Enterprise system lecture1 By Nadia khizar Agenda Introduction

Enterprise system lecture#1 By Nadia khizar

Agenda � Introduction � What is ES � Why we use ES � How we use ES � Where we use ES � ES DATA � ES data characterizes � Difference between ES and other system like erp system etc. � SCM

Intro to enterprise system Enterprise is another term for profit business or company. enterprise is project a willingness to take on new project. System , a set of principal or procedure according to which something is done an organized scheme or method.

Continued … Defined as the large complex computing systems which handle large volumes of data and enable organizations to integrate and coordinate their business processes. Such systems normally are a single system central to organizations and ensure that information can be shared across all functional levels and management hierarchies.

Continued … � Enterprise systems are software that provides solutions to an integrated business organization. � Information systems that allow companies to integrate information across operations on an enterprise-wide basis

Continued … � Web-based information systems such as Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer Relationship Management (CRM), tying together all aspects of the enterprise so that operations, the supply chain, distribution channels, accounting systems, and other information transfers are coordinated among the core firm and all relevant collaborators.

Continued … � Large and complex information systems, which manage large volumes of data and support organizations to integrate and coordinate their business processes

� Commercial software packages that enable the integration of transaction-oriented data and business processes throughout an organization. The systems include enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), product life-cycle management (PLM) and e-procurement software.

Enterprise data � Enterprise data is data created by central business processes stored in enterprise applications (e. g. , People. Soft) and is available to be shared through applications and reporting tools to the University community. Enterprise data is a critically important asset to the University and as such, time and resources are needed to safely manage and share the data through careful and effective data modeling, storage, and access provisioning.

Characteristics and usage of enterprise data include �Integration: Ensures a single consistent version of enterprise data for sharing throughout the enterprise. �Master data management: Enterprise data can be generated from multiple applications, requiring the need to identify, map, and reconcile Master Data across enterprise applications to reduce duplicative data. �Quality: Data quality is achieved through consistent business processes and monitored at the enterprise application level. �Availability: Enterprise data must be available through a number of systems, methods and tools to a variety of users

� Usability: The value of data is based on the ability to answer critical questions to meet specific business needs and decisions. � Security: In addition to being available and usable, enterprise data must be secure.

Examples of enterprise data include: � Course information such as term (1169 = Fall 2016), course description (Descr = Biochemistry) and subject (BIOC) from the People. Soft system and corresponding student enrollment data are examples of enterprise student data. � Human Resources (HR) information such as job code (9790 B 2), Job Code_Descr (Business/Systems Analyst 2), and corresponding employee data are examples of HR data from People. Soft.

� Examples of financial information includes Dept ID (10005), Dept ID_Descr (EFS Module Support Team), and RRC (CONTR) from People. Soft and corresponding transaction detail are examples of enterprise financial data.

How ES work …

� Enterprise systems feature a set of integrated software modules and a central database that enables data to be shared by many different business processes and functional areas throughout the enterprise. � One of the key ideas of enterprise solutions is that there’s “one company, one database” and not a collection of disconnected databases.

Business value of enterprise systems • Increase operational efficiency. • Provide firm wide information to support decision making. • Enable rapid responses to customer requests for information or products. • Include analytical tools to evaluate overall organizational performance.

Enterprise Applications: New Opportunities and Challenges • Enterprise application challenges • Highly expensive to purchase and implement enterprise applications • Average “large” system—$12 million + • Average “small/midsize” system—$3. 5 million • Technology changes • Business process changes • Organizational learning, changes • Switching costs, dependence on software vendors • Data standardization, management, cleansing

� Next-generation enterprise applications ◦ Enterprise solutions/suites: ◦ ◦ ◦ �Make applications more flexible, Web-enabled, integrated with other systems SOA standards Open-source applications On-demand solutions Cloud-based versions Functionality for mobile platform

SCM � Supply chain management (SCM) is the centralized management of the flow of goods and services and includes all processes that transform raw materials into final products. By managing the supply chain, companies are able to cut excess costs and deliver products to the consumer faster. � Supply chain management (SCM) involves planning, execution, control, and monitoring of supply activities

Supply Chain Management Systems • Network of organizations and processes for: • Procuring raw materials • Transforming them into products • Distributing the products • Upstream supply chain: • Firm’s suppliers, suppliers’ suppliers, processes for managing relationships with them • Downstream supply chain: • Organizations and processes responsible for delivering products to customers

Information and Supply Chain Management � Information is crucial to supply chain performance because it provides the foundation on which supply chain processes execute transactions and managers make decisions. Without information, a manager cannot know what customers want, how much inventory is in stock, and when more products should be produced or shipped.

Information and Supply Chain Management • Inefficiencies cut into a company’s operating costs • Can waste up to 25 percent of operating expenses • Just-in-time strategy: • Components arrive as they are needed • Finished goods shipped after leaving assembly line • Safety stock • Buffer for lack of flexibility in supply chain • Bullwhip effect • Information about product demand gets distorted as it passes from one entity to next across supply chain

� Inaccurate information cause minor fluctuations in demand for a product to be amplified as one moves further back in the supply chain. Minor fluctuations in retail sales for a product can create excess inventory for distributors, manufacturers, and suppliers.

Supply Chain Management Software • Supply chain planning systems • Model existing supply chain. • Demand planning. • Optimize sourcing, manufacturing plans. • Establish inventory levels. • Identify transportation modes. • Supply chain execution systems • Manage flow of products through distribution centers and warehouses.

Global Supply Chains and the Internet • Before Internet, supply chain coordination hampered by difficulties of using disparate internal supply chain systems. • Enterprise systems supply some integration of internal supply chain processes but not designed to deal with external supply chain processes. • Intranets and Extranets • Intranets: to improve coordination among internal supply chain processes • Extranets: to coordinate supply chain processes shared with their business partners

Intranets and Extranets for Supply Chain Management

Global Supply Chains and the intranets � Intranets integrate information from isolated business processes within the firm to help manage its internal supply chain. Access to these private intranets can also be extended to authorized suppliers, distributors, logistics services, and, sometimes, to retail customers to improve coordination of external supply chain processes.

Global Supply Chains and the Internet � Global supply chain issues: � Global supply chains typically span greater geographic distances and time differences. � More complex pricing issues (local taxes, transportation, etc. ). � Foreign government regulations. � Internet helps companies manage many aspects of global supply chains. � Sourcing, transportation, communications, international finance

• Supply chain management systems • Push-based model (build-to-stock) • Schedules based on best guesses of demand • Pull-based model (demand-driven) • Customer orders trigger events in supply chain • Sequential supply chains • Information and materials flow sequentially from company to company • Concurrent supply chains • Information flows in many directions simultaneously among members of a supply chain network

Push- Versus Pull-Based Supply Chain Models

� The difference between push- and pull-based models is summarized by the slogan “Make what we sell, not sell what we make

The Future Internet-Driven Supply Chain

� The future Internet-driven supply chain operates like a digital logistics nervous system. It provides multidirectional communication among firms, networks of firms, and e-marketplaces so that entire networks of supply chain partners can immediately adjust inventories, orders, and capacities.

Business Value of Supply Chain Management Systems • Match supply to demand. • Reduce inventory levels. • Improve delivery service. • Speed product time to market. • Use assets more effectively. • Reduced supply chain costs lead to increased profitability. • Increase sales

Difference between ES AND ERP � � �