McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All ...
Upcoming SlideShare
Loading in...5
×
 

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All ...

on

  • 917 views

 

Statistics

Views

Total Views
917
Views on SlideShare
917
Embed Views
0

Actions

Likes
0
Downloads
6
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • 1. Compare core enterprise resource planning components and extended enterprise resource planning components Core ERP components include the traditional components included in most ERP systems and they primarily focus on internal operations Extended ERP components include the extra components that meet the organizational needs not covered by the core components and primarily focus on external operations 2. Describe the three primary components found in core enterprise resource planning Accounting and finance components – manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management Production and materials management components – handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control Human resource components – track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities 3. Describe the four primary components found in extended enterprise resource planning systems Business intelligence – describe information that people use to support their decision-making efforts Customer relationship management – involves managing all aspects of a customer’s relationships with an organization to increase customer loyalty and retention and an organization's profitability Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability E-business – means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners
  • 4. Explain the benefits and risks associated with enterprise resource planning systems ERP Benefits: Integrate financial information Integrate customer order information Standardize and speed up manufacturing processes Reduce inventory Standardize human resource information ERP Risks (Costs): Software costs Consulting fees Process rework Customization Integration and testing Data warehouse integration and data conversion 5. Assess the future of enterprise resource planning systems The future of ERP includes: Internet – continue to help organizations integrate data and process across functional departments Interface – customizable employee browsers Wireless technology – support a mobile workforce Lines between SCM, CRM, and ERP will continue to blur
  • This plug-in dives deeper into the details of ERP including: Core ERP components Extended ERP components ERP benefits ERP risks Future of ERP
  • Review the Turner Industries example on page 278
  • Core ERP components – traditional components included in most ERP systems and they primarily focus on internal operations Extended ERP components – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations
  • Accounting and finance components – manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management Production and materials management components – handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control Human resource components – track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities
  • Discuss the Harley-Davidson example on page 279 Credit-management feature set limits on how much a customer can owe at any time Product profitability analysis feature allows companies to perform all types of advanced profitability modeling techniques
  • Discuss the Groupo Farmanova Intermed example on page 280 Discuss Figure B5.2, which highlights the production planning process
  • Features include the ability to perform a detailed employee analysis to discover who is likely to leave the company unless additional compensation or benefits are provided Can also identify employee resource utilization such as employee long distance bills and online training
  • Depending on when you cover this plug-in, these terms may or may not need to be reviewed If you do want to review – simply cut and paste the definitions into the slide above Business intelligence – describes information that people use to support their decision-making efforts Customer relationship management – involves managing all aspects of a customer’s relationships with an organization to increase customer loyalty and retention and an organization's profitability Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability E-business – means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners
  • The original focus of ERP systems was the internal organization In other words, ERP systems are not fundamentally ready for the external world of e-business The newest and most exciting extended ERP components are the e-business components e-logistics and e-procurement
  • Ask your students to identify additional ERP benefits not highlighted in Figure B5.3
  • Ask your students to identify additional ERP risks not highlighted in Figure B5.4
  • Case is located on page 286
  • 1. How have core ERP components helped PepsiAmericas improve its business? Core ERP components include the traditional components included in most ERP systems and they primarily focus on internal operations. The three primary core ERP components include: Accounting and finance components – manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management. Production and materials management components – handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control. Human resource components – track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities. 2. How have extended ERP components helped PepsiAmericas improve its business? Extended ERP components include the extra components that meet the organizational needs not covered by the core components and primarily focus on external operations. The four primary components found in extended enterprise resource planning systems include: Business intelligence – describe information that people use to support their decision-making efforts. Customer relationship management – involves managing all aspects of a customer’s relationships with an organization to increase customer loyalty and retention and an organization's profitability. Supply chain management – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. E-business – means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners 3. Explain how future ERP systems will help PepsiAmericas increase revenues The benefits that PepsiAmericas can receive from an ERP system include integrated financial information, integrated customer order information, standardized manufacturing processes, reduced inventory, and standardized human resource information. All of these will help decrease costs, which increase revenues.
  • 4. Assess the impact on PepsiAmericas’ business if it failed to implement the CRM component of PeopleSoft’s ERP system Without a CRM strategy, PepsiAmericas would be unable to determine who its best customers are and what products they are purchasing. With the new ERP system, the company can determine such things as additional sales opportunities. For example, if the customer ordered certain products in the past and there is a promotion going on for a similar product, the agents can offer that to the customers. 5. Review the different PeopleSoft components in Figure B5.5. Which component would you recommend PepsiAmericas implement if it decides to purchase an additional PeopleSoft component? Student answers to this question will vary The important part of their answer will be their justification for why the component will help PepsiAmericas’ business
  • Case is located on page 287
  • 1. Which additional core ERP components would you recommend Ghirardelli implement? Student answers to this question will vary. The important part of their answer will be their justification for why the component will help Ghirardelli’s business. 2. Which additional extended ERP components would you recommend Ghirardelli implement? Student answers to this question will vary. The important part of their answer will be their justification for why the component will help Ghirardelli’s business. 3. How can implementing an Advanced Planning ERP component help Ghirardelli’s business? An advanced planning ERP component will allow Ghirardelli to perform even better forecasting capability.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All ... McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All ... Presentation Transcript

  • BUSINESS DRIVEN TECHNOLOGY Business Plug-In B5 Enterprise Resource Planning
  • 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
  • LEARNING OUTCOMES
    • Explain the benefits and risks associated with enterprise resource planning systems
  • 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
  • CORE AND EXTENDED ERP COMPONENTS
    • Core ERP components – traditional components included in most ERP systems and they primarily focus on internal operations
    • Extended ERP components – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations
  • Core and Extended ERP Components
  • CORE ERP COMPONENTS
    • Three most common core ERP components
      • Accounting and finance
      • Production and materials management
      • Human resource
  • CORE ERP COMPONENTS
    • Accounting and finance components – manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management
  • CORE ERP COMPONENTS
    • Production and materials management components – handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control
  • CORE ERP COMPONENTS
    • Human resource components – track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities
  • EXTENDED ERP COMPONENTS
    • Extended ERP components include:
      • Business intelligence
      • Customer relationship management
      • Supply chain management
      • E-business
  • EXTENDED ERP COMPONENTS
    • E-business components include
    • E-logistics 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
  • ERP Benefits and Risks (Costs)
    • ERP Benefits
  • ERP Benefits and Risks (Costs)
    • ERP Risks
  • Closing Case One PepsiAmericas’ Enterprises p 286
    • 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
  • 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
  • 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 B5.5 p 284. Which component would you recommend PepsiAmericas implement if it decides to purchase an additional PeopleSoft component?
  • Closing Case Two Demanding Chocolate p 287
    • Ghirardelli is the longest continuously operating chocolate manufacturer in the Untied States
    • Ghirardelli improved inventory management and profitability through the implementation of an ERP system
  • Closing Case Two Questions
    • Which additional core ERP components would you recommend Ghirardelli implement?
    • Which additional extended ERP components would you recommend Ghirardelli implement?
    • How can implementing an Advanced Planning ERP component help Ghirardelli’s business?