Information Systems in The Enterp

Information
Systems in the
Enterprise
2.1
2006 by Prentice Hall
Management Information Systems

Chapter 2 Information Systems in the Enterprise INTEGRATING FUNCTIONS AND BUSINESS PROCESSES: Introduction to Enterprise Applications
Traditional View of Systems
2.2
Figure 2-14

Systems for Enterprise-Wide Process Integration Enterprise applications: Designed to support organization-wide process coordination and integration
2.3

Systems for Enterprise-Wide Process Integration (Continued) Consist of : Enterprise systems Supply chain management systems Customer relationship management systems Knowledge management systems
2.4

Enterprise Systems
Enterprise systems, also known as enterprise resource planning (ERP) systems, provide a single information system for organization-wide coordination and integration of key business processes.
Information that was previously fragmented in different systems can seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas.
2.5

Enterprise Systems
2.6
Figure 2-15

Benefits of Enterprise Systems
Help to unify the firms structure and organization: One organization

Management: Firm wide knowledge-based management processes Technology: Unified platform Business: More efficient operations & customerdriven business processes
2.7

Challenges of Enterprise Systems
Difficult to build: Require fundamental changes in the way the business operates
Technology: Require complex pieces of software and large investments of time, money, and expertise
2.8

Supply Chain Management (SCM)
Close linkage and coordination of activities involved in buying, making, and moving a product Integrates supplier, manufacturer, distributor, and customer logistics
Reduces time, redundant effort, and inventory costs Network of organizations and business processes
2.9

Supply Chain Management (SCM)
Helps in procurement of materials, transformation of raw materials into intermediate and finished products Helps in distribution of the finished products to customers
2.10

Information from Supply Chain Management Systems helps firms: Decide when and what to produce, store, and move Rapidly communicate orders Track the status of orders Check inventory availability and monitor inventory levels
2.11

Information from Supply Chain Management Systems helps firms: (Continued) Reduce inventory, transportation, and warehousing costs
Track shipments
Plan production based on actual customer demand Rapidly communicate changes in product design
2.12

Customer Relationship Management (CRM) Manages all ways used by firms to deal with existing and potential new customers
Business and technology discipline

Uses information system to coordinate entire business processes of a firm
2.13

Customer Relationship Management (CRM) (Continued) Provides end- to- end customer care
Provides a unified view of customer across the company

Consolidates customer data from multiple sources and provides analytical tools for answering questions
2.14

Customer Relationship Management (CRM)
2.15
Figure 2-17

Knowledge Management Systems
Collects relevant knowledge and make it available wherever and whenever it is needed
Support business processes and management
decisions
Also link the firm to external sources of knowledge
Support processes for acquiring, storing, distributing, and applying knowledge

2.16

Enterprise Application Architecture
2.17
Figure 2-13

Chapter 2 Information Systems in the Enterprise MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
Management Opportunities:
There are extraordinary opportunities to use information systems to achieve business value,
and increase profitability
2.18

Management Challenges:
Integration and the whole firm view: Given the different interests and perspectives within a firm, it is difficult to achieve consensus about the need for the "whole firm" viewpoint.
Management and employee training: Training a large number of employees on many systems in a large organization involves commensurately large investments.
2.19

Management Challenges: (Continued)
Accounting for the cost of systems and managing demands for systems: Given the large number of different types of systems in a firm, and the large number of people involved with using them, it is a complex task to understand which systems are truly necessary and productive with high returns on investment
2.20

Solution Guidelines: Inventory the firms information systems: Develop a list of firm-wide information requirements to give a 360-degree view of the most important information needs of the firm. Employee and management education: Ensure that you understand how much training is required. Account for the costs and benefits: Develop an accounting system for information services firmwide.
2.21
Business Environment Drives EB
2.22

Chapter 3 Information Systems, Organizations, Management, and Strategy ORGANIZATIONS AND INFORMATION SYSTEMS
Environments and Organizations Have a Reciprocal Relationship
2.23
Figure 3-5

Chapter 3 Information Systems, Organizations, Management, and Strategy INFORMATION SYSTEMS AND BUSINESS STRATEGY
Porters Five Forces Model In the larger environment, there are five main forces or threats: New market entrants Substitute products and services Suppliers bargaining power
Customers bargaining power

Other firms competing directly
2.24
Porters Competitive Forces
2.25
Information System Strategies for dealing with competitive forces:
Low cost leadership: Low operational cost and lowest

prices. Walmart Product differentiation: enable new products or services or greatly change the customer convenience. M-banking, atm, credit card usage Focus on Market niche: By finely tuned sales and marketing techniques. The data may come from various sources.
Strengthen the customer and supplier intimacy:

Strong linkages with customers and suppliers increase switching cost
2.26
The major strategies used to compile user profiles include the following:
Solicit information directly from the user Observe what people are doing online Build from previous purchase patterns Make inferences
2.27
Observing Customers
transaction log A record of user activities at a companys Web site clickstream behavior Customer movements on the Internet cookie A data file that is placed on a users hard drive by a remote Web server, frequently without disclosure or the users consent, that collects information about the users activities at a site Web bugs Tiny graphics files embedded in e-mail messages and in Web sites that transmit information about users and their movements to a Web server spyware Software that gathers user information over an Internet connection without the users knowledge ISPs
2.28
How the Internet Influences Industry Structures

Reduces need for sales force, physical assets, channels etc. Difficult to keep proprietary from new entrants
Reduces differences among competitors Migrates competition mainly on price Widens geographic market, more competitors
Increases as large no. of customers at hand Third party may be omitted
Shifts bargaining power to end customers Reduces switching cost
Again as many suppliers may enter into bus. Bargaining over suppliers increases
The proliferation of Internet creates new

Substitution threats
2.29

Information Systems in The Enterp

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Information

2006 by Prentice Hall

Management Information Systems

Traditional View of Systems

2006 by Prentice Hall

Management Information Systems

2006 by Prentice Hall

Management Information Systems

2006 by Prentice Hall

Management Information Systems

Management Information Systems

2006 by Prentice Hall

Management Information Systems

Benefits of Enterprise Systems

Help to unify the firms structure and organization: One organization

Management Information Systems

Challenges of Enterprise Systems

2006 by Prentice Hall

Management Information Systems

Supply Chain Management (SCM)

Management Information Systems

Supply Chain Management (SCM)

2006 by Prentice Hall

Management Information Systems

Management Information Systems

Management Information Systems

Business and technology discipline

2006 by Prentice Hall

Management Information Systems

Provides a unified view of customer across the company

Management Information Systems

Customer Relationship Management (CRM)

2006 by Prentice Hall

Management Information Systems

Knowledge Management Systems

Support processes for acquiring, storing, distributing, and applying knowledge

Management Information Systems

Enterprise Application Architecture

2006 by Prentice Hall

Management Information Systems

and increase profitability

2006 by Prentice Hall

Management Information Systems

Management Information Systems

Management Challenges: (Continued)

Management Information Systems

Business Environment Drives EB

2006 by Prentice Hall

Management Information Systems

Environments and Organizations Have a Reciprocal Relationship

2006 by Prentice Hall

Management Information Systems

Customers bargaining power

Porters Competitive Forces

2006 by Prentice Hall

Information System Strategies for dealing with competitive forces:

Low cost leadership: Low operational cost and lowest

Strengthen the customer and supplier intimacy:

2006 by Prentice Hall

2006 by Prentice Hall

2006 by Prentice Hall

How the Internet Influences Industry Structures