McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Plug-in B10 ENTERPRISE RESOURCE PLANNING

10-2 ENTERPRISE RESOURCE PLANNING Enterprise resource planning – a single IT system (or integrated set of IT systems) that __________ all departments and functions throughout an organization

10-3 ENTERPRISE RESOURCE PLANNING

10-4 CORE AND EXTENDED ERP COMPONENTS Core ERP component –Traditional components included in most ERP systems –Primary focus is on __________ operations Extended ERP component –Extra components that meet the needs not covered by the core components –Primarily focus is on external operations

10-5 CORE AND EXTENDED ERP COMPONENTS

10-6 Accounting and Finance ERP Components Accounting and finance ERP component – manages accounting data and financial processes within the enterprise –general ledger –accounts payable –accounts receivable –budgeting –________ management

10-7 Production and Materials Management ERP Components Production and materials management ERP component – handles the various aspects of production such as –demand forecasting –production scheduling –_______ –job cost accounting –quality control

10-8 Human Resource ERP Component Human resource ERP component – tracks employee information including –Payroll –Benefits –Compensation –____________ assessment Assures compliance with the legal requirements of multiple jurisdictions and tax authorities

10-9 EXTENDED ERP COMPONENTS Extended ERP components include: –Business intelligence –Customer relationship management –Supply chain management –__-business

10-10 E-Business Components E-business components include e-logistics and e-procurement –E-logistics – manages the transportation and storage of goods –E-procurement – the business-to- business (_____) purchase and sale of supplies and services over the Internet

10-11 ERP VENDOR OVERVIEW SAP boasts 17,000 installations in 120 countries and 10 million users worldwide Top ERP Vendors and Revenue in 2006 (million $) –SAPSAP –Oracle ApplicationsOracle Applications –Infor Global SolutionsInfor Global Solutions –The Sage GroupThe Sage Group –Microsoft Dynamics (Formerly Microsoft Business Solutions)Microsoft Dynamics (Formerly Microsoft Business Solutions) Compare ERP vendors

10-12 ERP Vendor Overview SCM and CRM market overviews

10-13 ERP BENEFITS AND RISKS Common ERP benefits 1.Integrate financial information 2.Integrate customer order information 3.Standardize and speed up manufacturing processes 4.Reduce _____________ 5.Standardize human resource information

10-14 ERP BENEFITS AND RISKS

10-15 THE FUTURE OF ERP Lines between SCM, CRM, and ERP will continue to blur –Internet – continue to help organizations integrate data and process across functional departments –Interface – customizable employee browsers –__________ technology – support a mobile workforce