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ENTERPRISE RESOURCE PLANNING(ERP) system
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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 Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems
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ENTERPRISE RESOURCE PLANNING
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
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ENTERPRISE RESOURCE PLANNING
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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
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CORE AND EXTENDED ERP COMPONENTS
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CORE ERP COMPONENTS Three most common core ERP components
Accounting and finance Production and materials management Human resource
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Accounting and Finance ERP Components
Accounting and finance ERP component – manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management
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Production and Materials Management ERP Components
Production and materials management ERP component – handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control
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Human Resource ERP Component
Human resource ERP component – tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities
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EXTENDED ERP COMPONENTS
Extended ERP components include: Business intelligence Customer relationship management Supply chain management E-business
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E-Business 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
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ERP VENDOR OVERVIEW 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
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ERP VENDOR OVERVIEW
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ERP Vendor Overview SCM and CRM market overviews
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ERP SOFTWARE Successful ERP projects share 3 attributes Overall fit
Off the rack Off the rack and tailored to fit Custom made Proper business analysis Successful companies spend up to 10 percent of the project budget on a business analysis Solid implementation plans A plan is needed to monitor the quality, objectives, and timelines
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ERP BENEFITS AND RISKS Common ERP benefits
Integrate financial information Integrate customer order information Standardize and speed up manufacturing processes Reduce inventory Standardize human resource information
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ERP BENEFITS AND RISKS
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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
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THE CONNECTED CORPORATION
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 – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors
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THE CONNECTED CORPORATION
General audience and purpose of SCM, CRM and ERP
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THE CONNECTED CORPORATION
Data points where SCM, CRM, and ERP integrate
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THE CONNECTED CORPORATION
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
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THE CONNECTED CORPORATION
ERP systems automate business processes
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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
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OPENING CASE QUESTIONS Campus ERP
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? Which component would you recommend your college implement if it decided to purchase an ERP component?
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COLLABORATION SYSTEMS With ERP
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LEARNING OUTCOMES Identify the different ways in which companies collaborate using technology Compare the different categories of collaboration technologies Define the fundamental concepts of a knowledge management system
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LEARNING OUTCOMES Provide an examples of a content management system along with its business purpose Evaluate the advantages of using a workflow management system Explain how groupware can benefit a business
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OPENING CASE QUESTIONS
How can a team of college students use a workflow management system to complete a group project? If your college wanted to implement a groupware system, what would be its primary purpose?
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TEAMS, PARTNERSHIPS, AND ALLIANCES
Organizations create and use teams, partnerships, and alliances to: Undertake new initiatives Address both minor and major problems Capitalize on significant opportunities Organizations create teams, partnerships, and alliances both internally with employees and externally with other organizations
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TEAMS, PARTNERSHIPS, AND ALLIANCES
Collaboration system – supports the work of teams by facilitating the sharing and flow of information
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TEAMS, PARTNERSHIPS, AND ALLIANCES
Organizations form alliances and partnerships with other organizations based on their core competency Core competency – an organization’s key strength, a business function that it does better than any of its competitors Core competency strategy – organization chooses to focus specifically on its core competency and forms partnerships with other organizations to handle nonstrategic business processes
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TEAMS, PARTNERSHIPS, AND ALLIANCES
Information technology can make a business partnership easier to establish and manage Information partnership – occurs when two or more organizations cooperate by integrating their IT systems, thereby providing customers with the best of what each can offer The Internet has dramatically increased the ease and availability for IT-enabled organizational alliances and partnerships
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COLLABORATION SYSTEMS
Collaboration solves specific business tasks such as telecommuting, online meetings, deploying applications, and remote project and sales management Collaboration system – an IT-based set of tools that supports the work of teams by facilitating the sharing and flow of information
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COLLABORATION SYSTEMS
Two categories of collaboration Unstructured collaboration (information collaboration) - includes document exchange, shared whiteboards, discussion forums, and Structured collaboration (process collaboration) - involves shared participation in business processes such as workflow in which knowledge is hardcoded as rules
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COLLABORATION SYSTEMS
Collaborative business functions
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COLLABORATION SYSTEMS
Collaboration systems include: Knowledge management systems Content management systems Workflow management systems Groupware systems
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KNOWLEDGE MANAGEMENT Knowledge management (KM) – involves capturing, classifying, evaluating, retrieving, and sharing information assets in a way that provides context for effective decisions and actions Knowledge management system (KMS) – supports the capturing and use of an organization’s “know-how”
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Explicit and Tacit Knowledge
Intellectual and knowledge-based assets fall into two categories Explicit knowledge – consists of anything that can be documented, archived, and codified, often with the help of IT Tacit knowledge - knowledge contained in people’s heads
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Explicit and Tacit Knowledge
The following are two best practices for transferring or recreating tacit knowledge Shadowing – less experienced staff observe more experienced staff to learn how their more experienced counterparts approach their work Joint problem solving – a novice and expert work together on a project
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Explicit and Tacit Knowledge
Reasons why organizations launch knowledge management programs
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KM Technologies Knowledge management systems include:
Knowledge repositories (databases) Expertise tools E-learning applications Discussion and chat technologies Search and data mining tools
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KM and Social Networking
Finding out how information flows through an organization Social networking analysis (SNA) – a process of mapping a group’s contacts (whether personal or professional) to identify who knows whom and who works with whom SNA provides a clear picture of how employees and divisions work together and can help identify key experts
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CONTENT MANAGEMENT SYSTEMS
Content management system (CMS) – provides tools to manage the creation, storage, editing, and publication of information in a collaborative environment CMS marketplace includes: Document management system (DMS) Digital asset management system (DAM) Web content management system (WCM)
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CONTENT MANAGEMENT SYSTEMS
Content management system vendor overview
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WORKFLOW MANAGEMENT SYSTEMS
Work activities can be performed in series or in parallel that involves people and automated computer systems Workflow – defines all the steps or business rules, from beginning to end, required for a business process Workflow management system – facilitates the automation and management of business processes and controls the movement of work through the business process
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WORKFLOW MANAGEMENT SYSTEMS
Messaging-based workflow system – sends work assignments through an system Database-based workflow system – stores documents in a central location and automatically asks the team members to access the document when it is their turn to edit the document
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GROUPWARE SYSTEMS Groupware technologies
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GROUPWARE SYSTEMS Groupware – software that supports team interaction and dynamics including calendaring, scheduling, and videoconferencing
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COLLABORATION TRENDS is the dominant form of collaboration application, but real-time collaboration tools like instant messaging are creating a new communication dynamic Instant messaging - type of communications service that enables someone to create a kind of private chat room with another individual to communicate in real-time over the Internet
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COLLABORATION TRENDS Instant messaging application
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CLOSING CASE ONE DreamWorks
How can knowledge management be increased by using a product such as Halo? Why would a company like DreamWorks, that is not IT focused, be interested in collaboration technology? What are a few of the security issues surrounding this type of technology?
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