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Akram Jalal
Ahlia University
MIS
College of Business and Finance
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COURSE IDENTIFICATION
Email: ajalal@ahliauniversity.edu.bh
Phone:
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Dr. Akram Jalal
COURSE IDENTIFICATION (cont)
ASSIGNMENTS:
One assignment.
Each student will be assigned one chapter to review and present. Presentation
should take around 30 to 45 minutes.
Assignments must be presented using PowerPoint tool.
Project
Each student will be asked to choose a subject from any area they like and
produce a research report in order to solve a particular research problem.
Late submissions will be penalized by at the rate of 10% per day. Submission
later than four days will not be accepted.
All projects should be written in word processing tool. Hand writing projects are
not accepted.
All students should achieve their own work according to the Ahlia University
rules, which means you must write up your favourite solution independently.
Exams:
Exam 1 will be given in-class on ------. This exam will covers material and
chapters covered in all lectures 1 and 2. The date of exam 2 is based on the final
year exams timetable.
Both exams are closed book.
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GRADING:
Exam I : 30%,
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CHAPTER 1
Introduction to
Enterprise Systems for
Management
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Learning Objectives
• Understand the information systems evolution and its
historical role in the organization leading to systems
integration and Enterprise Resource Planning (ERP).
• Learn about ERP systems and evolution, components,
and architecture; understand the benefits and
drawbacks of implementing ERP systems
• Gain an overview of the implementation process (e.g., the
ERP life cycle, business process reengineering project
management, and change management).
• Comprehend the ethical, global, and security challenges
while implementing an ERP system, and look at the ERP
vendors and industry trends.
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Preview
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Information Systems in Organizations
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Information Systems in Organizations (Cont’d)
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Information System Components
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Phases of an Information System
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Role of Information Systems in the Enterprise
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Management Pyramid with Information Requirements
• Strategic level:
• Functions are highly
unstructured, and resources
are undefined
• Less quantitative requirements
• Operational Level:
• Functions are highly structured,
and resources are predefined
• quantitative requirements are
more
• Mid-management Level:
Somewhere in between
The CEO of a company may need
(interest in) a report that quickly
states how a particular product is
performing in the market in different
times and places (compared with
other companies). Whereas
operational management interest in
detailed sales report of all products
that he/she responsible for last in
the month. 14
Business Processes and Information Systems
Other business processes cross many different functional areas and require
coordination across departments. For example fulfilling customer order: First
sales department would receive a sales order. The order will pass first to
accounting to ensure the customer can pay for the order. Then, production
department pull the product from inventory and finally product needs to be
shipped.
Fulfilling a customer order involves a complex set of steps that requires the close
coordination of the sales, accounting, and manufacturing functions.
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.
• Over time, Information Systems create a mixture of
independent nonintegrated systems, which ultimately
creating bottlenecks and interfering with productivity.
• In today’s globally combative environment, an organization will
find it difficult to operate and survive with silo information
system
• Organizations need to be agile and flexible and will require
their information systems to have integrated data,
applications, and resources from across the organization.
• To compete effectively, organizations have to be customer
focused.
– This requires cross-functional integration among the
accounting, marketing and other departments of the organization.
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Enterprise Resource Planning (ERP) Systems
WHAT IS AN ERP SYSTEM?
• Enterprise Resource Planning Systems are the first
generation of enterprise systems meant to integrate data
across and support all the major functions of the
organization.
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Enterprise Resource Planning (ERP) Systems (Cont’d)
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ERP Components Integration
• Each component must be layered
appropriately and each layer must
support the efficiency of the
other layers.
• The layered approach also
provides the ability to change
layers without significantly
affecting the other layers.
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ERP Architecture
• The architecture of an ERP system influences the cost,
maintenance, and the use of the system.
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Logical Architecture of an ERP System
• The logical architecture
provides database schemas of
the entities and relationships at
the lower tier, followed by
• The core business processes
and business logic handled by
the system at the second tier.
• The third tier provides the
details on the applications that
support the various business
functions built in the ERP
system.
• The end users do not ever see
the first and second tiers
because they interact primarily
with the client user interface
application tier that provides
them access to the functional
application.
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Physical focuses Architecture:
Tiered Architecture Example of ERP System
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E-Business and ERP
• Since the late 1990s, e-business and ERP have emerged as
complementary technologies, rather than the competing technologies.
E-Business ERP
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E-Business and ERP
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System Benefits of an ERP System
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System Limitations of an ERP System
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Business Benefits of an ERP System
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ERP Implementation
• ERP systems 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 environment. Both needs flexibility to adapt with each other.
• Before implementing ERP, an organization has to plan and understand
the ERP life cycle.
• The key for a successful implementation is to use a proven
methodology, take it one step at a time, and begin with an
understanding of the ERP life cycle. With no methodology, deadline
will likely be missed, budget overspent, and functionality will not meet
the client’s needs.
• ERP system implementations are very risky, and using a well-defined
project plan with a proven methodology will assist in managing those
risks.
• There must be a strong well-communicated need to make the change
from the existing information systems/applications to an ERP system
before starting any ERP implementation. Clear business objectives.
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ERP Life Cycle
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ERP Implementation Methodology
• The project methodology needs to be documented, reviewed and
fully understood by everyone involved in the project once objectives
are outlined.
• This is a sample ERP implementation methodology.
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Product Life Cycle
• Implementing ERP system require considering current business
process and changes to those processes based on the functionality
of the new system. If Business processes are not organized and
compared with what the new system can do, it is very likely require
significant modification after implementation.
• In developing the business case for an ERP implementation one must
make a decision on the number of modification to be made to
address business requirements.
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Software and Vendor Selection
These criteria should help narrow down the selection to one ERP vendor that
best fit the organization.
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Operations and Post-Implementation
• Going live (“Go-live”) is one of the most critical points in a
project’s success.
• It is vital to focus the efforts of all project teams to ensure
that tasks and activities are completed before going live.
Five areas of stabilization are important:
• Training for end-users
• Reactive support (i.e., help desk for troubleshooting)
• Auditing support to confirm data quality and Data fix to
resolve data migration and errors revealed by audits
• New features and functionalities to support the evolving
needs of the organization
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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. It must
follow a process that leads to sound decision making and creates a
high level of trust and accountability with all involved in
implementation.
Consultants
It is often the case for organizations without much ERP implementation
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experience to use implementation partners such as consultants.
People and Organization (Cont’d)
Change Management
CM Role is essential because it prepares for changes to how business
is done. In implementing new systems, communicating, preparing, and
setting expectations is as important as providing training and support.
Business Process Re-engineering
Business process is a group of activities or tasks that are
coordinated for achieving a business goal (e.g. ordering supplies,
targeting customer, designing new products, etc.).
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ERP Vendors
SAP
SAP is the recognized global leader among ERP vendors
with over 12 million users. Its solutions are for all types of
industries and for every major market. www.sap.com
Oracle/Peoplesoft
As the second largest ERP vendor, Oracle provides
solutions divided by industry category and promises long-
term support for customers of PeopleSoft- (acquired in
2004). www.oracle.com
Infor
The world’s third largest provider of enterprise software. It
delivers integrated enterprise solutions in supply chain,
customer relationship and suppliers management.
www.infor.com/infor/
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ERP Vendors (Cont’d)
Microsoft Dynamics
Formerly Microsoft Business Solutions or Great Plains,
Microsoft Dynamics is a comprehensive business-
management solution built on the Microsoft platform.
Lawson
Industry-tailored software solutions that include enterprise
performance management, distribution, financials, human
resources, procurement, and retail operations.
www.Lawson.com
SSA Global
Acquired Baan in 2004.They claim to offer solutions that
accomplish specific goals in shorter time frames and are
more efficient with time.
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Implications for Management
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Summary
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Summary (Cont’d)
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Summary (Cont’d)
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Review Questions
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Review Questions (Cont’d)
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