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DESCRIPTION
TRANSCRIPT
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Enterprise Business SystemsEnterprise Resource PlanningSupply Chain ManagementTransaction Processing SystemsSection IIFunctional Business SystemsIT in BusinessMarketing SystemsHuman Resource SystemsAccounting SystemsFinancial Mgmt.
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-1
Real World Cases
Electronic Electronic Business Business SystemsSystems
Enterprise Business Systems
Module III – Business Applications
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-2
Real World Cases
Learning ObjectivesLearning Objectives1. Identify the following cross-functional
enterprise systems and give examples of how they can provide significant business value to a company.
a) Enterprise resource planningb) Customer relationship managementc) Supply chain managementd) Enterprise application integratione) Transaction processing systemsf) Enterprise collaboration systems
2. Give examples of how Internet and other information technologies support business processes within the business functions of accounting, finance, human resource management, marketing, and production and operations management.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-3
Real World Cases
Enterprise Enterprise Business SystemsBusiness Systems
• e-Business Applications• e-Commerce• Cross-functional Enterprise
Systems• Customer Relationship
Management• Enterprise Resource Planning• Supply Chain ManagementReal World Case 1- Real World Case 1-
Salesforce.ComSalesforce.Com Click to go to
Case 1
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-4
Real World Cases
CustomerFeedback
MarketResearch
MarketTest
ComponentDesign
ProductTest
ProductRelease
ProcessDesign
EquipmentDesign
ProductionStart
Marketing R&D/Engineering Manufacturing
Enterprise Enterprise Business SystemsBusiness Systems
New Product New Product Development ProcessDevelopment Process
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-5
Real World Cases
Suppliers
Customers
Em
plo
yees
Par
tner
s
Supply Chain ManagementSourcing - Procurement
Enterprise Resource PlanningInternal Business Processes
Customer Relationship ManagementMarketing – Sales - Service
Kn
ow
led
ge
Ma
nag
eme
nt
Co
llab
ora
tio
n –
Dec
isio
n S
up
po
rt
Par
tner
Rel
atio
nsh
ip M
anag
emen
tS
elli
ng
– D
istr
ibu
tio
n
Enterprise Application ArchitectureEnterprise Application Architecture
Enterprise Enterprise Business SystemsBusiness Systems
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-6
Real World Cases
• Created Real-time Configure-to-Order System
• Enterprise e-Business Systems Need End-to-End Connectivity:
– Across Different Processes– From Legacy Systems to its Suppliers,
Customers and Partners• Orders by Customers Travel Great Global
Distances • Systems Update Order Status• Communicate with Other Systems-Real Time• Orders Zip Across Atlantic Average 4 Times
Enterprise Enterprise Business SystemsBusiness Systems
IBM Corporation: Global Cross-IBM Corporation: Global Cross-Functional Enterprise SystemsFunctional Enterprise Systems
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-7
Real World Cases
ProductionPlanning Integrated
Logistics
Accounting and Finance
HumanResources
Sales,Distribution,
OrderManagement
Customer/Employee
Enterprise Enterprise Resource PlanningResource Planning
The Technological Backbone The Technological Backbone of e-Businessof e-Business
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-8
Real World Cases
Enterprise Enterprise Resource PlanningResource Planning
Colgate-Palmolive: The Colgate-Palmolive: The Business Value of ERPBusiness Value of ERP
• Use of Software across the Entire Spectrum of the Business
• Activities That Once Took Days now Take Hours
• On-Time and Correctness of Deliveries Improved Significantly
• Inventories Reduced by 1/3 and Realized Meaningful Cost Savings
Graphically… Graphically…
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-9
Real World Cases
Su
pp
liers
Human Resources
Finance and Accounting
DemandPlanning
Manufacturing Planning
LogisticsPlanning
DistributionPlanning
OrderEntry
Enterprise Resource Planning
Cu
sto
mer
s
Purchasing& Accounts
Payable
MRPInbound
InventoryPlant Mgmt.
Manufacturing& ProductionScheduling
InventoryControl &
Warehousing
Distribution& AccountsReceivable
Enterprise Enterprise Resource PlanningResource Planning
Colgate-Palmolive: The Colgate-Palmolive: The Business Value of ERPBusiness Value of ERP
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-10
Real World Cases
Benefits of ERP
• Quality and Efficiency
• Decreased Costs
• Decision Support
• Enterprise Agility
Failures in ERP Do Exist
Enterprise Enterprise Resource PlanningResource Planning
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-11
Real World Cases
• SAP AG’s Software Installation Problems of ERP Integrated Suite into a Retail Environment
• Sobey’s Grocer Had Problems with Number of Transactions
• Jo-Ann Stores and Petsmart Blamed Software for Poor Financial Performance
• Sobey’s is Replacing System
Enterprise Enterprise Resource PlanningResource Planning
Sobeys Inc.: Failure in ERP Sobeys Inc.: Failure in ERP ImplementationImplementation
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-12
Real World Cases
Causes of ERP Failures• Underestimating the
Complexity of Planning, Development, and Training Needed
• Failure to Involve Affected Employees
• Trying to do Too Much Too Fast
• Over Reliance by Company on Claims of Software Companies
Enterprise Enterprise Resource PlanningResource Planning
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-13
Real World Cases
Supports an Integrated and Supports an Integrated and Collaborative Relationship Between Collaborative Relationship Between a Business and it’s Customersa Business and it’s Customers
CRM: The Business FocusCRM: The Business Focus
CustomerLife Cycle
CRMFunctionalSolutions
CRMIntegratedSolution
The Internet
Acquire Enhance Retain
Direct Marketing Cross-sell and Up-sell Proactive Service
Sales Force Automation Customer Support
CollaborativeService
SharedCustomer Data
Partner Company Customer
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-14
Real World Cases
CRM Uses IT to Create a Cross-CRM Uses IT to Create a Cross-Functional Enterprise SystemFunctional Enterprise System
CRM: The Business FocusCRM: The Business Focus
Marketing andFulfillment Customer
Service andSupport
Retentionand LoyaltyPrograms
Contact andAccount
Management
Sales•Cross-Sell•Up-Sell
Prospect orEmployee
Fax e-Mail
Telephone Web
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-15
Real World Cases
Telstra Corporation: The Business Telstra Corporation: The Business Value of CRMValue of CRM
CRM: The Business FocusCRM: The Business Focus
• Provides Fixed, Wireless, and e-Commerce Services to Customer Base in 19 Countries
• Offers Voice, Data, Internet, Multimedia and Communications Services
• Sought CRM Solution to Integrate More than 20 Core Legacy Databases Across the System
• Benefits Quickly Followed• Reduced Training Time
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-16
Real World Cases
CRM: The Business FocusCRM: The Business FocusBenefits and Challenges of CRM• Identify and Target the Best
Customers• Customization and Personalization
of Products and Services• Track Customer ContactsCRM Failures• 50% of Applications Fail to Meet
Expectations• 20% of the Time CRM Damaged
Customer Relationships• Lack of Understanding and
Preparation is Blamed
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-17
Real World Cases
Gevity HR and Monster.Com: Gevity HR and Monster.Com: Failures in CRM ImplementationFailures in CRM Implementation
CRM: The Business FocusCRM: The Business Focus
• Employees Undercut the System Believing Their Jobs Threatened by CRM On-Line Customer Problem Solutions.
• Complex Installation Since it Touches So Many Legacy Systems
• Failures Lead to Loss of Customer Goodwill and Business and Negatively Affects Employees Also
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-18
Real World Cases
SCM: The Business NetworkSCM: The Business Network
Supply Chain Management• SCM – A Top Strategic
Objective for Many Firms• The Right Products• The Right Place• The Right Time• In the Proper Quantity• At an Acceptable Cost
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-19
Real World Cases
SCM: The Business NetworkSCM: The Business NetworkObjective of SCM
Efficiently Manages this Process by:
• Forecasting Demand• Controlling Inventory• Enhancing Business
Relationships• Receiving Feedback and
Status of Every Link of the Chain
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-20
Real World Cases
Moen Inc., and TaylorMade Golf: Moen Inc., and TaylorMade Golf: Web-Enabling the Supply ChainWeb-Enabling the Supply Chain
• Simultaneous Sharing of Designs Worldwide with Suppliers
• Design Problems Discovered Instantly
• Extranet Site Allows Suppliers to Check Orders Online
• Company has Saved $3 Million or 6% off of Raw Material and Work-in-Progress Inventory Costs
SCM: The Business NetworkSCM: The Business Network
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-21
Real World Cases
SCM Software Helps Firms Reengineer and SCM Software Helps Firms Reengineer and Integrate The Functional SCM ProcessesIntegrate The Functional SCM Processes
Supply ChainLife Cycle
SCMFunctionalProcesses
SCMIntegratedSolution
Supplier Manufacturer CustomerRetailer
The Internet
CollaborativeFulfillment
SharedMarket Data
Commit Schedule Make Deliver
Strategic Sourcingand Procurement
Forecast and Demand Planning
Customer Order Fulfillment Service
Distribution Network and Warehouse Operations
Transportation and ShipmentManagement
ProductionLogistics
SCM: The Business NetworkSCM: The Business Network
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-22
Real World Cases
SCM: The Business NetworkSCM: The Business NetworkBenefits and Challenges of
SCM • More Accurate Order
Processing• Reductions in Inventory
Levels• Quicker Time to Market• Lower Costs• Strategic Relationships
with Suppliers
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-23
Real World Cases
Benefits and Challenges of SCM
SCM: The Business NetworkSCM: The Business Network
• Lack of Proper Planning Knowledge, Tools, and Guidelines
• Inaccurate Demand Forecasts
• Lack of Adequate Collaboration
• Software Itself Immature
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-24
Real World Cases
Business Value GoalsRapid Demand Fulfillment
Collaborative SupplyChain Planning and
Execution
Customer Value GoalsGive customers what theywant, when and how theywant it, at the lowest cost
InterenterpriseCoordination of
Manufacturing andBusiness Process
EffectiveDistribution and
Channel Partnerships
Responsiveness andAccountabilityto Customers
Objectives of Supply Chain Objectives of Supply Chain ManagementManagement
SCM: The Business NetworkSCM: The Business Network
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-25
Real World Cases
Solectron Corp: Failures in SCMSolectron Corp: Failures in SCM• Software Can’t Compensate for
Business Judgment• Forecasts Driving Entire Flow of
Work is Concocted by People, Not Real-time Bits of Data
• Solectron – World’s Biggest Electronics Contract Maker
• Supply Glut Was Brewing• Unrealized Overly Optimistic
Ordering Resulted in Suppliers Sending Excessive Materials Left Solectron Holding the Bag
SCM: The Business NetworkSCM: The Business Network
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-26
Real World Cases
Enterprise Application Enterprise Application IntegrationIntegration
EAI Software Connects Major e-Business Applications Like CRM and ERPEAI Software Connects Major e-Business Applications Like CRM and ERP
Front-OfficeCRM ApplicationsCustomer Service
Field ServiceProduct Configuration
Sales Order Entry
Back-OfficeERP Applications
DistributionManufacturing
SchedulingFinance
EnterpriseApplicationIntegration
EAI
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-27
Real World Cases
• Survey of 75 Related Companies Revealed 18 Different Software Packages
• Lack of Integration Reduces Cost and Speed Savings that Might Be Realized
• Use of WebMethods EAI to Coordinate Processes
• New System Generated Cost Savings• Orders for Product Automatically
Orders Parts
Enterprise Application Enterprise Application IntegrationIntegration
Dell Computer: Enterprise Dell Computer: Enterprise Application IntegrationApplication Integration
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-28
Real World Cases
Order Entry Method
EAI
Billing
Call Center
Finance
Orders &Fulfillment
Manufacturing
Routing
Shipping
e - Mail
Fax
Web
Phone
Enterprise Application Enterprise Application IntegrationIntegration
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-29
Real World Cases
Transaction Processing Transaction Processing SystemSystem
Capture and Process Transactions ImmediatelyCapture and Process Transactions ImmediatelyCable Company A Cable Company B
VideoServer
VideoServer
Host System Host System
InteractiveVoice Response
System
WebServers
FaxServers
San Francisco New York
CommunicationServers
DatabaseServers
ApplicationServers
CommunicationServers
Phone System The Internet
Syntellect Interactive Systems
Middleware
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-30
Real World Cases
• Used for Cable Pay-Per-View Events
• Access by Phone or the WWW
• Database Captures, Processes and Updates
• Teams with over 700 Cable Companies
Syntellect’s Online Transaction Syntellect’s Online Transaction ProcessingProcessing
Transaction Processing Transaction Processing SystemSystem
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-31
Real World Cases
Transaction Processing CycleTransaction Processing CycleCapture and Processing Data, Updating Capture and Processing Data, Updating Databases, and Produce Information Databases, and Produce Information Products Products
DataEntry
Documentand ReportGeneration
DatabaseMaintenance
InquiryProcessing
Transaction Processing•Batch•Online/ Real-Time
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-32
Real World Cases
Enterprise Collaboration Enterprise Collaboration SystemsSystems
ECS Enables Working Together by Helping Us to:•Communicate•Coordinate•CollaborateTools for Enterprise Collaboration…
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-33
Real World Cases
Tools for Enterprise CollaborationTools for Enterprise Collaboration
ElectronicCommunications
Tools
ElectronicConferencing
Tools
CollaborativeWork
ManagementTools
EnterpriseCollaboration
Systems
•Instant Messaging
•Voice Mail
•Faxing
•Web Publishing
•Paging
• Calendaring and
Scheduling
• Task and Project
Management
• Workflow Systems
• Document Sharing
• Knowledge Management
• Data Conferencing
• Voice Conferencing
• Videoconferencing
• Discussion Forums
• Chat Systems
• Electronic Meeting
Systems
Enterprise Collaboration Enterprise Collaboration SystemsSystems
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-34
Real World Cases
QuickPlace by Lotus Development QuickPlace by Lotus Development Collaborative Software ScreenshotCollaborative Software Screenshot
Enterprise Collaboration Enterprise Collaboration SystemsSystems
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-35
Real World Cases
General Electric Co: Committed General Electric Co: Committed to Enterprise Collaborationto Enterprise Collaboration
Enterprise Collaboration Enterprise Collaboration SystemsSystems
•Committed to Lotus Tools – QuickPlace•QuickPlace-Web-based Work Spaces•Sametime (Real-time Online Meetings)•Tools Streamline Communication•18,000 QuickPlaces for 250,000 Users
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-36
Real World Cases
Functional Business Functional Business SystemsSystems
• Variety of Types of Information Systems that Support Business Functions
• Identification of Business Value Created
• Analysis of Challenges to Implementation
Real World Case 2- Real World Case 2- GE Power and Corporate GE Power and Corporate
ExpressExpressClick to go to
Case 2
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-37
Real World Cases
Functional Business Functional Business SystemsSystems
Examples of Examples of Functional Functional Business Business Information Information SystemsSystems
Marketing
ProductionOperations
Human ResourceManagement
Accounting Finance
• Customer relationship management
• Interactive marketing
• Sales force automation
• Cash management• Credit management• Investment
management• Capital budgeting• Financial forecasting
• Order processing• Inventory control• Accounts receivable• Accounts payable• Payroll• General ledger
• Compensation analysis
• Employee skills inventory
• Personnel requirements forecasting
• Manufacturing resource planning
• Manufacturing execution systems
• Process control FunctionalBusinessSystems
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-38
Real World Cases
Marketing SystemsMarketing SystemsMarketing Information Systems
MarketInformation
Systems
InteractiveMarketing
Sales ForceAutomation
CustomerRelationshipManagement
SalesManagement
MarketResearch andForecasting
Advertisingand Promotion
ProductManagement
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-39
Real World Cases
Marketing SystemsMarketing SystemsFive Major Components of Five Major Components of
Target MarketingTarget Marketing
OnlineBehavior Demographic/
Psychographic
Context
Content
Community
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-40
Real World Cases
Marketing SystemsMarketing SystemsSales Force AutomationSales Force Automation•Use of Computers and the Internet
•Improves the Delivery of Information
•Support for Sales People Provides a Strategic Advantage in Sales and Marketing Responsiveness
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-41
Real World Cases
Marketing SystemsMarketing SystemsBaker Tanks: Web-Based Baker Tanks: Web-Based Sales Force AutomationSales Force Automation•Leader in Rentals of Industrial Containment•Foremost in Transfer Equipment•Serves Customers in Construction to Aerospace•Ineffective Access to Huge Data •Used Salesforce.com Web-based System - PDAs Connected for Data•Much Better Communication•Salespeople More Productive
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-42
Real World Cases
Marketing SystemsMarketing SystemsWeb-Based Salesforce.com Web-Based Salesforce.com Automation PackageAutomation Package
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-43
Real World Cases
Manufacturing SystemsManufacturing SystemsComputer-Integrated
Manufacturing (CIM)• Simplify• Automate• IntegrateFlexible Manufacturing SystemsAgile ManufacturingTotal Quality ManagementComputer-Aided Engineering
(CAE)Computer-Aided Manufacturing
(CAM)
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-44
Real World Cases
Computer-Integrated Manufacturing
En
terp
rise
Res
ou
rce
Pla
nn
ing
ManufacturingResources
Planning Systems
ManufacturingExecutionSystems
EngineeringSystems
ProductionForecasting
ProductionScheduling
MaterialRequirements
Planning
CapacityPlanning
ProductionCost Control
QualityControl
Shop FloorScheduling
Shop FloorControl
Machine Control
Robotics Control
Process Control
Computer-AidedEngineering
ProductSimulation and
Prototyping
Computer-AidedDesign
Computer-AidedProcess Planning
Manufacturing SystemsManufacturing Systems
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-45
Real World Cases
Manufacturing SystemsManufacturing SystemsThe Timken Co. Web-Based The Timken Co. Web-Based Manufacturing SystemsManufacturing Systems•Established "Electronic Visibility"
•Used Global Supply Chain•Immediate Parts Location•Speed of Internet Combined With Global Logistics Management
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-46
Real World Cases
Human Resources SystemsHuman Resources SystemsHuman Resource Information Systems
•Recruitment, Selection, and Hiring
•Job Placement•Performance Appraisals•Employee Benefits Analysis•Training and Development•Health, Safety, and SecurityHRM and the InternetHRM and Intranets
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-47
Real World Cases
Supports…Supports…
Staffing Training andDevelopment
CompensationAdministration
StrategicSystems
TacticalSystems
OperationalSystems
• Human resource planning
• Labor force tracking
• Labor cost analysis and budgeting
• Turnover analysis
• Recruiting• Workforce
planning/• scheduling
• Succession planning
• Performance appraisal planning
• Training effectiveness
• Career matching
• Skill assessment• Performance
evaluations
• Contract costing
• Salary forecasting
• Compensation effectiveness and equity analysis
• Benefit preference analysis
• Payroll control• Benefits
administration
Human Resources SystemsHuman Resources Systems
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-48
Real World Cases
An Example of an Employee An Example of an Employee Hiring Review SystemHiring Review System
Human Resources SystemsHuman Resources Systems
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-49
Real World Cases
Human Resources SystemsHuman Resources SystemsCharles Schwab & Co.: Web-Charles Schwab & Co.: Web-Based Human Resource SystemsBased Human Resource Systems• 23,000 Employees Access
Detailed HR Data• Intranet Benefits Employees
Searches • Savings of Hundreds of
Thousands Yearly• Employees Use Online
eForms
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-50
Real World Cases
Accounting SystemsAccounting Systems• Record and Report Business
Transactions• Trace Flows of Funds
Through a Business• Produce Financial
Statements• Forecasts of Future
Conditions• Projected Financial
Statements• Financial Budgets
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-51
Real World Cases
Accounting SystemsAccounting SystemsAccounting Information Systems for Accounting Information Systems for Transaction Processing and Financial Transaction Processing and Financial ReportingReporting
Sales TransactionProcessing System
PurchasesTransactionProcessingSystem
PayrollTransactionProcessingSystem
General LedgerProcessing and
Reporting System
Billing AccountsReceivable
FinancialReporting
AccountsPayable
SalesAnalysis
Purchases
Time-keeping
Cash Receipts and Disbursements Transaction
Processing System
SalesOrder
Processing
CashDisburse-
ments
CashReceipts
GeneralLedger
InventoryProcessing
Payroll
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-52
Real World Cases
Accounting SystemsAccounting Systems
• Order Processing• Inventory Control• Accounts Receivable• Accounts Payable• Payroll• General Ledger
Examples of Widely Used Examples of Widely Used Accounting Information SystemsAccounting Information Systems
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-53
Real World Cases
Accounting SystemsAccounting SystemsAn On-line Accounting ReportAn On-line Accounting Report
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-54
Real World Cases
Financial Management Financial Management SystemsSystems
Support Business Decision Makers in:
•Financing a Business•The Allocation and Control of Financial Resources
Capital BudgetingFinancial Planning Software
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-55
Real World Cases
Important Financial Management Important Financial Management SystemsSystems
CashManagement
InvestmentManagement
CapitalBudgeting
FinancialPlanning
• Forecast andManage cash position
• Manage short-term and other securities
• Evaluate risk/return of capital expenditures
• Forecast financial performance and financing needs
InformationSystems in
Finance
Financial Management Financial Management SystemsSystems
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-56
Real World Cases
Strategic Financial PlanningStrategic Financial Planning
Financial Management Financial Management SystemsSystems
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-57
Real World Cases
SummarySummary• Cross-Functional Enterprise Systems• Enterprise Resource Planning
(ERP): The Business Backbone• Customer Relationship Management:
The Business Focus• Supply Chain Management: The
Business Network• Transaction Processing Systems• Functional Business Systems• Marketing• Manufacturing• Human Resource Management• Accounting and Finance
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-58
Real World Cases
KEY TERMSKEY TERMSAccounting SystemsAccounts PayableAccounts ReceivableBatch ProcessingComputer-Aided ManufacturingComputer-Integrated ManufacturingCross-Functional Enterprise SystemsCustomer Relationship Management
a. Application Componentsb. Business Benefits
e-BusinessEnterprise Application ArchitectureEnterprise Application IntegrationEnterprise Collaboration SystemsEnterprise Resource Planning
a. Application Componentsb. Business Benefits
Financial Management SystemsFunctional Business SystemsGeneral LedgerHuman Resource SystemsInteractive Marketing
Inventory ControlMachine ControlManufacturing Execution
SystemsManufacturing SystemsMarketing SystemsOnline Accounting SystemsOnline HRM SystemsOnline Transaction Processing
SystemsOrder ProcessingPayrollProcess ControlReal-time ProcessingRoboticsSales Force AutomationSupply ChainSupply Chain Management
a. Application Componentsb. Business Benefits
Targeted MarketingTransaction Processing Cycle
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-59
Real World Cases
Real World Case 1 Salesforce.Com and Others: Challenges of Customer Relation-ship Management Systems
Click to go toCase 1
Real World Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration
Click to go toCase 2
Optional Case StudiesOptional Case Studies
Real World Case 3 Welch’s, Straightline, Skyworks, and Pella: The Business Value of Supply Chain Management
Real World Case 4 Lowe Worldwide and HP: The Business Case for Swarming Collaboration
Click to go toCase 3
Click to go toCase 4
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-60
Real World Cases
Electronic CommerceElectronic Commerce
Chapter 8
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-61
Real World Cases
Salesforce.Com and Others: Salesforce.Com and Others: Challenges of Customer Challenges of Customer
Relationship Management Relationship Management SystemsSystems
Return toCases Page
Return toChapter 7
1- Why have traditional CRM 1- Why have traditional CRM software implementations software implementations
been so problematic for many been so problematic for many businesses? businesses?
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-62
Real World Cases
Salesforce.Com and Others: Salesforce.Com and Others: Challenges of Customer Challenges of Customer
Relationship Management Relationship Management SystemsSystems
Discussion Points Would Include: Discussion Points Would Include:
• CRM Software Too Expensive
• CRM Too Complicated• CRM Implementation
Too Long
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-63
Real World Cases
Salesforce.Com and Others: Salesforce.Com and Others: Challenges of Customer Challenges of Customer
Relationship Management Relationship Management SystemsSystems
2- What are the benefits and 2- What are the benefits and drawbacks of the Salesforce drawbacks of the Salesforce
Web-based CRM services Web-based CRM services approach?approach?
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-64
Real World Cases
Salesforce.Com and Others: Salesforce.Com and Others: Challenges of Customer Challenges of Customer
Relationship Management Relationship Management SystemsSystems
Benefits Would Include: Benefits Would Include: •Deal with Few Consultants•No Hardware or IT Labor Costs
•Access Software Over Web•Payment Based On User Numbers
•New Version Upgraded for All
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-65
Real World Cases
Salesforce.Com and Others: Salesforce.Com and Others: Challenges of Customer Challenges of Customer
Relationship Management Relationship Management SystemsSystems
Disadvantages Would Include: Disadvantages Would Include:
•Businesses Resist “Rent-an-App” Idea
•Security Concerns•Lack of Control Concerns•Problems with Customizing•Difficulty of Software Integration
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-66
Real World Cases
Salesforce.Com and Others: Salesforce.Com and Others: Challenges of Customer Challenges of Customer
Relationship Management Relationship Management SystemsSystems
3- Which approach do you 3- Which approach do you prefer? Why? Visit the prefer? Why? Visit the
websites of Salesforce.com websites of Salesforce.com and Siebel Systems for more and Siebel Systems for more information and customer information and customer
examples of their CRM examples of their CRM systems. systems.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-67
Real World Cases
Salesforce.Com and Others: Salesforce.Com and Others: Challenges of Customer Challenges of Customer
Relationship Management Relationship Management SystemsSystems
Discussion Points Would Include: Discussion Points Would Include: •Buy vs. Rent Options•Security and Control Concerns•Customizing•Web-based CRM Integration
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Return toChapter 7
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-68
Real World Cases
Salesforce.Com and Others: Salesforce.Com and Others: Challenges of Customer Challenges of Customer
Relationship Management Relationship Management SystemsSystems
Discussion Points Would Include: Discussion Points Would Include: •Buy vs. Rent Options•Security and Control Concerns•Customizing•Web-based CRM Integration•Full-fledged vs. “stripped-down” CRM system Return to
Cases Page
Return toChapter 7
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-69
Real World Cases
GE Power Systems and GE Power Systems and Corporate Express: The Corporate Express: The
Business Case for Enterprise Business Case for Enterprise Application IntegrationApplication Integration
1- Why has EAI recently “become 1- Why has EAI recently “become a critical part of the IT strategy a critical part of the IT strategy at many organizations,” and a at many organizations,” and a high-ranking project of top IT high-ranking project of top IT executives? Use GE executives? Use GE Power and Corporate Power and Corporate Express Express as examples. as examples. Return to
Cases Page
Return toChapter 7
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-70
Real World Cases
Discussion Points Include the Need to: Discussion Points Include the Need to: • To Meld Disparate Systems • To Integrate Front/Back
Office• To Deliver Data to All• For GE to Connect the
Independent Operations• To Reduce Costs
Internally/Externally
GE Power Systems and GE Power Systems and Corporate Express: The Corporate Express: The
Business Case for Enterprise Business Case for Enterprise Application IntegrationApplication Integration
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-71
Real World Cases
GE Power Systems and GE Power Systems and Corporate Express: The Corporate Express: The
Business Case for Enterprise Business Case for Enterprise Application IntegrationApplication Integration
2- What is the major difference 2- What is the major difference in the business value of the in the business value of the
EAI projects at GE Power and EAI projects at GE Power and Corporate Express? Corporate Express?
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-72
Real World Cases
Major Differences Include: Major Differences Include: • Business Value at GE To:
– Connect Business Units – Send Data in Real Time– Improve Data Quality/Accuracy
• Corporate Express’ Business Value– Not directed To Connecting
Business Units– Focused on Better Customer Service– Reducing Costs/Stay Very
Competitive
GE Power Systems and GE Power Systems and Corporate Express: The Corporate Express: The
Business Case for Enterprise Business Case for Enterprise Application IntegrationApplication Integration
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-73
Real World Cases
GE Power Systems and GE Power Systems and Corporate Express: The Corporate Express: The
Business Case for Enterprise Business Case for Enterprise Application IntegrationApplication Integration
3- What are some of the 3- What are some of the challenges in developing and challenges in developing and implementing EAI systems? implementing EAI systems? How can companies meet How can companies meet these challenges? these challenges?
Return toCases Page
Return toChapter 7
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-74
Real World Cases
Challenges Would Include: Challenges Would Include: •Need Specific IT Skills
•Need Coordination in All Departments
•EAI Costs ($200,000 to $400,000)
GE Power Systems and GE Power Systems and Corporate Express: The Corporate Express: The
Business Case for Enterprise Business Case for Enterprise Application IntegrationApplication Integration
Return toCases Page
Return toChapter 7
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-75
Real World Cases
Challenges Could Be Met By: Challenges Could Be Met By: •In-house IT Training•Planning/Monitoring EAI project
GE Power Systems and GE Power Systems and Corporate Express: The Corporate Express: The
Business Case for Enterprise Business Case for Enterprise Application IntegrationApplication Integration
Return toCases Page
Return toChapter 7
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-76
Real World Cases
Challenges Could Be Met By: Challenges Could Be Met By: •In-house IT Training•Planning/Monitoring EAI project
•Shift Costs to Functional Users
GE Power Systems and GE Power Systems and Corporate Express: The Corporate Express: The
Business Case for Enterprise Business Case for Enterprise Application IntegrationApplication Integration
Return toCases Page
Return toChapter 7
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-77
Real World Cases
Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply
Chain ManagementChain Management
1- What is the business value of 1- What is the business value of supply chain management supply chain management systems for Welch’s and other systems for Welch’s and other companies in the consumer companies in the consumer packaged goods industry?packaged goods industry?
Return to
Cases Page
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-78
Real World Cases
Discussion Points Would Include:Discussion Points Would Include:Welch's Company:• Collaborates Closely With
Customers• Ensure Products Available at
Retailers• Creates Orders• Manages Inventories-1/3 Retail
Customers• Allows Few Retailers to Double
Product Turns
Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply
Chain ManagementChain Management
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-79
Real World Cases
2- What is the business value 2- What is the business value of supply chain management of supply chain management systems for Straightline, systems for Straightline, Skyworks, and other Skyworks, and other manufacturing companies?manufacturing companies?
Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply
Chain ManagementChain Management
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-80
Real World Cases
Discussion Points Would Include:Discussion Points Would Include:
Straightline Company:•Leveraging Supply-Chain Optimization Solution–Help Processors Manage Inventories
–Compete More Effectively Overseas
•Selects Inventory Process
Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply
Chain ManagementChain Management
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-81
Real World Cases
Discussion Points Would Include:Discussion Points Would Include:
Skyworks Access Real-time Data • Give Customers Accurate Product
Availability –Coordinates Capacity Requirements–Coordinates Demand Requirements–Delivery can Occur on Time
• Modify Customer Delivery Date• Change Factory Production• Give Customers Fast Answers
Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply
Chain ManagementChain Management
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-82
Real World Cases
3- How does Pella’s approach 3- How does Pella’s approach to supply chain management to supply chain management systems differ from the other systems differ from the other companies in this case? companies in this case? Which is approach is better? Which is approach is better? Why? Why?
Return toCases Page
Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply
Chain ManagementChain Management
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-83
Real World Cases
Discussion Points Would Include:Discussion Points Would Include:•ERP vendors Oracle, PeopleSoft and SAP
–Actively Market Supply-Chain –Easy Integration Back-end ERP Systems
•Close to Complete with Supply-Chain Automation
Return toCases Page
Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply
Chain ManagementChain Management
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-84
Real World Cases
Discussion Points Would Include:Discussion Points Would Include:•Pella Didn’t Buy Separate Software
–Turned on Different Parts of Suite
–Leveraged Multiple Oracle E-Business Suite
–Modules Streamlined Supply Chain Operations Return to
Cases Page
Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply
Chain ManagementChain Management
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-85
Real World Cases
Which Approach Is Better?Which Approach Is Better?•Develop Alternatives •Leverage-Integrated Supply Chain Feature
•Feature-Module of Software Suite
•Suite can be Turned On
Return toCases Page
Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply
Chain ManagementChain Management
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-86
Real World Cases
Which Approach Is Better?Which Approach Is Better?•Develop Alternatives •Leverage-Integrated Supply Chain Feature
•Feature-Module of Software Suite
•Suite can be Turned On•Don’t Need Separate Software
Return toCases Page
Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply
Chain ManagementChain Management
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 7-87
Real World Cases
1- What are the business 1- What are the business benefits of swarming benefits of swarming
collaboration? Use Lowe collaboration? Use Lowe Worldwide and HP as Worldwide and HP as
examples. examples.
Return toCases Page
Lowe Worldwide and HP: Lowe Worldwide and HP: The Business Case for The Business Case for
Swarming CollaborationSwarming Collaboration
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-88
Real World Cases
Business Benefits Would Include:Business Benefits Would Include:• Lowe Worldwide
– Discover Resources-Didn’t Know Existed– Resulted-Faster Project Completion
• HP Swarming Collaboration– Brings Right People into Team – Quickly Plan/Execute Needs
• Swarming Collaboration– Enables Lowe Worldwide – To Match Smaller Competitor Agility– Creative Hot Shops
• Save-International Fax/Travel/Courier Costs
Lowe Worldwide and HP: Lowe Worldwide and HP: The Business Case for The Business Case for
Swarming CollaborationSwarming Collaboration
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-89
Real World Cases
2- What are some possible limitations 2- What are some possible limitations of swarming?of swarming?
Lowe Worldwide and HP: Lowe Worldwide and HP: The Business Case for The Business Case for
Swarming CollaborationSwarming Collaboration
Limitations of Swarming Would Include:Limitations of Swarming Would Include:•Connectivity Problems•Keeping Employees on Track•Higher Priority Internal Tasks•Time Management of Collaborative Efforts
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-90
Real World Cases
3- Visit the website of Groove 3- Visit the website of Groove Networks and experience their Networks and experience their demo of a working in a shared demo of a working in a shared workspace. Would this support workspace. Would this support
workgroup collaboration? workgroup collaboration? Swarming collaboration? Why or Swarming collaboration? Why or
why not?why not?
Lowe Worldwide and HP: Lowe Worldwide and HP: The Business Case for The Business Case for
Swarming CollaborationSwarming Collaboration
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-91
Real World Cases
Discussion Points Would Include:Discussion Points Would Include:• Students Developing Their
Understanding Of:– Support Workgroup Collaboration– Swarming Collaboration
• Students Discussing Group Collaboration:– Advantages– Disadvantages– Using Class Experiences
Lowe Worldwide and HP: Lowe Worldwide and HP: The Business Case for The Business Case for
Swarming CollaborationSwarming Collaboration
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Copyright 2005, McGraw-Hill/Irwin, Inc. 7-92
Real World Cases
Discussion Points Would Include:Discussion Points Would Include:• Students Developing Their
Understanding Of:– Support Workgroup Collaboration– Swarming Collaboration
• Students Discussing Group Collaboration:– Advantages– Disadvantages– Using Class Experiences– Using Group Project Experiences
Lowe Worldwide and HP: Lowe Worldwide and HP: The Business Case for The Business Case for
Swarming CollaborationSwarming Collaboration
Return toCases Page