Transcript Course Outline

Information Systems
Infrastructure
(IS3314)
3rd year BIS 2006 / 2007
Fergal Carton
Business Information Systems
Last 2 weeks
• 14 Nov
• Case Study
• 7 Nov
• Sales processes
• Marketing IS
• CRM
• Distribute Ch. 7 O’Brien, Section II
• Re-cap on all handouts
This week
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Feedback on case study
Richness and reach
Functional business systems
E-business and e-commerce
Overview of Information systems
Evolution of ERP from MRP
Key benefits of ERP
ERP: the state of play
Davenport handout
Trade-off between richness &
reach
• Communicate rich information
• Proximity
• Dedicated channels
• Cost & physical constraints
• Limited size of audience
• Communicate “poor” information
• Mass market reach
• Generic
Face to face
sales pitch
Direct mail
TV ad
Electronic information &
networks : richness & reach
• Information separated from physical carrier
• Existing value chains fragment (eg. Encyclopaedia
Britannica)
• Creates new opportunities eg. Car sales
• Internet for options, price, benefit, finance
• Changes to physical location of dealerships
• Focus on after-sales service
Barriers to entry become
liabilities
• Opportunities for bypassing middlemen
• High fixed costs of bricks & mortar
• Barnes & Noble
• Toys ‘R Us
Rethink business models
• Focus on single business activity and push into as
many segments as possible
• Intel
• Microsoft
• Orchestrate supply chain relationships
• Dell
• Nike
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
Are there alternatives?
Scalability?
•As-is
•Best of breed
Flexibility?