ICFAI

BUSINESS SCHOOL

Enterprise-wide Information Systems

Copyright - ICFAI Business

02/11/10 School 1
 ICFAI About me
BUSINESS SCHOOL

Name : Prof Chandrasekhar C. K.

Edu Qual : B. Tech., PGDM (IIM-A)
Experience : 28 years in IT
Expertise : IS, BPR, SDLC, QMS, KDD, BI

Copyright - ICFAI Business

02/11/10 School 2
 ICFAI Course Objectives
BUSINESS SCHOOL

 To provide concepts & techniques of Databases

 To provide concepts of application integration

Copyright - ICFAI Business

02/11/10 School 3
 ICFAI Course Objectives
BUSINESS SCHOOL

Topic Sessions
Process View and Business Process Reengineering 4
Structured System Analysis & Design 4
Database Design & Concepts 4
MS Access Database 4
Database Application Project 4
ERP Concepts 3
CRM & SCM 2
E-Commerce 2
EAI & SOA 2
Case Study Presentations 4

Copyright - ICFAI Business

02/11/10 School 4
 ICFAI Evaluation
BUSINESS SCHOOL

Evaluation Type Weight

Pre Midterm Test 10%
Mid Term Test 20%
Post Mid Term Test 10%
Project 10%
Final Examination 50%

Copyright - ICFAI Business

02/11/10 School 5
 ICFAI Pedagogy
BUSINESS SCHOOL

• Interactive sessions
• Case Study
• Laboratory
• Student Presentations
• Guest Lecture

Copyright - ICFAI Business

02/11/10 School 6
 ICFAI References
BUSINESS SCHOOL

Information Technology Management – IBS

Information Systems Today – Jessup & Valacich
Enterprise Resource Planning – Brady, Monk and Wagner
Reengineering the Corporation – Michael Hammer & James Champy
ERP Demystified – Alexis Leon

Copyright - ICFAI Business

02/11/10 School 7
 Course Material & Case
ICFAI
BUSINESS SCHOOL
Study Groups

• Form Homogeneous groups of 8 each

• Any study material and power point
slides on a topic will be handed over
to students after the topic is
discussed in the class

Copyright - ICFAI Business

02/11/10 School 8
 ICFAI Business Function
BUSINESS SCHOOL

• Marketing and Sales

• Production and materials Management

• Accounts and Finance

• Human Resources

Copyright - ICFAI Business

02/11/10 School 9
 ICFAI Business Process
BUSINESS SCHOOL

Input Process Output

A business process is a collection of activities that

takes one or more kinds of inputs and creates an
output that is value to the customer

Copyright - ICFAI Business

02/11/10 School 10
 ICFAI Business Process Integration
BUSINESS SCHOOL

Strategic Manageme

Accounts & Finance

Marketing & Sales

Human Resources
Production & MM
Planning nt

Manageme Staff
nt Control Specialist

Operational First Level

Control Manager

Transaction Clerical
Processing Staff

Database Management System

 ICFAI Data Mining & Knowledge Discovery
BUSINESS SCHOOL

Evaluation and Presentation

Knowledge
Data Mining

Patterns

Selection Summarization Data Cube

Data Warehouse

Extract Translate Load

OLTP Databases Flat files

Copyright - ICFAI Business

02/11/10 School 12
 ICFAI A process view of Business
BUSINESS SCHOOL

Customer Order

Accounting

Purchasing

Production

Logistics
Sales

Material Order

Copyright - ICFAI Business

02/11/10 School 13
 ICFAI Marketing & Sales
BUSINESS SCHOOL

Legal Req
Job Info

Sales Order
Customer HR
Order Status Hiring &
PIS

Forecasts & Sales Order

Sales Orders Data
Mktg, Sales

Cost Profit
Product Analysis
Availability

Production Acc, Fin

Copyright - ICFAI Business
02/11/10 School 14
 ICFAI Production & Materials
BUSINESS SCHOOL
Management
Legal Req
Job Info
Raw Matl
Delivery
Shipping HR
Order for Raw Matl Hiring &
PIS

Product
Prod Plans
Production Availability
Inventory

Sales Orders
Sales Data
Forecasts
Mfg Cost Ana

Acc, Fin Mktg, Sales

Copyright - ICFAI Business
02/11/10 School 15
 ICFAI Accounting & Finance
BUSINESS SCHOOL

Legal Req. Job

Info
Payroll Emp.
Expn
Payments
Customer HR
Invoice & Hiring &
CR Notes PIS

Sales Data Cost Profit

Mfg Cost Ana Analysis
Acc, Fin

Prod Plans Sales Order

Inventory Data

Production Mktg, Sales

Copyright - ICFAI Business
02/11/10 School 16
 ICFAI Human Resources
BUSINESS SCHOOL

Hiring &
PIS

Acc, Fin
Legal Req. Job
Info
Payroll Emp.
Expn

HR Legal Req. Job

Legal Req. Job
Info Info

Hiring & Hiring &

PIS PIS

Production Mktg, Sales

Copyright - ICFAI Business
02/11/10 School 17
 ICFAI
BUSINESS SCHOOL

BPR
 ICFAI The Dream
BUSINESS SCHOOL

Every company wants to be

• Flexible enough to adjust to changing market

conditions
• Lean enough to beat competitor’s price
• Innovative enough to keeps products
technologically fresh
• Dedicated enough to deliver quality and customer
service
 ICFAI BPR
BUSINESS SCHOOL

What is Business Process Reengineering?

It is a notion of discontinuous thinking – identifying

and abandoning the outdated rules* and
fundamental assumptions that underlie the
current business operations.

* These rules are based on assumptions about

technology, people and organizational goals that
are no longer valid.
 ICFAI Division of Labor
BUSINESS SCHOOL

200 years ago

Adam Smith propounded the principle of division

of labor.

Specialized workers replaced artisans.

If an artisan built 20 pins a day. Specialized

workers made 48000 pins a day.

This is the principle around which companies were

built for 200 years
 ICFAI Command and Control
BUSINESS SCHOOL

Ford invented the assembly line to apply

the concept of division of labor to
production
Alfred Sloan extended the concept of division of
management.

To do 100 units of work per hour you need ten

workers plus one supervisor @ 10 units per
worker.

To manage 1000 units of work you need 196

people.
• 100 workers, 10 supervisors, 1 Manager, 3 Asst
Mgrs,
18 HR executives, 12 in Administration, 15 in
 ICFAI The 3 Cs
BUSINESS SCHOOL

The factors forcing corporations to

abandon age old methods

• Customers
• Competitio
n
• Change
 ICFAI What is a business process
BUSINESS SCHOOL

A business process is a set of activities that

taken together produce a result of value to
the customer
 ICFAI A process view of Business
BUSINESS SCHOOL

Customer Order

Accounting

Purchasing

Production

Logistics
Sales

Material Order

Copyright - ICFAI Business

02/11/10 School 25
 ICFAI (dis) advantage of division of labor
BUSINESS SCHOOL

Business process is complex

Advantages Disadvantages
No need for highly skilled No one takes responsibility
workers
Everybody is accountable
through bureaucratic chain
of command
 ICFAI Reengineering defined
BUSINESS SCHOOL

Reengineering is the fundamental

rethinking of and radical design of business
process to achieve dramatic improvement
in critical contemporary measure of
performance in cost and quality
 ICFAI Phases of Reengineering
BUSINESS SCHOOL

• Realize
• Define
• Rethink
• Redesign
• Retool
• Re-evaluate
 ICFAI Realize
BUSINESS SCHOOL

• Identify
• Threat
• Opportunity
• Need
• Weakness
• Voice of the
Customer
 ICFAI Define
BUSINESS SCHOOL

• Vision
• Mission
• Values
• CTQ
 ICFAI Rethink
BUSINESS SCHOOL

• Assumption Busting
• Value adding analysis
• Meeting CTQs
 ICFAI Rethink
BUSINESS SCHOOL

• Measure baseline
• Redesign
• SCAMPER
• (substitute, combine, adapt, modify,
put to other use, eliminate, rearrange)
 ICFAI Retool
BUSINESS SCHOOL

• Systems
• Technology
• Methods
 ICFAI Reevaluate
BUSINESS SCHOOL

• Set new performance metric

• Measure improved
performance
• Institutionalize
 ICFAI Features of BPR
BUSINESS SCHOOL

• Process Orientation
• Charter
• Assumption Busting
• Creative Use of Technology
• Empowerment
• Single view of Organization
 ICFAI Reengineering defined
BUSINESS SCHOOL

Reengineering is the fundamental

rethinking of and radical design of business
process to achieve dramatic improvement
in critical contemporary measure of
performance in cost and quality
 ICFAI Reengineering key elements
BUSINESS SCHOOL

Fundamental
Radical
Dramatic
Process
 ICFAI
BUSINESS SCHOOL

Copyright - ICFAI Business

02/11/10 School 38
 ICFAI Case 1 – IBM Credit
BUSINESS SCHOOL

receive log

request

quote prepare Modify

 ICFAICase 2 – Ford Motors – A/C Payables
BUSINESS SCHOOL

PO

purchase V vendor
IN

D/N
PO

GIN

A/C Rec. Clerk

 ICFAICase 3 – Kodak– Product Development
BUSINESS SCHOOL

• Single Use Camera

• Product development time – 70 weeks
• Sequential process
• Body  shutter  film advance  etc.
• Rework, wastage

Concurrent Engineering
• Parallel design
• CAD/CAM
• Design Database
• Parallel Production
• Product development time – 35 weeks
• Reduction in tooling and manuf. Costs 25% less
 ICFAI BPR Enables
BUSINESS SCHOOL

Old Rule New rule

IBM Every bid required Most requests are
(Ratings database) unique distinct simple straight
process forward
FORD We pay when we We pay when we
(online database) receive invoice receive goods
Kodak Design is a sequential Design can happen
(Design Database) process concurrently
 ICFAI BPR Requirements
BUSINESS SCHOOL

• Process orientation

• Rule breaking

• Ambition

• Creative use of

technology
 ICFAI Who needs BPR
BUSINESS SCHOOL

• Companies in deep trouble

• They have no choice – do something radical
• OK companies now but see trouble ahead
• New competitors, new regulations, changing customer needs
• Peak companies doing very well
• Build entry barriers, Set standards
 ICFAI
BUSINESS SCHOOL

End