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McGraw-Hill/Irwin ©2009The McGraw-Hill Companies, All Rights Reserved
Business Driven Information Systems 2eBusiness Driven Information Systems 2eBusiness Driven Information Systems 2eBusiness Driven Information Systems 2e
CHAPTER 10
ENTERPRISE RESOURCE PLANNING
AND COLLABORATION SYSTEMS
CHAPTER 10
ENTERPRISE RESOURCE PLANNING
AND COLLABORATION SYSTEMS
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CHAPTER TEN OVERVIEW
• SECTION 10.1 - ENTERPRISE RESOURCE PLANNING– Enterprise Resource Planning– Core ERP Components– Extended ERP Components– Integrating SCM, CRM, and ERP– Measuring ERP Success– Choosing ERP Software
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CHAPTER TEN OVERVIEW
• SECTION 10.2 – COLLABORATION SYSTEMS– Teams, Partnerships, and Alliances– Collaboration Systems– Knowledge Management Systems– Content Management Systems– Workflow Management Systems– Groupware Systems
McGraw-Hill/Irwin ©2009The McGraw-Hill Companies, All Rights Reserved
SECTION 10.1SECTION 10.1
ENTERPRISE RESOURCE PLANNING
ENTERPRISE RESOURCE PLANNING
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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
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LEARNING OUTCOMES
4. Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems
5. Explain how an organization can use the balanced scorecard to measure ERP success?
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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
• Reasons ERP systems are powerful tools– ERP is a logical solution to incompatible
applications– ERP addresses global information sharing
and reporting– ERP avoids the pain and expense of fixing
legacy systems
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ENTERPRISE RESOURCE PLANNING
• Sample data from a sales database
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ENTERPRISE RESOURCE PLANNING
• Sample data from an accounting database
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ENTERPRISE RESOURCE PLANNING
• ERP systems collect data from across an organization and correlates the data generating an enterprisewide view
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The Heart of ERP
• At the heart of all ERP systems is a database
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The Heart of ERP
• ERP systems automate business processes
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The Heart of ERP
The organization before ERP
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The Heart of ERP
• ERP – bringing the organization together
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The Evolution of ERP
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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
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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
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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 - components include:
• Elogistics • Eprocurement
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INTEGRATING SCM, CRM, AND ERP
• 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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INTEGRATING SCM, CRM, AND ERP
• SCM and CRM market overviews
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INTEGRATING SCM, CRM, AND ERP
• General audience and purpose of SCM, CRM and ERP
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Integration Tools
• Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together– Middleware– Enterprise application integration (EAI)
middleware
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Integration Tools• Data points where SCM, CRM, and ERP integrate
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MEASURING ERP SUCCESS
• Balanced scorecard – enables organizations to clarify their vision and strategy and translate them into action
• Balanced scorecard views the organization from four perspectives– Learning and growth– Internal business process– Customer– Financial
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MEASURING ERP SUCCESS
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CHOOSING ERP SOFTWARE
• Successful ERP projects share 3 attributes1. Overall fit
• 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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OPENING CASE QUESTIONSCampus 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?
McGraw-Hill/Irwin ©2009The McGraw-Hill Companies, All Rights Reserved
SECTION 10.2SECTION 10.2
COLLABORATION SYSTEMS
COLLABORATION SYSTEMS
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LEARNING OUTCOMES
6. Identify the different ways in which companies collaborate using technology
7. Compare the different categories of collaboration technologies
8. Define the fundamental concepts of a knowledge management system
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LEARNING OUTCOMES
9. Provide an examples of a content management system along with its business purpose
10. Evaluate the advantages of using a workflow management system
11. Explain how groupware can benefit a business
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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
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TEAMS, PARTNERSHIPS, AND ALLIANCES
• Collaboration system – supports the work of teams by facilitating the sharing and flow of information
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TEAMS, PARTNERSHIPS, AND ALLIANCES
• Organizations form alliances and partnerships with other organizations based on their core competency– Core competency– Core competency strategy
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TEAMS, PARTNERSHIPS, AND ALLIANCES
• Information technology can make a business partnership easier to establish and manage– Information partnership
• The Internet has dramatically increased the ease and availability for IT-enabled organizational alliances and partnerships
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COLLABORATION SYSTEMS
• 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 collaboration1. 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:– Knowledge management systems– Content management systems– Workflow management systems– Groupware systems
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KNOWLEDGE MANAGEMENT SYSTEMS
• 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:– 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
• Content management system vendor overview
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WORKING WIKIS
• Wikis - Web-based tools that make it easy for users to add, remove, and change online content
• Business wikis - collaborative Web pages that allow users to edit documents, share ideas, or monitor the status of a project
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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
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WORKFLOW MANAGEMENT SYSTEMS
• Messaging-based workflow system – sends work assignments through an e-mail 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 – supports team interactions
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GROUPWARE SYSTEMS
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Videoconferencing
• Videoconference - a set of interactive telecommunication technologies that allow two or more locations to interact via two-way video and audio transmissions simultaneously
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Web Conferencing
• Web conferencing - blends audio, video, and document-sharing technologies to create virtual meeting rooms where people “gather” at a password-protected Web site
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Instant Messaging
• 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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Instant Messaging• Instant messaging application
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OPENING CASE QUESTIONSCampus ERP
4. How can a college campus achieve business success through the use of collaboration tools?
5. How can your college use knowledge management systems to improve operations?
6. How can your college use content management systems to improve operations?
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OPENING CASE QUESTIONSCampus ERP
7. How can a team of college students use a workflow management system to complete a group project?
8. If your college wanted to implement a groupware system, what would be its primary purpose?
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CLOSING CASE ONEDreamWorks
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?
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CLOSING CASE ONEDreamWorks
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?
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CLOSING CASE TWOEnterprise Content Management at Statoil
1. Why do you think content management is such a critical part of Statoil’s strategy?
2. Comment on the utility and importance of Statoil’s use of an information portal to promote enterprisewide content management?
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CLOSING CASE TWOEnterprise Content Management at Statoil
3. To what extent do you think Statoil’s predicament of information overload is typical for organizations?
4. What lessons learned and insights from the chapter’s discussion on collaboration tools could help promote Statoil’s adoption and use of its content management initiative?
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CLOSING CASE THREE Shell Canada Fuels Productivity with ERP
1. How did ERP help improve business operations at Shell?
2. How important was training in helping roll out the system to Shell personnel?
3. How could extended ERP components help improve business operations at Shell?
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CLOSING CASE THREE Shell Canada Fuels Productivity with ERP
4. What advice would you give Shell if it decided to choose a different ERP software solution?
5. How can integrating SCM, CRM, and ERP help improve business operations at Shell?
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BUSINESS DRIVEN BEST SELLERS
• The Tipping Point: How Little Things Can Make a Big Difference, by Malcolm Gladwell
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BUSINESS DRIVEN BEST SELLERS
• Blink: The Power of Thinking Without Thinking, by Malcolm Gladwell