Kroenke 1 Supporting Processes with ERP Systems Week 8 Chapter 6 Information Silo Problem Data Isolated in separate information system Solutions to this is by 1 Enterprise Application Integration EAI 2 Enterprise Resource Planning ERP Where did ERP Systems come from Grew out of Manufacturing software o MRP Manage Information Production and Labor o MRPII Add ins Financial Tracking and Manufacturing Processes Ability to schedule capacities Five Components of an ERP systems o Software o Hardware o Data o Procedures o People Elements of an ERP Systems o ERP software Configuration o ERP databases Over 25000 tables o Procedures Train the trainer In house training o Hardware o People ERP hardware dilemma User Analysts Consultants o Inherent Business Processes in ERP System specified business processes Process blueprints Benefits of an ERP system o Implement processes that are industry best practices o Data sharing occurs in real time o Management can be insightful and provide better oversight o The information silo problem is solved Types of Organization that Use ERP o Industry Type o Organizational Size o International ERP Example of Top three Manufacturing Distribution Mining materials extraction petroleum Medical Care Government and Public Service Utilities Retail Education Kroneke 2 Chapter 7 Supporting the Procurement Process with SAP Fundamentals of the Procurement Process Supporting the Inbound Logistics Process in the Value Chain o Procurement of raw materials for production Inbound Logistics Receiving Storing and disseminating inputs to the product Problems with the Procurement Process before SAP o Warehouse Problem Grown in finishing goods inventory reduces warehouse space for raw material inventory Warehouse manager does not have data on sales price discounts o Accounting o Purchasing difference Three way match discrepancies take time to correct Account data are not real time Purchasing agents not centralized training experience and motivation Weak internal controls lead to limited scrutiny of purchase How does CBI Implement SAP o By reexamine and refocusing their strategy Determine industry structure Commit to a specific competitive strategy Develop objectives and measures for process Procurement Process work at CBI after SAP o Maintained same three major activities Order Receive and Pay o Single shared database o Solution to prior problems Purchasing Warehouse Accounting Create Purchase Order Goods Receipt Purchase Order Post Outgoing Payments Benefits of SAP for CBI s Procurement Process Incoming Invoice o Single Database o Shared Information in real time o Reduction of errors o Improved Financial Controls o Increase Responsiveness SAP improve the Integration of Supply Chain Process at CBI o Supply Chain Process o Supply Chain Integration o Improve SCP integration by sharing data o Improve SCP Integrations by Increasing Process Synergy o Other improvement through SCP Examples of Other IS that improves Supply Chain Processes o Augments Reality o RFID Radio Frequency Identification o Sensors o Robotics o 3D Printing Use of SAP change for CBI o New Skills are needed o Process Focus o More data sharing o Outsourcing Kroenke Chapter 8 Supporting The Sales Process with SAP Fundamental of Sales Process Sales Process within Value Chain of CBI o Inbound logistics o Operation o Outbound Logistics o Sales and marketing o Customers Service Pre Sales o Contact Customers o Give Price Quota o Verify product Availability o Check special terms o Confirm deliver options o Pray SAP Improve Integration of Customer Facing Processes at CBI o Integration of Customer Facing Processes o Facing Process Integration by Sharing Data o Increase Process Synergy o SAP integration problems with emerging Technologies o Integration Challenges and Lessons How Can SAP improve Integration of Customer Facing Proves at CBI o Integration of customer facing process by CRM Customer Relationship Management Process Scope Operation o Promotion Sales and Service Managerial o Promotional Discounting o Service Trends Strategic o New Product Launch o Promotion Evaluation Valacich Chapter 8 Strengthen B2B Via Supply Chain and CRM Part 1 Business to Business and Supply Chain Management Supply Chain Management SCM o A collection of companies and processes involved in moving a product from the supplies of raw materials to the supplies of intermediate components then to the final production and lastly to the customer o More accurately called a network because business have multiple supplies that also have multiple supplies o Comprises the lion share of the election commerce market 90 in US o Involve proprietary information o Facilitated using Electronic Data Interchange EDI o Portals Include Value Added Services such as management tools for Business to Business B2B customers Supplies Portals Customer Portals o Marketplaces Link many suppliers and customers together Allow smaller business to participate in the new market Vertical markets Market within an industry sector Highly efficient Ex Alibaba com o Managing Complex Supply Networks Ex iPhone involve buying different parts from around the world Having transparency through supply chain helps management know what is going on and whenever possible make adjustments for the unexpected o Benefit of Effective Managing Supply Chains Just In Time production Inventory deliver just as it is needed Minimized stock and handling cost Reduce obsolescence charges Vendor Managed Inventory Another place that offloads inventory management to the vendor selling the inventory Vendors track usage and replenish supplies Reduce Procurement and inventory replenishment costs o Supply Chain Planning SCP Involved SCM tools and modules working together to meet business needs and customer demands Starts with Demand Planning and Forecasting Distribution Planning Production Planning Inventory and Safety Stock Planning o Supply Chain Execution SCE Focuses on the efficient and effective flow of material information and financial tractions Is the implementation of the Supply Chain Plan Involves placing the orders shipping the goods and paying for them o Supply Chain Visibility Ability to track products as they move through the supply chain as well as external events that impact or might impact the supply chain Product Tracking Anticipating Adverse Impacts Weather impacts Labor Negotiations o Supply Chain Analytics Analysis and use of key performance indicators to facilitate more effective management and