ENTERPRISE RESOURCE PLANNING(ERP) SYSTEM. LEARNING OUTCOMES 1.Compare core enterprise resource planning components and extended enterprise resource planning.

ENTERPRISE RESOURCE PLANNING(ERP) SYSTEM

LEARNING OUTCOMES

1. Compare core enterprise resource planning components and extended enterprise resource planning components

2. Describe the three primary components found in core enterprise resource planning

3. Describe the four primary components found in extended enterprise resource planning systems

4. Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems

ENTERPRISE RESOURCE PLANNING

• Enterprise resource planning – integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operations

ENTERPRISE RESOURCE PLANNING

CORE AND EXTENDED ERP COMPONENTS

• Core ERP component – traditional components included in most ERP systems and they primarily focus on internal operations

• Extended ERP component – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations

CORE AND EXTENDED ERP COMPONENTS

CORE ERP COMPONENTS

• Three most common core ERP components

1. Accounting and finance

2. Production and materials management

3. Human resource

Accounting and Finance ERP Components

• Accounting and finance ERP component – manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management

Production and Materials Management ERP Components

• Production and materials management ERP component – handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control

Human Resource ERP Component

• Human resource ERP component – tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities

EXTENDED ERP COMPONENTS

• Extended ERP components include:– Business intelligence– Customer relationship management– Supply chain management– E-business

E-Business Components

• E-business components include e-logistics and e-procurement – E-logistics – manages the transportation and

storage of goods– E-procurement – the business-to-business

(B2B) purchase and sale of supplies and services over the Internet

ERP VENDOR OVERVIEW

• SAP boasts 20,000 installations and 10 million users worldwide

• ERP solutions are growing because:– ERP is a logical solution to the mess of incompatible

applications that had sprung up in most businesses– ERP addresses the need for global information

sharing and reporting– ERP is used to avoid the pain and expense of fixing

legacy systems

ERP VENDOR OVERVIEW

ERP Vendor Overview

• SCM and CRM market overviews

ERP SOFTWARE

• Successful ERP projects share 3 attributes1. Overall fit

• Off the rack• Off the rack and tailored to fit• Custom made

2. Proper business analysis• Successful companies spend up to 10 percent of the

project budget on a business analysis

3. Solid implementation plans• A plan is needed to monitor the quality, objectives,

and timelines

ERP BENEFITS AND RISKS

• Common ERP benefits1. Integrate financial information

2. Integrate customer order information

3. Standardize and speed up manufacturing processes

4. Reduce inventory

5. Standardize human resource information

ERP BENEFITS AND RISKS

THE CONNECTED CORPORATION

• SCM, CRM, and ERP are the backbone of e-business

• Integration of these applications is the key to success for many companies

• Integration allows the unlocking of information to make it available to any user, anywhere, anytime

THE CONNECTED CORPORATION

• Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together– Middleware – several different types of software

which sit in the middle of and provide connectivity between two or more software applications

– Enterprise application integration (EAI) middleware – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors

THE CONNECTED CORPORATION

• General audience and purpose of SCM, CRM and ERP

THE CONNECTED CORPORATION

• Data points where SCM, CRM, and ERP integrate

THE CONNECTED CORPORATION

• At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system

THE CONNECTED CORPORATION

• ERP systems automate business processes

THE FUTURE OF ERP

• Lines between SCM, CRM, and ERP will continue to blur– Internet – continue to help organizations

integrate data and process across functional departments

– Interface – customizable employee browsers – Wireless technology – support a mobile

workforce

OPENING CASE QUESTIONSCampus ERP

1. How could core ERP components help improve business operations at your college?

2. How could extended ERP components help improve business operations at your college?

3. How can integrating SCM, CRM, and ERP help improve business operations at your college?

4. Which component would you recommend your college implement if it decided to purchase an ERP component?

COLLABORATION SYSTEMSWITH ERP

LEARNING OUTCOMES

5. Identify the different ways in which companies collaborate using technology

6. Compare the different categories of collaboration technologies

7. Define the fundamental concepts of a knowledge management system

LEARNING OUTCOMES

8. Provide an examples of a content management system along with its business purpose

9. Evaluate the advantages of using a workflow management system

10. Explain how groupware can benefit a business

OPENING CASE QUESTIONS

• How can a team of college students use a workflow management system to complete a group project?

• If your college wanted to implement a groupware system, what would be its primary purpose?

TEAMS, PARTNERSHIPS, AND ALLIANCES

• Organizations create and use teams, partnerships, and alliances to:– Undertake new initiatives– Address both minor and major problems– Capitalize on significant opportunities

• Organizations create teams, partnerships, and alliances both internally with employees and externally with other organizations

TEAMS, PARTNERSHIPS, AND ALLIANCES

• Collaboration system – supports the work of teams by facilitating the sharing and flow of information

TEAMS, PARTNERSHIPS, AND ALLIANCES

• Organizations form alliances and partnerships with other organizations based on their core competency– Core competency – an organization’s key

strength, a business function that it does better than any of its competitors

– Core competency strategy – organization chooses to focus specifically on its core competency and forms partnerships with other organizations to handle nonstrategic business processes

TEAMS, PARTNERSHIPS, AND ALLIANCES

• Information technology can make a business partnership easier to establish and manage– Information partnership – occurs when two or more

organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer

• The Internet has dramatically increased the ease and availability for IT-enabled organizational alliances and partnerships

COLLABORATION SYSTEMS

• Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management

• Collaboration system – an IT-based set of tools that supportsthe work of teams by facilitating the sharing and flow of information

COLLABORATION SYSTEMS

• Two categories of collaboration1. Unstructured collaboration (information

collaboration) - includes document exchange, shared whiteboards, discussion forums, and e-mail

2. Structured collaboration (process collaboration) - involves shared participation in business processes such as workflow in which knowledge is hardcoded as rules

COLLABORATION SYSTEMS

• Collaborative business functions

COLLABORATION SYSTEMS

• Collaboration systems include:– Knowledge management systems– Content management systems– Workflow management systems– Groupware systems

KNOWLEDGE MANAGEMENT

• Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions

• Knowledge management system (KMS) – supports the capturing and use of an organization’s “know-how”

Explicit and Tacit Knowledge

• Intellectual and knowledge-based assets fall into two categories

1. Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the help of IT

2. Tacit knowledge - knowledge contained in people’s heads

Explicit and Tacit Knowledge

• The following are two best practices for transferring or recreating tacit knowledge– Shadowing – less experienced staff

observe more experienced staff to learn how their more experienced counterparts approach their work

– Joint problem solving – a novice and expert work together on a project

Explicit and Tacit Knowledge

• Reasons why organizations launch knowledge management programs

KM Technologies

• Knowledge management systems include:– Knowledge repositories (databases)– Expertise tools– E-learning applications– Discussion and chat technologies– Search and data mining tools

KM and Social Networking

• Finding out how information flows through an organization– Social networking analysis (SNA) – a

process of mapping a group’s contacts (whether personal or professional) to identify who knows whom and who works with whom

– SNA provides a clear picture of how employees and divisions work together and can help identify key experts

CONTENT MANAGEMENT SYSTEMS

• Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment

• CMS marketplace includes:– Document management system (DMS)– Digital asset management system (DAM)– Web content management system (WCM)

CONTENT MANAGEMENT SYSTEMS

• Content management system vendor overview

WORKFLOW MANAGEMENT SYSTEMS

• Work activities can be performed in series or in parallel that involves people and automated computer systems

• Workflow – defines all the steps or business rules, from beginning to end, required for a business process

• Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process

WORKFLOW MANAGEMENT SYSTEMS

• Messaging-based workflow system – sends work assignments through an e-mail system

• Database-based workflow system – stores documents in a central location and automatically asks the team members to access the document when it is their turn to edit the document

GROUPWARE SYSTEMS

• Groupware technologies

GROUPWARE SYSTEMS

• Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing

COLLABORATION TRENDS

• E-mail is the dominant form of collaboration application, but real-time collaboration tools like instant messaging are creating a new communication dynamic

• Instant messaging - type of communications service that enables someone to create a kind of private chat room with another individual to communicate in real-time over the Internet

COLLABORATION TRENDS

• Instant messaging application

CLOSING CASE ONEDreamWorks

• How can knowledge management be increased by using a product such as Halo?

• Why would a company like DreamWorks, that is not IT focused, be interested in collaboration technology?

• What are a few of the security issues surrounding this type of technology?