1. DEPARTMENT OF MANAGEMENT STUDIES
UNIT – V EXTENDED ERP
6/23/2018
Dr. G. MAHESWARAN/AP

2. LEARNING OUTCOMES
Compare core enterprise resource planning components and extended enterprise resource planning components
Describe the three primary components found in core enterprise resource planning
Describe the four primary components found in extended enterprise resource planning systems
6/23/2018
2/20
Dr. G. MAHESWARAN/AP

3. Assess the future of enterprise resource planning systems
LEARNING OUTCOMES
Explain the benefits and risks associated with enterprise resource planning systems
Assess the future of enterprise resource planning systems
6/23/2018
Dr. G. MAHESWARAN/AP
3/20

4. INTRODUCTION
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
6/23/2018
Dr. G. MAHESWARAN/AP
4/20

5. Core and Extended ERP Components
Core ERP components – traditional components included in most ERP systems and they primarily focus on internal operations
Extended ERP components – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations
6/23/2018
Dr. G. MAHESWARAN/AP
5/20

6. Core and Extended ERP Components
6/23/2018
Dr. G. MAHESWARAN/AP
6/20

7. Three most common core ERP components
Accounting and finance
Production and materials management
Human resource
6/23/2018
Dr. G. MAHESWARAN/AP
7/20

8. CORE ERP COMPONENTS
Accounting and finance components – manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management
6/23/2018
Dr. G. MAHESWARAN/AP
8/20

9. CORE ERP COMPONENTS
Production and materials management components – handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control
6/23/2018
9/20
Dr. G. MAHESWARAN/AP

10. CORE ERP COMPONENTS
Human resource components – track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities
6/23/2018
Dr. G. MAHESWARAN/AP
10/20

11. Extended ERP Components
Extended ERP components include:
Business intelligence
Customer relationship management
Supply chain management
E-business
6/23/2018
Dr. G. MAHESWARAN/AP
11/20

12. Extended ERP Components
E-business components include e-logistics and e-procurement
E-logistics – manages the transportation and storage of goods
E-procurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet
6/23/2018
Dr. G. MAHESWARAN/AP
12/20

13. ERP Benefits and Risks (Costs)
6/23/2018
Dr. G. MAHESWARAN/AP
13/20

14. ERP Benefits and Risks (Costs)
ERP Risks
6/23/2018
Dr. G. MAHESWARAN/AP
14/20

15. Lines between SCM, CRM, and ERP will continue to blur
The Future of ERP
Lines between SCM, CRM, and ERP will continue to blur
Internet – continue to help organizations integrate data and process across functional departments
Interface – customizable employee browsers
Wireless technology – support a mobile workforce
6/23/2018
Dr. G. MAHESWARAN/AP
15/20

16. Closing Case One PepsiAmericas’ Enterprises
PepsiAmericas generates $2.97 billion in revenues yearly
The company implemented PeopleSoft’s ERP solution to provide complete integration between PepsiAmericas’ front-office and back-office systems
PepsiAmericas also implemented PeopleSoft’s supply chain management component to automate its inventory
6/23/2018
Dr. G. MAHESWARAN/AP
16/20

17. Closing Case One Questions
How have core ERP components helped PepsiAmericas improve its business?
How have extended ERP components helped PepsiAmericas improve its business?
Explain how future ERP systems will help PepsiAmericas increase revenues
6/23/2018
Dr. G. MAHESWARAN/AP
17/20

18. Closing Case One Questions
Assess the impact on PepsiAmericas’ business if it failed to implement the CRM component of PeopleSoft’s ERP system
Review the different PeopleSoft components in Figure B5.5. Which component would you recommend PepsiAmericas implement if it decides to purchase an additional PeopleSoft component?
6/23/2018
Dr. G. MAHESWARAN/AP
18/20

19. Closing Case Two Demanding Chocolate
Ghirardelli is the longest continuously operating chocolate manufacturer in the Untied States
Ghirardelli improved inventory management and profitability through the implementation of an ERP system
6/23/2018
Dr. G. MAHESWARAN/AP
19/20

20. Closing Case Two Questions
Which additional core ERP components would you recommend Ghirardelli implement?
Which additional extended ERP components would you recommend Ghirardelli implement?
How can implementing an Advanced Planning ERP component help Ghirardelli’s business?
6/23/2018
Dr. G. MAHESWARAN/AP
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