ERP Enterprise Resource Planning What is ERP n

ERP Enterprise Resource Planning

What is ERP? n n Software programs that help to manage company-wide business processes, using a common database and shared management reporting tools. Integrate business activities, including ¨ Sales ¨ Marketing ¨ Manufacturing ¨ Accounting ¨ Human Resources

Functional Areas of Operation n Marketing and Sales n Production and Materials Management n Accounting and Finance n Human Resources

Functional Areas of Operation n Marketing and Sales ¨ Sales order processing ¨ Customer relationship management ¨ Customer support ¨ Sales forecasting ¨ Advertising

Functional Areas of Operation n Production and Materials Management ¨ Purchasing ¨ Receiving ¨ Transportation/logistics ¨ Production scheduling ¨ Manufacturing ¨ Plant maintenance

Functional Areas of Operation n Accounting and Finance ¨ Financial accounting ¨ Cost allocation and control ¨ Planning and budgeting ¨ Cash-flow management

Functional Areas of Operation n Human Resources ¨ Recruiting ¨ Hiring ¨ Training ¨ Payroll ¨ Benefits

Business Processes n Collection of activities that takes one or more kinds of inputs and creates an output that is of value to the customer

What’s the difference between a business process and a business function? n Suppose a customer’s computer is damaged during shipment. ¨ It’s a business function of Customer Service to accept the damaged item. ¨ The actual repair and redelivery of the item is a business process that involves several functional areas and functions within those areas.

How can the computer company provide customer satisfaction? n n What information do the people performing the Sales function need? What information do the people performing the Manufacturing function need? n Information systems can be designed so that accurate and timely data are shared between functional areas – integrated information systems—

Functional Areas and Business Processes of a Very Small Business n The Lemonade Stand ¨ Though one person can run, the operation requires a number of business processes. n n Marketing and sales Production and materials management Accounting and finance Human resources ¨ Identify areas some of the functions for each functional

Functional Area Information Systems Describe some of the potential inputs and outputs for each functional area. n Note the kinds of data needed and how people use the data n Note the information systems relationships between each functional area n