1. Enterprise Resource Management
BUSINESS PLUG-IN B10
Enterprise Resource Management

2. 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

3. LEARNING OUTCOMES
Explain the benefits and risks associated with enterprise resource planning systems
Assess the future of enterprise resource planning systems

4. 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

5. Core and Extended ERP Components
Core ERP component – traditional components included in most ERP systems and they primarily focus on internal operations
Extended ERP component – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations

6. Core and Extended ERP Components

7. CORE ERP COMPONENTS Three most common core ERP components
Accounting and finance
Production and materials management
Human resource

8. CORE ERP COMPONENTS
Accounting and finance component – manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management

9. CORE ERP COMPONENTS
Production and materials management component – handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control

10. CORE ERP COMPONENTS
Human resource component – tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities

11. Extended ERP Components
Extended ERP components include:
Business intelligence
Customer relationship management
Supply chain management
Ebusiness

12. Extended ERP Components
Ebusiness components include elogistics and eprocurement
Elogistics – manages the transportation and storage of goods
Eprocurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet

13. ERP Benefits and Risks (Costs)
Common ERP benefits
Integrate financial information
Integrate customer order information
Standardize and speed up manufacturing processes
Reduce inventory
Standardize human resource information

14. ERP Benefits and Risks (Costs)

15. 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

16. 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

17. 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

18. 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 B Which component would you recommend PepsiAmericas implement if it decides to purchase an additional PeopleSoft component?
Compare PepsiAmericas experience with other ERP cases you can find in most business articles.

19. CLOSING CASE TWO Campus ERP
ERP implementations are difficult, even in very top-down corporate environments
Getting them to work in colleges, which are essentially a conglomeration of decentralized fiefdoms, has been nearly impossible
Nonprofit organizations generally lack the talent and financial resources to create and manage a robust enterprise system

20. CLOSING CASE TWO QUESTIONS
How could core ERP components help improve business operations at your college?
How could extended ERP components help improve business operations at your college?
How can integrating SCM, CRM, and ERP help improve business operations at your college?
Review the different components in Figure B10.6. Which component would you recommend your college implement if it decided to purchase three components?