Lecture Slides 11 17 08

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ITM 309

Enterprise Resource Planningand Collaboration

Dr. Frederick Rodammer Michigan State University

Eli Broad College of [email protected]

November 17, 2008

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Today’s Learning Objectives

• Review the four primary components found in extended enterprise resource planning systems

• Identify the different ways in which companies collaborate using technology

• Describe Alliances And Discuss Alliance Example

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What is meant by Collaboration ?

What are examples of how two or more companies Collaborate together ?

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What is meant by Outsourcing ?

Is Collaboration the same

as Outsourcing ?

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CORE AND EXTENDED ERP COMPONENTS

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ERP Database

• 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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THE CONNECTED CORPORATION

• General audience and purpose of SCM, CRM and ERP

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THE CONNECTED CORPORATION

Data points where SCM, CRM, and ERP integrate

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TEAMS, PARTNERSHIPS, AND ALLIANCES

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

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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

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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

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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

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An Industry Value-Chain With Focus on Alliances

Suppliers’ value chains

Organization’s value chain

Channelvalue chains

Customers’ value chains

We Need to Develop IT and Business Process Links to Partners

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Alliances

• Cross-Functional Inter-Enterprise System

• Uses IT to Help Support and Manage the Links Between Some of a Company’s Key Business Processes and its Suppliers, Customers, and Business Partners

• Goal is to Create a Fast, Efficient, and Low-Cost Network of Business Relationships: Minimize Joint Costs and Improve Service

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Example: Distributor Alliances

We cannot make significant strides in supply chain management without some re-definition of our Supplier/Distributor/ End Use Customer relationship.

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Alliances With Strategic Distributors• Critical Business Issue

– Minimize the Cost to Serve of the Joint Supplier/Distributor Value Chain While Maintaining/Improving Customer Service; Focus on Optimizing the Value Chain Costs and Working Capital for Mutual Benefit to Both Companies.

• Goals– Improve Service and Responsiveness

– Optimize Supply Chain Costs and Capital

• Working Capital

• Transportation Capital

• Freight

• Administrative

• Packaging

• Desired Outcomes• New, Improved Cross-Company Value Chain Process

• Roles/Responsibilities and Operating Discipline to Support New Process

• Process Measurements of Mutual Incentives to Support New Process

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ITM 309 Homework

• Assignment #5 due November 19-20

• Assignment #6 Insights During Lecture on Wednesday