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Upon completion of this lesson, the successful participant will be able to: Identify the factors that led to the development of Enterprise Resource Planning (ERP) systems, describe the distinguishing modular characteristics of ERP software, discuss the pros and cons of implementing an ERP system, summarize ongoing developments in ERP. | Concepts in Enterprise Resource Planning 2nd Edition Chapter 2 The Development of Enterprise Resource Planning Systems Chapter Objectives Identify the factors that led to the development of Enterprise Resource Planning (ERP) systems Describe the distinguishing modular characteristics of ERP software Discuss the pros and cons of implementing an ERP system Summarize ongoing developments in ERP Introduction Increasing the efficiency of information systems can result in more efficient business processes, making a company more competitive Integrating information systems across functional areas is a relatively recent phenomenon Lack of integration can lead to costly inefficiencies Errors from keying in the same data more than once Lack of timely data due to periodic updating between systems Problems with data being defined differently in different systems Introduction ERP systems can integrate a company’s operations by providing a company-wide computing environment that: Includes a single database shared by all functions Can deliver consistent data to all business functions in real-time ERP systems can dramatically reduce costs and increase operational efficiency With ERP, IBM Storage Systems division Reprices inventory in 5 minutes instead of 5 days Ships a replacement part in 3 days instead of 22 Checks customer credit in 3 seconds instead of 20 minutes Changed “real time” to “real-time” Evolution of Information Systems Using integrated software to manage all functional areas of a business seems obvious today, but it was not technically feasible until the 1990s Three factors contributed to the development of ERP systems: Advancement of computer hardware and software Computing power, memory and communications Development of a vision of integrated information systems Reengineering of companies to shift from a functional focus to a managerial focus Added colon after “Three factors contributed to the ” Computer Hardware and Software Computer hardware . | Concepts in Enterprise Resource Planning 2nd Edition Chapter 2 The Development of Enterprise Resource Planning Systems Chapter Objectives Identify the factors that led to the development of Enterprise Resource Planning (ERP) systems Describe the distinguishing modular characteristics of ERP software Discuss the pros and cons of implementing an ERP system Summarize ongoing developments in ERP Introduction Increasing the efficiency of information systems can result in more efficient business processes, making a company more competitive Integrating information systems across functional areas is a relatively recent phenomenon Lack of integration can lead to costly inefficiencies Errors from keying in the same data more than once Lack of timely data due to periodic updating between systems Problems with data being defined differently in different systems Introduction ERP systems can integrate a company’s operations by providing a company-wide computing environment that: Includes a
