CHAPTER 10 ENTERPRISE RESOURCE PLANNING AND COLLABORATION SYSTEMS

CHAPTER 10 ENTERPRISE RESOURCE PLANNING AND COLLABORATION SYSTEMS Mc. Graw-Hill/Irwin © 2008 The Mc. Graw-Hill Companies, All Rights Reserved

10 -2 CHAPTER TEN OVERVIEW • SECTION 10. 1 - ENTERPRISE RESOURCE PLANNING – – – – Enterprise Resource Planning Core and Extended ERP Components Core ERP Components Extended ERP Components ERP Vendor Overview ERP Benefits and Risks (Cost) The Connected Corporation – Integrating SCM, CRM, and ERP – The Future of ERP

10 -3 CHAPTER TEN OVERVIEW • SECTION 10. 2 – COLLABORATION SYSTEMS – – – – Teams, Partnerships, and Alliances Collaboration Systems Knowledge Management Systems Content Management Systems Workflow Management Systems Groupware Systems Collaboration Trends

SECTION 10. 1 ENTERPRISE RESOURCE PLANNING Mc. Graw-Hill/Irwin © 2008 The Mc. Graw-Hill Companies, All Rights Reserved

10 -5 LEARNING OUTCOMES 1. Compare core enterprise resource planning components and extended enterprise resource planning components 2. Describe three primary components found in core enterprise resource planning 3. Describe the four primary components found in extended enterprise resource planning systems 4. Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems

10 -6 ENTERPRISE 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 operations

10 -7 ENTERPRISE RESOURCE PLANNING

10 -8 CORE 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 operations

10 -9 CORE AND EXTENDED ERP COMPONENTS

10 -10 CORE ERP COMPONENTS • Three most common core ERP components 1. Accounting and finance 2. Production and materials management 3. Human resource

10 -11 Accounting 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 management

10 -12 Production 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 control

10 -13 Human 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 authorities

10 -14 EXTENDED ERP COMPONENTS • Extended ERP components include: – Business intelligence – Customer relationship management – Supply chain management – E-business

10 -15 E-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 (B 2 B) purchase and sale of supplies and services over the Internet

10 -16 ERP 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 systems

10 -17 ERP VENDOR OVERVIEW

10 -18 ERP Vendor Overview • SCM and CRM market overviews

10 -19 ERP SOFTWARE • Successful ERP projects share 3 attributes 1. Overall fit • • • Off the rack and tailored to fit Custom made 2. Proper business analysis • Successful companies spend up to 10 percent of the project budget on a business analysis 3. Solid implementation plans • A plan is needed to monitor the quality, objectives, and timelines

10 -20 ERP BENEFITS AND RISKS • Common ERP benefits 1. Integrate financial information 2. Integrate customer order information 3. Standardize and speed up manufacturing processes 4. Reduce inventory 5. Standardize human resource information

10 -21 ERP BENEFITS AND RISKS

10 -22 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 -23 THE 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 vendors

10 -24 THE CONNECTED CORPORATION • General audience and purpose of SCM, CRM and ERP

10 -25 THE CONNECTED CORPORATION • Data points where SCM, CRM, and ERP integrate

10 -26 THE 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 system

10 -27 THE CONNECTED CORPORATION • ERP systems automate business processes

10 -28 THE 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 workforce

10 -29 OPENING CASE QUESTIONS Campus ERP 1. 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?

SECTION 10. 2 COLLABORATION SYSTEMS Mc. Graw-Hill/Irwin © 2008 The Mc. Graw-Hill Companies, All Rights Reserved

10 -31 LEARNING OUTCOMES 5. Identify the different ways in which companies collaborate using technology 6. Compare the different categories of collaboration technologies 7. Define the fundamental concepts of a knowledge management system

10 -32 LEARNING OUTCOMES 8. Provide an examples of a content management system along with its business purpose 9. Evaluate the advantages of using a workflow management system 10. Explain how groupware can benefit a business

10 -33 TEAMS, 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, and alliances both internally with employees and externally with other organizations

10 -34 TEAMS, PARTNERSHIPS, AND ALLIANCES • Collaboration system – supports the work of teams by facilitating the sharing and flow of information

10 -35 TEAMS, PARTNERSHIPS, AND ALLIANCES • Organizations form alliances and partnerships with other organizations based on their core competency – Core competency – an organization’s key strength, a business function that it does better than any of its competitors – Core competency strategy – organization chooses to focus specifically on its core competency and forms partnerships with other organizations to handle nonstrategic business processes

10 -36 TEAMS, PARTNERSHIPS, AND ALLIANCES • Information technology can make a business partnership easier to establish and manage – Information partnership – occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer • The Internet has dramatically increased the ease and availability for IT-enabled organizational alliances and partnerships

10 -37 COLLABORATION SYSTEMS • Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management • Collaboration system – an IT-based set of tools that supports the work of teams by facilitating the sharing and flow of information

10 -38 COLLABORATION SYSTEMS • Two categories of collaboration 1. Unstructured collaboration (information collaboration) - includes document exchange, shared whiteboards, discussion forums, and email 2. Structured collaboration (process collaboration) - involves shared participation in business processes such as workflow in which knowledge is hardcoded as rules

10 -39 COLLABORATION SYSTEMS • Collaborative business functions

10 -40 COLLABORATION SYSTEMS • Collaboration systems include: – – Knowledge management systems Content management systems Workflow management systems Groupware systems

10 -41 KNOWLEDGE MANAGEMENT • Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions • Knowledge management system (KMS) – supports the capturing and use of an organization’s “know-how”

10 -42 Explicit and Tacit Knowledge • Intellectual and knowledge-based assets fall into two categories 1. Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the help of IT 2. Tacit knowledge - knowledge contained in people’s heads

10 -43 Explicit and Tacit Knowledge • The following are two best practices for transferring or recreating tacit knowledge – Shadowing – less experienced staff observe more experienced staff to learn how their more experienced counterparts approach their work – Joint problem solving – a novice and expert work together on a project

10 -44 Explicit and Tacit Knowledge • Reasons why organizations launch knowledge management programs

10 -45 KM Technologies • Knowledge management systems include: – – – Knowledge repositories (databases) Expertise tools E-learning applications Discussion and chat technologies Search and data mining tools

10 -46 KM and Social Networking • Finding out how information flows through an organization – Social networking analysis (SNA) – a process of mapping a group’s contacts (whether personal or professional) to identify who knows whom and who works with whom – SNA provides a clear picture of how employees and divisions work together and can help identify key experts

10 -47 CONTENT MANAGEMENT SYSTEMS • Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment • CMS marketplace includes: – Document management system (DMS) – Digital asset management system (DAM) – Web content management system (WCM)

10 -48 CONTENT MANAGEMENT SYSTEMS • Content management system vendor overview

10 -49 WORKFLOW MANAGEMENT SYSTEMS • Work activities can be performed in series or in parallel that involves people and automated computer systems • Workflow – defines all the steps or business rules, from beginning to end, required for a business process • Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process

10 -50 WORKFLOW MANAGEMENT SYSTEMS • Messaging-based workflow system – sends work assignments through an email system • Database-based workflow system – stores documents in a central location and automatically asks the team members to access the document when it is their turn to edit the document

10 -51 GROUPWARE SYSTEMS • Groupware technologies

10 -52 GROUPWARE SYSTEMS • Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing

10 -53 COLLABORATION TRENDS • E-mail is the dominant form of collaboration application, but real-time collaboration tools like instant messaging are creating a new communication dynamic • Instant messaging - type of communications service that enables someone to create a kind of private chat room with another individual to communicate in real-time over the Internet

10 -54 COLLABORATION TRENDS • Instant messaging application

10 -55 OPENING CASE QUESTIONS Campus ERP 1. How can a college campus achieve business success through the use of collaboration tools? 2. How can your college use knowledge management systems to improve operations? 3. How can your college use content management systems to improve operations?

10 -56 OPENING CASE QUESTIONS Campus ERP 4. How can a team of college students use a workflow management system to complete a group project? 5. If your college wanted to implement a groupware system, what would be its primary purpose?

10 -57 CLOSING CASE ONE Dream. Works 1. How can companies use Halo to increase their business efficiency? 2. Explain how a company like Pepsi. Co can use Halo to gain a competitive advantage in its industry 3. How can knowledge management be increased by using a product such as Halo?

10 -58 CLOSING CASE ONE Dream. Works 4. Why would a company like Dream. Works, that is not IT focused, be interested in collaboration technology? 5. What are a few of the security issues surrounding this type of technology?

10 -59 CLOSING CASE TWO Highway Safety 1. How are collaboration tools helping to save lives in Texas? 2. How could a police department use groupware to help with collaboration on accident reports? 3. Describe how a police department could use workflow systems to help with accident reports and health-care-related issues

10 -60 CLOSING CASE TWO Highway Safety 4. What would be the impact on lives if a state fails to implement collaboration tools to help track and analyze highway accidents? 5. How could police departments use wireless technologies to operate more efficiently and effectively? 6. What ethical issues surrounding wireless technologies should police departments understand?

10 -61 CLOSING CASE THREE Saving Costs at Costco 1. Identify content management and document management and explain how Costco is using them to improve business operations 2. Provide an example of a few of the documents that Costco must maintain electronically 3. How might other Costco departments benefit from a document management system? 4. The Stellent Imaging and Business Process Management solution allowed Costco to grow as a company without increasing expenses. Identify another business that could benefit form the Stellent Imaging and Business Process Management Solution