Information Systems in
Organizations
3.1.1 Running the Business:
Enterprise Systems (ERP)
Build Your Own Study Guide
What Is ERP?
• What are 3 key points from this reading?
• What are 3 important details from this reading?
Students will be called upon at random
Build Your Own Study Guide
Wikipedia: ERP
• What are 3 key points from this reading?
• What are 3 important details from this reading?
Students will be called upon at random
Business processes that span multiple functional areas
Risks
Change
Single Database
Costs
Executive Support
What is an ERP system?
One copy of data
Many modules
Integration Partner
SAP, Oracle and Microsoft
Benefits
Single System
Remember Swim Lane Diagram?
Who does what and when?
Legacy Systems
Sales
Warehouse
Accounting
Does your customer view your
organization as the “well oiled
machine”?
What kind of non-value added
work is created when inventory
data or credit data is old?
Enterprise System
Sales + Warehouse + Accounting
How many copies of
data do I have?
How much non-value added work
do I eliminate when inventory and
credit data are current?
How much better is my decision
making with a single copy of all
data?
How much happier are your
customers when they are dealing
with the “well oiled machine”?
Exercise
• On the following slide, identify all of the
system interfaces:
– What system needs to talk to what other system
– One line per data flow
Price Updates
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Users Personal
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Export Invoice Data
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atch
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rd
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Fixed Property Data
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Sams
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Web Trends Reports
Manu
factin
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Mars
h
LIC
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Reference Data
Web
Trends
Reporti
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an
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Payroll
System
s
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Consta
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Cost Repo
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Banks
Insourc
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CS
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Tax
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fit
Brazili
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Bank
File
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Appllica
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Invoi
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eComme
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ERP Challenges
• Adoption – People HATE change!
• Configuration is extremely complex
– Vanilla (config change only) vs. Customization
• Implementation is extremely complex
• Costs
– Rohm and Haas spend $300 million over a period of three years
– What else could they have done with $300 million?
• Risks
– Mega-failures with ERP implementations in the mid-90s
– Many companies went out of business as a result
• Internally focused
– Need supply chain and customer relationship management too
Build Your Own Study Guide
Putting the Enterprise into the
Enterprise System
• What are 3 key points from this reading?
• What are 3 important details from this reading?
Students will be called upon at random
ERP Benefits
• A single database providing superior, realtime, data-driven decision making
• Standardizing business processes based on
industry best practices
– Force business process reengineering
• Reduced operating costs
– Rohm and Haas saved $200 million/year
Leaders in the ERP Space
•
•
•
•
SAP
Oracle
Microsoft Dynamics
New cloud based ERP providers?
SAP SCM
SAP ERP
SAP CRM
Build Your Own Study Guide
9 Tips for Selecting and
Implementing an ERP System
• What are 3 key points from this reading?
• What are 3 important details from this reading?
Students will be called upon at random
Making it Happen
•
•
•
•
•
•
•
Executive Sponsor
Driven by the business, not by IT
Requires experts from all of the functional areas
Top-tier Integration Partner
Training, training, training
Testing, testing, testing
Don’t cut corners!
– It could cost you a fortune
– It could cost you your business