Chapter Eight Chapter Eight Building The E-Business Backbone: Enterprise Resource Planning
Transcript
1. Chapter Eight Building The E-Business Backbone: Enterprise
Resource Planning
2. ERP: The Technological Backbone of E-Business
Typical corporate computing environment today of
mainframe-based apps is antiquated
Cannot meet demands of new economy and must be replaced
ERP integrated app suite
Framework to automate back-office functions: Financial,
Manufacturing and Distribution, HR, Administrative
Unites major business processes within single family of
modules: production, order processing, inventory mgmt and
warehousing, A/P and A/R, general ledger, and payroll
ERP phenomenon also catching fire among dot-coms
Managing customer relationships key for the newer online
firms
ERP offers customers efficient, high-quality service
Ability to order online; inquire about product pricing and
order status
ERP prices dropping and rental ASP model becoming
prevalent
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3. ERP: The Technological Backbone of E-Business
ERP is the technological backbone of e-business
Enterprise-wide transaction framework with links into
sales order processing; inventory mgmt and control; production
and distribution planning; finance
In early 1990s, only large manufacturers saw benefits of
ERP
Today, medium-size and dot-com firms also recognize necessity
of integrating back-office processes for front-office success in
e-commerce world
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4. Who Really Uses ERP Suites?
Large corporations that want to gain control over disparate
groups of core business apps
3Com, Chevron Products Company, GM
3 primary categories of ERP implementations
Single to few products in single industry: eToys
Single SBU firms, selling only few products in a single
industry: Delta Airlines, Dell, Microsoft, Nike
Large corporate conglomerates or multiple-SBU firms, selling
many products in multiple industries: GE, IBM, Colgate-Palmolive,
and Nabisco
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5. The Basics of ERP
These apps are themselves built from smaller s/w modules that
perform specific business processes within a given functional
area
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Integrated Logistics Accounting & Financials Human Resources
Sales Distributions (Order only) Production Planning Customer/
Employee Enterprise Architecture
6. ERP Wave 1
ERP 1960
70 material requirement planning (MRP) distribution resource
planning (DRP) , production master scheduling centralized inventory
planning
80 , MRP II , MRP production process , , order
processing,manufacturing, distribution.
ERP evolving into CRP to integrate brick with click
Using middleware has drawbacks
Traditional ERP build for make-to-stock business models; but
this is no longer the case; customer value, effectiveness, enhanced
service delivery key today
Continuous planning vs. long planning cycle of ERP