Enterprise Resource Planning (ERP) System.pptVIP

Enterprise Resource Planning (ERP) System An ERP system is a commercial software package that enables a company to integrate the data used throughout the entire organization. May be the most important development in the corporate use of information technology in the 90s.  (Source: Davenport, 1998) Information Fragmentation Information is typically spread across numerous separate computer systems, each housed in individual function, business unit, region, factory or office. This results in redundant data, need for reentering or reformatting data, etc. Interoperability problems exist between individual systems. (Source: Davenport, 1998) Information Integration At the core of an ERP software system is a single comprehensive database, which streamlines the flow of information throughout a business. The database collects data from and feeds data into modular applications supporting virtually all of a company’s business activities. (Source: Davenport, 1998) ERP Software Modules Financials Human Resources and Pay Roll Distribution/Logistics Sales Marketing Manufacturing Product Data Management Material Planning Resource Capacity Planning Shop Floor Management Quality Management, etc. (Source: Davenport, 1998) Big Five - JBOPS OneWorld () BaanERP () Oracle () PeopleSoft () SAP’s R/3 () ERP Implementation ERP systems require a major commitment and investment, often require companies to modify some of their processes to accommodate the software, and can take a long time to implement. (Source: Davenport, 1998) ERP Business Processes A company often has to modify some of its business processes to accommodate the ERP software system. The organizational changes resulting from these modifications could easily overwhelm a company. Furthermore, some of these modifications may not be acceptable to the company. (Source: Davenport, 1998) Benefits of ERP Systems Automated update of related information when new information is entered in one module. Direct ac