ERP and Systems Integration

Enterprise Resource Planning (ERP) systems are integrated, multi-module application software packages designed to serve and support several business functions across an organization.

ERP systems are typically commercial software packages that facilitate collection and integration of information related to various areas of an organization.

ERP systems enable the organization to standardize and improve its business processes to implement best practices for its industry.

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ERPs Role in Logical Integration

ERP systems require organizations to focus on business process rather than on functions.

ERP systems come with built-in processes for a wide variety of common business functions.

An ERP system implements best practices via specific built-in steps for processing a customer order in terms of:

orderentry.

routing through departments.

communication of output to various parties.

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ERPs Role in Physical Integration

Before installing the ERP system, an organization may have to upgrade or install middleware or get rid of their legacy systems hardware and software.

Integration is also required at the Data level, Client level, and at the Application level.

A good ERP implementation improves operational efficiency with better business processes that focuses on organizational goals rather than on individual departmental goals.

Improved efficiency with a paperless flow and electronic data interchange (EDI) or business-to-business (B2B) commerce environment with partners.

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LESSON1: INTRODUCTION TO ENTERPRISE SYSTEMS MANAGEMENT Demonstrating Knowledge and Understanding of the concepts on Enterprise Systems Management At the end of this activity, students will be able to: 1. Understand the information systems evolution and its historical role in the organization leading to systems integration and Enterprise Resource Planning (ERP). 2. Learn about ERP systems and evolution, components, and architecture; understand the benefits and drawbacks of implementing ERP systems and how they can help an organization improve its efficiency and worker productivity. 3. Gain an overview of the implementation process (e.g., the ERP life cycle, business process reengineering project management, and change management). Understand the role of people, vendors, consultants, and the organization in making the ERP implementation process successful. 4. Comprehend the ethical, global, and security challenges while implementing an ERP system, and look at the ERP vendors and industry trends. Direction: Answer comprehensively the following questions below: 1. How is the role of ERP system different from traditional TPS, MIS, DSS, and others? Can an ERP system support all levels of management? 2. Discuss the evolution of information systems in an organization. How can the use of ERP systems remove information or functional silos in organizations? 3. Among all the ERP components listed in the chapter, which component is most critical in the implementation process and why? 4. Discuss the role of ERP in organizations. Are ERP tools used for business process reengineering (BPR) or does BPR occur due to ERP implementation