Download Core and Extended ERP Components

BUSINESS PLUG-IN
B10
Enterprise Resource
Management
McGraw-Hill/Irwin
© The McGraw-Hill Companies, All Rights Reserved
LEARNING OUTCOMES
1. Compare core enterprise resource planning
components and extended enterprise
resource planning components
2. Describe the three primary components found
in core enterprise resource planning
3. Describe the four primary components found
in extended enterprise resource planning
systems
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LEARNING OUTCOMES
4. Explain the benefits and risks associated
with enterprise resource planning
systems
5. Assess the future of enterprise resource
planning systems
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INTRODUCTION
• Enterprise resource planning –
integrates all departments and functions
throughout an organization into a single IT
system (or integrated set of IT systems)
so that employees can make
enterprisewide decisions by viewing
enterprisewide information on all business
operations
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Core and Extended ERP
Components
• Core ERP component – traditional
components included in most ERP systems and
they primarily focus on internal operations
• Extended ERP component – extra
components that meet the organizational needs
not covered by the core components and
primarily focus on external operations
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Core and Extended ERP
Components
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CORE ERP COMPONENTS
•
Three most common core ERP
components
1. Accounting and finance
2. Production and materials management
3. Human resource
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CORE ERP COMPONENTS
• Accounting and finance component –
manages accounting data and financial
processes within the enterprise with
functions such as general ledger,
accounts payable, accounts receivable,
budgeting, and asset management
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CORE ERP COMPONENTS
• Production and
materials
management
component – handles
the various aspects of
production planning and
execution such as
demand forecasting,
production scheduling,
job cost accounting,
and quality control
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CORE ERP COMPONENTS
• Human resource component – tracks
employee information including payroll, benefits,
compensation, performance assessment, and
assumes compliance with the legal
requirements of multiple jurisdictions and tax
authorities
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Extended ERP Components
• Extended ERP components include:
– Business intelligence
– Customer relationship management
– Supply chain management
– Ebusiness
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Extended ERP Components
• Ebusiness components include elogistics
and eprocurement
– Elogistics – manages the transportation and
storage of goods
– Eprocurement – the business-to-business
(B2B) purchase and sale of supplies and
services over the Internet
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ERP Benefits and Risks (Costs)
• Common ERP benefits
1. Integrate financial information
2. Integrate customer order information
3. Standardize and speed up manufacturing
processes
4. Reduce inventory
5. Standardize human resource information
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ERP Benefits and Risks (Costs)
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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
– Wireless technology – support a mobile
workforce
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CLOSING CASE ONE
PepsiAmericas’ Enterprises
•
PepsiAmericas generates $2.97 billion in
revenues yearly
•
The company implemented PeopleSoft’s ERP
solution to provide complete integration
between PepsiAmericas’ front-office and backoffice systems
•
PepsiAmericas also implemented
PeopleSoft’s supply chain management
component to automate its inventory
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CLOSING CASE ONE QUESTIONS
1. How have core ERP components helped
PepsiAmericas improve its business?
2. How have extended ERP components
helped PepsiAmericas improve its business?
3. Explain how future ERP systems will help
PepsiAmericas increase revenues
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CLOSING CASE ONE QUESTIONS
4. Assess the impact on PepsiAmericas’
business if it failed to implement the CRM
component of PeopleSoft’s ERP system
5. Review the different PeopleSoft components
in Figure B10.6. Which component would you
recommend PepsiAmericas implement if it
decides to purchase an additional PeopleSoft
component?
6. Compare PepsiAmericas experience with
other ERP cases you can find in most
business articles.
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CLOSING CASE TWO
Campus ERP
•
ERP implementations are difficult, even in very
top-down corporate environments
•
Getting them to work in colleges, which are
essentially a conglomeration of decentralized
fiefdoms, has been nearly impossible
•
Nonprofit organizations generally lack the
talent and financial resources to create and
manage a robust enterprise system
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CLOSING CASE TWO QUESTIONS
1.
How could core ERP components help improve
business operations at your college?
2.
How could extended ERP components help improve
business operations at your college?
3.
How can integrating SCM, CRM, and ERP help
improve business operations at your college?
4.
Review the different components in Figure B10.6.
Which component would you recommend your college
implement if it decided to purchase three
components?
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