1. BUSINESS DRIVEN TECHNOLOGY
Chapter Twelve:
Integrating the Organization from End to End – Enterprise Resource Planning

2. LEARNING OUTCOMES
12.1 Describe the role information plays in enterprise resource planning systems
12.2 Identify the primary forces driving the explosive growth of enterprise resource planning systems
12.3 Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems

3. CHAPTER TWELEVE OVERVIEW
Enterprise resource planning systems serve as the organization's backbone in providing fundamental decision-making support
This chapter discusses
ERP’s explosive growth
Using ERP to connect corporations
Integrating SCM, CRM, and ERP

4. CHAPTER TWELEVE OVERVIEW
At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system

5. CHAPTER TWELEVE OVERVIEW
ERP systems can automate business processes

6. CHAPTER TWELEVE OVERVIEW
ERP systems must integrate various organization processes and be:
Flexible
Modular and open
Comprehensive
Beyond the company

7. ENTERPRISE RESOURCE PLANNING’S EXPLOSIVE GROWTH
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

8. THE CONNECTED CORPORATION
Top three ERP vendors and their major components

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, AND 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 – represents a new approach to middleware by packaging together commonly used functionality, such as providing prebuilt 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 and purpose of SCM, CRM and ERP

13. INTEGRATING SCM, CRM, AND ERP
Data points where SCM, CRM, and ERP integrate

14. Opening Case Study Questions Revving Up Sales at Harley-Davidson
Explain how an ERP system can help Harley-Davidson gain business intelligence in its operations
Assess the business benefit for Harley-Davidson in integrating its CRM, SCM, and ERP systems

15. CHAPTER TWELEVE CASE 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
The ERP system is saving the company between $4.5 and $5 million annually

16. CHAPTER TWELEVE 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 wanted to add an additional PeopleSoft 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 Corporation could receive from implementing an integrated SCM, CRM, and ERP solution

17. BUSINESS DRIVEN TECHNOLOGY
UNIT THREE CLOSING

18. Unit Closing Case One Building LEGO’s IT Systems One Block at a Time
Summarize why LEGO’s managers and executives would want to use DSSs and EISs to gain business intelligence
Prototype a potential digital dashboard for a sales executive at LEGO
Describe a supply chain and explain why managing it is important to LEGO’s business

19. Unit Closing Case One Building LEGO’s IT Systems One Block at a Time
Summarize customer relationship management and explain how LEGO could use CRM to enhance its business
Is it ethical for an employee at LEGO to sell the organizational information stored in its i2 system?
One of the challenges facing LEGO is its ability to forecast demand. Explain how implementing the ERP solution from i2 has helped the company improve its demand forecasting

20. Unit Closing Case Two eBay’s Cosmos Business Intelligence System
Explain why eBay’s managers and executives decided to create the Business Intelligence Team
Define five types of information that eBay executives might want on their EISs
Determine the strategy eBay is taking regarding its supply chain
Assess the business benefits from implementing an analytical CRM solution at eBay

21. Unit Closing Case Two eBay’s Cosmos Business Intelligence System
Which component would you recommend eBay purchase if the company was interested in adding an additional ERP component?
One of the key success factors of Cosmos is its ability to provide a better understanding of customer activity, which allows eBay to improve customer experiences making eBay a safer place to buy/sell practically anything. Explain why eBay’s unique business structure causes safety and security concerns for its customers
What types of security issues should eBay be concerned with and what can it do to protect itself?