MIS 2101
Summer 2012
Final Review
Enterprise System Approach
Integrated Database
Internally Focused Systems
Enterprise Resource Planning
Successful CRM Strategy
The Formula for Enterprise System
Success
1.
2.
3.
4.
Secure executive sponsorship
Get help from outside experts
Thoroughly train users
Take a multidisciplinary approach to
implementations
Tightly Integrated SCM vs. Portals
Dell with Many
Customers
Elemica
Big 3 with Many
Suppliers
Comprehensive CRM
8
Transactional Data
• What is “transactional data”? Examples?
• Is integration of transactional data across
functional areas important?
Overview of Fitter Snacker
• What does Fitter Snacker make?
• What are the names of the products?
• How many sales divisions does Fitter Snacker
have?
• What are these sales divisions and who do they
each sell to?
Sales Order
• Customers want delivery information when placing an
order. How do they estimate delivery time?
• How do sales clerks get information regarding credit?
• Does this information reflect recent purchases,
payments, or returns?
• How do integrated information systems solve this
problem?
Whoops! Out of Stock
• What can they do when they accept an order and
find out that they are out of stock for part of the
order?
• How difficult is it to decide on the best option?
• How many people needed to make the decision?
• How do integrated information systems solve this
problem?
Delivery
• What does “Delivery” mean in an SAP system?
• What does ATP stand for?
Core CRM Activities
• What is “One-to-One Marketing”?
• What is “Sales Force Automation (SFA)”?
• What is “Sales Campaign Management”?
Core CRM Activities
• What are “Marketing Encyclopedias”?
• What is “Call Center Automation”?
SCM & Porter’s 5 Forces
Can partnerships and
investments in your supply
chain give you a competitive
advantage?
16
The Five Forces Model – Evaluating Business
Segments
Product returns
Lower market
Increased
costsshare
Competition
in price,
Lost
customers
Reduced
quality and
distribution
service
Electronic connections to
more suppliers
Reduced prices
Lost market share
17
Decision support and
business
intelligence
Reduce prices
CAD
product
redesign
Increase
quality
Value added services
ERP toERP
reduce
reduce
costs
costs
and
presence
reactBetter
more
CRM web
quickly
Lower
costs improve
through ERP,
CAD/CAM
quality
supply chain, etc.
Production Problems in “Unintegrated” systems
Communication
Inventory
Accounting
What are some of these problems?
Making a Successful Business Case
On what can we
base a
successful
business case?
Demand Strategies
• If demand is greater than capacity…
Option
Result
Choose not to meet the
demand
Lost sales
Reduce promotional
expenditures
Potential lost sales
Use overtime to increase
capacity
Increased costs
Build up inventory in
earlier periods
35
30
25
20
Supply
Increased costs and
lost inventory
15
Capacity
10
5
0
Time
How a Computer Virus is Spread
21
MRP and ERP
• What is MRP and what does it have to do with ERP?
An integrated process
Predicts future
demand for
products
Sales
Forecasting
Starting
Inventory
Sales and Operations Planning
Break production
plan down into
smaller time
increments
Create production
schedule based on
production plan from
demand management
Uses the schedule to
determine products and
23
staffing
Determines what
company should
produce
Requires starting
inventory levels and
sales forecast based
on capacity
Demand Management
Determines
amount and
timing of raw
material orders
Detailed
Scheduling
MRP
Production
Purchasing
Takes quantity and
timing information
from MRP and
creates orders for
suppliers
Measuring Productivity
Strategizing: Five Types of Organizational
Strategies
• What are
“Organizational
Strategies”?
• Can technology be
leveraged to create
value supporting
these strategies?
Types of Accounting
• What is the purpose of “Financial Accounting”?
• What is the purpose of “Managerial Accounting”?
The General Ledger (GL) in an
Integrated System
• What is the “General Ledger”?
• When is the general ledger updated with a non-integrated
system? How about with an integrated system?
SAP Module
Feeds to GL
Sales and Distribution (SD) - Sales to
Customer
Accounts Receivable (AR)
Entries
Materials Management (MM) - Purchase
Orders made in
Accounts Payable (AP)
Entries
Payroll Processing (HR)
Expense Entries
Financial Accounting (FI) - Manages the
AR and AP items created in SD and MM
GL accounts closed in FI at
end of a fiscal period
Question
• What do we mean when we say a company
has do “close its books”?
• How often does a company do this?
• How complicated is this?
Sarbanes-Oxley Act of 2002
• Requires public company’s annual report
contain management’s internal control report
• Must include documentation of controls
• An integrated information system provides tools
to implement internal controls
– Controls cannot necessarily prevent effort to
circumvent standard processes
• Companies with ERP systems will have an easier
time complying with Sarbanes-Oxley
Cybersquatting
• What is “Cybersquatting”?
• What protection do organizations have against
cybersquatting?
Another Look: CRM Success and Failure
• CRM is often incorrectly viewed as a technology
implementation driven by the IT department
• CRM should be viewed as a business strategy
• CRM tools can help identify the most profitable
customers
IS and Value Chain Analysis
What are specific examples of how these IS functions add value and help create competitive advantages?
Why might it be important for systems supporting these activities to function at an enterprise level?
32
Demand Strategies
• If demand is greater than capacity…
Option
Result
Choose not to meet the
demand
Lost sales
Reduce promotional
expenditures
Potential lost sales
Use overtime to increase
capacity
Increased costs
Build up inventory in
earlier periods
35
30
25
20
Supply
Increased costs and
lost inventory
15
Capacity
10
5
0
Time
Bill of Material
• What is a BOM?
Ingredient
Oats (lb)
Wheat germ (lb)
Cinnamon (lb)
Nutmeg (lb)
Cloves (lb)
Honey (gal)
Canola Oil (gal)
Vit./Min. Powder (lb)
Carob Chips (lb)
Raisins (lb)
Protein Powder (lb)
Hazelnuts (lb)
Dates (lb)
Quantity
NRG-A
NRG-B
300
250
50
50
5
5
2
2
1
1
10
10
7
7
5
5
50
50
50
30
70