Doermer School of Business

Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) is an information system that integrates all manufacturing or services and related applications for an entire enterprise.  The need to collect, analyze, and respond to knowledge about customers is of paramount importance today.  Because if executed properly, knowledge management can become the most critical competitive advantage, a company has.

This process of:

  • Collecting the data,
  • Storing it so that it can be analyzed, and
  • Making decisions based on the knowledge falls under a general family of processes called ERP.

ERP defines an umbrella under which are found a collection of functions including data warehousing, data mining (DM), knowledge management (KM), and customer relationship management (CRM).  ERP defines the process by which corporate data is machined into a finely honed competitive advantage.

ERP also involves the following categories:

  • CRM Customer Relations Management
  • MRP moving to MRP II
  • SFA Sales Force Automation
  • SCM Supply Chain Management
  • PRM  Partner Relation Management
  • EAI Enterprise Relations Management
  • BPR Business Process Reengineering

Today (ERP) has extended beyond the borders of the enterprise and allows collaboration with the entire supplier. SAP is the worlds largest business software in the business community Most of the larger companies and Fortune 500 companies use SAP

The SAP module encompasses the following areas::

  • Planning
  • Transaction processing
  • Accounting
  • Finance
  • Logistics
  • Inventory management
  • Sales order fulfillment
  • Human resources operations and tracking
  • Customer relationship management
  • Manufacturing
  • Sales and Distribution

An example of an ERP program is SAP software, which we will be used in the classroom setting:

  • 70% of the Fortune 500 companies of the World use SAP
  • 90% of the companies with the largest market caps in the world use SAP
  • 80% of the most profitable companies in the world use SAP
  • SAP is recognized a the leader in providing collaborative business solutions

Additional topics that will be covered is in the following areas of software development

  • (SOA) Service Oriented Architecture
  • SOAP (Simple Object Access Protocol)
  • Client Server Networks

Enterprise Resource Plan is software that integrates departments and functions across a company into one computer system. ERP runs off a single database, enabling various departments to share information and communicate with each other. ERP systems comprise function-specific modules designed to interact with the other modules, e.g. Accounts Receivable, Accounts Payable, Purchasing, etc.

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