Week 12

Chapter 10
Enterprise Resource Planning and Collaboration Systems

Enterprise resource Planning (ERP) includes all departments and functions throughout an organization into a single IT system. This makes it easier for all employees to make decisions by viewing enterprisewide information on all business operations. ERP systems provide companies with consistency, and a method for effectively planning and controlling of all the recourses required to take, make, ship, and account for customer orders in a manufacturing, distribution, or service organization. Enterprise is the key word in ERP.

Core ERP are the traditional components included in most ERP systems. They primarily focus is on internal operations. Extended ERP components also focus on external operations. The four most common extended ERP components are; business intelligence, customer relationships management (CRM), supplies chain management and E-business.

It takes 8 to 10 months on average for a company to see the advantages or risks due to the ERP. ERP systems are const effective for most companies. However it cost much to implement the system. Considering the future, ERP places new demands on support and delivery information technology, in addition to the way business processes have to be designed, implemented, monitors, and maintained. The Internet and the adoption of the Internet is one of the single most important forces that reshape ERP’s architecture and functionality.