Enterprise Information Systems

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1 Enterprise Information Systems Dr Sherif Kamel Department of Management School of Business, Economics and Communication

2 Enterprise Information Systems DSS to provide enterprise-wide support Support to executives Enabling decision making in different locations Enterprise Resource Planning (ERP)

3 Enterprises Systems Concepts and Definitions Executive information systems (EIS) Executive support systems (ESS) Enterprise information systems (EIS)

4 Evolution of Executive and Enterprise Information Systems Evolution of DSS 1980s: Top executives get Executive Information Systems 1995+: Move to everybody s information systems and enterprise information systems

5 Executive Information System (EIS) Computer-based system serving the information needs of top executives Provides rapid access to timely information and direct access to management reports Very user-friendly, supported by graphics Provides exceptions reporting and "drill-down" capabilities Easily connected to the Internet Drill down Quality of information Technical capability provided

6 Model EIS Software Applications Comshare Inc

7 Model EIS Software Applications Pilot Software Inc

8 Executive Support System (ESS) Comprehensive support system that goes beyond EIS to include Communications Office automation Analysis support Intelligence

9 Enterprise Information System (EIS) Corporate-wide system Provides holistic information From a corporate view Mainly business intelligence

10 Capabilities of Enterprise Information System Drill-down paths Critical success factors Strategic, managerial, or operational Sources: organizational, industrial, environmental Types of information monitored: Key problem narratives Highlight charts Top level financials Detailed key performance indicator responsibility reports

11 Capabilities of Enterprise Information System Status Access Relevance of latest data of key indicators Analysis Built-in analytical functions Integration with DSS products Analysis by intelligent agents Exception reporting Management by exception to standards Navigation of information Large amounts of data can be analyzed Audio and Visual Use of colors and sounds Communications , GSS, news groups, interface with voice mail

12 Information used in EIS Soft information enhances EIS Predictions, speculations, forecasts, estimates (78.1%) Explanations, justifications, assessments, interpretations (65.6%) News reports, industry trends, external survey data (62.5%) Schedules, formal plans (50.0%) Opinions, feelings, ideas (15.6%) Rumors, gossip, hearsay (9.4%)

13 Supply/Value Chains The flow of materials, information, and services from raw material suppliers through factories and warehouses to the end customers Includes the organizations and processes that create and deliver value to the end customers Traditionally the supply chain included the material flow from sources to finished product and disbursement within the organization and the demand chain included the order generation, taking, and fulfillment Now, it is the flow of material, information, services from suppliers through manufacturer to end user Supply chain management; to plan, organize, and coordinate the supply chain activities that can help: Increase effectiveness Reduce risk Decrease cycle time Improve customer service

14 Supply/Value Chains Upstream = suppliers Internal supply chain = changing inputs to outputs Downstream = distribution

15 Supply Chain Problems and Solutions Uncertainties Solutions Demand forecasts Delivery time Inventory and shipping management Quality issues JIT manufacturing Need to coordinate activities CRM Other issues Strategic partnerships Poor customer service Cultural problems Reduce number of intermediaries Uncertainty in demand forecast and in delivery times Outsourcing Quality problems

16 Information Flows Internal information from functional units External information from Internet, news media, government Environmental scanning

17 Comparing EIS to DSS EIS Supports upper management in discovering problems and opportunities Repetitive analysis High speed GUI based DSS Analyzes specific problem or opportunity Ad-hoc analysis Effective May have GUI Integration Uses EIS output to launch DSS Data from same places (single warehouse) Spreadsheets and graphics Web ready Integrates user roles

18 Enterprise Portals Corporate portals Integrate internal and external applications Web-based interface Effective distribution of information Encourage collaboration Search engines

19 Organizational EIS Focused on organizational task or activity affects several units Cuts across hierarchy layers and functional groups Web-based Provides more integration

20 Organizational EIS Integration Benefits Tangible benefits Intangible benefits Inventory reduction Visibility of information Personnel reduction Improved processes Improved productivity Better customer service Cost reductions Standardization Increased revenues Flexibility Delivery improvement Improved employee satisfaction Order management Reduction in maintenance Increased business performance

21 Enterprise Resource Planning (ERP) IS environment that integrates all departments and functions in the organization Shortens production times Based on value chain view Decreases costs in chain Expensive in building Increases customer service Single interface Facilitates business process changes Automates key business processes

22 Enterprise Resource Planning (ERP) Options Build your own Off-the-shelf packages Outsource Application Service Providers Problems ERP is a formal business process Organization s processes do not match the ERP Software capability and needs vary

23 Customer Relationship Management (CRM) Enterprise approach Communication-based Focused on customer acquisition, retention, loyalty and profitability Empowers employees Enables one-to-one marketing Allows for proper allocation of resources to each customer class

24 Customer Relationship Management (CRM) Data warehouses Business intelligence/business analytics Data mining Predictive analytics determine relationships Online Application Processing Integrated with GIS = geographical preferences Revenue management optimization software = optimized pricing Data mining workbench = targets promotions

25 Customer Relationship Management (CRM) Benefits Decrease expense of recruiting customer Reduce sales costs Greater profitability through targeting and segmentation Increase customer retention and loyalty Improve customer service Customer-focused Issues Failure to use software Integration Organizational culture Expensive Adapting business processes Training Allocation of time for deployment Commitment from top management

26 Product Lifecycle Management (PLM) Integrated, information driven Includes all aspects of product s life Goals Streamline development Increase innovation Requires integration of independent databases Shares information about product among different groups, both inside and outside organization Tracks electronic information about life of product Links together all required processes

27 Future Developments Hardware and software innovations Virtual reality Increased utilization of multimedia Increased collaboration and communication Intelligent agents

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