6A Enterprise Resource Planning (ERP)

Question 1

What does ERP stand for?

Answer 1

Enterprise Resource Planning

Question 2

What is ERP Systems?

Answer 2

Suite of integrated software modules and common central database

Question 3

What are the characteristics of ERP Systems?

Answer 3

Integrated system
Real time
Central database that supports all applications / modules
Consistency
Anyone working directly with customers (sales, customer service, marketing) require high quality TPS and their associated information to provide good customer service

Question 4

How is enterprise software constructed?

Answer 4

Built around thousands of predefined business processes that reflect best practices
Finance and accounting
Human Resources
Manufacturing and production
Sales and marketing

Question 5

How is enterprise software used?

Answer 5

To implement:
Select functions of system they wish to use
More business processes to software processes

Question 6

Advantages of Enterprise Systems

Answer 6

Improved access to data, work processes and decision making
Elimination of costly rigid legacy systems
Increase operational efficiency
Enable rapid responses to customer requests for information or products
Include analytical tools to evaluate overall organisational performance
Often accompanied by infrastructure upgrade

Question 7

Disadvantages of Enterprise Systems

Answer 7

Expense
Time 
Change
System integration
Data migration
Vendor lock in

Question 8

Give examples of ERP systems for businesses in terms of size

Answer 8

Small / medium:
Apache
Compiere
OpenBravo
WebERP

Large: 
SAP
ORACLE
Netsuite
Acumatica
Sage
Intacct