CHAPTER 10ENTERPRISE RESOURCE PLANNINGSlide 3CORE AND EXTENDED ERP COMPONENTSSlide 5CORE ERP COMPONENTSAccounting and Finance ERP ComponentsProduction and Materials Management ERP ComponentsHuman Resource ERP ComponentEXTENDED ERP COMPONENTSE-Business ComponentsERP VENDOR OVERVIEWSlide 13ERP Vendor OverviewERP SOFTWAREERP BENEFITS AND RISKSERP BENEFITS AND RISKSTHE CONNECTED CORPORATIONSlide 19Slide 20Slide 21Slide 22Slide 23THE FUTURE OF ERPOPENING CASE QUESTIONS Campus ERPSECTION 10.2TEAMS, PARTNERSHIPS, AND ALLIANCESSlide 28Slide 29Slide 30COLLABORATION SYSTEMSSlide 32Slide 33Slide 34KNOWLEDGE MANAGEMENTExplicit and Tacit KnowledgeSlide 37Slide 38KM TechnologiesKM and Social NetworkingCONTENT MANAGEMENT SYSTEMSSlide 42WORKFLOW MANAGEMENT SYSTEMSSlide 44GROUPWARE SYSTEMSSlide 46COLLABORATION TRENDSSlide 48McGraw-Hill/Irwin©2008 The McGraw-Hill Companies, All Rights ReservedCHAPTER 10CHAPTER 10ENTERPRISE RESOURCE PLANNING AND COLLABORATION SYSTEMSENTERPRISE RESOURCE PLANNING AND COLLABORATION SYSTEMS10-2ENTERPRISE 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 operations10-3ENTERPRISE RESOURCE PLANNING10-4CORE 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 operations10-5CORE AND EXTENDED ERP COMPONENTS10-6CORE ERP COMPONENTS•Three most common core ERP components1. Accounting and finance 2. Production and materials management3. Human resource10-7Accounting 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 management10-8Production 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 control10-9Human 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 authorities10-10EXTENDED ERP COMPONENTS•Extended ERP components include:–Business intelligence–Customer relationship management–Supply chain management–E-business10-11E-Business Components•E-business components include e-logistics and e-procurement –E-logistics – manages the transportation and storage of goods–E-procurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet10-12ERP VENDOR OVERVIEW•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 systems10-13ERP VENDOR OVERVIEW10-14ERP Vendor Overview•SCM and CRM market overviews10-15ERP SOFTWARE•Successful ERP projects share 3 attributes1. Overall fit•Off the rack•Off the rack and tailored to fit•Custom made2. Proper business analysis•Successful companies spend up to 10 percent of the project budget on a business analysis3. Solid implementation plans•A plan is needed to monitor the quality, objectives, and timelines10-16ERP BENEFITS AND RISKS•Common ERP benefits1. Integrate financial information2. Integrate customer order information3. Standardize and speed up manufacturing processes4. Reduce inventory5. Standardize human resource information10-17ERP BENEFITS AND RISKS10-18THE 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, anytime10-19THE CONNECTED CORPORATION•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 – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors10-20THE CONNECTED CORPORATION•General audience and purpose of SCM, CRM and ERP10-21THE CONNECTED CORPORATION•Data points where SCM, CRM, and ERP integrate10-22THE CONNECTED CORPORATION•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 system10-23THE CONNECTED CORPORATION•ERP systems automate business processes10-24THE FUTURE OF ERP •Lines between SCM, CRM, and ERP will continue to blur–Internet – continue to help organizations integrate data and process across functional departments–Interface – customizable employee browsers –Wireless technology – support a mobile workforce10-25OPENING CASE QUESTIONSCampus ERP1. How could core ERP components help improve business operations at your college?2. How could extended ERP components help improve business operations at your college? 3. How can integrating SCM, CRM, and ERP help improve business operations at your college?4. Review the different components in Figure 10.14. Which component would you recommend your college implement if it decided to purchase an ERP component?McGraw-Hill/Irwin©2008 The McGraw-Hill Companies, All Rights ReservedSECTION 10.2SECTION 10.2COLLABORATION SYSTEMSCOLLABORATION SYSTEMS10-27TEAMS, 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,