Chapter 12: Enterprise Resource Planning (ERP)

Vocabulary flashcards covering core and extended ERP components, implementation costs, and deployment models based on Chapter 12 lecture notes.

Enterprise Resource Planning (ERP)

A system that integrates all departments and functions throughout an organization into a single IT system so that employees can make enterprise-wide decisions by viewing enterprise-wide information on all business operations.

Core ERP component

Traditional components included in most ERP systems that primarily focus on internal operations.

Accounting and Finance Component

A core ERP component that manages accounting data and financial procedures within the enterprise through functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management.

Production and Materials Management Component

A core ERP component that handles aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control.

Human Resources Component

A core ERP component that tracks employee information including payroll, benefits, compensation, and performance assessment, while assuming compliance with legal requirements of multiple jurisdictions and tax authorities.

Extended ERP component

Extra components that meet organizational needs not covered by core components and primarily focus on external operations, such as Business Intelligence, CRM, SCM, and Ebusiness.

Ebusiness Components

Extended ERP components that include Elogistics and Eprocurement.

ERP Implementation Costs

Expenses required for purchasing and implementing ERP systems, which include software, consulting fees, process rework, customization, integration, and testing/training.

On-Premise ERP

An ERP implementation that includes a server at a physical location using an internal network for internal access and firewalls for remote users' access, requiring full ownership of hardware and software.

Legacy System

An old system that is fast approaching or beyond the end of its useful life within an organization.

Cloud ERP

An ERP implementation that offers new ways to store, access, process, and analyze information and connect people and resources from any location with an internet connection, where all hardware and software are owned and remotely hosted by a Cloud Vendor.

Hybrid ERP

An ERP implementation that splits ERP functions between an on-premise ERP system and one or more functions handled as Software as a Service in the cloud.