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45 Cards in this Set

  • Front
  • Back
Enterprise-wide Systems
aka Enterprise Systems
Enterprise-wide Systems
aka Enterprise Systems, are 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 streamline information flow from one company to another
Functional areas
Functional areas within an organization that process inputs and produce outputs. These activities may vary widely based on the unique requirements of a company’s industry
Inbound Logistics

Primary Activities
receiving and stocking raw materials, parts, products

Primary Activities
processing orders and raw materials into finished product
Outbound Logistics

Primary Activities
distribution of the finished product to customers
Marketing and Sales

Primary Activities
creating demand for the product (pre-sales activities)
Customer Service

Primary Activities
providing support for the product or customer (post-sales activities)
Support activities
Support activities are business activities that enable Primary Activities These activities can be unique by industry but are generally more typical across industries

Support Activities
hardware and software that must be implemented to support applications for primary activities
Human Resources

Support Activities
employee management activities: hiring, interview scheduling, and benefits management
Technology Development

Support Activities
the design and development of applications that support the organization

Support Activities
purchase of goods or services that are required as inputs to primary activities
A Value System – Externally Focused
A connection of value chains across organizations
Allows the flow of information between organizations to support business activities
Upstream flow
Upstream flow is information received from another organization (i.e. from company A to Company B above)
Downstream Flow
Downstream Flow is information sent to another organization (i.e. from Company B to Company C above)
Packaged Applications
“Off the Shelf” computer applications purchased from a vendor or the company that created the system (i.e. Quicken or MS Money for financial applications)
Packaged Key Characteristics
Best Use - standardized, repetitive tasks
Cost Effectiveness – lower cost because vendors can create once and then sell many copies to others
Organizational Fit – may not be well suited for tasks that are unique to a particular business or industry
Maintenance – the vendor makes the changes and then sends the updates to its customer on a periodic basis. The customer does not control this schedule
Custom Applications
“Custom-built” computer applications created by the organization or a third party (e.g. a consulting organization)
Custom Key Characteristics
Best Use - unique business process to an organization
Cost Effectiveness – much higher cost due to the one-time creation of the applications
Organizational Fit – excellent as they are designed to fit a specific business process
Maintenance – all changes are created and implemented by the organization using the application
Stand Alone (Legacy) Systems
A single system or groups of systems, designed to each support one or a few business functions (e.g. accounting system or a manufacturing system, etc.)
Stand Alone (Legacy) Systems
Little or no integration with other organizational systems. If integration exists, it is usually in batch (i.e. the accounting system gets updates from manufacturing system once a day or week
Organizational fit may be better than integrated packages due to the focus on one function and that they have been highly modified over time
Customization and the age of these systems make them difficult to support due to the complexity, use of older or obscure languages, etc.
Legacy (stand-alone) Systems
information is not readily shared between systems (i.e. Inbound Logistics inventory information shared with Operations)
Integrated Packages (Enterprise Resource Planning)
Richly functional systems designed to support many organizational functions (e.g. accounting and finance)
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, using real-time updates
Organizational fit may be less for individual departments but the integrated sharing of information usually outweighs these issues
Usually packaged applications supported by the vendor utilizing a common user interface
Customization is discouraged but these systems have the flexibility to support other outside applications using the common data repository and interfaces
Integrated Systems
Information is stored in a single data repository and can be accessed and updated by all functional systems (e.g. Operations)

Choosing an ERP System – Selection Factors
Control refers to where the power lies related to computing and decision support systems (centralized vs. decentralized) in selecting systems, developing policies and procedures, etc. (who will decide?)
Business Requirements

Choosing an ERP System – Selection Factors
Business Requirements refers to the system’s capabilities and how they meet organizational needs through the use of software modules or groups of business functionality (what do you need?)
Best Practices

Choosing an ERP System – Selection Factors
Best Practices refers to the degree to which the software incorporates industry standard methods for doing business which can cause a need for significant business processes reengineering (how much change is required?)
Business Process Reengineering
A systematic, structured improvement approach by all or part of an organization whereby people critically examine, rethink, and redesign business processes in order to achieve dramatic improvements in one or more performance measures (e.g. quality, cycle time, cost)
Hammer and Champy, (“Reenginerring the Corporation”)
“The 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”
Integrated Packages
Richly functional systems designed to support externally focused functions (Upstream – Supply Chain Management and Downstream – Customer Relationship Management)
Integrated Packages
Highly integrated with internal systems (ERP) through the use of interfaces and specialty software
Organizational fit for these systems is very high as they are highly specific to the function they support
These are usually packaged applications that are supplied and supported by the ERP vendor or other third party system integrators
Customization or modifications are also discouraged to minimize support cost but the applications are highly tailorable with configuration options

Customer Relationship Management
Applications that help organizations attract new business and attract and encourage repeat business

Customer Relationship Management
There are two primary functions in CRM systems:
Sales – tools designed to assist in presales activities such as marketing and prospecting (e.g. Sales Force Automation)
Service – tools that help with the post-sales aspects of the business (e.g. call center technology, analytics)

Customer Relationship Management
There are two primary sources of CRM systems:
CRM Software Vendors – Siebel, FirePond, Onyx, E.Piphany
ERP Vendors – SAP, Baan, Oracle, etc.
Sales Force Automation
Sales Force Automation provides salespeople and sales managers with computerized support tools to assist in daily routines
Example: Siebel SFA displays multiple functions including: sales, quota & forecast by sales person; messages; appointments

Supply Chain Management
Applications that accelerate product development and reduce cost associated with procuring raw materials, components, and services from its suppliers

Supply Chain Management
There are two primary sources of SCM systems. These systems are built to tightly integrate with ERP systems
SCM Software Vendors – Agile, Ariba, I2, Manugistics, Commerce One, etc.
ERP Vendors – SAP, Baan, Oracle, etc
Supply Chain
the suppliers that an organization purchases from directly
Supply Network
the suppliers that an organization purchases from directly and its suppliers
Secure Executive Sponsorship

Recommendations for Enterprise System Success
The highest level support is required to obtain resources and make and support difficult reengineering decisions
Get Help from Outside Experts

Recommendations for Enterprise System Success
Implementation success is enabled by deep application experience and access to supporting tools and methods
Thoroughly Train Users

Recommendations for Enterprise System Success
Training in organization, business process, and application functions is critical to success and must be reinforced
Take a Multidisciplinary Approach to Implementations

Recommendations for Enterprise System Success
Enterprise systems span the entire organization and as such require input and participation from all functions