CHAPTER 10
ENTERPRISE
RESOURCE
PLANNING AND
COLLABORATION
SYSTEMS
McGraw-Hill/Irwin
©2008 The McGraw-Hill Companies, All Rights Reserved
10-2
CHAPTER TEN OVERVIEW
• SECTION 10.1 - ENTERPRISE RESOURCE
PLANNING
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Enterprise Resource Planning
Core and Extended ERP Components
Core ERP Components
Extended ERP Components
ERP Vendor Overview
ERP Benefits and Risks (Cost)
The Connected Corporation – Integrating SCM, CRM,
and ERP
– The Future of ERP
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CHAPTER TEN OVERVIEW
• SECTION 10.2 – COLLABORATION
SYSTEMS
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Teams, Partnerships, and Alliances
Collaboration Systems
Knowledge Management
Knowledge Management Systems
Content Management Systems
Workflow Management Systems
Groupware Systems
Collaboration Trends
SECTION 10.1
ENTERPRISE
RESOURCE
PLANNING
McGraw-Hill/Irwin
©2008 The McGraw-Hill Companies, All Rights Reserved
10-5
LEARNING OUTCOMES
1. Compare core enterprise resource planning
components and extended enterprise resource
planning components
2. Describe the three primary components found in
core enterprise resource planning
3. Describe the four primary components found in
extended enterprise resource planning systems
4. Explain the business value of integrating supply
chain management, customer relationship
management, and enterprise resource planning
systems
10-6
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
10-8
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
10-10
CORE ERP COMPONENTS
•
Three most common core ERP
components
1. Accounting and finance
2. Production and materials management
3. 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
10-12
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 elogistics 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
10-18
ERP Vendor Overview
• SCM and CRM market overviews
10-19
ERP SOFTWARE
•
Successful ERP projects share 3 attributes
1. Overall fit
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•
•
Off the rack
Off the rack and tailored to fit
Custom made
2. Proper business analysis
•
Successful companies spend up to 10 percent of the
project budget on a business analysis
3. 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
1. Integrate financial information
2. Integrate customer order information
3. Standardize and speed up manufacturing
processes
4. Reduce inventory
5. 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
1. How could core ERP components help improve
business operations at your college?
2. How could extended ERP components help
improve business operations at your college?
3. How can integrating SCM, CRM, and ERP help
improve business operations at your college?
4. Review the different components in Figure 10.14.
Which component would you recommend your
college implement if it decided to purchase an
ERP component?
SECTION 10.2
COLLABORATION
SYSTEMS
McGraw-Hill/Irwin
©2008 The McGraw-Hill Companies, All Rights Reserved
10-31
LEARNING OUTCOMES
5.
Identify the different ways in which
companies collaborate using technology
6.
Compare the different categories of
collaboration technologies
7.
Define the fundamental concepts of a
knowledge management system
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LEARNING OUTCOMES
8.
Provide an examples of a content
management system along with its
business purpose
9.
Evaluate the advantages of using a
workflow management system
10. Explain how groupware can benefit a
business
10-33
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
10-34
TEAMS, PARTNERSHIPS, AND
ALLIANCES
• Collaboration system – supports the work of teams by
facilitating the sharing and flow of information
10-35
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
1. Unstructured collaboration (information
collaboration) - includes document
exchange, shared whiteboards, discussion
forums, and e-mail
2. 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:
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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
1. Explicit knowledge – consists of anything
that can be documented, archived, and
codified, often with the help of IT
2. 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:
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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
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Content management system vendor overview
10-49
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
10-50
WORKFLOW MANAGEMENT
SYSTEMS
• Messaging-based workflow system –
sends work assignments through an email 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
•
E-mail 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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OPENING CASE QUESTIONS
Campus ERP
1. How can a college campus achieve business
success through the use of collaboration
tools?
2. How can your college use knowledge
management systems to improve operations?
3. How can your college use content
management systems to improve operations?
10-56
OPENING CASE QUESTIONS
Campus ERP
4. How can a team of college students use
a workflow management system to
complete a group project?
5. If your college wanted to implement a
groupware system, what would be its
primary purpose?
10-57
CLOSING CASE ONE
DreamWorks
1. How can companies use Halo to increase their
business efficiency?
2. Explain how a company like PepsiCo can use
Halo to gain a competitive advantage in its
industry
3. How can knowledge management be
increased by using a product such as Halo?
10-58
CLOSING CASE ONE
DreamWorks
4. Why would a company like
DreamWorks, that is not IT focused, be
interested in collaboration technology?
5. What are a few of the security issues
surrounding this type of technology?
10-59
CLOSING CASE TWO
Highway Safety
1. How are collaboration tools helping to save
lives in Texas?
2. How could a police department use groupware
to help with collaboration on accident reports?
3. Describe how a police department could use
workflow systems to help with accident reports
and health-care-related issues
10-60
CLOSING CASE TWO
Highway Safety
4. What would be the impact on lives if a state
fails to implement collaboration tools to help
track and analyze highway accidents?
5. How could police departments use wireless
technologies to operate more efficiently and
effectively?
6. What ethical issues surrounding wireless
technologies should police departments
understand?
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CLOSING CASE THREE
Saving Costs at Costco
1. Identify content management and document management
and explain how Costco is using them to improve business
operations
2. Provide an example of a few of the documents that Costco
must maintain electronically
3. How might other Costco departments benefit from a
document management system?
4. The Stellent Imaging and Business Process Management
solution allowed Costco to grow as a company without
increasing expenses. Identify another business that could
benefit form the Stellent Imaging and Business Process
Management Solution