking </li></ul><ul><li>Anonymous input </li></ul><ul><li>Voting </li></ul><ul><li>Reduction of negative group behaviors </li></ul><ul><li>Enables larger group size </li></ul><ul><li>Access to external information </li></ul><ul><li>Automated record keeping </li></ul>
  63. 64. COLLABORATION: GROUPWARE <ul><li>Different time (asynchronous) & same place (co-located) </li></ul><ul><ul><li>Asynchronous technologies to support communication (e-mail, voice mail, fax, text messaging, newsgroups, group calendars, workflow management systems) </li></ul></ul><ul><ul><li>Project room as “home base” </li></ul></ul>
  64. 65. COLLABORATION: GROUPWARE <ul><li>Same time (synchronous) & different place (distance) </li></ul><ul><ul><li>Conference calls </li></ul></ul><ul><ul><li>Instant messaging </li></ul></ul><ul><ul><li>On-line chat </li></ul></ul><ul><ul><li>Videoconferences </li></ul></ul><ul><ul><li>Web conferences (Web Ex, web seminars) </li></ul></ul>
  65. 66. Videoconferencing <ul><li>Videoconference - a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously </li></ul>
  66. 67. Web Conferencing <ul><li>Web conferencing - blends audio, video, and document-sharing technologies to create virtual meeting rooms where people “gather” at a password-protected Web site </li></ul>
  67. 68. COLLABORATION: GROUPWARE <ul><li>Different time (asynchronous) & different place (distance) </li></ul><ul><ul><li>Asynchronous technologies to support communication (e-mail, voice mail, fax, text messaging, newsgroups, group calendars, workflow management systems) </li></ul></ul>
  68. 69. COLLABORATION: GROUPWARE <ul><li>Groupware System Advantages : </li></ul><ul><ul><li>Facilitate communication (faster, easier, clearer, more persuasive) </li></ul></ul><ul><ul><li>Enable telecommuting </li></ul></ul><ul><ul><li>Reduce travel costs </li></ul></ul><ul><ul><li>Share expertise </li></ul></ul><ul><ul><li>Allow formation of groups based on interest and expertise, regardless of location of participants </li></ul></ul><ul><ul><li>Reduce time and cost of group work </li></ul></ul><ul><ul><li>Facilitate group problem solving </li></ul></ul><ul><li>Groupware System Disadvantages : </li></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Complexity </li></ul></ul><ul><ul><li>Change </li></ul></ul>
  69. 70. New Collaboration Technologies <ul><li>DiamondTouch table – a multi-user, touch and gesture activated screen to support small group collaboration </li></ul><ul><li>http:// www.merl.com/projects/DiamondTouch </li></ul><ul><li>http:// www.youtube.com/watch?v =t35HXAjNW6s </li></ul><ul><li>WarCraft Video clip http:// www.youtube.com/watch?v =LXAqdh4-hcw&search= Touchscreenwarcraft </li></ul><ul><li>GoogleEarth Video Clip http:// www.youtube.com/watch?v =J5ra4CxNb80 </li></ul>
  70. 71. New Collaboration Technologies <ul><li>Milan MultiTouch Screen </li></ul><ul><li>http://link.brightcove.com/services/link/bcpid932579976/bclid932553050/bctid933742930 </li></ul><ul><li>Perceptive Pixel MultiTouch Screen </li></ul><ul><li>http://link.brightcove.com/services/link/bcpid936988771/bclid933081120/bctid933203849 </li></ul>

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