3

We are moving from “Information Technology”

Integration

Drives Drives

IS solutions
Business Alignment Information Alignment People
Problems Problems Process
Technology

Enables Enables

Innovation
 4

Enabling Technologies: Hardware

Input – Process - Storage– Output

Web cam
 5

Enabling Technologies: software

Enterprise Software

ERP

Order Mgt.
Marketing
Sales
Production Mgt.
SCM CRM Application Specific/Functional General Purpose
HR
Software software
Accounting Supplier Mgt. Sales features
Marketing features Sales HR Mar- Fin- Acct- Word Spread-
Finance Procurement sheets
ket- ance ing Email
Warehouse Mgt. Logistics Customer service ing

Shared data in Shared data in Shared data in Sales HR Market. Finance Prod. Word Spread. Email.
Data Data data Data Data Data Data Data
database database database
Data
Middleware, Business continuity systems

Systems software – operating systems, security software, drivers and utility software, data management
and network management systems
Hardware
Adapted by Martin Dias from original by Richard Kesner, Bruce Russell
 Enabling Technologies: Data Warehouse
Functional Data Marts
Information
Systems Data Warehouse
Finance
Accounting
containing
historical data

Inventory Marketing
Control

Logistics
ETL Data Sales Analyze
Warehouse

Shipping
• Standardize
• Synchronize Accounting

• Centralize
CRM

Management
Reporting
 7

Enabling Technologies: Networking

Service
Router
 8

We are moving to “Information Systems”

Integration

Drives Drives

IS solutions
Business Alignment Information Alignment People
Problems Problems Process
Technology

Enables Enables

Innovation
 9

Functional vs. Enterprise Info. Systems

• Functional: • Enterprise:
• primary focus on transactional • primary focus on enterprise
processing management and control
• secondary focus on local • secondary focus on enterprise
management and control planning and learning
• chosen to meet the unique • devoted to integrated
input/output needs of a functional/departmental and
department/function/unit business unit data across the
• Localized data management enterprise (process view)
solutions sufficient • requires data to be standardized
across enterprise

Adapted by Martin Dias from original by Mike Zack, Bruce Russell, and Richard Kesner
 10

Why should I care about Enterprise

systems?
 12

Reason: Significant business investment

• 2021 Worldwide IT spending: $4.2 trillion (increase 8.6% from 2020)

• Growth estimates (2021 vs 2020):

• Data Center systems: 7.5%
• Enterprise software: 13.2%
• Computer devices: 13.9%
• IT services: 9.8%
• Communication services 3.5%

• Driving software spending?

• As firms recover from Covid19, they will have a backlog of IT projects and
less cash to use for them. As a result, CIOs will gravitate toward spending on
subscription products and cloud services to lower upfront costs.
• Enterprise software: growing availability of SaaS-based solutions is
encouraging new adoption and spending across many subcategories.
• IT services: Projects in digital business models, Internet of Things (IoT), and
progression from big data to algorithms to machine learning to artificial
intelligence (AI) will continue to be main drivers of growth
Source: Gartner July 2021
 13

Some enterprise system providers …

Source: Gartner Cloud ERP Magic Quadrant 2019

 14

(Some) leading cloud ERP providers

Increasing specialization in
ERP space ➔ multiple
“Magic Quadrants”
https://www.gartner.com/en/research/
magic-quadrant-research-
methodologies

Gartner Magic Quadrant for

Cloud ERP for Product-
Centric Enterprises
More info:
https://solutionsreview.com/enterprise-
resource-planning/whats-changed-
2020-gartner-magic-quadrant-for-
cloud-erp-for-product-centric-
enterprises/

Source: Gartner 2020 Magic Quadrant for Cloud ERP for Product-centric Enterprises
 15

Some enterprise system providers …

Source: Gartner 2021 Magic Quadrant for Cloud ERP for Product-centric Enterprises
 Adapted by Martin Dias from originals by Mike Zack 16

Reason: Information systems separation results in…

Checking
account Statements
application & reports

Customers Checking trx

Savings
Customer account Statements
transactions application & reports

Customers Savings trx

Installment
loan Statements
application & reports

Customers Loan trx

 17

What if business units all implemented their own

customized, isolated information systems?

Michael Porter’s Value Chain Model - *Image © Michael Porter

 18

When you don’t have enterprise-wide

systems you become… if you have separated, siloed
functional information systems.

• Misaligned (ambiguous and conflicting goals across

departments and suppliers/partners)

• Disconnected (slow, error-prone handoffs)

• Non-integrated (inefficient, ineffective information

sharing and decision-making)

Adapted by Martin Dias from original by Mike Zack, Bruce Russell, and Richard Kesner
 19

Enterprise Information Systems can enable…

• People to be more aligned

• Processes to be more seamless

• Technology to be more integrated

Adapted by Martin Dias from original by Mike Zack, Bruce Russell, and Richard Kesner
WGD
 20

What ifonly
What if our university we implemented
implemented Enterprise
functional IS?
 21

Types of IT architectures across the

enterprise …
• Legacy
Towards enterprise systems

• Silo/Stovepipe

• Enterprise Application Integration (EAI)

• Enterprise-wide Information Systems

(e.g., ERP)
#1 Legacy systems
Why do firms still have
legacy systems?
 24

#2 Stovepipe / Silo-based systems

How much does your firm rely on general purpose
software for “information sharing?”

Graphic Source:
maaw.info WGD
 25

#2 Stovepipe / Silo-based systems

Graphic Source:
maaw.info WGD
 26

#3 Enterprise Application Integration (EAI)

Goal: singular view of customers, products, and operations

EAI is a data
integration
solution that
uses
middleware
to connect
disparate
existing
systems
 27

#4 One enterprise “system,” many views

Function-specific
User interface,
business rules, and
reporting
(configurable)
 28

Enabling Technologies: software

Suppliers The Enterprise Customers

ERP

ERP/CRM/SCM
CRM

SCM
 30

Enterprise information systems

Business considerations: Costs
Total Cost of Ownership
• Hardware People and Process
transition costs included!
• Software How much did it cost you
to identify options and
• Database select a solution?
What about costs of
• Network overarching standardization
efforts (i.e., governance)?
 31

We are moving to “Information Systems”

Integration

Drives Drives

IS solutions
Business Alignment Information Alignment People
Problems Problems Process
Technology

Enables Enables

Innovation
 32

What’s a “process”?
1. A structured, measured set of activities designed to
produce a specific output for a particular organization,
customer, supplier or market. (Davenport)
2. Series of steps executed to transform inputs to outputs
3. Set of interrelated or interacting activities that use inputs to
deliver an intended result (International Standards
Organization)
4. A logically related set of activities that define how tasks are
performed (Laudon & Laudon 2011)
5. Unique ways work, information, and knowledge are
coordinated within organizations (Laudon & Laudon 2011)

1 2 3
What is a Process?
• Series of steps or tasks required to achieve a specific
goal.

FIGURE 11.1 Example of a Process to Acquire Materials

A process may
o extend across many organization boundaries
o involve a large number of individuals
o require many decisions and actions along the way

Bélanger, Van Slyke, Crossler © Prospect Press 2022 33

 Process
Modeling
o Mapping processes and sub-
processes
o Helps understand the various
processes that occur at different
levels in organizations and how they
interrelate

What do you notice about

this process?

FIGURE 11.3 Process Model of a Process to Acquire Materials

Bélanger, Van Slyke, Crossler © Prospect Press 2022
Example: Job Application
Groups:
a)Students
b)NU Career Services / Co-op Coordinators
c) Co-op Companies

Scenario:
1. What are the start and end points?
2. What are the initial inputs and final outputs?
3. Who/what are the resources?
4. What are the steps / activities/ tasks?
 36

Job application from student p.o.v.

 37

Job application from Advisor pov

 38

Job application from host co pov

 39

Best practices for documenting Processes /

Flowcharts
Go
Yes
to Catch train
Wake up School?

Home No
Make other plans

Legend
FOUR decisions you
should make…L.O.L.A. Process Flow
Activity

Storage Decision
1. Legend - Symbols of a Flow Chart
Shows an activity performed in the process

Shows a point in the process where a Yes/No

question is being asked or a decision is required

A Identifies a break in the flow chart and is continued

elsewhere on the same page or another page

Shows the flow of the process

Shows the beginning and end process

2. Business Process: Orientation

(C) 1998-2008 Sparx Systems Pty Ltd.

 3. Business Process: Level of Detail
Sales

Contract/Down Confirm No Order

Resources
Site Survey
Payment Equipment Equipment Manager

Inputs Sale Yes

Set up
Install Software Build Hardware
Schedule
If BAP
Revise &
customer file Install resubmit

Tech
Customer Back Office Final Customer On Site Data
Site Install Data Seeding
signoff sheet Configs Config Seed

Non-Standard
Config Data Center
Seeding

Sr Tech
Monitoring in Network Data
Billing Handoff
Ups Report Seed
Ops
Pain points (yes)
Sacred black boxes(no)
Computer
Resources
 43

Business Process: Level of Detail

• When a process/procedure has many different business
units involved, then using “swim lanes” can be helpful
4. Business Process: Assumptions
Some types of assumptions:
a)Type of process (e.g., exception process like a customer
complaint)

b)Type of customer (e.g., high value/premium service)

c) Type of product / service (e.g., retail vs wholesale)

d)Time period / time of day (e.g., before a big tech-enabled

implementation, or weekend vs weekday treatment)
 45

Group Exercise:
Develop an improved model of NU’s coop/ job application
process

1. What are the start and end points?

2. What are the initial inputs and final outputs?
3. Who/what are the resources?
4. What are the steps / activities/ tasks?
 46

Process-based view of the enterprise

Processes cut across the value chain
• Supplier relations
• Production and operations
• Product and service enhancement
• Sales and marketing support
• Customer relations

Processes involve ongoing “value-added” activities (i.e., ending in

outcomes for which the customer would be willing to pay)

But….

Across business units process ownership is challenging to assign

(e.g., who owns the “Respond to customer complaint” process?)

Across business units, consensus is challenging to obtain

(“Our customers don’t value that!” “Oh yes they do!”)
 47

Levels of Information Processing

Learning/Strategic Input Process Output

Innovate
Third order change?

Control/Tactical Input Process Output

Informate

Second order change

Transaction/Operational Input Process Output

Automate
From Chapter 11 reading First order change
Levels of change Adapted by Martin Dias from Original by Mike Zack
Process improvement
Business considerations: R.I.D.
Getting “RID” of processes
• Relegate

• Improve / Innovate

• Delegate
 Principles of Process Reengineering:
1.Organize around outcomes, not tasks.
2.Have those who use the output of the process perform
the process.
3.Subsume information-processing work into the real work
that produces the information.
4.Treat geographically dispersed resources as though they
were centralized.
5.Link parallel activities instead of integrating their results.
6.Put decision points where the work is performed and build
controls into the process.
7.Capture information once and at the source.

In what ways is BPR more feasible now than in 1993?

49
Enabling Technologies: Workflow Automation
• Event management (triggers in, audits, alerts out,
MIS reporting)
• Document management (creation,
personalization, handoffs)
• Rules management (work item prioritization,
configuration)
• People management (work assignment, MIS
reporting on performance)
• Customer relationship management
(customer service notes, audit trail)
Enabling Technologies: Workflow Automation
 52

Enabling Technologies: RPA

53
 54

Critical thinking!

Compare and contrast:

In what ways are BPR and RPA similar?

In what ways are BPR and RPA different?
PwC Case study debrief
Legacy
Systems
56
 57

4. Describe the two additional features of an HCM system that

could better position the client firm to face the challenges and
maximize on the opportunities referenced at the end of the case?

Trends toward:

…more freelance/contract-based talent acquisition,

…more flexible work arrangements, and

…increasing workforce diversity

How would you apply Robotic Process Automation

to further enhance HCM systems net benefits?
 58

Takeaways
1. What are the four IT architectures and the business
scenarios that could produce each IT architecture?

2. How do enterprise information systems help align

employees, design and execute seamless processes?

3. What are the considerations in creating a process

diagram?