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Understanding ERP Systems: Key Features and Considerations for Businesses

This article explores the significance of Enterprise Resource Planning (ERP) systems in modern business operations. Defined as a "complete solution," ERP integrates essential processes such as customer order processing, inventory management, human resources, and finance into a single framework. The text highlights the system's capabilities, including multi-site support, versatility across industries, and essential evaluation criteria like flexibility, scalability, and user-friendliness. Additionally, it delves into considerations for choosing the right ERP software, such as customization needs and total costs.

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Understanding ERP Systems: Key Features and Considerations for Businesses

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  1. ERP and Beyond Enterprise Resource Planning: Source: Julie S. David, Arizona State University

  2. ERP Systems -What’s the Big Deal? • Definition? • “Complete solution” • Enterprise-wide (although somewhat focused on manufacturing) • Multi-site support • Transactions flow through business processes • Integrated database • Client/server • Multinational support

  3. ERP: An Integrated Solution Shipping Customer Order Processing Human Resources Ware- house Inventory Management Manufacturing Equip. Receiving Procurement Financial System

  4. There’s More to Consider! • Configurable vs. changeable • Versatility - multiple manufacturing procedures • Industry tailored • Oracle CPG (Consumer packaged goods) • SAP Retail • Workflow Capabilities • EDI • Web-enabled

  5. Evaluation Criteria * • Security • Upgrade availability • Customization • Allowed? • Needed? • Local support • Reference Sites • Total Cost • Functional fit • Tight integration • Flexibility • Scalability • User friendliness • Implementation time • Database technology *Largely from www.expressindia.com/newadds/bsl/advant.htm

  6. Who are the Players?

  7. Functionality:Architecture Source: Hecht, B. (1997) Choose the right ERP software. Datamation.(March 1997).

  8. Manufacturing: Accounting Source: Hecht, B. (1997) Choose the right ERP software. Datamation.(March 1997).

  9. Is ERP Everything?

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