chapter 7 enterprise systems. fox lake country club has a problem defective business processes could...

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Chapter 7 Enterprise Systems

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Page 1: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Chapter 7

Enterprise Systems

Page 2: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Fox Lake Country Club has a problem• Defective business processes could result in

unhappy customer• Fox Lake’s business processes needs fixing• Mike Stone’s (facilities manager) renovation

plans interfere with scheduled weddings• No body informed wedding planner, Anne

Foster

This Could Happen to You: “Maybe so, but Nobody Told Me”

Scenario Video

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-2

Page 3: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Q1. How do information systems vary by scope?

Q2. When are information silos a problem?

Q3. How do enterprise information systems eliminate silos?

Q4. How do CRM, ERP, and EAI support enterprise systems?

Q5. What are the challenges when implementing new enterprise systems?

Study Questions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-3

Page 4: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Q1: How Do Information Systems Vary by Scope?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-4

Page 5: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Q2: When Are Information Silos a Problem?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-5

Page 6: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Fox Lake Country Club Departmental Goals and Silos

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-6

Page 7: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Departmental Information Systems: Islands of Automation

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-7

Page 8: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

What Are Common Departmental Applications?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-8

Page 9: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Problems of Silos Created in Isolation

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-9

Page 10: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Q3: How Do Enterprise Information Systems Eliminate Silos?

Central database

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-10

Page 11: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

An Enterprise System for Patient Discharge

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-11

All data in

Central databas

e

Page 12: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

7-12

Business Process Reengineering (BPR)

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Page 13: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Q4: How Do CRM, ERP, and EAI Q4: How Do CRM, ERP, and EAI Support Enterprise Systems?Support Enterprise Systems?

Help organizations fundamentally Help organizations fundamentally rethink how they do work to rethink how they do work to dramatically improve customer dramatically improve customer service, cut operational costs, and service, cut operational costs, and become world-class competitorsbecome world-class competitors

Complex, in-house developed Complex, in-house developed applications became too costly to build applications became too costly to build and maintainand maintain

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-13

Page 14: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Q4: How Do CRM, ERP, and EAI Support Enterprise Systems? (cont’d)

Inherent processes

• Pre-designed procedures for using software products

• Saves organizations from expensive and time-consuming business process reengineering

• Based on industry best practices

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-14

Page 15: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

PeopleSoft—licensed payroll and limited capability HRM systems

Siebel—licensed sales lead tracking and management system

SAP—licensed enterprise resource management

ERP VendorsERP Vendors

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-15

Page 16: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

A suite of applications, a database, and a A suite of applications, a database, and a set of inherent processes for managing all set of inherent processes for managing all interactions with a customer, from lead interactions with a customer, from lead generation to customer servicegeneration to customer service

Customer Relationship Management Customer Relationship Management (CRM)(CRM)

Customer-centric ability

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-16

Page 17: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Major Components of a CRM Application

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-17

Page 18: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Suite of Suite of applications, applications, database, and set of database, and set of inherent processes inherent processes for consolidating for consolidating business operations business operations into single, into single, consistent, consistent, computing platformcomputing platform

Enterprise Resource Planning (ERP)

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-18

Page 19: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Collaborative

Management

Requirements Gaps

Transition

Problems

Employee Resistanc

e

Q5: What Are the Challenges When Implementing New Enterprise Systems?

•ChallenChallengesges

•DifficultDifficulty y

•ExpenseExpense

•RiskRisk

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-19

Page 20: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

• Careful planning and substantial training critical

Transition

problems • Change requires effort and creates fear

• Senior level management must communicate need for change to organization, and must re-iterate

• Train key users ahead of time to create positive buzz about new system

• Video demonstrations of employees successfully using new system

• Encourage change with extra inducements

Employee

resistance

Challenges of ERP Implementation

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-20

Page 21: Chapter 7 Enterprise Systems. Fox Lake Country Club has a problem Defective business processes could result in unhappy customer Fox Lake’s business processes

Q1. How do information systems vary by scope?

Q2. When are information silos a problem?

Q3. How do enterprise information systems eliminate silos?

Q4. How do CRM, ERP, and EAI support enterprise systems?

Q5. What are the challenges when implementing new enterprise systems?

How does the knowledge in this chapter help Fox Lake and you?

Active Review

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 7-21