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
Inputs
Process
Ouputs
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
areas
some of the functions for each functional
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
