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Enterprise Applications, Business Process Integrat

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Business Processes
Hammer and Champy (1993):
Functional Business Processes
Manufacturing and production: Assembling product, checking quality, producing bills of materials
Cross-Functional Business Processes
Transcend boundary between sales, marketing, manufacturing, and research and development
Business process landscape
An organization's interconnected business processes
Information system landscape
An organization's set of information systems
Tasks and Challenges
Integration of business processes
Enterprise Applications: Types
Enterprise systems ->ERP
Enterprise Systems (5-15)
Provides single information system
Drawbacks of Dis-integrated IS
Errors from keying in the same data more than once (e.g. lost orders)
The Approach of ERP Software
Integration of a company's operations by ...
Integration through a Central Database
At the heart of all ERP systems is a central database
Planning the Resources of an Enterprise with ERP
ERP is a way to integrate the data and processes of an organization into one single system with modules that support core business areas such as manufacturing, distribution, financials and human resources
Difference Between MRP (I), MRPII, ERP, ERPII
MRP (1960): is simply about ensuring the materials are available to manufacture a specific part in a specific volume
Why did it take so long?
Using integrated software to manage all functional areas of a business seems obvious today, but it was not technically feasible until the 1990s
Functional Business Model (5-23)
Developed by Alfred P. Sloan in the 1930s
Business Process Model (5-24)
flow of information and management activity are "horizontal"—across functions
Nature of ERP Software
How did the stone-age of business computing look like?
Statements about ERP Software
Enterprise resource planning (ERP) systems
Business Functions Potentially Supported by ERP (5-27/28)
The Nature of ERP Implementation Projects
a mix of the following disciplines:
Choosing Consultants & Vendors
ERP systems are so complex, one person cannot fully understand a single system
Implementation Challenges
A number of companies in the 1990s experienced lengthy and challenging implementations
Failed ERP Projects - Reasons
Some executives naively hope ERP systems will cure fundamental business problems
ERP System Costs
Depends on the size and complexity of the software
Is ERP for everyone?
A business must analyze its own business strategy,
Cost & Implementation:
Drawbacks of ERP Systems (5-36)