ERP Enterprise Resource Planning

What is ERP?

  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

 Marketing and Sales  Production and Materials Management  Accounting and Finance  Human Resources

Functional Areas of Operation

 Marketing and Sales  Sales order processing  Customer relationship management  Customer support  Sales forecasting  Advertising

Functional Areas of Operation

 Production and Materials Management  Purchasing  Receiving  Transportation/logistics  Production scheduling  Manufacturing  Plant maintenance

Functional Areas of Operation

 Accounting and Finance  Financial accounting  Cost allocation and control  Planning and budgeting  Cash-flow management

Functional Areas of Operation

 Human Resources  Recruiting  Hiring  Training  Payroll  Benefits

Business Processes

 Collection of activities that takes one or more kinds of inputs and creates an output that

is of value to the customer

Inputs Process Ouputs

What’s the difference between a business process and a business function?

 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?

 What information do the people performing the Sales function need?

 What information do the people performing the Manufacturing function need?

 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  The Lemonade Stand  Though one person can run, the operation requires a number of business processes.

 Marketing and sales  Production and materials management   Accounting and finance Human resources  Identify some of the functions for each functional areas

Functional Area Information Systems  Describe some of the potential inputs and outputs for each functional area.

 Note the kinds of data needed and how people use the data  Note the information systems relationships between each functional area