Matakuliah
Tahun
: M0594 / Enterprise System
: 2007
Why Killer Applications can be assisted by
ERP and CRM software
Pertemuan 5-6
Why Killer Applications can be assisted by
ERP and CRM software
• Killer Application create a Great Market
• Organizational Studies, Reengineering, and ERP
Support
• Policies and Procedures
• Challenges on Implementing Multi-site Supply-Chain
• Complexity in IT and Its Effects on ERP
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Introduction
• Well-managed companies are not interested in “any”
implementation of enterprise resource planning systems.
Neither do they target a “me-too” type of Internet-enabled
solution. They are satisfied only with the best, and they look
forward to killer applications, that can give them significant
competitive advantages in a demanding market where the
stakeholders have the upper hand
• Being satisfied only with the best is, a very healthy policy.
• Since 1999, this acceleration in technology investments and
improved management methods has lead to pioneering
projects that have allowed top-tier companies to carry out a
growing range of transactions on the Web, from ordering
personalized items to doing auctions and reverse auctions.
Web sites are built, maintained, and hosted because
companies see advantages in handholding online with
business partners, all the way to reaching internal information
in each other’s ERP systems
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Killer Application create a Great Market
• Some killer applications
– Word processor
– VisiCalc
– PageMaker
– Mosaic and Netscape
• ERP software cannot be classified in the category of
killer applications unless the ERP implementation
undertaken by the company using it is really avantgarde, such as the Cisco example.
• The concept is that the highly competitive environment
an enterprise puts in place can be greatly assisted by
ERP, particularly if the information that it carries is fully
networked
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Killer Application create a Great Market
• There are three reasons for this:
– ERP frees human resources
– The market success of an innovative product is highly
dependent on the vendor’s continuing ability to deliver
– The successful implementation of an ERP system
requires a significant amount of reorganization
• See exhibit 2.2 and 2.3
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Organizational Studies, Reengineering, and
ERP Support
• There have been two major classes of killer applications
in off-the-shelf programming.
– One is commodity software such as spreadsheet,
which was a new invention and received the market’s
eye almost instanteously.
– The other is word packages, constituting a smart
evolution of what already existed, albeit in hardware
form.
• Advanced software solutions for smart materials and the
Internet supply chain will largely fall into this second
class, to which ERP also belongs
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Organizational Studies, Reengineering, and
ERP Support
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Organizational Studies, Reengineering, and
ERP Support
• In terms of return on investment (ROI) this is equivalent
to taking the high road. This is precisely what the
winners are doing; they are espousing high technology.
• In contrast, the losers, and the majority of the firms,
choose the low road because they lack the vision and
the guts to manage change.
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Organizational Studies, Reengineering, and
ERP Support
• Senior management should understand that what
matters most is to get its company ready for a quantum
leap and to do so with clear objectives in mind
• Jean Monet, and investment banker suggest the
pathway depicted in Exhibit 2.5
– For Planning purposes, start at the end with the
deliverables and the time at which they should be
presented
– Obviously, the execution path will start at the
beginning, observing the milestones the planning
phase has established
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Organizational Studies, Reengineering, and
ERP Support
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Policies and Procedures that can Make
Reengineering More Effective
• My experience with restructuring, reorganization, and reengineering
suggests that information technology and other projects will be so
much more effective if one follows a methodology that has proven its
worth, and therefore its ability to provide deliverables.
• In project after project, six basic steps characterize such a
methodology:
– Write down the objective(s)
– Examine the basic elements to be reengineered
– Define if these elements must be high duty or low duty
– Put to work a small, well-trained group under an able leader
– Apply stringent timetables for deliverables
– Perform design reviews with authority to kill the project
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Policies and Procedures that can Make
Reengineering More Effective
• The best way to look at reengineering is as a method of
maximizing the results of a thorough information
technology reorganization, one that affects all or most
platforms, basic software solutions, and applications
domains.
• A critical issues is restructuring of data components
based on their dependency relationship, as established
through logical data models. This produces the nearest
thing to an optimal order to follow in platform unification,
database design and datamining, networking of available
resources, system integration, and overall performance
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Policies and Procedures that can Make
Reengineering More Effective
• To a very substantial extent, these results are obtained through
information shared with the supply chain. Therefore, the
reengineering program must support integrated analysis and design
activities required to modernize the programs selected for migration
to Internet-enabled ERP.
• The chosen methodology should implement streamlined functional
and data requirements, even if the legacy systems being replaced
had overlapping information and esoteric domain characteristics.
• The target configuration should be:
– A set of homogeneous machine
– An intelligent high-speed network
– Shared distributed database
– A user-friendly programming environment that is strong in
visualization and visibilization
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Challenges on Implementing Multi-site
Supply-Chain
• Organization with multiple sites requiring Internet-oriented
ERP support should study ways to implement supply chain
solutions so that data and processes of the entire enterprise
can be integrated into a unified aggregate.
• What can be done as a start is to established dependable
common metrics. This should be followed by:
– A project capable of identifying key processes relative to
strategic goals of the common effort, understanding and
evaluating themfrom stake-holders’ viewpoints, as well as
identifying quality attributes important to those processes
– A paralel project targeting cost/benefit, also from
stakeholders’ viewpoints; poor estimates during budgeting
typically result in frequent project overruns, wrong
perceptions of quality of the projected solution, and friction
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Challenges on Implementing Multi-site
Supply-Chain
• The multi-site problem amplifies the fact that decisions
made by the top management must be specific to the
degree to which the implementation of an Internetoriented ERP solution will change operational autonomy,
business coordination, and process integration.
• All three have an aftermath in the different business units
of the enterprise. Organizational conflicts might arise and
need to be resolved – if not in advance, then at least in
real-enough-time. The same is true of structural changes
that might be required to realize the intended benefits.
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Complexity in IT and Its Effects on ERP
• Nothing alienates customers and internal users more
than technology that does not work in user-friendly and
effective ways
• In a period of fast change, there are duties and
challenges that cannot be put on the back burner while
sticking to the old stuff
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