Enterprise Resource Planning
ERP Systems
Chapter 12 pages 157-165
Business Plug-In B10 pages 364-372
I
from End to End
• SCM systems focus specifically on
• CRM systems focus specifically on
The organization before ERP (
Isolated Information:
systems)
their own systems
Update issues
Redundant/
Inaccurate and different
Different
in the different databases
Can’t access information maintained by another department
Can’t
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 don’t 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
company’s 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
• E
Enterprise Resource Planning
(ERP)
ERP Benefits
1.
2.
Having integrated systems helps
that many businesses had previously
started to use (also didn’t 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.
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)
Difficult to
Employees
• Costly in terms of
One vendor risks: too costly to
Company essentially held hostage.
.
Microsoft Business
Solutions Great Plains
Dynamics