Instructor’s Manual
Enterprise Resource Planning, 1/E
CHAPTER 1: A FOUNDATION FOR UNDERSTANDING ENTERPRISE RESOURCE PLANNING SYSTEMS
CHAPTER OBJECTIVES
1. Develop an understanding of how ERP systems can improve the effectiveness of information systems in organizations.
2. Understand the business benefits of enterprise resource planning (ERP) systems.
3. Understand the history and evolution of ERP.
CHAPTER OUTLINE
1. A Foundation for Understanding Enterprise Resource Planning Systems
a. The Emergence of Enterprise Resource Planning Systems
1. What is ERP?
2. The Evolution of ERP
3. The Integrated Systems Approach
b. Business Benefits of ERP
c. ERP Modules
d. ERP Design Alternatives
e. The Business Case for ERP
1.
…show more content…
2. Understand the role of process modeling in re-designing business processes.
CHAPTER OUTLINE
2. Re-engineering and Enterprise Resource Planning Systems
a. Background
b. Business Process Re-engineering
c. Process Modeling
d. Re-engineering at Reliable Finance Company
1. Background of the Business
2. Analysis of the Current Loan Application and Screening System
3. Current Problems
4. Objectives
e. Making Re-engineering Work
f. How Information Technology Facilitates ERP
1. Emergence of Client-Server Computing
2. Integrated Databases
g. The Emergence of Process Enterprises
1. ERP and Business Process Change
h. Summary
ANSWERS TO END-OF-CHAPTER QUESTIONS
Questions for Discussion:
1. Conduct a search to find a case in business re-engineering, similar to some of the cases mentioned in this chapter (e.g. Ford, Mutual Benefit Life, Hewlett Packard).
a. Was an ERP system associated with the business-process re-engineering?
Many ERP projects reported in the trade journals will include a description and discussion of the re-engineering of business processes which occurred when the ERP system was implemented. When an organization implements ERP, it is important to re-engineer existing business processes to conform with the “best practices” which are supported by the ERP software.
b. What business benefits
The aim of ERP is to increase operational efficiency, provide firm wide information to support decision making, enable rapid responses to customer requests for information or products and include analytical tools to evaluate overall organizational performance.
As I begin, I realize that I have started my experience by judging the person in the video and those who participate in Tai Chi. I picture such people as perhaps from East Asia, fit, with long hair and strange clothing. I realize that this is a prejudice I have developed and that I will hinder my experience. I dismiss my prejudice and realize that Tai Chi does not target any particular age group, gender, race, etc., as discussed in the article from this week's material. I simply focus on my breathing and applying the movements. I chose to make the most of my time and experience. I chose to not let prejudice interfere with my exercise
This article has fairly covered an overview of Enterprise information systems and suggested management solutions for the improvement of the technical and economic efficiencies of the business operations using ERP systems. This article is a helpful source for identifying the benefits and economic effectiveness of ERP systems implementation.
As a result of technological advancements, modern businesses seek new and improved methods of conducting their business processes. Systems have been designed to augment and manage core business functions such as production, accounting, procurement, and human resources. However, even with these systems in place, information is unreliable and inconsistent if they are on disparate platforms. Enterprise Resource Planning (ERP) software tackles this problem by integrating business processes into a centralized system.
This article discusses the role of business process modeling in combination with EA processes within the context of ERP projects. The examination of business process modeling within this setting is closely related to the Business Architecture aspect of EA modeling. The paper discusses the challenges of aligning Business Principles with the goals of the business and to reduce them by careful examination and consideration.
Getting an enterprise resource planning (ERP) application up and running is a tough enough job. Testing and validating it is another back-breaking job (Baer, T., 1997). Testing an ERP system before and after implementation plays a prominent role as it covers 50% of the projects budget. The complexity of the ERP system makes manual testing unsuitable for testing the system. It requires effective testing methodologies to track the bugs in the developed product therefore automation testing with special features is necessary. Automated testing cuts development time and up-front cost (Baer, T., 1997).
Company A being a leading value added distributor for Telecom hardware platform and services in APAC can benefit largely from the implementation of an ERP system. The ERP system will be their business management tool to assist them to use a system of applications which are integrated to manage their regular activities. The ERP system will incorporate all aspects of the entire organization including finance and accounting, human resources, manufacturing and supply chain management, project management, customer relationship management, data services and control of access ADDIN EN.CITE Wallace2001619(Wallace & Kremzar, 2001)6196196Wallace, T.F.Kremzar, M.H.ERP: making it happen : the implementers' guide to success with enterprise resource planning2001New YorkWiley9780471392019http://books.google.co.ke/books?id=Wa3vIn5DKc8C( HYPERLINK l "_ENREF_10" o "Wallace, 2001 #619" Wallace & Kremzar, 2001).
The most significant costs and risks a company can take are in re-aligning its core business processes and systems to allow for greater responsiveness to market opportunities and threats. Increasingly Enterprise Resource Planning (ERP) systems are being used as the unifying platform for all systems throughout an enterprise. As a result, the project, implementation, training and support plans often must be carefully devised and implemented across nontechnical and technical personnel to ensure the overall project's success. ERP systems especially are fulfilling a critical role in the managing of enterprises, taking on the tasks of managing accounting, financial reporting, supply chain management, logistics and ongoing quality management of products, processes and the role of people in adding value to finished goods and services (Ash, Burn, 2003). ERP has become the catalyst of entirely new approaches to using information, including the ongoing development of analytics and business intelligence (BI) applications that are giving executives greater visibility into their operations than ever before (Ash, Burn, 2003). In addition to analytics and BI, companies are aggressively pursuing Customer Relationship Management (CRM) systems that give them the ability to more effectively track and evaluate the performance of marketing and selling strategies. CRM systems are
Dezdar, S., & Ainin, S. (2011). The influence of organizational factors on successful ERP implementation. Management Decision, 49(6), 911-926.
Organizational Benefits: Enterprise Resource Planning (ERP) systems support the organizational growth by supporting its structural change, improving the learning of employees, empowering them and building a
There are two basic types of ERP research, implementation-oriented and performance-oriented. The first type studies what factors foster success in implementing ERP, while the second investigates factors in ERP that affect performance. Research has shown that companies that use ERP outperform those that do not in functional efficiency, productivity, stock market, and financial metrics. Interestingly, ERP is found to have a neutral or negative effect on customer satisfaction and operating expenses. More predictably, general performance dips
Enterprise Resource Planning is one of the biggest breakthroughs in the field of information technology and business. Integration of business processes through usage of centralized connected information systems gave the impression of solving the most crucial of all the business problems. They were deemed to assist the management in taking crucial decisions related to the sustainable future of the organization. At the same time, it was also expected that this system would result in elimination of human errors of omission and commission completely from the business environment. However, the corporate world saw a completely different picture of the things in the past few years. There were a number
Enterprise resource planning (ERP) systems attempt to combine data and processes in organizations. The data is centralized as a single database. This database functions as a hub that stores, shares, and circulates data from within the different organizational units and business functions. ERP systems are one of the most adopted information technology (IT) solutions in organizations. Besides the possible cost savings, one of the main drivers for an ERP adoption would be the technical and operation integration of business functions to complement the information stream with the material flow of goods or services. In order for the management and employees to utilize the use of the competitive capabilities of ERP systems, they
Selecting and implementing a new ERP solution has traditionally been a long and painful process that most CFOs would prefer never to do again. At the same time much has changed over the years, and things that were painful 10 years ago, may not have the same relevance today. We are in the midst of a technology change to configurable and cloud based solutions, and away from customized on-premise ERP.
This paper will discuss will discuss how to be successful and avoid failure when implementing an ERP system. I will define ERP, present the significant benefits of implementation, and identify the missteps (which may lead to failure)/steps to success in implementing an ERP system.