Presentation on theme: "Enterprise Resource Planning (ERP)"— Presentation transcript:
1 Enterprise Resource Planning (ERP) BUSINESS B5Enterprise Resource Planning (ERP)
2 Learning OutcomesCompare core ERP components and extended ERP componentsDescribe the three primary components found in core ERPDescribe the four primary components found in extended ERP systemsExplain the benefits and risks associated with ERP systemsAssess the future of ERP systems
3 IntroductionERP – integrates all departments and functions throughout an organization into a single IT system so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operationsCore ERP components – traditional components included in most ERP systems and they primarily focus on internal operationsExtended ERP components – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations
5 Accounting and Finance Components manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management
6 Production and Materials Management Components handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control
7 Human Resource Components track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities
8 Extended ERP Components Business intelligence - information that people use to support their decision-making effortsCRM - involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitabilitySCM - involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitabilityE-business - means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners
9 E-Business Components E-logistics – manages the transportation and storage of goodsE-procurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet
12 The Future of ERPLines between SCM, CRM, and ERP will continue to blurInternet – continue to help organizations integrate data and process across functional departmentsInterface – customizable employee browsersWireless technology – support a mobile workforce
13 Closing Case One: PepsiAmericas’ Enterprises PepsiAmericas generates $2.97 billion in revenues yearlyThe company implemented PeopleSoft’s ERP solution to provide complete integration between PepsiAmericas’ front-office and back-office systemsPepsiAmericas also implemented PeopleSoft’s supply chain management component to automate its inventory
14 Closing Case Two Questions How have core ERP components helped PepsiAmericas improve its business?How have extended ERP components helped PepsiAmericas improve its business?Explain how future ERP systems will help PepsiAmericas increase revenuesAssess the impact on PepsiAmericas’ business if it failed to implement the CRM component of PeopleSoft’s ERP systemReview the different PeopleSoft components in Figure B5.5. Which component would you recommend PepsiAmericas implement if it decides to purchase an additional PeopleSoft component?
15 Closing Case Two: Demanding Chocolate Ghirardelli is the longest continuously operating chocolate manufacturer in the Untied StatesGhirardelli improved inventory management and profitability through the implementation of an ERP system
16 Closing Case Two Questions Which additional core ERP components would you recommend Ghirardelli implement?Which additional extended ERP components would you recommend Ghirardelli implement?How can implementing an Advanced Planning ERP component help Ghirardelli’s business?