Information Systems in
Organizations
3.1.1 Running the Business:
Enterprise Systems (ERP)
Review
• Learn IT! Assignment #2
– Due 9/28
– Fast-Food Drive-Through
• Learn IT! Assignment #3
– Due 10/23
– ERP Systems
• Learn IT Assignment #4
– Cyber Analytics (http://ibit.temple.edu/analytics/)
– Starts 10/1 and due 10/30
Learn IT! Assignment #2
• Create a swim lane diagram that documents
the process of taking and filling an order at a
fast-food drive-through.
• Questions and Steps
Who?
•
•
•
•
Customer
Clerk
Point-of-sale Terminal
Kitchen
What?
• Placing an order
• Paying for the order
• Receiving the food
When?
• Receiving the food - Placing an order - Paying
for the order – Preparing the food
Example
Course Topics Overview
•
•
•
•
Unit 1: Introduction
Unit 2: Systems Analysis
Unit 3: Organizational Systems
Unit 4: Consumer Systems
8
Unit 3: Organizational Systems
How do large firms function today?
3.1. Types of systems in organizations
3.1.1. Running the business: enterprise systems (ERP)
3.1.2. Managing the business: decision-making
(analytics, BI, dashboards)
3.1.3. Growing the business: knowledge management,
R&D, and social business
9
Unit 3: Organizational Systems
3.2. Systems management
3.2.1. Business analysis, requirements, and systems
acquisition
3.2.2. Developing systems: programming, testing, and
deployment
3.2.3. Systems integration: standards, interoperability, and
external collaboration
3.2.4. Managing risk: security, hackers, and privacy
10
Unit 3: Organizational Systems
3.3. Digital business innovation
3.3.1. Generating IT value
3.3.2. Competitive advantage of digital business
models
11
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
Information Flow Diagram
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
• Break up into teams of 3-4
• On the following slide, identify all of the
system interfaces:
– What system needs to talk to what other system
– One line per data flow
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atch
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ate
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oll
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ase
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te
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ce
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tic
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Fixed Property Data
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ng
Corporate Level Information
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on
Web Trends Reports
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factin
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h
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Trends
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dC
os
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s
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ate
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rts
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Income
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fit
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Bank
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/Profit and
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er
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ht
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rce
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
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
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
Unit 3: Organizational Systems
How do large firms function today?
3.1. Types of systems in organizations
3.1.1. Running the business: enterprise systems (ERP)
3.1.2. Managing the business: decision-making
(analytics, BI, dashboards)
3.1.3. Growing the business: knowledge management,
R&D, and social business
27
Unit 3: Organizational Systems
3.2. Systems management
3.2.1. Business analysis, requirements, and systems
acquisition
3.2.2. Developing systems: programming, testing, and
deployment
3.2.3. Systems integration: standards, interoperability, and
external collaboration
3.2.4. Managing risk: security, hackers, and privacy
28
Unit 3: Organizational Systems
3.3. Digital business innovation
3.3.1. Generating IT value
3.3.2. Competitive advantage of digital business
models
29
Review
• Grades
• Learn IT! Assignment #3
– Due 10/23
– ERP Systems
• Learn IT Assignment #4
– Cyber Analytics (http://ibit.temple.edu/analytics/)
– Starts 10/1 and due 10/30
2015
ibit.temple.edu/analyticschallenge
University-wide/National student competition
Work in teams or individually
Real-world problems for Merck / QVC / PA BAllet
Use any tool. Workshops throughout October
Opens October 1, entries due October 30th
$10,000 in prizes for winning entries / First Prize $2,500
The Challenges
Will an Ebola vaccine change world
heath?
Who is the best audience for cultural
institutions?
Can TV and digital jointly increase
sales?
A good
graphic tells
a story
Good graphics
help compare
large amounts
of data easily
They look at data
from multiple
angles…
It’s also about choosing the right data…
Good graphics provide
meaningful insight
Under pre-1920 rules: men only
The electoral
result of the
2012 election
Under 1850 rules: white men only
Infographics:
They can be
simple
Or they can
be more
complex,
combining
several types
of data
Infographics tell a story using data and images
For more information, visit
ibit.temple.edu/analyticschallenge
Worksheet Activity
• Worksheet “Business Processes: Procure to
Pay”
Review
• Grades
• Learn IT! Assignment #3
– SAP Login Information on Gradebook
– Due 10/23
• Learn IT Assignment #4
– Cyber Analytics (http://ibit.temple.edu/analytics/)
– Starts 10/1 and due 10/30
Worksheet Activity
• Worksheet “Business Process : Procure to Pay
with ERP”
Worksheet Activity
• Worksheet “Organizational Systems : Filling in
the Income Statement”