STUDY GUIDE

Topic 10:

BMIT5103

Information Technology for Managers

Enterprise Information Systems

Learning Outcomes
By the end of this topic, you should be able to:
1.

State how enterprise systems support cross-functional and multinational operations;

2.

Explain why companies need enterprise resource planning (ERP)

systems;

3.

Describe supply chain management (SCM) networks and solutions;

4.

Discuss collaborative planning, forecasting and replenishment (CPFR);

5.

Describe customer relationship management (CRM) systems; and

6.

Discuss the benefits of knowledge management (KM) systems.

Topic Overview
This topic highlights information systems that support several departments
and/or the entire enterprise. A good example is ERP which supports supply
chains and CRM. Supply chains connect suppliers to manufacturers,
departments inside a company to one another, and a company to its
customers which are supported by a variety of IT application programs. The
supply chain must be completely managed from the raw materials to the end
customers. Typical supply chains involve the upstream, internal and
downstream. Lack of coordination and communication among players along
the supply chain can cause Bullwhip effect problems. Supply chain problems
can be supported and solved by IT, such as appropriate inventory
management, vertical integration, information sharing, VMI, supply chain
collaboration, RFID supply chain teams, virtual factories and wireless
solutions. SCM evolves by integrating routine transactions, including internal
suppliers/customers and external suppliers/customers, in ERP and extended
ERP. Next, BI and CRM applications are integrated into supply chain
software. CRM is an enterprise-wide activity through which an organisation
takes care of its customers and their needs. This demands good
communication and collaboration, most of which are IT-supported and Webbased. Knowledge management (KM) is a process which helps
organisations identify, select, organise, disseminate and transfer important
information and expertise that typically reside within the organisation in an
unstructured way. The KM model involves following cyclical steps: create,
capture, refine, store, manage and disseminate knowledge. Several
technologies can establish a knowledge management system: Internet,
Intranet, data warehousing, DSS tools, groupware, etc. KM has many

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Information Technology for Managers

potential benefits resulting from reuse of expertise. However, the success of

a KM system is difficult to measure. Traditional methods of financial
measurement are not appropriate since they do not consider intellectual
capital as an asset. Therefore, non-financial metrics are typically used to
measure the success of a KM system.

Focus Areas and Assigned Readings

Focus Areas

Assigned Readings
Turban, E., & Volonino, L. (2012).
Information technology for
management, International student
version. Asia: John Wiley.

10.1 Enterprise Systems

10.2 Enterprise Resource Planning
(ERP) Systems
10.3 Supply Chain Management
(SCM) Systems
10.4 Collaborative Planning,
Forecasting and
Replenishment (CPFR)
Systems
10.5 Customer Relationship
Management (CRM) Systems
10.6 Knowledge Management
(KM) Systems

Chapter 10, pp 286288.

Chapter 10, pp 288296.
Chapter 10, pp 296301.
Chapter 10, pp 301305.

Chapter 10, pp 305310.

Chapter 10, pp 31115.
Extra Readings
Comparison of top 10 ERP vendors
top10erp.org
ERP Vendor Shootout
erpshootout.com
Oracle httoracle.com
SAP sap.com
SSA Global
ssaglobal.com/solutions/erp/ln.aspx
Microsoft Dynamics
microsoft.com/dynamics/en/us/defau
lt.aspx
Teradata Teradata.com

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Content Summary
10.1

Enterprise Systems

x
x

Types of enterprise systems and their functions.

Implementation challenges and best practices.

10.2

Enterprise systems insights.

Enterprise Resource Planning (ERP) Systems

x
x
x
x
x

IT at Work 10.1 Achieving Efficient Flexible Manufacturing.

ERP: Strategic weapon for food manufacturers.
An ERP system integrates all IS functions of a food manufacturer
around a single set of data.
Comparison of disparate systems within an enterprise to an
integrated ERP system.

How ERP interfaces with other enterprise systems.

Acquiring an ERP.

10.3

Reasons companies migrate to enterprise systems.

Justifying an ERP.

Understanding ERP success and failure factors.

Supply Chain Management (SCM) Systems

x
x

IT at Work 10.2 Improving Food Supply Chain Safety with Track

and Trace IT Occupational fraud.

Managing the flow of materials, data and money.

Steps in the order fulfilment process.

Order fulfilment and logistics.

Supply chain management concepts.

Managing on-demand activities.

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10.4

IT at Work 10.3.

Improving B2B E-Commerce.

10.6

Information Technology for Managers

Collaborative Planning, Forecasting & Replenishment (CPFR)

Systems
x

10.5

BMIT5103

Bullwhip effect in the supply chain.

Collaborative planning, forecasting and replenishment.

Customer Relationship Management (CRM) Systems

x

IT at Work 10.4 Kelloggs K-Lean Programs in Latin America.

CRM example: Travelocity.

CRM is an enterprise wide initiative.

IT at Work 10.5 CRM and e-CRM Apps.

CRM is multi-channel.

E-CRM.
CRM Successes and Failures.

Knowledge Management (KM) Systems

x
x

IT at Work 10.6 Knowledge Management in PETRONAS

(Malaysia).

IT at Work 10.7 AskMe Expert Location System (ELS).

Knowledge management (KM).

KM system implementation.

Knowledge.

Components of KM systems.

Integration of KM systems with other IS.

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Information Technology for Managers

Study Questions
1.

Explain the purpose of an enterprise system.

2.

Describe five types of enterprise systems.

3.

What are two challenges of legacy systems?

4.

Explain the three types of changes needed when an enterprise system

is implemented.

5.

Briefly describe the challenges of legacy systems that motivate

migration to ERP.

6.

List and briefly describe three ERP implementation success factors.

7.

Describe two barriers to ERP implementation.

8.

List and describe the three main flows managed in a supply chain.

9.

What is order fulfilment?

10.

How does demand uncertainty affect inventory? Give an example.

11.

Describe a collaborative supply chain.

12.

Describe how vendor-managed inventory works.

13.

List the major types of CRM.

14.

List some customer-facing, customer-touching and customer-intelligent

CRM tools.

15.

Define KM and relate it to knowledge and intellectual capital. What are

the major benefits of KM to a company?

16.

Draw the KM life cycle and explain the major steps.

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