BUSINESS DRIVEN
TECHNOLOGY
Chapter Twelve:
Integrating the Organization
from End to End
– Enterprise Resource Planning
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
CHAPTER TWELEVE OVERVIEW
• Enterprise resource planning systems serve as the
organization's backbone in providing fundamental
decision-making support
• This chapter discusses
– ERP’s explosive growth
– Using ERP to connect corporations
– Integrating SCM, CRM, and ERP
CHAPTER TWELEVE OVERVIEW
• 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
CHAPTER TWELEVE OVERVIEW
• ERP systems can automate business processes
CHAPTER TWELEVE OVERVIEW
• ERP systems must integrate various organization
processes and be:
– Flexible
• to changing needs of enterprise
– Modular and open system architecture
• Interfaced with and detached whenever is required
• Support multiple hardware platform
– Comprehensive
• to support a variety of organizational functions and wide
range of organization
– Beyond the company
• On line connectivity to customers or business partners
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
THE CONNECTED CORPORATION
• Top three ERP vendors and their major components
THE CONNECTED CORPORATION
• SCM, CRM, and ERP are the backbone of ebusiness
• 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
THE CONNECTED CORPORATION
• SCM and CRM market overviews
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 –
represents a new approach to middleware by packaging together
commonly used functionality, such as providing prebuilt links to
popular enterprise applications, which reduced the time
necessary to develop solutions that integrate applications from
multiple vendors
INTEGRATING SCM, CRM, AND ERP
• General audience and purpose of SCM, CRM and
ERP
INTEGRATING SCM, CRM, AND ERP
• Data points where SCM, CRM, and ERP integrate
Opening Case Study Questions
Revving Up Sales at Harley-Davidson
1. Explain how an ERP system can help
Harley-Davidson gain business intelligence
in its operations
2. Assess the business benefit for HarleyDavidson in integrating its CRM, SCM, and
ERP systems
CHAPTER TWELEVE CASE
Hilton 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
CHAPTER TWELEVE CASE QUESTIONS
1.
Summarize why the merger of two separate corporations can
cause significant issues for the integration of information
2.
Which component would you recommend if Hilton wanted to add
an additional PeopleSoft component? Evaluate the business
benefit of this additional component
3.
Analyze why it is critical for an organization like Hilton Hotels to
have an enterprisewide system
4.
Assess the benefits Hilton Hotels Corporation could receive from
implementing an integrated SCM, CRM, and ERP solution
BUSINESS DRIVEN
TECHNOLOGY
UNIT THREE CLOSING
Unit Closing Case One
Building LEGO’s IT Systems One Block at a Time
1. Summarize why LEGO’s managers and
executives would want to use DSSs and EISs to
gain business intelligence
2. Prototype a potential digital dashboard for a sales
executive at LEGO
3. Describe a supply chain and explain why
managing it is important to LEGO’s business
Unit Closing Case One
Building LEGO’s IT Systems One Block at a Time
4.
Summarize customer relationship management and
explain how LEGO could use CRM to enhance its
business
5.
Is it ethical for an employee at LEGO to sell the
organizational information stored in its i2 system?
6.
One of the challenges facing LEGO is its ability to
forecast demand. Explain how implementing the ERP
solution from i2 has helped the company improve its
demand forecasting
Unit Closing Case Two
eBay’s Cosmos Business Intelligence System
1.
Explain why eBay’s managers and executives decided to
create the Business Intelligence Team
2.
Define five types of information that eBay executives
might want on their EISs
3.
Determine the strategy eBay is taking regarding its
supply chain
4.
Assess the business benefits from implementing an
analytical CRM solution at eBay
Unit Closing Case Two
eBay’s Cosmos Business Intelligence System
5.
Which component would you recommend eBay
purchase if the company was interested in adding an
additional ERP component?
6.
One of the key success factors of Cosmos is its ability to
provide a better understanding of customer activity,
which allows eBay to improve customer experiences
making eBay a safer place to buy/sell practically
anything. Explain why eBay’s unique business structure
causes safety and security concerns for its customers
7.
What types of security issues should eBay be concerned
with and what can it do to protect itself?