Chap 012

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CHAPTER 12

Integrating the Organization from End to End—Enterprise

Resource Planning

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LEARNING OUTCOMES

12.1 Describe the role information plays in enterprise resource planning systems

12.2 Identify the primary forces driving the explosive growth of enterprise resource planning systems

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

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ENTERPRISE RESOURCE PLANNING (ERP)

• 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

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ENTERPRISE RESOURCE PLANNING (ERP)

• ERP systems automate business processes

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• ERP – bringing the organization together

BRINGING THE ORGANIZATION TOGETHER

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BRINGING THE ORGANIZATION TOGETHER

• ERP – bringing the organization together

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THE EVOLUTION OF ERP

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INTEGRATING SCM, CRM, AND ERP

• 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

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INTEGRATING SCM, CRM, AND ERP

• SCM and CRM market overviews

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INTEGRATING SCM, CRM, AND ERP

• General audience and purpose of SCM, CRM and ERP

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INTEGRATION TOOLS

• 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

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INTEGRATION TOOLS

• Data points where SCM, CRM, and ERP integrate

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ENTERPRISE RESOURCE PLANNING (ERP)

• ERP systems must integrate various organization processes and be:– Flexible– Modular and open– Comprehensive– Beyond the company

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ENTERPRISE RESOURCE PLANNING’S EXPLOSIVE GROWTH

• 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

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OPENING CASE STUDY QUESTIONSSecond Life

1. If you operated a business entirely on Second Life would you require an ERP system? Why or why not?

2. How would an ERP system be used in Second Life to support a global organization?

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CLOSING CASE THREE Shell Canada Fuels Productivity with ERP

1. How did ERP help improve business operations at Shell?

2. How important was training in helping roll out the system to Shell personnel?

3. How could extended ERP components help improve business operations at Shell?

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CLOSING CASE THREE Shell Canada Fuels Productivity with ERP

4. What advice would you give Shell if it decided to choose a different ERP software solution?

5. How can integrating SCM, CRM, and ERP help improve business operations at Shell?

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BUSINESS DRIVEN TECHNOLOGY

UNIT THREE CLOSING

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UNIT CLOSING CASE ONE Dell’s Famous Supply Chain

1. Identify a few key metrics a Dell marketing executive might want to monitor on a digital dashboard

2. Determine how Dell can benefit from using decision support systems and executive information systems in its business

3. Describe how Dell has influenced visibility, consumer behavior, competition, and speed though the use of IT in its supply chain

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UNIT CLOSING CASE ONE Dell’s Famous Supply Chain

4. Explain the seven principles of SCM in reference to Dell’s business model

5. Identify how Dell can use CRM to improve its business operations

6. Explain how an ERP system could help Dell gain business intelligence

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UNIT CLOSING CASE TWORevving Up Sales at Harley Davidson

1. Explain how Talon helps Harley-Davidson employees improve their decision-making capabilities

2. Identify a few key metrics a Harley-Davidson marketing executive might want to monitor on a digital dashboard

3. Determine how Harley-Davidson can benefit from using decision support systems and executive information systems in its business

4. How would Harley-Davidson’s business be affected if it decided to sell accessories directly to its online customers? Include a brief discussion of the ethics involved with this decision

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UNIT CLOSING CASE TWORevving Up Sales at Harley Davidson

5. Evaluate the HOG CRM strategy and recommend an additional benefit Harley-Davidson could provide to its HOG members to increase customer satisfaction

6. How could Harley-Davidson’s SCM system, Manugistics, improve its business operations?

7. Provide a potential illustration of Harley-Davidson’s SCM system including all upstream and downstream participants

8. Explain how an ERP system could help Harley-Davidson gain business intelligence in its operations