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Enterprise Resource Planning

(ERP)



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ERP
A collection of software systems that help
to manage business processes for an
entire organization

Designed to integrate all information
processing support for an entire
organization


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A process-oriented organization
Data at the core of the enterprise
ERP as a major part of the
enterprise architecture
An Organization with ERP
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Business Process
Work activities across time and
place, with a beginning, an end, and
clearly identified inputs and outputs
(Davenport, 1993)

Has sequence, purpose, interaction
Commit-
ment
Credit
Checking
Delivery
Collec-
tions
Process
Functions
Proposal
Sales Manufacturing
Config-
uration
Billing
Finance Logistics
The Order Fulfillment Process

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Cross-functional Processes
i.e., Product Development

MARKETING

PRODUCTION R & D
Product development
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needs analysis
research
market test
component
design
product test
product
release
process
design
equipment
design
production
start
Function Versus Process-based Organization
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Customer Satisfaction
Product Development
Order Fulfillment
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ERP Vendors
Over 100 vendors globally
5 major vendors
Lawson Healthcare
JDEdwards Internet
Oracle Database
PeopleSoft HRM originally
SAP German, pioneer of ERP