1 enterprise software. 2 enterprise systems (es) enterprise systems (es) are large-scale...

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ENTERPRISE ENTERPRISE SOFTWARESOFTWARE

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ENTERPRISE SYSTEMENTERPRISE SYSTEMSS (ES) (ES)Enterprise systems Enterprise systems ((ESES)) are large-scale organizational are large-scale organizational systems which composed of people, processes and systems which composed of people, processes and information technology built around packaged enterprise information technology built around packaged enterprise system softwaresystem software:: is a set of packaged application software modules, with an is a set of packaged application software modules, with an

integrated architecture, that can be used by organizations as integrated architecture, that can be used by organizations as their primary engine for integrating data, processes, and their primary engine for integrating data, processes, and information technology, in real time, across internal and information technology, in real time, across internal and external value chains;external value chains;

impound deep knowledge of business practices that vendors impound deep knowledge of business practices that vendors have accumulated from implementations in a wide range of have accumulated from implementations in a wide range of client organizations, that can exert considerable influence on client organizations, that can exert considerable influence on the design of processes within new client organizations;the design of processes within new client organizations;

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ENTERPRISE SYSTEMENTERPRISE SYSTEMSS (ES) (ES) is a generic “semi-finished” product with tables and parameters is a generic “semi-finished” product with tables and parameters

that client organizations and their implementation partners must that client organizations and their implementation partners must configure, customize, and integrate with other computer-based configure, customize, and integrate with other computer-based information systems to meet their business needs.information systems to meet their business needs.

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ENTERPRISE SYSTEM ENTERPRISE SYSTEM SOFTWARE (ESS)SOFTWARE (ESS)

Enterprise system software (ESS) Enterprise system software (ESS) includes:includes: Enterprise Resource Planning (ERP)Enterprise Resource Planning (ERP) Customer Relationship Management (CRM)Customer Relationship Management (CRM) Supply Chain Management (SCM)Supply Chain Management (SCM) Product Life Cycle Management (PLM)Product Life Cycle Management (PLM) Enterprise Application Integration (EAI)Enterprise Application Integration (EAI) Data WarehousingData Warehousing Decision SupportDecision Support Intelligent Presentation LayerIntelligent Presentation Layer eProcurement/eMarketplace/electronic exchange softwareeProcurement/eMarketplace/electronic exchange software

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ENTERPRISE RESOURCE ENTERPRISE RESOURCE PLANNING SYSTEMS (ERP)PLANNING SYSTEMS (ERP)

““ERP comprises of a commercial software package that ERP comprises of a commercial software package that promises the seamless integration of all the information flowing promises the seamless integration of all the information flowing through the company – financial, accounting, human resources, through the company – financial, accounting, human resources, supply chain and customer information” (Davenport, 1998).supply chain and customer information” (Davenport, 1998).

““One database, one application and a unified interface across One database, one application and a unified interface across the entire enterprise” (Tadjer, 1998).the entire enterprise” (Tadjer, 1998).

““ERP systems are configurable information systems packages ERP systems are configurable information systems packages that integrate information and information-based processes that integrate information and information-based processes within and across functional areas in an organization” (Kumar & within and across functional areas in an organization” (Kumar & Van Hillsgersberg, 2000).Van Hillsgersberg, 2000).

““ERP systems are computer-based systems designed to ERP systems are computer-based systems designed to process an organization's transactions and facilitate integrated process an organization's transactions and facilitate integrated and real-time planning, production, and customer response” and real-time planning, production, and customer response” (O'Leary, 2001).(O'Leary, 2001).

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““A method for the effective planning and controlling of all the A method for the effective planning and controlling of all the resources needed to take, make, ship and account for resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service customer orders in a manufacturing, distribution or service company“ (American Production and Inventory Control Society, company“ (American Production and Inventory Control Society, 2001). 2001).

““Core software used by companies to coordinate information in Core software used by companies to coordinate information in every area of the business such as planning, manufacturing, every area of the business such as planning, manufacturing, sales, marketing, distribution, accounting, financial, human sales, marketing, distribution, accounting, financial, human resource management, project management, inventory resource management, project management, inventory management, service and maintenance, transportation andmanagement, service and maintenance, transportation ande-business” (Monk, 2009).e-business” (Monk, 2009).

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SUMMARYSUMMARY::

1.1. ERP programs help to manage company-wide business ERP programs help to manage company-wide business processes, using a common database and shared processes, using a common database and shared management reporting tools.management reporting tools.

2.2. ERP software supports the efficient operation of business ERP software supports the efficient operation of business processes by integrating throughout a business tasks related processes by integrating throughout a business tasks related to sales, marketing, manufacturing, logistics, accounting, and to sales, marketing, manufacturing, logistics, accounting, and staffing.staffing.

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WHAT IS ITWHAT IS ITA “BUSINESS PROCESS”?A “BUSINESS PROCESS”?

A A business process business process is a collection of activities that takes one or is a collection of activities that takes one or more kinds of inputs (raw material, information, etc.) and creates more kinds of inputs (raw material, information, etc.) and creates an output, such as a goods, report or forecast, that is of value to an output, such as a goods, report or forecast, that is of value to the customer.the customer.

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BUSINESS PROCESSBUSINESS PROCESSOF BEER BREWINGOF BEER BREWING

http://www.worthybrewing.com/http://www.worthybrewing.com/

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THE SAMPLE OF THE FUNCTIONAL THE SAMPLE OF THE FUNCTIONAL ORGANIZATION CHARTORGANIZATION CHART

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MAIN FUNCTIONAL AREAS OF MAIN FUNCTIONAL AREAS OF COMPANY’S OPERATIONCOMPANY’S OPERATION

Marketing and Sales (M/S)Marketing and Sales (M/S) Marketing of a productMarketing of a product Taking sales ordersTaking sales orders Customer supportCustomer support Customer relationship managementCustomer relationship management Sales forecastingSales forecasting AdvertisingAdvertising

Supply Chain Management (SCM)Supply Chain Management (SCM) Accounting and Finance (A/F)Accounting and Finance (A/F) Human Resources (HR)Human Resources (HR)

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Marketing and Sales (M/S)Marketing and Sales (M/S) Supply Chain Management (SCM)Supply Chain Management (SCM)

Purchasing goods and raw materialsPurchasing goods and raw materials Receiving goods and raw materialsReceiving goods and raw materials Transportation and logisticsTransportation and logistics Scheduling production runsScheduling production runs Manufacturing goodsManufacturing goods Plant maintenancePlant maintenance

Accounting and Finance (A/F)Accounting and Finance (A/F) Human Resources (HR)Human Resources (HR)

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Marketing and Sales (M/S)Marketing and Sales (M/S) Supply Chain Management (SCM)Supply Chain Management (SCM) Accounting and Finance (A/F)Accounting and Finance (A/F)

Financial accounting of payments from customers Financial accounting of payments from customers and to suppliersand to suppliers

Cost allocation and controlCost allocation and control Planning and budgetingPlanning and budgeting Cash-flow managementCash-flow management

Human Resources (HR)Human Resources (HR)

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Marketing and Sales (M/S)Marketing and Sales (M/S) Supply Chain Management (SCM)Supply Chain Management (SCM) Accounting and Finance (A/F)Accounting and Finance (A/F) Human Resources (HR)Human Resources (HR)

Recruiting and hiringRecruiting and hiring TrainingTraining PayrollPayroll BenefitsBenefits

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FUNCTIONAL AREA INFORMATION FUNCTIONAL AREA INFORMATION SYSTEMSSYSTEMS: MARKETING & SALES: MARKETING & SALES

Ellen F. Monk and Bret J. WagnerEllen F. Monk and Bret J. Wagner. (. (20092009). ). Concepts in Enterprise Resource Planning. –Concepts in Enterprise Resource Planning. –Boston: Course Technology Cengage LearningBoston: Course Technology Cengage Learning..

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FUNCTIONAL AREA INFORMATION FUNCTIONAL AREA INFORMATION SYSTEMSSYSTEMS: SUPPLY CHAIN MANAGEMENT: SUPPLY CHAIN MANAGEMENT


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FUNCTIONAL AREA INFORMATION FUNCTIONAL AREA INFORMATION SYSTEMSSYSTEMS: ACCOUNTING & FINANCE: ACCOUNTING & FINANCE


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FUNCTIONAL AREA INFORMATION FUNCTIONAL AREA INFORMATION SYSTEMSSYSTEMS: HUMAN RESOURCES: HUMAN RESOURCES


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INFORMATION AND MATERIAL FLOWSINFORMATION AND MATERIAL FLOWSIN A FUNCTIONAL BUSINESS MODELIN A FUNCTIONAL BUSINESS MODEL

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DATA FLOW WITHIN AN INTEGRATED DATA FLOW WITHIN AN INTEGRATED INFORMATION SYSTEMINFORMATION SYSTEM


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TYPICAL TECHNOLOGICAL TYPICAL TECHNOLOGICAL CHARACTERISTICS OF AN ERPCHARACTERISTICS OF AN ERP

ERP systems are large integrated computer software packages ERP systems are large integrated computer software packages consisting of components, each with a given set of functions.consisting of components, each with a given set of functions.All available functions operate on a shared set of data, thereby All available functions operate on a shared set of data, thereby achieving integration.achieving integration.The idea of these systems is to support every single aspect of The idea of these systems is to support every single aspect of organizational storage, processing, retrieval, and distribution of organizational storage, processing, retrieval, and distribution of data.data.

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http://blog.weberp4.com/http://blog.weberp4.com/

TYPICAL ERP SYSTEM MODULESTYPICAL ERP SYSTEM MODULES

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INFORMATION AND MATERIAL FLOWSINFORMATION AND MATERIAL FLOWSIN A PROCESS BUSINESS MODELIN A PROCESS BUSINESS MODEL


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ADVANTAGES OF ERP SYSTEMSADVANTAGES OF ERP SYSTEMS

What benefitWhat benefit HowHow

Reliable information accessReliable information access Common DBMS, consistent and Common DBMS, consistent and accurate data, improved reportsaccurate data, improved reports

Avoid data and operations Avoid data and operations redundancyredundancy

Modules access same data from Modules access same data from the central database, avoids the central database, avoids multiple data input and update multiple data input and update operationsoperations

Delivery and cycle time Delivery and cycle time reduction delaysreduction delays

Minimizes retrieving and Minimizes retrieving and reportingreporting

Cost reductionCost reductionTime savings, improved control Time savings, improved control by enterprise-wide analysis of by enterprise-wide analysis of organizational decisionsorganizational decisions

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ADVANTAGES OFADVANTAGES OFERP SYSTEMSERP SYSTEMS

What benefitWhat benefit HowHow

Easy adaptabilityEasy adaptability Changes in business processes Changes in business processes easy to adapt and restructureeasy to adapt and restructure

Improved scalabilityImproved scalability Structured and modular design Structured and modular design with “add ons”with “add ons”

Improved maintenanceImproved maintenanceVendor-supported long-term Vendor-supported long-term contract as part of the system contract as part of the system procurementprocurement

Global outreachGlobal outreach Extended modules such as CRMExtended modules such as CRM

E-Commerce E-Commerce EE-business Internet commerce, -business Internet commerce, collaborative culturecollaborative culture

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DISADVANTAGES OFDISADVANTAGES OFERP SYSTEMSERP SYSTEMS

DisadvantageDisadvantage How to overcomeHow to overcome

Time-consumingTime-consumingMinimize sensitive issues, Minimize sensitive issues, internal politics and raise general internal politics and raise general consensusconsensus

ExpensiveExpensive

Cost may vary from thousands of Cost may vary from thousands of dollars to millionsdollars to millionsBusiness process reengineering Business process reengineering cost may be extremely highcost may be extremely high

Conformity of the modulesConformity of the modules

The architecture and The architecture and components of the selected components of the selected system should conform to the system should conform to the business processes, culture and business processes, culture and strategic goals of the strategic goals of the organizationorganization

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Vendor dependenceVendor dependence

Single vendor vs. multi-vendor Single vendor vs. multi-vendor consideration, options for “best of consideration, options for “best of breeds”breeds”,, long-term committed long-term committed supportsupport

Features and complexityFeatures and complexity

ERP system may have too many ERP system may have too many features and modules so the user features and modules so the user needs to consider carefully and needs to consider carefully and implement the needful onlyimplement the needful only

Scalability and global outreachScalability and global outreach

Look for vendor investment in Look for vendor investment in R&D, long term commitment to R&D, long term commitment to product and services, consider product and services, consider Internet-enabled systemsInternet-enabled systems

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Extended ERP capabilityExtended ERP capabilityConsider middle-ware “add-on” Consider middle-ware “add-on” facilities and extended modules facilities and extended modules such as CRM and SCM.such as CRM and SCM.

1 enterprise software. 2 enterprise systems (es) enterprise systems (es) are large-scale...

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