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Enterprise Resource Planning

ERP Systems
Chapter 12 pages 157-165
Business Plug-In B10 pages 364-372

from End to End

SCM systems focus specifically on


CRM systems focus specifically on

The organization before ERP (


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

systems)

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

S
a
We dont need this ERP stuff. We already have enterprise wide l
software that we are all using. It is called a SPREADSHEET.
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)

ERP

ERP Benefits
1.

2.

Having integrated systems helps that many businesses had


previously started to use (also didnt have to fix those old legacy
systems)
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.
6.

ERP addresses the


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)

Difficult to

Employees
Costly in terms of
One vendor risks: too costly to
held hostage.

. Company essentially

Microsoft Business
Solutions Great Plains
Dynamics