| Strategic Information Systems and Enterprise Resource Planning (ERP) |
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BIS B425
Strategic Information Systems and Enterprise Resource Planning (ERP)
| Introduction |  |
BIS B425 Strategic Information Systems and Enterprise Resource Planning (ERP) is a one-year, ten-credit, higher-level course and has been developed with Hong Kong learners in mind, especially through the use of local examples. The course developer is Hak-man Wan, Assistant Professor in the School of Business & Administration of the Open University of Hong Kong.
About the course
BIS B425 Strategic Information Systems and Enterprise Resource Planning (ERP) guides you systematically to an understanding of strategic information systems, especially in their applicability to the e-commerce environment. In the first few units of the course, ERP is introduced as an example of a strategic information system that is prevalent in the market. Later in the course, you will be guided in discussions on analytical and managerial skills that are required to direct, monitor, and assess ERP initiatives.
The course focuses on the management issues of ERP as a practical strategic information system, however, some technical issues will be discussed. Before taking this course, it is recommended that you study BIS B318 Information System Management, which provides the foundation knowledge about information systems, although BIS B318 is not a prerequisite of BIS B425.
| What this course helps you to do | |
Aims
BIS B425 Strategic Information Systems andEnterprise Resource Planning (ERP) aims to:
Introduce to you the strategic values of ERP in the era of e-commerce.
Introduce to you the basics of business process re-engineering (BPR).
Provide you with the technological background to appreciate the system structure of ERP.
Provide you with knowledge to appreciate the role of ERP in business functions such as manufacturing, sales, accounting, and finance management.
Develop in you the ability to manage and lead an ERP implementation project for small organizations.
Develop in you the capability to manage and appraise strategic information systems like ERP.
Course learning outcomes
Upon completion of this course, you should be able to:
Analyse the role played by information strategy and Internet technology in strategic information systems.
Discuss the critical factors that affect the success of an ERP initiative.
Illustrate the relationship between business process re-engineering and ERP.
Identify the skills involved in the management of an ERP development project and the implementation of an ERP system.
Illustrate the relationship between the technological architecture of an ERP system and other functional information systems.
Develop an implementation plan for an ERP system and explain the significance of each step in the plan.
Select appropriate methodologies and tools for the appraisal of an ERP project.
| Working through this course | |
This section provides you with basic administrative information to help you navigate your way through the course. Details include the materials needed, how the assignments and marking are arranged, and a table that sets out the elements of the course for your easy reference. Let's look at the course structure first.
Course overview
Unit
Title
Study time (weeks)
Assignment
(end of unit)1
Information strategy and business intelligence
3
2
Business process re-engineering
3
Assignment 1
3
Six Sigma
3
4
Material requirement planning and manufacture resource planning
3
Assignment 2
5
Supply chain management and logistics management
3
6
Using ERP in sales management
3
7
Using ERP in accounting and finance
3
Assignment 3
8
Development of ERP systems
3
9
ERP project management
3
10
ERP performance assessment
3
Revision
2
Total
32
Materials
In addition to this Course Guide, the course has several important components. Please ensure that you have all of the following materials.
Study units
Unit 1: Information strategy and business intelligence
This unit explains key concepts of the strategic use of information systems in business. It highlights the alignment of information strategy planning and business strategy and introduces the roles of strategic information systems (SIS) in twenty-first century business. The unit also explains business intelligence (BI) and knowledge management (KM) as recent developments in information systems. These subjects are crucial to an understanding of strategic information management and ERP.
Unit 2: Business process re-engineering
Unit 2 describes business process re-engineering (BPR) as a necessary project before a business corporation undertakes the development of any strategic information system, such as an ERP system. The unit first introduces the concept of business process and describes several tools and techniques that are common in BPR initiatives. It outlines how the 'as-is' process is converted to a 'to-be' process. The modern practice of BPR, which uses Web services extensively, is also discussed at the end of the unit.
Unit 3: Six Sigma
This unit introduces Six Sigma, a popular technique to deal with quality problems in business processes. Two approaches, namely DMAIC and DMADV, are described. The unit outlines all of the basic principles involved in the management of a Six Sigma project. It also describes Lean Six Sigma as a way to achieve process improvement in production.
Unit 4: Material requirement planning and manufacture resource planning
Unit 4 begins the formal introduction to ERP by first describing its evolution from material requirement planning (MRP) and manufacture resource planning (MRPII). The unit describes functions that support a production process and explains how MRP and MRPII deal with the problems encountered. Modern practices in manufacturing such as just-in-time (JIT) and Kanban are also introduced. They are compared with MRP and other practices in inventory management.
Unit 5: Supply chain management and logistics management
Unit 5 explains the integration of corporate business processes into a supply chain and the significance of supply chain management (SCM). The unit first describes basic principles and models in SCM and the importance of selecting key performance indicators. The theory of collaborative planning, forecasting, and replenishment (CPFR) and the technology of radio frequency identification (RFID) are introduced as they are developed for efficient SCM. The latter half of the unit is dedicated to the discussion of logistics management, one key portion of a successful supply chain. It explains common types of logistics business such as 3PL, 4PL, and reverse logistics. The unit ends with a description of logistics execution, in particular, warehouse management and transportation management.
Unit 6: Using ERP in sales management
This unit deals the application of ERP to sales-related processes. It introduces sales and operations planning (SOP), sales order processing, demand management, customer relationship management (CRM), and service management as sales-related processes. Even though today's CRM software application has engulfed all of the aforementioned business tasks, the unit explains each of these tasks independently. This is not meant to underplay the importance of integration among these tasks, but to focus on the special features of each task.
Unit 7: Using ERP in accounting and finance
Unit 7 describes the core position of accounting applications in ERP. It supports the use of principles of cost accounting and highlights some of the modules in an ERP system that deals with cost accounting and financial accounting problems in business. Moreover, the unit outlines the functionality of finance management in ERP and several approaches to generate management reports.
Unit 8: Development of ERP systems
This unit describes the life cycle of an ERP system and discusses management issues that are related to the development of an ERP solution. You learn the vendor selection process and the approaches to negotiating with vendors. This unit also introduces methods of design, implementation planning, and user training. The discussion is essential to the management of an ERP development project.
Unit 9: ERP project management
Unit 9 focuses on project management issues, in particular, when it involves a large project like building an ERP solution. It describes problems in resource management, project administration, and controls. The later half of the unit specifies the importance of risk management and the planning of change.
Unit 10: ERP performance assessment
The final unit discusses the implications of post-implementation assessment. It explains the principles of COBIT as a standard framework for information system control. The unit details the selection process for personnel in the assessment exercise and the identification of key performance indicators. It describes the actual monitoring process and outlines how an assessment exercise is documented.
Assignment File
There are four assignments for grading. An Assignment File is provided for this purpose. You can check for more information on assignments in the Course Guide section on assessment that follows and in the Assignment File itself.
Readings
You may be instructed in the study units to read articles or other supplementary materials. These will be available online or provided as hard copies at the backs of the study units.
E-Library E-Reserve readings
You may be instructed to read articles in the E-Library E-Reserve. To read these items, go to the OUHK E-Library and click on 'E-Reserve'. Log in, click 'Accept/Agree' on the Copyright Restrictions page, fill in the 'Course Code' box, and click 'Search'.
Set textbook
The required set textbook for BIS B425is Sumner, M (2014) Enterprise Resource Planning, International Edition, Pearson-Prentice Hall.
Non-print media
All of the study units as well as TMAs will be posted on the university's online platform (the Online Learning Environment or OLE).
Links to relevant websites that augment the material contained in the study units will be provided whenever such links are appropriate.
Presentation Schedule
The Presentation Schedule is available on the OLE. It gives the dates for completing TMAs, attending tutorials, and so on.
Equipment required by you
You will need a personal computer with appropriate software (browser) and a connection so that you can get access to the Internet. You will be asked to search for information on the Web occasionally and access the OLE.
| Assessment | |
Tutor-marked assignments
There are three TMAs in this course. You need to complete the unit(s) before working on the associated TMA. TMAs 1-3 account for 12%, 14% and 14% of the total course assessment respectively.
More specific instructions are confined to the Assignment File itself.
How to submit assignments
You must use word processing software (such as Microsoft Word) to prepare the TMAs, and submit the TMAs via the Online Learning Environment (OLE). All assignments must be uploaded to the OLE by the due date.
Failure to upload a TMA in the required format to the OLE may result in the score of the TMA being adjusted to zero.
TMA submission extension policy
The assignment policy of the University as stated in the Student Handbook should be observed. You are required to submit assignments for this course in accordance with the dates communicated by your Course Coordinator. You may apply for a submission extension on the grounds of illness, accident, disability, bereavement or other compassionate circumstances.
Applications for extension of up to seven days should be submitted to your tutor, who will consider valid and unexpected emergencies on an individual basis. Normally, documented proof of the extenuating circumstances is not required for extensions of up to seven days. Your tutor will decide and advise you of the revised date for submission.
For extensions of over seven days, you should note the following:
If you require an extension of more than seven days on the grounds of illness, accident, disability, bereavement or other compassionate circumstances, you are required to complete an 'Application Form for Assignment Extension over Seven Days' and submit it to your Course Coordinator.
Supporting documents must be submitted along with the application for extensions of over seven days to justify the claim.
Applications for extension should normally be lodged before or on the due date.
- Applications are considered by:
- the Course Coordinator for extensions of up to 21 days; and
- the Dean for extensions of over 21 days.
After an assignment is submitted via the OLE, it is your responsibility to check that the assignment has been successfully submitted. Extension applications due to any problem with uploading will not be accepted. The University cannot accept any responsibility for assignments that are not received by your tutor due to any problem with submission via the OLE. As a precaution, you are advised to keep a copy of each assignment you submit.
According to the University's policy, no extension of the due date will be allowed for the final TMA. This policy will be strictly enforced. Any late submission of the final TMA will result in the score of the TMA being adjusted to zero.
Final examination and grading
The final examination, which is three hours long, accounts for 60% of the total course assessment. The final examination covers material from all ten units and links back to the course and unit objectives. You must demonstrate that you can meet those objectives in the examination. To get a passing grade for the course, you must submit the tutor-marked assignments, and receive a passing grade on all three assignments and on your final examination.
Course marking scheme
Assessment
Marks
Assignments 1-3
12% + 14% + 14% = 40% of course marks
Final examination
60% of overall course marks
Total
100% of course marks
| How to get the most from this course | |
The best way to learn is to complete each study unit, and attempt the self-tests and activities in each unit. You can frequently access the Internet to expand your knowledge and receive up-to-date information on information systems management after you have completed the course or each unit. It is advisable to do this because the IS world is ever changing and the Internet is the place where you can find the most up-to-date information in this area.
Supplementary lectures, tutorials and surgeries
There are ten three-hour face-to-face sessions, each typically including a one-hour supplementary lecture immediately followed by a two-hour tutorial. They are organized for each of the ten study units respectively. The supplementary lectures are mass lectures conducted by one of the tutors (not necessarily yours) and aim to consolidate your understanding of the key concepts of the course. You are expected to read each of the study units in advance so that you can benefit most from the lecture. The notes for each lecture will be uploaded to the OLE for your reference.
During the tutorial time, you will meet your own tutor to discuss self-test questions and case studies in the course material to ensure your understanding of the concepts. This is also the time to ask questions and to clarify your understanding.
Before the end of the course, a two-hour face-to-face surgery will be conducted to better prepare you for the final examination. At the surgery, a tutor will be available to meet with any student who turns up with problems to discuss. Students are free to drop in at any time during the surgery and to leave after they have solved their problems.
Although not compulsory, it is strongly recommended that you attend these face-to-face sessions. They will provide considerable assistance in your studies, and help you make contact with other learners who are studying through the OUHK.
Tutors
You will be assigned a tutor for this course. Before the course commences, you will be informed by the OUHK Registry about your tutor's name, address and phone number. Your tutor will:
conduct the tutorials for your group;
assess your assignments; and
be available by phone at specified times for consultation. (You will be advised of these times separately.)
Your tutor will mark and comment on your assignments, keep watch on your progress and on any difficulties you might encounter and give you any help you need during the course. Your tutor is also your first point of contact with the OUHK. If you need any information or have any problems, please talk with him or her before you contact your Course Coordinator.
Tutors are required to start face-to-face sessions on time. If a tutor fails to turn up 30 minutes after the scheduled starting time, students may assume that the session is cancelled and they should report the case to the Course Coordinator so that a make-up session can be arranged.
Online Learning Environment
This course is supported by the Online Learning Environment (OLE). You can find course materials and the latest course information on the OLE. Through the OLE, you can also communicate with your tutors, the Course Coordinator as well as fellow students. For details about the OLE and how to access it, please refer to the Online Learning Environment User Guide.
| Use of case studies | |
Case studies are a useful and increasingly popular form of learning and assessment in the OUHK's School of Business and Administration. In this section we will look at why case studies are used and then suggest some learning strategies that you can use to approach case studies. We will also briefly discuss some problems that you may encounter as you learn from case studies.
What is a case study approach to learning?
One main purpose of a case study is to explore an issue or a number of issues in relation to an organization. The intention is to get you to carefully diagnose an organization; to focus on key problems, and to suggest how these might be resolved. Often the case is a real-life account of an organization which you are required to analyse in order to focus on a problem. Usually, the information that is provided is incomplete and you are often expected to observe developments in the organization over a period of time. The case study approach is an excellent opportunity to actively apply material that you have read and conceptual knowledge to the reality of an organization.
At the OUHK, case studies may be used as part of TMAs, exams, study units, or day-school exercises. You normally are given some information about a company (this could be both text and graphical information, such as figures and tables). You are then asked to think about some problems related to the company and to use concepts and apply theories that you have learned in your course to propose possible solutions for the company.
Let's have a look at two kinds of case study questions that you might be asked to work through in your courses. The first example is quite structured, while the second is much more open-ended.
Two examples of case study questions
Read the case study entitled 'ABC Consultants' and consider the following issues:
Using your understanding of the resource-based model, what measures could be taken to improve ABC's returns?
Drawing on your broad understanding of the consultancy industry, assess ABC's relative competitiveness and its profit potential.
To what extent do internal factors account for ABC's financial weaknesses?
Based on your assessment of ABC's financial weaknesses, formulate a new strategic intent and develop a mission statement for ABC.
Read the case study entitled 'XYZ Industries'.
Identify the key problems that are currently faced by XYZ's management.
- Propose viable solutions to these problems.
Why case studies?
As you can see from the above examples, a case study approach to learning requires a great deal of thinking and often will not easily yield a quick 'wrong' or 'right' answer. However, case studies are also good preparation for dealing with real-life business problems. Cases may be short and relatively simple, or longer and complex. The purpose is the same for both types: to give you an opportunity to develop your skills in analysing the strengths and weaknesses of the organization under examination, to consider the processes at work within the organization, and to make decisions about future actions.
Case studies are not meant to replace textbooks, but rather to ask you to draw connections between theories and practice and to apply abstract ideas, concepts, and principles to specific concrete situations. Consequently, case analysis develops a number of skills that are crucial in business. In particular, they help you to:
analyse complex, unstructured, sometimes ambiguous situations;
identify critical issues and problems;
question your own and others' assumptions;
improve your problem-solving skills;
develop your ability to find alternatives and make informed decisions;
make decisions with incomplete information and think strategically;
self-educate yourself and draw on a broad range of resources and knowledge; and
- present and justify recommendations in writing.
You may find that there are many possible 'right' answers to the questions in a case study. This illustrates that there is often no single best way to responsibly manage and solve real-life business problems.
Some guidelines for analysing case studies
The following strategies should help you to successfully analyse case studies:
1 Read the case and become familiar with the facts
First, skim read the case to obtain a general understanding of the main point(s). Highlight or underline the pertinent points as you read.
Read the case again, and this time note down critical facts (such as names, time sequences, and where events occurred). Try to understand how events have influenced decisions. Identify the important individuals or stakeholders, and try to assess the importance of supporting information in the case. How reliable is this supporting information? Are there any gaps in the information that is given?
Make a note of any questions that you have as you read the case.
2 Assess the context of the case
Try to understand the environment of the organization and the wider context of the case.
Ask yourself questions about:
The state of the organization: What is the state of this organization: good, bad or in-between? Usually this involves thinking about interpersonal relationships, and assessing production or financial problems.
Key players and systems: How do systems and people operate in this organization? Why do they operate like this? Are the systems undergoing change? How successful are the changes? Is there someone who could sabotage any future strategy? Is there someone who can ensure the success of a future strategy?
Significant trends: How does this industry operate? What are the main or unique characteristics of the industry? What were they five or ten years ago, and what are they likely to be in the future? What impact are trends likely to have on the organization under investigation? How does this organization's performance compare with that of competitors?
- Constraints: Clearly identify all constraints in the case. A constraint may be viewed as anything (usually beyond the control of the organization) that may prevent an otherwise feasible course of action from becoming a success. What is outside the control of individuals in the case study? For example, it is unlikely that any company or individual in Hong Kong could prevent a foreign government from imposing tariff barriers on imports.
A SWOT analysis is a good way to get a better understanding of the organization and the context or environment in which it is operating.A SWOT analysis considers the Strengths and Weaknesses of the organization, and the Opportunities and Threats which the organization faces in the external environment.
3 Recognize the case's symptoms
Read the case again and as you read, try listing all the symptoms of the case. The symptoms of a case are not the problems, but they may help you to identify the problems. Symptoms are all the things that are undesirable or that are not as expected. For example, falling sales could be a symptom of several problems such as poor market segmentation, poor product quality, or problems in a supply chain. At this stage of your analysis, you should just try to observe all the symptoms, and avoid prematurely identifying problems or suggesting solutions. Like a doctor who consults a patient, you first need to observe and note all the symptoms before you can give a definite diagnosis of the problem. Think about how the symptoms may be interrelated. Relationship diagrams, like the one below, may help you to see the relationships between symptoms.
4 Diagnose the case's problems
After you have a good sense of the symptoms, you're ready to determine key issues that need to be analysed more closely. You are now diagnosing the situation, like a doctor diagnosing a patient's symptoms. Ask yourself 'what seems to be the trouble in this organization?' and make a list of what you now perceive to be the key problem(s). You will probably need to go back to the details of the case and as you do this, you may add to or refine your list of potential problems.
If there are several problems, you need to order and prioritize them. You might want to number problems according to how you perceive their importance, or make a matrix, like the one below, which shows relationships between various criteria and each problem.
Criteria Problem #1 Problem #2 Problem #3 Importance: what will happen if the problem is not addressed? Urgency: how quickly must this problem be solved? Centrality: To what extent does this problem cause others? Solvability: Can this problem actually be solved? Also try to establish if there are relationships or themes in common among the various problems. Perhaps different problems in your list are actually variations of a broader central problem.
Ask yourself what assumptions you have made about the case. Are these assumptions reasonable, and are they supported by the facts? Would other people objectively suggest the same problems, based on the facts that you have? Are you suggesting problems that are not supported by the facts of the case?
After you have considered and put into order the possible problems and questioned your assumptions relating to these problems, you should write a statement of the problems as you perceive them. Avoid suggesting solutions at this stage.
Once you have a problem statement, you need to find evidence in the case to support your problem diagnosis. Also, try to identify ideas, concepts and theories from your textbook and course units which help to explain what is happening in the case.
5 Formulate criteria for a 'good' solution and identify possible constraints to solutions
Before you propose a solution, you need to consider the characteristics of a 'good' solution. Obviously, your solution should bring benefits such as improved productivity, reduced costs or greater profits. However, it also needs to be viable and to accommodate the constraints that you have already identified, i.e. Is the solution legal? Is there a budget for this solution? Does it conflict with the organization's culture?
Try to brainstorm alternative solutions. Aim to generate a broad and creative range of options and then try to rate each according to various criteria.
The following matrix demonstrates how this can be done.
Cost Ease of implementation Impact on organization culture Impact on profits Option 1 *** * * ** Option 2 * *** *** ** Option 3 ** * * *** Also refer to ideas, concepts and theories from your course materials as you consider and assess each possible solution.
It's often wise to propose a solution that allows for plausible alternatives if it should fail. Managers use the term satisfice when they are considering acceptable alternative solutions, that is, the solution is able to satisfy the situation while also making some realistic sacrifices to existing constraints. Therefore, it is a satisficing rather than a maximizing solution.
Finally, don't forget to consider the possibility of taking no action. What will actually happen if no action is taken? Are any (or all) of the solutions less viable than taking no action at all?
6 Recommend a viable solution
After you have assessed the merits and pitfalls of each alternative solution, select the best solution for the situation.
Remember that the solution needs to be viable. Can the recommended solution be introduced? Are there the resources and the willingness to implement it? Be realistic about what may work. Explain why it is the best solution within the constraints of the existing context and explain how it can be applied to the organization. Suggest a time-frame for the solution's implementation.
Outline possible strategies for implementing your solution, either partially or completely. As many feasible courses of action as possible should be considered before you choose the one that seems the most likely to succeed. The more ideas you have, the greater your chance will be of finding a solution that will work well. The complexity of most organizational problems means that it is highly unlikely that one idea alone will correct the situation. Usually a combination of actions is required, and these need to be funded differently, timed carefully and staffed as necessary.
7 Present your solution as a written recommendation
Review your final solutions and then prepare a set of written recommendations. These should clearly outline your proposed solution in relation to the problems that you have identified. Your recommendations should also include details of why these solutions are the most appropriate given the circumstances and constraints of the case. Finally, you need to clearly state how and when your proposals will be implemented.
Your tutor and your course Assignment File can provide some guidelines on how to present your recommendations.
Some mistakes to avoid as you analyse cases
When you first tackle case studies, you should be careful to guard against the following mistakes:
One of the most common mistakes made in case analysis is repeating or simply summarizing the facts of the case. Your tutor is already very familiar with the case details, so you do not have to restate them. You are required to use and analyse the facts, not repeat them. Your analysis should contain only enough case material to support your arguments. Therefore, be analytical!
You may often be tempted to just deal with symptoms and ignore the causes of the problem. It is very important to analyse the background of the case (and the climate in which the events of the case unfold).
Avoid discussing problems in isolation and do not overlook their interrelatedness. If you try to think in terms of 'systems' rather than in terms of individual problems, you are more likely to avoid this pitfall.
Students often fail to state the assumptions underlying their analysis. If any important assumptions have been made, have you questioned them and are they reasonable and appropriate? Avoid selectively using and interpreting case material in order to justify a preconceived solution.
Practical limitations and constraints may sometimes be overlooked. For example, a recommendation that a whole team be fired is probably unrealistic.
A very common mistake is poor integration of the facts in the case with the concepts, principles, and theories in the textbook. Such integration is vital. Ask yourself if relevant theories from your course have been fully and constructively applied.
- Finally, recommendations are too often not spelled out in detail or are unrealistic. A timetable for implementing them is also often not given.
Analysing cases poses many challenges, and this is one reason the case study method is so rewarding. It is a very active form of learning. It offers you a risk-free opportunity to gain managerial and organizational experience and should greatly increase your confidence to make informed decisions in the real world.
Good luck and we hope you enjoy working through the cases that you encounter!
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