Enterprise Resource Planning ERP

1
Enterprise Resource Planning (ERP)
Integrating the Organization from End to End

• Dr. Malloy
• MIS 200 Spring 2007
• March 29, 2007

2
Learning Objectives

• Describe the role information plays in enterprise
  resource planning systems
• Identify the primary forces driving the explosive
  growth of Enterprise Resource Planning (ERP)
  systems
• Explain the business value of integrating supply
  chain management, customer relationship
  management, and enterprise resource planning
  systems

3
Overview

• Enterprise Resource Planning (ERP) systems serve
  as the organization's backbone in providing
  fundamental decision-making support
• Today, we will discuss
• ERPs explosive growth
• Using ERP to connect corporations
• Integrating SCM, CRM, and ERP

4
Enterprise Resource Planning (ERP)

• At the heart of an ERP system is a database, when
  a user enters or updates information in one
  module, it is immediately and automatically
  updated throughout the entire system

5
Enterprise Resource Planning (ERP)

• ERP systems automate business processes

6
Enterprise Resource Planning (ERP)

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

7
ERP Growth

• There are an estimated 70,000 ERP installations
  worldwide with over 35 million users.
• 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

8
Top ERP vendors their major components
9
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

10
The Connected Corporation

• SCM and CRM market overviews

11
Integrating SCM, CRM, ERP

• 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 packaging together commonly used
  functionality, such as providing pre-built links
  to popular enterprise applications, which reduced
  the time necessary to develop solutions that
  integrate applications from multiple vendors

12
Integrating SCM, CRM, and ERP

• General audience purpose of SCM, CRM ERP

13
Integrating SCM, CRM, and ERP

• Data points where SCM, CRM, and ERP integrate

14
Gearing Up At REI Case Questions

• Explain how an ERP system can help REI gain
  business intelligence in its operations
• Assess the business benefit for REI in
  integrating its CRM, SCM, and ERP systems

15
Hilton Purchases New Suite

• Hilton deployed a new ERP that cost 4 million
• The ERP system has increased processing
  efficiency by a factor of six (6)
• The ERP system is saving the company between 4.5
  and 5 million annually

16
Hilton Case Questions

• Summarize why the merger of two separate
  corporations can cause significant issues for the
  integration of information
• Which component would you recommend if Hilton
  Hotels wanted to add an additional Oracle
  component? Evaluate the business benefit of this
  additional component
• Analyze why it is critical for an organization
  like Hilton Hotels to have an enterprisewide
  system
• Assess the benefits Hilton Hotels could receive
  from implementing an integrated SCM, CRM, and ERP
  solution

17
Dells Famous Supply Chain Case Qs

• Identify a few key metrics a Dell marketing
  executive might want to monitor on a digital
  dashboard
• Determine how Dell can benefit from using
  decision support systems and executive
  information systems in its business
• Describe how Dell has influenced visibility,
  consumer behavior, competition, and speed though
  the use of IT in its supply chain

18
Dells Famous Supply Chain Case Qs

• Explain the seven principles of SCM in reference
  to Dells business model
• Identify how Dell can use CRM to improve its
  business operations
• Explain how an ERP system could help Dell gain
  business intelligence

19
Revving Up Sales at Harley Davidson Case Qs

• Explain how Talon helps Harley-Davidson employees
  improve their decision-making capabilities
• Identify a few key metrics a Harley-Davidson
  marketing executive might want to monitor on a
  digital dashboard
• Determine how Harley-Davidson can benefit from
  using decision support systems and executive
  information systems in its business
• How would Harley-Davidsons 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

20
Revving Up Sales at Harley Davidson Case Qs

• Evaluate the HOG CRM strategy and recommend an
  additional benefit Harley-Davidson could provide
  to its HOG members to increase customer
  satisfaction
• How could Harley-Davidsons SCM system,
  Manugistics, improve its business operations?
• Provide a potential illustration of
  Harley-Davidsons SCM system including all
  upstream and downstream participants
• Explain how an ERP system could help
  Harley-Davidson gain business intelligence in its
  operations