ENTERPRISE INFORMATION SYSTEMS



ENTERPRISE RESOURCE PLANNING (ERP)

EIS (ENTERPRISE INFORMATION SYSTEMS) (A COMPUTER-BASED SYSTEM THAT CAN PERFORM ALL THE STANDARD ACCOUNTING TASKS FOR ALL OF THE ORGANIZATIONAL UNITS IN AN INTEGRATED AND COORDINATED FASHION

ENTERPRISE RESOURCE PLANNING (ERP) IS THE SAME AS EIS. ERP SYSTEMS ARE PACKAGED SOFTWARE PROGRAMS THAT ALLOW COMPANIES TO:

• AUTOMATE AND INTEGRATE THE MAJORITY OF THEIR BUSINESS PROCESSES

• SHARE COMMON DATA AND PRACTICE ACROSS THE ENTIRE ENTERPRISE

• PRODUCE AND ACCESS INFORMATION IN A REAL-TIME ENVIRONMENT

BASIC CONCEPT OF EIS:

CONSOLIDATING PERTINENT DATA INTO A SINGLE DEPOSITORY THAT IS ACESSIBLE BY THE ENTIRE ORGANIZATION

ERP VENDORS MARKET SHARE

SAP 50%

ORACLE 21%

PEOPLESOFT 13%

J. D. EDWARDS 9%

BAAN 7%

COMBINED SALES IN 1998 = $10 Bill.

SALES IN 2002 = $52 Bill

MICROSOFT AND IBM WERE NOT IN ERP SOFTWARE BUSINESS. RECENTLY, MICROSOFT HAS ACQUIRED GREATPLAINS eENTERPRISE SOFTWARE.

FEASIBILITY OF IMPLEMENTING ERP

• ECONOMIC FEASIBILITY

• TECHNICAL FEASIBILTY

• OPERATIONAL FEASIBILTY

IMPLEMENTATION STEPS

• COST-BENEFIT ANALYSIS

• VENDOR SELECTION

• NEGOTIATION

• PHASE-IN SCHEDULE

• USER TRAINING

• OVERCOME RESISTANCE TO CHANGE

• REVIEW, FEEDBACK, & FOLLOW-UP

RECENT FAILURES

• HERSHEY (COST $75 MILLION)

• EASTMAN KODAK (COST $500 MILLION)

ERP SOFTWARE IS EVOLVING FROM A ORGANIZATION BASED SYSTEM TO A WWW BASED SYSTEM(WEB PORTAL

E-BUSINESS

VENDOR WEB PORTAL

SAP

ORACLE BUSINESS ONLINE

PEOPLESOFT BUSINESS NETWORK

J.D.EDWARDS ONE WORLD

BAAN E-ENTERPISE

TRADITIONAL INFORMATION MANAGEMENT

• ACCOUNTS PAYABLE

• PURCHASE BUDGET

• OPERATIONS BUDGET

• HUMAN RESOURCES

• FIXED ASSETS MANAGEMENT

• MANUFACTURING COST CONTROL

• CUSTOMER CONTRACTS

• WAREHOUSE DATA

• SALES DATABASE

• ACCOUNTS RECEIVABLE

ERP INFORMATION MANAGEMENT

• ACCOUNTS PAYABLE

• PURCHASE BUDGET

• OPERATIONS BUDGET

• HUMAN RESOURCES

• FIXED ASSETS MANAGEMENT

• MANUFACTURING COST CONTROL

• CUSTOMER CONTRACTS

• WAREHOUSE DATA

• SALES DATABASE

• ACCOUNTS RECEIVABLE

ADVANTAGES OF AN ERP SYSTEM

• THE BENEFITS OF AN ERP PACKAGE TO A BUSINESS ARE IN REDUCED OVERHEADS, IMPROVED CUSTOMER SERVICE, BETTER QUALITY, AND MORE TIMELY MANAGEMENT OF INFORMATION.

• REDUCED OVERHEADS ARE ACHIEVED THROUGH THE ELIMINATION OF DUPLICATION OF EFFORT IN DUPLICATE KEYING AND RECONCILIATION OF INDEPENDENT SYSTEMS.

• BETTER MANAGEMENT OF INFORMATION RESULTS WHEN ALLL COMPANY INFORMATION IS HELD ON ONE COMMON DATABASE THAT CAN BE QUERIED TO PROVIDE REPORTS ON MARGINS BROKEN DOWN BY CUSTOMER, PRODUCT, REP, AREA, ETC.

• E-COMMERCE HAS THE POTENTIAL TO IMPROVE CUSTOMER SERVICE BY GIVING THE CUSTOMER DIRECT ACCESS TO YOUR SYSTEMS.

COMMON COMPONENTS OF ERP SYSTEM

• FINANCIAL INFORMATION SYSTEM

o GENERAL LEDGER

o ACCOUNTS RECEIVABLES

o ACCOUNTS PAYABLE

o FIXED ASSETS

o TREASURY MANAGEMENT

o COST CONTROL

• MARKETING INFORMATION SYSTEM

• HUMAN RESOURCES INFORMATION SYSTEM

o HUMAN RESOURCE ADMINISTRATION

o PAYROLL

o SELF-SERVICE HR

• MANUFACTURING & LOGISTICS INFORMATION SYSTEM

o PRODUCTION PLANNING

o MATERIALS MANAGEMENT

o ORDER ENTRY & PROCESSING

o WAREHOUSE MANAGEMENT

o TRANSPORTATION MANAGEMENT

o PROJECT MANAGEMENT

o PLANT MAINTENANCE

o CUSTOMER SERVICE MANAGEMENT

• EXECUTIVE INFORMATION SYSTEM

“SAP” ( SYSTEMS APPLICATION AND PRODUCTS IN DATA PROCESSING

6,000 CUSTOMERS

R/3 VERSION ( 9,000 BUSINESSES

R/2 VERSION ( 2,000 BUSINESSES

• SAP ALLOWS MULTILANGUAGE AND MULTICURRENCY USE

• USES ITS OWN PROGRAMMING LANGUAGE ( ADVANCED BUSINESS APPLICATION PROGRAMMING (ABAP)

• WORKS IN A CLIENT-SERVER ENVIRONMENT

• USES WINDOWS AND ICONS RATHER THAN WRITTEN MENUS ( GRAPHIC USER INTERFACE (GUI)

• PROVIDES INDIVIDUAL INDUSTRY SOLUTION MODULES

• ASAP(ACCELERATED SAP FOR QUICK START

REASONS FOR IMPLEMENTING SAP

( AS PART OF A BUSINESS PROCESS RE-ENGINEERING (BPR) EFFORT

( Y-2K SOLUTION

( AS PART OF AN “IT” STRATEGY

( TO GET A JUMP ON COMPETITORS

( TO KEEP UP WITH THE JONESES

( YOU CAN’T GET FIRED FOR IT

COMMON ELEMENTS OF SAP (HIERARCHICAL ELEMENTS

• COMPANY CODE

• BUSINESS AREA

• PROFIT CENTER

• PLANT

• CUSTOMER MASTER

• VENDOR MASTER

• SALES AREA

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COMMON DATA BASE

CUSTOMERS

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