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Chapter 9

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Information Technology Management
ITM 102
Franklyn Prescod

Chapter 9 What are enterprise systems? • Suite of integrated software modules and a common central database • The database collects data from many different divisions and departments in a firm and from a large number of business processes • Information collected from one process can be accessed and used by other processes in the firm Enterprise Software • Built around thousands of predefined business processes that reflect best practices • Finance/accounting: General ledger, accounts payable, etc. • Human resources: Personnel administration, payroll, etc. • Manufacturing/production: Purchasing, shipping, etc. • Sales/marketing: Order processing, billing, sales planning, etc. • To implement, firms: • Select functions of system they wish to use • Map business processes to software processes • Use software’s configuration tables for customizing Business Value of Enterprise Software • A more uniform organization • More efficient operations and customer-driven business processes • Firm-wide information for improved decision making The supply chain • A network of organizations and business processes for procuring raw materials, transforming these materials into intermediate and final products/services Information Systems and Supply Chain Management • Inefficiencies cut into a company’s operating costs • Can waste up to 25% of operating expenses • Just-in-time strategy: • Components arrive as they are needed • Finished goods shipped after leaving assembly line • Safety stock • Buffer for lack of flexibility in supply chain • Bullwhip effect • Information about product demand gets distorted as it passes from one entity to next across supply chain Supply Chain Management Software • Supply chain planning systems • Model existing supply chain • Demand planning • Optimize sourcing, manufacturing plans • Establish inventory levels • Identifying transportation modes • Supply chain execution systems • Manage flow of products through distribution centers and warehouses Global Supply Chains and the Internet • Before Internet, supply chain coordination hampered by difficulties of using disparate internal supply chain systems • Enterprise systems supply some integration of internal supply chain processes but not designed to deal with external supply chain processes • Demand-Driven Supply Chains: From Push to Pull Manufacturing and Efficient Customer Response Business Value of Supply Chain Management Systems • Match supply to demand • Reduce inventory levels • Improve delivery service • Speed product time to market • Use assets more effectively • Reduced supply chain costs • Increased sales What is Customer Relationship
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