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Enterprise Computing Challenges and Enterprise Resource Planning
Chapter 7 Enterprise Computing Challenges and Enterprise Resource Planning Opening Case: Shell Fuels Productivity with ERP
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Chapter Seven Overview
SECTION 7.1 – ENTERPRISE COMPUTING CHALLENGES Introduction Innovation Social Responsibility Social Networks Virtual Worlds SECTION 7.2 – ENTERPRISE RESOURCE PLANNING Enterprise Resource Planning Core ERP Components Extended ERP Components Integrating SCM, CRM, and ERP Measuring ERP Success Choosing ERP Software ERP and SME Markets In terms of enterprise computing trends, it is important for organizations to keep abreast of technological changes and challenges that affect competitor and consumer behaviours and offer new ways of doing things. This includes continually monitoring and being aware of new innovations in the marketplace. New trends that many enterprises are paying attention to today include going green and leveraging Web 2.0 technologies. Enterprise resource planning (ERP) integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make decisions by viewing enterprise-wide information on all business operations. ERP as a business concept resounds as a powerful internal information management nirvana: Everyone involved in sourcing, producing, and delivering the company’s product works with the same information, which eliminates redundancies, reduces wasted time, and removes misinformation.
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Learning Outcomes Explain what enterprise computing challenges are happening in organizations today (e.g., innovation, going green, social networking, and virtual worlds). Describe enterprise resource planning as a management approach and how information systems can help promote ERP. Describe the components of ERP systems and the differences between them. Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems together. Explain how an organization can measure ERP success, choose ERP software, and use ERP in SME markets. A detailed review of the learning outcomes can be found at the end of the chapter in the textbook in the section headed, “Summary of Key Themes”.
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ENTERPRISE COMPUTING CHALLENGES
SECTION 7.1 ENTERPRISE COMPUTING CHALLENGES CLASSROOM OPENER GREAT BUSINESS DECISIONS – Warren Buffet Decides to Invest in Berkshire Hathaway In 1962, Warren Buffett decided to invest in an ailing textile company called Berkshire Hathaway. Today, the company has a market capitalization of $60 billion, and Buffett is recognized as one of the greatest investors of all time. Buffett believes in focused investing and believes that all investors should look at five features: The certainty with which the long-term economic characteristics of the business can be evaluated The certainty with which management can be evaluated, both as to its ability to realize the full potential of the business and to wisely employ its cash flows The certainty with which management can be counted on to channel the reward from the business to the shareholders rather than to itself The purchase price of the business The levels of taxation and inflation that will be experienced and that will determine the degree by which an investor’s purchasing-power return is reduced from his gross return Overall, Buffett uses information from every source to analyze and evaluate an investment. Without looking at a business from every angle, internally and externally, including customers, partners, and suppliers, it is impossible to gain an accurate assessment of the business. If a person could capture Warren Buffett’s “know how” and put it in a data warehouse, they could make a small fortune. One of the greatest benefits of an ERP system is helping people understand how the organization is performing from an enterprise perspective. ERP systems provide organizations with information that was previously difficult if not impossible to obtain allowing the organization to perform more efficiently and effectively. Better performance usually means higher profits, which pleases stakeholders and investors. CLASSROOM EXERCISE Designing a Digital Dashboard for an ERP System Digital dashboards offer an effective and efficient way to view enterprise-wide information at near real-time. According to Nucleus Research, there is a direct correlation between use of digital dashboards and a company’s’ return on investment (ROI), hence all executives should be using or pushing the development of digital dashboards to monitor and analyze organizational operations. Break your students into groups and ask them to develop a digital dashboard for an ERP system. Review the digital dashboards in the text. Be sure your students have addressed all of the following in their digital dashboard: Accounting Finance Logistics Production Distribution Manufacturing Human resources SCM CRM
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Introduction Technology will impact business in the future more extensively than anything since the Industrial Revolution through: Innovation Social Responsibility Social Networks 7.1 Staying aware and reacting to new technological trends help a firm function competitively and strategically in the marketplace. Being innovative has been advantageous for many firm in today’s business environment and what firms need to do to be innovative and what the trends are important in today’s business environment. The green movement and social entrepreneurship, social networking, and virtual worlds are some of the trends that today’s student needs to be aware of.
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Innovation: Finding NEW
The introduction of new equipment or methods. 7.1 Six Best Practices of Innovation Find a Relevant Edge: The edges that test and push current performance, such as how to better serve the most demanding customers. Assemble innovation hothouses: Attract motivated groups of people who learn from each other and push each other to a higher level of performance. Reward risk takers: Provide an environment to take considered risks and reward failures that from which lessons are learned as well as rewarding successes. Celebrate diversity: Differences create edgy cultures. Innovation comes from uniting two diverse ideas. Look around: Find ways to appropriate insights from adjacent disciplines or remote areas of activity. Mix practitioners and developers: When experienced business practitioners engage with technology, they will evolve their practices to use it better and a performance breakthrough will occur. Figure 7.1
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Social Responsibility
Implies the individual or organization sees their responsibility to society at large. Corporate Policy Reflects the position a company takes on social and political issues. Sustainable or “Green” Describes systems that minimize damage to the environment. 7.1 The major human-generated greenhouse gases, such as carbon emissions from energy use, are very likely responsible for the increases in climatic temperature over the past half a century. Additional temperature increases are projected over the next hundred years, with serious consequences for Earth’s environment, if greenhouse gas emissions are not reduced. When left on continuously, a single desktop computer and monitor can consume at least 100 watts of power per hour. To generate that much energy 24 hours a day for a year would require approximately 714 pounds of coal. When that coal is burned, it releases on average 5 pounds of sulfur dioxide, 5 pounds of nitrogen oxides, and 1,852 pounds (that is almost a ton) of carbon dioxide. Ask your students if they every consciously choose a product because it is environmentally friendly. How did they know they were making a “green” choice? Ask students if organizations have a greater responsibility to “society” and should ensure in every way that their processes are “green”, or, to their shareholders in providing them with higher profits rather than incurring higher expenses to do more than is legally required.
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Energy Consumption Throughput Computing Virtualization
Chip manufacturers focused not only on processing power but also the amount of energy being consumed. Virtualization A framework of dividing resources of a computer into multiple execution environments. Manage multiple programs on a single machine, maximizing hardware and reducing energy. Government Involvement Energy Rebates Limits on carbon emissions Alternative Energy Sources 7.1 Government of Ontario offers incentives to businesses and households to use energy at off peak periods of time, switch to lower energy (and water) consuming appliances and switch to “cleaner” energy sources among other energy conservation initiatives. Have students research what their municipality and province can do for them and for business to lower energy costs.
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Energy Consumption Breakdown of Power Usage in The Typical Data Centre
7.1 Computer servers in the United States account for about 1 percent of the total energy needs of the country. Put in perspective, this is roughly equivalent to the energy consumption of the state of Mississippi. Computers consume energy even when they are not being used. For convenience and to allow for automatic updates and backup, the majority of computer equipment is never completely shut down. It draws energy 24 hours a day. Some initiatives to improve sustainability include: Hewlett-Packard introduced several programs to improve energy efficiency and recycling of computer components. Sun Microsystems create servers that consume 30-80% less energy for the amount of work processed. Figure 7.2
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Recycle IT Equipment Ewaste
Refers to discarded, obsolete or broken electronic devices Sustainable IT disposal The safe disposal of MIS assets at the end of their life cycle. Provincial governments levy recycling surcharges on the purchase of electronic equipment. New manufacturing regulations to create products that reduce waste Electronic Product Stewardship Canada (EPSC) An industry association that educates and encourages e-waste control Recent International laws restrict the use of hazardous materials. 7.1 Moore’s Law has made technological devices smaller, cheaper, and faster, allowing more people from all income levels to purchase computing equipment. This increased demand is causing numerous environmental issues. Ewaste includes CDs, DVDs, thumb drives, printer cartridges, cell phones, iPods, external hard drives, TVs, VCRs, DVD players, microwaves, and so on. EU Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment, took effect July 1, 2006
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Examples of Provincial E-Waste Recycling Programs
7.1 Alberta British Columbia Nova Scotia Ontario Saskatchewan Classroom exercise: Divide students into groups and assign the web sites. Have students report back on what how each province defines e-waste, what guidelines are in place for each category and the penalties for not complying to the legislation. Figure 7.3
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Green IT Use outside air for cooling. Cool high-density areas.
Ways to Save Energy in a Data Centre 7.1 Use outside air for cooling. Cool high-density areas. Incorporate cooling solutions. Use server power management. Buy high-efficiency power supplies. Use virtualization to consolidate servers. Ask students what ways they save energy at home and at school. How can these be transferred to a data centre? Figure 7.4
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Businesses and Social Networks
Passive Search Finding people for new jobs who are happy and productive where they are by using business networking sites. Boomerangs Former employees returning to old jobs. Marketing Networks Help businesses find employees but also suppliers, partners and needed resources Forging communities among current and would-be customers 7.1 reports that in May 2013 there were over 7 million Canadian users of Linked In. Ask students to consider what the advantages are to using social networks instead of a search firm (head hunter) to fill vacant positions? Answers could include cost (no 15% of first year’s salary to pay for search), broad geographic sweep, self-selection by the potential employees at a time that is convenient to them as opposed to embarrassing recruitment calls at work.
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Virtual World It’s a Whole New World 7.1 Figure 7.5
Virtuality is the theme of Web 2.0. Ask students what the term means to them or have them look up the definition and provide person examples of virtual experiences. Have they ever taken courses from a virtual classroom, played computer games in a virtual environment? Figure 7.5
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Virtuality Virtual Workforce Tools for the Virtual Workforce
Allowing employees to work away from the office. Lowers fuel emissions, lower costs, increases productivity. Tools for the Virtual Workforce M-commerce (mobile commerce) provides purchasing capability through an Internet-enabled device Telematics is the blending of computers and wireless telecommunications Electronic tagging identifies and tracks assets and individuals through RFID and smart cards. Virtual World While not as popular as in previous years, websites provide places for virtual meetings, events & virtual experiences 7.1 Experience Virtual “products” include fashions, games and even pets.
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OPENING CASE QUESTIONS Shell Fuels Productivity with ERP
How can large organizations like Shell use innovation to fuel productivity? What advantages are there for Shell to recycle its IT equipment? How might recycling IT equipment potentially be threatening to Shell? How could Shell use social networking to boost productivity and increase profits? How might Shell use virtual worlds such as Second Life to make the company more successful? Give specific examples. OPENING CASE STUDY QUESTIONS Shell Canada Fuels Productivity with ERP How can large organizations like Shell Canada use innovation to fuel productivity? Answers will vary but the case does put forward a number of examples where innovation through the ERP has helped Shell Canada become more productive. One example of this is the invoices that come from contractors. What advantages are there for Shell Canada to recycle its IT equipment? How could recycling IT equipment be potentially threatening to Shell Canada? Recycling of IT equipment first reduces Shell Canada’s environmental footprint by diverting the old equipment from the waste stream and second much of this equipment finds its way to organizations in need of equipment that cannot afford it; this promotes Shell Canada as a good corporate citizen. However, there is also a potential threat from the equipment not being prepared right during recycling and the potential for the leaking of sensitive information. How could Shell Canada use social networking to boost productivity and increase profits? Answers will vary but should focus on the fact that the new generation of workers already work this way (they use social networking as part of their daily life) and adding it to the workflow would boost productivity by giving employees a familiar way to network within the company. How might Shell Canada use virtual worlds such as Second Life to make the company more successful? Give specific examples. Answers will vary but the answers and examples should relate to Shell Canada’s core business opportunities which are upstream oil and gas exploration, refining, and service stations. The question also forces students to do some research on what virtual worlds are in today’s Internet environment with the decreased popularity of Second Life.
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ENTERPRISE RESOURCE PLANNING
SECTION 7.2 ENTERPRISE RESOURCE PLANNING Data Warehousing CLASSROOM OPENER ERP Failures Blaming ERP for the "pickle" that many a company who has implemented ERP find themselves in is like blaming the CAD package for a poorly architected building. Like just about everything else, IT-enabling business processes is about using the right tools for the right reasons and executing.
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Introduction Enterprise Resource Planning (ERP) Legacy Systems
Integrates all departments and functions into a single information system Employees can make decisions by viewing enterprise-wide data Legacy Systems Older computer systems that remain in use because they Still do the job they were designed to do Respond adequately to needs Are overall cheaper than expensive replacements Functional Systems An Information System that serves a single business unit Not integrated with other units 7.2 An example of a household legacy system may be the land line wall telephone that only handles synchronous voice calls. Even when it is connected to an answering machine, it can’t interact with any other technology. Consider the smart phone. Not only can it be connected to a computer to save pictures, songs and other files, it can be connected through the computer to an HDTV. Social networking, video streaming, voice calls etc. can all be done and synched on any of the electronic devices.
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ERP Advantages 7.2 Reasons why ERP Systems Are Powerful Organizational Tools 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. Figure 7.6
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Incompatible Data Sales Data Sample Accounting Data Sample 7.2
From Figure 7.7 Accounting Data Sample Have students review the data and identify points of incompatibility. Some examples are: The date formats are different from each other. The table in Figure 7.7 contains more information than in Figure 7.8. Quantity and unit cost formats are different and contain more information in Figure 7.7. Figure 7.7 is not normalized (is a flat file) and Figure 7.8 is a relational table. Other anomalies exist. What potential problems does this create? From Figure 7.8
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Integration Through ERP
Enterprise Resource Planning Systems 7.2 Suggest a manufacturing business such as jeans or cell phone devices to students and have them list types of information found in the reports at the right hand size and the source of the data from the functions on the left to demonstrate the importance of real time integration of data through a shared database in an ERP system. Figure 7.9
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The Heart of ERP ERP Integrated Data Flows 7.2 Figure 7.10
Enterprise systems can manage information across the entire enterprise allowing users to view every detail of business operations Enterprise systems are often available as a generic, but highly customizable, group of programs for business functions such as accounting, manufacturing, and marketing Figure 7.10
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Order to Cash ERP Process
ERP Process Flow 7.2 In this Order to Cash cycle, have students identify the type of data that is flowing in each step. What function is performed by the central database? Figure 7.11
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Before ERP The Organization Before ERP with Functional “Silos” 7.2
Why do organizations need integrations, if an ERP system contains one database that connects all applications together? Most organizations operate functional “silos”, and each department typically has its own systems A company might purchase an ERP and then all of the functional silos would be on one system; however, this doesn’t happen very often in the real world Most organizations require anywhere from 10 to 100 to 1,000 different systems to run their business Finding one system that could meet all the needs of an entire organization from billing to sales is almost impossible, “sort of a utopia” An organization can purchase an ERP and still have other applications running parts of its business (for example, taxation packages) that are not supported, or not supported well, by the ERP system Figure 7.12
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After ERP The Integrated Organization After ERP 7.2 Figure 7.13
CLASSROOM EXERCISE SIMULATION: Lemonade Tycoon This simulation is excellent for teaching ERP!! Figure 7.13
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Extended ERP The Evolution of ERP 7.2 Figure 7.14
Have students consider how an effective ERP system can provide customer benefits. Some examples might include: Using a terminal in Chapters to determine if a book is in stock or can be ordered from another location. Tracking a parcel through Canada Post or FedEx. On-line banking with pending credit card purchases listed immediately upon purchase. Figure 7.14
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Core Components of ERP Core ERP Components and Extended ERP Components
7.3 Integrations are achieved by using middleware Middleware translates information between disparate systems Have student look up “middleware” and “mash ups” and provide business examples. Figure 7.15
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Accounting & Finance ERP Components
Manage a wide range of financial functions including general ledger, A/P, A/R, budgeting & asset management. Includes a credit-management function setting and monitoring credit limits, product profit analysis and real-time customer account balances Performs advanced profitability modelling. 7.3 Have students consider the advantages that the Accounting and Finance components provide the Sales Order desk. What other functions in the organization depend on dynamic accounting and financial updates to function efficiently and effectively?
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Production & Materials Management
The Production Planning Process 7.3 Handles production planning & execution from demand forecasting to quality control. Each component is integrated in real-time to reduce excess or insufficient inventory, delayed production etc. The classic example of what production and materials management integration can do for a company is Walmart. Costs dropped dramatically and were passed on to consumers in lower prices which ultimately undercut the competition to such an extent that major national retailers went bankrupt in the face of Walmart’s advance. While the integration was through EDI rather than ERP, it is a testament to systems integration. Figure 7.16
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Human Resources ERP Component
Tracks employee data Manages payroll, benefits, compensation, performance assessment, and assures legal compliance Identifies individual employees for training, rewards or disciplinary purposes Analysis including productivity assessments, salary trends, health and safety metrics etc. 7.3 HR components integrate with accounting for budget management and forecasting and with production management for scheduling and productivity analysis. What other ways would the HR components integrate with other business processes?
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Extended ERP Components
Business Intelligence Information used to support decision-making Summarizes data, uses analytical tools to turn data into information Customer Relationship Management Identifies the relative value of each customer Uses data to provide information on customer preferences and to improve customer experience to maintain customer loyalty Supply Chain Components SCM (Supply Chain Management) manages data flows through the distribution stages to maximize profitability Helps with planning, scheduling and controls of supply and delivery 7.3 This is a good time to readdress Porter’s Five Forces Model Ask your students to diagram Porter’s Five Forces and then walk-thru each of the above bullets and explain how SCM is causing this effect Considerable evidence shows that this type of supply chain integration results in superior supply chain capabilities and profits. CLASSROOM EXERCISE Near Beer Supply Chain Game This is an excellent exercise for students who are just learning about the supply chain.
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E-business ERP component
The newest extension of ERP is to move outside the organization and connect to the organization’s stakeholders E-logistics manages the transportation and storage of goods. E-procurement is the business-to-business purchase and sale of supplies and services Together they fulfill business orders effectively using the Web Can provide stakeholders with useful data to improve service such as inventory levels, forecasts, invoice reconciliation Disadvantages of e-business ERP include rigid processes, costs of implementation and training, security risks in trusting outside organizations with proprietary data 7.3 Nestle’s user friendly description SCM and the advantages of it as a career choice is
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Integrating SCM, CRM, and ERP
Primary Users and Business Benefits of Enterprise Applications 7.4 See Text Section Integrating SCM, CRM and ERP for an excellent example of the value in integrating the backbone components of ERP using Del Monte’s experience. Figure 7.17
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Integration Tools Integrations between SCM, CRM and ERP Applications
7.4 Companies run on interdependent applications. If one application of the company does not function well, the entire customer value delivery system is affected. The world-class enterprises of tomorrow must be built on the function of world-class applications implemented today. Figure 7.18
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Integration Tools The Four Primary Perspectives of the Balanced Scorecard 7.4 The balanced scorecard is a management system, (in addition to a measurement system), that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise Have student click on the balanced scorecard organization’s link to its success stories: The balanced scorecard views the organization from four perspectives, and users should develop metrics, collect data, and analyze their business relative to each of these perspectives: The learning and growth perspective. The internal business process perspective. The customer perspective. The financial perspective Figure 7.19
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Finding the Right ERP Solution
Successful projects share three basic attributes: Overall fit between the system and the business process. Proper business analysis Solid implementation plans. Three methods of implementation include: Turnkey(off the rack/off the shelf) Systems that have been previously designed and fit the business requirements. Usually for minor implementations. Off the rack/off the shelf tailored to fit Previously designed but still require an investment in implementation Most common Customer Designed Designed from scratch Usually the most expensive 7.5 ERP was first developed in the 1960’s before the wide diffusion of computers across enterprises. It has grown with the technology infrastructure that was necessary to support it. In the 1990’s with the explosive growth of computer systems, ERP was business being incorporated across a wide variety of business types and sizes, sometimes without clear goals and budgets. It was a time of some spectacular crashes costing, in current dollars, in the billions. The textbook lists some examples and their consequences in the section on ERP Failures.
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ERP & the SME Markets The Small & Medium Enterprise Market is different: SME has a greater requirement for affordability and ease-of-use SME’s are unfamiliar with large ERP vendors Limited relationship results in limited trust Canadian SME’s are different that those in the USA and US mid-market solutions don’t work here SME’s purchase through resellers as direct sales are too small to be economical. ERP vendors are used to direct sales. 7.5 Have students provide examples of SMEs and how they might benefit from ERP. Many of the same advantages of data integration that large companies need, will provide a competitive edge for SMEs. Another example comes from independent companies such as independent grocers that come together as associations or cooperatives to improve their bargaining power with suppliers. How could ERP help?
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OPENING CASE QUESTIONS Shell Fuels Productivity with ERP
How did ERP help improve business operations at Shell? How important was training in helping to roll out the system to Shell personnel? How could extended ERP components help improve business operations at Shell? What advice would you give Shell if it decided to choose a different ERP software solution? How can integrating SCM, CRM, and ERP help improve business operations at Shell? OPENING CASE QUESTIONS Shell Canada Fuels Productivity with ERP How did ERP help improve business operations at Shell Canada? ERP helped improve business operations at Shell Canada in a number of ways. The implementation of the system helped Shell to integrate and manage its daily operations. It did this by reducing and streamlining third-party contractors who are required to submit repair information and invoices. This resulted in a reduction of errors in invoices, reducing the hours of labour required to decipher and correct any errors in the invoice. Information was entered immediately and fed to the upstream payment and accounts payable systems. How important was training in helping roll out the system to Shell personnel? Training was crucial in helping roll out the new ERP system to Shell Canada personnel, and also for the third-party contractors who use the system. Formal and informal education helped the end-users understand the mechanics of the system, and helped them to appreciate the benefits and efficiencies the ERP could offer to Shell Canada. This helped promote end-user acceptance, and helped employees to effectively use the system in their daily work. How could extended ERP components help improve business operations at Shell Canada? The four most common extended ERP components are business intelligence, customer relationship management, supply chain management and e-business. Business intelligence can help Shell measure and control organizational operations by helping people make decisions through organizing and applying analytical tools to the data being gathered. Customer relationship management components can help Shell to increase customer loyalty and retention, and improve its profitability. Supply Chain Management components can help Shell to maximize supply chain effectiveness and profitability, by organizing, scheduling, controlling and optimizing the supply chain from its acquisition of raw materials to the delivery of product. E-business components may help Shell with the management of transportation and storage of goods (e-logistics) and the business-to-business purchase and sale of supplies and services over the Internet (e-procurement). What advice would you give Shell Canada if it decided to choose a different ERP software solution? Answers will vary, but all answers should include specifics about the ERP software solutions, including Oracle/PeopleSoft or Siebel. How can integrating SCM, CRM, and ERP help improve business operations at Shell Canada? Answers to this may vary. Supply chain management and customer relationship management are components of an enterprise resource planning system, and so acknowledgement that integrating all of the components of an ERP should be implied in the st
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CLOSING CASE ONE: ERP and Analytics Brings Germany World Cup Success
How can ERP software like SAP help improve business operations of the DFB and German National Team? How can other football organizations like the DFB use innovations like this to fuel better performance by their athletes? What lessons for dealing with the challenges of implementing an ERP information system can be passed to other football organizations adopting this technology? CLOSING CASE ONE ERP and Analytics Brings Germany World Cup Success How can ERP software like SAP help improve business operations of the DFB and German National Team? The case gives a couple of examples, such as ERP helping the DFB manage and improve customer relationships and ticket sales. Like other organizations ERP can potentially also help the DFB improve most business operation areas from things like payroll to its own talent management issues within the business organization. For the German National Team the options are likely more limited and potentially more specialized. The example from the case is on-field talent management but other opportunities may include sponsor and vendor management, travel management, and the complexities involved in managing the players' dual commitments to their regular season teams and the national team. How can other football organizations like the DFB use innovation like this to fuel better performance by their athletes? For this question encourage students to step out of the box. Here are a few ideas. With Germany winning the World Cup in 2014 it is likely that many football organizations around the world will be looking at Germany’s success and their talent management. We are likely to see a significant increase in the use of and further development of programs like Match Insights at the national team and national development team levels. Ideally the innovation will also move to systems that allow for the scouting of young players to move into national development programs. The idea is that countries will be able to identify their best potential players as early as possible and allow them to have the greatest opportunity to develop as players. What lessons for dealing with the challenges of implementing an ERP information system can be passed to other football organizations adopting this technology? Answers will vary but there are a couple key items in the case that are good lessons. The first is that the DFB used established ERP software for things like CRM and ticket sales management and this may have set them up to be more successful once they started working on their talent management. The success of the initial systems would have helped establish an organizational culture that may have made it easier to transition to the development and implementation of the talent management software. The second lesson may be the fact that SAP, the DFB, and the national team worked closely together in developing the talent management software and there was a good understanding of the requirements of the software. One last item is the fact that Germany won the World Cup and that the software helped the national team accomplish this most important goal.
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CLOSING CASE TWO: Campus ERP
How could core ERP components help improve business operations at your school? How could extended ERP components help improve business operations at your school? How can integrating SCM, CRM, and ERP help improve business operations at your school? What lessons for dealing with the challenges of implementing an ERP information system at your school can be learned from this case? CLOSING CASE TWO Campus ERP How could core ERP components help improve business operations at your school? The core ERP components which may improve business operations at our school include accounting and finance, and production and materials management. Accounting and finance components may improve the way that students interact with the system by making simpler interfaces, and decrease the time for things such as approval of student assistance loans. Production and materials management components may help students access online resources required for their classes. How could extended ERP components help improve business operations at your school? The four most common extended ERP components are business intelligence, customer relationship management, supply chain management and e-business. Business intelligence can help my school measure and control organizational operations by helping people make decisions through organizing and applying analytical tools to the data being gathered. Customer relationship management components can help my school to increase student loyalty and retention. Supply Chain Management components can help my school to maximize supply chain effectiveness and profitability, by organizing, scheduling, controlling and optimizing the supply chain from its acquisition of raw materials to the delivery of product. E-business components may help my school with the management of transportation and storage of goods (e-logistics) and the business-to-business purchase and sale of supplies and services over the Internet (e-procurement). How can integrating SCM, CRM, and ERP help improve business operations at your school? Answers to this may vary. Supply chain management, customer relationship management are components of an enterprise resource planning system, and so acknowledgement that integrating all of the components of an ERP should be implied in the students’ answer. What lessons for dealing with the challenges of implementing an ERP information System at your school can be learned from this case? Answers to this may vary. Make sure that the student justifies their discussion. Many students may view the system from a students’ point of view, however you might remind them that many people interface with the system, so administrative staff, faculty and support personnel may have different ideas about what the most important component might be. Also the relative success of the implementation at the student’s particular school will also play a role in the answer.
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CLOSING CASE THREE: Intuitive ERP
How well do the components of the Intuitive ERP software product align with the ERP components described in this chapter? What advantages did Fibre Connections and Westwinn Group Corp. realize with the introduction of Intuitive ERP? How well do these advantages resonate with the benefits of ERP described in this chapter? CLOSING CASE THREE Intuitive ERP How well do the components of the Intuitive ERP software product align with the ERP components described in this chapter? The ERP software product Intuitive aligns with both core and extended ERP components, such as ERP, CRM, business intelligence and e-commerce. What advantages did Fibre Connections and Westwinn Group Corp. realize with the introduction of Intuitive ERP? How well do these advantages resonate with the benefits of ERP described in this chapter. Fibre Connections and Westwinn Group Corp. both realized reduction in administrative personnel (Fibre Connections – 2 to 5, Westwinn – 1 to 2) and they were both able to manage and track inventory more effectively. Fibre Connections site an increase in customer satisfaction, and an improvement in on-line deliveries, while Westwinn Group Corp. indicated they experienced improved accuracy of their bills of materials and shop pick lists, and the ability to provide cross-training to personnel because everyone used the same system.
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CLOSING CASE THREE: Intuitive ERP
The successful implementation of Intuitive ERP described above does not speak of any negative outcomes or drawbacks of introducing a new enterprise-wide information system in an organization. What challenges do you envision would occur in a company that decides to introduce such large-scale change? What drawbacks, if any, are there in adopting a software solution from a single vendor that serves such a critical and important role in an organization? How might one mitigate or lessen these drawbacks? CLOSING CASE THREE Intuitive ERP The successful implementation of Intuitive ERP described above does not speak of any negative outcomes or drawbacks of introducing a new enterprise-wide information system in an organization. What challenges do you envision would occur in a company that decides to introduce such large-scale change? What drawbacks, if any, are there in adopting a software solution from a single vendor that serves such a critical and important role in an organization? How might one mitigate or lessen these drawbacks? Answers to these questions may vary, however students might review and consider some of the problems outlined in closing case one, at Stanford
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