SlideShare a Scribd company logo
ERP
E Enterprise
R Resource
P Planning
Enterprise
• Any business unit
• A group of people
• Use common resources
• To achieve common goals
Resource
• Money
• Material
• Manpower
• Machinery
Planning
• Acquiring, utilizing and disposing off resources
Business Units /
Departments
Enterprise Resource Planning- ERP
Enterprise resource planning (ERP) is a process used
by companies to manage and integrate the important
parts of their businesses.
What is ERP?
Enterprise resource planning (ERP) systems are the
specific kind of enterprise systems to integrate data
across and be comprehensive in supporting all the major
functions of the organization.
ERP and Related Technologies
HIERARCHY ??
Operational Management Team
Data Type
Entry Level Data
Decision Making
Structured -As per SOP
INFORMATION SYSTEM
Transaction Processing System - TPS
Managerial Team
Data Type
Summarized Data
Decision Making
Semi – Structured
INFORMATION SYSTEM
Management Information System - MIS
Top
Management
Data Type
Graphical, Visual
Charts
Decision Making
Unstructured
INFORMATION SYSTEM
Executive Information System -
EIS
FLOW of
INFORMATION
UPWARD
OUTPUT
INPUT
OUTPUT
INPUT
Transaction processing systems
• Perform and record daily routine transactions necessary to
conduct business
Examples: sales order entry, payroll, shipping, banking
• Allow managers to monitor status of operations
Management information systems
• Serve middle management
• Provide reports on firm’s current performance, based on
data from TPS
• Provide answers to routine questions with predefined
procedure for answering them
• Typically have little analytic capability
Executive information systems (EIS)
• It is a decision support system (DSS) used to assist senior
executives in the decision-making process.
• It provides easy access to important data needed to achieve
strategic goals in an organization.
• An EIS normally features graphical displays on an easy-to-use
interface.
Operational Management Team
INFORMATION SYSTEM
Transaction Processing System - TPS
Managerial Team
INFORMATION SYSTEM
Management Information System - MIS
Top
Management
INFORMATION SYSTEM
Executive Information System - EIS
If we divide them into
different Departments or
Business Unit
Human
Resource
Finance Marketing Sales Supply Chain
FLOW of information is only
upward
Top
Management
Human
Resource
Finance Marketing Sales Supply Chain
No Horizontal
No Downwards
What Does it means??
No Integration among
Business Units
Minimum Communication
Level
Delays in Decision making
Inefficient Operations
High Cost – Expensive to
Operate
Inaccurate Data Provision
Time Consuming
Outdated Practices
Managerial Team
Operational Management Team
Top
Management
Human
Resource
Finance Marketing Sales Supply Chain
HOW to make it BETTER??
Managerial Team
Operational Management Team
Vertical
Horizontal
(FLOW of Information)
Top
Management
Human
Resource
Finance Marketing Sales Supply Chain
Managerial Team
Operational Management Team
WE REQUIRED a Concept
ERP – Enterprise Resourc
Planning
TypicalBusinessProcess:Keyobservation
• A typical enterprise has many Departments/ Business units(BU).
• These Departments/ BU continuously communicate and exchange
data with each other.
• The success of any organization lie’s in effective communication and
data exchange within the Departments/ BU as well as associated
third party such as Vendors, Outsourcers and Costumers.
• Also known as Decentralized System.
ProblemswithDecentralizedSystem
• Numerous information system are developed individually
over the time.
• Integrating the data becomes time and money consuming.
Inconsistences and duplication of data.
• High inventory, material and human resource cost.
Vendor
Sales
Dept.
Accounti
ng
Purchasing
Dept. Warehou
se
Databa
se
Ship
parts
Invoice
Accounting
CentralizedSystem: ERPexample
CentralizedSystem:Keyobservation
• Data is maintained at a central location and is shared with
various Departments.
• Departments have access information/ data of the other
Departments/ BU/
CentralizedSystem:Keyobservation
• Eliminates the duplication and discontinuity in data.
• Provides information across departments in real time.
• Provides control over various business processes.
• Increase Productivity, better inventory management, promotes
quality, reduced material cost, boosts profits.
• Better customers interaction, increased output
• Improves customer service
History of ERP Systems
1960s
• Inventory
Managemen
t and Control
1970s
• Material
requirement
Planning
• (MRP)
1980s
• Manufacturing
requirement
planning
• (MRP II)
1990s
Enterprise
Resource
Planning (ERP)
2000s
Extended ERP
or ERP II
Inventory Management & Control
The activities of inventory management include,
• Identifying inventory requirements.
• Setting targets.
• Monitoring item usages.
• Reconciling the inventory balances.
• Reporting inventory status.
Material Requirements Planning (MRP)(the 1970s)
In the 1970s, MRP is evolved to meet the manufacturing
industries’ requirements. It generates schedules for operations
and raw material purchases.
Scheduling is based on,
• Production requirements for finished goods.
• Current inventory levels etc.
Manufacturing Resource Planning (MRP II)
(1980s)
• In the 1980s, vendors added some more manufacturing
processes to MRP to make the process easier and more
accurate. And this new system is named manufacturing
resource planning (MRP II).
• MRP II utilizes software applications. Applications for
coordinating manufacturing processes. Processes from product
planning, parts purchasing, inventory control to product
distribution.
Enterprise Resource Planning (ERP)
(1990s)
ERP integrate business activities across functional departments.
Departments including,
• Product planning.
• Parts purchasing.
• Inventory control.
• Product distribution, fulfillment, to order tracking.
ERP software systems may include application modules for supporting,
• Marketing.
• Finance.
• Accounting.
• Human resources.
Extended ERP or ERP II
They provide anywhere anytime access to resources of the organization and
their partners; additionally, they integrate with newer external business
modules such as
• supply chain management,
• customer relationship management,
• sales force automation (SFA),
• advanced planning and scheduling (APS), etc.
ERP COMPONENTS
Software
Server
(Hardware)
Company
Processes
Database People
ERP enabled Business Process Reengineering (BPR)
• redesign of business processes
• the process of examining current processes and redesigning those
processes to increase the efficiency and effectiveness of an
organization is called BPR
E-Business and ERP
E-Business and ERP
ERP E-Business
better for sharing structured or transaction data are better for sharing unstructured data and
collaboration
focus was on internal data integration focus was on external integration
(interorganizational)
whereas ERP is adaptive technology* e-Business is a disruptive technology*
ERP focus has been on integrating the functional
silos of an organization into an enterprise
application.
e-Business technology focus has been on linking a
company with its external partners and
stakeholders
On the other hand, ERP technology has been
successful in integrating business processes across
the functional spectrum of the organization
focused on market growth by selling products and
services to new consumers and markets.
ERP and E-Business
• Business strategy alignment
ERP
Internal Process
(Goal: Integration
and efficiency)
E Business
External Process
(Goal: Integration
and effectiveness)
ERP Architecture
• influences the cost,
• maintenance,
• and the use of the system
Logical
Architecture Physical
Architecture
Logical Architecture Physical Architecture
supporting the requirements of
the end users
focuses on the efficiency (cost,
response time, etc.) of the
system.
Logical
Architecture
Physical
Architecture
Benefits of ERP
Efficiency
Revenue
Productivity
• increase customer access to products and services,
• reduce operating costs,
• respond more rapidly to a changing marketplace,
• Improved access to data for operational decision making
• Upgrade of technology infrastructure
Another goal of ERP system is to integrate departments and functions
across an organization onto a single infrastructure that serves the
needs of each department
Assignment No. 1
Discuss the role of ERP in organizations. How can the
use of ERP systems remove information or functional
silos in organizations?
• Assignment should be less than 300 words
• Due Date: 22 March, 2022
• Submit your assignment in hard copy (No color prints, No files)

More Related Content

Similar to ERP Lec 1.pptx

SAPHUMAN RESOURCE MNGT PRESENTATION.pptx
SAPHUMAN RESOURCE MNGT PRESENTATION.pptxSAPHUMAN RESOURCE MNGT PRESENTATION.pptx
SAPHUMAN RESOURCE MNGT PRESENTATION.pptx
PritiSingh570501
 
What is an erp system?
What is an erp system?What is an erp system?
What is an erp system?
Usman Tariq
 
Erp
ErpErp
Introduction to ERP.PPT
Introduction to ERP.PPTIntroduction to ERP.PPT
Introduction to ERP.PPT
Aun Shamsi
 
Erp Enterprise Resource Planning
Erp   Enterprise Resource PlanningErp   Enterprise Resource Planning
Erp Enterprise Resource Planning
VIshal Gujarathi
 
Inroduction to ERP system core functions and challenages.pptx
Inroduction to ERP system core functions and challenages.pptxInroduction to ERP system core functions and challenages.pptx
Inroduction to ERP system core functions and challenages.pptx
nagarajan740445
 
Lesson 1 - Introduction to Enterprise Systems for Management.pdf
Lesson 1 - Introduction to Enterprise Systems for Management.pdfLesson 1 - Introduction to Enterprise Systems for Management.pdf
Lesson 1 - Introduction to Enterprise Systems for Management.pdf
calf_ville86
 
Chapter 1 erp
Chapter 1 erpChapter 1 erp
Chapter 1 erp
snehalkulkarni74
 
Sap 2
Sap 2Sap 2
Enterprise Resource Planning- BEST PPT
Enterprise Resource Planning- BEST PPTEnterprise Resource Planning- BEST PPT
Enterprise Resource Planning- BEST PPT
Siddharth Modi
 
Enterprise resource planning
Enterprise resource planningEnterprise resource planning
Enterprise resource planning
AakashTiwari43
 
dheeraj
dheerajdheeraj
ERP.pptx
ERP.pptxERP.pptx
ERP.pptx
BrainMasters1
 
ERP
ERPERP
IS Unit 3 in bca sem 5 sttudentt in computter
IS Unit 3 in bca sem 5 sttudentt in computterIS Unit 3 in bca sem 5 sttudentt in computter
IS Unit 3 in bca sem 5 sttudentt in computter
dharmikmangukiya2
 
ERP unit 1.ppt
ERP unit 1.pptERP unit 1.ppt
ERP unit 1.ppt
RAJESH S
 
Erp
ErpErp

Similar to ERP Lec 1.pptx (20)

SAPHUMAN RESOURCE MNGT PRESENTATION.pptx
SAPHUMAN RESOURCE MNGT PRESENTATION.pptxSAPHUMAN RESOURCE MNGT PRESENTATION.pptx
SAPHUMAN RESOURCE MNGT PRESENTATION.pptx
 
What is an erp system?
What is an erp system?What is an erp system?
What is an erp system?
 
Erp
ErpErp
Erp
 
erp.pptx
erp.pptxerp.pptx
erp.pptx
 
Introduction to ERP.PPT
Introduction to ERP.PPTIntroduction to ERP.PPT
Introduction to ERP.PPT
 
Erp Enterprise Resource Planning
Erp   Enterprise Resource PlanningErp   Enterprise Resource Planning
Erp Enterprise Resource Planning
 
Inroduction to ERP system core functions and challenages.pptx
Inroduction to ERP system core functions and challenages.pptxInroduction to ERP system core functions and challenages.pptx
Inroduction to ERP system core functions and challenages.pptx
 
Lesson 1 - Introduction to Enterprise Systems for Management.pdf
Lesson 1 - Introduction to Enterprise Systems for Management.pdfLesson 1 - Introduction to Enterprise Systems for Management.pdf
Lesson 1 - Introduction to Enterprise Systems for Management.pdf
 
Chapter 1 erp
Chapter 1 erpChapter 1 erp
Chapter 1 erp
 
Sap 2
Sap 2Sap 2
Sap 2
 
Enterprise Resource Planning- BEST PPT
Enterprise Resource Planning- BEST PPTEnterprise Resource Planning- BEST PPT
Enterprise Resource Planning- BEST PPT
 
Enterprise resource planning
Enterprise resource planningEnterprise resource planning
Enterprise resource planning
 
Chapter8
Chapter8Chapter8
Chapter8
 
dheeraj
dheerajdheeraj
dheeraj
 
ERP.pptx
ERP.pptxERP.pptx
ERP.pptx
 
ERP
ERPERP
ERP
 
IS Unit 3 in bca sem 5 sttudentt in computter
IS Unit 3 in bca sem 5 sttudentt in computterIS Unit 3 in bca sem 5 sttudentt in computter
IS Unit 3 in bca sem 5 sttudentt in computter
 
ERP unit 1.ppt
ERP unit 1.pptERP unit 1.ppt
ERP unit 1.ppt
 
Erp ppt
Erp pptErp ppt
Erp ppt
 
Erp
ErpErp
Erp
 

Recently uploaded

The Future of Platform Engineering
The Future of Platform EngineeringThe Future of Platform Engineering
The Future of Platform Engineering
Jemma Hussein Allen
 
Free Complete Python - A step towards Data Science
Free Complete Python - A step towards Data ScienceFree Complete Python - A step towards Data Science
Free Complete Python - A step towards Data Science
RinaMondal9
 
SAP Sapphire 2024 - ASUG301 building better apps with SAP Fiori.pdf
SAP Sapphire 2024 - ASUG301 building better apps with SAP Fiori.pdfSAP Sapphire 2024 - ASUG301 building better apps with SAP Fiori.pdf
SAP Sapphire 2024 - ASUG301 building better apps with SAP Fiori.pdf
Peter Spielvogel
 
The Metaverse and AI: how can decision-makers harness the Metaverse for their...
The Metaverse and AI: how can decision-makers harness the Metaverse for their...The Metaverse and AI: how can decision-makers harness the Metaverse for their...
The Metaverse and AI: how can decision-makers harness the Metaverse for their...
Jen Stirrup
 
PHP Frameworks: I want to break free (IPC Berlin 2024)
PHP Frameworks: I want to break free (IPC Berlin 2024)PHP Frameworks: I want to break free (IPC Berlin 2024)
PHP Frameworks: I want to break free (IPC Berlin 2024)
Ralf Eggert
 
Assure Contact Center Experiences for Your Customers With ThousandEyes
Assure Contact Center Experiences for Your Customers With ThousandEyesAssure Contact Center Experiences for Your Customers With ThousandEyes
Assure Contact Center Experiences for Your Customers With ThousandEyes
ThousandEyes
 
Secstrike : Reverse Engineering & Pwnable tools for CTF.pptx
Secstrike : Reverse Engineering & Pwnable tools for CTF.pptxSecstrike : Reverse Engineering & Pwnable tools for CTF.pptx
Secstrike : Reverse Engineering & Pwnable tools for CTF.pptx
nkrafacyberclub
 
zkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex Proofs
zkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex ProofszkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex Proofs
zkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex Proofs
Alex Pruden
 
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
DanBrown980551
 
UiPath Test Automation using UiPath Test Suite series, part 4
UiPath Test Automation using UiPath Test Suite series, part 4UiPath Test Automation using UiPath Test Suite series, part 4
UiPath Test Automation using UiPath Test Suite series, part 4
DianaGray10
 
Elizabeth Buie - Older adults: Are we really designing for our future selves?
Elizabeth Buie - Older adults: Are we really designing for our future selves?Elizabeth Buie - Older adults: Are we really designing for our future selves?
Elizabeth Buie - Older adults: Are we really designing for our future selves?
Nexer Digital
 
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
BookNet Canada
 
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdfFIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance
 
The Art of the Pitch: WordPress Relationships and Sales
The Art of the Pitch: WordPress Relationships and SalesThe Art of the Pitch: WordPress Relationships and Sales
The Art of the Pitch: WordPress Relationships and Sales
Laura Byrne
 
UiPath Community Day Dubai: AI at Work..
UiPath Community Day Dubai: AI at Work..UiPath Community Day Dubai: AI at Work..
UiPath Community Day Dubai: AI at Work..
UiPathCommunity
 
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdfFIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance
 
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...
James Anderson
 
Climate Impact of Software Testing at Nordic Testing Days
Climate Impact of Software Testing at Nordic Testing DaysClimate Impact of Software Testing at Nordic Testing Days
Climate Impact of Software Testing at Nordic Testing Days
Kari Kakkonen
 
Epistemic Interaction - tuning interfaces to provide information for AI support
Epistemic Interaction - tuning interfaces to provide information for AI supportEpistemic Interaction - tuning interfaces to provide information for AI support
Epistemic Interaction - tuning interfaces to provide information for AI support
Alan Dix
 
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdfFIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance
 

Recently uploaded (20)

The Future of Platform Engineering
The Future of Platform EngineeringThe Future of Platform Engineering
The Future of Platform Engineering
 
Free Complete Python - A step towards Data Science
Free Complete Python - A step towards Data ScienceFree Complete Python - A step towards Data Science
Free Complete Python - A step towards Data Science
 
SAP Sapphire 2024 - ASUG301 building better apps with SAP Fiori.pdf
SAP Sapphire 2024 - ASUG301 building better apps with SAP Fiori.pdfSAP Sapphire 2024 - ASUG301 building better apps with SAP Fiori.pdf
SAP Sapphire 2024 - ASUG301 building better apps with SAP Fiori.pdf
 
The Metaverse and AI: how can decision-makers harness the Metaverse for their...
The Metaverse and AI: how can decision-makers harness the Metaverse for their...The Metaverse and AI: how can decision-makers harness the Metaverse for their...
The Metaverse and AI: how can decision-makers harness the Metaverse for their...
 
PHP Frameworks: I want to break free (IPC Berlin 2024)
PHP Frameworks: I want to break free (IPC Berlin 2024)PHP Frameworks: I want to break free (IPC Berlin 2024)
PHP Frameworks: I want to break free (IPC Berlin 2024)
 
Assure Contact Center Experiences for Your Customers With ThousandEyes
Assure Contact Center Experiences for Your Customers With ThousandEyesAssure Contact Center Experiences for Your Customers With ThousandEyes
Assure Contact Center Experiences for Your Customers With ThousandEyes
 
Secstrike : Reverse Engineering & Pwnable tools for CTF.pptx
Secstrike : Reverse Engineering & Pwnable tools for CTF.pptxSecstrike : Reverse Engineering & Pwnable tools for CTF.pptx
Secstrike : Reverse Engineering & Pwnable tools for CTF.pptx
 
zkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex Proofs
zkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex ProofszkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex Proofs
zkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex Proofs
 
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...
 
UiPath Test Automation using UiPath Test Suite series, part 4
UiPath Test Automation using UiPath Test Suite series, part 4UiPath Test Automation using UiPath Test Suite series, part 4
UiPath Test Automation using UiPath Test Suite series, part 4
 
Elizabeth Buie - Older adults: Are we really designing for our future selves?
Elizabeth Buie - Older adults: Are we really designing for our future selves?Elizabeth Buie - Older adults: Are we really designing for our future selves?
Elizabeth Buie - Older adults: Are we really designing for our future selves?
 
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
 
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdfFIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
 
The Art of the Pitch: WordPress Relationships and Sales
The Art of the Pitch: WordPress Relationships and SalesThe Art of the Pitch: WordPress Relationships and Sales
The Art of the Pitch: WordPress Relationships and Sales
 
UiPath Community Day Dubai: AI at Work..
UiPath Community Day Dubai: AI at Work..UiPath Community Day Dubai: AI at Work..
UiPath Community Day Dubai: AI at Work..
 
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdfFIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
 
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...
 
Climate Impact of Software Testing at Nordic Testing Days
Climate Impact of Software Testing at Nordic Testing DaysClimate Impact of Software Testing at Nordic Testing Days
Climate Impact of Software Testing at Nordic Testing Days
 
Epistemic Interaction - tuning interfaces to provide information for AI support
Epistemic Interaction - tuning interfaces to provide information for AI supportEpistemic Interaction - tuning interfaces to provide information for AI support
Epistemic Interaction - tuning interfaces to provide information for AI support
 
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdfFIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
 

ERP Lec 1.pptx

  • 1. ERP
  • 3. Enterprise • Any business unit • A group of people • Use common resources • To achieve common goals
  • 4. Resource • Money • Material • Manpower • Machinery
  • 5. Planning • Acquiring, utilizing and disposing off resources
  • 7. Enterprise Resource Planning- ERP Enterprise resource planning (ERP) is a process used by companies to manage and integrate the important parts of their businesses.
  • 8. What is ERP? Enterprise resource planning (ERP) systems are the specific kind of enterprise systems to integrate data across and be comprehensive in supporting all the major functions of the organization.
  • 9.
  • 10.
  • 11. ERP and Related Technologies
  • 12. HIERARCHY ?? Operational Management Team Data Type Entry Level Data Decision Making Structured -As per SOP INFORMATION SYSTEM Transaction Processing System - TPS Managerial Team Data Type Summarized Data Decision Making Semi – Structured INFORMATION SYSTEM Management Information System - MIS Top Management Data Type Graphical, Visual Charts Decision Making Unstructured INFORMATION SYSTEM Executive Information System - EIS FLOW of INFORMATION UPWARD OUTPUT INPUT OUTPUT INPUT
  • 13. Transaction processing systems • Perform and record daily routine transactions necessary to conduct business Examples: sales order entry, payroll, shipping, banking • Allow managers to monitor status of operations
  • 14. Management information systems • Serve middle management • Provide reports on firm’s current performance, based on data from TPS • Provide answers to routine questions with predefined procedure for answering them • Typically have little analytic capability
  • 15. Executive information systems (EIS) • It is a decision support system (DSS) used to assist senior executives in the decision-making process. • It provides easy access to important data needed to achieve strategic goals in an organization. • An EIS normally features graphical displays on an easy-to-use interface.
  • 16. Operational Management Team INFORMATION SYSTEM Transaction Processing System - TPS Managerial Team INFORMATION SYSTEM Management Information System - MIS Top Management INFORMATION SYSTEM Executive Information System - EIS If we divide them into different Departments or Business Unit Human Resource Finance Marketing Sales Supply Chain FLOW of information is only upward
  • 17. Top Management Human Resource Finance Marketing Sales Supply Chain No Horizontal No Downwards What Does it means?? No Integration among Business Units Minimum Communication Level Delays in Decision making Inefficient Operations High Cost – Expensive to Operate Inaccurate Data Provision Time Consuming Outdated Practices Managerial Team Operational Management Team
  • 18. Top Management Human Resource Finance Marketing Sales Supply Chain HOW to make it BETTER?? Managerial Team Operational Management Team Vertical Horizontal (FLOW of Information)
  • 19. Top Management Human Resource Finance Marketing Sales Supply Chain Managerial Team Operational Management Team WE REQUIRED a Concept ERP – Enterprise Resourc Planning
  • 20. TypicalBusinessProcess:Keyobservation • A typical enterprise has many Departments/ Business units(BU). • These Departments/ BU continuously communicate and exchange data with each other. • The success of any organization lie’s in effective communication and data exchange within the Departments/ BU as well as associated third party such as Vendors, Outsourcers and Costumers. • Also known as Decentralized System.
  • 21. ProblemswithDecentralizedSystem • Numerous information system are developed individually over the time. • Integrating the data becomes time and money consuming. Inconsistences and duplication of data. • High inventory, material and human resource cost.
  • 23. CentralizedSystem:Keyobservation • Data is maintained at a central location and is shared with various Departments. • Departments have access information/ data of the other Departments/ BU/
  • 24. CentralizedSystem:Keyobservation • Eliminates the duplication and discontinuity in data. • Provides information across departments in real time. • Provides control over various business processes. • Increase Productivity, better inventory management, promotes quality, reduced material cost, boosts profits. • Better customers interaction, increased output • Improves customer service
  • 25. History of ERP Systems 1960s • Inventory Managemen t and Control 1970s • Material requirement Planning • (MRP) 1980s • Manufacturing requirement planning • (MRP II) 1990s Enterprise Resource Planning (ERP) 2000s Extended ERP or ERP II
  • 26. Inventory Management & Control The activities of inventory management include, • Identifying inventory requirements. • Setting targets. • Monitoring item usages. • Reconciling the inventory balances. • Reporting inventory status.
  • 27. Material Requirements Planning (MRP)(the 1970s) In the 1970s, MRP is evolved to meet the manufacturing industries’ requirements. It generates schedules for operations and raw material purchases. Scheduling is based on, • Production requirements for finished goods. • Current inventory levels etc.
  • 28. Manufacturing Resource Planning (MRP II) (1980s) • In the 1980s, vendors added some more manufacturing processes to MRP to make the process easier and more accurate. And this new system is named manufacturing resource planning (MRP II). • MRP II utilizes software applications. Applications for coordinating manufacturing processes. Processes from product planning, parts purchasing, inventory control to product distribution.
  • 29. Enterprise Resource Planning (ERP) (1990s) ERP integrate business activities across functional departments. Departments including, • Product planning. • Parts purchasing. • Inventory control. • Product distribution, fulfillment, to order tracking.
  • 30. ERP software systems may include application modules for supporting, • Marketing. • Finance. • Accounting. • Human resources.
  • 31. Extended ERP or ERP II They provide anywhere anytime access to resources of the organization and their partners; additionally, they integrate with newer external business modules such as • supply chain management, • customer relationship management, • sales force automation (SFA), • advanced planning and scheduling (APS), etc.
  • 32.
  • 34. ERP enabled Business Process Reengineering (BPR) • redesign of business processes • the process of examining current processes and redesigning those processes to increase the efficiency and effectiveness of an organization is called BPR
  • 36. E-Business and ERP ERP E-Business better for sharing structured or transaction data are better for sharing unstructured data and collaboration focus was on internal data integration focus was on external integration (interorganizational) whereas ERP is adaptive technology* e-Business is a disruptive technology* ERP focus has been on integrating the functional silos of an organization into an enterprise application. e-Business technology focus has been on linking a company with its external partners and stakeholders On the other hand, ERP technology has been successful in integrating business processes across the functional spectrum of the organization focused on market growth by selling products and services to new consumers and markets.
  • 37. ERP and E-Business • Business strategy alignment ERP Internal Process (Goal: Integration and efficiency) E Business External Process (Goal: Integration and effectiveness)
  • 38. ERP Architecture • influences the cost, • maintenance, • and the use of the system
  • 40. Logical Architecture Physical Architecture supporting the requirements of the end users focuses on the efficiency (cost, response time, etc.) of the system.
  • 44. • increase customer access to products and services, • reduce operating costs, • respond more rapidly to a changing marketplace, • Improved access to data for operational decision making • Upgrade of technology infrastructure
  • 45. Another goal of ERP system is to integrate departments and functions across an organization onto a single infrastructure that serves the needs of each department
  • 46. Assignment No. 1 Discuss the role of ERP in organizations. How can the use of ERP systems remove information or functional silos in organizations? • Assignment should be less than 300 words • Due Date: 22 March, 2022 • Submit your assignment in hard copy (No color prints, No files)

Editor's Notes

  1. Resource: a stock or supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively.
  2. Planning is the process of thinking regarding the activities required to achieve a desired goal.
  3. There are diff types of departments in business. There might be more.
  4. E-business (electronic business) is the conduct of business processes on the internet. These e-business processes include buying and selling goods and services, servicing customers, processing payments, managing production control, collaborating with business partners, sharing information, running automated employee services, recruiting; and more.
  5. Both e-Business and ERP technologies have pretty much evolved simultaneously, since the 1990s and both provide platform for systems integration or data sharing. *e-Business is a disruptive technology, whereas ERP is adaptive technology. e-Business practically transformed the way business operates in terms of buying and selling, customer service, and its relationships with suppliers. This caused a lot of disruptions in organizational strategy, structure, power, and the like. ERP has emerged as an adapter by merging the early data processing and integration efforts within a large corporation.
  6. The architecture of the ERP implementation influences the cost, maintenance, and the use of the system. A flexible architecture is best because it allows for scalability as the needs of the organization change and grow.
  7. The logical architecture, focuses on supporting the requirements of the end users, whereas the physical architecture focuses on the efficiency (cost, response time, etc.) of the system. The logical architecture provides the database schemas of entities and relationships at the lowest tier, followed by the core business processes and business logic handled by the system at the second tier. The third tier provides details on the applications that support the various business functions built in to the ERP system. The end users do not ever see the first and second tiers because they interact primarily with the client–user interface application tier that provides them access to the functional applications.
  8. The logical architecture provides the database schemas of entities and relationships at the lowest tier, followed by the core business processes and business logic handled by the system at the second tier. The third tier provides details on the applications that support the various business functions built in to the ERP system. The end users do not ever see the first and second tiers because they interact primarily with the client–user interface application tier that provides them access to the functional applications.