Enterprise Resource Planning 1. Enterprise resource planning a. Definition: Integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations. b. Characteristics: Flexible to changing needs, modular and open – changes to one does not affect other, comprehensive, span boundaries. 2. Personal experiences of dealing with ERP package. (How do you think ERP is helping you at SJSU?) 3. Who are different ERP vendors? 4. Components of ERP a. Core components: Traditional components i. Accounting and Finance 1. Maintains general ledger, accounts receivable or payable, budgeting, and asset management, credit management. ii. Production and materials management 1. Production planning, demand forecasting, scheduling, job cost accounting, quality control. iii. Human resources 1. Payroll, benefits, compensation, performance assessment, and assurance compliance. b. Extended ERP components: External focus. i. Business intelligence ii. CRM iii. SCM iv. E-business (E-procurement and E-logistics) 5. ERP success factors: 66% of all ERP implementations are a failure a. Overall fit: Off the rack  Custom fit b. Proper business analysis: Know your business before changing it. c. Solid implementation plans: It’s a project and should be managed like one 6. ERP benefits and cost a. Benefits: Takes 8-18 months and average cost savings is $1.6m PA, reduced inventory, standardized human resources, improved manufacturing speed, integrated customer order information, integrated financial information. b. Costs: hardware, software, professional services or consulting fee, process rework, customization, internal staff cost or retraining, integration and testing. Range from 400K – 300 m. 7. Integrating SCM, CRM, ERP through middleware e.g. enterprise application integration middleware. ERP to be continued.ERP Continued Collaborative Systems 1. Why collaborate? a. New opportunities b. Interdependence c. Competency of individuals 2. Types of collaborations: Central idea is to gain competitive advantage through access to partner resources. Every company/individual has some core competency (Things that they do best). Collaboration allows them to focus on their core-competency and leave the rest to others. a. Teams: Usually internal b. Partnership: Usually external c. Alliances: Usually external d. E.g. Amazon-Borders partnership (http://www.amazon.com/exec/obidos/tg/browse/-/577394) 3. Role of IT a. IT makes it easier to collaborate. A collaborative system is a set of tools that facilitates flow and sharing of information. (Think elluminate) 4. Types of collaboration a. Unstructured collaboration (or information collaboration): document exchange, shared whiteboard, discussion forums, and emails. Benefits? b. Structured collaboration: integration of business processes, work flow etc where rules are pre defined. 5. Collaboration systems include: a. Knowledge management systems i. Explicit knowledge ii. Tacit knowledge b. Content management systems i. Document management system (DMS) ii. Digital asset management system (DAM) iii. Web content management system (WCM) c. Workflow management systems d. Groupware systems e.g. emails, video conferencing