Enterprise Resource Planning ERP

1. Enterprise Resource Planning (ERP) Dr. Malloy MIS 200 Spring 2007 March 29, 2007

2. Learning Objectives Describe the role information plays in enterprise resource planning systems Identify the primary forces driving the explosive growth of Enterprise Resource Planning (ERP) systems Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems

3. Overview Enterprise Resource Planning (ERP) systems serve as the organization's backbone in providing fundamental decision-making support Today, we will discuss ERP�s explosive growth Using ERP to connect corporations Integrating SCM, CRM, and ERP

4. Enterprise Resource Planning (ERP) At the heart of an ERP system is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system

5. Enterprise Resource Planning (ERP) ERP systems automate business processes

6. Enterprise Resource Planning (ERP) ERP systems must integrate various organization processes and be: Flexible Modular and open Comprehensive Beyond the company

7. ERP Growth There are an estimated 70,000 ERP installations worldwide with over 35 million users. SAP boasts 20,000 installations and 10 million users worldwide. ERP solutions are growing because: ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses ERP addresses the need for global information sharing and reporting ERP is used to avoid the pain and expense of fixing legacy systems

9. The Connected Corporation SCM, CRM, and ERP are the backbone of e-business Integration of these applications is the key to success for many companies Integration allows the unlocking of information to make it available to any user, anywhere, anytime

10. The Connected Corporation SCM and CRM market overviews

11. Integrating SCM, CRM, & ERP Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together Middleware � several different types of software which sit in the middle of and provide connectivity between two or more software applications Enterprise application integration (EAI) middleware � packaging together commonly used functionality, such as providing pre-built links to popular enterprise applications, which reduced the time necessary to develop solutions that integrate applications from multiple vendors

12. Integrating SCM, CRM, and ERP General audience & purpose of SCM, CRM & ERP

13. Integrating SCM, CRM, and ERP Data points where SCM, CRM, and ERP integrate

14. Gearing Up At REI Case Questions Explain how an ERP system can help REI gain business intelligence in its operations Assess the business benefit for REI in integrating its CRM, SCM, and ERP systems

15. Hilton Purchases New Suite Hilton deployed a new ERP that cost $4 million The ERP system has increased processing efficiency by a factor of six (6) The ERP system is saving the company between $4.5 and $5 million annually

16. Hilton Case Questions Summarize why the merger of two separate corporations can cause significant issues for the integration of information Which component would you recommend if Hilton Hotels wanted to add an additional Oracle component? Evaluate the business benefit of this additional component Analyze why it is critical for an organization like Hilton Hotels to have an enterprisewide system Assess the benefits Hilton Hotels could receive from implementing an integrated SCM, CRM, and ERP solution

17. Dell�s Famous Supply Chain Case Qs Identify a few key metrics a Dell marketing executive might want to monitor on a digital dashboard Determine how Dell can benefit from using decision support systems and executive information systems in its business Describe how Dell has influenced visibility, consumer behavior, competition, and speed though the use of IT in its supply chain

18. Dell�s Famous Supply Chain Case Qs Explain the seven principles of SCM in reference to Dell�s business model Identify how Dell can use CRM to improve its business operations Explain how an ERP system could help Dell gain business intelligence

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

20. Revving Up Sales at Harley Davidson Case Qs Evaluate the HOG CRM strategy and recommend an additional benefit Harley-Davidson could provide to its HOG members to increase customer satisfaction How could Harley-Davidson�s SCM system, Manugistics, improve its business operations? Provide a potential illustration of Harley-Davidson�s SCM system including all upstream and downstream participants Explain how an ERP system could help Harley-Davidson gain business intelligence in its operations