4. Enterprise resource planning (ERP) is business process
management software that allows an organization to use a
system of integrated applications to manage the business and
automate many back office functions related to technology,
services and human resources.
“Integration” is the key word for ERP implementation.
5. It may also integrate key
customers and suppliers as
part of the enterprise’s
operation.
It provides integrated
database and custom-
designed report systems.
It adopts a set of “best
practices” for carrying out all
business processes.
6.
7. 3 Major Reasons:
To integrate financial data.
To standardize
manufacturing processes.
To standardize HR
information.
8. Integrate customer order information
Standardize and speed up operations
processes
Reduce inventory
Standardize Human Resources
information
10. Internal Benefits
Integration of a single source of data
Common data definition
A real-time system
Increased productivity
Reduced operating costs
Improved internal communication
Foundation for future improvement
11. External Benefits
Improved customer service and order fulfillment
Improved communication with suppliers and
customers
Enhanced competitive position
Increased sales and profits
12. Expensive (can costs 100 thousands to
millions of dollars)
Time-consuming (can take months to years)
Great risk for the organization
Transfer of Knowledge
Acceptance with the company
13. Integrates the front and back
office to enable an “information
visibility” strategy that pushes
the right information to the right
people at the right time through
the right communications
channels.
A competitive strategy that
integrates a centralized, core
ERP system with highly
specialized solutions.
14. Availability of web-based and wireless ERP
systems
Adoption of easy-to-install ERP systems
Linkage to other software systems, e.g.,
supply chain management system, e-
commerce, customer relationship
management system
15.
16. Customer relationship management (CRM) is a term that
refers to practices, strategies and technologies that
companies use to manage and analyze customer
interactions and data throughout the customer lifecycle,
with the goal of improving business relationships with
customers, assisting in customer retention and driving
sales growth.
17. Supply chain management (SCM) is the oversight of
materials, information, and finances as they move in a
process from supplier to manufacturer to wholesaler to
retailer to consumer. Supply chain management involves
coordinating and integrating these flows both within and
among companies.