chap 8 IS 3003

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

KEYWORD=enterprise

• 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

• ORGANIZATIONAL TOOLS
• -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

• -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

• -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

• 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