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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
KEYWORD= enterprise
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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
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Reasons ERP is powerful
- 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
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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
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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
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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
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