Integrated Business Information Systems: A Holistic View of the Linked Business Process Chain ERP-SCM-CRM-BI-Big Data PDF
Preview Integrated Business Information Systems: A Holistic View of the Linked Business Process Chain ERP-SCM-CRM-BI-Big Data
Klaus-Dieter Gronwald Integrated Business Information Systems A Holistic View of the Linked Business Process Chain ERP-SCM-CRM-BI-Big Data Integrated Business Information Systems Klaus-Dieter Gronwald Integrated Business Information Systems A Holistic View of the Linked Business Process Chain ERP-SCM-CRM-BI-Big Data Klaus-DieterGronwald LucerneUniversityofAppliedSciencesandArts LucerneSchoolofBusiness Lucerne,Switzerland ISBN978-3-662-53290-4 ISBN978-3-662-53291-1 (eBook) DOI10.1007/978-3-662-53291-1 LibraryofCongressControlNumber:2017941010 TranslationoftheGermanlanguageedition“IntegrierteBusiness-Informationssysteme”.©Springer- Verlag2015. ©Springer-VerlagGmbHGermany2017 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinor for anyerrors oromissionsthat may havebeenmade. Thepublisher remainsneutralwith regardtojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations. Printedonacid-freepaper ThisSpringerimprintispublishedbySpringerNature TheregisteredcompanyisSpringer-VerlagGmbHGermany Theregisteredcompanyaddressis:HeidelbergerPlatz3,14197Berlin,Germany This book is dedicated to Inge, Alexandra, Victoria Preface Standardized IT-supported information systems and business processes are influencing each other. They are integrated parts of entrepreneurial thinking and action. Especially the latest developments of big data methodologies and in-memorycomputingaretechnology-driveninnovationswhichhaveasignificant impactoncorporatestructuresandthecompetitivesituationofcompanies.McAfee andBrynjolfsson(2012)callBigDataTheManagementRevolution. IntegratedBusinessInformationSystemsmutatemoreandmoreintoIntelligent BusinessIntegrationSystems. Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Cus- tomerRelationshipManagement(CRM),BusinessIntelligence(BI),andBigData Analytics(BDA)arebusiness-relatedtasksandprocesses,whicharesupportedby standardized software solutions. This requires business-oriented thinking and act- ingfromITspecialistsanddatascientists. TimothyLeonard,consultantanddatascientist(Eckerson2012),wrote:“Irose up through the technical ranks and learned the hard way that you can’t be perceived as an IT person. You need to be perceived as a business person who usestechnologytosolvebusinessproblems.” This quote can be applied directly to computer scientists when they deal with business process-related tasks. It is a good idea to let students experience this directly from the business perspective, for example, as executives of a virtual company in a serious gaming environment. The course simulates the stepwise integration of the linked business process chain ERP-SCM-CRM-BI-Big Data of fourcompetinggroupsofcompanies.Thecourseparticipantsbecomeboardmem- bers with full P&L responsibility for business units of one of four beer brewery groupseachfromproductiontoretailer. Thestoryisacombinationoffactsandfiction.Globalandlocalbeermarketsare occupiedbybeergiants.Fourinvestorgroupshaveacquiredsomeoftheindepen- dent breweries including their entire supply chains from retailer to production (Alpha Beer, Green Beer, Royal Beer, and Wild Horse Beer). Each group has four retail chains distributed all over the country. There is a typical post-merger vii viii Preface situation right after the foundation of the four groups with business units having differentbusinessprocesses,productportfolios,rules,tools,andITinfrastructures. With the strategic goals of an ERP implementation (standardizing business pro- cesses, standardization of master data, optimization of the IT infrastructure), the post-mergersituationwillbecleared.Thenextstepistooptimizethesupplychains introducing Supply Chain Management (SCM) techniques. With a focus on sales and marketing, Customer Relationship Management (CRM) is implemented initi- atingthedirectcompetitionofthefourgroups.Real-timeBigDataAnalyticsisthe final step for the successful implementation of Integrated Business Information Systems. Role play and gaming phases alternate gradually, starting with the for- mationofthebusinessunitsandtheanalysisoftheinitialbusinesssituation. The virtual gaming environment www.kdibis.com is the web-based business simulation system created specifically for these courses. It is complementary to thebookwithtemplatesfordecisionsandpresentationsincludingsimulationresult. Beeristheidealproductforasupplychaingame:Theproductionprocessiseasy tounderstand;itconsistsoffewmainingredientsandhasafixedproductioncycle of7days.Itcaneasilybecustomizedinavarietyofproducts(bottle,flip-topbottle, partykeg,6-pack,...)andcaneasilybedistributed.Thereisacontinuousdemand withmoderatevariations,seasonalandrandom,whichguaranteesagooddynamic for forecasting and inventory management as essential supply chain management components. The retail groups can also be diversified with different business and distributionmodels,frombeveragemarketsandretailshopstobeerboutiques,each withaspecificproductportfolio. TheclassicalBeerGameorBeerDistributionGame,developedinthe1960sby theSloanSystemDynamicsGroup(Sterman1987)toteachscientificprinciplesin management, isused todaymainlytoexperience theBullwhip Effect, aphenome- non in noncommunicative supply chains (Riemer 2012) which has a significant impact on the inventory costs. It is the initial game phase of the kdibis game. In contrasttothetraditionalBeerGamewithonecompany,asimplefour-stagesupply chain(retailer,distributor,wholesaler,factory),andoneproduct(beer),kdibishas fourbusinessgroupseachwithafour-stagesupplychainandfourretailchainswith eleven products each. For each product, for each retailer, a random demand is generated. Additionally, one of four annual consumption distributions, also ran- domlyselected, issuperimposed.Thesedistributionscorrespondtorealdatafrom the countries United States, Germany, Austria, and Switzerland as well as the average consumption fluctuations in demand. This is done for each of the four teams.Asaresult,eachcompanyhasitsowninitialdatadistribution,revenue,and marketshare. Thestructureofthebookfollowsastep-by-stepimplementationandintegration of ERP, SCM, CRM, BI, and Big Data Analytics from a business and project manager’sperspective. The instructor is included into the role play as chairperson discussing the performance of each team in formal board review meetings. Ideal team sizes are between 20 and 30 students with four companies and two students per role. The Preface ix idealsizeis20,fourteamswithonepersonperrole.Theidealclassroomwouldbea room with four separate round or squared tables for eight to ten people. Those “learningislands,”oneforeachcompany,haveturnedouttobeextremelyimpor- tantfor animmediateidentification ofthegroups with theircompany,developing their own group dynamics from day one, while sensing the other groups in the room.Itisanoisyexperiencewithalotofemotions,laughter,andfun. Online games and role play are optional. The book can be used alone as structured textbook where Part I serves as project guide for the step-by-step introduction of the respective information systems. However, there are no direct exercises for each chapter. Here, too, it is assumed that the course participants present their respective work results and company decisions during the course. CorrespondingexercisescanbegeneratedfromthematerialinPartIII.Hereends thescopeofthisbook. Thestorycontinueswithphasefiveoftheimplementationoftheprocesschain ERP-SCM-CRM-BI-BIG DATA in the book Global Communication and Collab- oration – Global Sourcing, Global Project Management, Cross-Cultural Compe- tencies (Gronwald 2017): outsourcing of IT and Business Services. The four beer groupsAlphaBeer,GreenBeer,RoyalBeer,andWildHorseBeerhavegrowninto global beer giants with a global presence on almost all continents. They are the avatars for Anheuser-Busch InBev, Carlsberg, Heineken, and SABMiller. All of them have outsourced their IT and Business Services to captive centers. Alpha Global IT & Business Services, Green Global IT & Business Services, Royal Global IT & Business Services, and Wild Horse Global IT & Business Services have become profit centers in our simulation. Additionally, they have decided to offshore parts of their services to one or two India-based global service providers (gdigservicesandidktech). Studentswillbecometheleadershipteamswithrolesasserviceclusterheadsfor ERP,SCM,CRM,andBigDataAnalytics(BDA)headedbyaProgramManager. I would like to thank the Lucerne University of Applied Sciences and Arts, which has supported this project with special funding, and has thus committed to newteachingandlearningmethods.ThankyoutoallmystudentsattheUniversity ofAppliedSciencesandArtsNorthwesternSwitzerlandandLucerneUniversityof AppliedSciencesandArts,whohelpedmefindtherightway,andIapologizetoall ofyou,whosufferedfromsomeofmyexperimentsgonewrong. Rotkreuz,Luzern,Switzerland Klaus-DieterGronwald References Eckerson W (2012) Secrets of analytical leaders: insights from information insiders. Technics Publications, LLC, Westfield. http://searchbusinessanalytics.techtarget.com/feature/Data- driven-culture-helps-analytics-team-generate-business-value.Accessed16Nov2014 GronwaldK(2017)Globalcommunicationandcollaboration–globalprojectmanagement,global sourcing,cross-culturalcompetencies.Springer,Berlin x Preface McAfee A, Brynjolfsson E (2012) Big data: the management revolution. Harvard Business Review. https://hbr.org/2012/10/big-data-the-management-revolution/ar. Accessed 16 Nov 2014 RiemerK(2012)Bullwhipeffect.TheUniversityofSydney.http://www.beergame.org/the-game/ bullwhip-effect.Accessed16Nov2014 Sterman J (1987) Modeling managerial behaviour: misperception of feedback in a dynamic decisionmakingexperiment.SloanSchoolofManagement,MassachusettsInstituteofTech- nology,Cambridge,MA Contents 1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Reference. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 PartI RoleBasedBusinessSimulation 2 PreparationandInitiation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.1 InitialSituation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2 RegistrationandRoles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.2.1 Registrationatkdibis.com. . . . . . . . . . . . . . . . .. . . 6 2.2.2 Roles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.3 Preparation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.4 GameStructureandOrganization. . . . . . . . . . . . . . . . . . . . . 7 2.5 Step1:SupervisorRegistration. . . . . . . . . . . . . . . . . . . . . . . 8 2.6 Step2:CreatingClasses. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.7 Step3:CreatingGames. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.8 Step4:RegisterStudents. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.9 StudentLogin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2.10 KdibisWebinarSystem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3 DevelopmentandImplementationofanERPStrategy. . . . . . . . . . 11 3.1 SituationAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.2 ERPStrategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.3 M&AITIntegration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3.4 ProductPortfolioAnalysis,CleansingandBusinessProcess Standardization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3.4.1 Order-to-DeliverProcessRetail Chain1—Distributor. . . . . . . . . . . . . . . . . . . . . . . . 14 3.4.2 Order-to-DeliverProcessRetail Chain2—Distributor. . . . . . . . . . . . . . . . . . . . . . . . 14 xi
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