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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
   Suppose a customer’s computer is
    damaged during shipment.
     It’sa 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
How can the computer company
provide customer satisfaction?
   What information do        Information systems
    the people performing       can be designed so
    the Sales function          that accurate and
    need?                       timely data are
   What information do         shared between
    the people performing       functional areas –
    the Manufacturing           integrated information
    function need?              systems—
Functional Areas and Business
Processes of a Very Small
   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
Functional Area Information
 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