1. Overview of Enterprise Integration Efforts at Penn State by Ravi Ravindran Chair, EI Steering Committee Professor of Industrial Engineering

2. AGENDA Enterprise Integration Overview and History SAP University Alliance Program PSU – EI Business Plan Phase I Accomplishments Phase II Plans

3. Challenges Facing Today’s Global Business Volatile demand Shorter product cycle Mass customization Blurring of traditional organizational boundaries Information overload Key Ingredients for Business Success & Viability Tight integration and cross-functional coordination among members of company’s supply chain (Enterprise Integration) Comprehensive, integrated, accurate and timely information for decision making

4. Supply Chain Cash Flow Information Flow DistributionSupplierMfg. Retail Outlet Consumer

5. Supply Chain Management Planning & control activities to coordinate different parts of the supply chain to achieve: quicker time to market reduced inventory levels higher quality lower costs increased customer satisfaction

6. Penn State’s Response Formation of an informal “Enterprise Integration” Faculty Interest Group Our Mission To train engineers and managers: who have an integrated view of the entire business who appreciate the importance of optimized business processes who understand the underlying information technology that supports the business process

7. Enterprise Integration (EI) Group Established in Spring 1998 Three colleges  Engineering, Business, and Information Sciences & Technology (IST) Three campuses  University Park, Erie, and Great Valley Six departments  Industrial Engineering, Business Logistics, Management Science & Information Systems, IST, Business (Erie), and Engineering (Great Valley)

8. EI Business Plan Integration of distributed manufacturing and business enterprises Phase I (18 months) covered January 1, 1999 to June 30, 2000 Phase II (3 years) covers July 1, 2000 to June 30, 2003 Plan includes Education, Research, and Continuing Education

9. Phase I Accomplishments Penn State officially joined the SAP University Alliance in June 1999 SAP R/3 (Version 4.0b) installed on four Unisys servers during Summer 1999 Four UG courses (BLOG, IE, MSIS at UP and Business at Erie) implemented SAP in 1999- 2000. SAP Student Interest Group formed with 300 students. Currently 600 students use SAP software.

10. Enterprise Integration Phase II Educational Plan A review of our initial experience in implementing SAP R/3 in the pilot courses. The instructors of the pilot courses share their experience with more faculty to offer additional courses using SAP R/3 during AY 2000-2001 and 2001-2002, and 2002-2003. Offer one or two new interdisciplinary courses in EI using SAP R/3, ORACLE and other specialized software such as i2, during AY 2002-2003.

11. Enterprise Integration Phase II Educational Plan (cont.) Develop an interdisciplinary graduate minor at the Master’s level in Business and Engineering that would offer students a specialization in EI. Develop EI as an optional UG track in the School of Information Sciences and Technology.

12. Enterprise Integration Phase- II Research Plan Facilitate the development of research programs related to ERP systems, technologies and applications. Research programs to complement the interdisciplinary graduate minor. Create a framework for focused collaboration and coordination among the research centers/institutes interested in enterprise integration.

13. Enterprise Integration Phase II Continuing Education Plan Coordinate the planning and offering of workshops and conferences on enterprise integration. Consider the development of web-based courses. Develop a certificate program in Enterprise Integration.

14. Project Management The EI efforts at Penn State is managed by a steering committee comprised of key faculty and staff involved in the SAP proposal development and curriculum implementation. Acting as the Executive Committee, the Steering Committee is responsible for coordinating all academic and administrative matters related to Enterprise Integration at Penn State. EI Business Plan

15. Industry Advisory Board An Industry Advisory Board (IAB) involving Penn State alumni and friends from key industries advises the Enterprise Integration Group. The IAB’s role is to provide valuable input to the faculty on curriculum and research issues. EI Business Plan

16. CIO’s and VPs from the following companies are currently represented: ! IBM, Lockheed Martin, Arthur Andersen, TRW, Owens Corning, Microsoft, Hershey Foods, Bellco Health, Lucent, GE Transportation, Shell, Deloitte & Touche, Unisys, SAP, Kodak and General Motors. ! Mix of ERP users, ERP vendors, and ERP consultants. Industry Advisory Board