Week 6 - Enterprise systems Flashcards
ERP system is a packaged business software that: (4)
- automates and integrates the majority of business processes within an organization
- enables sharing data and common practices across the enterprise
- provides real-time access to information
- ERP integrates all departments and functions across a company into a single computer system
The functions of IS in an enterprise (5)
- Sales
- Accounting
- Logistics
- Procurement
- Human Resources
Progression from traditional to ERP (4)
IT structure within companies:
1. Traditionally: IS support individual business units
2. ERP: Integrates information from all business units
IT sourcing:
3. Traditionally: IS were developed in house or by order
4. ERP is off-the-shelf software
History of ERP (4)
- 1960s: inventory management & control
- 1970s: MRP
- 1980s: ERP
- 1990s: ERP 2 (cloud-based)
Initial Investment (2)
- Large companies: $100m-200m
2. Small companies: $ 1m
Cost breakdown (5)
- Consulting (30%)
- Hardware (25%)
- Software (15%)
- Deployment team (15%)
- Training (15%)
How long does an ERP implementation take?
1-4 years
Benefits from ERP systems (7)
- Inventory reduction
- Personnel reduction
- Productivity improvement
- Order Management improvement
- Financial close cycle reduction
- IT cost reduction
- Procurement cost reduction
ERP Challenges People (3)
- change management
- training
- staff adequacy and training
ERP Challenges Process (2)
- process reengineering
2. requiring ongoing support
ERP Challenges Technology (2)
- Software functionality
2. Upgrades
SAP (2)
- SAP: systems applications, products
2. ERP has over 10 core modules: finance, HR, e-commerce, analytics, banking, project management…
Oracle e-Business Suite
Includes Oracle database, CRM , financials, logistics, order management, and warehouse management systems
Microsoft - Microsoft Dynamics (2)
- aimed at smaller companies
2. Includes accounting, finance, HR, and CRM modules
To customize or not?
- ERP is essentially about integration and standardization
2. despite “best practices” built in ERP and business processes may not fit