ERP software coordinates information across all areas of a business using a shared database and management tools. It helps manage company-wide processes. Key functional areas include marketing/sales, supply chain management, accounting/finance, and human resources. For a company to provide customer satisfaction, its functional areas must be integrated. ERP software provides this integration by allowing different areas to share data from a single common database.

1. Ch.1
Enterprise Resource planning software: A core
software used by companies to coordinate
information in every area of the business. Which help
to manage company wide business processes using a
common database and shared management reported
tools.
Functional areas:
• Business activities are divided into different
categories known as functional areas.
• Most companies have four main functional areas
of operations.
Business functions of different functional areas:
Marketing and sales:
• Advertising and Marketing of product
• Taking sales order
• Customer support
• Customer relationship management

2. • Sales forecasting
Supply Chain management:
• Purchasing goods and raw materials
• Receiving goods and raw materials
• Transportation and logistics
• Scheduling production runs
• Manufacturing goods
• Plant maintenance
Accounting and finance:
• Financial accounting
• Cost allocation and control
• Planning and budgeting
• Cash-flow management
Human resources:
• Recruiting and hiring
• Training
• Payroll

3. • Benefits
• Government compliance
Business process:
• Collection of activities that takes one or more
kinds of input and creates an output that is
value to the customer.
• Customer of a business process can be
traditional external customer the person who
buys the finish product or it may be internal
customer such as a colleague in another
department.
• Business must always consider the customer’s
viewpoint in any transaction. A successful
customer interaction is one in which the
customer is not required to interact with each
business function involved in the process.
Successful business managers view their

4. business operations from the perspective of a
satisfied customer.
• For company to provide customer satisfaction,
it must make sure that its functional areas of
operation are integrated.
• Information systems can be designed so that
functional areas share data. These systems are
called integrated information systems.
• A functional area is served by an information
system. Information system capture, process
and store data to provide information needed
for decision making.
• Today business managers try to think in terms
of business processes that integrate the
functional areas thus promoting efficiency and
competitiveness. An important aspect of this is
the need to share information between
functions and functional areas. ERP software

5. provide this capability by using single
common database.