Enterprise Resource Planning (ERP) System zAn ERP system is a commercial software package that enables a company to integrate the data used throughout the entire organization. zMay be the most important development in the corporate use of information technology in the 90s. (Source: Davenport, 1998)

Information Fragmentation zInformation is typically spread across numerous separate computer systems, each housed in individual function, business unit, region, factory or office. zThis results in redundant data, need for reentering or reformatting data, etc. zInteroperability problems exist between individual systems. (Source: Davenport, 1998)

Information Integration zAt the core of an ERP software system is a single comprehensive database, which streamlines the flow of information throughout a business. zThe database collects data from and feeds data into modular applications supporting virtually all of a company’s business activities. (Source: Davenport, 1998)

ERP Software Modules zFinancials zHuman Resources and Pay Roll zDistribution/Logistics zSales & Marketing zManufacturing yProduct Data Management yMaterial Planning yResource & Capacity Planning yShop Floor Management yQuality Management, etc. (Source: Davenport, 1998)

AN ERP SYSTEM Central database Financial Manufac -turing Inventory and Supply Back- Office Ad and Workers SUPPLIERSSUPPLIERS Human Resource Mgmt Reporting Managers and Stakeholders Employees Service Sales & Delivery Sales Force & Customer Service Rep CustomersCustomers (Source: Davenport, 1998)

Big Five - JBOPS zOneWorld ( zBaanERP ( zOracle ( zPeopleSoft ( zSAP’s R/3 (

ERP Implementation ERP systems zrequire a major commitment and investment, zoften require companies to modify some of their processes to accommodate the software, and zcan take a long time to implement. (Source: Davenport, 1998)

ERP & Business Processes zA company often has to modify some of its business processes to accommodate the ERP software system. zThe organizational changes resulting from these modifications could easily overwhelm a company. zFurthermore, some of these modifications may not be acceptable to the company. (Source: Davenport, 1998)

Benefits of ERP Systems zAutomated update of related information when new information is entered in one module. zDirect access to a wealth of real-time operating information. zThese benefits could translate into dramatic gains in productivity and speed. (Source: Davenport, 1998)

Current Trends in ERP Software zEasy-to-install and relatively inexpensive ERP modules. zEnterprise extension software that yplugs “holes” within the factory yexpands ERP-style benefits beyond the factory. (Source: Bylinsky, 1999)

ERP Modules vs ERP Systems zERP modules designed specifically for manufacturers using newer concepts. For example, Pivot.Man from Pivotpoint. zIn many cases they don’t force a company to change its operations to suit the software. (Source: Bylinsky, 1999)

Enterprise Extension Software zThese hook on to traditional ERP systems as well as to the newer ERP modules. zWithin the factory, Manufacturing Execution Systems (MES) bridge the gap between the plant and ERP programs. For example, Dynamic Performance Monitoring (DPM) software from Foxboro. (Source: Bylinsky, 1999)

Enterprise Extension Software (continued) zFront-office and back-office software that extends ERP-style benefits beyond the factory. zAn example of a back-office software is CSM (Component and Supplier Management) software from Aspect Development Corporation, for the in- bound supply chain. (Source: Bylinsky, 1999)

Enterprise Extension Software (continued) zOn the front-office side, customer relationship management (CRM) is the hottest area. zSiebel systems is a leading manufacturer of CRM software. zThe Big Five are also developing CRM extensions for their ERP systems. (Source: Bylinsky, 1999)

e-Commerce zUsing the Web and other electronic means for buying, selling and distributing goods and services (Source: Alter, 1999)

Electronic Data Interchange (EDI) zAllows companies to exchange documents in a structured and computer-processable format. zHelps to automate and streamline a business by eliminating or simplifying clerical tasks, speeding information transfer, reducing data errors, and eliminating business processes. (Source: Fu et al., 1999)

e-Commerce zEvolution from VAN-based EDI to Web- based EDI. zWeb-based EDI addresses the needs of small and medium-sized firms. zBusiness-to-consumer and business-to- business. (Source: Fu et al., 1999)

Evolution of e-Commerce zVAN-based EDI yneeds considerable infrastructure yapplication, translation software and communication network yover private VANs zWeb-based EDI ylow-cost transport mechanism yworld-wide connections yXML documents (Source: Fu et al., 1999)