CHAPTER TEN Enterprise Resource Planning and Collaboration Systems

ERP (Your Book’s Definition) 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 enterprise wide decisions by viewing enterprise wide information on all business operations

ERP (My Definition) All of an organization’s business processes are integrated into a single system (SCM, CRM, accounting, finance, manufacturing, along with specialized function applicable to specific industries)

ERP (Players) SAP has 30+ percent of the market Oracle / PeopleSoft IBM Microsoft Dynamics

ERP (Functions)

ERP (Business Processes)

ERP (Benefits) Breaks down or eliminates information silos Business processes are performed more efficiently All functional systems interact together

ERP (Risks) Failure can be catastrophic Hershey -failure-in-hersheys-presentation -failure-in-hersheys-presentation This list is endless Failure is typically caused by Poor planning Not understanding and adapting business process to the ERP

The Evolution of ERP

Core ERP Components (1) Accounting and Finance Integrates traditional AR / AP / inventory / payroll / general ledger Financial reporting systems Operates with multiple currencies

Core ERP Components (2) Production and materials management Raw materials supply chain Manufacturing You can’t make what you don’t have Distribution You can’t ship what you have not made Human resources

ERP (Manufacturing and Production)

Extended Components Business intelligence integration CRM SCM Often considered a core component Ebusiness Also becoming a core component Procurement (B2B) Sales (B2C)

Enterprise Application Integration Integrate SCM, CRM, ERP business partners, suppliers, distributers, resellers, customers typically by creating SOA middleware

Collaboration Systems (Introduction) Simply put, they help people (employees / partners / customers) effectively work together and share information

Collaboration Systems (Illustration)

Collaboration Systems (Types) Groupware to collaborate Content management systems are used as an information repository Knowledge management Workflow management Much of the software performs many of these tasks

Collaboration Systems (Groupware) Groupware allows us to work together Functions Calendaring, scheduling, and conferencing File sharing and change tracking Providers Lotus Notes SharePoint

Collaboration Systems (Content Management) Manage Information creating Information storage Changes to information Information publishing and acquisition

Collaboration Systems (Knowledge Management) Closely related to content management Capture, classify, retrieve, and share information It preserves organizational memory SharePoint

Collaboration Systems (Workflow) Workflow describes how work gets done You don’t have the prerequisites for a class you want to take You fill out the College of Business automated add slip form It’s routed to the department or advisement center An advisor approves or disapproves the request You are notified

ERP Demo Accounting Financial / Managerial Sales and Distribution Customers and products Procurement Production Quality management Warehouse management HR And whatever else…