BUSINESS B 5 Enterprise Resource Planning ERP Learning

BUSINESS B 5 Enterprise Resource Planning (ERP)

Learning Outcomes n Compare core ERP components and n n extended ERP components Describe three primary components found in core ERP Describe the four primary components found in extended ERP systems Explain the benefits and risks associated with ERP systems Assess the future of ERP systems 2

Introduction n ERP – integrates all departments and functions throughout an organization into a single IT system so that employees can make enterprisewide decisions by viewing enterprisewide information on all business operations n Core ERP components – traditional components included in most ERP systems and they primarily focus on internal operations n Extended ERP components – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations 3

4

Accounting and Finance Components n manage accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management 5

Production and Materials Management Components n handle the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control 6

Human Resource Components n track employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities 7

Extended ERP Components n Business intelligence - information that people use to support their decision-making efforts n CRM - involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability n SCM - involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability n E-business - means conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners 8

E-Business Components n E-logistics – manages the transportation and storage of goods n E-procurement – the business-to-business (B 2 B) purchase and sale of supplies and services over the Internet 9

ERP Benefits 10

ERP Risks 11

The Future of ERP Lines between SCM, CRM, and ERP will continue to blur n Internet – continue to help organizations integrate data and process across functional departments n Interface – customizable employee browsers n Wireless technology – support a mobile workforce 12

Closing Case One: Pepsi. Americas’ Enterprises n Pepsi. Americas generates $2. 97 billion in revenues yearly n The company implemented People. Soft’s ERP solution to provide complete integration between Pepsi. Americas’ front-office and back -office systems n Pepsi. Americas also implemented People. Soft’s supply chain management component to automate its inventory 13

Closing Case Two Questions 1. 2. 3. 4. 5. How have core ERP components helped Pepsi. Americas improve its business? How have extended ERP components helped Pepsi. Americas improve its business? Explain how future ERP systems will help Pepsi. Americas increase revenues Assess the impact on Pepsi. Americas’ business if it failed to implement the CRM component of People. Soft’s ERP system Review the different People. Soft components in Figure B 5. 5. Which component would you recommend Pepsi. Americas implement if it decides to purchase an additional People. Soft component? 14

Closing Case Two: Demanding Chocolate n Ghirardelli is the longest continuously operating chocolate manufacturer in the Untied States n Ghirardelli improved inventory management and profitability through the implementation of an ERP system 15

Closing Case Two Questions 1. Which additional core ERP components would you recommend Ghirardelli implement? 2. Which additional extended ERP components would you recommend Ghirardelli implement? 3. How can implementing an Advanced Planning ERP component help Ghirardelli’s business? 16