SECTION 10.1

1. SECTION 10.1 ENTERPRISE RESOURCE PLANNING

2. 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

3. 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 • Diagram on next slide

4. CORE AND EXTENDED ERP COMPONENTS

5. 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

6. 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

7. 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

8. ERP Components

9. ERP Vendor Overview • SCM and CRM market overviews

10. The ERP train • The ERP can be one super software system, or it can be made up of many pieces, like a train has cars. CRM | SCM | Accounting | Production | HR | E-Business

11. Modular ERP Systems • 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 • The piece that hooks the railroad cars together

12. Common Functionality • Enterprise application integration (EAI) middleware – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors • All the cars in a train must have wheels that fit into the tracks.

13. The Engine • 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

14. Successful ERP Projects • Overall fit (Build Vs Buy Decision) • 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 • Tools that people do not know how to use can be as useless as having no tools at all

15. SECTION 10.2 COLLABORATION SYSTEMS

16. 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

17. Business Partnership Strategies • 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

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

19. 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

20. 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

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

22. 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”

23. 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

24. 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

25. 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

26. 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)

27. 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

28. 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

29. 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

30. COLLABORATION TRENDS • Instant messaging application

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