HRM 3400 Lecture Notes - Lecture 29: Enterprise Resource Planning, Fortune 1000, Management System
23 May 2018
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HRM 3400 Lecture 29 Notes – Advantages of ERP and An Overview of Enterprise Resource
Planning
Introduction
• Examples of enterprise systems include enterprise resource planning systems that
support supply-chain processes, such as order processing, inventory management, and
purchasing, and customer relationship management systems that support sales,
marketing, and customer service-related processes.
• Businesses rely on such systems to perform many of their daily activities in areas such as
product supply, distribution, sales, marketing, human resources, manufacturing,
accounting, and taxation so that work is performed quickly, while avoiding waste and
mistakes.
• Without such systems, recording and processing business transactions would consume
huge amouts of a orgaizatio’s resources.
• This collection of processed transactions also forms a storehouse of data invaluable to
decision making.
• The ultimate goal is to satisfy customers and provide a competitive advantage by
reducing costs and improving service.
• ERP systems evolved from materials requirement planning systems (MRP) that tied
together the production planning, inventory control, and purchasing business functions
for manufacturing organizations.
• Many organizations recognized that their legacy transaction processing systems lacked
the integration needed to coordinate activities and share valuable information across all
the business functions of the firm.
• As a result, costs were higher and customer service poorer than desired.
• As a result, firms are scrapping large parts of their existing information systems and
converting to new ERP systems.
• Large organizations, specifically members of the Fortune 1000, were the first to take on
the challenge of implementing ERP.
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