IT and Business Models

1
IT and Business Models

• Chapter 10
• Value chain and organizational systems
  activities and organization

2
Enterprise ressource planning

• ERP systems is part of VCO systems Value Chain
  and Organization systems

3
ERP systems characteristics

• Long term systems vendor specific
• Requiring business process re-enginering
• High complexity

4
Information systems strategy

• Efficiency
• Cost-benefit
• Competitive advantage
• Effectiveness
• Redefine the boundaries of particular industries
• Develop new products or services
• Change the relationships between suppliers and
  customers
• Establish barriers to deter new entrants to
  marketplaces

5
Information systems strategy

• Application areas accounting, logistics and
  human resource management.
• Logistics
• Production
• Distribution
• Sales
• Materials management

6
Information systems strategy

• Application areas accounting, logistics and
  human resource management.
• Accounting
• Financial
• Controlling
• Investment management

7
Information systems strategy

• Application areas accounting, logistics and
  human resource management.
• Human resources
• Development
• Administration
• Payroll
• Workforce planning
• Time management
• Figure 10.2 Components of ERP systems.

8
Departments and ERP systems

• Marketing
• Customer service
• Production
• Procurement
• Inventory
• Accounting
• Human resources
• Sales

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Paper based systems

• Sales personel ? Writes order
• Sales manager ? Checks order
• Manufactoring ? Manufactures order
• Shipment ? Deliver order
• Accounting ? Invoice / Payment
• ? Documents

10
ERP systems

• The information flow of order processing
• Figur 10.5

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ERP systems the chatch

• Falling implementation ? bankrupcy

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ERP systems the business effect - 1

• Business process improvement
• Integration among business units
• Real-time access to data and information
• Standardization of company processes
• Increased flexibility
• Increased customer satisfaction
• Optimization of the supply chain
• Reduction of rework
• Business growth

13
ERP systems the business effect - 2

• Improvement of order-to-cash time
• Competitive positioning ability
• Implementation af shared services
• Improved time to market cycles
• Improved product quality

14
ERP systems

• Re-think your business model