Enterprise Resource Planning

ERP Systems


I
from End to End
Chapter 12 pages 157-165
Business Plug-In B10 pages 364-372


SCM systems focus specifically on
CRM systems focus specifically on


The organization before ERP ( systems)
Isolated Information: their own systems
Update issues Redundant/
Inaccurate and different
Different in the different databases
Cant access information maintained by another department
Cant of the entire organization

ERP: Bringing the Organization Together
ERP integrates
(or integrated set of IT
systems) so that employees can make enterprise wide
decisions by viewing enterprise wide information on all
business operations ( enterprise wide information)
Keyword in
ERP is
enterprise

ERP systems focus
on
all processes,
departments and
operations for the
entire enterprise
We dont need this ERP stuff. We
already have enterprise wide
software that we are all using. It is
called a SPREADSHEET.
S
a
l
e
s
A
c
c
t
g

Enterprise Resource Planning
ERP systems
and correlates the data generating an enterprise wide
view that is consistent and real-time.
involved in sourcing, producing and delivering a
companys product
C


Complete




Real time

Consistent

O

Components of ERP Software
Three core components focus on
(accounting/finance, production/materials management and HR)

Extended components typically focus on
and require interactions with customers, suppliers and
business partners
Typically
Internet
enabled.

Make sure that
you know what
each component
typically handles.
Skipped details
slides follow
CORE ERP COMPONENTS
Accounting and finance component manages
accounting data and financial processes within the
enterprise with functions such as general ledger,
accounts payable, accounts receivable, budgeting,
and asset management

Human resource component tracks employee
information including payroll, benefits,
compensation, performance assessment, and
assumes compliance with the legal requirements
of multiple jurisdictions and tax authorities

CORE ERP COMPONENTS
Production and materials
management component
handles the various
aspects of production
planning and execution
such as demand
forecasting, production
scheduling, job cost
accounting, and quality
control

Extended ERP Components
Extended ERP components include:
Business intelligence
Tools to help analyze your business information and better
understand it so that you can better understand the business.

Customer relationship management
Supply chain management

E-business
E-logistics manages the transportation and storage of goods
E-procurement the business-to-business (B2B) purchase
and sale of supplies and services over the Internet


Enterprise Resource Planning
(ERP)
At the heart of all ERP systems ,
when a user enters or updates information , it is


Enterprise Resource Planning
(ERP)
E

ERP Benefits
1. Having integrated systems helps
that many businesses had previously
started to use (also didnt have to fix those old legacy systems)
2. Integrate financial information and customer order information
3. Everyone working with the same information
and removes misinformation

4. Standardize and speed up manufacturing processes, as well as
reduce inventory
5. ERP addresses the
6. One of the greatest benefits of an ERP system is

. Provides organizations with information that
was previously difficult (if not impossible) to obtain, allowing the
organization to perform more efficiently and effectively.

ERP Risks (Costs)
Costly in terms of


One vendor risks: too costly to .
Company essentially held hostage.


Employees
Difficult to
Microsoft Business
Solutions Great Plains
Dynamics