Date post: | 13-May-2015 |
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Chapter 7
Enterprise Information Systems
Enabling Innovation and Change
InventoryControl
MRP
MRP II
ERP
ERP II
1960 1970 1980 2000
1990
2010
Functional Information Systems(Financial Accounting)
Database Systems
A/R
G/L
A/P
ERP Systems• An integrated systems that allow information to enter at a single point in the process (e.g., at the materials receiving stage of a manufacturing process) and update a single, shared database for all functions that directly or indirectly depend on this information• This integration should take place in real-time, not through interfaces or programs that transfer information to one or more modules only after the information has already been processed and updated in the module through which it entered the system•Once placed into the system, the information should be available in all the necessary forms through which it may be accessed, throughout the system
CentralEnterpriseDatabase
FIFinancial Accounting
PPProduction Planning
HRHuman Resources
MMMaterials
Management
SDSales & Distribution
SMService Management
RMReports Management
QMQuality Management
AAAsset Accounting
COCosting & controlling
PSProject Systems
PMPlants Maintenance
ISIndustry Solutions
CSCountry Specific
Solutions
ERP: Functional View
What does ERP do for an Enterprise?
Work as a transactional Information Systems to - enable enterprise wide shared and integrated database for
i. improved decision makingii. improved MIS reporting
- enable enterprise wide cross functional work flow automation for:
i. improving intra-organizational transactionsii. reducing in business processes lead timesiii. improved inventory and working capital managementiv. improved financial reconciliation
ERP enables improving Business Process Performance
•Automation of business processes• Simplification of business processes• Elimination of non-value adding business processes • Reengineering of business processes
ERP
MRP
MRP II
Extended ERP
ERP Declared “Dead”
Industry X
Industry Class A
Industry Segment
Z
Industry Sector Q
Technology Infrastructure
Functionality Broadens
Functionality Deepens
Increasing External Connectivity
ERP II
Getting to ERP II
Source : Gartner Group
e-Business Scope
At Macro Level, Organizations can be viewed to have following four environments
Buy side Inside Sale side
(Supplier, Service Providerse.g. transporters)
(Customers, Dealers,Distributors)
As you move up beyond “Publish stage”- you need to deepen your Electronic interaction with customers, suppliers & business partners on a 24x7 basis
Marketing side
(Employee) (Customers, R&D Partners)
e-Business Buy Side Inside Sale side Marketing Models
e-Business Scope with examples
Enabler Model
BPCL, BHEL,TELCO, SAIL,TISCO, ICI, MUL,
HLL, M&M,BPCL, HPCL IOC, TATA, BHEL, ONGCReliance, etc.
Samsung, LG, HLL,MUL, HundaiICI, Sony
ICICI, HLL
Creator Model
Dell, Amazon, Fedex, eSteel, eBay, Expedia
Destroyer Model CISCO, Intel, British Petroleum, …
How does e-Procurement function?
E-Procurement
• Reverse Auction - companies are experimenting and tasted success with Reverse Auction using B2B Portals: FreeMarkets, Commerce One, Trade2Gain, 01 Markets, IndiaMarkets, MatexNet etc- reverse auction comes at the end of the procurement cycle and easy to implement - speeds up slow negotiation price process- entry cost low, low risk of exposing internal supply chain processes to the security concern of the Web. - effective in markets which are buyer led and supplier base is fragmented- transparent price setting mechanism- market making / new supplier validation process
CRM ‘Customer Relationship Management is the practice
of identifying, attracting and retaining the best customers to generate profitable revenue growth’
Why CRM ?1. Customer loyalty is the key differentiating factor as other factors like product quality, price, distribution, features, technology etc. are no more unfathomable.2. It costs 10 times as much to bring in a new customer than it is retain one. 3. The need for accurate and timely information to the sales team is really important. With sales representative’s mobility increasing by the day, it is difficult to expect the same person to come in contact with the customer all the time.
… IS infrastructure for e-CRM
PSTN
Contact Center
HostMainframeExtranet
Network
ATMs &KiosksEnterprise
Intranet
BranchOffices
Internet
Home/Office PC
Channel Integration Systems CTI applications Channel integration middleware Contact management software Messaging applications Security services Intelligent agents
Corporate Customers
RemoteAgents