CHAPTER TEN Enterprise Resource Planning and Collaboration Systems

ERP (Your Book’s Definition) Enterprise resource planning – 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

ERP (Your Book’s Definition) Enterprise resource planning – 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

ERP (My Definition) All of an organization’s business processes are integrated into a single system (SCM, CRM, accounting, finance, manufacturing, along with specialized function applicable to specific industries)

ERP (Players) SAP has 30+ percent of the market Oracle / PeopleSoft IBM Microsoft Dynamics

ERP (Functions)

ERP (Business Processes)

ERP (Benefits) Breaks down or eliminates information silos Business processes are performed more efficiently All functional systems interact together

ERP (Risks) Failure can be catastrophic Hershey -failure-in-hersheys-presentation -failure-in-hersheys-presentation This list is endless Failure is typically caused by Poor planning Not understanding and adapting business process to the ERP

The Evolution of ERP

Core ERP Components (1) Accounting and Finance Integrates traditional AR / AP / inventory / payroll / general ledger Financial reporting systems Operates with multiple currencies

Core ERP Components (2) Production and materials management Raw materials supply chain Manufacturing You can’t make what you don’t have Distribution You can’t ship what you have not made Human resources

ERP (Manufacturing and Production)

Extended Components Business intelligence integration CRM SCM Often considered a core component Ebusiness Also becoming a core component Procurement (B2B) Sales (B2C)

Enterprise Application Integration Integrate SCM, CRM, ERP business partners, suppliers, distributers, resellers, customers typically by creating SOA middleware

Collaboration Systems (Introduction) Simply put, they help people (employees / partners / customers) effectively work together and share information

Collaboration Systems (Illustration)

ERP Demo Accounting Financial / Managerial Sales and Distribution Customers and products Procurement Production Quality management Warehouse management HR And whatever else…