| Hierarchical perspectives on information systems | • Time frame
• Hierarchical levels
• Characteristics |
| What is Enterprise Resource Planning | An Enterprise Resource Planning system (ERP) is a cross-functional information system comprising an integrated suite of software modules supporting the basic, internal business processes.
”ERP software allows organizations to manage resources throughout the organization, independently of which business function controls the resource"
Focus on creating effectiveness in the organization’s internal production-, distribution- and financial processes |
| What are the benefits of Enterprise Resource Planning? | Designed to integrate information flows seamlessly in cross-functional business processes
Based on modules, which enable prioritised acquisition, we can basically pick modules which fits out needs. (Fx. Purchase, sales, inventory.)
Centralised database, reducing redundant data
Reflect (industry) best practices, but can be adapted to the needs of the organisation
Continuously evolving to fit the needs of the market
Long-term relationships with the software vendor enabling partnerships instead of customer/supplier-perspective |
| What are some of the challenges of ERP? | Price
Challenging integration
Challenging implementation (the CIO Death)
Continuously evolving … This can damage stability, fx. Updates that doesn’t work 100%.
Vendor lock-in… its so expensive that you have to chose one provider.
An implementation of ERP represent a third order change: transformations. |
| What is Supply chain management? (SCM) | The supply chain extends the value chain of an organization
Three flows in a supply chain
• Material/Product flow
• Information flow
• Financial flow
• Importance of syncronization
The Value chain covers one organization but the supply chain spand the value chains of several chains through several organizations.
”SCM software helps organizations manage the movement of materials or products from provision to production to consumption”
Focus on developing the most effective buying process with suppliers of the products and services, the organization needs. |
| What are the benefits of SCM? | Integrating the supply chain by linking processes across organisations
Network technology links customers and suppliers through a single network
Costs and opportunities are optimized for all companies in the supply chain
(Globalization has enabled businesses to integrate customers and suppliers from the supply chain from almost anywhere in the world with more varied supply and lower prices)
Streamlining the supply processes thereby increasing efficiency(input to output) and effectiveness (output to goal)
New business models can be developed through integration
Will allow us to use Just in time production.
Better communication with suppliers |
| What are the challenges of SCM? | Integration of information between organisations requires agreement on the type of information to share, the format, the technological standards, and the security they will use to ensure that only authorised partners can access the information but also trust, so the partners can solve issues that may arise
Synchronised planning: A joint design of planning, forecasting, and replenishment
Workflow coordination: Coordination, integration, and automation of key business processes
Integrated supply chains are global in nature – but the delivery costs may rise
Might cause bullwhip effect |
| What is customer relationship management? (CRM) | CRM system: Software that helps an organization-wide strategy for managing an organization’s multiple interactions with customers.
Focus on attracting and retaining profitable customers through marketing, sales- and service processes |
| What are the 3 components of a CRM-system | Operational
Collaborative
Analytical |
| What are the benefits of CRM? | Improved customer satisfaction due to better service and products, faster response rate, and more efficient transactions
Better customer relations, which can increase the number of transactions, cross-sales, customer retention, and increased customer loyalty
Increased sales due to the above
Can improve Cross selling and Up-selling |
| What are some challenges with CRM? | Implementation of CRM is not just technical but also organisational and requires buy-in from all participants
All channels for interaction must be identified and supported, requiring buy-in from all participants
Technological challenges – scalable architecture, match the organisation
Important: handling of customer data
Required a customer-centric perspective |
| What are some Enterprise Systems Benefits? | All modules easily communicate together efficiently (same vendor)
Centralized operations and decision-making – even with different geographical locations
Reinforce the use of standard procedures across different geographical locations
Redundant data entry and duplicate data may be eliminated
Standards for numbering, naming, and coding enforced
Increased data quality through standardization
Cross-functional-view of the company |
| What are some Enterprise Systems Challenges? | Implementation requires an enormous effort
Requires redesigning business processes to achieve optimal effectiveness and efficiency in the integrated modules
Organizations are expected to conform to the approach used in the enterprise system (e.g., change organization structure, tasks)
A hefty price tag: additional costs for project management, user training, and IT support
Enterprise system projects are risky |
| When is it appropriate for an organization to let the enterprise systems drive a redesign of the business processes? | It is appropriate when:
The organisation is just starting, and processes do not yet exist
Operational business processes are not a source of competitive advantage
Current systems are in crisis and there is not enough time, resources, or knowledge in the firm to fix them (such as Covid19 or Y2K) |
| when is it inappropriate for an organisation to let the enterprise system drive business process change? | It is inappropriate when:
Changing processes that are relied upon for strategic advantage
The features of available packages do not fit the needs of the business
There is a lack of top management support |
| What are some benefits of good IT-Governance? | Alignment of business and technology initiatives.
Make sure decision follows the overall strategy of the company.
Decide between stability vs innovation.
Defines expectation and priorities in a company.
Assign authority to relevant parties
Ensure performance through follow-ups and enforcement.
Align behavior with business goals
Consistency between Business and IT |
| What are the 4 objectives of IT-Governance? | 1. Cost-effective use of IT
2. Effective use of IT for asset utilization
3. Effective use of IT for growth (scalability)
4. Effective use of IT for business flexibility (agility) |
| What are the 5 Major decisions in IT-Governance? | 1. IT principles: high-level decisions about the strategic role of IT in the business.
2. IT architecture: an integrated set of technical choices to guide the organization in satisfying business needs.
3. IT infrastructure: centrally coordinated, shared IT services providing the foundation for the enterprise’s IT capability and typically created before precise usage needs are known.
4. Business application needs: business requirements for purchased or internally developed IT applications.
5. Prioritization and investment: decisions about how much and where to invest in IT, including project approval and justification techniques. |
| What are the decision making archetypes in IT-Governance? | 1. Business monarchy: A senior business executive or a group of senior executives, sometimes including the CIO.
2. IT monarchy: Individuals or groups of IT executives.
3. Federal: C-level executives and business representatives of all the operating groups—may include IT involvement (the equivalent of the central government and the states working together).
4. IT duopoly: Two-party decision-making involving IT executives and one group of business leaders.
5. Feudal: Business unit or process leaders making separate decisions based on the needs of their entities.
6. Anarchy: Each individual user or small group. |
