chap 8 IS 3003

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chap 8 IS 3003
2011-11-08 11:54:14
chap 3003

chap 8 IS 3003
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  1. ERP
    Enterprise Resource Planning System
    integrate all departments and functions throughout an organization into a single IT system( or integrated set of IT systems) so that employees can make enterprise wise decisions by viewing enterprise wide info on all the businesses.

    • -are based on a suite of integrated sw modules and common central database
    • -integrate data from key processes into single system
    • -speed communication throughout firm
    • -info entered in one process is immediately is immediately available for other processes
    • -enable greater flexibility in responding to customer requests, greater accuracy in current fufilment

  2. ERP software
    • built around thousands of predefined business processes that reflect best practices.
    • -finance /accounting-genreral ledger, accounts payable, and so on
    • -human resources- personal admin., payroll and so on
    • -sales/marketing-order processing, billing, sales planning and so on

    • best practices-the most successful solutions or problem solving methods for consistently and effectively achieving a business objective
    • - to implement, firms select fuctions of systems they wish to use, then map business process to sw process
  3. Reasons ERP is powerful
    • -ERP is logical solution to the mess of incompatible applications that have sprung up in most businesses
    • -ERP is used to avoid the pain and expense of fixing legacy systems
    • -ERP addresses the need for global information sharing and reporting
  4. Legacy Systems (standalone)
    • -older TPS's created for older companies that continue to be used to avoid the hi cost of replacing or redesigning them
    • -desgined to support one or few related business functions
    • -little or no integration with other organizational systems so information is not readily shared between systems.
    • -often variety on hw and sw platforms, also complicating compatibility
  5. ERP Benefits
    • -elimination of costly, inflexible legacy systems
    • -improved work processes-supports best practices
    • -increased availbility and timelineess information
    • -increased data accruacy and response time
    • -improved employee satisfaction
    • -reduction in inventory costs
    • -reduction in labor costs
    • -improves supplier relationships
    • -update your technology infrastructure
  6. ERP Risks/Costs
    • High Monetary costs
    • -erp system sw
    • -hw upgrades
    • -possible consulting fees
    • -possible customization fees

    • -may require radical changes to business process to conform the best practices supported by the ERP
    • -difficulties in installation-time involved
    • -extensive training required
    • -difficulty integrating with other systems you may not need to use