Transcript Course Outline

Information Systems
Infrastructure
(IS3314)
3rd year BIS 2006 / 2007
Fergal Carton
Business Information Systems
Last week
• Richness and reach (cf. Strategy and the New Economics of
Information)
• Organisations put people who need to share information together
• High fixed costs of high street presence (eg. Roches Stores)
• Remote access over internet changes the rules
• Distance learning versus in-class attendance
• MP3 sales in traditional record stores?
• Web based applications (thin client)
• Uses a PC and a browser (IE 6.0)
• Client installation unnecessary
• Upgrading application once centrally
• No impact on client performance (eg. memory usage)
This week
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Functional business systems
E-business and e-commerce
Overview of Information systems
Evolution of ERP from MRP
Key business decisions D0 – D6
Key benefits of ERP
ERP: the state of play
Davenport handout
SBP Retail Technology handout (27 Aug 2006)
Functional business systems
Marketing
Production
Operations
Human Resource
Management
Functional
Business
Systems
Accounting
Finance
Functional business systems
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Functional business systems are composed of a variety of types of
information systems (transaction processing, management information,
decision support, etc.) that support the business functions of:
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Accounting
Finance
Marketing
Productions/operations management
Human resource management
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Composite or cross-functional information systems cross the boundaries of
traditional business functions in order to reengineer and improve vital
business processes. Cross-functional information systems as a strategic way to
share information resources and improve the efficiency and effectiveness of
a business
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Internet technologies help integrate the flow of information among their
internal business functions and their customers and suppliers. Companies are
using the World Wide Web and their intranets and extranets as the technology
platform for their cross-functional and interorganizational information
systems.
E-business and e-commerce
Distinction between e-commerce and e-business:
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e-Commerce is defined as buying and selling over digital media.
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e-Business encompasses e-commerce, but includes front- and back- office
• “e-business is the use of the Internet and other networks
and information technologies to support electronic
commerce, enterprise communications and collaboration,
and Web-enabled business processes both within an
internetworked enterprise, and with its customers and
business partners”
Overview of information systems
• Support day to day transaction processing
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Back-office (SCM, ERP)
Manufacturing (Scada, LIMS, …)
Engineering (CAD, …)
Front-office (CRM)
• Provide management information
– EIS
– Data warehouse
– Portal
• Collaborative tools for productivity (eg. MS-Office)
• Support links to business partners
– IOS, EDI, e-commerce, …
What is ERP?
Enterprise
Resource
Planning
Whole company
Single point of entry
Integrated
Process oriented
People
Money
Materials
Inventory
Transact
Report
Manage
Plan
1950’s: unlimited demand
Deliver
Supplier
Make
Customer
1960’s : inventory costs money!
Deliver
Supplier
Make
Plan
Buy
Customer
1960’s : inventory costs money
Deliver
Supplier
Make
Plan
Buy
MRP
Customer
1970’s : first wave of integration
Deliver
Supplier
Make
Customer
Plan
Sell
Buy
MRP
MRP II
1980’s : sales order processing
SOP
Deliver
Supplier
Make
Customer
Plan
Sell
Buy
MRP
MRP II
1990’s : back-office integration
Accounting & Finance
Human Resources
Deliver
Supplier
Make
Customer
Plan
Sell
Buy
MRP
MRP II
ERP
What is ERP?
– A system for planning the resources to
– take
– make
– ship
– and account for
customer orders
– Modular structure, relational database
David Sammon © 2002
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
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
Key business decisions
Decision
Information
0
Forecast demand
D What to buy?
1
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?
3
Booked orders (sales orders with all relevant documentation)
D What to stop building?
4
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?
6
D What to allocate and ship?
Backlog (what has been approved, allocated to FGI and is awaiting shipment)
Are there alternatives?
Scalability?
•As-is
•Best of breed
Flexibility?