ch08_v8_notes - 1 Essentials of Business Information...

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Essentials of Business Information Systems, 8E Chapter 8 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Over the last decade businesses have come to realize how important it is to totally integrate business processes across the enterprise. We’ve spoken about “islands of information” many times. In today’s fast-paced world, managing information assets is more important than ever before. In this chapter we’ll look at how important it is for information to be available in every nook and cranny of an enterprise. 8.1 Enterprise Systems We’ve look at enterprise resource planning systems in previous chapters and also discovered the importance of efficiently and effectively maintaining data that businesses can develop into useful information. As we’ve seen, it can be disastrous for an organization to have more than one set of data for customers, employees, and suppliers. The best idea is to have one database that supplies information where and when necessary across functional lines. Everyone from employees to managers, from customers to suppliers, would have the necessary tools to extract the data that they need and present it in the format that fits them best. That’s where enterprise systems come in. What are Enterprise Systems? Enterprise systems aim to correct the problem of firms not having integrated information. Also known as enterprise resource planning (ERP) systems, their main goal is to bridge the communication gap among all departments and all users of information within a company. If production enters information about its processes, the data are available to accounting, sales, and human resources. If sales and marketing is planning a new advertising campaign, anyone anywhere within the organization will have access to that information. Enterprise systems truly allow a company to use information as a vital resource and enhance the bottom line. Data integration throughout the firm is the key. Consolidated data from divisions and departments throughout the business, including key business processes, are immediately available to any authorized user. The greatest enticement of enterprise systems is the chance to cut costs firm-wide and enhance the ability to pass information throughout the organization. Take the success of Oracle Corporation as an example. “The company now has an enterprise-wide system for managing customer contacts. Previously, the salesforce used a network that was different from the fulfillment and shipping network. By unifying these networks, salespeople don’t have to duplicate the efforts of others in the organization, and thereby save time and money. At the beginning of the year, the company said that it expected the 1
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changeover to save $1.2 billion over the next four quarters. Just three months later, Chief Financial Officer Jeff Henley told analysts that Oracle will save nearly twice that by year-end.” (BusinessWeek, April 6, 2000) Enterprise Software Many businesses assume that their operations are totally integrated across functional
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This note was uploaded on 11/27/2010 for the course IS 3300 taught by Professor Pettey during the Spring '08 term at Troy.

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ch08_v8_notes - 1 Essentials of Business Information...

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