mis 2101 summer 2012 final review. enterprise system approach integrated database
TRANSCRIPT
The Formula for Enterprise System Success
1. Secure executive sponsorship 2. Get help from outside experts3. Thoroughly train users4. Take a multidisciplinary approach to
implementations
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?
Core CRM Activities
• What is “One-to-One Marketing”?
• What is “Sales Force Automation (SFA)”?
• What is “Sales Campaign Management”?
16
SCM & Porter’s 5 ForcesCan partnerships and investments in your supply chain give you a competitive advantage?
17
The Five Forces Model – Evaluating Business Segments
Reduce pricesIncrease qualityValue added services
ERP reduce costsCRM CAD/CAM improve quality
Increased costsReduced quality
Electronic connections to more suppliers
Product returnsLower market shareLost customers
Decision support and business intelligenceCAD product redesign
Reduced pricesLost market share
Better web presenceLower costs through ERP, supply chain, etc.
Competition in price, distribution and service
ERP to reduce costs and react more quickly
Production Problems in “Un-integrated” systems
Communication Inventory Accounting
What are some of these problems?
Demand Strategies
• If demand is greater than capacity…
Option ResultChoose 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
Increased costs and lost inventory
0
5
10
15
20
25
30
35
Time
Supply
Capacity
23
An integrated process
Sales and Operations Planning
Demand Management
MRPDetailedScheduling
Sales Forecasting
PurchasingProduction
StartingInventory
Sales and Operations Planning
Demand Management
MRPDetailedScheduling
Sales Forecasting
Sales Forecasting
PurchasingProduction
StartingInventoryStarting
Inventory
Predicts future demand for products
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 staffing
Determines what company should
produceRequires starting
inventory levels and sales forecast based
on capacity
Determines amount and
timing of raw material orders
Takes quantity and timing information
from MRP and creates orders for suppliers
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 GLSales 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
32
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?
Demand Strategies
• If demand is greater than capacity…
Option ResultChoose 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
Increased costs and lost inventory
0
5
10
15
20
25
30
35
Time
Supply
Capacity