Integrating the Organization

from End to End

Enterprise Resource Planning (ERP)
Learning Objectives

 Describe the role information plays in enterprise resource

planning systems
 Identify the primary forces driving the explosive growth of
Enterprise Resource Planning (ERP) systems
 Explain the business value of integrating supply chain
management, customer relationship management, and
enterprise resource planning systems
Overview

 Enterprise Resource Planning (ERP) systems serve as the

organization's backbone in providing fundamental
decision-making support
 Today, we will discuss
 ERP’s explosive growth
 Using ERP to connect corporations
 Integrating SCM, CRM, and ERP
Enterprise Resource Planning (ERP)

At the heart of an ERP system is a database, when a user

enters or updates information in one module, it is immediately
and automatically updated throughout the entire system
Enterprise Resource Planning (ERP)

 ERP systems automate business processes

Enterprise Resource Planning (ERP)

 ERP systems must integrate various organization

processes and be:
 Flexible
 Modular and open
 Comprehensive
 Beyond the company
ERP Growth

 There are an estimated 70,000 ERP installations worldwide

with over 35 million users.
 SAP boasts 20,000 installations and 10 million users
worldwide.
 ERP solutions are growing because:
 ERP is a logical solution to the mess of incompatible applications
that had sprung up in most businesses
 ERP addresses the need for global information sharing and
reporting
 ERP is used to avoid the pain and expense of fixing legacy
systems
Top ERP vendors & their major components
The Connected Corporation

 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
The Connected Corporation

• SCM and CRM market overviews

Integrating SCM, CRM, & ERP

Many companies purchase modules from an ERP vendor, an

SCM vendor, and a CRM vendor and must integrate the
different modules together
 Middleware – several different types of software which sit in the
middle of and provide connectivity between two or more software
applications
 Enterprise application integration (EAI) middleware – packaging
together commonly used functionality, such as providing pre-built
links to popular enterprise applications, which reduced the time
necessary to develop solutions that integrate applications from
multiple vendors
Integrating SCM, CRM, and ERP

• General audience & purpose of SCM, CRM & ERP

Integrating SCM, CRM, and ERP

• Data points where SCM, CRM, and ERP integrate

Gearing Up At REI Case Questions

1. Explain how an ERP system can help REI gain business

intelligence in its operations
2. Assess the business benefit for REI in integrating its CRM,
SCM, and ERP systems
Hilton Purchases New Suite

 Hilton deployed a new ERP that cost $4 million

 The ERP system has increased processing efficiency by a
factor of six (6)
 The ERP system is saving the company between $4.5 and
$5 million annually
Hilton Case Questions

3. Summarize why the merger of two separate corporations can

cause significant issues for the integration of information
4. Which component would you recommend if Hilton Hotels
wanted to add an additional Oracle component? Evaluate the
business benefit of this additional component
5. Analyze why it is critical for an organization like Hilton Hotels
to have an enterprisewide system
6. Assess the benefits Hilton Hotels could receive from
implementing an integrated SCM, CRM, and ERP solution
Dell’s Famous Supply Chain Case Qs

7. Identify a few key metrics a Dell marketing executive might

want to monitor on a digital dashboard
8. Determine how Dell can benefit from using decision support
systems and executive information systems in its business
9. Describe how Dell has influenced visibility, consumer
behavior, competition, and speed though the use of IT in its
supply chain
Dell’s Famous Supply Chain Case Qs

10. Explain the seven principles of SCM in reference to Dell’s

business model
11. Identify how Dell can use CRM to improve its business
operations
12. Explain how an ERP system could help Dell gain business
intelligence
Revving Up Sales at Harley Davidson Case Qs

13. Explain how Talon helps Harley-Davidson employees improve their

decision-making capabilities
14. Identify a few key metrics a Harley-Davidson marketing executive
might want to monitor on a digital dashboard
15. Determine how Harley-Davidson can benefit from using decision
support systems and executive information systems in its business
16. How would Harley-Davidson’s business be affected if it decided to
sell accessories directly to its online customers? Include a brief
discussion of the ethics involved with this decision
Revving Up Sales at Harley Davidson Case Qs

17. Evaluate the HOG CRM strategy and recommend an additional

benefit Harley-Davidson could provide to its HOG members to
increase customer satisfaction
18. How could Harley-Davidson’s SCM system, Manugistics,
improve its business operations?
19. Provide a potential illustration of Harley-Davidson’s SCM
system including all upstream and downstream participants
20. Explain how an ERP system could help Harley-Davidson gain
business intelligence in its operations