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02-ERP-S - Overview of Enterprise Systems Ronald S Lau Ph.D...

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Overview of Enterprise Systems Ronald S. Lau, Ph.D. HKUST ISOM
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Learning Objectives Outline the historical development of ERP systems List several benefits and limitations of ERP Describe the overall ERP market and list the major ERP vendors Discuss the driving factors for SMEs to implement ERP systems 2
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Presentation Outline Integrated business solutions Historical development of ERP systems Benefits and limitations of ERP systems Enterprise systems vs. functional systems ERP markets and latest development 3
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The Rise of ERP Systems Enterprise resource planning (ERP) systems What are the driving factors for adopting ERP systems? Functions and characteristics An off-the-shelf, highly configurable, packaged business application software A collection of integrated business applications including financial accounting, human resources, and others such as sales, manufacturing, and logistics, etc. Using standardized business processes (industry best practices) that automate and integrate routine business operations A common database allows sharing of data and results among all functional areas Capable of satisfying most of the overall business application requirements in a company and connecting with other information systems outside the company 4
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Historical Development of ERP Systems ERP systems require complex hardware and software which was not available until the 1990s 1960s: Data processing with mainframe computer 1970s: Relational database 1980s: Business application software for PCs 1990s: Network computing, local area networks (LAN), Internet, client-server architecture 2000s: Web services, service oriented architecture (SOA) Development of ERP ____________________________ ____________________________ 5
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From MRP to ERP MRP Material Requirements Planning: A computerized program for manufacturing companies to determine the requirements and timing of each material. Requires the use of data from bill of materials, inventory, and master production schedule, etc.
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