MIS 2101Summer 2012Final Review

Enterprise System Approach

Integrated Database

Internally Focused Systems

Enterprise Resource Planning

Successful CRM Strategy

The Formula for Enterprise System Success

1. Secure executive sponsorship 2. Get help from outside experts3. Thoroughly train users4. Take a multidisciplinary approach to

implementations

Tightly Integrated SCM vs. Portals

Big 3 with Many Suppliers

ElemicaDell with Many Customers

Comprehensive CRM

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Transactional Data

• What is “transactional data”? Examples?

• Is integration of transactional data across functional areas important?

Overview of Fitter Snacker

• What does Fitter Snacker make?

• What are the names of the products?

• How many sales divisions does Fitter Snacker have?

• What are these sales divisions and who do they each sell to?

Sales Order

• Customers want delivery information when placing an order. How do they estimate delivery time?

• How do sales clerks get information regarding credit?

• Does this information reflect recent purchases, payments, or returns?

• How do integrated information systems solve this problem?

Whoops! Out of Stock• What can they do when they accept an order and

find out that they are out of stock for part of the order?

• How difficult is it to decide on the best option?

• How many people needed to make the decision?

• How do integrated information systems solve this problem?

Delivery

• What does “Delivery” mean in an SAP system?

• What does ATP stand for?

Core CRM Activities

• What is “One-to-One Marketing”?

• What is “Sales Force Automation (SFA)”?

• What is “Sales Campaign Management”?

Core CRM Activities

• What are “Marketing Encyclopedias”?

• What is “Call Center Automation”?

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SCM & Porter’s 5 ForcesCan partnerships and investments in your supply chain give you a competitive advantage?

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The Five Forces Model – Evaluating Business Segments

Reduce pricesIncrease qualityValue added services

ERP reduce costsCRM CAD/CAM improve quality

Increased costsReduced quality

Electronic connections to more suppliers

Product returnsLower market shareLost customers

Decision support and business intelligenceCAD product redesign

Reduced pricesLost market share

Better web presenceLower costs through ERP, supply chain, etc.

Competition in price, distribution and service

ERP to reduce costs and react more quickly

Production Problems in “Un-integrated” systems

Communication Inventory Accounting

What are some of these problems?

Making a Successful Business Case

On what can we base a successful business case?

Demand Strategies

• If demand is greater than capacity…

Option ResultChoose not to meet the demand

Lost sales

Reduce promotional expenditures

Potential lost sales

Use overtime to increase capacity

Increased costs

Build up inventory in earlier periods

Increased costs and lost inventory

0

5

10

15

20

25

30

35

Time

Supply

Capacity

21

How a Computer Virus is Spread

MRP and ERP

• What is MRP and what does it have to do with ERP?

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An integrated process

Sales and Operations Planning

Demand Management

MRPDetailedScheduling

Sales Forecasting

PurchasingProduction

StartingInventory

Sales and Operations Planning

Demand Management

MRPDetailedScheduling

Sales Forecasting

Sales Forecasting

PurchasingProduction

StartingInventoryStarting

Inventory

Predicts future demand for products

Break production plan down into smaller time increments

Create production schedule based on production plan from demand management

Uses the schedule to determine products and staffing

Determines what company should

produceRequires starting

inventory levels and sales forecast based

on capacity

Determines amount and

timing of raw material orders

Takes quantity and timing information

from MRP and creates orders for suppliers

Measuring Productivity

Strategizing: Five Types of Organizational Strategies

• What are “Organizational Strategies”?

• Can technology be leveraged to create value supporting these strategies?

Types of Accounting

• What is the purpose of “Financial Accounting”?

• What is the purpose of “Managerial Accounting”?

The General Ledger (GL) in an Integrated System

• What is the “General Ledger”?• When is the general ledger updated with a non-integrated

system? How about with an integrated system?

SAP Module Feeds to GLSales and Distribution (SD) - Sales to Customer

Accounts Receivable (AR) Entries

Materials Management (MM) - Purchase Orders made in

Accounts Payable (AP) Entries

Payroll Processing (HR) Expense Entries

Financial Accounting (FI) - Manages the AR and AP items created in SD and MM

GL accounts closed in FI at end of a fiscal period

Question

• What do we mean when we say a company has do “close its books”?

• How often does a company do this?

• How complicated is this?

Sarbanes-Oxley Act of 2002

• Requires public company’s annual report contain management’s internal control report

• Must include documentation of controls • An integrated information system provides tools

to implement internal controls– Controls cannot necessarily prevent effort to

circumvent standard processes • Companies with ERP systems will have an easier

time complying with Sarbanes-Oxley

Cybersquatting

• What is “Cybersquatting”?

• What protection do organizations have against cybersquatting?

Another Look: CRM Success and Failure

• CRM is often incorrectly viewed as a technology implementation driven by the IT department

• CRM should be viewed as a business strategy

• CRM tools can help identify the most profitable customers

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IS and Value Chain Analysis

What are specific examples of how these IS functions add value and help create competitive advantages?

Why might it be important for systems supporting these activities to function at an enterprise level?

Demand Strategies

• If demand is greater than capacity…

Option ResultChoose not to meet the demand

Lost sales

Reduce promotional expenditures

Potential lost sales

Use overtime to increase capacity

Increased costs

Build up inventory in earlier periods

Increased costs and lost inventory

0

5

10

15

20

25

30

35

Time

Supply

Capacity

Bill of Material

• What is a BOM? Ingredient NRG-A NRG-BOats (lb) 300 250Wheat germ (lb) 50 50Cinnamon (lb) 5 5Nutmeg (lb) 2 2Cloves (lb) 1 1Honey (gal) 10 10Canola Oil (gal) 7 7Vit./Min. Powder (lb) 5 5Carob Chips (lb) 50Raisins (lb) 50Protein Powder (lb) 50Hazelnuts (lb) 30Dates (lb) 70

Quantity