ERP and elctronic commerce online12.ppt

ERP

1. 1
Chapter 8
ERP and Ecommerce

2. 2
Chapter 6 Learning Objectives
•Name and describe the types of e-commerce
•State why ERP is essential to the success of a
company engaged in e-commerce
•Describe what an ASP does
•State how ERP is delivered to users by an ASP
•Provide examples of wireless connectivity to ERP
systems and their importance

3. 3
E-Commerce Background
•Business-to-Consumer (B-to-C)
–Fast growth
–Rich information on customers
–Efficiency
–Customer incentives
–Access to huge markets

4. 4
E-Commerce Background
•Business-to-Business E-Commerce
–Transforming how companies sell to each other
–Electronic Data Interchange (EDI)
–Internet-Based Procurement
–Internet Auctions and Reverse Auctions

5. 5
E-Commerce and ERP
•Back-office processing
•Integrating the Internet front-office
operation and ERP back-office operation is
fundamental in today’s business
environment

6. 6
FS’s Web-Ordering Problem
•Choose to either:
–Implement a Web-based ordering systems
–Implement an ERP package like SAP R/3

7. 7
ERP through an ASP
•Application Service Providers (ASPs)
–Advantage: Affordability
–Advantage: Shorter Implementation
–Advantage: Expertise

8. 8
ERP through an ASP
•Application Service Providers (ASPs)
–Disadvantage: Security
–Disadvantage: Bandwidth/response time
–Disadvantage: Flexibility
–Disadvantage: No frills
–Disadvantage: Technical help, not business

9. 9
FS’s ERP Delivery Decision
•FS has 2 choices:
–Buy new computers, disk space, the rights to
the software, and a full installation
–Run the ERP off the Web via an ASP

10. 10

11. 11
Connectivity
•Web and Wireless
–Advantage: Efficiency
–Advantage: Productivity
–Advantage: Data collection
–Advantage: Higher profits

12. 12
Connectivity
•Web and Wireless
–Challenge: Cost
–Challenge: Coordination
–Challenge: Lack of standardization
–Challenge: Security

13. 13
FS’s Web Access Problem
•SAP Travel Planning Application
–Real-time access to reservations
–Better recording and tracking
–Better account management
–Lower-cost contracts with travel service
providers

14. 14
Interview with AstraZeneca’s
Claudio Spiguel
•Perceived benefits of ERP
–Globalization
–Regulatory environment
•ERP’s easy sell:
–Control
•Unusual concerns for pharmaceutical industry
•E-commerce in pharmaceutical industry
•Future of ERP

15. 15
Nestle, E-commerce and ERP
•Nestle will spend 3 years implementing SAP
•Spend $200 million plus
•Desire to organize back-office infrastructure
•Using mySAP.com to customize each user’s
desktop
•Five international data centers
•Providing extensive training

16. 16
Chapter Summary
•E-commerce is transforming business
•B-to-B e-commerce is changing the way
companies buy and sell goods
•ERP is essential for all e-commerce
•ASP’s are allowing companies to acquire ERP
systems without a large initial investment
•Wireless connectivity to ERP systems is gaining
popularity