E-Commerce & ERP
INFO3232
3rd Year 2nd Sem
• Enterprise Resource Planning (ERP): Features,
capabilities and Overview of Commercial Software,
reengineering work processes for IT applications,
Business Modules: Sales and Marketing with a special
focus on Customer Relationship Management (CRM),
Accounting and Finance, Production and Materials
Management with a special focus on SCM & SRM.
ERP-Present and Future: Enterprise Application
Integration (EAI), ERP and E-Business, ERP and Internet,
Future Directions in ERP.
• ERP----Enterprise Resource Planning
• An enterprise is a group of people with a
common goal, which has certain resources at
its disposal to achieve this goal.
Enterprise acts as a single entity.
What is Enterprise Resource Planning (ERP)?
• "ERP comprises of a commercial software
package that promises the
seamless integration of all the information
flowing through the company -
financial, accounting, human resources,
supply chain and customer
information.“ [T.J. Davenport, Harvard
Business Review, July-Aug., 1998]
• Enterprise-wide system integrates the business
functions and processes of an organization.
• Integration of business functions into one seamless
application.
• Produce, share and access information in Real-time
environment.
• Helps the organization to run smoothly
• Usually runs on a RDBMS
• Replaces Countless Departmental and Workgroup
Information Systems
ERP is not a name of software.
It is a category of business-management
software.
Typically a suite of integrated applications .
Why ERP
Objectives of ERP Implementation
a) Business drivers:
To streamline business processes.
To get an integrated view of data.
To ensure better monitoring of KPI’s.
b) Technology driver:
To achieve a single technology platform.
ERP - Benefits
• Eliminates the duplication and redundancy in
data.
• Faster and cheaper.
• Delivers quality information to produce a quality
enterprise.
• Satisfying Partners/Customers.
• Reducing required manpower.
• Increases the return on investment made on IT
implementations.
Disadvantages of ERP
• ERP implementation is very difficult.
There is a change in the way business is
done. From a business function
approach to a process approach.
•ERP systems are very expensive to
implement. Can take years and cost 10’s
of millions of dollars.
Disadvantages of ERP
• It takes time to realize the benefits of an ERP
system.
• Forces people to change and change =
resistance:
– Share information that was once closely
guarded (i.e., “their information”).
– Make decisions they were never required
to make.
– Do things they were never required to do
before
Disadvantages of ERP
• ERP systems are strategic solutions. In
essence some companies are betting
their future on a successful ERP
implementation.
• If the implementation fails, the
consequences to the company can be
terrible.
• Companies have gone out of business as
a result of a failed ERP implementation
effort.
Motivation for Implementing ERP
Achieving and maintaining competitive
advantage management requires better
information management
• Information Quality
• Information Reliability
• Information Access
• Information Sharing
