MIS_Week 7 -

Introduction to Business Intelligence with ERP

• Focus: Week 7 Part A

• Institution: University of Surrey

Supply Chain Management

• Definition: A network of organizations and processes involved in procuring materials, transforming them into products, and distributing those products.

  • Upstream Supply Chain: Comprises the firm's suppliers, suppliers' suppliers, and the processes for managing relationships with them.

  • Downstream Supply Chain: Includes all organizations and processes responsible for delivering products to customers.

SCM Systems

• Supply Chain Planning Systems:

  • Enable demand planning.

  • Optimize sourcing and manufacturing plans.

  • Establish inventory levels.

  • Identify transportation modes.

• Supply Chain Execution Systems:

  • Manage flow of products through distribution centers and warehouses.

Trends and Issues in SCM

• Just-in-Time and Lean Production:

  • Aim to eliminate excess inventory.

• Strategic Partnerships: Focus on creating stable, tight inter-organizational ties.

• Adaptive Supply Chains: Adjust to market changes flexibly.

• Transparent Supply Chains: Emphasize the visibility of processes and information flow.

Push vs Pull-Based Supply Chain Models

• Push-Based Model: Driven by forecasts or best guesses of consumer demand.

• Pull-Based Model: Driven by actual customer orders, responding to immediate demand.

Business Process Management (BPM)

• Definition: A disciplined approach to identify, design, execute, document, measure, monitor and control both automated and non-automated business processes to achieve targeted results aligned with organizational goals.

Importance of BPM

• The manner in which business operations are conducted is critical to success—affects competitive advantage and process efficiency.

• Business processes should be treated as organizational assets.

Paper-Based Processes and Delays

• Challenge: Inefficiencies in paper-based processes lead to significant delays and lack visibility across operations.

  • Increased lead times and cycle times.

  • Excess inventory issues.

Accepting Delays: Why Not?

• Reasons Against Accepting Delays:

  • Globalization and increased competition create pressure for efficiency.

  • Reliance on technology makes delays costly.

Information Revolution

• ** ICT Growth**: Enhanced information creation and sharing in global enterprises.

  • Involves data, documents, voice, and video.

  • Monitoring capabilities for design, forecasts, and material availability.

Enterprise Systems (ES)

• Purpose: Facilitate the management of processes that are geographically dispersed.

• Benefits: Include increased profitability, productivity, and competitive edges.

Improving Management Decision Making with ES

• Features: Provide real-time data on sales, inventory, production forecasts, and standard definitions.

• Implementation Requirements: Organizations must map their processes to the software processes for successful integration.

Problems with Non-ERP Systems

• Issues include lack of connectivity, separate information systems, and high long-term maintenance costs.

ERP Implementation

• Scope: Considered the largest IT project, affecting all organizational departments.

• Key Players: Understanding the project scope is critical for success.

Benefits of ERP Systems

• Internal Benefits:

  • Single source of data, enhanced productivity, reduced costs, better communication.

• External Benefits:

  • Improved customer service, communication, competitive position, sales, and profits.

Major Challenges in ERP Implementation

• Technical limitations, mismatch with existing processes, high costs, organizational impacts, change resistance.

Costs of ERP

• Influenced by factors like software size, hardware requirements, customization needs, consultants' fees, training, and implementation time.

ERP Vendors

• Major Vendors:

  • SAP: Focus on customer and financial management.

  • Oracle/PeopleSoft: Specializes in financial and human resource management.

  • Microsoft (Great Plains): Targets small to medium-sized businesses.

Data Management and Business Intelligence (BI)

• Transformation: BI as a "data refinery" that creates value from data through analysis.

• BI Importance: Supports fact-based decision-making.

BI Functionality and Benefits

• Centralizes data, integrates various systems, enriches data with context for informed decision-making, and enhances communication.

BI Reporting and Analysis Users

• User Types: Authors, analysts, business managers, and executives—all utilize BI tools for data analysis and reporting.

Future of BI

• Evolution from historical reporting towards real-time analytics and predicting trends based on current data.

Conclusion

• The integration of ERP with BI is critical for modern businesses looking to enhance efficiency, improve decision-making, and maintain competitive advantage.