CHAPTER 1: Introduction to Enterprise Systems for Management  

 

CHAPTER OBJECTIVES:

 

• Understand the information systems evolution and its historical role in organizations leading to systems integration and eventually Enterprise Resource Planning (ERP).
• Learn about ERP systems and their evolution, components and architecture. Understand the benefits and drawbacks of implementing ERP systems and how they can help an organization improve its efficiency and worker productivity.
• Have an overview of the implementation process (e.g., the ERP life cycle, business process reengineering, project management, and change management). Understand the role of staff, vendors, consultants, and the organization in making the ERP implementation process successful.
• Comprehend the ethical, global and security challenges while implementing an ERP system, as well as get an overview of ERP vendors and industry trends.

 

CHAPTER OUTLINE:

 

1. Opening Case: Hershey’s Enterprise 21 Project
2. Preview
   1. Enterprise Systems in Organizations
   2. Information Silos and Systems Integration
   3. Enterprise Resource Planning  (ERP) Systems
3. Enterprise Resource Planning Systems
   1. What is an ERP?
   2. Evolution of ERP
   3. Business Process and ERP
   4. ERP System Components
   5. ERP Architecture
   6. e-Business and ERP
   7. Benefits and Limitations of ERP
4. ERP Implementation
   1. Business Process Management
   2. ERP Life Cycle
   3. ERP Implementation Strategies
   4. Software and Vendor Selection
   5. Operations and Post-Implementation
5. People and Organization
   1. Project Management
   2. Role of Consultants
   3. Change Management
   4. Business Process Reengineering
   5. Global, Ethical and Security Management
6. ERP Vendors
   1. Key Vendors
   2. Software Extensions and Trends
7. Implications for Management
8. Summary
9. Exercises
10. Review Questions
11. Discussion Questions
12. Real World Case: Rolls Royce’s ERP Implementation

 

CHAPTER OVERVIEW

 
       This chapter provides a quick overview of the Enterprise Resource Planning (ERP) implementation process and the various topics covered in the remaining chapters of the book. It begins with an overview of the information systems field and defines ERP systems a few different ways, explaining their origin and evolution, and describes important components and basic implementation options. In addition, it discusses the evolution and role of ERP in the organizations and provides reasons for the popularity of ERP systems today.
       ERP systems are comprehensive applications that support and connect all aspects of an organization’s business processes.  When discussing business processes, one means such departments as Accounting, Human Resources, Marketing, Purchasing, Manufacturing, etc.  ERP systems appeared in the 1990s as a way to provide accessibility, flexibility and consistency across all the major business functions, unlike its predecessors.  Organizations that use ERP systems have a better chance of sustaining competitive advantage in an ever-changing business environment.
The evolution of ERP started during the early 1990s after decades of using silo-based information systems within business organizations.  ERP is a software-based system that is responsible for making information, reporting and functions widely available and centrally located within business organizations.  In addition, the chapter continues to explain that ERP implementation is not as easy as selecting and installing packaged software.  The opening Hershey case shows how a business went about the process the wrong way, and then corrected their mistakes the second time around.  Hershey went live with their ERP implementation via the “Big Bang” method. Their initial problem was trying to implement too much, too fast.  The case provides a good example of what to avoid.