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Enterprise Resource Planning (ERP)

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Enterprise Resource Planning (ERP)
ERP – integrates all departments and functions throughout an organization into a single IT system so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operations

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Enterprise Resource Planning (ERP)

  1. 1. BUSINESS B5<br />Enterprise Resource Planning (ERP)<br />
  2. 2. 2<br />Learning Outcomes<br />Compare core ERP components and extended ERP components<br />Describe the three primary components found in core ERP<br />Describe the four primary components found in extended ERP systems<br />Explain the benefits and risks associated with ERP systems<br />Assess the future of ERP systems<br />
  3. 3. 3<br />Introduction<br />ERP– integrates all departments and functions throughout an organization into a single IT system so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operations<br />Core ERP components– traditional components included in most ERP systems and they primarily focus on internal operations<br />Extended ERP components– extra components that meet the organizational needs not covered by the core components and primarily focus on external operations<br />
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  5. 5. 5<br />Accounting and Finance Components<br />manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management<br />
  6. 6. 6<br />Production and Materials Management Components<br />handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control<br />
  7. 7. 7<br />Human Resource Components<br />track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities<br />
  8. 8. 8<br />Extended ERP Components<br />Business intelligence - information that people use to support their decision-making efforts<br />CRM - involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability<br />SCM - involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability<br />E-business - means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners<br />
  9. 9. 9<br />E-Business Components<br />E-logistics– manages the transportation and storage of goods<br />E-procurement– the business-to-business (B2B) purchase and sale of supplies and services over the Internet<br />
  10. 10. ERP Benefits<br />
  11. 11. ERP Risks<br />
  12. 12. 12<br />The Future of ERP<br />Lines between SCM, CRM, and ERP will continue to blur<br />Internet – continue to help organizations integrate data and process across functional departments<br />Interface – customizable employee browsers <br />Wireless technology – support a mobile workforce<br />
  13. 13. 13<br />Closing Case One:PepsiAmericas’ Enterprises<br />PepsiAmericas generates $2.97 billion in revenues yearly<br />The company implemented PeopleSoft’s ERP solution to provide complete integration between PepsiAmericas’ front-office and back-office systems<br />PepsiAmericas also implemented PeopleSoft’s supply chain management component to automate its inventory<br />
  14. 14. 14<br />Closing Case Two Questions<br />How have core ERP components helped PepsiAmericas improve its business?<br />How have extended ERP components helped PepsiAmericas improve its business?<br />Explain how future ERP systems will help PepsiAmericas increase revenues<br />Assess the impact on PepsiAmericas’ business if it failed to implement the CRM component of PeopleSoft’s ERP system<br />Review the different PeopleSoft components in Figure B5.5. Which component would you recommend PepsiAmericas implement if it decides to purchase an additional PeopleSoft component?<br />
  15. 15. 15<br />Closing Case Two: Demanding Chocolate<br />Ghirardelli is the longest continuously operating chocolate manufacturer in the Untied States<br />Ghirardelli improved inventory management and profitability through the implementation of an ERP system<br />
  16. 16. 16<br />Closing Case Two Questions<br />Which additional core ERP components would you recommend Ghirardelli implement?<br />Which additional extended ERP components would you recommend Ghirardelli implement?<br />How can implementing an Advanced Planning ERP component help Ghirardelli’s business?<br />

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