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Enterprise Resource Planning (ERP) systems

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CONTENTS OF THE COURSE Introduction (What is ERP-system and for what purpose?) Evolution of management and enterprise systems Business process management ERP solutions in the worldwide market ERP implementation project management

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REFERENCES Ellen F. Monk and Bret J. Wagner. (2009). Concepts in Enterprise Resource Planning. – Boston: Course Technology Cengage Learning. O’Leary, D. (2000). Enterprise Resource Planning Systems. Cambridge, U.K.: Cambridge University Press. Liaquat Hossain, Mohammad A. Rashid, Jon David Patrick. (2002). Enterprise Resource Planning: Global Opportunities and Challenges. London, Hershey: Idea Group Publishing. Graeme Shanks, Peter B. Seddon and Leslie P. Willcocks. (2003). Second-Wave Enterprise Resource Planning Systems: Implementing for Effectiveness. – U.K.: Cambridge University Press.

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REFERENCES Dimitris N . Chorafas. (2001). Integrating ERP, CRM, Supply Chain Management, and Smart Materials. Auerbach Publications. Mathias Weske. (2012). Business Process Management – Concepts, Languages, Architectures, 2nd Edition. Berlin, Heidelberg: Springer. Hammer,M., Champy.J. (1993). Reengineering the Corporation: A Manifesto for Business Revolution. Harper Collins, London. Scheer A.-W. (1992). Architecture of Integrated Information Systems. Berlin, Springer. Scheer A.-W. (1998). ARIS – Business Process Frameworks. Berlin, Springer.

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INTRODUCTION

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ENTERPRISE SYSTEMS (ES) Enterprise systems (ES) are large-scale organizational systems which composed of people, processes and information technology built around packaged enterprise system software: is a set of packaged application software modules, with an integrated architecture, that can be used by organizations as their primary engine for integrating data, processes, and information technology, in real time, across internal and external value chains; impound deep knowledge of business practices that vendors have accumulated from implementations in a wide range of client organizations, that can exert considerable influence on the design of processes within new client organizations;

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ENTERPRISE SYSTEMS (ES) is a generic “semi-finished” product with tables and parameters that client organizations and their implementation partners must configure, customize, and integrate with other computer-based information systems to meet their business needs.

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ENTERPRISE SYSTEM SOFTWARE (ESS) Enterprise system software (ESS) includes: Enterprise Resource Planning (ERP) Customer Relationship Management (CRM) Supply Chain Management (SCM) Product Life Cycle Management (PLM) Enterprise Application Integration (EAI) Data Warehousing Decision Support Intelligent Presentation Layer eProcurement/eMarketplace/electronic exchange software

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ENTERPRISE RESOURCE PLANNING SYSTEMS (ERP) “ERP comprises of a commercial software package that promises the seamless integration of all the information flowing through the company – financial, accounting, human resources, supply chain and customer information” (Davenport, 1998). “One database, one application and a unified interface across the entire enterprise” (Tadjer, 1998). “ERP systems are configurable information systems packages that integrate information and information-based processes within and across functional areas in an organization” (Kumar & Van Hillsgersberg, 2000). “ERP systems are computer-based systems designed to process an organization's transactions and facilitate integrated and real-time planning, production, and customer response” (O'Leary, 2001).

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ENTERPRISE RESOURCE PLANNING SYSTEMS (ERP) “A method for the effective planning and controlling of all the resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company“ (American Production and Inventory Control Society, 2001). “Core software used by companies to coordinate information in every area of the business such as planning, manufacturing, sales, marketing, distribution, accounting, financial, human resource management, project management, inventory management, service and maintenance, transportation and e-business” (Monk, 2009).

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ENTERPRISE RESOURCE PLANNING SYSTEMS (ERP) SUMMARY: ERP programs help to manage company-wide business processes, using a common database and shared management reporting tools. ERP software supports the efficient operation of business processes by integrating throughout a business tasks related to sales, marketing, manufacturing, logistics, accounting, and staffing.

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WHAT IS IT A “BUSINESS PROCESS”? A business process is a collection of activities that takes one or more kinds of inputs (raw material, information, etc.) and creates an output, such as a goods, report or forecast, that is of value to the customer.

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BUSINESS PROCESSES IN CEMENT INDUSTRY

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THE SAMPLE OF THE FUNCTIONAL ORGANIZATION CHART

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MAIN FUNCTIONAL AREAS OF COMPANY’S OPERATION Marketing and Sales (M/S) Marketing of a product Taking sales orders Customer support Customer relationship management Sales forecasting Advertising Supply Chain Management (SCM) Accounting and Finance (A/F) Human Resources (HR)