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Chapter 12 pages 157-165 Business Plug-In B10 pages 364-372. Enterprise Resource Planning ERP Systems. I from End to End. The organization before ERP ( systems) Isolated Information: their own systems Update issues Redundant/ Inaccurate and different

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Enterprise Resource Planning ERP Systems

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enterprise resource planning erp systems

Chapter 12 pages 157-165

Business Plug-In B10 pages 364-372

Enterprise Resource PlanningERP Systems

I from End to End


The organization before ERP ( systems)

  • Isolated Information: 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
  • SCM systems focus specifically on
  • CRM systems focus specifically on
erp bringing the organization together
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.


enterprise resource planning
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
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 components8
  • 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
  • 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
Enterprise Resource Planning (ERP)
  • At the heart of all ERP systems , when a user enters or updates information , it is
erp benefits
ERP Benefits
  • 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
  • Everyone working with the same information and removes misinformation
  • Standardize and speed up manufacturing processes, as well as reduce inventory
  • 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
ERP Risks (Costs)

Difficult to


  • Costly in terms of One vendor risks: too costly to . Company essentially held hostage.