The document discusses enterprise resource planning (ERP) systems and collaboration between companies. It describes the core components of ERP systems, including a centralized database. It also discusses how companies can collaborate through partnerships, alliances and teams. Specifically, it provides an example of strategic distributor alliances where companies work to optimize costs and improve customer service across their joint supply chain. The goal is to create an efficient network of business relationships through information technology links between partners.

1. ITM 309 Enterprise Resource Planning and Collaboration Dr. Frederick Rodammer Michigan State University Eli Broad College of Business [email_address] November 17, 2008

2. Today’s Learning Objectives Review the four primary components found in extended enterprise resource planning systems Identify the different ways in which companies collaborate using technology Describe Alliances And Discuss Alliance Example

3. What is meant by Collaboration ? What are examples of how two or more companies Collaborate together ?

4. What is meant by Outsourcing ? Is Collaboration the same as Outsourcing ?

5. CORE AND EXTENDED ERP COMPONENTS

6. ERP Database 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

7. THE CONNECTED CORPORATION General audience and purpose of SCM, CRM and ERP

8. THE CONNECTED CORPORATION Data points where SCM, CRM, and ERP integrate

9. TEAMS, PARTNERSHIPS, AND ALLIANCES Collaboration system – supports the work of teams by facilitating the sharing and flow of information

10. 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

11. 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

12. 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

13. An Industry Value-Chain With Focus on Alliances Suppliers’ value chains Organization’s value chain Channel value chains Customers’ value chains We Need to Develop IT and Business Process Links to Partners

14. Alliances Cross-Functional Inter-Enterprise System Uses IT to Help Support and Manage the Links Between Some of a Company’s Key Business Processes and its Suppliers, Customers, and Business Partners Goal is to Create a Fast, Efficient, and Low-Cost Network of Business Relationships: Minimize Joint Costs and Improve Service

15. Example: Distributor Alliances We cannot make significant strides in supply chain management without some re-definition of our Supplier/Distributor/ End Use Customer relationship.

16. Alliances With Strategic Distributors Critical Business Issue Minimize the Cost to Serve of the Joint Supplier/Distributor Value Chain While Maintaining/Improving Customer Service; Focus on Optimizing the Value Chain Costs and Working Capital for Mutual Benefit to Both Companies. Goals Improve Service and Responsiveness Optimize Supply Chain Costs and Capital Working Capital Transportation Capital Freight Administrative Packaging Desired Outcomes New, Improved Cross-Company Value Chain Process Roles/Responsibilities and Operating Discipline to Support New Process Process Measurements of Mutual Incentives to Support New Process

17. ITM 309 Homework Assignment #5 due November 19-20 Assignment #6 Insights During Lecture on Wednesday