systems enterprise (enterprise info systems)- integrate the business process functionality and info from all of an organization's functional areas o Examples- marketing, sales, cash receipts, purchases, human resources, and production o These are installed to differentiate themselves from the competitors Enterprise resource planning (ERP) - are software packages that can be used for the core systems necessary to support the enterprise system. o designed to offer integration of virtually all of the organization's business functions o allow companies to standardize systems across multiple location and divisions to link processes and data in consistent fashion providing access throughout company to all data o At first, most adopters were involved in manufacturing and very large enterprises because costs were extremely high smaller companies didn't have the funds Most Common Add-On Modules to ERPs customer relationship management (CRM)- builds and maintains an organization's customer related database o data is collected from the web, call centers, field sales, service calls, and dealer network o the goal is to personalize your experience and increase business by making experience pleasant and efficient according to personal buying habits customer self service (CSS)- allows organization customers to complete and inquiry, perform a task, or trouble shoot problems without the aid of employees o allows customers to check order status', review availability, and check production plans sales force automation (SFA)- automates sales tasks such as processing, contacting management, inventory monitoring, order tracking, and employee performance supply chain management (SCM)- helps plan and execute the stops in an organization's supply chain o includes demand planning, acquiring inventory, and manufacturing, distributing, and selling products product lifecycle management (PLM)- manages product data during a product's life, beginning with design, continuing with manufacture, and ending in disposal supplier relationship management (SRM)- manages interactions with organizations that supply goods and services to an enterprise just as CRM software streamlines processes between enterprise and customers o goal is to reduce product and production costs and enhance quality best of breed approach- combines modules from various vendor to create an info system that better meets organization's needs than a standard ERP system middleware- software product that connects 2 or more separate applications or software modules application programming interface (API)- a means for connecting to a systems or application provided by developers of the application enterprise application integration (EAI)- combines processes, software, standards, and hardware to link 2 or more systems and allow them to operate as one
Enterprise Service Bus (ESB) - uses standardized protocols to let event driven applications communicate in a less expensive manner than can tightly coupled synchronous EAI platforms business process management (BPM)- concept much larger than systems integration providing a method for integrating manual and automated internal processes, applications, and systems, as well as, integration to external partners value a chain- chain of activities performed by the organization to transform inputs to outputs valued by the customer o used to examine the role that enterprise systems play in the success of an organization o 2 activities= primary and support activities o primary- those directly involved in marketing, selling, producing, and delivering the good or service o support- provide the supporting infrastructure to enable primary activities include info technology, human resources, and accounting o value chain must traverse independent activities (silos) and join these into end to end business process called cross functional integration Differentiation is created through production of superior quality with innovative products and services, by responsiveness to customers on features of design and customization and quality of service. event driven architecture (EDA)- approach to designing and building enterprise systems in which business events trigger messages to be sent by middleware between software modules that are different data entered multiple times may lack consistency, completeness, and accuracy Information Systems Supports functioning of Organization by: o facilitating the functions of operations as business events occur o retaining the records about these events o storing the data that is useful for decision making 4 W's for Capturing Data in Business processes 1. Who 2. What 3. Where 4. When 2 types of data: master data (entity data) and business event data (event data) character- a basis unit of data (letter, number, or special) field- collection of related characters that comprise attribute (customer number or name) record- collection of related data fields pertaining to particular entity or event table- collection of records (customer table or sales order table) Major ERP Models 1. Sales and Distribution- contains the functions related to sale of goods including customer order, shipping, and billing o 3 steps= order entry, shipment, and billing 2. Materials Management- contains the functions related to acquisition of goods from vendors and management of goods while in stock
o 3 steps= purchase order, receiving goods, and recording vendor invoice 3. Financial Accounting- central role in system taking events from other models and recording into general ledger accounts and in external statements (BS, IS, and Statement of CF) 4. Controlling and Profitability Analysis- handles internal accounting, including cost center accounting, profitability for sales, activity based accounting, and budgeting 5. Human Resource- functions related to the recruitment, management, and administration of personnel, payroll, and training. o 3 steps= benefits, training, and work shifts 2 Processes of Business events 1. order to cash- includes events surrounding the sale of goods to a customer, the recognition of the revenue, and the collection of the customer payment - comprises all activities in order of entry/sales process, billing/ AR/ Cash receipts process, and general ledger process 2. purchase to pay- includes the events surrounding the purchase of goods from vendor, recognition of the cost of those goods, and payment to vendor - comprises purchasing process, AP/cash payments, and general ledger process