Chapter 2:Enterprise Systems

Accounting Information Systems, 9e

Gelinas ►Dull ► Wheeler

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Learning ObjectivesDescribe enterprise systems and enterprise

resources planning (ERP) systems.Illustrate the organization value chain.Describe the relationship of the organization

value chain and an enterprise system.Demonstrate the value of systems integration.Describe how an enterprise system supports

major business event processes.Enumerate the pros and cons of implementing

enterprise systems.

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Enterprise SystemsEnterprise systems:

Video: Costco Enterprise System Integrate business processes and information

from all of an organization’s functional areas. Helps coordinate the operation of business

functions and provide a central information resource for the organization.

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Inefficient Customer Service

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Solution to Inefficient Customer ServiceEnterprise system establishes ATP

(available to promise) by checking warehouses and scheduled manufacturing.

Enterprise systems uses the central database to automatically determine price and creditworthiness.

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Data Maintenance: Create Customer Record

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Business Event Data Processing:Enter Customer Order

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Using Stored Data for Decision Making

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Modules of ERP systems Enterprise Resource Planning (ERP)

Systems: Software packages that can be used for the

core systems necessary to support enterprise systems.

SCM CRM E-Collaboration

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SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) – tracks

inventory and information among business processes and across companies

Supply chain management (SCM) system – IT system that supports supply chain management

Just-in-time (JIT) – method for producing or delivering a product or service just at the time the customer wants it

Key feature of effective SCM Dell uses JIT to deliver custom computers

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Supply Chain Management

Most supply chains use inter-modal transportation, multiple transportation channels (railway, truck, etc) to move products from origin destination

This creates supply chain complexities

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Opportunities of SCM Business strategy

Overall cost leadership Wal-Mart

Goal is to squeeze out every penny of cost possible in the supply chain

This will optimize fulfillment, logistics, production, revenue and profit, and cost and price

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CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management (CRM) system – uses information about customers to gain insight into their needs, wants, and behaviors in order to serve them better

Includes multi-channel service delivery, multiple ways in which customers can interact with a business

Focuses on1. Sales force automation2. Customer service and support3. Marketing campaign management and analysis

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Customer Relationship Management

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Customer Relationship Management Sales force automation (SFA)

systems – automatically track all the steps in the sales process

Sales lead tracking Listing potential customers Market and customer analysis Product configuration Getting repeat customers

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Opportunities of CRM Business strategy

Differentiation and focus Growing the organization

Classic goals Treating customers better Understanding their needs and wants Tailoring offerings Providing “delightful” experiences

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E-COLLABORATION E-collaboration is the use of technology

to support1. Work activities with integrated collaboration

environments2. Knowledge management with knowledge

management systems3. Social networking with social networking

systems4. Learning with e-learning tools5. Informal collaboration to support open-source

information

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IT Support for E-Collaboration

Just a few of the literally hundreds of e-collaboration tools

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ENTERPRISE RESOURCE PLANNING How do you bring together SCM, CRM,

and e-collaboration systems? With an ERP system.

Enterprise resource planning (ERP) system – collection of integrated software for business management, accounting, finance, supply chain management, inventory management, customer relationship management, e-collaboration, etc.

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ENTERPRISE RESOURCE PLANNING

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Major ERP Vendors

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ERP Attempts to integrate everything

CRM drives what SCM will produce Everyone works together in e-collaboration The entire organization knows the entire

organization

Think about your school Can you register for class with a bill

outstanding? Can you register for a class for which you

haven’t completed the prerequisite?

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ERP Integrates Everything

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SD Audit Trail for Completion of Steps in the SAP Sales Process

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Audit Trail for Completion of Steps in the SAP Purchase Process

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Pros of Enterprise Systems

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Pros of ERP Packages

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Cons of Enterprise Systems and ERP Packages

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