Chapter 12

Integrating the Organization from End to End Enterprise Resource Planning

McGraw-Hill/Irwin

2008 The McGraw-Hill Companies, All Rights Reserved

Learning Outcomes
12.1

Describe the role information plays in enterprise resource planning systems Identify the primary forces driving the explosive growth of enterprise resource planning systems Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems
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12.2

12.3

Enterprise Resource Planning (ERP)

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

12-3

Enterprise Resource Planning (ERP)

ERP systems automate business processes

12-4

Bringing the Organization Together

ERP The organization before ERP

12-5

Bringing the Organization Together

ERP bringing the organization together

12-6

The Evolution of ERP

12-7

Integrating SCM, CRM, and ERP

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
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Integrating SCM, CRM, and ERP

SCM and CRM market overviews

12-9

Integrating SCM, CRM, and ERP

General audience and purpose of SCM, CRM and ERP

12-10

Integration Tools
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 12-11 applications from multiple vendors

Integration Tools
Data points where SCM, CRM, and ERP integrate

12-12

Enterprise Resource Plannings Explosive Growth

ERP systems must integrate various organization processes and be:
Flexible Modular and open Comprehensive Beyond the company

12-13

Enterprise Resource Plannings Explosive Growth

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
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OPENING CASE STUDY QUESTIONS

Second Life 1. If you operated a business entirely on Second Life would you require an ERP system? Why or why not? 2. How would an ERP system be used in Second Life to support a global organization?

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CHAPTER TWELEVE CASE

Gearing Up at REI
Recreational Equipment Inc. (REI) annual revenues between $500 million and $1 billion and more than 10,000 employees REI is an industry leader for its best practice multichannel CRM strategy, which allows customers to seamlessly purchase products at the companys 70 retail stores as well as by telephone, through mail order, and on the Internet

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Chapter Twelve Case Questions

1. What business impact could REI gain by using a digital dashboard from its ERP system? 2. How can REI benefit from using artificial intelligence to support its business operations? 3. How does REIs ERP system help employees improve their decision making capabilities and highlight potential business opportunities?
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Chapter Twelve Case Questions

4. How could an SCM system improve REIs business operations? 5. Provide an illustration of REIs SCM system including all upstream and downstream participants. 6. Determine two pieces of customer information that REI could extrapolate from its CRM system that would help it manage its business more effectively. 7. How can an ERP system help REI gain business intelligence in its operations? 8. What is the business benefit for REI in integrating its CRM, SCM, and ERP systems? 12-18

BUSINESS DRIVEN TECHNOLOGY UNIT THREE CLOSING

McGraw-Hill/Irwin

2008 The McGraw-Hill Companies, All Rights Reserved

UNIT CLOSING CASE ONE

Dells Famous Supply Chain

1. Identify a few key metrics a Dell marketing executive might want to monitor on a digital dashboard 2. Determine how Dell can benefit from using decision support systems and executive information systems in its business 3. Describe how Dell has influenced visibility, consumer behavior, competition, and speed though the use of IT in its supply chain
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UNIT CLOSING CASE ONE

Dells Famous Supply Chain

4. Explain the seven principles of SCM in reference to Dells business model 5. Identify how Dell can use CRM to improve its business operations 6. Explain how an ERP system could help Dell gain business intelligence
12-21

UNIT CLOSING CASE TWO

Revving Up Sales at Harley Davidson

1. 2. 3. Explain how Talon helps Harley-Davidson employees improve their decision-making capabilities Identify a few key metrics a Harley-Davidson marketing executive might want to monitor on a digital dashboard Determine how Harley-Davidson can benefit from using decision support systems and executive information systems in its business How would Harley-Davidsons business be affected if it decided to sell accessories directly to its online customers? Include a brief discussion of the ethics involved with this decision
12-22

4.

UNIT CLOSING CASE TWO

Revving Up Sales at Harley Davidson

5. Evaluate the HOG CRM strategy and recommend an additional benefit Harley-Davidson could provide to its HOG members to increase customer satisfaction How could Harley-Davidsons SCM system, Manugistics, improve its business operations? Provide a potential illustration of Harley-Davidsons SCM system including all upstream and downstream participants Explain how an ERP system could help Harley-Davidson gain business intelligence in its operations
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6. 7.

8.