Samenvatting 1BV20
Inhoud
L1 - Chapter 1 – Introduction to Enterprise Systems for Management ................................................ 2
Chapter 2 – Systems Integration ........................................................................................................... 4
Lecture 1 – Introduction to BISM .......................................................................................................... 6
Chapter 10 – Supply Chain Management.............................................................................................. 6
Chapter 11 – Customer Relationship Management .............................................................................. 9
L2 - Chapter 3 – Enterprise Systems Architecture ............................................................................... 11
L3 - The Nine Elements of Digital Transformation .............................................................................. 15
Porter’s Five Forces vs Resource Based View – a Comparison ............................................................ 16
Strategic Use of Information Resources .............................................................................................. 17
L4 - Don’t Just Lead, Govern: How Top-Performing Firms Govern IT .................................................. 19
Building Better Business Cases for IT Investments .............................................................................. 22
L5 - Chapter 4 – Development Life Cycle ............................................................................................ 25
L6 - Chapter 8 – Program and Project Management ........................................................................... 29
ERP implementation: a compilation and analysis of Critical Success Factors ..................................... 34
1
,L1 - Chapter 1 – Introduction to Enterprise Systems for Management
ENTERPRISE SYSTEMS IN ORGANIZATIONS
Business organizations have become very complex due to an
increased layer of management hierarchy and an increased level of
coordination across departments. Management is generally
categorized into three levels:
At the strategic level, functions are highly unstructured and
resources are undefined, whereas functions are highly structured
and resources are predefined at the operational level. The mid-
management level is somewhere in between depending on the
hierarchy and organizational size. The pyramid therefore suggests
that managers at the higher level require a smaller quantity of information, but that it is a very high
quality of information. On the other hand, the operational-level manager requires more detailed
information and does not require a high level of analysis. See this as Vertical Silos.
Horizontal Silos: Divide functionalized organization into five basic areas:
planning, organizing, coordinating, commanding, and controlling. Fayol's
classification was extended and conceptualized in the 1930s by Luther Gulick
into the functional model of POSDCORB (planning, organizing, staffing,
directing, coordinating, reporting, and budgeting).
Information Silos and Systems Integration
As organizations become larger and more complex, they tend to break functions into smaller units by
assigning a group of staff to specialize in these activities. This allows the organization to manage
complexity as well as some of the staff to specialize in those activities to enhance productivity and
efficiency. The role of information systems (IS) has been and always will be one of supporting business
activities and enhancing the workers’ efficiency. Today’s competitive business is cross-functional,
dynamic, and global. To compete effectively in today’s market, organizations have to be customer
focused and cost efficient. This has led to the creation of business units (BU) within organizations that
integrate personnel from the various functional units to work together on a variety of projects within
an organization. Business units are dynamic suborganizations created and eliminated depending on
need.
Figure 1:Isolated Systems (information Silos)
ENTERPRISE RESOURCE PLANNING SYSTEMS
What is an ERP?
Enterprise resource planning (ERP) systems are the specific
kind of enterprise systems to integrate data across and be
comprehensive in supporting all the major functions of the
organization. ERP systems are comprehensive software
applications that support critical organizational functions. The
goal is 1) to make information flow be both dynamic and
immediate, therefore increasing the usefulness and value of
the information, 2) to integrate departments and functions
across an organization onto a single infrastructure that serves
the needs of each department. Allowing various departments
to share information and communicate with each other more
easily.
Evolution of ERP Figure 2: Era of Integration
Shown at the right side of the page
Van Mainframe naar Client Server
Figure 3: Era of Enriched Functions offered on the Web
2
,Business Process and ERP
An organization has two choices when implementing ERP: change business
processes to match the software’s functionality or modify the ERP software.
ERP System Components
An ERP system has components such as hardware, software, database, information,
process, and people. The basic goal is to serve the organization by converting data
into useful information for all the organizational stakeholders. Hardware, software,
and data play a significant role in an ERP system implementation. Failures are often
caused by a lack of attention to the business processes and people components.
Both people involvement and process integration will need to be addressed from
the very early stages in the implementation plan.
ERP Architecture
The process of designing ERP system architecture is slightly different from other IT architectures.
Whereas other IT architectures are driven by organizational strategy and business processes, if
purchased, ERP architecture is often driven by the ERP vendor. This is often referred to as package-
driven architecture. The two types of architectures for an ERP system are logical and physical or tiered.
The logical architecture focuses on supporting the requirements of the end users, whereas the
physical architecture focuses on the efficiency (cost, response time, etc.) of the system.
e-Business and ERP
1. e-Business technology focus has been on linking a company with its external partners and
stakeholders, whereas ERP focus has been on integrating the functional silos of an
organization into an enterprise application.
2. e-Business is a disruptive technology, whereas ERP is adaptive technology.
3. Finally, the early focus of e-Business was on communication (e-mail), collaboration, marketing
and promotion (Web sites), and electronic commerce. These can all be considered front-office
functions that involve user and/or customer interactions. In contrast, the focus of ERP systems
was mainly on data sharing, systems integration, business process change, and improving
decision making through the access of data from a single source.
ERP IMPLEMENTATION
ERP systems are continuously changing and evolving to provide the organization with a new way of
looking at business processes and decision making. Organizations are also continuously changing to
match their environments. Both need the flexibility to adapt with each other in order to be successful.
System implementations are generally very complex, time consuming, and resource intensive. A
sample ERP implementation methodology in which there are five phases of the life cycle from
requirement gathering analysis to stabilization and production support, which are applied to the three
levels of ERP implementation: functional, technical, and organizational.
Business Process Management
Business process management is the understanding, visibility, and control of business processes. BPM
is similar to other process improvement disciplines, such as Lean Six Sigma, to improve organizations'
performance and employee productivity. The initial stage of BPM is to create an "as-is" process map
that defines the current process. The as-is process is then used as a baseline for determining where
the process may be improved. The real value of BPM comes from gaining visibility and control of the
business process. Taking a life cycle approach will help organizations achieve their process
improvement goals with ERP. BPM would be part of this ERP life cycle.
Software and Vendor Selection
In addition, most organizations that move from an in-house developed system to a purchased one find
they have to address the notion of system "personality" (i.e., owning the system). In-house-developed
systems fit an organization and its business processes very closely. With purchased systems, each is
developed with its own "personality" and requires adjusting to it. To utilize a purchased ERP system
fully requires time to continually learn how the system can work best within the organization.
3
, PEOPLE AND ORGANIZATION
Project Management
For an ERP system to be implemented successfully, project management must provide strong
leadership, a clear and understood implementation plan, and close monitoring of the budget. Project
management is the glue that holds the project together. A key component to project management is
to understand and communicate the ERP system application management life cycle.
Change Management
For major system implementations, the change management role is essential because it prepares an
organization for changes to how its business is done. In implementing any new system,
communicating, preparing, and setting expectations are just as important as supporting the
implementation.
Global, Ethical, And Security Management
Outsourcing and offshoring have become common themes across all industries when it comes to IT
development, maintenance, and support. Globalization has impacted ERP systems in many ways.
First, a majority of ERP vendors are global. SAP, Oracle, Microsoft, and others have support offices and
development teams spread around the globe. Second, large ERP implementation consultants have
global offices and staffs to help clients in ERP implementation projects all over the world; several
consultants are emerging from countries like India. Finally, software leasing or Software as a Service
(SaaS) is an emerging model for outsourcing for many companies that do not want to invest large
amounts of money on in-house ERP implementations. (Compliance Management).
IT can impact ethics in four ways, which can be summarized by means of an acronym PAPA.
Privacy is concerned with how personal information is safeguarded in the system. Accuracy
requires systems to validate the correctness of the data in the system and who is
responsible for this accuracy. Property governs who has ownership rights to the
information. Accessibility is concerned with who has access to what information.
Chapter 2 – Systems Integration
A company moves from silo systems to an Enterprise Information System (EIS). The critical benefit
from such conversions is usually the elimination of manual data re-entry. Another benefit is the
reduced dependence on spreadsheets to generate management reports and to answer special
management queries. The drawbacks of implementing integrated systems can include the high cost
of implementing an ERP system, the required process changes to benefit from the new system, and
training the employees to use this new system. In today's organization, integration of information
systems (IS) is very critical for their survival and growth. ERP systems are a major kind of EIS that
allows organizations to integrate the heterogeneous systems into one organization-wide application
with an integrated database management system.
BUSINESS PROCESS AND SILOS
The business process provides an alternative view of grouping people and resources
focusing on an organization's activity. The cross-functional business process can
involve people and resources from various functional departments working
together, sharing information at any level of the organization. This business process focus has moved
management thinking away from a functional department to business process view. The business
process view flattens the organizational structure from a hierarchy to a matrix where people and
resources from multiple functional units collaborated on such projects as new product development,
procurement, or order processing in order to serve the external entities of the organizations better
and quicker. This organizational evolution from functional silos to business process and customer-
centric approaches has had a big impact on the evolution of information systems.
4
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