BUS 340 Chapter 4

Probz related to Info Silos & How to solve probz of Info Silos

-Data duplication/inconsistency; -Disjointed Processes; -Limited Info and Lack of Integrated Info; -Isolated Decisions lead to org. inefficiencies; -Increased Expense Integrate data into a single database and revise applications and business processes to use that database. (ex. using enterprise info system (enterprise database) to get doctor prescription to nurse to pharmacy, to kitchen, to family)

How Do CRM, ERP, and EAI Support Enterprise Systems?

-Help organizations rethink how they do work -Inherent processes: are predesigned procedures for using the software products. It saves money and time in business process reengineering ("industry best practices") -Eliminate costs of developing complex applications in-house

Customer Relationship Management (CRM)

-Suite of applications, a database, and a set of inherent processes -Manage all interactions with customer through four phases of customer life cycle: 1.Marketing 2.customer acquisition 3.relationship management 4. loss/churn -Intended to support customer-centric organization These components exist for each stage of the customer life cycle. All applications process a common customer database. *This design eliminates duplicated customer data and removes possibility of inconsistent data. Also means each department knows what has been happening with customer at other departments.*

What Is a Supply Chain?

...

What Are the Challenges When Implementing New Enterprise Systems?

1. Collaborative management: no clear boss, sogroup effort among many dept.'s and customers for resolving process issues. 2. Requirements gaps: Organization must identify gaps and decide what to do with them. 3. Transition problems: Must change from using isolated departmental systems to using new enterprise system, while continuing to run the business. 4. Employee resistance: Managing resistance to change by communicating the need for change, train employees, give employees extra incentives to change to new system.

How Do Information Systems Affect Supply Chain Performance?

1. Reduce costs of buying and selling. 2. Increase supply chain speed. 3. Reduce size and cost of inventories. 4. Improve delivery scheduling- enable JIT. 5. Fix bullwhip effect. 6. Do not optimize supply chain profitability.

Enterprise Application Integration (EAI)

Can help solve silo problems made with ERP system. _____ is a suite of software applications that integrates existing systems by providing layers of software that connect applications together. -Connects system "islands" -Enables communicating and sharing data -Provides integrated information -It leverages existing systems- leaving functional applications as is but providing integration layer over the top. -Eliminates serious probz of isolated systems. -Enables a gradual move to ERP No centralized database, this software keeps files of metadata that describe WHERE the data are LOCATED.

How enterprise systems solve the problem of information (functional) silos

Isolation of data causes problems so the use of enterprise systems help to interconnect info between different areas (Doctors, Health Clubs, Patients at home) and reduce info silos. Ex. PRIDE database used to distribute info on patient to doctor, personal trainer, patient at home. Use distributed Systems: processing is distributed across multiple computing devices to communicate with the cloud servers and database, and indirectly communicate with each other.

Scope of Information Systems 1. Personal (Drug Salesperson) 2. Workgroup (Department; A physician's partnership) 3. Enterprise (Hospital) 4. Inter-enterprise (PRIDE system)

Modern organizations use four types of information systems that vary according to the scope of the organizational unit. 1. Single user; procedures informal; problems isolated; easy to manage. 2. 10-100 users. procedures understood w/in group; somewhat hard to change, problems affect the whole organization, but solution can be made within the group. 3. 100-1,000 users; procedures formalized; problem solutions affect enterprise; hard to change. Solutions to probz involve more than one dept. 4. 1,000 users; shared by 2 or more independent org.'s. Procedures formalized; problems are resolved by meeting/contract/litigation; solutions require cooperation among diff, independently owned org.'s; diff to change.

What Is the Bullwhip Effect?

Natural dynamic of multistage supply chain Variability in size and timing of orders increases at each stage up supply chain, from customer to supplier Unrelated to erratic customer demand Large demand fluctuations force distributors, manufacturers, suppliers to carry larger inventories Reduces overall profitability of supply chain Eliminate by giving supply chain participants access to consumer-demand information

Reengineering Business Processes

______ are projects used for altering and designing business processes to take advantage of new information systems. -Difficult, slow, and exceedingly expensive -Systems analysts interview key personnel throughout organization -Requires high-level, expensive skills and considerable time

Enterprise Resource Planning Applications

is a suite of applications (modules), a database and a set of inherent processes for consolidating business operations into a single, consistent, computing platform. Includes the functions of CRM, ACC, Manuf., inv., and HR applications. Primary Purpose: -integration of purchasing, human resources, production, sales, and accounting data into a single system. -Allows real time global updates whenever a transaction happens. -Critical business decisions can be made using latest data. SAP is worldwide leader of ___ vendors. ___ Originated in manufacturing, but has been adapted for use in service organizations (ex. hospitals). *Used to FORECAST SALES and to CREATE MANUFACTURING PLANS & SCHEDULES to meet those forecasts*

Def. of Info Silos and the probz related to them

is the condition that exists when data are isolated in separated information systems; create information systems that meet their particular needs only. Each application processes customer, sales, product, and other data, but each uses that data for different purposes and store somewhat different data based on their OWN needs.