An Enterprise Resource Planning (ERP) system is a suite of integrated applications that a company can use to collect, store, manage, and interpret data from many business activities. ERP provides an integrated and continuously updated view of core business processes using common databases maintaine...
1) Importance of ERP:
1. Facilitates the flow of information between all business functions.
2. Improve efficiency, reduce costs, and make data driven decisions.
3. links, monitors & controls primary enterprise resources.
2) What is ERP?
1. Software tools.
2. Manages business systems.
3. Allows automation and integration of business processes.
4. Enables data and information sharing.
5. Enterprise-wide system.
6. Introduces “best practices”.
3) Overall Business Benefits of ERP:
1. Information:
➔ Maximizes information throughput
➔ Provides timely information
➔ Integrates information throughout supply chain
2. Minimizes response time.
3. Better decision-making.
4. Reduces costs.
5. Cuts inventor.
6. Improves operating performance.
4) Department Benefits of ERP:
1. Sales:
a. Increase efficiency.
b. Reduce lead time.
c. Improve responsiveness.
2. Manufacturing:
a. Concurrent engineering.
b. Faster design & production.
3. Data Service:
a. Accurate customer service history.
b. Accurate warranty information.
4. Accounts payable:
a. Suppliers pays accurately.
, 5) Systems Benefits of ERP:
1. Eliminate legacy systems:
a. Reduce incompatible data.
b. Can cause fragmentations.
2. Allow sharing & monitoring of information.
3. Foundation of eBusiness:
a. Back-office functions.
4. Stadardization.
5. Helps obtain competitive advantages.
6. Improve interactions with customers & suppliers.
6) Integrated System Approach:
1. Common set of applications.
2. Usually requires re-engineering business process. (better alignment)
3. Limited customization. (Easier upgrades)
4. Overcomes inefficiencies.
5. Integrated data supports multiple functions.
*Problem of functional silos >> Business Process Re-Engineering BPR.
*The cross-functional business process involve: People & Resources from various
functions, Sharing information at any level.
7) Matrix Structure
8) Information Systems Architectures:
1. Centralized: a single mainframe or server that manages all of an organization's
data processing needs.
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