AIS 19: Enterprise Resource
Planning and Management
2nd Semester | A.Y. 2025-2026
integrated data, applications, and resources from
☆ Chapter 1 - Introduction to Enterprise across the organization.
Systems for Management
To compete effectively, organizations have to be
customer focused.
CHAPTER 1: This requires cross-functional integration
INTRODUCTION TO ENTERPRISE SYSTEMS among the accounting, marketing and
FOR MANAGEMENT other departments of the organization.
ERP systems are very different from conventional ENTERPRISE RESOURCE PLANNING (ERP)
packaged software, such as Microsoft Office and SYSTEMS
others.
Enterprise Resource Planning (ERP)
There are no shortcuts when it comes to Systems
implementing an enterprise system.
➔ are the first generation of enterprise
ENTERPRISE SYSTEMS IN ORGANIZATIONS systems meant to integrate data and
support all the major functions of
Business organizations have become very organizations.
complex and their business needs can no longer ➔ ERP systems integrate various functional
be supported by one single information system. aspects of the organization as well as
systems within the organization of its
Information Systems are a critical component of partners and suppliers.
a successful organization today. ➔ The goal of an ERP system is to make the
information flow dynamic and immediate,
Management therefore, increasing its usefulness and
value.
➔ is generally categorized into three levels: ➔ Another goal of ERP is to integrate
o Strategic departments and functions across an
o Mid-Management organization into a single infrastructure
o Operational that serves the needs of each department.
➔ ERP systems replace an assortment of
Information Systems provide a high level of systems that typically existed in
computer automation to support business organizations. (Accounting, HR, Materials
functions such as: Planning, Transaction Processing, etc.).
o Accounting ➔ ERP solves the critical problem of
o Human Resource Management integrating information from different
o Marketing sources and makes it available in real-
o Finance time.
o Customer Service
o Operations
EVOLUTION OF ERP
INFORMATION SILOS AND SYSTEMS
INTEGRATION
Over time, Information Systems create a BUSINESS PROCESSES AND ERP
hodgepodge of independent nonintegrated
systems ultimately creating bottlenecks and A crucial role of ERP in business is to better
interfering with productivity. position the organization to change its business
Organizations need to be agile and flexible and processes.
will require their information systems to have
LECTURE # 1 | AIS 19 – INTRODUCTION TO ENTERPRISE SYSTEMS FOR MANAGEMENT
ERP software have hundreds of business E-Business ERP
processes built into the logic of the system which
may or may not agree with current processes of Focuses on linking a Focuses on integrating
an organization. business with its the internal functional
When implementing an ERP system, external partners and silos of the organization
organizations have two choices: stakeholders into an enterprise
o Change business processes to match the application
software functionality.
o Modify the ERP software to match the Disruptive
business processes. technology
-Totally transformed Adaptive technology
ERP SYSTEMS COMPONENTS the way a business - Merged the early data
operates in terms of processing and
★ Hardware –Servers and peripherals buying and selling, integration efforts within
★ Software Process - Operating customer service, and an organization
systems and database
★ Information - Organizational data relationships with
from internal and external sources suppliers
★ Process – Business processes, Early focus of e-
procedures, and policies Focus of ERP systems
★ People – End users and IT staff Business was on
was mainly on data
communication (e-
sharing, systems
ERP COMPONENTS mail), collaboration
integration, business
(calendaring,
process change, and
★ Server (Hardware) scheduling, group
improving decision
★ Software support), marketing
★ Company Processes making through the
and promotion (Web
★ Database access of data from a
★ People sites), and E-
single source (Back office
commerce (Front
functions)
office functions)
ERP COMPONENTS INTEGRATION
★ User
★ ERP
★ Database
★ Operating System Components
★ Hardware Infrastructure
ERP ARCHITECTURE
ERP Architecture
➔ The architecture of an ERP system
influences the cost, maintenance, and the SYSTEM BENEFITS OF AN ERP SYSTEM
use of the system.
➔ A flexible architecture is best - it allows for Integration of data and applications across
scalability as needs change and grow. functional areas (i.e., data can be entered
➔ A system's architecture is a blueprint of once and used by all applications; thus
the actual ERP system and helps the improving accuracy and quality of the
implementation team build the ERP data).
system. Improvements in maintenance and
➔ If purchased, ERP architecture is often support as IT staff is centralized.
driven by the vendor but other IT Consistency of the user interface across
architectures are driven by organizational various applications means less employee
strategy and business processes. training, better productivity, and cross-
functional job movements.
E-BUSINESS AND ERP Security of data and applications is
enhanced due to better controls and
centralization of hardware.
SYSTEM LIMITATIONS OF AN ERP SYSTEM
Complexity of installing, configuring, and
maintaining the system increases, thus
requiring specialized IT staff, hardware,
and network facilities.
LECTURE # 1 | AIS 19 – INTRODUCTION TO ENTERPRISE SYSTEMS FOR MANAGEMENT
Consolidation of IT hardware, software, ERP system implementations are very risky, and
and people resources can be using a well-defined project plan with a proven
cumbersome and difficult to attain. methodology will assist in managing those risks.
Data conversion and transformation from
an old system to a new one can be a There must be a strong well-communicated need
tedious and complex process. to make the change from the existing information
Retraining of IT staff and end users of the systems/applications to an ERP system.
new system can produce resistance and
reduce productivity.
ERP IMPLEMENTATION METHODOLOGY
BUSINESS BENEFITS OF AN ERP SYSTEM
Increasing agility of the organization in
terms of responding to changes in
environment for growth and maintaining
market share.
Information sharing helps collaboration SOFTWARE AND VENDOR SELECTION
between units.
Linking and exchanging information in It is best for an organization that does not have
real-time with supply-chain partners the experience in developing ERP systems to
improves efficiency. purchase one on the market.
Better customer service due to quicker
information flow across departments. Before selecting a vendor, the organization must
Efficiency of business processes are carefully evaluate its current and future needs in
enhanced due to the re-engineering of enterprise management systems.
business processes.
Retraining of all employees with the new Review the organization's existing hardware,
system can be costly and time consuming. network, and software infrastructure, and the
Change of business roles and department resources available for the implementation.
boundaries can create upheaval and
resistance to the new system.
VENDOR EVALUATION
o Business functions or modules supported
by their software.
o Features and integration capabilities of the
software.
o Financial viability of the vendor as well as
length of time they have been in business.
ERP IMPLEMENTATION (BUSINESS PROCESS o Licensing and upgrade policies.
MANAGEMENT) o Customer service and help desk support.
o Total cost of ownership.
Business Process Management o IT infrastructure requirements.
o Third-party software integration.
➔ is the understanding, visibility, and control o Legacy systems support and integration.
of business processes. o Consulting and training services.
➔ BPM has a prescribed methodology that o Future goals and plans for the short and
should be followed to help document long term.
business processes and understand their
use throughout the business. OPERATIONS AND POST-IMPLEMENTATION
➔ Improved business processes may result
in:
o Improved customer satisfaction. Going Live (“Go-live”)
o Reductions in cost.
o Increased productivity by allocating ➔ is one of the most critical points in a
resources to more value-added project's success.
activities. ➔ It is vital to focus the efforts of all project
teams to ensure that task and activities
are completed before going live.
ERP IMPLEMENTATION (ERP LIFE CYCLE) - This allows project management to
address any outstanding issues that
The key to a successful implementation is to use may jeopardize the Go-live date.
a proven methodology, take it one step at a time, - This involves a readiness process that
and begin with the planning and understanding needs to include as many team
the ERP life cycle. members and appropriate users and
managers possible.
LECTURE # 1 | AIS 19 – INTRODUCTION TO ENTERPRISE SYSTEMS FOR MANAGEMENT
ERP VENDORS
FIVE AREAS OF STABILIZATION ARE
IMPORTANT: SAP
o Training for end-users. ➔ SAP is the recognized global leader
o Reactive support (i.e., help desk for among ERP vendors with over 12 million
troubleshooting). users. Its solutions are for all types of
o Auditing support to make sure data quality industries and for every major market.
is not compromised by new system.
o Data fix to resolve data migration and Oracle/Peoplesoft
errors revealed by audits.
o New features and functionalities to ➔ As the second largest ERP vendor, Oracle
support the evolving needs of the provides solutions divided by industry
organization. category and promises longterm support
for customers of PeopleSoft- (acquired in
PEOPLE AND ORGANIZATION 2004).
Project Management
➔ For an ERP system to be implemented Infor
successfully, project management must
provide strong leadership, a clear and
understood implementation plan, and ➔ The world's third largest provider of
close monitoring of the budget. enterprise software. It delivers integrated
enterprise solutions in supply chain,
Consultants customer relationship and suppliers
management.
➔ It is often the case for organizations
without much ERP implementation Microsoft Dynamics
experience to use implementation
partners such as consultants. ➔ Formerly Microsoft Business Solutions or
Change Management Great Plains,
➔ Microsoft Dynamics is a comprehensive
business management solution built on
➔ This helps prepare for changes to how the Microsoft platform.
business is done. In implementing new ➔ Microsoft Dynamics integrates finances,
systems, communicating, preparing, and e-commerce, supply chain, manufacturing,
setting expectations is as important as project accounting, field service, customer
providing training and support. relationships, and human resources.
Business Process Re-engineering
Lawson
➔ Business processes will need to be
changed, adjusted, or adapted to the new ➔ Industry-tailored software solutions that
system to use the functionality of an ERP include enterprise performance
system fully. management, distribution, financials,
human resources, procurement, and retail
Global, Ethical and Security operations.
Management
SSA Global
➔ Outsourcing overseas, ethical issues, and
problems with system security have also ➔ Acquired Baan in [Link] claim to offer
attracted a lot of attention in ERP solutions that accomplish specific goals in
implementation. shorter time frames and are more efficient
with time.
Epicor
➔ This company provides enterprise
software solutions for midmarket
companies around the world. Claims to
have solutions to a variety of needs,
whether a customer is looking for a
complete end-to-end enterprise software
solution or a specific application.
LECTURE # 1 | AIS 19 – INTRODUCTION TO ENTERPRISE SYSTEMS FOR MANAGEMENT
SOFTWARE EXTENSIONS AND TRENDS
As e-Business firms started growing
bigger with advanced needs in HR,
accounting, and warehousing, non-ERP
vendors were unable to support their
requirements.
ERP vendors were starting to expand their
functionality to the Internet and e-
Business.
Intense competition and fluctuating sales
have forced the ERP vendors to expand
functionality to add value.
The saturation of the demand in big
business and the lucrative nature of the
small and midsized business markets
have led vendors like SAP and Oracle to
enter the small business market.
SOA implementation will continue to grow
as a factor in ERP purchase decisions
because vendors are using creative
marketing around product strategies
versus buying what is currently available.
Another shift is toward recurring and
variable revenue models - Maintenance
charges driving industry growth.
The other major revenue shift is toward
software as a service or hosted
subscription-based applications.
Social networking and open-source
software solutions are also poised for
significant growth.
IMPLICATIONS FOR MANAGEMENT <>
ERP systems implementation is a
complex organizational activity.
- Important to evaluate and learn from
the successes and failures.
- Managing risk is all about keeping
project focus and clear
communications throughout the
organization.
ERP systems implementation requires
strong project management oversight.
ERP systems provide improved and
added functionality for an organization.
ERP systems are set to proliferate
globally.