MIS chapter 7: Organizations & information systems

ERP Key characteristics

Internally focused -systems designed to support the internal operations of the organization Highly Integrated -systems sharing a common data warehouse for information sharing across functions Organizational fit -May be less for individual departments but the integrated sharing of information usually outweighs these issues Packaged applications supported by the vendor utilizing a common user interface Customization -Discouraged but these systems have the flexibility to support other outside applications using the common data repository

Supply chain Management

-Cross-functional approach that includes managing the movement of raw materials into an organization, internal processing of materials into finished goods, movement of those finished goods to the consumer -Purpose of SCM is to improve trust and collaboration among supply chain partners, improving inventory visibility and velocity of inventory movement

ERP implementation failures

-ERP implementation failures inflict a great deal of pain on organizations because implementation cost overruns, that software doesn't support the business or lack of employee acceptance.

How do SCM, ERP, CRM, & EAI supports enterprise systems?

-Help organizations rethink how they do work Inherent processes -Prebuilt procedures based upon "Industry best practices" -save money and time in business process reengineering Eliminate costs of developing complex applications in-house

How do enterprise systems solve the problems of departmental silos?

-Integrate data into single database -Opportunity to revise & improve business process

Enterprise resource planning

-Integrated Packages (ERP) -Richly functional systems designed to support many organization functions (Accounting, finance)

What are the challenges when implementing entire system?

1. Collaborative management using committees and steering groups 2. Identify requirements gaps 3. Transition problems -Implement whole continue to run the business 4. Manage employee resistance via communication, self-efficancy

Why do over 65% if enterprise software implementation fail?

1. Lack of software fit 2. Unrealistic implementation expectations 3. lack of executive buy-in 4. Propensity to customize software rather than leverage standard function 5. Lack of ERP implementation expertise -If you see one of these patterns occurring during your implementation, then you are putting your organization at severe risk

Customer relationship management

Applications that help organizations attract new business and encourage repeat business

ERP and business process reengineering

Business process reengineering -structured improvement approach by all or part of an organization where people critically examine, rethink, redesign, business process in order to achieve dramatic improvements in one or more performance measures (Quality, cycle, time, cost) Hammer and Champy (Reengineering the cooperation) -"Radical redesign of an organization was sometimes necessary in order to lower costs and increase quality and that the information technology was the key enabler for that radical change"

Enterprise systems-Integrated

Integrated packages -richly functional systems designed to support externally focused functions: Upstream (SCM), downstream (CRM)

System categories

Legacy (stand-alone/silo) systems -Information is not readily between systems Ex: Inbound logistics inventory information shared with operations Enterprise-Wide Systems -systems that allow companies to integrate information across operations on a company-wide basis Interorganizational systems (iOS) -systems that communicate across organizational boundaries who's goal is to steamline information flow from one company to another

Enterprise Application integration (EAI)

Links departmental silos together -enables communication and sharing data -Provides integrated information -Provides integrated layer-over top of existing applications -Enables gradual move to full ERP

How do information systems vary by scope?

Personal Ex: Drug salesperson -Single user; procedures informal; problems isolated Workgroup Ex: Physician partnership -10 to 100 users; procedures understood within group, problem solutions within group Enterprise Ex: Hospital -100 to 1000's users, procedures formalized, problem solutions affect enterprise Inter-enterprise Ex: Pride system -1000's users; procedures formalized, problems solutions affect multiple organizations; difficult to change

Two primary functions in CRM?

Sales -tools designed to assist in selling activities such as marketing Service -tools that help with the post-sales aspect of the business (Call center technology)