enterprise applications

1. Management Information Systems
 To understand Enterprise Application.
 To understand how to achieve operational excellence
with the help of Enterprise Application
 To understand how SCMS coordinate planning,
production, and logistics with suppliers
 To understand how CRM enable firms to achieve
customer intimacy
 To understand challenges posed by enterprise
applications
Learning Objectives
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2. Management Information Systems
Why disparate Systems in Organization?
 Different Systems for Different functions
 Sale and Marketing Systems
 Manufacturing and Production Systems
 Accounting System
 HR System
 Develop independently through normal “organic”
growth
 Develop independently through acquisition of smaller
firms.
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3. Management Information Systems
 Each Faculty has their own Systems
 Registration System
 Program Management(Course management, Fee)
 Examination System
 These Systems developed independently according to faculty
needs
Problems?
Different Systems at NUST
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4. Management Information Systems
 Challenge of different Systems
 Can not share information with each other
 Very expensive to maintain these Systems
 Difficult to manage and coordinate work
 One Solution to the above challenges is
 Enterprise Applications
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Why disparate Systems in Organization?

5. Management Information Systems
 Only One System for students across university
 Registration System
 Program Management(Course management, Fee)
 Examination System
BENEFITS?
“StudentOne” System at Macquarie University, Sydney
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6. Management Information Systems
 Only One System for students across all campuses
 Registration System
 Attendance System
 Assessment, Evaluation/Exams
 Fee Processing
BENEFITS?
Online Student Information System at TI
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7. Management Information Systems
 Span functional areas
 Execute business processes across firm
 Include all levels of management
 Coordination and Integration of all related business
processes
 work together as one corporate system.
 automate the flow of information across
organizational boundaries
Enterprise Applications
8

8. Management Information Systems
Order Fulfillment Process
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9. Management Information Systems
Legacy Systems: Order fulfilment Process Execution
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10. Management Information Systems
Enterprise System: Order Fulfilment Process Execution
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11. ENTERPRISE APPLICATION ARCHITECTURE
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12. Management Information Systems
Enterprise systems or ERP Systems
Supply chain management systems
Customer relationship management systems
Knowledge management systems
Types of Enterprise Applications
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13. Management Information Systems
Alternative to Enterprise Applications
Intranets
Extranets
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14. Management Information Systems
Supply Chain Management Systems(SCMS)
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15. Management Information Systems
 Network of organizations & business processes for
 Procuring raw materials,
 Transforming these materials into intermediate and finished
products,
 Distributing the finished products to customers.
 It links
 Suppliers, Manufacturing plants, Distribution Centers, Retail
outlets, and customers
 Supply goods and services from source through
consumption.
 Materials, information, and payments flow through the
supply chain in both directions
What is Supply Chain?
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16. Management Information Systems
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NIKE’S Supply Chain

17. Management Information Systems
 Upstream of supply chain
 It includes the company’s suppliers, the suppliers’
suppliers,
 the processes for managing relationships with
suppliers at all levels
 Downstream of supply chain
 It includes organizations and processes for distributing
and delivering products to the final customers.
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Two Streams of Supply Chain?

18. Management Information Systems
CASE STUDY
“
CANNONDALE LEARNS TO MANAGE A GLOBAL
SUPPLY CHAIN
”
Information System for Supply Chain Management
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19. Management Information Systems
CANNONDALE LEARNS TO MANAGE A GLOBAL SUPPLY CHAIN
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20. Management Information Systems
BULLWHIP EFFECT IN SUPPLY CHAIN
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21. Management Information Systems
 Supply Chain planning systems
 Model existing supply chain,
 Demand planning and forecasting
 Develop optimal sourcing and manufacturing plans
 Example: Cannondale Demand Planning System
 Supply Chain execution systems
 Manage the flow of products through distribution centres and warehouses
 Products delivery to the right locations in the most efficient manner.
 Tracking the physical status of goods
 the management of materials, warehouse and transportation operations
 Example: UPS Package Tracking System
Supply Chain Management System(SCMS)
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22. Management Information Systems
CASE STUDY PRESENTATION
“
SOUTHWEST AIRLINES TAKES OFF WITH BETTER
SUPPLY CHAIN MANAGEMENT
“
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23. Management Information Systems
PUSH-VERSES PULL-BASED SUPPLY CHAIN MODELS
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24. Management Information Systems
THE FUTURE:
INTERNET-DRIVEN SUPPLY CHAIN
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25. Management Information Systems
Enterprise systems or ERP Systems
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26. 27
An Example: Before ERP
Customers
Customer
Demographic
Files
Sales Dept.
Vendor
Orders
Parts
Accounting
Accounting
Files
Purchasing
Purchasing
Files
Order is placed
with Vendor
Invoices
accounting
Inventory
Files
Warehouse
Checks for Parts
Calls back “Not in stock”
“We ordered the parts”
“We Need parts #XX”
“We ordered the parts”
Sends report
Sends report
Sends report
Ships parts

27. 28
An Example: After ERP
Database
Customers Sales Dept.
Purchasing
Warehouse
Accounting
Vendor
Inventory Data
If no parts,
order is placed
through DB
Orders
Parts
Order is submitted
to Purchasing.
Purchasing record
order in DB
Order is placed
with Vendor
And invoices accounting
Financial Data exchange;
Books invoice against PO
Books inventory
against PO
Ships parts

28. Management Information Systems
ERP System work together as One Corporate
System
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29. Management Information Systems
What is ERP ?
 Suite of integrated software modules and a Common central
database
 Business processes (based on best Industry practices) are pre-
defined and embedded in the software
 Data collected mostly from all departments
 Information entered by one process is readily available to
other business processes
 Generate enterprise-wide reports for management decision
making
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30. 31
Evolution of ERP
Source: http://www.intelligententerprise.com/020903/514feat2_1.shtml, viewed September 19, 2002.

31. ERP – Key Characteristics
Integration
Seamless integration of all the information flowing
through a company – financial and accounting,
human resource information, supply chain
information, and customer information.

32. ERP – Key Characteristics
33
Integration

33. Packages
Enterprise systems are not developed in-house
 Mapping organizational requirements to the
processes and terminology employed by the vendor
 Organizations enter into long-term relationships with
vendors.
 Organizations no longer control their own destiny.
ERP – Key Characteristics

34. Best Practices
 ERP vendors talk to many different businesses within a
given industry as well as academics to determine the
best and most efficient Business processes, called
“industry best practices”.
 The general consensus is that business process
change adds considerably to the expense and risk of
an enterprise systems implementation.
 Some organizations rebel against the inflexibility of
these imposed business practices.
ERP – Key Characteristics

35. Management Information Systems
ERP Modules and their business processes
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36. Management Information Systems
 ERP Solution Providers
 SAP
 Oracle(acquired Siebel, PeopleSoft)
 Microsoft
 Baan (use of “best-of-class” applications)
 ERP Solution based on
 Thousands of predefined business processes that
reflect best industry practices
 Business processes are embedded in the software
module
ERP Software
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37. Management Information Systems
 A step-by-step implementation:
Implementation of a few related modules at one time
 Big Bang implementation
A big bang deployment of R/3 replaces all or most critical existing
systems in a single operation with the new software.
 Roll-out
Roll-out refers to region or business specific extensions of an
implementation after a model is created at one site or
business unit, which is then used to implement to the other
sites or business units.
(PIFRA Project, SAP Implementation at Abbottabad)
ERP Major Implementation Strategies
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38. Management Information Systems
Advantages
• Complexity for coordinating and organizing the project and
resources is reduced
• The quality of the projects improves because the project
members increase their knowledge and skills
• A team of internal consultants can be established over time,
reducing the cost of the project
• There is a smoother changeover throughout the company:
people have time to adapt to changes
• Costs are spread over a longer period of time
A step-by-step implementation
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39. Management Information Systems
Disadvantages
• There is a longer project throughput time
• Integration advantages of the project can only be used step by
step
• Return on investment is generally delayed
A step-by-step implementation
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40. Management Information Systems
Advantages
• No interfaces between legacy systems and the new
application are needed because all modules go live at the
same time
• There is a short throughput time
• It is highly efficient, because redundant customizing is avoided
• There is optimal integration of all components under
consideration of the integrated business processes
Big Bang implementation
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41. Management Information Systems
Disadvantages
• The implementation is complex due to the increased need for
coordination and integration
• It is resource intensive over a short period of time
• Employees are subject to higher stress levels at the same time
• A high degree of consulting support is required
• High resistance from staff and other stakeholders
Big Bang implementation
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42. Management Information Systems
Advantages
• There is valuable experience gained by project members
• Expertise is available for a fast implementation
• Costs are kept low because only limited resources are needed
• Standard business processes can be achieved by using a model
implementation and leveraging the same design
Disadvantages
• Site-specific requirements can be overlooked
Roll-out
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43. IST 600 ERP Systems: Key Implementation
Issues
U. Yeliz Eseryel
Accelerated SAP (ASAP) Implementation Methodology

44. IST 600 ERP Systems: Key Implementation
Issues
U. Yeliz Eseryel
Roadmap of ASAP Methodology

45. Phase-1 Project Preparation

46. Phase- 2 Business Blueprint

47. Phase-3 Realization

48. Project Plan Outline for Realization

49. Phase-4 Final Preparation

50. Phase-5 Go Live & Support

51. A

52. A

53. Potential Benefits of ERP
 Internal Benefits
 Integration of a single source of data
 Common data definition
 A real-time system
 Increased productivity
 Reduced operating costs
 Improved internal communication
 Foundation for future improvement

54. Potential Benefits of ERP
 External Benefits
 Improved customer service and order
fulfillment
 Improved communication with suppliers and
customers
 Enhanced competitive position
 Increased sales and profits

55. Management Information Systems
In 2010, 3M adopted
SAP’s Business Suite Applications
to replace all of its
legacy software
around the world.
CASE STUDY:
3M: STICKY FILM AND SCRATCHY THINGS THAT SELL AROUND THE WORLD
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56. Management Information Systems
CASE STUDY:
3M: STICKY FILM AND SCRATCHY THINGS THAT SELL AROUND THE WORLD
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57. REMEMBER
58
 ERP IS NOT THE ONLY TYPE OF ENTERPRISE SYSTEM
 COMPANIES OR FIRMS CAN DEVELOP IN-HOUSE ENTERPRISE
SYSTEMS OR ENTERPRISE APPLICATIONS TO MEET THEIR
SPECIFIC AND UNIQUE NEEDS .
 USING J2EE OR .NET ENTERPRISE DEVELOPMENT FRAMEWORK
AND TOOLS
 SAP IS BASED ON ORACLE AND ABAP/J2EE

58. 59
Customer Relationship Management(CRM)
Systems

59. Management Information Systems
What is CRM?
 An integrated approach for identifying, acquiring and maintaining
customers. siebel.com
 To coordinate all of the business processes that deal with customers in
 sales
 Marketing
 Customer service
 To optimize revenue, customer satisfaction, and customer retention.
 To manage firm’s relationships with their customers in a superior manner
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60. Why CRM?

61. Why CRM?
A shift in thinking
 Transaction  Learning relationship
 Mass Marketing  Individual marketing
 Transaction Value  Life time value
 Product Life Cycle  Customer Life Cycle
 Customer Satisfaction  Customer Loyalty
 Share of the market  Share of the customer
 Product differentiation  Customer
differentiation

62. Why CRM?
Recent Memo of Microsoft CEO
63
 First, we will obsess over our customers.
 Obsessing over our customers is everybody's
job.
 I'm looking to the engineering teams to build the
experiences our customers love.
 I'm looking to the sales and marketing
organizations to showcase our unique value
propositions and drive customer usage first
and foremost

63. Management Information Systems
 Capture and integrate customer data from all over the organization,
Consolidate and analyse the data and distribute the results to
various systems and customer touch points
 A touch point is a method of interaction with the customer such as telephone, e-
mail, Web site
How CRM System Works?
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64. Management Information Systems
 Single enterprise view of customers for improved sales and
customer service.
 Single view of the company to the customers regardless of
touch point
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What CRM System Provides?

65. Management Information Systems
CRM System Capabilities
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66. Company Product name
1. Microsoft Microsoft Dynamics CRM
3.0
2. Sage Software SalesLogix
CRM
3. SAP America Inc. SAP Business One
CRM
4. Parature Inc.
Parature
5. Entellium Entellium
CRM
6. Pivotal corp. Pivotal
CRM
7. Maximizer Software Maximizer Enterprise
CRM
8. Netsuite Inc. NetSuite
CRM+
9. Oncontact Software Oncontact
V
Where is Siebel??
CRM Providers

67. #1 in CRM?... maybe not!
Siebel claims to be #1 in CRM software
Siebel pre-Oracle…
Siebel post-Oracle…

68. Oracle Siebel CRM
69
 The world's most complete customer relationship
management (CRM) solution, Oracle's Siebel CRM
helps organizations differentiate their businesses
to achieve growth.
 Siebel delivers a combination of transactional,
analytical, and engagement features to manage all
customer-facing operations.
 With solutions tailored to more than 20 industries,
Siebel CRM delivers comprehensive on premise
and on demand CRM solution
 http://www.oracle.com/us/products/applications/siebe
l/overview/index.html

69. Management Information Systems
Operational CRM
 Customer-facing applications, such as
 sales force automation
 Call centre and customer service support
 Marketing automation
Analytical CRM
 Applications that mine customer data generated by
operational CRM
 For improving business performance and decision making
OPERATIONAL VERSES ANALYTICAL CRM
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70. Management Information Systems
HOW ANALYTICAL CRM WORKS?
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71. ANALYTICAL CRM
 Direct marketing:
 Cross-product analysis
 Customer profiling
 Measures Churn rate
 number of customers who stop using or purchasing products or
services
 Determine Customer lifetime value (CLTV)
 Revenue produced by a specific customer,
 Expenses incurred in acquiring and servicing that customer,
and the
 Expected life of the relationship

72. Management Information Systems
CASE STUDY
Salesforce.Com:
Cloud Services Go Mainstream
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NEXT-GENERATION ENTERPRISE APPLICATIONS

73. Management Information Systems
 Very expensive to purchase and implement
 Not only technological changes but sweeping changes to
business processes
 SCMS require multiple organizations to share information and
business processes
 Sometimes enormous operating problems and losses
 Very costly to switch ERP vendors.
 Right Balance between conforming to built-in processes and
customizing to meet specific business needs
ENTERPRISE APPLICATIONS CHALLENGES
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74. Management Information Systems
SUPPLEMENTRY SLIDES
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75. 76
Employees
Managers and
Stakeholders
How Do ERP Systems Work?
Central
Database
Reporting
Applications
Human
Resource
Management
Applications
Financial
Applications
Manufacturing
Applications
Inventory
And Supply
Applications
Human
Resource
Management
Applications
Service
Applications
Sales and
Delivery
Applications
Sales Force
And Customer
Service Reps
Customers Back-office
Administrators
And Workers
Suppliers
Source: Davenport, Thomas, “Putting the Enterprise into the Enterprise System”, Harvard Business Review, July-Aug. 1998.