Definition of an Enterprise System

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Definition of an Enterprise System

• An enterprise system is an interrelated set of
  information systems (technologies) working
  together for the purpose of facilitating
  planning, control, coordination, and decision
  making in businesses and other organisations to
  aid in achieving the vision and mission of the
  organisation

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Enterprise SystemsDecision Support Systems
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Basic I.S. Activities

• Basic activities
• Input capturing or collecting raw data from
  inside or outside the organisation
• Processing converting the raw data into a more
  appropriate or useful form
• Output transferring the processed data to the
  people or business activities that need it
• Feedback output used to refine input
• Basic Components
• Organisations consist of specialised units with
  a clear-cut division of labour, e.g. sales,
  manufacturing, personnel, finance
• People use information from I.S. in their jobs
• Technology the means by which data are
  transformed and organised for business use
• Hardware, Software, Storage technology,
  Communications technology

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The Organisation
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Strategic Management Defined

• Art science of formulating, implementing, and
  evaluating, cross-functional decisions that
  enable an organization to achieve its objectives

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Strategy Formulation

Vision Mission
External Opportunities Threats
Internal Strengths Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection
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Strategy Implementation

Annual Objectives
Policies
Employee Motivation
Resource Allocation
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Strategy Implementation

• Action Stage of Strategic Management
• Most difficult stage
• Mobilization of employees managers
• Interpersonal skills critical
• Consensus on goal pursuit

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Strategy Evaluation

Internal Review
External Review
Performance Metrics
Corrective Actions
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Strategy Evaluation

• Final Stage of Strategic Management
• Subject to future modification
• Todays success no guarantee of future success
• New different problems
• Complacency leads to demise

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Strategic Management

• Integrating Intuition and analysis
• objective, logical, systematic approach for
  making major decisions in a way that allows
  effective decisions to be made under conditions
  of uncertainty.
• Adapting to change
• organizations should continually monitor internal
  and external events and trends so that timely
  changes can be made as needed.
• The rate and magnitude of changes that affect
  organizations are increasing dramatically.

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Strategy Formulation

Vision Mission
External Opportunities Threats
Internal Strengths Weaknesses
Long-Term Objectives
Alternative Strategies
Strategy Selection
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Key Terms

• Vision Statement
• What do we want to become?
• Mission Statement
• What is our business? Mission statements are
  enduring statements of purpose that distinguish
  one business from other similar firms. A mission
  statement identifies the scope of a firms
  operations in product and market terms. It
  addresses the basic question that faces all
  strategists What is our business? It should
  include the values and priorities of an
  organization.

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Mission state examples

• Microsoft vision A personal computer in every
  home running Microsoft software.
• Microsoft is to create software that empowers and
  enriches people in the workplace at school and at
  home.

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Key Terms
Opportunities and Threats (External)

• Largely beyond the control of a single
  organization

Process of conducting industrial analysis
research, gathering and assimilating external
information
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Key Terms

• Opportunities Threats (External)

• Analysis of Trends
• Economic
• Social
• Cultural
• Demographic/Environmental
• Political, Legal, Governmental
• Technological
• Competitors

Take advantage of External Opportunities
Avoid/minimize impact of External Threats
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Key Terms
Strengths Weaknesses (Internal)

• An organisations controllable activities that are
  performed especially well or poorly

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Key Terms

• Strengths Weaknesses (Internal)

• Analysis of performance in in functional areas
  such as
• Management
• Marketing
• Finance/Accounting
• Production/Operations
• Research Development
• Computer Information Systems

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• Long-term Objectives
• Objectives or specific results that an
  organization seeks to achieve in pursuing its
  basic mission.

• Essential for ensuring the firms success
• Provide direction
• Aid in evaluation
• Create synergy
• Focus coordination
• Basis for planning, motivating, and controlling
• The objectives should be at least measurable,
  consistent clear and reasonable.

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Key Terms

• StrategiesMeans by which long-term objectives
  are achieved
• Some Examples
• Geographic expansion
• Diversification
• Acquisition
• Market penetration
• Annual ObjectivesShort-term milestones that
  firms must achieve to attain long-term objectives
• PoliciesMeans by which annual objectives will be
  achieved

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Some benefits of SM

• Its benefits can be financial and non financial
• enhanced awareness of external threats,
• an improved understanding of competitors
  strengths,
• increased employee productivity,
• reduced resistance to change,
• and a clearer understanding of performance-reward
  relationships.

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Impact upon enterprise structure

• Scott Mortons 5 levels of organisational
  restructuring

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Impact upon enterprise structure

• evolutionary levels
• localised exploitation within individual business
  functions. The primary objectives addressed are
  local efficiency and effectiveness
• internal integration between different systems
  and applications, generally involving not just
  automation, but also rationalisation, and using a
  common IT platform. Efficiency and effectiveness
  are enhanced by coordination and cooperation
  within the enterprise

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Impact upon enterprise structure

• revolutionary levels
• business process redesign, involving more
  thorough re-evaluation of the enterprise
  value-chain and the production process, and more
  far-reaching change.
• business network redesign, the reconfiguration of
  the scope and tasks of the business network
  involved in the creation and delivery of products
  and services. Coordination and cooperation
  extend, selectively, beyond the enterprise's
  boundaries.
• business scope redefinition, involving migration
  of functions across the enterprise's boundaries,
  to the extent of changing the organisation's
  conception of the business it is in.

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Questions on the class

• Discuss which stage(s) of the strategic
  formulation process are the most suitable to the
  utilisation of Enterprise information systems.
• Discuss how you, as head of the school of
  computing would derive strategies for increasing
  the popularity of DT211 degree in computing
  this can not include altering module syllabi