ENTERPRISE
SOFTWARE
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ENTERPRISE SYSTEMS (ES)
Enterprise systems (ES) are large-scale organizational systems
which composed of people, processes and information technology
built around packaged enterprise system software:
 is a set of packaged application software modules, with an
integrated architecture, that can be used by organizations as
their primary engine for integrating data, processes, and
information technology, in real time, across internal and
external value chains;
 impound deep knowledge of business practices that vendors
have accumulated from implementations in a wide range of
client organizations, that can exert considerable influence on
the design of processes within new client organizations;
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ENTERPRISE SYSTEMS (ES)

is a generic “semi-finished” product with tables and parameters
that client organizations and their implementation partners must
configure, customize, and integrate with other computer-based
information systems to meet their business needs.
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ENTERPRISE SYSTEM
SOFTWARE (ESS)
Enterprise system software (ESS) includes:
 Enterprise Resource Planning (ERP)
 Customer Relationship Management (CRM)
 Supply Chain Management (SCM)
 Product Life Cycle Management (PLM)
 Enterprise Application Integration (EAI)
 Data Warehousing
 Decision Support
 Intelligent Presentation Layer
 eProcurement/eMarketplace/electronic exchange software
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ENTERPRISE RESOURCE
PLANNING SYSTEMS (ERP)
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
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“ERP comprises of a commercial software package that
promises the seamless integration of all the information flowing
through the company – financial, accounting, human resources,
supply chain and customer information” (Davenport, 1998).
“One database, one application and a unified interface across
the entire enterprise” (Tadjer, 1998).
“ERP systems are configurable information systems packages
that integrate information and information-based processes
within and across functional areas in an organization” (Kumar &
Van Hillsgersberg, 2000).
“ERP systems are computer-based systems designed to
process an organization's transactions and facilitate integrated
and real-time planning, production, and customer response”5
(O'Leary, 2001).
ENTERPRISE RESOURCE
PLANNING SYSTEMS (ERP)
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
“A method for the effective planning and controlling of all the
resources needed to take, make, ship and account for
customer orders in a manufacturing, distribution or service
company“ (American Production and Inventory Control Society,
2001).
“Core software used by companies to coordinate information in
every area of the business such as planning, manufacturing,
sales, marketing, distribution, accounting, financial, human
resource management, project management, inventory
management, service and maintenance, transportation and
e-business” (Monk, 2009).
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ENTERPRISE RESOURCE
PLANNING SYSTEMS (ERP)
SUMMARY:
1. ERP programs help to manage company-wide business
processes, using a common database and shared
management reporting tools.
2. ERP software supports the efficient operation of business
processes by integrating throughout a business tasks related
to sales, marketing, manufacturing, logistics, accounting, and
staffing.
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WHAT IS IT
A “BUSINESS PROCESS”?
A business process is a collection of activities that takes one or
more kinds of inputs (raw material, information, etc.) and creates
an output, such as a goods, report or forecast, that is of value to
the customer.
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BUSINESS PROCESS
OF BEER BREWING
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http://www.worthybrewing.com/
THE SAMPLE OF THE FUNCTIONAL
ORGANIZATION CHART
Top Management
Marketing and
Sales (M/S)
Employee
Employee
Supply Chain
Management (SCM)
Employee
Employee
Accounting and
Finance (A/F)
Human
Resources (HR)
Employee
Employee
Employee
Employee
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MAIN FUNCTIONAL AREAS OF
COMPANY’S OPERATION
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
Marketing and Sales (M/S)
 Marketing of a product
 Taking sales orders
 Customer support
 Customer relationship management
 Sales forecasting
 Advertising
Supply Chain Management (SCM)
Accounting and Finance (A/F)
Human Resources (HR)
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MAIN FUNCTIONAL AREAS OF
COMPANY’S OPERATION




Marketing and Sales (M/S)
Supply Chain Management (SCM)
 Purchasing goods and raw materials
 Receiving goods and raw materials
 Transportation and logistics
 Scheduling production runs
 Manufacturing goods
 Plant maintenance
Accounting and Finance (A/F)
Human Resources (HR)
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MAIN FUNCTIONAL AREAS OF
COMPANY’S OPERATION




Marketing and Sales (M/S)
Supply Chain Management (SCM)
Accounting and Finance (A/F)
 Financial accounting of payments from customers
and to suppliers
 Cost allocation and control
 Planning and budgeting
 Cash-flow management
Human Resources (HR)
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MAIN FUNCTIONAL AREAS OF
COMPANY’S OPERATION




Marketing and Sales (M/S)
Supply Chain Management (SCM)
Accounting and Finance (A/F)
Human Resources (HR)
 Recruiting and hiring
 Training
 Payroll
 Benefits
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FUNCTIONAL AREA INFORMATION
SYSTEMS: MARKETING & SALES
15
Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. –
Boston: Course Technology Cengage Learning.
FUNCTIONAL AREA INFORMATION
SYSTEMS: SUPPLY CHAIN MANAGEMENT
16
Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. –
Boston: Course Technology Cengage Learning.
FUNCTIONAL AREA INFORMATION
SYSTEMS: ACCOUNTING & FINANCE
17
Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. –
Boston: Course Technology Cengage Learning.
FUNCTIONAL AREA INFORMATION
SYSTEMS: HUMAN RESOURCES
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Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. –
Boston: Course Technology Cengage Learning.
INFORMATION AND MATERIAL FLOWS
IN A FUNCTIONAL BUSINESS MODEL
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DATA FLOW WITHIN AN INTEGRATED
INFORMATION SYSTEM
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Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. –
Boston: Course Technology Cengage Learning.
TYPICAL TECHNOLOGICAL
CHARACTERISTICS OF AN ERP
ERP systems are large integrated computer software packages
consisting of components, each with a given set of functions.
All available functions operate on a shared set of data, thereby
achieving integration.
The idea of these systems is to support every single aspect of
organizational storage, processing, retrieval, and distribution of
data.
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TYPICAL ERP SYSTEM MODULES
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http://blog.weberp4.com/
INFORMATION AND MATERIAL FLOWS
IN A PROCESS BUSINESS MODEL
23
Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. –
Boston: Course Technology Cengage Learning.
ADVANTAGES OF ERP SYSTEMS
What benefit
Reliable information access
Avoid data and operations
redundancy
Delivery and cycle time
reduction delays
Cost reduction
How
Common DBMS, consistent and
accurate data, improved reports
Modules access same data from
the central database, avoids
multiple data input and update
operations
Minimizes retrieving and
reporting
Time savings, improved control
by enterprise-wide analysis of
organizational decisions
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ADVANTAGES OF
ERP SYSTEMS
What benefit
Easy adaptability
Improved scalability
Improved maintenance
Global outreach
E-Commerce
How
Changes in business processes
easy to adapt and restructure
Structured and modular design
with “addons”
Vendor-supported long-term
contract as part of the system
procurement
Extended modules such as CRM
E-business Internet commerce,
collaborative culture
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DISADVANTAGES OF
ERP SYSTEMS
Disadvantage
Time-consuming
Expensive
Conformity of the modules
How to overcome
Minimize sensitive issues,
internal politics and raise general
consensus
Cost may vary from thousands of
dollars to millions
Business process reengineering
cost may be extremely high
The architecture and
components of the selected
system should conform to the
business processes, culture and
strategic goals of the
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organization
DISADVANTAGES OF
ERP SYSTEMS
Disadvantage
How to overcome
Single vendor vs. multi-vendor
consideration, options for “best of
Vendor dependence
breeds”, long-term committed
support
ERP system may have too many
features and modules so the user
Features and complexity
needs to consider carefully and
implement the needful only
Look for vendor investment in
R&D, longterm commitment to
Scalability and global outreach
product and services, consider
Internet-enabled systems 27
DISADVANTAGES OF
ERP SYSTEMS
Disadvantage
Extended ERP capability
How to overcome
Consider middle-ware “add-on”
facilities and extended modules
such as CRM and SCM.
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