Enterprise Resource Planning - ERPLearning ObjectivesWhat is an ERPCompanies before and after ERPSystems ERP Software Companies &Marketshares Benefits and Challenges of EnterpriseSystems Extended enterprises and industrialnetwork 1-11-2What is ERP?What Is an ERP? ERP is an enterprise-wide information system An ERP integrates all departments and functionsdesigned to coordinate all the resources, information, activities neededto complete business processes such as; order fulfillment billing.across an organization onto a single computer system that aims to serve practically everyone's particularneeds. It eases the exchange of data and facilitatescommunication among departments. Each module in an ERP works separately, performingspecific data-processing functions.1-3What Is an ERP? A typical ERP system would use multiplecomponent of computer software andhardware to achieve integration ERP delivers a single database thatcontains all data for the software moduleWhat Is an ERP? Examples of ERP modules include thefollowing: Human resource management Financial management Supply chain management Procurement Logistics and materials management Planning and budgeting Sales and distribution1-61

Companies before ERP SystemsNew Printer Purchasing ProcessExample of CBU1. Purchase order form for a new printer School of Postgraduate studies wants to buya new Printer. For this reason Secretary gives a purchasingorder by filling purchasing order forms. Next slide shows how this purchasingrequest process flow was works2. Dean of School Confirmation3. Purchase order document sent to University AccountOffice4. Account Office Secretary sents the purchase order tothe Responsibles5. Purchase order- Responsible personal Confirmation6. Purchasing department- Manager ConfirmationExample: CBU7. Transfer to Finance Department Secretary forprocessing8. Finance Department Responsible’s ConfirmationTransfer toAccounting Office9. Transfer to Registrar’s Office10. Registrar’s Secretary- Confirmation11. Confirmation Transfer, to Purchase DepartmentSecretarySecretary’s New printerapplication12.Purchase Responsible personal commends withPurchase:1-112

Companies after ERP SystemsExample with ERP SGS wants to buy a new HP Printer. For this reason Secretary gives a purchasing order withusing CBU. Online SAP (Systems, Applications andProducts in Data Processing) ERP system. Next slide shows the purchasing order process flowwith ERP Systems.CBU After ERP SystemsERP Software Companies & MarketsharesSoftwareMarket ShareSAPSAP; 15,6Peoplesoft;4,9Others ; 5915.6Peoplesoft4.9Oracle4.8Baan3.0Oracle ; 4,8CA3.0Baan; 3JDE2.2SSA2.1CA; 3JDE; 2,2SSA; 2,1GEAC; 2IBM; 1,8JBA; 1,7GEAC2.0IBM1.8JBA1.7Others59.0Benefits and Challenges ofEnterprise SystemsBenefits of Enterprise Systems Enterprise systems promise to integrate the Firm Structure and Organization: Onediverse business processes of a firm into asingle integrated information architecturebut they present major challenges. Benefits of Enterprise SystemsOrganization Companies can use enterprise systems tosupport organizational structures that were notpreviously possible or to create a moredisciplined organizational culture. Enterprise systems promise to greatly changefour dimensions of business:3

Benefits of Enterprise Systems Management Firm wide Knowledge-based ManagementProcess In addition to automating many essentialbusiness transactions, such as takingorders, paying suppliers, or changingemployee benefit status, enterprise systems can also improvemanagement reporting and decisionmaking.Benefits of Enterprise Systems Business: More Efficient Operations and Customer-driven Business Process Enterprise systems canhelp create the foundation for a customerdriven or demand organization. By integrating discrete business processessuch as sales, production, finance, andlogistics, the entire organization canefficiently respond to customer requests forproducts or information, forecast newproducts, and build and deliver them asdemand requires.Benefits of Enterprise Systems Technology: Unified Platform Enterprise systemspromise to provide firms with a single,unified, and all-encompassing informationsystem technology platform andenvironment. Enterprise systems promise to create asingle, integrated repository that gathersdata on all the key business processes.The Challenge of Enterprise Systems Although enterprise systems can improveorganizational coordination, efficiency, anddecision making, they have proven verydifficult to build. Employees must take on new job functionsand responsibilities. Enterprise systems require complex piecesof software and large investment of time,money, and expertise.The Challenge of Enterprise SystemsThe Challenge of Enterprise Systems Daunting Implementation: High Up-front Cost and Future Benefits Enterprise systems bring dramaticchanges to business. They require not only deep-seatedtechnological changes but alsofundamental changes in the way thebusiness operates. The costs of enterprise systems are large,up-front, highly visible, and oftenpolitically changed. Although the costs to build the system areobvious, the benefits often cannot beprecisely quantified at the beginning of anenterprise project.4

The Challenge of Enterprise Systems Inflexibility Enterprise system software tends to becomplex and difficult to master, with aworldwide shortage in people with theexpertise to install and maintain it. The software is deeply intertwined withcorporate business.Extended enterprises and industrialnetwork In some industries, companies are extendingtheir enterprise systems beyond theboundaries of the firm to share informationand coordinate business processes withother firms in their industry. Industry networks, which are sometimescalled extended enterprises, link togetherthe enterprise systems of firms in an entireindustry.The Challenge of Enterprise Systems Realizing Strategic Value Companies may also fail to achievestrategic benefits from enterprise systemsif integrating business processes using thegeneric models provided by standard ERPsoftware prevents the firm from usingunique business processes that had beensources of advantage over competitors.Extended enterprises and industrialnetwork There are two kinds of industrial networks. Vertical industrial networks integrate theoperations of the firm with its suppliers andcan be used for supply chain management. Horizontal industrial networks link firmsacross an entire industry includingcompetitors.5

ERP Software Companies& Marketshares Benefits and Challenges of Enterprise . Accounting Office Example: CBU. 3 Companies after ERP Systems Example with ERP SGS wants to buy a new HP Printer. . GEAC 2.0 IB