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MN2001 4 Summary Notes

Summary notes for Managing Enterprise Systems which cover the entiret...

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Managing Enterprise Information System (MN20014)

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University of Bath

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MN20014: Managing Enterprise Systems Summary Notes

Open-book, time-limited exam (2hrs 30 minutes)

Lecture 1: Introduction....................................................................... MN20014 TABLE OF CONTENTS
- Data, Information, Knowledge..........................................................
- Different contexts of information systems......................................
- ICT in a business context.................................................................
Lecture 2: Enterprise Information Systems..........................................
- Enterprise Systems Definition..........................................................
- Order Fulfilment Process EXAMPLE...................................................
- Different ERP Systems.....................................................................
- Implementation Options..................................................................
- Data as a Cross-Organisational Resource..........................................
- Sub-Types of Enterprise Systems......................................................
- Customer Relationship Management...............................................
- Social Network Enterprise Systems................................................
Business Transformation.................................................................. Lecture 3: Information Systems, Operations, Business Models and
- Business Process and their Re-Design............................................
- Business Models............................................................................
- History of ICT Infrastructure..........................................................
- Innovation/ICT Capabilities Landscape............................................
- Business Transformation................................................................
- Impacts of Innovating with ICT.......................................................
- Case: Kenya Airways......................................................................
Lecture 4: Databases & Data Management........................................
- What are Databases......................................................................
- How Can Databases Be Modelled....................................................
- Referential Integrity......................................................................
- Tables & Queries: The Elements of Database Application.................
Lecture 5: Business Intelligence & Business Management..................
- Database Reports..........................................................................
- What Databases Can’t Do:.............................................................
Lecture 6: INformation Systems and Strategy....................................
- Business Strategy with IS..............................................................
- Business Models, Value Chain Model with IS...................................
- Strategic Planning with IS..............................................................
- McFarlan’s (1984) Strategic Grid....................................................
- Competitive Advantage with IS......................................................
Systems.......................................................................................... Lecture 6: Big Data, Business Analytics and Enterprise Information
- Big Data........................................................................................
- Business Intelligence & Analytics...................................................
- Big Data, Analytics & EIS...............................................................
Week 7: Privacy and Security Issues..................................................
- Managing Security.........................................................................
- Difference Between Privacy and Security........................................
Exam Technique...............................................................................
- Doing a Case Analysis....................................................................
- Consultancy Proposal: Structure/Context........................................
- Answering Questions.....................................................................
- Consolidation & Revision Template.................................................

à Knowledge = CS operative combines their experience of exception handling and customer satisfaction.

Data + meaning = information

Information + meaning = knowledge

Enabling of action: meaning comes from context. Information in one context is data in another.

Different contexts of information systems......................................

à In organisations e. Montblanc UK Retail Team à Internal context e. Montblanc UK à Supply Chain/Environment (external context) o B2B or B2C

Things to consider when critiquing theories... are they:

à Idealised à Oversimplified/categorical à Linear

ICT in a business context.................................................................

Impact of ICT:

à Increased interactivity à Increased standardization à Increased strategic importance à Increased connectivity

Key issues with introducing ICT in organisations

à Strategic planning à Competitive advantage à IS’s role and contribution à Aligning the IS function with the organisation à Organisational change

Context is critical for transforming data, information and creating knowledge. Innovation is about enabling new or better ways of doing things.

Digital business innovation is not just about the (new) technology, it’s about the technology in context, i. the information and communication systems.

Business contexts are complex and multi-layered. Identifying the relevant aspects of a situation for analysis is critical.

Lecture 2: Enterprise Information Systems..........................................

Enterprise Systems Definition..........................................................

“Systems that span functional areas, focusing on executing business processes across the firm”(Laudon and Laudon, Management Information Systems, p. 83)

“integrate a company’s core business processes. They are designed to automate the flow of information, materials, and financial resources within a company and across a supply chain or network.” (K Smolander, M Rossi, S Pekkola (2021).)

à Track items (business entities) throughout their life history with the business o The life history is Bath Uni’s business entities à Implement specified business rules à Produce management information about whole processes o E. activities that cross department boundaries

ORDER FULFILMENT PROCESS EXAMPLE

In this case, the business entity is the order, the roles are the functional departments (e. sales), and the activities are the items going across the boundaries between the departments.

à Only those which appear delayed are notified to the human operative (in an exception report) à Which operative do they go to? o The person with available time? o One person with who deals with all of the same type of delivery?

Different ERP Systems.....................................................................

 SAP: materials resource planning  Oracle: business databases  Sage: accounting  PeopleSoft: HRM Systems (now owned by Oracle)  Etc (many companies in this area)

They offer either:

à Comprehensive systems covering all functions à Selected modules covering particular functions

Implementation Options..................................................................

With basic process designs unchanged a. Means software drives changes to the organisation’s processes.
Adapted to match the business’s current processes: a. Misses opportunities for process improvement.
As part of a wider business process improvement project : a. Maximum opportunities for business benefit, but extra time/cost/resources b. Most risk – customising the software, and taking people away from normal software and day to day activities in order to participate in complete redesign of the software.

Data as a Cross-Organisational Resource..........................................

à Collects data from many divisions of firm for use in nearly all of firm’s internal business activities à Information entered in one process is immediately available for other processes à Prevents data being held in separate silos: o Data becomes a resource available across the business

Analysing the life cycle of a University Applicant (from POV of a University):

à Application à Offer Holder à Firm Offer Holder à Final Confirmation

If you have a conditional offer, and you make the grade, you could have the decision automated to accept it. What data is collected on individual applicants?

Sub-Types of Enterprise Systems......................................................

Supply Chain Management Systems:

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

How enterprise systems address this:

à Managing the sales process. This can be achieved through e-commerce sites, or in a B2B context by supporting sales representatives by recording the sales process (SFA). à Campaign management. Managing ad, direct mail, e-mail and other campaigns. à Analysis. Query customer data in order to optimize the marketing mix

Why Businesses Value Enterprise Systems:

à Provide firm-wide information to support decision making à Enable rapid responses to customer requests for information or products à Can support strategic aims: o Operational excellence o Customer intimacy à Include analytical tools to evaluate overall organizational performance

Social Network Enterprise Systems................................................

Social network enterprise systems are effectively internal social media e. Yammer, Moodle.

“rather than functioning as a channel through which communication travels, enterprise social media operate as a platform upon which social interaction occurs .” Leonardi, et al (2013)

Highly applicable in Knowledge Intensive organisations:

à Need to record the innovation process without obstructing free flow of communications. à Desire to encourage connections across organisational boundaries à Chris Archer-Brown, Using Enterprise Social Media for Collaboration (2014)

Objectives: similar to traditional enterprise systems:

à Link people across organisational boundaries – break down silos. à Flattening the organisational structure. à Improved tracking of business entities: o E. version control of documentation à Integration with wider enterprise systems o E. customer service and relationship systems

Objectives: differences from traditional enterprise systems:

à Development of communities of interest/practice à Improved marketing effectiveness o Especially if customers are part of the network à Levels of innovation: o Creates a low-barrier for involvement with idea generation schemes o Innovation doesn’t have defined inputs and outputs

Examples:

Brandle Presence Manager o Monitoring social media presence o Case of a company that needs a dynamic approach to collecting and responding to changes in the way social media view it. o Spreadsheets inadequate to the task.
Cases in Moore and Tall (2015) and Archer-Brown (2014) o Use of tools like Yammer to promote collaboration. o Sharing ideas and promoting discussions o Developing innovation
BASF case: o Suspicion of a type of system associated with leisure o “every user on the interactive platform can create and publish content. This can be a barrier at first for employees with a limited digital skill-set or those who are unsure about the type of content they should publish.” o Benefits of online collaboration needed to be emphasised to potential users. BASF now seen as a natural way to communicate

Benefits

o Perceived usefulness o Communities of practice develop

à IT strategy o Long-term role of IT in the organisation à IT Governance o How IT is or should be organised: in-house, outsourced etc. o C ulture and approach to IT implementation and use à IT operations o O rganisation’s ICT infrastructure (software, apps [T]) and organisational roles, processes [O.]

Business Process and their Re-Design............................................

Business Processes : Manner in which work is organized, coordinated, and focused to produce a valuable product or service

à Concrete work flows of material, information, and knowledge—sets of activities à Unique ways to coordinate work, information, and knowledge à Ways in which management chooses to coordinate work à Can be functional, cross-functional, internal, or external.

Traditional view of systems:

Business Models............................................................................

Business models describe, as a system, how the pieces of a business fit together. But they don’t factor in ... competition. ... that ... is strategy’s job. Strategy is about how you are going to do better by being different. (Magretta 2002).

Business models are like LEGO pieces – they show are how business fits together.

4 Business model parts (Eyring’s Model):

1. Customer value proposition (CVP) a. What is it that the organisation will deliver to their customers that is considered valuable. This could be an ethically sourced food item, an exclusive designer fashion product, or a discounted cheaper everyday item. b. Valuable enough for them to part from their hard-earned money in order to obtain it. 2. A profit formula (revenue, cost structure, margin model, resource velocity) a. How does the organisation plan to make money. The simple formula for profit is revenue less costs. b. What will be the revenue streams, the costs? How will this change over time. 3. Key processes a. What are the key processes that the organisation needs to have in place in order to deliver this value proposition. b. For example, sourcing of ingredients or materials from suppliers. Receiving an order from a customer. And so on. 4. Key resources a. What do you need in terms of materials, ingredients, skills, software, hardware etc.

The business model parts’ order of priority adjusts based on consumer preferences e. price.

à If basis of competition is price then o 1 2 3 4 à If basis of competition is differentiation then o 1 3 2 4

Needs to be sustainable over time, and at scale.

Technology Drivers of Infrastructure Evolution

à Moore’s law and micro-processing power o Computing power doubles every 2 years o Nanotechnology à Law of Mass Digital Storage o The amount of data being stored each year doubles à Metcalfe’s Law and network economics o Value or power of a network grows exponentially as a function of the number of network members. à Declining communication costs and the Internet o Exponential growth in size of the Internet à Standards and network effects o Technology standards  Specifications that establish the compatibility of products and the ability to communicate in a network  Unleash powerful economies of scale and result in price declines

Studying Information System’s Development and Use

Dimensions of Change in Focus:

à Role of the user and their involvement in design/implementation à Degree of customisation – custom-made vs. off-the shelf

Constant Focus:

System’s organisational/societal impact – change management, user resistance, adoption , diffusion, disruption etc.

Technology Acceptance Model

This is used to predict user acceptance of a new technology:

à Perceived usefulness and perceived ease of use are hypothesized to be fundamental determinants (predictors) of user acceptance, with usefulness as the stronger variable. à Attitude toward technology influences the intention to use which in turn affects actual usage à Variants of the model have evolved, TAM2, Unified Theory of User Acceptance and Use of Technology (UTAUT) , and TAM3, to introduce more factors, for example social influence, trust and risk

Innovation/ICT Capabilities Landscape............................................

Innovation Diffusion Theory/Technology Adoption Lifecycle:

Rogers’ Innovation Diffusion Theory posits that an innovation will go through being adopted in the first instance by innovators who are predisposed to try out the new, followed by early adopters who are also enthusiasts but more cautious than the innovators, an early majority follows as well as a late majority and finally the most risk-averse late-to-the-party laggards.

Example: e-commerce business models: bricks & mortar (online for information only), bricks & clicks (mix of online & offline transactions and customer services), clicks – online replaces.

E-Commerce Presence Map:

CRM Software Capabilities:

IMPACTS OF

INNOVATING WITH ICT

Venkatraman’s Levels of Business Transformation

à Distinguishes between: o Evolutionary levels (developing and improving the work) and o Revolutionary levels (entails the redesign from business processes to the entire essence and scope of the business – what it is and what it does).

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