Case Study Instructional Notes

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Instructor’s Manual
Enterprise Resource Planning, 1/E

CHAPTER 1: A FOUNDATION FOR UNDERSTANDING ENTERPRISE RESOURCE PLANNING SYSTEMS

CHAPTER OBJECTIVES
1.Develop an understanding of how ERP systems can improve the effectiveness of information systems in organizations.

2.Understand the business benefits of enterprise resource planning (ERP) systems.

3.Understand the history and evolution of ERP.

CHAPTER OUTLINE
1.A Foundation for Understanding Enterprise Resource Planning Systems a.The Emergence of Enterprise Resource Planning Systems
1.What is ERP?
2.The Evolution of ERP
3.The Integrated Systems Approach
b.Business Benefits of ERP
c.ERP Modules
d.ERP Design Alternatives
e.The Business Case for ERP
1.Cost-Benefit Analysis for ERP
2.Can ERP Provide a Competitive Advantage?
f.The Challenge of Implementing an ERP System
g.Summary

ANSWERS TO END-OF-CHAPTER QUESTIONS

Questions for Discussion:

1.Use on-line library databases to identify articles in trade publications which provide case studies of ERP implementations. These articles may provide some insight into each of these questions. a.How widespread is the use of ERP across certain industries? b.What are the benefits reported from implementing ERP?

c.What are its limitations?

2.Research and learn about the implementation of ERP. Use trade publications and on-line library databases (e.g. ABI Inform, ProQuest, First Search, Wilson Select Plus, available through your library) to conduct a search for articles. a.Find a success story of ERP implementation. What factors contributed to the success of this implementation? b.Find a story of problems encountered with an ERP implementation. What factors contributed to the obstacles which were encountered??

Possible resources:

Austin, Robert D., Sole, Deborah, and Cotteleer, Mark J. “Harley Davidson Motor Company: Enterprise Software Selection.” Harvard Business School case study (2003): 1-23.

Austin, Robert D., Nolan, Richard L., and Cotteleer, Mark J. “Cisco Systems, Inc.:Implementing ERP.” Harvard Business School case study (2002): 1-19.

Gabriele Hirt, Sabine and Swanson, E. Burton. “Adopting SAP at Siemens Power Corporation.” Journal of Information Technology 14 (1999): 243-251.

Jesitus, John. “Broken Promises? Fox Meyer’s project was a disaster. Was the company too aggressive or was it misled?” Industry Week (1997): 31-37.

Songini, Marc L. “Halloween Less Haunting For Hershey This Year.” Computerworld. Vol. 34 (45), p.13-14.

Stedman, Craig. “Failed ERP Gamble Haunts Hershey.” Computerworld. Vol. 33(44), p. 1.

Weiss, Todd R., Songini, Marc L. “Hershey Upgrades R/3 ERP System Without Hitches.” Computerworld, Vol. 36(37), p. 25-28

Case: Business Research

You are a business analyst for MPK Industries, a consulting firm that tracks worldwide trends in information technology. Using suggested on-line databases and Internet resources provide answers to the following questions.

1.What is the expected future growth of the ERP marketplace in terms of overall sales? a.Break this down by sales in the United States and international sales? b.Break this down by Fortune 500 companies and mid-cap companies (e.g. mid-cap companies are defined as having sales between $50 and $400 million per year).

2.What is the relative market share of the major ERP vendors? a.Break this down by sales in the U.S. and international sales. b.Break this down by Fortune 500 companies and mid-cap companies.

Possible Resources:

Web siteWhat it provides
www.amrresearch.com
Results of vendor surveys
http://www.technologyevaluation.com
Market research
www.computerworld.com/softwaretopics/erp
Links to useful ERP sites, articles, publications, and chat rooms www.erpfans.com
Links to support groups for many vendors
www.apics.org/resources/magazine/current
Links to current APICS news

CHAPTER 2: RE-ENGINEERING AND ENTERPRISE...
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