Enterprise Processes and Systems MIS 2000 Instructor: Bob Travica Updated 2014.
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Transcript of Enterprise Processes and Systems MIS 2000 Instructor: Bob Travica Updated 2014.
Enterprise Processes and Systems
MIS 2000Instructor: Bob Travica
Updated 2014
Outline
Concept of Enterprise System (ES) / Enterprise Resource Planning System ES Design Databases for ESPurposes of ESExample of ES effects on CRM* DSS capability of ESEnterprise system vendorsERP System Benefits and CostsSummary
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Enterprise SystemEnterprise System (ES)* is an information system that supports business processes spanning over several departments or an entire organization. Data belonging to business processes are completely supported by IS, that is, all data are in electronic form.
Human Resources Process
Sales & Delivery Process
Marketing Process Production Process Supply Process
Management Process (operational, strategic)
Accounting & Finance Process
IS Development & Maintenance Process
Organization
Enterprise System
Electronic Links to buyers
Electronic Links to suppliers
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Departments covered by ES: purchasing, inventory, production planning and scheduling, accounting, finance, HR, sales… almost any.*ES typically performs functions of TPS and MIS. With additional modules, ES works as data-driven DSS.ES are developed differently than other IS. Software is sold in packages, then configured to meet a company’s needs. **
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Enterprise System (TPS,MIS | DSS)
Management Process
Sales & Delivery DepartmentsMarketing Dept.Production Dept.
Accounting Dept.
Info. Systems Dept.
Purchsing Department
HR Dept.
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Enterprise System Design
• The core is modules called ES Engineand Broker. Business processes are mapped in there.
• Centralized DBs used by ES supply data to business processes defined by ERP modules (accounting, finance, HR...)
• ES can use various database brands (e.g., SAP ES often uses Oracle databases)
Corporate centralized databases
ES Engine & Broker
User interfaces in organizational departments
Databases for Enterprise System
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Databases that support ES may have tens of thousands of tables. High complexity.
Benefit from centralizeddatabases is that an entity is defined just once and so used across company departments. This improves data quality (next slide).
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Purposes of ES (ERPS):1.The main purpose is to provide an integrated view of a company’s operations. This is possible owing to centralization in corporate data management. Primary beneficiary is executive managers.2. The integrated view allows for more informed decision making because data are:
- more consistent *- more complete – reports from ES reflect a whole company - more accurate** - more timely***
Purposes of Enterprise System
Accounting & Finance
Human Resources
Department-specific and Corporate-wide reporting
Customer Relationship Management- Sales & Marketing Processes
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Community of Interest
Marketing
Sales
Customer Order
Management
Billing
Complaints/Support
Customer: Customer ID, Customer Type*, Name, Address, City*, Postal Code, Phone, Email
Customer Order: Customer Order Number, Order Date, Quantity
Product: Product ID, Product Type*, Description, Distribution Channel, List Price
Sales Record: Sale Number, Sale Date, Salesperson*, Price
Billing Record: CustomerBillingID, Date, Amount, Payment Method
Customer Support: Customer ID, Complaint, Customer, Date
Market management entities: Segment, Promotion, Campaign, Channel
Entity (italics) Attributes
Customer: Customer ID, Date, Comment, Contribution
System Support to Sales & Marketing Processes – Traditional vs. ES Model
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Community of Interest
Marketing
Sales
Customer Order Management
Billing
Complaints/Support
Mkt campaign TPSMkt segmentation DSS
Brand mgt MIS/DSS
Customer Master TPSSales TPS/MIS
Customer Order Mgt TPS/MIS
Billing TPS/MIS
Support Desk TPS/MIS
Communication sys, Group Support IS
• Old IS solution – separate system for each process
• New IS solution – a single system – Enterprise System*
Marketing
Sales
Customer Order Management
Billing
Complaints/Support
ES
Customer communities are not integrated into ES.
DSS Capability of ES
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Corporate centralized Databases
ES Engine & Broker
User interfaces in organizational departments
Data Warehouse
Data Warehouse (DW) is a large repository of data extracted from corporate databases. Thissoftware is purchased separately from standardES software.
DW is not relational databases, but has its own tables, keys, and data models. DW is used for building data cubes.* The capability of data cubing makes ES a data-driven DSS.
Data cubes
Enterprise System Vendors
SAP (Systems, Analysis and Products, Germany).
Oracle, PeopleSoft, J. D. Edwards (U.S.)
Microsoft Dynamics, aimed at smaller companies
SAP Business One is competing product
SAP BusinessByDesign
On-demand SaaS (Software as a Service – a method of renting Enterprise System services that are offered by an external party).
Instead of buying and owning software and hardware and operating ES on their own, a company rents the ES services.
This is a new method of managing information systems in general.
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SAP• SAP is a software package for enterprise systems. It captures largest
global market share.
• Company was formed in Germany in 1972.
• SAP’s goal was to develop a standard business software that could be configured to meet the needs of a particular company.
• SAP’s founders wanted to:
• Make data available in real time (without delay)
• Enable users to work on a computer screen, not paper
• In 1972, these were big goals
• We will use SAP in the lab. It is a complex system and requires attention to details and – patience!
Why Is Knowledge of SAP Useful?
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• SAP used much in Manitoba• Provincial government• Manitoba regional health care• Manitoba Hydro• Blue Cross• Deloitte (a global accounting & consulting company)
• http://www.deloitte.com• You can increase chance to be hired if you have some
exposure to SAP.
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Enterprise System Costs• Initial tangible costs of an Enterprise System:
• Software and Hardware purchasing price
• Configuration cost (costs of setting up ES)
• Training cost (users need to be trained to use ES and new processes)
• ES (like SAP) may require big changes in business processes. This may stir up employees’ reluctance or rejection of ES intangible costs.
• A large company, with over 1,000 employees, can spend from $50 million to $500 million on an ES. ES is a “Cadillac” of information systems – it may cost a lot!
• Management should have a clear picture of total cost of ownership though whole life of system* before deciding to invest in ES.
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ERP System Benefits• Better coordination between organizational functions, as data
flow smoothly throughout the whole enterprise.
• Reduced complexity created by different departmental IS (data must be reformatted to be shared across different departmental systems).
• Improved control. (Management value; a business document or even a single piece of data can be tracked down)*
• Better decision-making based on better data (see before) - readily available and integrated data; reports covering entire company. (Management value).
• Increased speed of processes. (Value shared by the entire organization).
Summary
Enterprise System (ES) (or Enterprise Resource Planning System – ERPS) is an IS that supports business processes which run across departments and may cover an entire organization.
Data management is standardized to provide an integrated view of business – ES is a TPS/MIS for whole enterprise. With additions, ES can be used as a data-driven DSS.
Databases for ES can be very complex and made by different vendors than is the ES software.
ES costs can be large and should be accounted for the entire system life. Intangible costs include organizational change and employee resistance to it.
ES improves process performance due to better coordination across the enterprise, elimination of complexity associated with separate departmental IS, time savings, more effective management control, and decision making using integrated view of enterprise.
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