1. 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 Prentice Hall 20112
2. 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. Prentice Hall 2011
3. 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 Prentice Hall 20114
4. 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 Prentice Hall 2011 Why disparate Systems in Organization?
5. 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 Prentice Hall 20116
6. 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 Prentice Hall 20117
7. 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. 8. Management Information Systems Order Fulfillment Process Prentice Hall 20119
9. 9. Management Information Systems Legacy Systems: Order fulfilment Process Execution Prentice Hall 201110
10. 10. Management Information Systems Enterprise System: Order Fulfilment Process Execution Prentice Hall 201111
11. 11. ENTERPRISE APPLICATION ARCHITECTURE Prentice Hall 201112
12. 12. Management Information Systems Enterprise systems or ERP Systems Supply chain management systems Customer relationship management systems Knowledge management systems Types of Enterprise Applications Prentice Hall 2011
13. 13. Management Information Systems Alternative to Enterprise Applications Intranets Extranets Prentice Hall 201114
14. 14. Management Information Systems Supply Chain Management Systems(SCMS) Prentice Hall 201115
15. 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? Prentice Hall 201116
16. 16. Management Information Systems Prentice Hall 201117 NIKES Supply Chain
17. 17. Management Information Systems Upstream of supply chain It includes the companys 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. Prentice Hall 201118 Two Streams of Supply Chain?
18. 18. Management Information Systems CASE STUDY CANNONDALE LEARNS TO MANAGE A GLOBAL SUPPLY CHAIN Information System for Supply Chain Management Prentice Hall 201119
19. 19. Management Information Systems CANNONDALE LEARNS TO MANAGE A GLOBAL SUPPLY CHAIN Prentice Hall 201120
20. 20. Management Information Systems BULLWHIP EFFECT IN SUPPLY CHAIN Prentice Hall 201121
21. 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) Prentice Hall 201122
22. 22. Management Information Systems CASE STUDY PRESENTATION SOUTHWEST AIRLINES TAKES OFF WITH BETTER SUPPLY CHAIN MANAGEMENT Prentice Hall 201123
23. 23. Management Information Systems PUSH-VERSES PULL-BASED SUPPLY CHAIN MODELS Prentice Hall 201124
24. 24. Management Information Systems THE FUTURE: INTERNET-DRIVEN SUPPLY CHAIN Prentice Hall 201125
25. 25. Management Information Systems Enterprise systems or ERP Systems Prentice Hall 201126
26. 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. 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. 28. Management Information Systems ERP System work together as One Corporate System Prentice Hall 201129
29. 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 Prentice Hall 201130
30. 30. 31 Evolution of ERP Source: http://www.intelligententerprise.com/020903/514feat2_1.shtml, viewed September 19, 2002.
31. 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. 32. ERP Key Characteristics 33 Integration
33. 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. 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. 35. Management Information Systems ERP Modules and their business processes Prentice Hall 201136
36. 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 Prentice Hall 201137
37. 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 Prentice Hall 201138
38. 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 Prentice Hall 201139
39. 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 Prentice Hall 201140
40. 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 Prentice Hall 201141
41. 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 Prentice Hall 201142
42. 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 Prentice Hall 201143
43. 43. IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel Accelerated SAP (ASAP) Implementation Methodology
44. 44. IST 600 ERP Systems: Key Implementation Issues U. Yeliz Eseryel Roadmap of ASAP Methodology
45. 45. Phase-1 Project Preparation
46. 46. Phase- 2 Business Blueprint
47. 47. Phase-3 Realization
48. 48. Project Plan Outline for Realization
49. 49. Phase-4 Final Preparation
50. 50. Phase-5 Go Live & Support
51. 51. A
52. 52. A
53. 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. 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. 55. Management Information Systems In 2010, 3M adopted SAPs 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 Prentice Hall 201156
56. 56. Management Information Systems CASE STUDY: 3M: STICKY FILM AND SCRATCHY THINGS THAT SELL AROUND THE WORLD Prentice Hall 201157
57. 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. 58. 59 Customer Relationship Management(CRM) Systems
59. 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 firms relationships with their customers in a superior manner Prentice Hall 201160
60. 60. Why CRM?
61. 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. 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. 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? Prentice Hall 201164
64. 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 Prentice Hall 201165 What CRM System Provides?
65. 65. Management Information Systems CRM System Capabilities Prentice Hall 201166
66. 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. 67. #1 in CRM?... maybe not! Siebel claims to be #1 in CRM software Siebel pre-Oracle Siebel post-Oracle
68. 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. 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 Prentice Hall 201170
70. 70. Management Information Systems HOW ANALYTICAL CRM WORKS? Prentice Hall 201171
71. 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. 72. Management Information Systems CASE STUDY Salesforce.Com: Cloud Services Go Mainstream Prentice Hall 201173 NEXT-GENERATION ENTERPRISE APPLICATIONS
73. 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 Prentice Hall 201174
74. 74. Management Information Systems SUPPLEMENTRY SLIDES Prentice Hall 201175
75. 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.