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

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