CHAPTER 12 INTEGRATING THE ORGANIZATION FROM END TO END-ENTERPRISE RESOURCE PLANNING

ENTERPRISE RESOURCE PLANNING 

•  A heart of an ERP systems is a central database that collects information from and feeds information into all the ERP systems individual applications components, supporting diverse business functions such as accounting, markerting, human resources.

 

 ERP INTEGRATION DATA FLOWS

 

 ERP PROCESS FLOW

BRINGING THE ORGANIZATION TOGETHER.

- with the extended portal capabilities, an organization can also involve its suppliers and customers to participate in the workflows process, allowing the ERP to penetrate the entire value chain, and help the organization acheive greater operational efficiently.

 THE ORGANIZATION BEFORE ERP

 ERP BRINGING THE ORGANIZATION TOGETHER

THE EVOLUTION OF ERP

- ERP has grown over the years to become part of the extended enterprise.

- it has extended to warehousing, distribution, and order entry.

- ERP expands to the front office including CRM.

 

 INTEGRATING SCM, CRM, AND ERP

- integration allows the unlocking information to make it available to any user, anywhere, anytime.

 

INTEGRATION TOOLS

-middleware- several different types of software that sit in the middle of and provide connectivity between two or more software applications.

-enterprise applications integration(EAI) middleware- represents a new approach to middleware by packaging together commonly used functionality.

-if one application performs poorly, the entire consumer value delivery systems is affected.

  

CHAPTER 11 A CUSTOMER-CENTRIC ORGANIZATION-CUSTOMER RELATIONSHIP MANAGEMENT

CUSTOMER RELATIONSHIP MANAGEMENT

- Customers relationship management(CRM) - managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability.
- for example checking online orders twice daily, shipping online orders within 24 hours.

THE BENEFITS OF CRM

• allows the company to operate more efficiently and effectively in the area of supporting customer needs.
• enables a firm to treat customers as individuals, gaining important insights into their buying preferences and shopping behaviors.
• firm can find their most valuable customers by using RFM formula - recently, frequently and monetary value.

EVOLUTION OF CRM.

 

CRM repoting technologies helps organizations identify their customers across other applications

CRM analysis technologies helps organizations segment their customers  into categories.

CRM predicting technologies helps organization predict customers behaviors.

OPERATIONAL AND ANALYTICAL CRM

Operational CRM- supports traditional transactional processing for day-to-day front office operations or systems that deal directly with the consumer.

Analytical CRM- supports back-office operations and strategic analysis and include all systems that do not deal directly with the consumers.

CHAPTER 10 EXTENDING THE ORGANIZATION- SUPPLY CHAIN MANAGEMENT

BASICS OF SUPPLY CHAIN 

• Supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material.
• Supply chain management(SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. 
• the supply chain has three main links:

1. materials flow from suppliers and their upstream suppliers at all levels.
2. transformation of materials into semi-finished and finished products, or the organization's own production processes. 
3. distribution of products to customers and their downstream customers at all levels.

                        

A TYPICAL SUPPLY CHAIN

 

FIVE BASIC SUPPLY CHAIN MANAGEMENT

INFORMATION TECHNOLOGY'S ROLE IN THE SUPPLY CHAIN

Factor driving supply chain management

1. VISIBILITY

 -supply chain visibility-is the ability to view all areas up and down the supply chain.

 -bullwhip effect-  occurs when distorted product demand information passes from one entity to the next throughout the supply chain.
   

  2.  CONSUMER BEHAVIOUR 

- demand planning software-  generates demand forecasts using statistical tools and forecasting techniques.

3.  COMPETITION

- supply chain planning(SCP) software-  uses advanced mathematical algorithms to improve the flow and efficiency of the supply chain while reducing inventory.

-supply chain execution (SCE) software automates the different stages and steps of the supply chain.

 

 

4. SPEED

-these systems raise the accuracy, frequency, and speed of communication between suppliers and customers.

SUPPLY CHAIN MANAGEMENT SUCCESS FACTORS.

Seven principles of supply chain management.

 

 

Keys to SCM success.

• make the sale to suppliers
• wean employes off traditional business practices
• ensure the SCM systems support the organizational goals
• deploy in incremental phass and measure and communicate success
• be future oriented.

 

CHAPTER 9 ENABLING THE ORGANIZATION-DECISION MAKING

THREE PRIMARY CHALLENGES MANAGERIAL DECISION MAKING CHALLENGES

 

DECISION MAKING ESSENTIALS.

   

 

OPERATIONAL

• employees develop,control, and maintain core business activities required to run the day-to-day operations. 
• considered structured decisions.
• they affect short term business strategies.

MANAGERIAL 

• employees are continuously evaluating company operations to hone the firm's abilities.
• managerial decision cover short- and medium- range plans,budget and so on . 
•   this considered semistructured decisions.
• situations on which a few establish processes help to evaluate potential solutions, but not enough to lead a definite recommended decision.

STRATEGIC

• manager develop overall business strategies, goals, and objectives as part of the company's strategic plan.
• in political,economic.
• highly unstructured decisions which no procedures or rule exist to guide decision maker toward the correct choice.
• example decision to enter new market or even a new industry over.

ENHANCING DECISION MAKING WITH MIS

1. Operational support systems

• transactional information encompasses all the information contained within a single business process or unit of work and its primary support the performance of daily operational or structured decisions.
• online transaction processing(OLTP) is the capture off transaction and event information and event information using technology.
• transaction processing systems (TPS) is the basic business systems that serves  the operational level and assists in making structured decisions.
• TPS are source documents.

    2. Managerial support systems

• analytical information encompasses all the organizational information, and its primary purpose is to support the performance of managerial analysis or semistructured decisions.
• online analytical processing ( OLAP) is the manipulation of information to create business intelligence in support of strategic decision making .
• decision support systems ( DSSs) model information using OLAP which provides assistanc in evaluating and choosing among different courses of action. 
• there are the techniques:

1. what if analysis- checks the impact of a change in a variable or assumption on the model.
2. sensitivity analysis- a special case of what-if analysis, is the study of the impact on other variables when one variables is changed repeatedly
3. goal-seeking analysis- finds the inputs necessary to achieve a goal such as desired level of output. 
4. optimization analysis- an extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables.

3. strategic support systems

•  executive information systems- specialized DSS that supports senior-level executives and unstructured,long term, non routine.
• visualization- produces graphical displays of pattern and complex relationships in large amount of data.

1. consolidation- the aggregation of data from simple roll-ups to complex groupings of interrelated information.
2.  drill-down- enables users to view details, and details of details, of information.
3. slice-and-dice- is the ability to look information from different perspectives.

 

THE FUTURE:ARTIFICIAL INTELLIGENCE

• artificial intelligence- simulates human thinking and behavior.
• intelligence systems- various commercial applications of artificial intelligence.

1. EXPERT SYSTEMS-are computerized advisory programs that imitate the reasoning processes of expert in solving  difficult problems.
2. NUERAL NETWORKS- called an artificial nueral networks, is the category of AI that attempts to emulate the way the human brain works.
3. GENETIC ALGORITHMS- systems that mimics the evolutionary,survival-of-the-fittest- procss to generate increasingly better solutions to a problems.
4. INTELLIGENCE AGENTS- special-purpose knowledge-based information systems that accomplishes specific tasks on behalf of its users.
5. VIRTUAL REALITY- a computer-simulated environment that can be a simulation of the real world or an imaginary world.

CHAPTER 8 ACCESSING ORGANIZATIONAL INFORMATION-DATA WAREHOUSE

HISTORY OF DATA WAREHOUSE

• In 1990s as organizations began to need more timely information about their business, they found that traditional operational information systems were too cumbersome.
• during the latter half of the 20th century, the numbers and types of database increased.

DATA WAREHOUSE FUNDAMENTALS

• data warehouse- logical collection of information-gathered from many different operational databases-that supports business analysis activities and decision making tasks.
• extraction, transformation, and loading( ETL)- process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse.
• data mart- contains a subset of data warehouse information. 

 

 MULTIDIMENSIONAL ANALYSIS AND DATA TIMING

• cube-  the common term for the representation of multidimensional information.
• a relational database contains information in a series of two-dimensional tables.
• a dimension is a particular attribute of information.
• data mining-  process of analyzing data to extract information not offered by the raw data alone.
• data  mining tools- use a variety of techniques to find patterns and relationships in large volumes of information and infer rules from them that predict future behavior and guide decision making.

 

INFORMATION CLEANSING OR SCRUBBING 

 - process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information.

• contact information in operational systems

• standardizing customer name from operational systems

 

• information cleansing activities

 

• accurate and complete information. 

 

BUSINESS INTELLIGENCE

  applications and technologies that are used to gather, provide access to, and analyze data and information to support decision making efforts.

ENABLING BUSINESS INTELLIGENCE

1. TECHNOLOGY- the largest company today can create enterprisewide BI systems that compute and monitor metrics on virtually very variable important for managing the company.
2. PEOPLE- organizations can improve their decision making by having the right people making the decision.
3. CULTURE- a key responsibility of executives is to shape and manage corporate culture.