Indian Institute of Management Bangalore, India
Enterprise Resource Planning (Elective)
Credits: 3
Instructors:
D.Krishna Sundar & Team of Guest Faculty
E-mail: diatha@iimb.ernet.in, Extn.3276 (O)
Office: E-Block: #106
Secretary: Shanthakumari, Extn. 3278
1.0 Course objective:
The objective of this course is to expose students to the concepts of Business Process
Management (BPM) & Enterprise Resource Planning (ERP) that address the inter-functional
comprehensive view of an enterprise. ERP systems integrate the information across the
functions of the organization such as accounting, finance, marketing, production, and human
resource development. ERP systems also embed the organizational processes leading to process
discipline. Backed with integrated information systems and tightly integrated processes, ERP
systems effectively support managerial decision-making. The ERP backbone creates a
supporting backbone for enterprise application(s) integration (EAI).
Broadly understanding
- Business process, process re-engineering & business process management (BPM)
- Architecture of ERP Systems, inputs and outputs of ERP systems,
- Important considerations in choosing an ERP system
- Issues in ERP s/w implementation project cycle
- Learning features of one of the world class ERP s/w (in this elective – SAP)
are the main themes of this course.
This course aims to highlight the integration of business processes and computer applications
across business functions and also demonstrates how organizations are represented in an ERP
system and features of such s/w packages (from managerial and technical perspective) very
broadly. Towards achieving this objective, we use SAP R/3 Ver.4.6c software based assignments
and the group project to deliver the requisite concepts.
2.0 Course content:
This elective course consists of four modules. The first module will be BPM & ERP
overview; the second module deals with the specific functional module. The third module deals
with ERP project consulting issues. The last module deals with the students’ project. Modules I,
III and IV are common to all, and Module II of the course is specific to each functional
module. This Course has four streams of functional specializations viz., Sales & Distribution
(SD), Production Planning (PP), Materials Management (MM), Finance and Control (FICO).
Group Project is a major component of the course work and also its evaluation. The students are
expected to form implementation groups to map a given industry situation on to SAP –R/3 and
have to submit the implementation project report, besides demonstrating their implementation on
SAP-R/3.
3.0 Course outline - Topics to be covered
Module I: 8 Sessions; Module II: 8 Sessions; Module III: 2 Sessions; Module IV: 2 Sessions
Module I - ERP & BPM Over View: 8 Sessions
 ERP Introduction
 Business Process Reengineering
 Business Process Management




ERP Products and Features, New dimension Products
ERP Project Implementation Methodologies
The people side of ERP
Overview of Functional Modules in SAP-R/3
Module II – Functional Module (MM, PP, SD & FI/CO): 8 sessions
 Organizational structures
 Master data
 Some standard processes
Module III - ERP: Implementation & Consulting Services Issues: 2 Sessions
 Implementation Processes
 Implementation & Customization Issues
 Consulting services/Issues in ERP Project life cycle
Module IV - ERP: Project Presentations: 2 Sessions
3.1 Readings§
Module I - ERP Over View: 8 Sessions
Week 1
Sessions 1&2:
 Introduction
 Elements of an IT Solution
 Issues in business process reengineering
Readings:
1. Trends in Management: Revolutionary Enterprise Structures
2. ERP Modules and Historical Development
3. Business Process Reengineering & Best Practices
Reference Article(s):
1. From Ledgers to ERP
Ricardo Salim & Carlos Ferran
2. BPR & ERP: Weapons for the Global Organization
Marianne Bradford, Robert Gingras & Jonathan Hornby
3. Reengineering a Business Process, Thomas H.Davenport , HBS Publishing
4. Business Process Reengineering: Its Past, Present and Possible Future, Thomas
H.Davenport , HBS Publishing
5. IT Doesn’t Matter , Nocholas G.Carr , HBS Publishing
6. Does IT Matter- An HBR Debate, HBS Publishing
Week 2:
Sessions 3&4
 MRP to ERP
 Features of ERP Framework(s)
 ERP & b2b integration
 Supply chain Management & APO
Readings:
1. Material Requirements Planning
§
Some of the suggested readings may get added/deleted
2.
3.
4.
5.
6.
7.
8.
9.
Master Production Scheduling
Caselet: Tristar
Case: World Wide Technology and Clear Orbit: Enabling Supply Chain Collaboration
MICSS Simulator: The smart industries Inc.Case study
Supply Chain Management Projects with APO
SCM Processes & APO Modules
APO Architecture
Case studies: Scheduling of Synthetic Granulate, Semiconductor Manufacturing,
Computer Assembly, Food & Beverages
References Material:
1. Enterprise Resource Planning, Robert D.Austin et al., HBS Technology Note
2. Enterprise Resource Planning: Common Myths Versus Evolving Reality, Vincent
A.Mobert et al., Kelly School of Business, HBS Publishing
3. Enterprise Systems as an Enabler of Fast-Paced Change: The case of Global B2B
Procurement in Ericson, Lorenzo & Diaz
Week 3
Sessions 5&6:
 Business Process Management
 Introduction to “Control” (BPM tool) & using BPM in an organization
Readings:
1. Process Mapping with Control (Handout)
2. Business Process Management (handout)
Reference Material:
1. Online documentation of Control
Week 4:
 Enterprise software selection
 ERP Implementation
 Introduction to SAP R/3
Readings
1. Case: Harley-Davidson Motor Company
2. A framework for the ex-ante evaluation of ERP software
3. Measuring the performance of ERP Software
4. A taxonomy of ERP implementation approaches
5. Managing Complexity in implementing ERP projects
Reference Material:
Second-wave ERP systems implementing for effectiveness (book)
Module II – Functional Module (MM, PP, SD & FI/CO): 8 sessions
Week 5
 Organization structure
 Master data – Features & Creation of Master data
Week 6
 Master data – Issues
 Core Processes
Week 7
 Core Processes
Week 8
 Core Processes
 Process Integration Issues
Reading Reference Material:
SAP R/3 4.6 c online help documentation of IDES
Module III - ERP: Implementation & Consulting Services Issues: 2 Sessions
Week 9
 ERP Project Management & Implementation Issues
Readings
1. Case: Cisco Systems, Inc., Implementing ERP
2. Case: Tektronix, Inc.: Global ERP Implementation
3. ERP implementations: Lessons from a case study
4. ERP implementation failure: A case study
5. National differences and ERP implementation: Issues and challenges
Reference
1. Implementing ERP Systems in Multinational Projects
2. Success Factors for global implementation of ERP S/W
3. The trouble with enterprise software – MIT Sloan Management Review
Module IV - ERP: Project Presentations: 2 Sessions
Week 10
 Project Presentations
4.0 Course evaluation:
Case analysis
MICSS (Factory Simulator)
BPM-Control Exercise
Project
10%
10%
30%
50% (Presentation 25% & report 25%)
References:
SAP R/3 4.6 c online help documentation of IDES
SAP R/3 Process Oriented Implementation – Keiler & Tufley, Addison Wesley
Enterprise Resource Planning & Beyond – Langenwalter, St.Lucie Press
Manufacturing Planning & Control Systems – Vollman et.al, TMH Publications