Enterprise systems

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Chapter 2:
Enterprise Systems
Accounting Information Systems, 9e
Gelinas ►Dull ► Wheeler
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Learning Objectives
Describe enterprise systems and enterprise
resources planning (ERP) systems.
Illustrate the organization value chain.
Describe the relationship of the organization
value chain and an enterprise system.
Demonstrate the value of systems integration.
Describe how an enterprise system supports
major business event processes.
Enumerate the pros and cons of implementing
enterprise systems.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Enterprise Systems
Enterprise systems:
 Video: Costco Enterprise System
 Integrate business processes and information from
all of an organization’s functional areas.
 Helps coordinate the operation of business
functions and provide a central information
resource for the organization.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Inefficient Customer Service
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distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Solution to Inefficient Customer
Service
Enterprise system establishes ATP (available to
promise) by checking warehouses and
scheduled manufacturing.
Enterprise systems uses the central database to
automatically determine price and
creditworthiness.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Data Maintenance: Create
Customer Record
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distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Business Event Data Processing:
Enter Customer Order
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distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Using Stored Data for Decision
Making
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distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Modules of ERP systems
Enterprise Resource Planning (ERP) Systems:
 Software packages that can be used for the core
systems necessary to support enterprise systems.
 SCM
 CRM
 E-Collaboration
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
SUPPLY CHAIN MANAGEMENT
 Supply chain management (SCM) – tracks
inventory and information among business
processes and across companies
 Supply chain management (SCM) system – IT
system that supports supply chain
management
 Just-in-time (JIT) – method for producing or
delivering a product or service just at the time
the customer wants it
 Key feature of effective SCM
 Dell uses JIT to deliver custom computers
2-10
Supply Chain Management
 Most supply chains use inter-modal
transportation, multiple transportation
channels (railway, truck, etc) to move
products from origin destination
 This creates supply chain complexities
2-11
Opportunities of SCM
 Business strategy
 Overall cost leadership
 Wal-Mart
 Goal is to squeeze out every penny of cost
possible in the supply chain
 This will optimize fulfillment, logistics,
production, revenue and profit, and cost and
price
2-12
CUSTOMER RELATIONSHIP
MANAGEMENT
 Customer relationship management (CRM)
system – uses information about customers to
gain insight into their needs, wants, and
behaviors in order to serve them better
 Includes multi-channel service delivery,
multiple ways in which customers can
interact with a business
 Focuses on
1. Sales force automation
2. Customer service and support
3. Marketing campaign management and analysis
2-13
Customer Relationship
Management
2-14
Customer Relationship
Management
 Sales force automation (SFA) systems –
automatically track all the steps in the sales
process





Sales lead tracking
Listing potential customers
Market and customer analysis
Product configuration
Getting repeat customers
2-15
Opportunities of CRM
 Business strategy
 Differentiation and focus
 Growing the organization
 Classic goals




Treating customers better
Understanding their needs and wants
Tailoring offerings
Providing “delightful” experiences
2-16
E-COLLABORATION
 E-collaboration is the use of technology to
support
1. Work activities with integrated collaboration
environments
2. Knowledge management with knowledge
management systems
3. Social networking with social networking systems
4. Learning with e-learning tools
5. Informal collaboration to support open-source
information
2-17
IT Support for E-Collaboration
Just a few of the literally hundreds of e-collaboration
tools
2-18
ENTERPRISE RESOURCE PLANNING
 How do you bring together SCM, CRM, and ecollaboration systems? With an ERP system.
 Enterprise resource planning (ERP) system –
collection of integrated software for business
management, accounting, finance, supply
chain management, inventory management,
customer relationship management, ecollaboration, etc.
2-19
ENTERPRISE RESOURCE PLANNING
2-20
Major ERP Vendors
2-21
ERP
 Attempts to integrate everything
 CRM drives what SCM will produce
 Everyone works together in e-collaboration
 The entire organization knows the entire
organization
 Think about your school
 Can you register for class with a bill outstanding?
 Can you register for a class for which you haven’t
completed the prerequisite?
2-22
ERP Integrates Everything
2-23
SD Audit Trail for Completion of
Steps in the SAP Sales Process
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distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Audit Trail for Completion of Steps
in the SAP Purchase Process
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Pros of Enterprise Systems
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Pros of ERP Packages
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Cons of Enterprise Systems and
ERP Packages
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license
distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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