ERP Program I570: Enterprise Resource Planning and System Integration Spring Quarter 2010

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1 ERP Program I570: Enterprise Resource Planning and System Integration Spring Quarter 2010 Instructors Professors Ash Soni, Tony Gerth and Bipin Prabhakar Operations & Decision Technologies Department Kelley School of Business, Bloomington Course Description and Course Objectives Information and information technology (IT) constitute integral and critical resources for managerial decision making. Over $1 trillion continues to be spent each year on technology and related information systems which constitutes an expensive and significant cost undertaking for most organizations. Professionals working in or with IT in organizations must understand and be able to identify business opportunities created by IT, to successfully manage and evaluate IT related projects, and better understand how to manage the risks associated with IT in modern organizations. A significant portion of a company s IT investment is often in its enterprise systems and the myriad of technologies that are built around such systems. Enterprise systems include systems such as Enterprise Resource Planning (ERP) systems, and applications such as Customer Resource Management (CRM) systems, Data Warehousing (DW) and Data Mining (DM) systems, and Advanced Planning and Scheduling (APS) systems. The importance of these systems in today s business world becomes obvious when you consider that over thirty thousand companies worldwide, including almost all of the Fortune 1000, use one or more of these systems. The most commonly used enterprise systems are ERP systems. Simply stated, ERP systems are enterprise-wide on-line interactive systems that support cross-functional transactions and processes using a common database. These systems are significantly different from the customized mainframe legacy applications that most companies operated with prior to the mid-1990s. Typical legacy systems operated in functional silos often using multiple databases whereas ERP systems are designed to provide, at least in theory, seamless integration of processes across functional areas with improved workflow, standardization of various business practices, and access to real-time up-todate data. ERP systems have evolved from Materials Requirements Planning (MRP) and Manufacturing Resource Planning (MRP II) systems, and over the past few years have radically altered how companies conduct business, both in domestic and global markets. In this course, we will provide you access to SAP s R/3 system, the most widely used ERP system in the world.

2 The first area we will cover in the class will be the role of IT in an enterprise and the strategies companies use. This will be followed by issues of implementation of enterprise systems. ERP systems are complex and implementing one can be a challenging, time consuming and expensive project for any company. Implementing an ERP system is as much of a business transformation exercise as it is a software implementation project. Many companies have successfully implemented ERP systems while others have struggled. Even with significant investments in time and resources, there is no guarantee of a successful outcome. Thus, we will spend some time on implementation issues. Many of the same issues will come up with the implementation of other enterprise systems as well. Finally, we will provide hands-on experiences in using SAP s R/3 system. Class Communications Extensive use will be made of the various communications capabilities of the Angel system. These communications will include , course announcements, and chat rooms. There will be one chat room session each week. The chat sessions have been scheduled for every Wednesday at 8:00 p.m. Eastern Time. The chat sessions will be primarily tutorial sessions where we will work either through an issue or a topic. The chats are not mandatory but are highly recommended. Also, all chat sessions are recorded so you can always go back and check them out. Required Readings The course will use a course readings package. The package is titled Enterprise Systems and consists of various cases and articles. In addition, we will post additional readings on Angel as needed. Assessment This course will have three assessment components: 1. Assignments: There will be a total of six assignments for credit. These assignments will primarily consist of cases. These will be spaced at regular intervals so that they will due approximately once every days. These assignments will account for 40% of your grade. 2. Case Discussions: There will be a number of assignments that will require case discussions using discussion forums on Angel. Everyone will be expected to participate in these forums. These assignments will account for 20% of your grade. 3. An Exam: There will be an exam in Week 12. This exam will count for 40% of the grade.

3 Grading Class grades will be based on the homework assignments, the forums and the exam. The final score (Out of 100) will be translated into a letter grade based on the following scale: Above 90% A (A or A-) 80% to 90% B (B+, B or B-) 70% to 80% C (C+, C or C-) 60% to 70% D (D+, D or D-) Under 60% F Class Schedule and Assignments The class schedule outlined here provides an overview of the topics that will be covered in the course and the required readings for those topics. Then, for each topic, we will provide a detailed outline of the readings, cases, examples and assignments by week. We will also include in this outline all the important issues that you need to know for that topic. Week 1: Week 2: Activity Week 3: Role of IT in Organizations Information Technology and the Board of Directors (Harvard Bus Review) An Update on Business and IT Alignment: A Line Has Been Drawn (research) Case Discussion: Zara: IT For Fast Fashion (case) FS: Sales Order Process IT costs, IT value and IT Priorities Beyond the Business Case: New Approaches to IT Investment (research) Best Practices in IT Portfolio Management (Sloan Mgt Review) Case Discussion: Volkswagen of America: Managing IT Priorities (case) FS: Credit Receivables Enterprise Architecture Creating a Strategic IT Architecture Competency: Learning in Stages (research) Enterprise Architecture Maturity: The Story of the Veteran s Health Administration (case article) Case discussion of VA enterprise architecture FS: Pricing

4 Week 4: Week 5: Week 6: Week 7: Selection of ERP Systems Enterprise Resource Planning Systems SAP Handouts Timberjack Parts Packaged Software Selection Project (HBS Case) FS: Accounting Implementation of ERP Systems The Impact of Organization Size on ERP Implementations in the U.S. Manufacturing Sector (Research Paper) ERP: Common Myths versus Evolving Reality (Research Paper) Cisco Systems: Implementation (HBS Case) FS: Purchasing Implementation of ERP Systems Continued ERP: Managing the Implementation Process (Research Paper) ERP: Post Implementation Success: Critical Factors and Impact of Organizational Size (Research Paper) Tektronix, Inc. (HBS Case) FS: Purchasing Organizational Change Management Evolving at the Speed of Change: Mastering Change Readiness (case) ERP Failure Case (case) Discussion of OCM in a Government program FS: Production Planning Week 8: Benefits Realization for ERP Building Better Business Cases for IT Investments Realizing Business Benefits from IT Investments Discussion of Government oriented benefits management FS: Production Planning

5 Week 9: Enterprise Applications: Systems Beyond the Enterprise Value Chain Resource Planning (Research Paper) Constructing an e-supply Chain at Eastman Chemical (HBS Case) FS: Human Resources Organizational Structure Week 10: Enterprise Applications: CRM Systems Constituent Relationship Management Systems (book excerpt) Applying lessons learned from ERP to CRM A Crash Course in Customer Relationship Management (HBS Handout) CRM Done Right (HBS Handout) Moore Medical Corporation (HBS Case) Week 11: Enterprise Applications and the Internet The Internet and Citizen Service Delivery (book excerpt) Cisco Systems Architecture: ERP and Web-Enabled IT (HBS Case) Week 12: Review and Exam