Transcript Ch.10 Enterprise Information Systems

Lecture 8
Ch.10
Enterprise Information
Systems
10.1 Enterprise Systems
They integrate the functional systems such as finance,
marketing, and operations.
Key types of enterprise systems
ERP: Enterprise Resource Planning
SCM: Supply Chain Management
CRM: Customer Relationship Management
KM: Knowledge Management
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Why ERP?
10.2 Enterprise Resource Planning (ERP) Systems
• ERP: infrastructure that links an
enterprise’s internal applications and
supports its external business
processes, e.g., Under Armour
• Managers can stay informed of what’s
going on in other departments that
impact their operations or
performance.
• ERP can create a competitive edge
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Figure 10.5 Experts identify what’s most important to the success of
an ERP
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10.3 Supply Chain Management (S
CM) Systems
Managing the Flow of Materials, Data, and Money
• Material or product flow: For example, chipmaker Intel
supplies computer chips to its customer Dell. Dell
supplies its computers to end-users. Products that are
returned make up what is called the reverse supply
chain because goods are moving in the reverse direction.
• Information flow: Movement of detailed data among
members of the supply chain, e.g., order information,
customer information, order fulfillment, delivery status,
and proof-of-delivery confirmation.
• Financial flow: Transfer of payments and financial
arrangements, e.g., billing payment schedules, credit
terms, and payment via electronic funds transfer (EFT).
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SCM & ERP
10.5 Customer Relationship Management (CRM)
Systems
• According to management guru Peter Drucker:
Those companies who know their customers, understand their
needs, and communicate intelligently with them will always ha
ve a competitive advantage over those that don’t.
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IT at Work 10.4
1-800-Flowers.com Uses Data Mining for CRM
• The company decided to cultivate brand loyalty.
• Using SAS Enterprise Miner, 1-800-FLOWERS.C
OM sifts through data (such as historical purchas
es) to discover trends, explain outcomes, and pre
dict results so that the company can increase res
ponse rates and identify profitable customers.
• Collecting data at all customer contact points, th
e company turns those data into knowledge for
understanding and anticipating customer behavi
or, meeting customer needs, and building more
profitable customer relationships.
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10.6 Knowledge Management (KM) Systems
Knowledge has two types
1). Explicit knowledge
Explicit knowledge has been codified (documented) in a form that can be
distributed to others or transformed into a process or strategy without
requiring interpersonal interaction.
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Explicit knowledge (or leaky knowledge) deals with objective, rati
onal, and technical knowledge
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Data
Policies
Procedures
Software
Documents
Products
Strategies
Goals
Mission
Core competencies
The more that knowledge is made explicit, the more economically
it can be transferred.
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2). Tacit knowledge
Tacit knowledge is usually in the domain of subjective, cognitive, and experie
ntial learning; it is highly personal and difficult to formalize. It is also
referred to as embedded knowledge since it is usually either localized within
the brain of an individual or embedded in the group interactions within a
department or business unit.
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Tacit knowledge is the cumulative store
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of the corporate experiences
Mental maps
Insights
Acumen
Expertise
Know-how
Trade secrets
Skill sets
Learning of an organization
The organizational culture
Tacit knowledge is generally slow and costly to transfer and can
be plagued by ambiguity.
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Create
Figure 10.12 KM
Systems Cycle
Capture
KNOWLEDGE
Refine
Disseminate
Manage
Store
1. Create knowledge. Knowledge is created as people learn new ways of
doing things
2. Capture knowledge. New knowledge is represented in a reasonable way
3. Refine knowledge. New knowledge is put into context
4. Store knowledge. Useful knowledge is stored so that others can access it
5. Manage knowledge. Knowledge must be kept current and accurate
6. Disseminate knowledge. Knowledge must be made available
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