Chapter12 Student PPT

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved

Chapter 12Chapter 12

Integrating the Organization Integrating the Organization from End to End – Enterprise from End to End – Enterprise

Resource PlanningResource 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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Bringing the Organization Together

ERP – The organization before ERP

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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’s Explosive Growth

• 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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CHAPTER TWELEVE CASEGearing Up at REI

• Recreational Equipment Inc. (REI) annual revenues between $500 million and $1 billion and more than 10,000 employees

• REI is an industry leader for its “best practice” multichannel CRM strategy, which allows customers to seamlessly purchase products at the company’s 70 retail stores as well as by telephone, through mail order, and on the Internet

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Chapter Twelve Case Questions

1. What business impact could REI gain by using a digital dashboard from its ERP system?

2. How can REI benefit from using artificial intelligence to support its business operations?

3. How does REI’s ERP system help employees improve their decision making capabilities and highlight potential business opportunities?

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Chapter Twelve Case Questions

4. How could an SCM system improve REI’s business operations?

5. Provide an illustration of REI’s SCM system including all upstream and downstream participants.

6. Determine two pieces of customer information that REI could extrapolate from its CRM system that would help it manage its business more effectively.

7. How can an ERP system help REI gain business intelligence in its operations?

8. What is the business benefit for REI in integrating its CRM, SCM, and ERP systems?

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved

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 Davidson5. 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