Enterprise Resource Planning

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Enterprise Resource Planning

• ISM3011

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What Were Going to do Today

• Announcements
• QA
• Alphabet soup
• MIS in the professions
• Enterprise Resource Planning (Enterprise Systems)

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Alphabet Soup

• BPR
• Business process redesign (reengineering)
• Management practice of examining an organizations
  processes with the goal of improving the
  efficiency and/or effectiveness of its processes.
• Process is a recipe for achieving some
  organizational outcome. Each process has inputs,
  methods and outcomes.
• VoIP
• Voice over IP (Internet Protocol)
• Telephone service that uses the Internet (or
  other IP network) as a global telephone network.
• Examples Vonage, Earthlink Truevoice

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MIS in the Professions - Marketing

• Time-Warner Cable Business Class Raleigh, faced
  the problem of information overload.
• They had tons of marketing-related information,
  but no good way to dig out the really important
  info, which is necessary for managing in a
  dynamic environment.
• Implemented Salesforces CRM system
• Dashboards provide overview of key data
• Alerts and drill-down functions bring important
  data to the forefront and allow digging in for
  greater insights.
• 1st year productivity gains of 10, expect 20 by
  2nd
• Saved significant time on standard activities

Source http//www.salesforce.com/customers/casest
udy.jsp?customertimewarnercable
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ERP Systems
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ERP

• Who are the big ERP vendors?
• SAP
• Systeme, Anwendungen, Produkte in der
  Datenverarbeitung, or
• Systems, Analysis and Products in Data
  Processing.
• Dont be a sap!
• Oracle/PeopleSoft/J. D. Edwards (J.D. Orisoft)
• Microsoft Great Plains, aimed at smaller
  companies
• SAP Business One is competing product

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ERP Video
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SAP R/3

• Enables a company to link its business processes
• Ties together disparate business functions
  (integrated business solution)
• Helps the organization run smoothly
• Real-time environment
• Scalable and flexible

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Architecture

• Central relational database (e.g., Oracle,
  Informix, Microsoft SQL and many others)
• Client/Server three-tiered
• ERP Component Oriented towards common
  identifiable business modules
• Add-ons
• Customer Relationship Mgmt (CRM)
• Supply Chain Mgmt (SCM)
• Product Lifecycle Mgmt (PLM)

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Relational Database

• Tables Defines and links thousands of tables of
  information (25,000)
• Advantages
• Consistent and accurate data
• Common definitions for terms
• Shared, but restricted usage (e.g., profiles)
• Eliminates data redundancy

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Client/Server Environment

• Client
• Software/hardware combination that can make a
  request for services from a central repository of
  resources
• Server
• Software/hardware combination that can provide
  services to a group of clients in a controlled
  environment

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Three-Tier SAP Structure

• GUI Graphical User Interface or Web
  Interface
• Application server (one or many)
• Database server (one single location)

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SAP Enterprise System
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Integration
Procurement Process (Procure-to-Pay)
Purchase Requisition
Purchase Order
Notify Vendor
Payment to Vendor
Vendor Shipment
Invoice Receipt
Goods Receipt
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Integration
Sales Order Process(Order-to-Cash)
Check Availability
Sales Order Entry
Pick Materials
Receipt of Customer Payment
Pack Materials
Invoice Customer
Post Goods Issue
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Human Resource Process
Recruitment
Hiring
Benefits
Cost Planning Reporting
Training
Travel
Employee Development
Time Reporting Shift Planning
Payroll
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INTEGRATING SCM, CRM, AND ERP

• General audience and purpose of SCM, CRM and ERP

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INTEGRATING SCM, CRM, AND ERP

• Data points where SCM, CRM, and ERP integrate

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ERP Implementation is Difficult

• Many stories of failed ERP implementation
• Hershey Company Problems with ERP implementation
  caused distribution disruption.
• HP Backlogs and lost revenue following an ERP
  implementation cost 160 million.
• Whirpool Nike had similar problems.
• UCF Peoplesoft problems caused a disruption in
  financial aid distribution.
• However, most implementations are ultimately
  successful.

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ERP Critical Success Factors

• Preparation, analysis and design phases
• ERP teamwork and composition
• Mix of consultants and internal staff best
  brightest
• Proper incentives risk-sharing
• Top management support
• Clear business plan and vision
• Effective communication
• Good project management
• Project champion

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ERP CSF (contd)

• Implementation phase
• Change management program and culture
• BPR and minimum customization
• Software development, testing and troubleshooting
• Performance monitoring and evaluation
• Maintenance phase
• Ongoing business vision

Source Nah, Lau Kuang (2001). Critical
factors for successful implementation of
enterprise systems, Business Process Management
Journal.
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Next Time

• E-business
• Collaborative systems