tightly integrated software used to automate back-office functions in a single management information system
“one source of truth"
stores data so that all departments of a business can share information
All financial transactions flow to the general ledger (if we change something in the business, we need to change it in the system as well!)
Procure to pay
Order to cash
Plan to produce
Field to fork
Hire to retire
software may not support all business functions
Risks in vendor lock-in, switching cost
Vendors continually updating software, companies need to stay current for support
A merger of Western Digital, SanDisk, and HGST was a big challenge for the company.
After the merger, Western Digital wanted to centralize ERP so that all three companies could work together.
TTI Inc., a specialty distributor of electronic components based, needed to go beyond replacing its legacy system.
“This technology gives us the guardrails to do things in a standardized, simplified way around the world. “
That foundational process, with the help of technology, allows us to look globally, act locally.
management of the flow of goods and services
Includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
plan
source, make, deliver
return
to purchase software that can handle each of these core business functions like accounting, sales, inventory and manufacturing from different vendors. -> then integrate with a central database (ERP)
to buy all the modules you need from the ERP vendor and avoid integrations since the applications are already designed to work together. (best option for the large majority of businesses thanks to its simplicity)
access data from everywhere
Information is always up-to-date
Business decisions based on the same data
system cost
need for training
data conversion cost
complexity
maintenance
doesn’t solve process and policy issues
planning
sourcing
making
delivering
returning
Keeps Businesses Competitive & Paces with Technology
Creates Productive Environments
Proactive Strategy (leads to creative thinking)
Satisfies Customers While Reducing Operating Costs