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CHAPTER 10

CHAPTER 10. ENTERPRISE RESOURCE PLANNING AND COLLABORATION SYSTEMS. CHAPTER TEN OVERVIEW. SECTION 10.1 - ENTERPRISE RESOURCE PLANNING Enterprise Resource Planning Core and Extended ERP Components Core ERP Components Extended ERP Components ERP Vendor Overview ERP Benefits and Risks (Cost)

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CHAPTER 10

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  1. CHAPTER 10 ENTERPRISE RESOURCE PLANNING AND COLLABORATION SYSTEMS

  2. CHAPTER TEN OVERVIEW • SECTION 10.1 - ENTERPRISE RESOURCE PLANNING • Enterprise Resource Planning • Core and Extended ERP Components • Core ERP Components • Extended ERP Components • ERP Vendor Overview • ERP Benefits and Risks (Cost) • The Connected Corporation – Integrating SCM, CRM, and ERP • The Future of ERP

  3. CHAPTER TEN OVERVIEW • SECTION 10.2 – COLLABORATION SYSTEMS • Teams, Partnerships, and Alliances • Collaboration Systems • Knowledge Management • Knowledge Management Systems • Content Management Systems • Workflow Management Systems • Groupware Systems • Collaboration Trends

  4. SECTION 10.1 ENTERPRISE RESOURCE PLANNING

  5. LEARNING OUTCOMES • Compare core enterprise resource planning components and extended enterprise resource planning components • Describe the three primary components found in core enterprise resource planning • Describe the four primary components found in extended enterprise resource planning systems • Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems

  6. 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

  7. ENTERPRISE RESOURCE PLANNING

  8. 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

  9. CORE AND EXTENDED ERP COMPONENTS

  10. CORE ERP COMPONENTS • Three most common core ERP components • Accounting and finance • Production and materials management • Human resource

  11. 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

  12. 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

  13. 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

  14. EXTENDED ERP COMPONENTS • Extended ERP components include: • Business intelligence • Customer relationship management • Supply chain management • E-business

  15. 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

  16. 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

  17. ERP VENDOR OVERVIEW

  18. ERP Vendor Overview • SCM and CRM market overviews

  19. ERP SOFTWARE • Successful ERP projects share 3 attributes • Overall fit • Off the rack • Off the rack and tailored to fit • Custom made • Proper business analysis • Successful companies spend up to 10 percent of the project budget on a business analysis • Solid implementation plans • A plan is needed to monitor the quality, objectives, and timelines

  20. ERP BENEFITS AND RISKS • Common ERP benefits • Integrate financial information • Integrate customer order information • Standardize and speed up manufacturing processes • Reduce inventory • Standardize human resource information

  21. ERP BENEFITS AND RISKS

  22. 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

  23. 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

  24. THE CONNECTED CORPORATION • General audience and purpose of SCM, CRM and ERP

  25. THE CONNECTED CORPORATION • Data points where SCM, CRM, and ERP integrate

  26. 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

  27. THE CONNECTED CORPORATION • ERP systems automate business processes

  28. 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

  29. OPENING CASE QUESTIONSCampus ERP • How could core ERP components help improve business operations at your college? • How could extended ERP components help improve business operations at your college? • How can integrating SCM, CRM, and ERP help improve business operations at your college? • Review the different components in Figure 10.14. Which component would you recommend your college implement if it decided to purchase an ERP component?

  30. SECTION 10.2 COLLABORATION SYSTEMS

  31. LEARNING OUTCOMES • Identify the different ways in which companies collaborate using technology • Compare the different categories of collaboration technologies • Define the fundamental concepts of a knowledge management system

  32. LEARNING OUTCOMES • Provide an examples of a content management system along with its business purpose • Evaluate the advantages of using a workflow management system • Explain how groupware can benefit a business

  33. 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

  34. TEAMS, PARTNERSHIPS, AND ALLIANCES • Collaboration system – supports the work of teams by facilitating the sharing and flow of information

  35. 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

  36. 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

  37. 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 supports the work of teams by facilitating the sharing and flow of information

  38. COLLABORATION SYSTEMS • Two categories of collaboration • Unstructured collaboration (information collaboration) - includes document exchange, shared whiteboards, discussion forums, and e-mail • Structured collaboration (process collaboration) - involves shared participation in business processes such as workflow in which knowledge is hardcoded as rules

  39. COLLABORATION SYSTEMS • Collaborative business functions

  40. COLLABORATION SYSTEMS • Collaboration systems include: • Knowledge management systems • Content management systems • Workflow management systems • Groupware systems

  41. 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”

  42. Explicit and Tacit Knowledge • Intellectual and knowledge-based assets fall into two categories • Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the help of IT • Tacit knowledge - knowledge contained in people’s heads

  43. 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

  44. Explicit and Tacit Knowledge • Reasons why organizations launch knowledge management programs

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

  46. 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

  47. 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)

  48. CONTENT MANAGEMENT SYSTEMS • Content management system vendor overview

  49. 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

  50. 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

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