CH 2_Re-engineering & ERP

CH 2_Re-engineering & ERP - Re-engineering and...

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Unformatted text preview: Re-engineering and Enterprise Resource Planning SystemsRe-engineering and Enterprise Resource Planning SystemsWhat Is Re-EngineeringRe-engineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements and critical, contemporary measures of performance, such as cost, quality, service, and speed.Re-engineering is the combination of technology and innovative procedures.Re-engineering requires the efficient redesign of the companys value chain.Value chain consist of two parts:-Re-engineering and Enterprise Resource Planning SystemsPrimary activities Secondary ActivitiesPrimary activities It includes inbound logistics, operations, outbound logistics, marketing, and service.These activities are concerned with creating, producing, and marketing, selling, and supporting a product or service.Re-engineering and Enterprise Resource Planning SystemsSecondary ActivitiesIt includes organizational structure, human resources, technology, and purchasing.A set of secondary activities support the primary activities of the organization.Information systems can support secondary activities by facilitating timely communication, enabling purchasing agents to link suppliers database to place orders, check pricing and determining inventory levelsRe-engineering and Enterprise Resource Planning SystemsElements of Business Re-engineeringElementsActivitiesBusiness processesDo not automate existing business processes; break away from outdated rulesIntegrationIntegrate business processesTechnologyUse technology to re-design business processesCross-functional coordinationRe-design business processes from a cross-functional viewTimingImprove processes continuouslyObjectiveImplement market-driven strategies designed to provide a competitive edgeRe-engineering and Enterprise Resource Planning SystemsRe-engineering case studiesBefore Re-engineeringAfter Re-engineeringBusiness ImpactFord Motor Company Accounts PayableIndependent databases maintained by purchasing, receiving, and accounts payableAn integrated database supporting multiple functions (e.g., purchasing, receiving, accounts payable)Fewer inconsistencies; reduction in clerical overhead; better responsiveness to customersIBM Credit AuthorizationMulti-step credit authorization process involving multiple departments and multiple individuals...
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This note was uploaded on 11/08/2010 for the course SCM STSCM taught by Professor Hoogover during the Spring '10 term at E. Kentucky.

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CH 2_Re-engineering & ERP - Re-engineering and...

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