fb5003-5.docxVIP

1 FB5003 - 5 Enterprise Resource Planning (ERP) Global Cases: Integration and Planning for the Extended Enterprise 2 Information Systems Change Business... 3 Learning Objectives Explore systems integration Appreciate potential problems associated with the design, implementation and use of ERP systems Culture, People, Process Case based illustration of what works and what fails in organizations 4 Background IT has the potential to integrate information IT can enable distributed people to communicate with ease Indeed, it is hard to imagine life without IT IT can extend the enterprise beyond its traditional borders Li Fung, Amazon, HSBC, cTrip, Alibaba, SoleRebels, Adexus, etc. These organisations are truly IT-dependent. They also leverage IT to ensure their competitive advantage 5 However,… IT-based change is not without problems Indeed, the changes associated with implementing major systems is a bit like ‘open heart surgery’, without the anaesthetic! You are cutting away at the very core (culture) of the organisation, implementing new systems and processes – while the organisation is still functioning. 6 What is ERP? Potentially integrated systems that allow information to enter at a single point in the process (e.g., at the materials receiving stage of a manufacturing process), and update a single, shared database in real time for all functions that directly or indirectly depend on this information. 7 ERP… “provides a unified view of the business, encompassing all functions and departments by establishing a single enterprise-wide database in which all business transactions are entered, recorded, processed, monitored and reported”. (Umble Umble, 2002) 8 ERP Administrative ERP usually focuses on human capital management finance and procurement Operational ERP often refers to: business operational systems such as CRM, SCM and product life cycle management (PLM). Operational and Administrative ERP are closely linked 9 SAP Enterprise Solutions Client/ Server L