Business Driven Information Systems 2e

1. Business Driven Information Systems 2e CHAPTER 10 ENTERPRISE RESOURCE PLANNING AND COLLABORATION SYSTEMS CLASSROOM EXERCISE SIMULATION: Lemonade Tycoon Jennifer Nightingale from Duquesne shared this simulation with us that she uses for teaching ERP - it is excellent!! http://get.games.yahoo.com/proddesc?gamekey=lemonade CLASSROOM EXERCISE SIMULATION: Lemonade Tycoon Jennifer Nightingale from Duquesne shared this simulation with us that she uses for teaching ERP - it is excellent!! http://get.games.yahoo.com/proddesc?gamekey=lemonade

2. CHAPTER TEN OVERVIEW SECTION 10.1 - ENTERPRISE RESOURCE PLANNING Enterprise Resource Planning Core ERP Components Extended ERP Components Integrating SCM, CRM, and ERP Measuring ERP Success Choosing ERP Software

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

4. SECTION 10.1 ENTERPRISE RESOURCE PLANNING

5. LEARNING OUTCOMES Compare core enterprise resource planning components and extended enterprise resource planning components Describe the three primary components found in core enterprise resource planning Describe the four primary components found in extended enterprise resource planning systems 10. 1. Compare core enterprise resource planning components and extended enterprise resource planning components Core ERP components include the traditional components included in most ERP systems and they primarily focus on internal operations Extended ERP components include the extra components that meet the organizational needs not covered by the core components and primarily focus on external operations 10.2. Describe the three primary components found in core enterprise resource planning Accounting and finance components – manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management Production and materials management components – handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control Human resource components – track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities 10.3. Describe the four primary components found in extended enterprise resource planning systems Business intelligence – describe information that people use to support their decision-making efforts Customer relationship management – involves managing all aspects of a customer’s relationships with an organization to increase customer loyalty and retention and an organization's profitability Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability E-business – means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners 10. 1. Compare core enterprise resource planning components and extended enterprise resource planning components Core ERP components include the traditional components included in most ERP systems and they primarily focus on internal operations Extended ERP components include the extra components that meet the organizational needs not covered by the core components and primarily focus on external operations 10.2. Describe the three primary components found in core enterprise resource planning Accounting and finance components – manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management Production and materials management components – handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control Human resource components – track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities 10.3. Describe the four primary components found in extended enterprise resource planning systems Business intelligence – describe information that people use to support their decision-making efforts Customer relationship management – involves managing all aspects of a customer’s relationships with an organization to increase customer loyalty and retention and an organization's profitability Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability E-business – means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners

6. LEARNING OUTCOMES Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems Explain how an organization can use the balanced scorecard to measure ERP success? 10.4 Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems. Most organizations piecemeal their applications together since no one vendor can respond to every organization’s needs; hence, customers purchase multiple applications from multiple vendors. For example, a single organization might choose its CRM components from Siebel, SCM from i2, financial from Oracle, and human resources from PeopleSoft. These applications must be integrated in order to gain an enterprisewide view of the information. 10.5 Explain how an organization can use the balanced scorecard to measure ERP success? The balanced scorecard is a management system, as well as a measurement system, that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and the external outcomes in order to continuously improve strategic performance and results. An ERP system is incredibly difficult to measure since it spans across the entire organization and hits almost all departments. Measuring the success of an ERP system is one of the most difficult tasks an organization can undertake. By using the balanced scorecard and organization can begin to define the success levels of an ERP implementation. 10.4 Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems. Most organizations piecemeal their applications together since no one vendor can respond to every organization’s needs; hence, customers purchase multiple applications from multiple vendors. For example, a single organization might choose its CRM components from Siebel, SCM from i2, financial from Oracle, and human resources from PeopleSoft. These applications must be integrated in order to gain an enterprisewide view of the information. 10.5 Explain how an organization can use the balanced scorecard to measure ERP success? The balanced scorecard is a management system, as well as a measurement system, that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and the external outcomes in order to continuously improve strategic performance and results. An ERP system is incredibly difficult to measure since it spans across the entire organization and hits almost all departments. Measuring the success of an ERP system is one of the most difficult tasks an organization can undertake. By using the balanced scorecard and organization can begin to define the success levels of an ERP implementation.

7. 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 This section covers: Core ERP components Extended ERP components ERP benefits ERP risks Future of ERP CLASSROOM VIDEO Strategy to Align Business and Technology: ERP Video Solid financial management is essential to running your business. Enterprise Resource Planning (ERP) systems support financial management as well as other back office functions such as human resources. Although not generally considered mission-critical, ERP systems must be implemented and managed properly to provide visibility into operations in a cost-effective, flexible way. Join featured analyst firm, Gartner Inc. VP and Distinguished Analyst Jeff Comport, and Kirsten Greenfield, Practice Director of Oracle Professional Services, USinternetworking, Inc. (USi), for a new webcast available now “Closing the Application Value Gap: Strategies for Aligning IT with Business” as they examine how organizations are driving maximum benefit from their ERP investments. You'll also learn the steps that USi client, The Princeton Review, took to effectively manage the ongoing maintenance of its Oracle implementation while strategically deploying its internal IT resources. Tune in and learn: * Two exercises to determine whether an ERP solution is right for you or not * Key strategies when implementing an ERP system * How to navigate the balancing act between what to have inside, what to develop yourself, and what to get from outside the organization * How to get maximum value out of an ERP system * How to make your ERP system “the single source of truth” http://www.itbriefingcenter.com/programs/gartner_usialigntech.html This section covers: Core ERP components Extended ERP components ERP benefits ERP risks Future of ERP CLASSROOM VIDEO Strategy to Align Business and Technology: ERP Video Solid financial management is essential to running your business. Enterprise Resource Planning (ERP) systems support financial management as well as other back office functions such as human resources. Although not generally considered mission-critical, ERP systems must be implemented and managed properly to provide visibility into operations in a cost-effective, flexible way. Join featured analyst firm, Gartner Inc. VP and Distinguished Analyst Jeff Comport, and Kirsten Greenfield, Practice Director of Oracle Professional Services, USinternetworking, Inc. (USi), for a new webcast available now “Closing the Application Value Gap: Strategies for Aligning IT with Business” as they examine how organizations are driving maximum benefit from their ERP investments. You'll also learn the steps that USi client, The Princeton Review, took to effectively manage the ongoing maintenance of its Oracle implementation while strategically deploying its internal IT resources. Tune in and learn: * Two exercises to determine whether an ERP solution is right for you or not * Key strategies when implementing an ERP system * How to navigate the balancing act between what to have inside, what to develop yourself, and what to get from outside the organization * How to get maximum value out of an ERP system * How to make your ERP system “the single source of truth” http://www.itbriefingcenter.com/programs/gartner_usialigntech.html

8. ENTERPRISE RESOURCE PLANNING Reasons ERP systems are powerful tools ERP is a logical solution to incompatible applications ERP addresses global information sharing and reporting ERP avoids the pain and expense of fixing legacy systems CLASSROOM VIDEO Giant Bicycle "Before, our customer service department had to get off the phone, look at three or four screens, go into a file cabinet, and call a warehouse to track a shipment," says Mike Forte, director of strategic information systems at Giant Bicycle USA. "Now they can see the whole shipment process on the screen, right at their fingertips." Watch this video to see how Microsoft Business Solutions–Axapta (now Microsoft Dynamics AX) has helped Giant Bicycle USA link four factories and 12 distribution centers, and provided immediate information to their customer service people. http://www.microsoft.com/dynamics/ax/product/giantbicycle.mspx CLASSROOM VIDEO Giant Bicycle "Before, our customer service department had to get off the phone, look at three or four screens, go into a file cabinet, and call a warehouse to track a shipment," says Mike Forte, director of strategic information systems at Giant Bicycle USA. "Now they can see the whole shipment process on the screen, right at their fingertips." Watch this video to see how Microsoft Business Solutions–Axapta (now Microsoft Dynamics AX) has helped Giant Bicycle USA link four factories and 12 distribution centers, and provided immediate information to their customer service people. http://www.microsoft.com/dynamics/ax/product/giantbicycle.mspx

9. ENTERPRISE RESOURCE PLANNING Sample data from a sales database When displaying the sales database example and the accounting database be sure to point out the differences in the data Ask your students why correlating these two spreadsheets would be difficult? How can you understand customers when one spreadsheet has customer name and one has customer ID? How can you understand sales reps when one spreadsheet has sales rep names and one spreadsheet has sales rep ID? Date format is different – will this cause problems? One quantity is in units and one quantity has decimal points – what problems will this cause? Unit price and unit cost is rounded to dollars in one spreadsheet and contains cents in another – what problems will this cause? When displaying the sales database example and the accounting database be sure to point out the differences in the data Ask your students why correlating these two spreadsheets would be difficult? How can you understand customers when one spreadsheet has customer name and one has customer ID? How can you understand sales reps when one spreadsheet has sales rep names and one spreadsheet has sales rep ID? Date format is different – will this cause problems? One quantity is in units and one quantity has decimal points – what problems will this cause? Unit price and unit cost is rounded to dollars in one spreadsheet and contains cents in another – what problems will this cause?

10. ENTERPRISE RESOURCE PLANNING Sample data from an accounting database When displaying the sales database example and the accounting database be sure to point out the differences in the data Ask your students why correlating these two spreadsheets would be difficult? How can you understand customers when one spreadsheet has customer name and one has customer ID? How can you understand sales reps when one spreadsheet has sales rep names and one spreadsheet has sales rep ID? Date format is different – will this cause problems? One quantity is in units and one quantity has decimal points – what problems will this cause? Unit price and unit cost is rounded to dollars in one spreadsheet and contains cents in another – what problems will this cause? When displaying the sales database example and the accounting database be sure to point out the differences in the data Ask your students why correlating these two spreadsheets would be difficult? How can you understand customers when one spreadsheet has customer name and one has customer ID? How can you understand sales reps when one spreadsheet has sales rep names and one spreadsheet has sales rep ID? Date format is different – will this cause problems? One quantity is in units and one quantity has decimal points – what problems will this cause? Unit price and unit cost is rounded to dollars in one spreadsheet and contains cents in another – what problems will this cause?

11. ENTERPRISE RESOURCE PLANNING ERP systems collect data from across an organization and correlates the data generating an enterprisewide view The true benefit of an ERP system is its ability take the many different forms of data from across the different organizational systems and correlate, aggregate, and provide an enterprisewide view of organizational information The two previous spreadsheets display examples of differences in data that can be fixed by using an ERP system Ask your students why it is important to have an enterprisewide view of data? Without understanding how all of the different divisions, products, departments, etc. are operating you cannot run the businessThe true benefit of an ERP system is its ability take the many different forms of data from across the different organizational systems and correlate, aggregate, and provide an enterprisewide view of organizational information The two previous spreadsheets display examples of differences in data that can be fixed by using an ERP system Ask your students why it is important to have an enterprisewide view of data? Without understanding how all of the different divisions, products, departments, etc. are operating you cannot run the business

12. The Heart of ERP At the heart of all ERP systems is a database Why do organizations need integrations, if an ERP system contains one database that connects all applications together? Most organizations operate functional “silos”, and each department typically has its own systems A company might purchase an ERP and then all of the functional silos would be on one system, however, this doesn’t happen very often in the real world Most organizations require anywhere from 10 to 100 to 1,000 different systems to run their business Finding one system that could meet all the needs of an entire organization from billing to sales is almost impossible, “sort of a utopia” An organization can purchase an ERP and still have other applications running parts of its business (for example, taxation packages) that are not supported, or not supported well, by the ERP system Why do organizations need integrations, if an ERP system contains one database that connects all applications together? Most organizations operate functional “silos”, and each department typically has its own systems A company might purchase an ERP and then all of the functional silos would be on one system, however, this doesn’t happen very often in the real world Most organizations require anywhere from 10 to 100 to 1,000 different systems to run their business Finding one system that could meet all the needs of an entire organization from billing to sales is almost impossible, “sort of a utopia” An organization can purchase an ERP and still have other applications running parts of its business (for example, taxation packages) that are not supported, or not supported well, by the ERP system

13. The Heart of ERP ERP systems automate business processes ERP systems automate business processes, for example, order fulfillment When a CSR takes an order from a customer, he or she has all the information necessary to complete the order (the customer’s credit rating and order history, the company’s inventory levels, and the delivery schedule) Since the company is using an ERP, everyone else in the company will automatically see the information that the CSR types into the ERP system When one department finishes with the order, it is automatically routed via the ERP system to the next department To determine where an order is at any point in time, a user only needs to login to the ERP system and track it down ERP systems automate business processes, for example, order fulfillment When a CSR takes an order from a customer, he or she has all the information necessary to complete the order (the customer’s credit rating and order history, the company’s inventory levels, and the delivery schedule) Since the company is using an ERP, everyone else in the company will automatically see the information that the CSR types into the ERP system When one department finishes with the order, it is automatically routed via the ERP system to the next department To determine where an order is at any point in time, a user only needs to login to the ERP system and track it down

14. The Heart of ERP In most organizations, information has traditionally been isolated within specific departments, whether on an individual database, in a file cabinet, or on an employee’s PC. ERP enables employees across the organization to share information across a single, centralized database. With extended portal capabilities, an organization can also involve its suppliers and customers to participate in the workflow process, allowing ERP to penetrate the entire value chain, and help the organization achieve greater operational efficiency When reviewing this diagram demonstrate to the students how each department has its own database separate from all other organizational departments Ask your student what types of problems could occur if all departments maintain their own database and systems? Update issues Redundancy Inaccurate information across databases Different formats of information in the different databases Inability to access other department information and not being provided with a 360 degree view of the organization Different customer information in different databases Customer contact from multiple departments with different messages In most organizations, information has traditionally been isolated within specific departments, whether on an individual database, in a file cabinet, or on an employee’s PC. ERP enables employees across the organization to share information across a single, centralized database. With extended portal capabilities, an organization can also involve its suppliers and customers to participate in the workflow process, allowing ERP to penetrate the entire value chain, and help the organization achieve greater operational efficiency When reviewing this diagram demonstrate to the students how each department has its own database separate from all other organizational departments Ask your student what types of problems could occur if all departments maintain their own database and systems? Update issues Redundancy Inaccurate information across databases Different formats of information in the different databases Inability to access other department information and not being provided with a 360 degree view of the organization Different customer information in different databases Customer contact from multiple departments with different messages

15. The Heart of ERP ERP – bringing the organization together In most organizations, information has traditionally been isolated within specific departments, whether on an individual database, in a file cabinet, or on an employee’s PC. ERP enables employees across the organization to share information across a single, centralized database. With extended portal capabilities, an organization can also involve its suppliers and customers to participate in the workflow process, allowing ERP to penetrate the entire value chain, and help the organization achieve greater operational efficiency When discussing this slide be sure to explain to your students how one database that supports the entire organization could eliminate many of the issues discussed on the previous slide Ask your students what issues could be caused by having one database that supports the entire organization? Not as flexible and far more difficult to change Might not meet all department needs as well as an individual specific system Multiple access levels increases security issues Ethical dilemmas from accessing different department information – such as payroll In most organizations, information has traditionally been isolated within specific departments, whether on an individual database, in a file cabinet, or on an employee’s PC. ERP enables employees across the organization to share information across a single, centralized database. With extended portal capabilities, an organization can also involve its suppliers and customers to participate in the workflow process, allowing ERP to penetrate the entire value chain, and help the organization achieve greater operational efficiency When discussing this slide be sure to explain to your students how one database that supports the entire organization could eliminate many of the issues discussed on the previous slide Ask your students what issues could be caused by having one database that supports the entire organization? Not as flexible and far more difficult to change Might not meet all department needs as well as an individual specific system Multiple access levels increases security issues Ethical dilemmas from accessing different department information – such as payroll

16. The Evolution of ERP This is an excellent diagram that displays where ERP started and where it is headed Ask your students what components might be included in an ERP system in the future Second Life component Wiki component Collaboratio CLASSROOM EXERCISE Designing a Digital Dashboard for an ERP System Digital dashboards offer an effective and efficient way to view enterprisewide information at near real-time. According to Nucleus Research, there is a direct correlation between use of digital dashboards and a company’s’ return on investment (ROI), hence all executives should be using or pushing the development of digital dashboards to monitor and analyze organizational operations. Break your students into groups and ask them to develop a digital dashboard for an ERP system. Review the digital dashboards on page 98. Be sure your students have addressed all of the following in their digital dashboard: Accounting Finance Logistics Production Distribution Manufacturing Human resources SCM CRM n component (IM)This is an excellent diagram that displays where ERP started and where it is headed Ask your students what components might be included in an ERP system in the future Second Life component Wiki component Collaboratio CLASSROOM EXERCISE Designing a Digital Dashboard for an ERP System Digital dashboards offer an effective and efficient way to view enterprisewide information at near real-time. According to Nucleus Research, there is a direct correlation between use of digital dashboards and a company’s’ return on investment (ROI), hence all executives should be using or pushing the development of digital dashboards to monitor and analyze organizational operations. Break your students into groups and ask them to develop a digital dashboard for an ERP system. Review the digital dashboards on page 98. Be sure your students have addressed all of the following in their digital dashboard: Accounting Finance Logistics Production Distribution Manufacturing Human resources SCM CRM n component (IM)

17. 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 Review the Turner Industries example Turner Industries grew from $300 million in sales to $800 million in sales in less than 10 years thanks to the implementation of an ERP system. Ranked number 369 on the Forbes 500 list of privately held companies, Turner Industries is a leading industrial services firm. Turner Industries develops and deploys advanced software applications designed to maximize the productivity of its 25,000 employees and construction equipment valued at more than $100 million. Review the Turner Industries example Turner Industries grew from $300 million in sales to $800 million in sales in less than 10 years thanks to the implementation of an ERP system. Ranked number 369 on the Forbes 500 list of privately held companies, Turner Industries is a leading industrial services firm. Turner Industries develops and deploys advanced software applications designed to maximize the productivity of its 25,000 employees and construction equipment valued at more than $100 million.

18. Core and Extended ERP Components Core ERP components – traditional components included in most ERP systems and they primarily focus on internal operations Extended ERP components – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations CLASSROOM EXERCISE Analyzing ERP Components Break your students into groups and ask them to provide an analysis of Figure 10.14, the enterprise resource planning vendor components. Ask your students to analyze the different components and from this brief description rank the vendors from the vendor that offers the greatest business intelligence and strategic advantage to the vendor that offers the least business intelligence and strategic advantage.Core ERP components – traditional components included in most ERP systems and they primarily focus on internal operations Extended ERP components – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations CLASSROOM EXERCISE Analyzing ERP Components Break your students into groups and ask them to provide an analysis of Figure 10.14, the enterprise resource planning vendor components. Ask your students to analyze the different components and from this brief description rank the vendors from the vendor that offers the greatest business intelligence and strategic advantage to the vendor that offers the least business intelligence and strategic advantage.

19. CORE ERP COMPONENTS Three most common core ERP components Accounting and finance Production and materials management Human resource Accounting and finance components – manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management Production and materials management components – handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control Human resource components – track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities Accounting and finance components – manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management Production and materials management components – handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control Human resource components – track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities

20. 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 Discuss the Harley-Davidson example Deeley Harley-Davidson Canada (DHDC), the exclusive Canadian distributor of Harley-Davidson motorcycles, has improved inventory, turnaround time, margins, and customer satisfaction—all with the implementation of a financial ERP system. The system has opened up the power of information to the company and is helping it make strategic decisions when it still has the time to change things. The ERP system provides the company with ways to manage inventory, turnaround time, and utilize warehouse space more effectively. Credit-management feature set limits on how much a customer can owe at any time Product profitability analysis feature allows companies to perform all types of advanced profitability modeling techniques Discuss the Harley-Davidson example Deeley Harley-Davidson Canada (DHDC), the exclusive Canadian distributor of Harley-Davidson motorcycles, has improved inventory, turnaround time, margins, and customer satisfaction—all with the implementation of a financial ERP system. The system has opened up the power of information to the company and is helping it make strategic decisions when it still has the time to change things. The ERP system provides the company with ways to manage inventory, turnaround time, and utilize warehouse space more effectively. Credit-management feature set limits on how much a customer can owe at any time Product profitability analysis feature allows companies to perform all types of advanced profitability modeling techniques

21. 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 Discuss the Groupo Farmanova Intermed example Grupo Farmanova Intermed, located in Costa Rica, is a pharmaceutical marketing and distribution company that markets nearly 2,500 products to approximately 500 customers in Central and South America. The company identified a need for software that could unify product logistics management in a single country. It decided to deploy PeopleSoft financial and distribution ERP components allowing the company to improve customer data management, increase confidence among internal and external users, and coordinate the logistics of inventory. With the new PeopleSoft software the company enhanced its capabilities for handling, distributing, and marketing its pharmaceuticals. Discuss the Groupo Farmanova Intermed example Grupo Farmanova Intermed, located in Costa Rica, is a pharmaceutical marketing and distribution company that markets nearly 2,500 products to approximately 500 customers in Central and South America. The company identified a need for software that could unify product logistics management in a single country. It decided to deploy PeopleSoft financial and distribution ERP components allowing the company to improve customer data management, increase confidence among internal and external users, and coordinate the logistics of inventory. With the new PeopleSoft software the company enhanced its capabilities for handling, distributing, and marketing its pharmaceuticals.

22. 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 Features include the ability to perform a detailed employee analysis to discover who is likely to leave the company unless additional compensation or benefits are provided Can also identify employee resource utilization such as employee long distance bills and online training Features include the ability to perform a detailed employee analysis to discover who is likely to leave the company unless additional compensation or benefits are provided Can also identify employee resource utilization such as employee long distance bills and online training

23. EXTENDED ERP COMPONENTS Extended ERP components include: Business intelligence Customer relationship management Supply chain management E-business - components include: Elogistics Eprocurement Depending on when you cover this material, these terms may or may not need to be reviewed (since the students have already learned about BI, CRM, and SCM) If you do want to review – simply cut and paste the definitions into the slide above Business intelligence – describes information that people use to support their decision-making efforts Customer relationship management – involves managing all aspects of a customer’s relationships with an organization to increase customer loyalty and retention and an organization's profitability Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability Ebusiness – means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners The original focus of ERP systems was the internal organization In other words, ERP systems are not fundamentally ready for the external world of e-business The newest and most exciting extended ERP components are the e-business components e-logistics and e-procurement Elogistics – manages the transportation and storage of goods Eprocurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet Depending on when you cover this material, these terms may or may not need to be reviewed (since the students have already learned about BI, CRM, and SCM) If you do want to review – simply cut and paste the definitions into the slide above Business intelligence – describes information that people use to support their decision-making efforts Customer relationship management – involves managing all aspects of a customer’s relationships with an organization to increase customer loyalty and retention and an organization's profitability Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability Ebusiness – means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners The original focus of ERP systems was the internal organization In other words, ERP systems are not fundamentally ready for the external world of e-business The newest and most exciting extended ERP components are the e-business components e-logistics and e-procurement Elogistics – manages the transportation and storage of goods Eprocurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet

24. 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 It might be a bit confusing to your student that many ERP vendors offer SCM and CRM components Explain to your students that these modules are typically not as functional or flexible as the modules offered by industry leaders who specialize in SCM and CRM A good analogy is to brand-name foods at a grocery store A grocery store, such as Safeway, maintains all types of products Safeway offers its own products, such as Safeway’s spaghetti sauce and Safeway’s paper towels, (these are known as name brand products and usually offer a cost advantage) The store also carries products that are specific to a manufacturer, such as Ragu’s spaghetti sauce and Bounty’s paper towels Customers can choose to buy Safeway’s product (this is similar to product supplied by the ERP), or customers can choose to buy a specialty product that is usually more expensive but offers better quality, additional features, and better taste (such as Ragu) Explain to your students that ERP vendors carry SCM and CRM components, but they are usually not as good as the vendors that specialize in SCM and CRM components (Siebel CRM, i2 SCM) It might be a bit confusing to your student that many ERP vendors offer SCM and CRM components Explain to your students that these modules are typically not as functional or flexible as the modules offered by industry leaders who specialize in SCM and CRM A good analogy is to brand-name foods at a grocery store A grocery store, such as Safeway, maintains all types of products Safeway offers its own products, such as Safeway’s spaghetti sauce and Safeway’s paper towels, (these are known as name brand products and usually offer a cost advantage) The store also carries products that are specific to a manufacturer, such as Ragu’s spaghetti sauce and Bounty’s paper towels Customers can choose to buy Safeway’s product (this is similar to product supplied by the ERP), or customers can choose to buy a specialty product that is usually more expensive but offers better quality, additional features, and better taste (such as Ragu) Explain to your students that ERP vendors carry SCM and CRM components, but they are usually not as good as the vendors that specialize in SCM and CRM components (Siebel CRM, i2 SCM)

25. INTEGRATING SCM, CRM, AND ERP SCM and CRM market overviews The leaders and their respective market share are displayed in the above figures The leaders and their respective market share are displayed in the above figures

26. INTEGRATING SCM, CRM, AND ERP General audience and purpose of SCM, CRM and ERP This figure displays the primary users of each application along with the primary business benefit gainedThis figure displays the primary users of each application along with the primary business benefit gained

27. 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 Enterprise application integration (EAI) middleware One of the big selling points of an ERP or SCM system can be the EAI that is offered to easily integrate with other vendors’ modules For example, if a company is looking at purchasing Siebel CRM and they find out the Siebel has already built many integrations to PeopleSoft financials, it would be more inclined to purchase the product 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 One of the big selling points of an ERP or SCM system can be the EAI that is offered to easily integrate with other vendors’ modules For example, if a company is looking at purchasing Siebel CRM and they find out the Siebel has already built many integrations to PeopleSoft financials, it would be more inclined to purchase the product 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

28. Integration Tools Data points where SCM, CRM, and ERP integrate Companies run on interdependent applications If one application of the company does not function well, the entire customer value delivery system is affected The world-class enterprises of tomorrow must be built on the function of world-class applications implemented today CLASSROOM EXERCISE Designing a Digital Dashboard for an ERP System Digital dashboards offer an effective and efficient way to view enterprisewide information at near real-time. According to Nucleus Research, there is a direct correlation between use of digital dashboards and a company’s’ return on investment (ROI), hence all executives should be using or pushing the development of digital dashboards to monitor and analyze organizational operations. Break your students into groups and ask them to develop a digital dashboard for an ERP system. Review the digital dashboards on page 98. Be sure your students have addressed all of the following in their digital dashboard: Accounting Finance Logistics Production Distribution Manufacturing Human resources SCM CRM Companies run on interdependent applications If one application of the company does not function well, the entire customer value delivery system is affected The world-class enterprises of tomorrow must be built on the function of world-class applications implemented today CLASSROOM EXERCISE Designing a Digital Dashboard for an ERP System Digital dashboards offer an effective and efficient way to view enterprisewide information at near real-time. According to Nucleus Research, there is a direct correlation between use of digital dashboards and a company’s’ return on investment (ROI), hence all executives should be using or pushing the development of digital dashboards to monitor and analyze organizational operations. Break your students into groups and ask them to develop a digital dashboard for an ERP system. Review the digital dashboards on page 98. Be sure your students have addressed all of the following in their digital dashboard: Accounting Finance Logistics Production Distribution Manufacturing Human resources SCM CRM

29. MEASURING ERP SUCCESS Balanced scorecard – enables organizations to clarify their vision and strategy and translate them into action Balanced scorecard views the organization from four perspectives Learning and growth Internal business process Customer Financial The value of metrics is in their ability to provide a factual basis for defining: Strategic feedback to show the present status of the organization from many perspectives for decision makers. Diagnostic feedback into various processes to guide improvements on a continuous basis. Trends in performance over time as the metrics are tracked. Feedback around the measurement methods themselves and which metrics should be tracked. Quantitative inputs to forecasting methods and models for decision support systemsThe value of metrics is in their ability to provide a factual basis for defining: Strategic feedback to show the present status of the organization from many perspectives for decision makers. Diagnostic feedback into various processes to guide improvements on a continuous basis. Trends in performance over time as the metrics are tracked. Feedback around the measurement methods themselves and which metrics should be tracked. Quantitative inputs to forecasting methods and models for decision support systems

30. MEASURING ERP SUCCESS The balanced scorecard is a management system, (in addition to a measurement system), that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise The balanced scorecard views the organization from four perspectives, and users should develop metrics, collect data, and analyze their business relative to each of these perspectives: The learning and growth perspective. The internal business process perspective. The customer perspective. The financial perspective The balanced scorecard is a management system, (in addition to a measurement system), that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise The balanced scorecard views the organization from four perspectives, and users should develop metrics, collect data, and analyze their business relative to each of these perspectives: The learning and growth perspective. The internal business process perspective. The customer perspective. The financial perspective

31. CHOOSING ERP SOFTWARE Successful ERP projects share 3 attributes Overall fit Off the rack Off the rack and tailored to fit Custom made Proper business analysis Successful companies spend up to 10 percent of the project budget on a business analysis Solid implementation plans A plan is needed to monitor the quality, objectives, and timelines Overall fit This refers to the degree of gaps that exist between the system and the business process. A well-fitting ERP has no major process gaps and very few minor ones Proper business analysis The best way to determine which fit strategy is right is to conduct a thorough business analysis. Successful companies normally spend up to 10 percent of the project budget on a business analysis. A proper analysis must result in a documented list of the business processes at work within the company. This will provide a basic tool that can measure vendor capability. Solid implementation plans As with the installation of any successful process or machinery, a plan is needed to monitor the quality, objectives, and timelines. The plan will also employ processes such as workflow analysis and job combination to harvest savings. A thorough implementation will transfer knowledge to system users. When the project is complete, employees must be capable of using the tools the new system provides. The users must also know what to do in cases when the process fluctuates. Most failed systems result from poor quality implementation. ERP is simply a tool Tools that people do not know how to use can be as useless as having no tools at all Which of the three basic attributes is most important when considering an ERP purchase? All are important, depending on the project the level of importance might changeOverall fit This refers to the degree of gaps that exist between the system and the business process. A well-fitting ERP has no major process gaps and very few minor ones Proper business analysis The best way to determine which fit strategy is right is to conduct a thorough business analysis. Successful companies normally spend up to 10 percent of the project budget on a business analysis. A proper analysis must result in a documented list of the business processes at work within the company. This will provide a basic tool that can measure vendor capability. Solid implementation plans As with the installation of any successful process or machinery, a plan is needed to monitor the quality, objectives, and timelines. The plan will also employ processes such as workflow analysis and job combination to harvest savings. A thorough implementation will transfer knowledge to system users. When the project is complete, employees must be capable of using the tools the new system provides. The users must also know what to do in cases when the process fluctuates. Most failed systems result from poor quality implementation. ERP is simply a tool Tools that people do not know how to use can be as useless as having no tools at all Which of the three basic attributes is most important when considering an ERP purchase? All are important, depending on the project the level of importance might change

32. OPENING CASE QUESTIONSCampus ERP How could core ERP components help improve business operations at your college? How could extended ERP components help improve business operations at your college? How can integrating SCM, CRM, and ERP help improve business operations at your college? 1. How could core ERP components help improve business operations at your college? Core ERP components include the traditional components included in most ERP systems and they primarily focus on internal operations. Student answers to this question will vary. The important part of their answer will be their justification for why the ERP components will help improve business operations at your college. 2. How could extended ERP components help improve business operations at your college? Extended ERP components include the extra components that meet the organizational needs not covered by the core components and primarily focus on external operations. Business intelligence – describes information that people use to support their decision-making efforts Customer relationship management – involves managing all aspects of a customer’s relationships with an organization to increase customer loyalty and retention and an organization's profitability Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability E-business – means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners Student answers to this question will vary. The important part of their answer will be their justification for why the component will add value to your college. 3. How can integrating SCM, CRM, and ERP help improve business operations at your college? Most organizations piecemeal their applications together since no one vendor can respond to every organization’s needs; hence, customers purchase multiple applications from multiple vendors. For example, a single organization might choose its CRM components from Siebel, SCM from i2, financial from Oracle, and human resources from PeopleSoft. These applications must be integrated in order to gain an enterprisewide view of the information. Integrating SCM, CRM, and ERP will give a 360 degree view of information. Being able to see all student, supplier, partner, etc. information in a single place will help the university operate more efficiently and effectively.1. How could core ERP components help improve business operations at your college? Core ERP components include the traditional components included in most ERP systems and they primarily focus on internal operations. Student answers to this question will vary. The important part of their answer will be their justification for why the ERP components will help improve business operations at your college. 2. How could extended ERP components help improve business operations at your college? Extended ERP components include the extra components that meet the organizational needs not covered by the core components and primarily focus on external operations. Business intelligence – describes information that people use to support their decision-making efforts Customer relationship management – involves managing all aspects of a customer’s relationships with an organization to increase customer loyalty and retention and an organization's profitability Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability E-business – means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners Student answers to this question will vary. The important part of their answer will be their justification for why the component will add value to your college. 3. How can integrating SCM, CRM, and ERP help improve business operations at your college? Most organizations piecemeal their applications together since no one vendor can respond to every organization’s needs; hence, customers purchase multiple applications from multiple vendors. For example, a single organization might choose its CRM components from Siebel, SCM from i2, financial from Oracle, and human resources from PeopleSoft. These applications must be integrated in order to gain an enterprisewide view of the information. Integrating SCM, CRM, and ERP will give a 360 degree view of information. Being able to see all student, supplier, partner, etc. information in a single place will help the university operate more efficiently and effectively.

33. SECTION 10.2 COLLABORATION SYSTEMS CLASSROOM OPENER GREAT BUSINESS DECISIONS – Swiss Watch Manufacturers Begin Collaborating and Invent the Swatch The Swatch is a classic tale of triumph over adversity. The Swiss watch making industry’s market share declined from 30 percent to 9 percent during the 1970s. The leading Swiss watch manufacturers decided to join and collaborate thinking it would be better to go down together in a blaze of glory than to timidly surrender in isolation to the diminishing watch market. Ernst Thomke, president of the group and Jacques Muller, chief engineer, came up with the idea to design a low-cost version of the Delirium, the world’s slimmest watch. Thomke developed the technical specifications of the original Swatch, as well as the all-important marketing and advertising ideas. The Swatch was based on the simple premise that the watch could become a disposable or replaceable fashion item. This collaborative product was the make-or-break response to cheap watch competition and almost overnight, the dormant Swiss watch industry was revived. The Swatch became a fashion accessory and the Swiss share of the worldwide watch market rose to over 50 percent. CLASSROOM VIDEO The Machine is Us/Using Us Excellent video to introduce collaboration http://www.youtube.com/watch?v=NLlGopyXT_g   CLASSROOM OPENER GREAT BUSINESS DECISIONS – Swiss Watch Manufacturers Begin Collaborating and Invent the Swatch The Swatch is a classic tale of triumph over adversity. The Swiss watch making industry’s market share declined from 30 percent to 9 percent during the 1970s. The leading Swiss watch manufacturers decided to join and collaborate thinking it would be better to go down together in a blaze of glory than to timidly surrender in isolation to the diminishing watch market. Ernst Thomke, president of the group and Jacques Muller, chief engineer, came up with the idea to design a low-cost version of the Delirium, the world’s slimmest watch. Thomke developed the technical specifications of the original Swatch, as well as the all-important marketing and advertising ideas. The Swatch was based on the simple premise that the watch could become a disposable or replaceable fashion item. This collaborative product was the make-or-break response to cheap watch competition and almost overnight, the dormant Swiss watch industry was revived. The Swatch became a fashion accessory and the Swiss share of the worldwide watch market rose to over 50 percent. CLASSROOM VIDEO The Machine is Us/Using Us Excellent video to introduce collaboration http://www.youtube.com/watch?v=NLlGopyXT_g  

34. LEARNING OUTCOMES Identify the different ways in which companies collaborate using technology Compare the different categories of collaboration technologies Define the fundamental concepts of a knowledge management system 10.6 Identify the different ways in which companies collaborate using technology. Companies must be able to collaborate. Without collaboration companies simply would have a very difficult time operating. Companies collaborate in a number of ways including document ex­change, shared whiteboards, discussion forums, and e-mail 10.7 Compare the different categories of collaboration technologies. Collaboration technologies fall into one of two categories: Unstructured collaboration (sometimes referred to as information collaboration) includes document ex­change, shared whiteboards, discussion forums, and e-mail Structured collaboration (or process collaboration) involves shared participation in business processes such as workflow in which knowledge is hardcoded as rules 10.8 Define the fundamental concepts of a knowledge management system. Knowledge management involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions. 10.6 Identify the different ways in which companies collaborate using technology. Companies must be able to collaborate. Without collaboration companies simply would have a very difficult time operating. Companies collaborate in a number of ways including document ex­change, shared whiteboards, discussion forums, and e-mail 10.7 Compare the different categories of collaboration technologies. Collaboration technologies fall into one of two categories: Unstructured collaboration (sometimes referred to as information collaboration) includes document ex­change, shared whiteboards, discussion forums, and e-mail Structured collaboration (or process collaboration) involves shared participation in business processes such as workflow in which knowledge is hardcoded as rules 10.8 Define the fundamental concepts of a knowledge management system. Knowledge management involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions.

35. LEARNING OUTCOMES Provide an examples of a content management system along with its business purpose Evaluate the advantages of using a workflow management system Explain how groupware can benefit a business 10.9 Provide an examples of a content management system along with its business purpose. A content management system (CMS) provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment. The CMS marketplace is complex, incorporating document management, collaboration and versioning tools, digital asset management, and Web content management. One example is www.vignette.com. 10.10 Evaluate the advantages of using a workflow management system. Many workflow management systems allow the opportunity to measure and analyze the execution of a process. Workflow systems integrate with other organizational systems, such as document management systems and database management systems. 10.11 Explain how groupware can benefit a business. Groupware is software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing. Organizations can use this technology to communicate, cooperate, coordinate, solve problems, compete, or negotiate.10.9 Provide an examples of a content management system along with its business purpose. A content management system (CMS) provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment. The CMS marketplace is complex, incorporating document management, collaboration and versioning tools, digital asset management, and Web content management. One example is www.vignette.com. 10.10 Evaluate the advantages of using a workflow management system. Many workflow management systems allow the opportunity to measure and analyze the execution of a process. Workflow systems integrate with other organizational systems, such as document management systems and database management systems. 10.11 Explain how groupware can benefit a business. Groupware is software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing. Organizations can use this technology to communicate, cooperate, coordinate, solve problems, compete, or negotiate.

36. 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 It is getting harder and harder for any one individual to perform organizational activities in isolation Ask your students to list types of organizational activities that are performed by individuals Ans: For the most part, almost all organizational activities are performed in teams. For example, a customer service representative usually needs to talk with many coworkers to discover customer issues and problem resolution A marketing executive will need to work with sales representatives to determine what is “hot” in the market, what is selling, and what issues/complaints customers have before launching a new product The majority of work today is performed in groups and teams These teams can be departmental, interdepartmental, cross-functional, internal, and external CLASSROOM EXERCISE Bad Bosses Collaboration This is an interesting Web site with war stories on bad bosses. http://www.workingamerica.org/badboss/ Great example of the power of collaboration! It is getting harder and harder for any one individual to perform organizational activities in isolation Ask your students to list types of organizational activities that are performed by individuals Ans: For the most part, almost all organizational activities are performed in teams. For example, a customer service representative usually needs to talk with many coworkers to discover customer issues and problem resolution A marketing executive will need to work with sales representatives to determine what is “hot” in the market, what is selling, and what issues/complaints customers have before launching a new product The majority of work today is performed in groups and teams These teams can be departmental, interdepartmental, cross-functional, internal, and external CLASSROOM EXERCISE Bad Bosses Collaboration This is an interesting Web site with war stories on bad bosses. http://www.workingamerica.org/badboss/ Great example of the power of collaboration!

37. TEAMS, PARTNERSHIPS, AND ALLIANCES Collaboration system – supports the work of teams by facilitating the sharing and flow of information Collaboration systems, such as groupware, enable, support, and facilitate internal and external team collaboration This is a good time to mention the importance of people skills, or soft skills, in additional to business knowledge. Your students should anticipate working with many coworkers from different areas of the business when solving issues or finding opportunities. Building soft skills is just as important as building analytical skills. Successful people rarely work in isolation. Collaboration with an iPod – Team adds iPods to coaching staff http://www.cnn.com/2006/TECH/06/16/ipod.homework.ap/index.html Collaboration systems, such as groupware, enable, support, and facilitate internal and external team collaboration This is a good time to mention the importance of people skills, or soft skills, in additional to business knowledge. Your students should anticipate working with many coworkers from different areas of the business when solving issues or finding opportunities. Building soft skills is just as important as building analytical skills. Successful people rarely work in isolation. Collaboration with an iPod – Team adds iPods to coaching staff http://www.cnn.com/2006/TECH/06/16/ipod.homework.ap/index.html

38. TEAMS, PARTNERSHIPS, AND ALLIANCES Organizations form alliances and partnerships with other organizations based on their core competency Core competency Core competency strategy 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 It is just as important for an organization to form teams, partnerships, and alliances with other organizations An organization that uses a core competency strategy will focus on its core competency and form partnerships with other organizations to handle nonstrategic business processes The most common example of this is outsourcing payroll or accounting functions Many organizations want to focus on the marketing and selling of a unique product or service. These organizations do not want to incur the expense of maintaining accounting or tax experts on staff, hence they will outsource these functions to a business partner This is a great time to refer back to the opening case Discuss how Levi’s core competency is brand-name differentiation and recognition, while Wal-Mart’s core competency is retail cost leadership The partnership between these two organizations enables cost-leadership selling of a widely recognized brand name 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 It is just as important for an organization to form teams, partnerships, and alliances with other organizations An organization that uses a core competency strategy will focus on its core competency and form partnerships with other organizations to handle nonstrategic business processes The most common example of this is outsourcing payroll or accounting functions Many organizations want to focus on the marketing and selling of a unique product or service. These organizations do not want to incur the expense of maintaining accounting or tax experts on staff, hence they will outsource these functions to a business partner This is a great time to refer back to the opening case Discuss how Levi’s core competency is brand-name differentiation and recognition, while Wal-Mart’s core competency is retail cost leadership The partnership between these two organizations enables cost-leadership selling of a widely recognized brand name

39. TEAMS, PARTNERSHIPS, AND ALLIANCES Information technology can make a business partnership easier to establish and manage Information partnership The Internet has dramatically increased the ease and availability for IT-enabled organizational alliances and partnerships 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 Provide a few examples of how the Internet has enabled information partnerships? A good example is Amazon.com The company developed a profitable business segment by providing e-business outsourcing services to other retailers who use Amazon’s Web site software Retailers partnering with Amazon.com include Marshall Fields, Office Depot, and TargetInformation partnership – occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer Provide a few examples of how the Internet has enabled information partnerships? A good example is Amazon.com The company developed a profitable business segment by providing e-business outsourcing services to other retailers who use Amazon’s Web site software Retailers partnering with Amazon.com include Marshall Fields, Office Depot, and Target

40. COLLABORATION SYSTEMS Collaboration system – an IT-based set of tools that supports the work of teams by facilitating the sharing and flow of Information Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management Collaboration allows people, teams, and organizations to leverage and build upon the ideas and talents of staff, suppliers, customers, and business partners It involves a unique set of business challenges that: Include complex interactions between people who may be in different locations and desire to work across function and discipline areas Require flexibility in work process and the ability to involve others quickly and easily Create and share information rapidly and effortlessly within a team Increasingly, organizations are extending their focus from internal operations like planning and scheduling, enterprise resource planning and sales force automation, toward operations beyond their own four walls with external customers and suppliers This chapter focuses on the need for collaboration, the technology that supports collaboration, and collaboration trendsCollaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management Collaboration allows people, teams, and organizations to leverage and build upon the ideas and talents of staff, suppliers, customers, and business partners It involves a unique set of business challenges that: Include complex interactions between people who may be in different locations and desire to work across function and discipline areas Require flexibility in work process and the ability to involve others quickly and easily Create and share information rapidly and effortlessly within a team Increasingly, organizations are extending their focus from internal operations like planning and scheduling, enterprise resource planning and sales force automation, toward operations beyond their own four walls with external customers and suppliers This chapter focuses on the need for collaboration, the technology that supports collaboration, and collaboration trends

41. COLLABORATION SYSTEMS Two categories of collaboration Unstructured collaboration (information collaboration) - includes document exchange, shared whiteboards, discussion forums, and e-mail Structured collaboration (process collaboration) - involves shared participation in business processes such as workflow in which knowledge is hardcoded as rules Lockheed Martin Aeronautics Company shares complex project information across an extended supply chain in real time and successfully bid a $19 billion DoD contract to build 21 supersonic stealth fighters Regardless of location or format – be it unstructured or structured - relevant accurate information must be readily and consistently available to those who need it – anytime, anywhere, and on any deviceLockheed Martin Aeronautics Company shares complex project information across an extended supply chain in real time and successfully bid a $19 billion DoD contract to build 21 supersonic stealth fighters Regardless of location or format – be it unstructured or structured - relevant accurate information must be readily and consistently available to those who need it – anytime, anywhere, and on any device

42. COLLABORATION SYSTEMS Collaborative business functions The above figure illustrates many of the typical collaborative functions within most organizations For those of you who are big fans of wikipedia, here is an interesting comedic segment from the 'Colbert Report' on wikipedia.  This video clip comes from youtube.com and lasts about 4 minutes. You might find this useful to share with your students regarding the need to critically evaluate information. http://www.youtube.com/watch?v=2TaFYOUca_8&mode=related&search The above figure illustrates many of the typical collaborative functions within most organizations For those of you who are big fans of wikipedia, here is an interesting comedic segment from the 'Colbert Report' on wikipedia.  This video clip comes from youtube.com and lasts about 4 minutes. You might find this useful to share with your students regarding the need to critically evaluate information. http://www.youtube.com/watch?v=2TaFYOUca_8&mode=related&search

43. COLLABORATION SYSTEMS Collaboration systems include: Knowledge management systems Content management systems Workflow management systems Groupware systems Knowledge management system – supports the capturing and use of an organization’s “know-how” Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment Workflow management system – controls the movement of work through a business process Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing CLASSROOM VIDEO Wikipedia – Colbert Report For those of you who are big fans of wikipedia, here is an interesting comedic segment from the 'Colbert Report' on wikipedia. This video clip comes from youtube.com and lasts about 4 minutes. You might find this useful to share with your students regarding the need to critically evaluate information. This link works - straight from comedy central.  http://www.comedycentral.com/motherload/player.jhtml?ml_video=72347&ml_collection=&ml_gateway=&ml_gateway_id=&ml_comedian=&ml_runtime=&ml_context=show&ml_origin_url=/shows/t Another great clip on using Wikipedia for lobbying.  http://www.comedycentral.com/motherload/player.jhtml?ml_video=81454&ml_collection=&ml_gateway=&ml_gateway_id=&ml_comedian=&ml_runtime=&ml_context=show&ml_origin_url= Knowledge management system – supports the capturing and use of an organization’s “know-how” Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment Workflow management system – controls the movement of work through a business process Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing CLASSROOM VIDEO Wikipedia – Colbert Report For those of you who are big fans of wikipedia, here is an interesting comedic segment from the 'Colbert Report' on wikipedia. This video clip comes from youtube.com and lasts about 4 minutes. You might find this useful to share with your students regarding the need to critically evaluate information. This link works - straight from comedy central.  http://www.comedycentral.com/motherload/player.jhtml?ml_video=72347&ml_collection=&ml_gateway=&ml_gateway_id=&ml_comedian=&ml_runtime=&ml_context=show&ml_origin_url=/shows/t Another great clip on using Wikipedia for lobbying.  http://www.comedycentral.com/motherload/player.jhtml?ml_video=81454&ml_collection=&ml_gateway=&ml_gateway_id=&ml_comedian=&ml_runtime=&ml_context=show&ml_origin_url=

44. KNOWLEDGE MANAGEMENT SYSTEMS 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” Why is knowledge one of the real competitive advantages? It is difficult to duplicate knowledge It can take years to acquire It is a personal asset What if an organization could capture all of a persons knowledge using technology? You would no longer need that person in the organization Why is knowledge one of the real competitive advantages? It is difficult to duplicate knowledge It can take years to acquire It is a personal asset What if an organization could capture all of a persons knowledge using technology? You would no longer need that person in the organization

45. Explicit and Tacit Knowledge Intellectual and knowledge-based assets fall into two categories Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the help of IT Tacit knowledge - knowledge contained in people’s heads Identify two types of explicit knowledge and tacit knowledge Explicit knowledge – payroll information, customer address, student grades, faculty courses taught Tacit knowledge – how to perform a process, how to perform an activity, how you feel about somethingIdentify two types of explicit knowledge and tacit knowledge Explicit knowledge – payroll information, customer address, student grades, faculty courses taught Tacit knowledge – how to perform a process, how to perform an activity, how you feel about something

46. 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 The difference between shadowing and joint problem solving is that shadowing is more passive Joint problem solving allows the expert and the novice to work hand-in-hand on a task Why would shadowing be appropriate? When would joint-problem solving be appropriate?The difference between shadowing and joint problem solving is that shadowing is more passive Joint problem solving allows the expert and the novice to work hand-in-hand on a task Why would shadowing be appropriate? When would joint-problem solving be appropriate?

47. Explicit and Tacit Knowledge Reasons why organizations launch knowledge management programs What types of knowledge management programs could your college pursue to help new students adapt to the college? Effective study habits Writing rules Research database Course evaluationsWhat types of knowledge management programs could your college pursue to help new students adapt to the college? Effective study habits Writing rules Research database Course evaluations

48. KM Technologies Knowledge management systems include: Knowledge repositories (databases) Expertise tools E-learning applications Discussion and chat technologies Search and data mining tools KM is not a purely technology-based concept Organizations that implement a centralized database system, electronic message board, Web portal, or any other collaborative tool in the hope that they have established a KMS are wasting both their time and money KM is not a purely technology-based concept Organizations that implement a centralized database system, electronic message board, Web portal, or any other collaborative tool in the hope that they have established a KMS are wasting both their time and money

49. 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 How could you use SNA at your college? Finding internships Finding group members Finding jobs CLASSROOM MUSIC Colbie Caillat If you notice your students falling asleep try playing Bubbly or The Little Things by Colbie Caillat directly from her MySpace page.   http://www.myspace.com/colbiecaillat After posting her song Bubbly to her MySpace, Caillat received over 31 million downloads and quickly become the number-one unsigned singer in her genre for four months. According to her MySpace profile, Caillat was first inspired to start singing at age eleven when she first heard the Fugees' 1996 version of the song "Killing Me Softly", made famous by Roberta Flack in 1973. Her MySpace profile also cites that, though trained at piano from an early age, Caillat did not begin playing guitar until age nineteen.Just ask your students how would Caillat have entered the music business 10 years ago?How else can students use MySpace to start playing in the business arena - music is big business!!http://www.myspace.com/colbiecaillat  How could you use SNA at your college? Finding internships Finding group members Finding jobs CLASSROOM MUSIC Colbie Caillat If you notice your students falling asleep try playing Bubbly or The Little Things by Colbie Caillat directly from her MySpace page.   http://www.myspace.com/colbiecaillat After posting her song Bubbly to her MySpace, Caillat received over 31 million downloads and quickly become the number-one unsigned singer in her genre for four months. According to her MySpace profile, Caillat was first inspired to start singing at age eleven when she first heard the Fugees' 1996 version of the song "Killing Me Softly", made famous by Roberta Flack in 1973. Her MySpace profile also cites that, though trained at piano from an early age, Caillat did not begin playing guitar until age nineteen.Just ask your students how would Caillat have entered the music business 10 years ago?How else can students use MySpace to start playing in the business arena - music is big business!!http://www.myspace.com/colbiecaillat 

50. 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) BMW Group Switzerland accelerated personalized, real-time information about products, services, prices, and events to its dealers countrywide BMW uses a process that allows dealers to specify what information is seen by which employee, as well as to deliver marketing materials solely to members of the sales department, and technical specifications and support documents only to mechanics The enhanced personalization eliminates the chance that information is sent to the wrong dealership or to the wrong individual, which provides higher quality customer services Document management system (DMS) – supports the electronic capturing, storage, distribution, archival, and accessing of documents Digital asset management system (DAM) – similar to DMS, generally works with binary rather than text files, such as multimedia files types Web content management system (WCM) – adds an additional layer to document and digital asset management that enables publishing content both to intranets and to public Web sitesBMW Group Switzerland accelerated personalized, real-time information about products, services, prices, and events to its dealers countrywide BMW uses a process that allows dealers to specify what information is seen by which employee, as well as to deliver marketing materials solely to members of the sales department, and technical specifications and support documents only to mechanics The enhanced personalization eliminates the chance that information is sent to the wrong dealership or to the wrong individual, which provides higher quality customer services Document management system (DMS) – supports the electronic capturing, storage, distribution, archival, and accessing of documents Digital asset management system (DAM) – similar to DMS, generally works with binary rather than text files, such as multimedia files types Web content management system (WCM) – adds an additional layer to document and digital asset management that enables publishing content both to intranets and to public Web sites

51. CONTENT MANAGEMENT SYSTEMS Content management system vendor overview

52. WORKING WIKIS Wikis - Web-based tools that make it easy for users to add, remove, and change online content Business wikis - collaborative Web pages that allow users to edit documents, share ideas, or monitor the status of a project Wikis are Web-based tools that make it easy for users to add, remove, and change online content Business wikis are collaborative Web pages that allow users to edit documents, share ideas, or monitor the status of a project. Most people are familiar with Wikipedia, one of the largest online collaboration Web sites. Employees also use wikis to collaborate; for example, companies such as Intel, Motorola, IBM, and Sony use them for a host of tasks, from setting internal meeting agendas to posting documents related to new products. Many companies rely on wikis to engage customers in ongoing discussions about products. Wikis for Motorola and T-Mobile handsets serve as continually updated user guides. TV networks including ABC and CBS are creating fan wikis that let viewers interact with each other as they unravel mysteries from such shows as Lost and CSI: Crime Scene Investigation Wikis are Web-based tools that make it easy for users to add, remove, and change online content Business wikis are collaborative Web pages that allow users to edit documents, share ideas, or monitor the status of a project. Most people are familiar with Wikipedia, one of the largest online collaboration Web sites. Employees also use wikis to collaborate; for example, companies such as Intel, Motorola, IBM, and Sony use them for a host of tasks, from setting internal meeting agendas to posting documents related to new products. Many companies rely on wikis to engage customers in ongoing discussions about products. Wikis for Motorola and T-Mobile handsets serve as continually updated user guides. TV networks including ABC and CBS are creating fan wikis that let viewers interact with each other as they unravel mysteries from such shows as Lost and CSI: Crime Scene Investigation

53. 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 NYC was experiencing a record number of claims, ranging from injuries resulting from slips on sidewalks to medical malpractice at hospitals NYC processes over 30,000 claims and incurs $250 million in claims costs annually NYC implemented a workflow management tool to process contracts and claims The system saved NYC $20 million Many workflow management systems allow the opportunity to measure and analyze the execution of the process NYC was experiencing a record number of claims, ranging from injuries resulting from slips on sidewalks to medical malpractice at hospitals NYC processes over 30,000 claims and incurs $250 million in claims costs annually NYC implemented a workflow management tool to process contracts and claims The system saved NYC $20 million Many workflow management systems allow the opportunity to measure and analyze the execution of the process

54. WORKFLOW MANAGEMENT SYSTEMS Messaging-based workflow system – sends work assignments through an e-mail 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 How could you use a messaging-based workflow system or database-based workflow system to complete a group project? Messaging-based workflow system would send an e-mail to each group member when it was their turn to edit the document. The student would then be responsible for finding the document to edit. Database-based workflow system would ask the student to edit the document, and supply the document to the student. Review the figure for workflow management system features and discuss how each feature could be used to complete a group project How could you use a messaging-based workflow system or database-based workflow system to complete a group project? Messaging-based workflow system would send an e-mail to each group member when it was their turn to edit the document. The student would then be responsible for finding the document to edit. Database-based workflow system would ask the student to edit the document, and supply the document to the student. Review the figure for workflow management system features and discuss how each feature could be used to complete a group project

55. GROUPWARE SYSTEMS Groupware – supports team interactions Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing CLASSROOM EXERCISE Process of Collaboration Collaboration is always operating through certain group processes — processes of communication, coordination, cooperation, but also information sharing. Split students up into four groups, each representing the processes above. Have each group make a list of the collaborative technologies differentiated by the collaboration processes they support. These processes do not work independently of one another but are usually intermingled and determined by each other. True collaboration tools will try to provide help for all those collaboration processes, but their main focus is mostly on one of these areas. Review the IM for potential answersGroupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing CLASSROOM EXERCISE Process of Collaboration Collaboration is always operating through certain group processes — processes of communication, coordination, cooperation, but also information sharing. Split students up into four groups, each representing the processes above. Have each group make a list of the collaborative technologies differentiated by the collaboration processes they support. These processes do not work independently of one another but are usually intermingled and determined by each other. True collaboration tools will try to provide help for all those collaboration processes, but their main focus is mostly on one of these areas. Review the IM for potential answers

56. GROUPWARE SYSTEMS Lotus Notes and Toyota developed an intranet system to promote information sharing within the company and to raise productivity Groupware falls into two categories: Users of the groupware are working together at the same time or different times (time difference) Users are working together in the same place or in different places (physical location difference) Which is easier to overcome? Why? Lotus Notes and Toyota developed an intranet system to promote information sharing within the company and to raise productivity Groupware falls into two categories: Users of the groupware are working together at the same time or different times (time difference) Users are working together in the same place or in different places (physical location difference) Which is easier to overcome? Why?

57. Videoconferencing Videoconference - a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously videoconference is a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously. It has also been called visual collaboration and is a type of groupware. Videoconferencing uses telecommunications of audio and video to bring people at different sites together for a meeting. This can be as simple as a conversation between two people in private offices (point-to-point) or involve several sites (multi-point) with more than one person in large rooms at different sites. Besides the audio and visual transmission of people, videoconferencing can be used to share documents, computer-displayed information, and whiteboards Ask your students what are the business advantages of videoconferencing? What industries are at risk because of videoconference? Airlines, hotels, rental cars (all businesses used in business travel which becomes nonexistent with the use of videoconferencing) videoconference is a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously. It has also been called visual collaboration and is a type of groupware. Videoconferencing uses telecommunications of audio and video to bring people at different sites together for a meeting. This can be as simple as a conversation between two people in private offices (point-to-point) or involve several sites (multi-point) with more than one person in large rooms at different sites. Besides the audio and visual transmission of people, videoconferencing can be used to share documents, computer-displayed information, and whiteboards Ask your students what are the business advantages of videoconferencing? What industries are at risk because of videoconference? Airlines, hotels, rental cars (all businesses used in business travel which becomes nonexistent with the use of videoconferencing)

58. Web Conferencing Web conferencing - blends audio, video, and document-sharing technologies to create virtual meeting rooms where people “gather” at a password-protected Web site Web conferencing blends audio, video, and document-sharing technologies to create virtual meeting rooms where people “gather” at a password-protected Web site. There, they can chat in conference calls or use real-time text messages. They can mark up a shared document as if it were a blackboard, and even watch live software demos or video clips. Perhaps the biggest surprise about Web conferencing is its simplicity. Users only need to set up an account and download a few small software files. The best part about a Web conference is that attendees do not have to have the same hardware or software. Every participant can see what is on anyone else’s screen, regardless of the application being used Ask your students what are the business advantages of videoconferencing? What industries are at risk because of videoconference? Airlines, hotels, rental cars (all businesses used in business travel which becomes nonexistent with the use of videoconferencing) Web conferencing blends audio, video, and document-sharing technologies to create virtual meeting rooms where people “gather” at a password-protected Web site. There, they can chat in conference calls or use real-time text messages. They can mark up a shared document as if it were a blackboard, and even watch live software demos or video clips. Perhaps the biggest surprise about Web conferencing is its simplicity. Users only need to set up an account and download a few small software files. The best part about a Web conference is that attendees do not have to have the same hardware or software. Every participant can see what is on anyone else’s screen, regardless of the application being used Ask your students what are the business advantages of videoconferencing? What industries are at risk because of videoconference? Airlines, hotels, rental cars (all businesses used in business travel which becomes nonexistent with the use of videoconferencing)

59. Instant Messaging 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 Program features include: Web links Images Sounds Files Talk Streaming content Instant messaging Program features include: Web links Images Sounds Files Talk Streaming content Instant messaging

60. Instant Messaging Instant messaging application CLASSROOM EXERCISE Second Life: The Grid New World of Opportunity: Ask your students why Second Life Grid is monumental to businesses such as IBM who just started the first Grid. The Second Life Grid™ platform enables your organization to create a public or private space using the leading 3D online virtual world technology behind Second Life™. Discover how your organization can create its own space for communication, collaboration and community engagement Hold in-person meetings without leaving the office, using real-time 3D collaboration Construct product simulations enabling customers from all over the world to test out new designs and concepts Conduct employee training Meet with global partners at your virtual headquarters Receive product feedback from clients As a non-profit, engage and raise funds Build community around your brand http://secondlifegrid.net CLASSROOM EXERCISE Second Life: The Grid New World of Opportunity: Ask your students why Second Life Grid is monumental to businesses such as IBM who just started the first Grid. The Second Life Grid™ platform enables your organization to create a public or private space using the leading 3D online virtual world technology behind Second Life™. Discover how your organization can create its own space for communication, collaboration and community engagement Hold in-person meetings without leaving the office, using real-time 3D collaboration Construct product simulations enabling customers from all over the world to test out new designs and concepts Conduct employee training Meet with global partners at your virtual headquarters Receive product feedback from clients As a non-profit, engage and raise funds Build community around your brand http://secondlifegrid.net

61. OPENING CASE QUESTIONSCampus ERP How can a college campus achieve business success through the use of collaboration tools? How can your college use knowledge management systems to improve operations? How can your college use content management systems to improve operations? 1. How can a college campus achieve business success through the use of collaboration tools? Campuses must be able to collaborate. Without collaboration a campus would have a very difficult time operating. Campuses collaborate in a number of ways including document ex­change, shared whiteboards, discussion forums, and e-mail. 2. How can your college use knowledge management systems to improve operations? Knowledge management involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions. A KMS system could be used to capture the knowledge of retiring professors or research among staff. Student answers to this question will vary. The important part of their answer will be their justification for why a knowledge management system will improve college operations. 3. How can your college use content management systems to improve operations? A content management system (CMS) provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment. The CMS marketplace is complex, incorporating document management, collaboration and versioning tools, digital asset management, and Web content management. One common example of a content management systems used by colleges is Blackboard or WebCT. Another example is a Web page to post course content including the syllabus, assignments, and grades. Student answers to this question will vary. The important part of their answer will be their justification for why the content management system will improve college operations.1. How can a college campus achieve business success through the use of collaboration tools? Campuses must be able to collaborate. Without collaboration a campus would have a very difficult time operating. Campuses collaborate in a number of ways including document ex­change, shared whiteboards, discussion forums, and e-mail. 2. How can your college use knowledge management systems to improve operations? Knowledge management involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions. A KMS system could be used to capture the knowledge of retiring professors or research among staff. Student answers to this question will vary. The important part of their answer will be their justification for why a knowledge management system will improve college operations. 3. How can your college use content management systems to improve operations? A content management system (CMS) provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment. The CMS marketplace is complex, incorporating document management, collaboration and versioning tools, digital asset management, and Web content management. One common example of a content management systems used by colleges is Blackboard or WebCT. Another example is a Web page to post course content including the syllabus, assignments, and grades. Student answers to this question will vary. The important part of their answer will be their justification for why the content management system will improve college operations.

62. OPENING CASE QUESTIONSCampus ERP How can a team of college students use a workflow management system to complete a group project? If your college wanted to implement a groupware system, what would be its primary purpose? 4. How can a team of college students use a workflow management system to complete a group project? Many workflow management systems allow the opportunity to measure and analyze the execution of a process. Workflow systems integrate with other organizational systems, such as document management systems and database management systems. A team of students that is completing a group project could use a workflow system to complete the project. Student answers to this question will vary. The important part of their answer will be their justification for why a workflow management system will add value to the team. 5. If your college wanted to implement a groupware system, what would be its primary purpose? Groupware is software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing. Organizations can use this technology to communicate, cooperate, coordinate, solve problems, compete, or negotiate. Student answers to this question will vary. The important part of their answer will be their4. How can a team of college students use a workflow management system to complete a group project? Many workflow management systems allow the opportunity to measure and analyze the execution of a process. Workflow systems integrate with other organizational systems, such as document management systems and database management systems. A team of students that is completing a group project could use a workflow system to complete the project. Student answers to this question will vary. The important part of their answer will be their justification for why a workflow management system will add value to the team. 5. If your college wanted to implement a groupware system, what would be its primary purpose? Groupware is software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing. Organizations can use this technology to communicate, cooperate, coordinate, solve problems, compete, or negotiate. Student answers to this question will vary. The important part of their answer will be their

63. CLOSING CASE ONEDreamWorks How can companies use Halo to increase their business efficiency? Explain how a company like PepsiCo can use Halo to gain a competitive advantage in its industry How can knowledge management be increased by using a product such as Halo? 1. How can companies use Halo to increase their business efficiency? Being able to meet with co-workers virtually around the globe will help organizations become more efficient and effective. Traveling to another country takes time, costs money, and is hard on employees with families, pets, and plants. Being able to meet with face-to-face with global business partners, from a local meeting room, is a big advantage for corporate employees. 2. Explain how a company like PepsiCo can use Halo to gain a competitive advantage in its industry PepsiCo could use Halo to collaborate internally and externally. Internally, it could offer its worldwide an inexpensive way to communicate face-to-face. Externally, it could setup a Halo meeting room where partners and customers could talk with PepsiCo employees face-to-face. It could be a good marketing technique to gain access to its customers. 3. How can knowledge management be increased by using a product such as Halo? There are a few ways that a company can use knowledge management with a Halo product. First, it could record all of the meeting and store this information on a data device. It could then categorize all of the meetings, individuals in the meetings, etc. and slice-and-dice the meeting details for access by other individuals. Of course, there are privacy and ethical issues with recording all meetings. Second, it offers employees a way to meet face-to-face with other co-workers and share knowledge.1. How can companies use Halo to increase their business efficiency? Being able to meet with co-workers virtually around the globe will help organizations become more efficient and effective. Traveling to another country takes time, costs money, and is hard on employees with families, pets, and plants. Being able to meet with face-to-face with global business partners, from a local meeting room, is a big advantage for corporate employees. 2. Explain how a company like PepsiCo can use Halo to gain a competitive advantage in its industry PepsiCo could use Halo to collaborate internally and externally. Internally, it could offer its worldwide an inexpensive way to communicate face-to-face. Externally, it could setup a Halo meeting room where partners and customers could talk with PepsiCo employees face-to-face. It could be a good marketing technique to gain access to its customers. 3. How can knowledge management be increased by using a product such as Halo? There are a few ways that a company can use knowledge management with a Halo product. First, it could record all of the meeting and store this information on a data device. It could then categorize all of the meetings, individuals in the meetings, etc. and slice-and-dice the meeting details for access by other individuals. Of course, there are privacy and ethical issues with recording all meetings. Second, it offers employees a way to meet face-to-face with other co-workers and share knowledge.

64. CLOSING CASE ONEDreamWorks Why would a company like DreamWorks, that is not IT focused, be interested in collaboration technology? What are a few of the security issues surrounding this type of technology? 4. Why would a company like DreamWorks, that is not IT focused, be interested in collaboration technology? All companies need to collaborate to work effectively and efficiently. Businesses cannot operate in a vacuum. The need to collaborate is felt in every industry from products to health care to entertainment. Collaboration is a business need, not just an IT need. 5. What are a few of the security issues surrounding this type of technology? Security is a concern for any technology. A collaboration system needs to operate without the threat of anyone being able to hack into the system and view confidential information discussed in corporate meetings. Imagine how many people would like to sit in on corporate executive meetings at Microsoft, Apple, the Government, etc. Keeping the meeting safe is key to the success of this technology.4. Why would a company like DreamWorks, that is not IT focused, be interested in collaboration technology? All companies need to collaborate to work effectively and efficiently. Businesses cannot operate in a vacuum. The need to collaborate is felt in every industry from products to health care to entertainment. Collaboration is a business need, not just an IT need. 5. What are a few of the security issues surrounding this type of technology? Security is a concern for any technology. A collaboration system needs to operate without the threat of anyone being able to hack into the system and view confidential information discussed in corporate meetings. Imagine how many people would like to sit in on corporate executive meetings at Microsoft, Apple, the Government, etc. Keeping the meeting safe is key to the success of this technology.

65. CLOSING CASE TWOEnterprise Content Management at Statoil Why do you think content management is such a critical part of Statoil’s strategy? Comment on the utility and importance of Statoil’s use of an information portal to promote enterprisewide content management? 1. Why do you think content management is such a critical part of Statoils strategy? Content management is a critical part of Statoils strategy because the need for information from customers and employees is quite large. With over 5500 databases, the need to support content lifecycle that deals with capture, transformation, storage, security, distribution, retrieval and destruction of the data.   2. Comment on the utility and importance of Statoil’s use of an information portal to promote enterprisewide content management? The utility and importance of Statoil’s use of information portal is paramount, because without access to current and cutting edge materials related to their business. Answers to this question will vary, but should indicate an understanding of the need for information by every level and every department within an organization.1. Why do you think content management is such a critical part of Statoils strategy? Content management is a critical part of Statoils strategy because the need for information from customers and employees is quite large. With over 5500 databases, the need to support content lifecycle that deals with capture, transformation, storage, security, distribution, retrieval and destruction of the data.   2. Comment on the utility and importance of Statoil’s use of an information portal to promote enterprisewide content management? The utility and importance of Statoil’s use of information portal is paramount, because without access to current and cutting edge materials related to their business. Answers to this question will vary, but should indicate an understanding of the need for information by every level and every department within an organization.

66. CLOSING CASE TWOEnterprise Content Management at Statoil To what extent do you think Statoil’s predicament of information overload is typical for organizations? What lessons learned and insights from the chapter’s discussion on collaboration tools could help promote Statoil’s adoption and use of its content management initiative? 3. To what extent do you think Statoil’s predicament of information overload is typical for organizations? Many organizations have experienced overload. Students should discuss the need for and problems with disseminating information across large organizational structures. 4. What lessons learned and insights from the chapter’s discussion on collaboration tools could help promote Statoil’s adoption and use of its content management initiative? Answers to this question will vary, but may include training employees on the availability and use of portals, implementing guidelines for use, and establishing required e-learning modules for employees. 3. To what extent do you think Statoil’s predicament of information overload is typical for organizations? Many organizations have experienced overload. Students should discuss the need for and problems with disseminating information across large organizational structures. 4. What lessons learned and insights from the chapter’s discussion on collaboration tools could help promote Statoil’s adoption and use of its content management initiative? Answers to this question will vary, but may include training employees on the availability and use of portals, implementing guidelines for use, and establishing required e-learning modules for employees.

67. CLOSING CASE THREE Shell Canada Fuels Productivity with ERP How did ERP help improve business operations at Shell? How important was training in helping roll out the system to Shell personnel? How could extended ERP components help improve business operations at Shell? 1. How did ERP help improve business operations at Shell? ERP helped improve business operations at Shell Canada in a number of ways. The implementation of the system helped Shell to integrate and manage its daily operations. It did this by reducing and streamlining third-party contractors who are required to submit repair information and invoices. This resulted in a reduction of errors in invoices, reducing the hours of labor required to decipher and correct any errors in the invoice. Information was entered immediately and fed to the upstream payment and accounts payable systems. 2. How important was training in helping roll out the system to Shell personnel? Training was crucial in helping roll out the new ERP system to Shell Canada personnel, and also for the third-party contractors who also use the system. Formal and informal education helped the end-users understand the mechanics of the system, and helped them to appreciate the benefits and efficiencies the ERP could offer to Shell Canada. This helped promote end-user acceptance, and helped employees to effectively use the system in their daily work. 3. How could extended ERP components help improve business operations at Shell? The four most common extended ERP components are business intelligence, customer relationship management, supply chain management and e-business. Business intelligence can help Shell measure and control organizational operations by helping people make decisions through organizing and applying analytical tools to the data being gathered. Customer relationship management components can help Shell to increase customer loyalty and retention, and improve its profitability. Supply Chain Management components can help Shell to maximize supply chain effectiveness and profitability, by organizing, scheduling, controlling and optimizing the supply chain from its acquisition of raw materials to the delivery of product. E-business components may help Shell with the management of transportation and storage of goods (e-logistics) and the business-to-business purchase and sale of supplies and services over the Internet (e-procurement). 1. How did ERP help improve business operations at Shell? ERP helped improve business operations at Shell Canada in a number of ways. The implementation of the system helped Shell to integrate and manage its daily operations. It did this by reducing and streamlining third-party contractors who are required to submit repair information and invoices. This resulted in a reduction of errors in invoices, reducing the hours of labor required to decipher and correct any errors in the invoice. Information was entered immediately and fed to the upstream payment and accounts payable systems. 2. How important was training in helping roll out the system to Shell personnel? Training was crucial in helping roll out the new ERP system to Shell Canada personnel, and also for the third-party contractors who also use the system. Formal and informal education helped the end-users understand the mechanics of the system, and helped them to appreciate the benefits and efficiencies the ERP could offer to Shell Canada. This helped promote end-user acceptance, and helped employees to effectively use the system in their daily work. 3. How could extended ERP components help improve business operations at Shell? The four most common extended ERP components are business intelligence, customer relationship management, supply chain management and e-business. Business intelligence can help Shell measure and control organizational operations by helping people make decisions through organizing and applying analytical tools to the data being gathered. Customer relationship management components can help Shell to increase customer loyalty and retention, and improve its profitability. Supply Chain Management components can help Shell to maximize supply chain effectiveness and profitability, by organizing, scheduling, controlling and optimizing the supply chain from its acquisition of raw materials to the delivery of product. E-business components may help Shell with the management of transportation and storage of goods (e-logistics) and the business-to-business purchase and sale of supplies and services over the Internet (e-procurement).

68. CLOSING CASE THREE Shell Canada Fuels Productivity with ERP What advice would you give Shell if it decided to choose a different ERP software solution? How can integrating SCM, CRM, and ERP help improve business operations at Shell? 4. What advice would you give Shell if it decided to choose a different ERP software solution? Answers will vary, but all answers should include specifics about the ERP software solutions, including Oracle/PeopleSoft or Siebel. 5. How can integrating SCM, CRM, and ERP help improve business operations at Shell? Answers to this may vary. Supply chain management, customer relationship management are components of an enterprise resource planning system, and so acknowledgement that integrating all of the components of an ERP should be implied in the students’ answer 4. What advice would you give Shell if it decided to choose a different ERP software solution? Answers will vary, but all answers should include specifics about the ERP software solutions, including Oracle/PeopleSoft or Siebel. 5. How can integrating SCM, CRM, and ERP help improve business operations at Shell? Answers to this may vary. Supply chain management, customer relationship management are components of an enterprise resource planning system, and so acknowledgement that integrating all of the components of an ERP should be implied in the students’ answer

69. BUSINESS DRIVEN BEST SELLERS The Tipping Point: How Little Things Can Make a Big Difference, by Malcolm Gladwell This celebrated New York Times best seller is changing the way people think about selling products and disseminating ideas. The tipping point is that magical moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire. Just as a single sick person can start an epidemic of the fl u, so too can a small but precisely targeted push cause a fashion trend, the popularity of a new product, or a drop in the crime rate. In this book, Malcolm Gladwell explores and brilliantly illuminates the tipping point phenomenon, changing the way people throughout the world think about selling products and disseminating ideas. The Tipping Point is about change. In particular, it presents a new way of understanding why change so often happens as quickly and as unexpectedly as it does. For example, why did crime drop so dramatically in New York City in the mid-1990s? How does a novel written by an unknown author end up as a national best seller? Why do teens smoke in greater and greater numbers when every single person in the country knows that cigarettes kill? Why is word of mouth so powerful? What makes TV shows like Sesame Street so good at teaching kids how to read? Gladwell thinks the answer to all those questions is the same. It is that ideas and behavior and messages and products sometimes behave just like outbreaks of infectious disease. They are social epidemics. The Tipping Point is an examination of the social epidemics that surround us. This celebrated New York Times best seller is changing the way people think about selling products and disseminating ideas. The tipping point is that magical moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire. Just as a single sick person can start an epidemic of the fl u, so too can a small but precisely targeted push cause a fashion trend, the popularity of a new product, or a drop in the crime rate. In this book, Malcolm Gladwell explores and brilliantly illuminates the tipping point phenomenon, changing the way people throughout the world think about selling products and disseminating ideas. The Tipping Point is about change. In particular, it presents a new way of understanding why change so often happens as quickly and as unexpectedly as it does. For example, why did crime drop so dramatically in New York City in the mid-1990s? How does a novel written by an unknown author end up as a national best seller? Why do teens smoke in greater and greater numbers when every single person in the country knows that cigarettes kill? Why is word of mouth so powerful? What makes TV shows like Sesame Street so good at teaching kids how to read? Gladwell thinks the answer to all those questions is the same. It is that ideas and behavior and messages and products sometimes behave just like outbreaks of infectious disease. They are social epidemics. The Tipping Point is an examination of the social epidemics that surround us.

70. BUSINESS DRIVEN BEST SELLERS Blink: The Power of Thinking Without Thinking, by Malcolm Gladwell In his landmark best seller The Tipping Point, Malcolm Gladwell redefined how we understand the world around us. Now, in Blink, he revolutionizes the way we understand the world within. Blink addresses how we think without thinking, about choices that seem to be made in an instant—in the blink of an eye—that actually are not as simple as they seem. Blink is about rapid cognition, about the kind of thinking that happens in a blink of an eye. When you meet someone for the first time, or walk into a house you are thinking of buying, or read the first few sentences of a book, your mind takes about two seconds to jump to a series of conclusions. Well, Blink is a book about those two seconds, because Gladwell thinks those instant conclusions that we reach are really powerful and really important and, occasionally, really good. You could also say that Blink is about intuition. Gladwell does not like the word intuition. In fact, it never appears in Blink. Intuition strikes Gladwell as a concept people use to describe emotional reactions, gut feelings—thoughts and impressions that do not seem entirely rational. But Gladwell thinks that what goes on in that first two seconds is perfectly rational. It is thinking—it’s just thinking that moves a little faster and operates a little more mysteriously than the kind of deliberate, conscious decision making that people usually associate with “thinking.” In Blink, Gladwell tries to understand those two seconds. What is going on inside people’s heads when they engage in rapid cognition? When are snap judgments good and when are they not? What kinds of things can individuals do to make the power of rapid cognition better? In his landmark best seller The Tipping Point, Malcolm Gladwell redefined how we understand the world around us. Now, in Blink, he revolutionizes the way we understand the world within. Blink addresses how we think without thinking, about choices that seem to be made in an instant—in the blink of an eye—that actually are not as simple as they seem. Blink is about rapid cognition, about the kind of thinking that happens in a blink of an eye. When you meet someone for the first time, or walk into a house you are thinking of buying, or read the first few sentences of a book, your mind takes about two seconds to jump to a series of conclusions. Well, Blink is a book about those two seconds, because Gladwell thinks those instant conclusions that we reach are really powerful and really important and, occasionally, really good. You could also say that Blink is about intuition. Gladwell does not like the word intuition. In fact, it never appears in Blink. Intuition strikes Gladwell as a concept people use to describe emotional reactions, gut feelings—thoughts and impressions that do not seem entirely rational. But Gladwell thinks that what goes on in that first two seconds is perfectly rational. It is thinking—it’s just thinking that moves a little faster and operates a little more mysteriously than the kind of deliberate, conscious decision making that people usually associate with “thinking.” In Blink, Gladwell tries to understand those two seconds. What is going on inside people’s heads when they engage in rapid cognition? When are snap judgments good and when are they not? What kinds of things can individuals do to make the power of rapid cognition better?