Enterprise information system (ICT)

8/8/2019 Enterprise information system (ICT)

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Information and CommunicationTechnology (ICT) -

ESP 1



What are enterprise wide systems?

Information systems that allow organisationsto integrate information across operations onan organisation-wide basis

As opposed to various business processesbeing supported by applications running ondifferent computing platforms

DIFFERENCE: integration and communication

ESP 2



Enterprise wide systems:

Allow organisations to wipe out some of the inefficiencies created by separateIS (known as legacy systems)

±Re entering information± Inability to share data between systems

±Duplication of data in differentdepartments

Adds a common data warehouse ±single place where all info is stored & accessed

ESP 3



Rather than information flowing from one departmentto next, data is accessed and updated, so nextbusiness activity can access whenever required

Sharing gives access to accurate, real timeinformation

Storing data in single place and making it available

empowers everyone to be aware of current state of business and perform jobs better

Central repository of info common to all users

Common user interface ± share info seamlessly

Globablisation of customer and supplier networksgiven new opportunities and methods to conductbusiness

The need to give good quality customer service

ESP 4



R ecommendations for Success

Get Help from Outside Experts

Implementation success is enabled by deep application

experience and access to supporting tools and methods

Take a Multidisciplinary Approach to Implementations

Enterprise systems span the entire organization and as such

require input and participation from all functions

Thoroughly Tr ain Users

Training in organization, business process, and application

functions is critical to success and must be reinforced

Secure Executive Sponsorship

The highest level support is required to obtain resources and

make and support difficult reengineering decisions

Thames Valley University 55ESP



Enterprise Systems ± Within the Organization

ESP 6



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Interorganisational Systems

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Types of Enterprise Systems

Pa

cka

ged Applica

tions³Off the Shelf´ computer applications purchased from a vendor or the company that created the system (i.e. Quicken or MSMoney for financial applications)

Key Char acteristics of packaged applications

Best Use - standardized, repetitive tasks

Cost Effectiveness ± lower cost because vendors can

create once and then sell many copies to others

Organizational Fit ± may not be well suited for tasks that

are unique to a particular business or industry Maintenance ± the vendor makes the changes and then

sends the updates to its customer on a periodic basis. The

customer does not control this scheduleESP 8



Types of Enterprise Systems

Custom Applications³Custom-built´ computer applications created by the organization

or a third party (e.g. a consulting organization)

Key Char acteristics of Custom Applications

Best Use - unique business process to an organization

Cost Effectiveness ± much higher cost due to the one-time

creation of the applications

Organizational Fit ± excellent as they are designed to fit a

specific business process Maintenance ± all changes are created and implemented by

the organization using the application

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ESP

Enterprise System EvolutionSystem TypesSystem Evolution

Standalone Systems

Integrated Systems

(Intraorganizational)

Integrated Systems

(Interorganizational)

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Enterprise Systems

Stand Alone (Legacy) Systems

A single system or groups of systems, designed to eachsupport one or a few business functions (e.g. accountingsystem or a manufacturing system, etc.)

Stand Alone (Legacy) Systems

Little or no integr ation with other organizational systems.If integration exists, it is usually in batch (i.e. the accountingsystem gets updates from manufacturing system once a dayor week

Organizational fit may be better than integr ated packagesdue to the focus on one function and that they have beenhighly modified over time

Customization and the age of these systems make themdifficult to support due to the complexity, use of older or obscure languages, etc.

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Enterprise Systems

Legacy (stand-alone) Systems ± information is not readilyshared between systems (i.e. Inbound Logistics inventoryinformation shared with Operations)

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Enterprise R esource Planning

Integr ated Packages (Enterprise Resource Planning)

Richly functional systems designed to support manyorganizational functions (e.g. accounting and finance)

ERP Key Char acteristics Internally focused systems designed to support the internal

operations of the organization

Highly integr ated systems sharing a common data warehousefor information sharing across functions, using real-time updates

Organizational fit may be less for individual departments but theintegrated sharing of information usually outweighs these issues

Usually packaged applications supported by the vendor utilizinga common user interf ace

Customization is discouraged but these systems have theflexibility to support other outside applications using the commondata repository and interfaces

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Integrated System Example

Integr ated Systems ± Information is stored in a singledata repository and can be accessed and updated by allfunctional systems (e.g. Operations)

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Applications of enterprise wide systems

Legacy system integration withinorganisation

If external communication required

± Supply Chain Management to communicateupstream (back to suppliers)

± Customer Relationship Management to

communicate downstream (on to distributors orend consumers)

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ENTER PRISE RESOURCE PLANNING

ERP controls all major business processes resultingin increased efficiency, improved quality,

productivity, profitability Integrates key business processes so that info canflow freely between different parts of organisations

Can extend to suppliers and customers

Totally integrated ± complex and expensive to

implement - many advantages but costly.

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COSTS

Large technological investment

Fundamental change in way business

operates (Business Process Re-engineering) Rework business processes

New tasks/responsibilities for employees

AND

May lose unique business process tostandardisation

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Choosing an ER P System - Issues

ERP Systems are:

Supplied by multiple vendors including S AP, SS A

Baan, Oracle, etc., with each having their own unique

features and structures

Packaged systems that are following a one size-fits

all strategy which means they may not support all

functions as well as a custom system

Similar but are also different. They should be selected

based on factors including control, businessrequirements, and best pr actices

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CUSTOMER RELATIONSHIP MANAGEMENT

Manages all the ways businesses deal with existingand potential customers

Co-ordinates all of business processes related tointeraction with customer in sales, marketing andservicing ± end-to-end customer care

Facilitates provision of better service/support, allowscustomisation of offerings, provides ongoing value toretain profitable customers

ESP 19



Customer R elationship Management

Objective

Applications that help organizations attract new business andattract and encourage repeat business

Functions

There are two primary functions in CRM systems:

Sales ± tools designed to assist in presales activities such asmar keting and prospecting (e.g. Sales Force Automation)

Service ± tools that help with the post-sales aspects of thebusiness (e.g. call center technology, analytics)

Sources

There are two primary sources of CRM systems: CRM Software Vendors ± Siebel, FirePond, Onyx, E.Piphany

ERP Vendors ± S AP, Baan, Oracle, etc.ESP

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SUPPLY CHAIN MANAGEMENT SYSTEMS

Enable companies to collaborate withsuppliers and customers

± Forecast with greater accuracy

± Shorten product life cycle

± Reduce inventories

Help to plan, source, manufacture anddeliver products in a cost effective way(source to consumption in least time/lowest

cost) One stop info access to sales/purchasing/

manufacturing/distribution/transportESP 21



Supply Chain Management

Objective

Applications that accelerate product development and reduce

cost associated with procuring raw materials, components, and

services from its suppliers

Supply Chain ± the suppliers that an organization

purchases from directly

Supply Networ k ± the suppliers that an organization

purchases from directly and its suppliers

Sources

There are two primary sources of SCM systems. These

systems are built to tightly integrate with ERP systems SCM Software Vendors ± Agile, Ariba, I2, Manugistics,

Commerce One, etc.

ERP Vendors ± S AP, Baan, Oracle, etcESP 22



ESP

SCM ± Example of a Supply Network

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Supply Chain Management Benefits

Supply Chain Management applications can helporganizations to gain competitive advantage and provide

substantial payback in several ways by:

Streamlining wor kflow and increasing employee

productivity (i.e. efficiently managing business travel, time,

and expenses by collaborating with suppliers in real time)

Accelerating product development (i.e. enabled by the

ability of organizations to swiftly react to market conditions)

Streamlining cost and creating efficiencies across the

supply network (i.e., supporting contract negotiation andmeasuring effectiveness of those agreements)

ESP 24



SCM ± Example of SAP SCM Offering

S AP

is the ERP

market leader. They also offer SCMapplications whose capabilities include the following:

ESP 25



OUTSOURCING

Turning over responsibility of some/all of the

organisation·s IS development and operations to an

outside firm

² May develop and then house within their organisation

² May run your applications on their computers

² May develop systems to run on existing computerswithin your organisation

26ESP



Reasons for Outsourcing

Accelerate re-engineering benefits

Access to world-class capabilities

Free resources for other purposes

Function difficult to manage or out of control Improve company focus

Make capital funds available

Reduce operating costs

Reduce risk Resources not available internally

Outsourcing Institute ² www.outsourcing.com27ESP



EXAMPLES OF OUTSOURCING

United Biscuits ² Dec 06 ² 5 year multi million pound

managed services contract for applications development

and IT support in UK (Indian company TCS)

NFU Mutual ² Dec 06 ² 10 year contract to outsource data

centres and desktops ² ½130 m

Govt criticised for wasting £8bn each year through not

outsourcing low skill back office civil servant jobs

28ESP

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Enterprise information system (ICT)