BUSINESS PLUG-IN B10

1. 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 ONEPepsiAmericas’ 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 B10.6. 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 TWOCampus 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?