DEPARTMENT OF MANAGEMENT STUDIES UNIT – V EXTENDED ERP 6/23/2018 Dr. G. MAHESWARAN/AP

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 6/23/2018 2/20 Dr. G. MAHESWARAN/AP

Assess the future of enterprise resource planning systems LEARNING OUTCOMES Explain the benefits and risks associated with enterprise resource planning systems Assess the future of enterprise resource planning systems 6/23/2018 Dr. G. MAHESWARAN/AP 3/20

INTRODUCTION 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 6/23/2018 Dr. G. MAHESWARAN/AP 4/20

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 6/23/2018 Dr. G. MAHESWARAN/AP 5/20

Core and Extended ERP Components 6/23/2018 Dr. G. MAHESWARAN/AP 6/20

Three most common core ERP components Accounting and finance Production and materials management Human resource 6/23/2018 Dr. G. MAHESWARAN/AP 7/20

CORE ERP COMPONENTS 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 6/23/2018 Dr. G. MAHESWARAN/AP 8/20

CORE ERP COMPONENTS 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 6/23/2018 9/20 Dr. G. MAHESWARAN/AP

CORE ERP COMPONENTS 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 6/23/2018 Dr. G. MAHESWARAN/AP 10/20

Extended ERP Components Extended ERP components include: Business intelligence Customer relationship management Supply chain management E-business 6/23/2018 Dr. G. MAHESWARAN/AP 11/20

Extended ERP Components E-business components include e-logistics and e-procurement E-logistics – manages the transportation and storage of goods E-procurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet 6/23/2018 Dr. G. MAHESWARAN/AP 12/20

ERP Benefits and Risks (Costs) 6/23/2018 Dr. G. MAHESWARAN/AP 13/20

ERP Benefits and Risks (Costs) ERP Risks 6/23/2018 Dr. G. MAHESWARAN/AP 14/20

Lines between SCM, CRM, and ERP will continue to blur The Future of ERP Lines between SCM, CRM, and ERP will continue to blur Internet – continue to help organizations integrate data and process across functional departments Interface – customizable employee browsers Wireless technology – support a mobile workforce 6/23/2018 Dr. G. MAHESWARAN/AP 15/20

Closing Case One PepsiAmericas’ Enterprises PepsiAmericas generates $2.97 billion in revenues yearly The company implemented PeopleSoft’s ERP solution to provide complete integration between PepsiAmericas’ front-office and back-office systems PepsiAmericas also implemented PeopleSoft’s supply chain management component to automate its inventory 6/23/2018 Dr. G. MAHESWARAN/AP 16/20

Closing Case One Questions How have core ERP components helped PepsiAmericas improve its business? How have extended ERP components helped PepsiAmericas improve its business? Explain how future ERP systems will help PepsiAmericas increase revenues 6/23/2018 Dr. G. MAHESWARAN/AP 17/20

Closing Case One Questions Assess the impact on PepsiAmericas’ business if it failed to implement the CRM component of PeopleSoft’s ERP system Review the different PeopleSoft components in Figure B5.5. Which component would you recommend PepsiAmericas implement if it decides to purchase an additional PeopleSoft component? 6/23/2018 Dr. G. MAHESWARAN/AP 18/20

Closing Case Two Demanding Chocolate Ghirardelli is the longest continuously operating chocolate manufacturer in the Untied States Ghirardelli improved inventory management and profitability through the implementation of an ERP system 6/23/2018 Dr. G. MAHESWARAN/AP 19/20

Closing Case Two Questions Which additional core ERP components would you recommend Ghirardelli implement? Which additional extended ERP components would you recommend Ghirardelli implement? How can implementing an Advanced Planning ERP component help Ghirardelli’s business? 6/23/2018 Dr. G. MAHESWARAN/AP 20/20