BUSINESS INTEGRATION: THE ERP SIMULATION

Course Outline
March-May 2023

Instructor
Dr. Nikos Mylonopoulos
Email: nmylonopoulos@alba.acg.edu
Zoom/Teams: nmylonopoulos@alba.acg.edu, Google: nikmyl
Feel free to contact me through Teams, Zoom, Skype, Google, LinkedIn, and email.
For meetings please confirm availability in advance.

Course Description
This module is motivated by the great importance of Enterprise Information Systems (EIS) otherwise known as
Enterprise Resource Planning (ERP) systems in organizations, and the equally great difficulties (and frequent failures)
implementing them.

What is the business problem that ERP systems try to solve? One of the biggest challenges facing companies
is to achieve seamless collaboration and coordination across multiple organizational units (offices, departments,
branches, divisions, subsidiaries, etc) and functions (operations, marketing, sales, finance, etc). This is a problem
facing all kinds of companies, large and small alike. It is a problem inherent in the fundamentally hierarchical
structure of all organizations and the root cause of many common symptoms such as inconsistent customer service,
low productivity, wasted resources, contradictory management reporting, and others. There is nothing more
frustrating for a customer than to be passed from one official to another and given inconsistent answers (or none at
all). And there is nothing more frustrating for a senior manager seeking a simple answer (e.g. what is the number of
new customers this month) than to receive contradictory reports from different departments.

What are ERP Systems? Enterprise Information Systems (EIS, or otherwise known as Enterprise Resource Planning
(ERP) systems) have been designed to enable, support and promote seamless collaboration and coordination across
organizational units by maintaining a "single source of the truth" (i.e. a unique way for recording all the information
that managers are interested in) and comprehensive access to it via standardized and disciplined processes.
Obviously, ERP systems on their own are not a magical solution to coordination problems in business (other important
elements of organizing must also be addressed). However, the consistent and reliable management of information
and business processes is a mean feat and a tremendous tool. In addition, Business Intelligence and Big Data
Analytics enabled by integrated enterprise systems represent a cutting-edge innovation and competitive opportunity
for organizations in every industry.

What does it take to deliver ERP Systems? For better or worse, the implementation or update of EIS in business
is, a lot of the time, a painful experience. It involves a protracted organizational change in business processes,
organizational structures, work routines, and broader mindsets. It demands effective leadership and disciplined
collaboration across all levels and functions.

How is this course structured? First, During our lab sessions, we shall practice using SAP ERP (the global market
leader) in a highly realistic simulation. Therefore, you will learn what it takes to manage complex business operations
end-to-end using SAP and rich analytics. Second, you will acquire some basic SAP skills which are in high demand in
the job market.Third, we will discuss case studies that will help us grasp the broader challenges.

What is the SAP ERP Simulation about? In teams, you will run your own company and will compete against each
other for profit in a simulated market. The goal is to learn in action what it is like to run a company end-to-end via an
integrated Enterprise Information System. Using the very same SAP software systems that many companies use every
day all over the world, you will carry out product strategy, forecasting, procurement, production, marketing,
distribution, sales, and financial management. In order to do well, you have to achieve effective collaboration and
coordination as well as extensive data analysis and data-driven decision making, under significant complexity and time
pressure. Keep in mind that all components of this simulation are either the same business processes and SAP
transactions that all companies use, or highly realistic and sophisticated simulations of market mechanisms. The ERP
Simulation has been developed at HEC Montreal. See http://erpsim.hec.ca

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Learning Objectives
This course employs a playful learning approach to a highly complex, opaque and integrated set of skills, namely
the management and coordination of integrated business processes and data-driven decision making in practice, using
state of the art information systems. It is targeted to managers of all levels and specializations, to the extent that no
manager can be exempt or isolated from the challenges of analyzing and sharing information, collaborating and
coordinating effectively with other business functions, divisions or other organizational units.

The learning objectives of the course are:

• To understand the role and significance of ERP systems in harnessing the power of information.
• To practice complex data-driven decision making using large datasets, real-time data, state-of-the-art data
visualization, and spreadsheets.
• To integrate and apply knowledge gained in the areas of strategy, marketing, operations, decision making,
accounting, and finance, in a simulated, yet highly complex and realistic company.
• To exercise in practice how to achieve specialization, coordination, and leadership in teams under pressure.
• To gain familiarity with one of the leading ERP software systems globally.

After completing this course, participants should be able to:

• See through the silos in their own work environments and to contribute towards implementing technology
solutions for more effective collaboration and coordination.
• Address functional issues (problems, projects, objectives) with an acute awareness of the broader
dependencies, implications, and consequences.
• Converse in the language and mindset of integrated business processes and ERP systems.
• Analyze, summarize and present large, complex and real-time datasets for performance-critical decision making.

Course Schedule All readings listed below are mandatory and available on Teams
• Overview of ERP Simulation
Session 1 22 Mar
• Introductory Manufacturing Game
• ERP Sim Manufacturing Participant’s Guide pages 7-30, 36-50, and 67-75
Pre-Reading
• Manufacturing Introduction Job Aid
• ERP Systems in Business
Session 2 29 Mar
• Introductory Manufacturing Game 1 and Intro to Business Intelligence
• Warburtons Case Study
• ERP Sim Manufacturing Participant’s Guide pages 7-30, 36-50, and 67-75
Pre-Reading
• Manufacturing Introduction Job Aid
• OData Excel + OData Reference Guide
Session 3 • Introductory Manufacturing Game 2 and Intro to Extended Version 5 Apr
• ERP Sim Manufacturing Participant’s Guide pages 31-35, 51-60, and 79-91
Pre-Reading • Manufacturing Extended Job Aid
• OData Excel + OData Reference Guide
• How ERP Projects get out of control
Session 4 12 Apr
• Extended Manufacturing Game 1
• Nestle Case Study
• ERP Sim Manufacturing Participant’s Guide pages 31-35, 51-60, and 79-91
Pre-Reading
• Manufacturing Extended Job Aid
• OData Excel + OData Reference Guide
• Alignment and Standardization in Enterprise Systems
Session 5 26 Apr
• Extended Manufacturing Game 2
• Lidl Case Study: Source 1 and Source 2
• ERP Sim Manufacturing Participant’s Guide pages 31-35, 51-60, and 79-91
Pre-Reading
• Manufacturing Extended Job Aid
• OData Excel + OData Reference Guide
Session 6 • Advanced Manufacturing Game 1 – VIA ZOOM 6 May
• ERP Sim Manufacturing Participant’s Guide pages 61-64
Pre-Reading • Manufacturing Extended Job Aid + Manufacturing Advanced Job Aid
• OData Excel + OData Reference Guide
• The Present and Future of ERP Systems
Session 7 16 May
• Advanced Manufacturing Game 2
• Shoprite Case Study
Pre-Reading • ERP Sim Manufacturing Participant’s Guide pages 61-64
• Manufacturing Extended Job Aid + Manufacturing Advanced Job Aid

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Books and References
• All teaching material will be distributed electronically through Microsoft Teams. Some handouts will also be made
available in print for use in class.
• The main mandatory reading is the ERP Sim Manufacturing Participant Guide.
• Presentations and other readings will be made available on Microsoft Teams.
• The following classics are seminal and highly recommended (Available on Teams)
▪ Investing in IT that makes a competitive difference (McAfee and Brynjolfsson, HBR, 2008).
▪ Putting the enterprise into the enterprise system (Davenport, HBR, 1998).
▪ How process enterprises really work (Hammer and Stanton, HBR, 1999).
▪ Mastering the three worlds of IT (McAfee, HBR, 2006).
▪ Governing the Wild West of predictive analytics and business intelligence (MISQE 2018).
o E-textbook “Readings on Enterprise Resource Planning”.

Course Evaluation
# Assessment Component Group or Individual Weight
1 ERP Simulation Performance Group 40%
1.1 Introductory Version Group 5%
1.2 Extended Version Group 15%
1.3 Advanced Version Group 20%
2 Analytics Deep Dive Individual 30%
3 Case Study Analysis Individual 30%
4 Peer Evaluation Individual Weight on total Group

ALL INDIVIDUAL ASSIGNMENTS TO BE SUBMITTED VIA BLACKBOARD

1. ERP Simulation Performance

Grade in this category starts counting from session 1. The higher your Company Valuation, the higher your
grade, and vice versa. Company Valuation figures will be converted to grades. The team with the highest valuation in
its Section will be assigned a 4; the other teams will be graded proportionately. This means that your distance from
the top team is more important than your rank order. Here is an example from past years of how team grades are
calculated. Note that weights this year are different (5-15-20). VAL stands for Company Valuation.
This is a fair, reliable and representative measure of team performance. The teams with a better strategy,
better skills, better team organization and better execution have higher valuations. You can’t game the simulation or
win by chance unless you cheat. All kinds of cheating will be penalized, even if unintended.
For more details on Company Valuation see the Participant Guide, pages 32-34. Each version of the simulation
(introductory, extended, advanced) may be played more than once. Each play of the simulation is independent of all
others and with quasi-random initial conditions. For the purposes of grading, the valuations of each play per team per
simulation version (Intro, Extended, Advanced) will be added before that sum gets converted to grade.

2. Analytics Deep Dive – Multiple Deadlines

For the teams to work well, each member must acquire the relevant skills and do his or her work well. These
individual assignments aim to encourage individual engagement and learning in a timely manner. Each student will
submit two versions of their analytics deep dive, as follows:
1. Session 5 Annotated Dashboard (Deadline 25 April)
2. Session 7 Annotated Dashboard (Deadline 15 May)

The format of the Analytics Deep Dive may be an Excel Spreadsheet file, or a dashboard from any Web-based
analytics tool that you may be familiar with (e.g. PowerBI), or a PowerPoint presentation.

Each Analytics Deep Dive will have the following structure (please adhere to this structure):
1. Statement of question
• State verbally ONE question (or problem) you wish to explore within the data. For example, "why did we
end up last, given that we were ranking first at the beginning of the second round?". Or something more
specific, like "What was the impact of our investment in production capacity on gross and net profit
margins?".
• Present some summary data (tables or charts) to demonstrate the relevance of the question.

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 2. Diagnosis
• Present relevant charts and tables to show how you arrive at the answer within the data.
• Annotate your tables and charts to make them self-explanatory (to point out which numbers or changes
to pay attention to). Use titles, legends, arrows, circles, etc.
• Add brief text narrating the story that the data are telling.
• Make sure that data and story are tightly coupled.
3. Recommendations
• In bullet points, propose a small number of recommendations for improving your team's performance.
• Make sure your recommendations are based on your analysis.
• Your recommendations may relate to strategic or operational decisions, and/or on your team's
organization (how you assign roles and how you communicate).
• If your team is doing everything perfectly and there is nothing to improve, share your secrets of success
(the most important factors that enabled this star performance).

The following questions are intended as optional guidance for your Analytics Deep Dives:
a. You may have to provide comparative data for your team and your main competitors or comparators.
b. Less is more: try to avoid crowding your charts and table with too much data. Aggregate, slice and dice your
data to reveal meaningful and useful insights.
c. Make sure you choose the appropriate visualizations (bars vs lines vs pies, etc), make all fonts readable
(large!), add descriptions, pointers (arrows, circles, etc) and short text with key message/observation. Also
keep charts and tables, sparse, not crowded.
d. Stay focused on one question that you examine in depth. Do not present every available piece of data. Go for
depth over breadth. Make your Deep Dives meaningful and useful for your team.

You will be awarded grade points for analysis effort, insight, originality, appropriate use of chart types,
presentation, coherence of text and data, and overall good use of analytics tools.

3. Case Study Analysis

This is an essay of up to 1000-1500-words, to be delivered the latest by 28 May.

Choose one of the following two options.

1. Apply the lessons learned in this course about Enterprise Systems to your personal work experience.
2. Answer two out of a list of questions related to the case studies we discuss in the class.

If you choose option 1, you may find the following questions useful in framing your essay (you do not have to
answer all of them or to be restricted by this list)
- Choose one particular enterprise system in one particular company you have had experience with.
- What type of system is it (ERP, CRM, SCM, other)? What processes/operations does it support?
- How many employees are users of that system? In which departments?
- What is the business value of this systems to the specific company?
- To what extent this system supports all relevant processes, operations, and needs? Are there gaps in the flow
of work or data? Do users rely on other formal or informal (e.g. Excel) tools to complete their work?
- To what extent is the company exploiting the full capabilities of this system?
- To what extent and in what ways are the data collected in this system being exploited with analytics tools in
decision making processes?
- What can you tell about the history of development and implementation of this system? How old is it? What
was the experience of implementation and roll-out?
- What is the future of this system: is the company investing in improving and maintaining it or are there plans
to replace it?

If you go for option 2, choose one of the four case studies we will have discussed in class (listed in the schedule
above: Warburton's, Nestle, Lidl, Shoprite) and then choose two of the questions listed for that case study on Teams
to answer. You will be expected to have read the case study text. Additional research on the particular story will be
highly valued. Make your arguments specific to the circumstances of the case and the available evidence. You will
often have to make reasonable assumptions about what exactly might have transpired. Be explicit about such
assumptions and try to justify them. References to the recommended readings will also be highly valued. Make sure
such references are properly integrated in your answers (and appropriately cited).

Case Studies will be evaluated on the following criteria (applies to both options):
1. Comprehension

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 Demonstrate a good understanding of the concepts and theories discussed in the class. Make explicit linkages
between your analysis and the readings, experience, or discussion in the class. Such linkages will have to
contribute to your core narrative in a relevant and appropriate way.
2. Analysis
Adopt an analytical stance, demonstrating the causal sequence of events. Present concrete evidence or
examples and your sources of information. Separate the events and facts from your interpretations and
attributions. Do make interpretations and attributions but when doing so use argument to explain and justify.
3. Critical Evaluation
Adopt an evaluative stance; consider multiple perspectives; develop and justify your own arguments. When
you identify successful and unsuccessful practices, be cautious and consider all reasonable sides to your
argument. When giving recommendations consider the alternatives and provide convincing justification,
taking into account both the generally recommended best practices and the idiosyncratic context of your
particular story.
4. Writing and impact
Structure, clarity, flow. Good use of English. Appropriate use of sources, tables, charts, etc. Make good use of
the theory and the readings. Avoid quoting your sources verbatim, instead integrate that information into
your narrative and cite the sources appropriately. When you do quote, put the text inside double inverted
commas and cite the source, including page number where appropriate.

4. Peer Evaluation You have been given 100,000 Euros to distribute to your team members as bonus for
their contribution to the team effort in analysis, planning, organization and execution
Much of the work that you will do in this course will take from the beginning of the course. Distribute this amount to each member of the team,
place in teams. The better organized and managed teams including yourself.
always perform better (attain higher Company Valuation). As Angela Donald Emmanuel Theresa Vladimir total
Angela 30,000 5,000 30,000 20,000 15,000 100,000
an additional reminder, incentive and evaluation metric, you Donald 10,000 50,000 10,000 10,000 20,000 100,000
will all fill a peer evaluation form at the very end of the Emmanuel 30,000 15,000 30,000 15,000 10,000 100,000
course. The sum of peer evaluations for each team member Theresa 15,000 25,000 20,000 30,000 10,000 100,000

will be converted to a percentage and applied as a weight to Vladimir

total
10,000 35,000
95,000 130,000
10,000
100,000
15,000
90,000
30,000 100,000
85,000
the total group grade. Here’s an example of a fictional team. max 130,000 130,000 130,000 130,000 130,000
Submit your completed Peer Evaluation form by 17 WEIGHT 73% 100% 77% 69% 65%
May.
The story, all names, characters, and incidents portrayed in this example are fictitious. No identification with
actual persons (living or deceased), places, buildings, and products is intended or should be inferred.

About the Instructor

Dr. Nikos Mylonopoulos is Professor of Digital Business at Alba Graduate Business School, The
American College of Greece and Director of the SEV Center of Excellence in Creative Leadership.
Holds degrees from Warwick Business School and the Athens University of Economics and Business.
He has teaching and research interests in the areas of digital business, digital transformation,
enterprise systems, social media and mobile services.
He has taught at Warwick Business School, Sheffield University Management School, Loughborough
University Business School, Birkbeck College (University of London), Kedge Business School, and the Athens University
of Economics and Business.
He delivers Executive Education seminars to senior leaders of global companies in banking, pharma, industrials, IT,
and others. Much of his teaching makes use of computer-based business simulations (by Harvard Business Schools,
INSEAD/CALT and HEC Montreal).
His research has been published in international refereed journals and conferences, including Management Science,
International Journal of Electronic Commerce, Frontiers in Psychology, Computers and Human Behavior,
Communications of the ACM, among others. He has led and participated in numerous international research consortia
with funding from the European Commission.
During the 2009-2014 Greek crisis, he led a successful turnaround as Associate Dean of Academic Programs and MBA
Academic Director. He has also served as Associate Dean of Innovation and Technology, Academic Director of Applied
Research and International Projects, and Academic Director of IT.
He is a member of the Association of Information Systems. As a Board Member of HEPIS (Hellenic Society of
Informatics Professionals) he was the lead author of the reference study on employability and digital skills in Greece.