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Chapter 7
Enterprise Systems
Fox Lake Country Club has a problem• Defective business processes could result in
unhappy customer• Fox Lake’s business processes needs fixing• Mike Stone’s (facilities manager) renovation
plans interfere with scheduled weddings• No body informed wedding planner, Anne
Foster
This Could Happen to You: “Maybe so, but Nobody Told Me”
Scenario Video
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-2
Q1. How do information systems vary by scope?
Q2. When are information silos a problem?
Q3. How do enterprise information systems eliminate silos?
Q4. How do CRM, ERP, and EAI support enterprise systems?
Q5. What are the challenges when implementing new enterprise systems?
Study Questions
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-3
Q1: How Do Information Systems Vary by Scope?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-4
Q2: When Are Information Silos a Problem?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-5
Fox Lake Country Club Departmental Goals and Silos
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-6
Departmental Information Systems: Islands of Automation
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-7
What Are Common Departmental Applications?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-8
Problems of Silos Created in Isolation
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Q3: How Do Enterprise Information Systems Eliminate Silos?
Central database
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An Enterprise System for Patient Discharge
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-11
All data in
Central databas
e
7-12
Business Process Reengineering (BPR)
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Q4: How Do CRM, ERP, and EAI Q4: How Do CRM, ERP, and EAI Support Enterprise Systems?Support Enterprise Systems?
Help organizations fundamentally Help organizations fundamentally rethink how they do work to rethink how they do work to dramatically improve customer dramatically improve customer service, cut operational costs, and service, cut operational costs, and become world-class competitorsbecome world-class competitors
Complex, in-house developed Complex, in-house developed applications became too costly to build applications became too costly to build and maintainand maintain
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-13
Q4: How Do CRM, ERP, and EAI Support Enterprise Systems? (cont’d)
Inherent processes
• Pre-designed procedures for using software products
• Saves organizations from expensive and time-consuming business process reengineering
• Based on industry best practices
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-14
PeopleSoft—licensed payroll and limited capability HRM systems
Siebel—licensed sales lead tracking and management system
SAP—licensed enterprise resource management
ERP VendorsERP Vendors
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-15
A suite of applications, a database, and a A suite of applications, a database, and a set of inherent processes for managing all set of inherent processes for managing all interactions with a customer, from lead interactions with a customer, from lead generation to customer servicegeneration to customer service
Customer Relationship Management Customer Relationship Management (CRM)(CRM)
Customer-centric ability
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-16
Major Components of a CRM Application
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Suite of Suite of applications, applications, database, and set of database, and set of inherent processes inherent processes for consolidating for consolidating business operations business operations into single, into single, consistent, consistent, computing platformcomputing platform
Enterprise Resource Planning (ERP)
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Collaborative
Management
Requirements Gaps
Transition
Problems
Employee Resistanc
e
Q5: What Are the Challenges When Implementing New Enterprise Systems?
•ChallenChallengesges
•DifficultDifficulty y
•ExpenseExpense
•RiskRisk
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-19
• Careful planning and substantial training critical
Transition
problems • Change requires effort and creates fear
• Senior level management must communicate need for change to organization, and must re-iterate
• Train key users ahead of time to create positive buzz about new system
• Video demonstrations of employees successfully using new system
• Encourage change with extra inducements
Employee
resistance
Challenges of ERP Implementation
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-20
Q1. How do information systems vary by scope?
Q2. When are information silos a problem?
Q3. How do enterprise information systems eliminate silos?
Q4. How do CRM, ERP, and EAI support enterprise systems?
Q5. What are the challenges when implementing new enterprise systems?
How does the knowledge in this chapter help Fox Lake and you?
Active Review
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-21