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Chapter 12

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Chapter 12

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  1. Chapter 12 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. Enterprise Resource Planning (ERP) • 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

  4. Enterprise Resource Planning (ERP) • ERP systems automate business processes

  5. Enterprise Resource Planning (ERP) • ERP systems must integrate various organization processes and be: • Flexible • Modular and open • Comprehensive • Beyond the company

  6. 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

  7. 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

  8. The Connected Corporation • SCM and CRM market overviews

  9. 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 – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors

  10. Integrating SCM, CRM, and ERP • General audience and purpose of SCM, CRM and ERP

  11. Integrating SCM, CRM, and ERP • Data points where SCM, CRM, and ERP integrate

  12. OPENING CASE STUDY QUESTIONSGearing Up At REI • Explain how an ERP system can help REI gain business intelligence in its operations • Assess the business benefit for REI in integrating its CRM, SCM, and ERP systems

  13. CHAPTER TWELEVE CASEHilton 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

  14. Chapter Twelve 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 Hotels wanted to add an additional Oracle component? Evaluate the business benefit of this additional component

  15. Chapter Twelve Case Questions • Analyze why it is critical for an organization like Hilton Hotels to have an enterprisewide system • Assess the benefits Hilton Hotels could receive from implementing an integrated SCM, CRM, and ERP solution

  16. BUSINESS DRIVEN TECHNOLOGY UNIT THREE CLOSING

  17. UNIT CLOSING CASE ONE Dell’s Famous Supply Chain • Identify a few key metrics a Dell marketing executive might want to monitor on a digital dashboard • Determine how Dell can benefit from using decision support systems and executive information systems in its business • Describe how Dell has influenced visibility, consumer behavior, competition, and speed though the use of IT in its supply chain

  18. UNIT CLOSING CASE ONE Dell’s Famous Supply Chain • Explain the seven principles of SCM in reference to Dell’s business model • Identify how Dell can use CRM to improve its business operations • Explain how an ERP system could help Dell gain business intelligence

  19. UNIT CLOSING CASE TWORevving Up Sales at Harley Davidson • Explain how Talon helps Harley-Davidson employees improve their decision-making capabilities • Identify a few key metrics a Harley-Davidson marketing executive might want to monitor on a digital dashboard • Determine how Harley-Davidson can benefit from using decision support systems and executive information systems in its business • How would Harley-Davidson’s business be affected if it decided to sell accessories directly to its online customers? Include a brief discussion of the ethics involved with this decision

  20. UNIT CLOSING CASE TWORevving Up Sales at Harley Davidson • Evaluate the HOG CRM strategy and recommend an additional benefit Harley-Davidson could provide to its HOG members to increase customer satisfaction • How could Harley-Davidson’s SCM system, Manugistics, improve its business operations? • Provide a potential illustration of Harley-Davidson’s SCM system including all upstream and downstream participants • Explain how an ERP system could help Harley-Davidson gain business intelligence in its operations