Running the Business: Enterprise Systems (ERP) Flashcards
Why should we care about ERPs?
Business people must understand them so they can make the best decisions for a company
What is an ERP system?
Business processes that span multiple functional areas
What benefits does ERP have for companies?
Gives global, real-time view of data that can enable companies to address concerns proactively and drive improvements
What effect does ERPs have on risk?
Improves financial compliance with regulatory standards and reduces risk
What things do ERPs automate?
Automate core business operations such as lead-to-cash, order-to-fulfillment, and procure-to-pay processes
What effect does ERP have on customer service?
Enhances customer service by providing one source for billing and relationship tracking
What sections of businesses can be included in ERPs?
CRM Sales Procurement Production Distribution Accounting HR Corporate performance/governance Business Intelligence e-Commerce Enterprise Asset Management
Legacy Systems
Sales, Warehouse, Accounting
What are some challenges of ERPs?
- Adoption: People hate change
- Complex configuration
- Complex implementation
- Cost
- High risk because failures lead to company loss
- Internally focused–need support of all
The decision to invest in an ERP is a _____
Business Decision
What are some benefits of ERPs?
- Single database providing real-time, data-driven decision making
- Standardizes business processes based on best practices
- Reduces operating costs
Who are some leaders in ERP space?
SAP
Oracle
Microsoft Dynamics
How does an ERP get implemented and become successful?
- Executive sponsor
- Driven by business, not IT
- Experts from all areas
- Top-tier integration partner
- Training
- Testing
- Not cutting corners
What is the central feature of an ERP?
Shared database that supports multiple functions used by different business units
Where does ERP come from?
Garter (1990) but roots to 1960s; 1970s Material Requirements Planning expanded beyond inventory control
