Management Information Systems

Enterprise Application

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Management Information Systems

Why disparate Systems in

Organization?
Different Systems for Different functions
Sale and Marketing Systems
Manufacturing and Production Systems
Accounting System
HR System

Develop independently through normal

organic growth

Develop independently through

acquisition of smaller firms.

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Management Information Systems

Different Systems at NUST

Every School has their own Systems
Registration System
Program Management(Course management, Fee)
Examination System
These Systems developed independently

according to individual school needs

Problems?
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Management Information Systems

Why disparate Systems in

Organization?

Challenge of different Systems

Can not share information with each other

Very expensive to maintain these Systems
Difficult to manage and coordinate work

One Solution to the above

challenges is

Enterprise Applications

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Management Information Systems

StudentOne System at Macquarie University, Sydney

Only One System for students across

university

Registration System
Program Management(Course

management, Fee)
Examination System

BENEFITS?
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Management Information Systems

Enterprise Applications
Span functional areas
Execute business processes across

firm
Include all levels of management
Coordination and Integration of

all related business processes

work together as one corporate system.
automate the flow of information across

organizational
boundaries
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Management Information Systems

Orde r Fulfillment Proces s

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Management Information Systems

Legacy Systems: Order fulfilment Process Execution

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Management Information Systems

Enterprise System: Order Fulfilment Process Execution

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ENTERPRISE APPLICATION ARCHITECTURE

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Management Information Systems

Types of Enterprise Applications

Enterprise Resource Planning(ERP)or

Enterprise systems
Supply chain management systems
Customer relationship management systems
Knowledge management systems

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Management Information Systems

Enterprise systems or ERP

Systems

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An Example: Before ERP

Sends report

Sales Dept.

Customer
Demographic
Files

Orders
Parts

Customers

Checks for Parts

Calls back Not in stock
We ordered the parts

Accounting
Files

Accounting
Sends report

Sends report

Invoices
accounting

Vendor
Order is placed
with Vendor

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Purchasing
Files

Purchasing

Ships parts

Warehouse

We Need parts #XX

We ordered the parts

Inventory
Files

An Example: After ERP

Orders
Parts

Sales Dept.

Customers

Inventory Data
If no parts,
order is placed
through DB

Accounting
Financial Data exchange;
Books invoice against PO

Order is submitted
to Purchasing.
Purchasing record
order in DB

Database

Books inventory
against PO

Order is placed
with Vendor

Warehouse

Vendor

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Purchasing
Ships parts
And invoices accounting

Management Information Systems

ERP System work together as One

Corporate System

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Management Information Systems

What is ERP ?

Suite

of integrated software modules and a Common central

database

Business

processes (based on best Industry practices) are

pre-defined and embedded in the software

Data

collected mostly from all departments

Information

entered by one process is readily available to

other business processes

Generate

enterprise-wide reports for management decision

making

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Evolution of ERP

18
Source: http://www.intelligententerprise.com/020903/514feat2_1.shtml, viewed September 19,
2002.

ERP Key Characteristics

Integration
Seamless integration of all the information
flowing through a company financial and
accounting, human resource information,
supply chain information, and customer
information.

ERP Key Characteristics

Integration

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ERP Key Characteristics

Packages
Enterprise systems are not developed in-house
Mapping organizational requirements to the
processes and terminology employed by the
vendor
Organizations enter into long-term

relationships with vendors.

Organizations no longer control their own

destiny.

ERP Key Characteristics

Best Practices
ERP vendors talk to many different businesses
within a given industry as well as academics to
determine the best and most efficient Business
processes, called industry best practices.
The general consensus is that business process

change adds considerably to the expense and

risk of an enterprise systems implementation.

Some organizations rebel against the inflexibility

of these imposed business practices.

Management Information Systems

ERP Modules and their business processes

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Management Information Systems

ERP Software
ERP Solution Providers

SAP
Oracle(acquired Siebel, PeopleSoft)
Microsoft
Baan (use of best-of-class applications)
ERP Solution based on

Thousands of predefined business processes

that reflect best industry practices

Business processes are embedded in the
software module
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Management Information Systems

ERP Implementation Process

Model as-is state

Perform in-depth analysis of existing process

Capture business requirements

Model high-level to be process

Capture detailed requirements
Requirement Approval

Map to-be processes to the standard processes in

ERP
Make customization if needed
Put ERP System into live production
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Potential Benefits of ERP

Internal Benefits

Integration of a single source of data

Common data definition
A real-time system
Increased productivity

Reduced operating costs

Improved internal communication
Foundation for future improvement

Potential Benefits of ERP

External Benefits

Improved customer service and order

fulfillment
Improved communication with suppliers

and customers
Enhanced competitive position
Increased sales and profits

Management Information Systems

ERP Major Implementation Strategies

A step-by-step implementation:

Implementation of a few related modules at one time

Big Bang implementation

A big bang deployment of R/3 replaces all or most critical

existing systems in a single operation with the new software.
Roll-out

Roll-out refers to region or business specific extensions

of an implementation after a model is created at one
site or business unit, which is then used to implement
to the other sites or business units.
(PIFRA Project, SAP Implementation at Abbottabad)

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Management Information Systems

A step-by-step implementation
Advantages
Complexity for coordinating and organizing
the project and resources is reduced
The quality of the projects improves because the
project members increase their knowledge
and skills
A team of internal consultants can be
established over time, reducing the cost of the
project
There is a smoother changeover throughout the
company: people have time to adapt to changes
Costs are spread over a longer period of time
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Management Information Systems

A step-by-step implementation
Disadvantages
There is a longer project throughput time
Integration advantages of the project can only
be used step by step
Return on investment is generally delayed

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Management Information Systems

Big Bang implementation

Advantages

No interfaces between legacy systems and

the new application are needed because all
modules go live at the same time
There is a short throughput time
It is highly efficient, because redundant
customizing is avoided
There is optimal integration of all components
under consideration of the integrated business
processes

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Management Information Systems

Big Bang implementation

Disadvantages

The implementation is complex due to the

increased need for coordination and integration
It is resource intensive over a short period of
time
Employees are subject to higher stress levels at
the same time
A high degree of consulting support is required
High resistance from staff and other
stakeholders

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Management Information Systems

Roll-out
Advantages
There is valuable experience gained by project
members
Expertise is available for a fast implementation
Costs are kept low because only limited
resources are needed
Standard business processes can be achieved
by using a model implementation and leveraging
the same design
Disadvantages
Site-specific requirements can be overlooked
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Accelerated SAP (ASAP) Implementation Methodology

IST 600 ERP Systems: Key Implementation

Issues
U. Yeliz Eseryel

Roadmap of ASAP
Methodology

IST 600 ERP Systems: Key Implementation

Issues
U. Yeliz Eseryel

Phase-1 Project Preparation

Phase- 2 Business Blueprint

Phase-3 Realization

Project Plan Outline for Realization

Phase-4 Final Preparation

Phase-5 Go Live & Support

Management Information Systems

CASE STUDY:
3M: STICKY FILM AND SCRATCHY THINGS THAT SELL AROUND
THE WORLD

In 2010, 3M adopted
SAPs Business Suite
Applications
to replace all of its
legacy software
around the world.
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Management Information Systems

CASE STUDY:
3M: STICKY FILM AND SCRATCHY THINGS THAT SELL AROUND THE WORLD

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REMEMBER
ERP IS NOT THE ONLY TYPE

OF ENTERPRISE

SYSTEM
COMPANIES OR FIRMS CAN DEVELOP IN-HOUSE

ENTERPRISE SYSTEMS OR ENTERPRISE

APPLICATIONS TO MEET THEIR SPECIFIC AND
UNIQUE NEEDS .
USING J2EE OR .NET

ENTERPRISE DEVELOPMENT

FRAMEWORK AND TOOLS

SAP IS BASED ON ORACLE AND ABAP/J2EE
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