Enterprise Resource Planning

(ERP)

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

An Organization with ERP

A process-oriented organization
Data at the core of the enterprise
ERP as a major part of the
enterprise architecture

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

The Order Fulfillment Process

Process

Functions

Proposal

Sales

Commit- Configment
uration

Manufacturing

Credit
Checking

Delivery

Finance

Billing

Collections

Logistics

Cross-functional Processes

MARKETING

R&D

PRODUCTION

Product development
needs analysis component
design
research
product test
market test
product
release

process
design
equipment
design
production
start

new product
prototype

competitor analysis
market research

i.e., Product Development

Function Versus Process-based Organization

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Order Fulfillment

Customer Satisfaction

Product Development

ERP Vendors
Over 100 vendors globally
5 major vendors
Lawson
JDEdwards
Oracle
PeopleSoft
SAP

Healthcare
Internet
Database
HRM originally
German, pioneer of ERP