ENTERPRISE SOFTWARE

ENTERPRISE SYSTEMS (ES) Enterprise systems (ES) are large-scale organizational systems which composed of people, processes and information technology built around packaged enterprise system software: is a set of packaged application software modules, with an integrated architecture, that can be used by organizations as their primary engine for integrating data, processes, and information technology, in real time, across internal and external value chains; impound deep knowledge of business practices that vendors have accumulated from implementations in a wide range of client organizations, that can exert considerable influence on the design of processes within new client organizations;

ENTERPRISE SYSTEMS (ES) is a generic “semi-finished” product with tables and parameters that client organizations and their implementation partners must configure, customize, and integrate with other computer-based information systems to meet their business needs.

ENTERPRISE SYSTEM SOFTWARE (ESS) Enterprise system software (ESS) includes: Enterprise Resource Planning (ERP) Customer Relationship Management (CRM) Supply Chain Management (SCM) Product Life Cycle Management (PLM) Enterprise Application Integration (EAI) Data Warehousing Decision Support Intelligent Presentation Layer eProcurement/eMarketplace/electronic exchange software

ENTERPRISE RESOURCE PLANNING SYSTEMS (ERP) “ERP comprises of a commercial software package that promises the seamless integration of all the information flowing through the company – financial, accounting, human resources, supply chain and customer information” (Davenport, 1998). “One database, one application and a unified interface across the entire enterprise” (Tadjer, 1998). “ERP systems are configurable information systems packages that integrate information and information-based processes within and across functional areas in an organization” (Kumar & Van Hillsgersberg, 2000). “ERP systems are computer-based systems designed to process an organization's transactions and facilitate integrated and real-time planning, production, and customer response” (O'Leary, 2001).

ENTERPRISE RESOURCE PLANNING SYSTEMS (ERP) “A method for the effective planning and controlling of all the resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company“ (American Production and Inventory Control Society, 2001). “Core software used by companies to coordinate information in every area of the business such as planning, manufacturing, sales, marketing, distribution, accounting, financial, human resource management, project management, inventory management, service and maintenance, transportation and e-business” (Monk, 2009).

ENTERPRISE RESOURCE PLANNING SYSTEMS (ERP) SUMMARY: ERP programs help to manage company-wide business processes, using a common database and shared management reporting tools. ERP software supports the efficient operation of business processes by integrating throughout a business tasks related to sales, marketing, manufacturing, logistics, accounting, and staffing.

WHAT IS IT A “BUSINESS PROCESS”? A business process is a collection of activities that takes one or more kinds of inputs (raw material, information, etc.) and creates an output, such as a goods, report or forecast, that is of value to the customer.

BUSINESS PROCESS OF BEER BREWING http://www.worthybrewing.com/

THE SAMPLE OF THE FUNCTIONAL ORGANIZATION CHART Top Management Marketing and Sales (M/S) Employee Supply Chain Management (SCM) Accounting and Finance (A/F) Human Resources (HR)

MAIN FUNCTIONAL AREAS OF COMPANY’S OPERATION Marketing and Sales (M/S) Marketing of a product Taking sales orders Customer support Customer relationship management Sales forecasting Advertising Supply Chain Management (SCM) Accounting and Finance (A/F) Human Resources (HR)

MAIN FUNCTIONAL AREAS OF COMPANY’S OPERATION Marketing and Sales (M/S) Supply Chain Management (SCM) Purchasing goods and raw materials Receiving goods and raw materials Transportation and logistics Scheduling production runs Manufacturing goods Plant maintenance Accounting and Finance (A/F) Human Resources (HR)

MAIN FUNCTIONAL AREAS OF COMPANY’S OPERATION Marketing and Sales (M/S) Supply Chain Management (SCM) Accounting and Finance (A/F) Financial accounting of payments from customers and to suppliers Cost allocation and control Planning and budgeting Cash-flow management Human Resources (HR)

MAIN FUNCTIONAL AREAS OF COMPANY’S OPERATION Marketing and Sales (M/S) Supply Chain Management (SCM) Accounting and Finance (A/F) Human Resources (HR) Recruiting and hiring Training Payroll Benefits

FUNCTIONAL AREA INFORMATION SYSTEMS: MARKETING & SALES Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. – Boston: Course Technology Cengage Learning.

FUNCTIONAL AREA INFORMATION SYSTEMS: SUPPLY CHAIN MANAGEMENT Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. – Boston: Course Technology Cengage Learning.

FUNCTIONAL AREA INFORMATION SYSTEMS: ACCOUNTING & FINANCE Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. – Boston: Course Technology Cengage Learning.

FUNCTIONAL AREA INFORMATION SYSTEMS: HUMAN RESOURCES Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. – Boston: Course Technology Cengage Learning.

INFORMATION AND MATERIAL FLOWS IN A FUNCTIONAL BUSINESS MODEL

DATA FLOW WITHIN AN INTEGRATED INFORMATION SYSTEM Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. – Boston: Course Technology Cengage Learning.

TYPICAL TECHNOLOGICAL CHARACTERISTICS OF AN ERP ERP systems are large integrated computer software packages consisting of components, each with a given set of functions. All available functions operate on a shared set of data, thereby achieving integration. The idea of these systems is to support every single aspect of organizational storage, processing, retrieval, and distribution of data.

TYPICAL ERP SYSTEM MODULES http://blog.weberp4.com/

INFORMATION AND MATERIAL FLOWS IN A PROCESS BUSINESS MODEL Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. – Boston: Course Technology Cengage Learning.

ADVANTAGES OF ERP SYSTEMS What benefit How Reliable information access Common DBMS, consistent and accurate data, improved reports Avoid data and operations redundancy Modules access same data from the central database, avoids multiple data input and update operations Delivery and cycle time reduction delays Minimizes retrieving and reporting Cost reduction Time savings, improved control by enterprise-wide analysis of organizational decisions

ADVANTAGES OF ERP SYSTEMS What benefit How Easy adaptability Changes in business processes easy to adapt and restructure Improved scalability Structured and modular design with “add­ons” Improved maintenance Vendor-supported long-term contract as part of the system procurement Global outreach Extended modules such as CRM E-Commerce E-business Internet commerce, collaborative culture

DISADVANTAGES OF ERP SYSTEMS Disadvantage How to overcome Time-consuming Minimize sensitive issues, internal politics and raise general consensus Expensive Cost may vary from thousands of dollars to millions Business process reengineering cost may be extremely high Conformity of the modules The architecture and components of the selected system should conform to the business processes, culture and strategic goals of the organization

DISADVANTAGES OF ERP SYSTEMS Disadvantage How to overcome Vendor dependence Single vendor vs. multi-vendor consideration, options for “best of breeds”, long-term committed support Features and complexity ERP system may have too many features and modules so the user needs to consider carefully and implement the needful only Scalability and global outreach Look for vendor investment in R&D, long­term commitment to product and services, consider Internet-enabled systems

DISADVANTAGES OF ERP SYSTEMS Disadvantage How to overcome Extended ERP capability Consider middle-ware “add-on” facilities and extended modules such as CRM and SCM.