Enterprise Resource Planning System
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This document discusses two types of information systems: file-oriented systems and enterprise systems. File-oriented systems consist of separate application programs that each manage their own data, while enterprise systems comprise integrated software modules that share a central database. Enterprise systems are also known as ERP systems and collect data across a firm's divisions to support nearly all internal business processes. They are built around predefined best practice business processes for functions like finance, HR, manufacturing, and sales.
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- Staff turnover
- Lack of change management procedures
- Inexperience of staff and management
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- Lengthy implementation timelines (1-3 years)
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Enterprise Resource Planning System
- 1. SM.SAJIR SEU/IS/11/MG/020 Faculty of management and commerce South eastern university of Srilanka
- 2. Systems are using to manage information File- Oriented system Enterprise system
- 3. File-oriented System Collection of application programs that perform services for the end users (e.g. reports). Each program defines and manages its own data.
- 4. File- oriented system Database Database Database Database
- 5. Also called enterprise resource planning (ERP) systems Suite of integrated software modules and a common central database Collects data from many divisions of firm for use in nearly all of firms internal business activities Information entered in one process is immediately available for other processes Enterprise Systems
- 6. Enterprise Systems HOW ENTERPRISE SYSTEMSWORK
- 7. Enterprise Software Built around thousands of predefined business processes that reflect best practices Finance/accounting: General ledger, accounts payable, etc. Human resources: Personnel administration, payroll, etc. Manufacturing/production: Purchasing, shipping, etc. Sales/marketing: Order processing, billing, sales planning, etc. To implement, firms: Select functions of system they wish to use Map business processes to software processes Use softwares configuration tables for customizing
- 8. Business value of enterprise systems Increase operational efficiency Provide firm wide information to support decision making Enable rapid responses to customer requests for information or products Include analytical tools to evaluate overall organizational performance
Editor's Notes
- #6: This slide describes the main purpose of enterprise systems. Ask students for examples of why it might be valuable to have information from one process instantly available to another process.
- #7: This graphic illustrates the function of enterprise software to integrate and share data between the different business functions. One of the key ideas of enterprise solutions is that theres one company, one database and not a collection of disconnected databases.
- #8: This slide describes the functions in an enterprise software package and how it would be implemented by a firm. Ask students why it is typically best to perform only minimal changes to enterprise software, and instead, change the way the firm works in order to conform to the softwares business processes.
- #9: This slide discusses the business values of enterprise systems. What does it mean for the firm that enterprise systems enforce the use of common standardized definitions and formats for data by the entire organization? The text discusses Coca Cola, which implemented an SAP enterprise system to standardize and coordinate important business processes in 200 countries. Lack of standardized business processes prevented the company from leveraging its worldwide buying power to obtain lower prices for raw materials and from reacting rapidly to market changes.