ERP . Systems. Integrating the Organization from End to End. ERP: Enterprise Resource Planning. ERP . – . integrates all departments and functions throughout an organization into a single IT system. ID: 741169
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Enterprise Resource PlanningERP Systems
Integrating the Organization from End to EndSlide2
ERP: Enterprise Resource PlanningERP – integrates all departments and functions throughout an organization into a single IT system
(or integrated set of IT systems)
so that employees can make enterprise wide decisions by viewing enterprise wide information on all business operations (consistent enterprise wide information)
Keyword in ERP is “enterprise”
ERP systems focus on integrating all processes, departments and operations for the entire enterpriseSlide3
Enterprise Resource PlanningERP systems collect data from across an organization and correlates the data generating an enterprise wide view that is consistent and real-time. Everyone involved in sourcing, producing and delivering a company’s product works with the same information.
Real timeConsistentOne truepicture
Components of ERP SoftwareThree most common core components focus on internal operations (accounting/finance, production/materials management and HR)
Extended components typically focus on external operations and require interactions with customers, suppliers and business partners outside of the organization.
Make sure that you know what each component typically handles.
Skipped details slides followSlide5
Enterprise Resource Planning (ERP)At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire
system: ERP systems automate business processesSlide6
ERP Benefits Having integrated systems
helps eliminate the mess of incompatible applications that many businesses had previously started to use (also didn’t have to fix those old legacy systems)
Integrate financial information and customer order information
Everyone working with the same information eliminates redundancies, reduces wasted time and removes misinformation
Standardize and speed up manufacturing processes, as well as reduce inventory
ERP addresses the need for global information sharing and reporting.One of the greatest benefits of an ERP system is helping people understand how the organization is performing from an enterprise perspective. Provides organizations with information that was previously difficult (if not impossible) to obtain, allowing the organization to perform more efficiently and effectively.Slide7
ERP Risks (Costs)
Costly in terms of money, time, amount of training required, and effort to implement.
One vendor risks: too costly to simply switch to another system. Company essentially held hostage.
Employees resist new way of doing things.
Difficult to integrate new ERP system with existing systems.Slide8
ERP VendorsSAP: #1 in market share (leader)Oracle: #2 in market share
Gains in market share through acquisition of smaller competitors
The ERP system that powers KSIS (K-State Student Information System)PeopleSoft is owned by OracleSlide9
Microsoft Business Solutions Great Plains Dynamics
#1 market share
Oracle: #2 market share
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