Transcript Course Outline

Information Systems
Infrastructure
(IS3314)
3rd year BIS 2006 / 2007
Fergal Carton
Business Information Systems
Review of course objectives
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Basic flows of information (Finance / HR / Sales)
Understanding requirements for IS support
Business processes & related applications
Introduction to ERP systems
ERP implementation projects
IS issues in multi-national organisations
Last week
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Case study: average mark 60%
MCQ: average mark 83%
Pre-and Post ERP scenario at EMC
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Customer information stored in at least 6 different un-integrated systems
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Excel widely used: risk of duplication of data, but liked by users for user friendliness and flexibility
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ERP implementation reduces systems from 200 to 40
Transaction Processing Systems
Single instance ERP systems : one centralised database
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Batch processing
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Concurrent manager deals with requests
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Systems Admin has to deal with conflicts and response time issues
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Akin to task manager on desktop machine
Functional business systems
E-business and e-commerce
Overview of Information systems
Evolution of ERP from MRP
Davenport handout (discussion)
SBP Retail Technology handout (27 Aug 2006)
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ERP and sales forecasting
MCQ questions
This week
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Key benefits of ERP
ERP: the state of play
Key business decisions D0 – D6
Davenport handout (link sent)
SBP Retail Technology handout (27 Aug 2006)
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BUSINESS FUNCTIONAL
REQUIREMENTS
CONSIDERATIONS
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PRELIMINARY
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Vanilla ERP Fit With core business processes
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1.0 Develop New
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Products &
f
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Features
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f
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I
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&
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e measure
Conceive new
2.1 Develop marketing 3.1 Develop nstrategic 4.1 Assemble test & 5.1 Prepare svcs and 6.1 Developnstrategic 7.1 Forecast,
S
s
e
r
products
strategy
supplier v
integrate
spares strategy
plans and
and report
g
e
O
r
p &
relationships
products
establishC
financial
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Design New
2.2 Develop product
5.2 Remotely
l
r
m
r goals
operating
operating
y goals
Products &
strategy l
3.2 Identify, nqualify
4.2 Received&
monitork
i
t
Features
and select
processeorders
customer
6.2 DevelopcBudgets 7.2 Procure
t
s capital
2.3 Launch new
o
l
suppliers
product
items/leases
&
r
e
Build Prototype
products &
4.3 Allocate,
6.3 Manageethe
r
performance;
other
goods
&
for feasibility
features
3.3 Plan rqmts
configure & ship
BRM process
y for
diagnose &
services
study & business
product, spares,
customer orders
2.4
Develop
&
remedy
problems
case
subassemblies &
7.3 Recruit, hire &
conduct marketing
4.4 Install, establish
components
5.3 Provide postretain employees
Develop software
programs
final
installation
& establish test
3.4 Procure product,
configuration
7.4 Deliver total
2.5 Establish strategic
customer service
procedures
spares,
and test
compensation to
alliances &
subassemblies
&
equipment
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5.4
Manage
customer
employees
Integrate new
partnerships
components
customer
site
warranty
and
product into
7.5 Acquire product
2.6 Acquire, qualify
maintenance
organization
3.5 Expedite, receive 4.5 Bill & collect
patents &
and refer leads
programs
and disposition
money
copyrights
Manage the
2.7 Develop
materials
5.5 Provide customer
product life cycle
7.6 Plan for and
proposals, solicit
training &
3.6 Manage the
Deliver facility &
orders and close
education
product RMA
infrastructure
deals
process
requirements
ERP Fit
In reality, because of some of the uniquenesses of the business, an ERP system alone will
not provide the functionality required for many of its core business processes.
1.1
1.2
1.3
1.4
1.5
1.6
3.7 Approve and pay
ERP poses Questionable Issues
ERP poses Significant Issues
Not part of initial scope
Key benefits of ERP?
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Single point of data entry (PO’s, SO’s, …)
Inventory control
Opportunity to re-design business processes
Single technical platform (support)
Common language, common pool of data
Sales
Shipping
Collect cash
Market Players: Revenues
1998 ERP Vendor Revenues (millions)
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
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ERP : the state of play
• High penetration rate in large businesses
• ERP seen as panacea to lack of control in subs
• Centralising of expensive IS resources
• CEO’s are “disappointed” with results
• Reporting weakness : need for data warehouse
Critical Success Factors
(Parr & Shanks, 2000)
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People
Top management Support
Full-time release of business experts
Empowered decision makers
Project
Realistic milestones and end date
Steering Committee determines scope & goals
Smaller scope
Champion
Vanilla ERP
Technology
Balanced team
Commitment to change
Research motivation
• Transactional efficiency ≠ better decision making
(effectiveness)
• ERP cost: €50,000 per user to implement
• Succumbing to vendor hype and “best practice”
• Change to local competitiveness / empowerment
• Lack of post-implementation analysis
Expected findings
and limitations
Corporate
Core team
Decentralised
control
Local site
Responsibilities
Information
Processes
Centralised
control
Key business decisions
Decision
Information
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Forecast demand
D What to buy?
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MRP (lead time, on-hand stock, planned quantity of FGI, plant capacity )
D2 What has been built?
Finished Goods Inventory (FGI)
D What to build?
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Booked orders (sales orders with all relevant documentation)
D What to stop building?
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Quality results (components and their location in the plant, customer impact)
D5 What has been delivered?
Billings (what has been shipped therefore can be invoiced)
D What has been approved?
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D What to allocate and ship?
Backlog (what has been approved, allocated to FGI and is awaiting shipment)
Exercise: what are alternatives to
ERP?
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Exercise: main arguments
for / against?
•As-is
•Best of breed
•Custom solution
Are there alternatives?
Scalability?
•As-is
Flexibility?
•Best of breed
Reliability?
•Custom solution