Industry Solutions Assignment 2

Industry Solutions Assignment 2 - Texas Southern University...

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Unformatted text preview: Texas Southern University Jesse H. Jones School of Business Management I nformation Systems MIS 678: SAP Applications in SCM I NSTRUCTOR: DR MAYUR DESAI A REPORT ON THE ANALYSIS OF SAP SOLUTIONS IN TWO INDUSTRIES Aerospace/Defense and Public Sector Prepared By ABAYOM I ODUTOLA Fall 2010 1.0 A DESCR IPT ION OF T H E I N D USTR IES For this report, these two industries have been chosen to see the impact of the SAP Enterprise Resource Planning (ERP) system in their respective sectors. There will be similarities as well as differences in the ERP functions designed for each industry and the major companies in each industry will be highlighted. 1. AEROSPACE & DEFENSE I t is also broken down into two sectors described as Aerospace & Defense Manufacturers (A&D) as well as Maintenance, Repair and Overhaul (MRO) service providers. The US aerospace products and parts manufacturing industry includes about 1,300 companies with combined annual revenue of about $170 billion. Major companies include Boeing, Northrop Grumman, Lockheed Martin, Raytheon, and General Dynamics. The industry is highly concentrated and the 20 largest companies account for about 90 percent of industry revenue. Many other companies work primarily as subcontractors to the five largest manufacturers. The industry is dependent in large part on federal government spending and the aerospace industry is cyclical by nature and unpredictable, due to uncertainty of the annual government budgeting. The Demand in the United State is driven by the US military budget and the overall economic climate, which affects airline traffic and demand for new commercial aircraft. The profitability of individual companies depends on technical expertise and the ability to accurately price long-term contracts. Large companies enjoy economies of scale in design, manufacturing, and purchasing. Small companies can compete effectively by concentrating on selected components and parts manufacturing for particular prime contractors. Increasingly, small companies are developing system integration capabilities as large firms outsource more aspects of contracts. US Aerospace & Defense Spending Source: http://www.aerospacedefenseindustry.com 1.1.1 Primary Demand D rivers Domestic military budget Domestic economic climate, affecting airline travel and demand for new commercial traffic Threat of international warfare Upward mobility in the population, creating demand for air travel 1.1.2 Profitability D rivers Technical expertise Accurately pricing long-term contracts 1.1.3 Major companies in Aerospace & Defense In the United States, Boeing, the world’s largest aerospace company, is the primary military aircraft and space shuttle contractor. Boeing is the number two manufacturer of commercial airplanes, behind Airbus, and second largest collector of defense contracts, behind Lockheed Martin, in the world. They make two-thirds of their sales in the U.S. Airbus, which is a division of EADS, the European Aeronautic Defense and Space Company, is the primary producer of...
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This note was uploaded on 07/11/2011 for the course ECON 121 taught by Professor Mike during the Spring '09 term at Our Lady of Holy Cross College.

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Industry Solutions Assignment 2 - Texas Southern University...

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