Role of ERP system
Leonard Walletzký


Enterprise information systems
´CRM - Customer Relationship Management
´FMS – Financial Management System
´SCM - Supply Chain Management
´MIS - Management Information System
´CMS - Content Management System
´KMS - Knowledge Management System
´DSS - Decision Support System
´GIS - Geographic Information System
´

What is ERP
´Enterprise Resource Planning, integrated system that help business to manage internal and external
resources. ´Built on a centralized database and normally utilizing a common computing platform,
´ERP systems consolidate all business operations into a uniform and enterprise-wide system
environment
´ERP can integrates all systems mentioned before

Providing ERP
´Inventory, MRP, Production, Project, Accounting, CRM, HRM, etc.
1960
ERP
1990
2000
ERP as a Service

Example
Sales Order
Sales Order
Sales
Store / Shipment
Delivery note
Stock card
Invoice
Receipt
C:\Users\leonard\AppData\Local\Microsoft\Windows\Temporary Internet
Files\Content.IE5\6FC0BK0U\MC900229315[1].wmf
C:\Users\leonard\AppData\Local\Microsoft\Windows\Temporary Internet
Files\Content.IE5\SGLE4KKS\MC900018709[1].wmf
Accounting
Internal documents
Costing
Invoicing
Billing
Banking
ERP

Basic facts
´Every (even) small economic activity produce a lot of documents
´Problems
´Managing all the documents together with their relations (metadata)
´Consistency of the documents
´Part of them is basis for the taxations
´We do not need to store data only
´We need them back!

Critical situation
´When organization has not any ERP system at all
´Small or beginning companies
´When they have bad system or their system is out of date, not power enough etc.
´Growing companies
´Join ventures
´

How to recognize problem?
´Usage of Excel to manage your activity is not enough
´External accountant does not give you all data you need ´Data processing (document generating)
takes more and more time, you need to control everything 2 – 3 times ´You need pen and paper for
the key decision, because you are not able to get all data from your accounting
´
http://regnow.img.digitalriver.com/vendor/5833/cash_accounting.jpg

How to identify out dated system?
´You need to enter data more than 1 time
´To the accounting and than to internet banking
´You are not able to use modern ways of collaboration (document sharing)
´Your system has technical problems, it freezes or crash very often
´Your system is no longer supported
´Your system is not compatible with other systems you use (e-shop)
´You need more than 30 minutes to crate report

Basic modules in ERP system
´Sales – from the order to invoice
´Purchases – from order to invoice
´Banking and cash
´Warehouse
´Property and inventory
´Human resources
´Relation with customers
´Accounting
´

Outside connections to and into ERP system
´Banks and payment systems
´POS
´Trade
´Restaurants / Hotels
´Others
´Document management
´Content management system
´Web shop
´Intranet
´Other specialized systems
´DSS, MIS…
´

What features should ERP system have?
´Work in groups you have created yesterday.
´Develop at least 4 features of ERP you consider as important.
´You can use internet and any kind of resources
´Time: 15 minutes

Features of „ideal“ ERP system
´Optimizes and simplifies the processes
´Centralize the information
´Optimizes data and document sharing
´Is accessible from everywhere
´It helps with your communication to your customers
´Accelerate report´s generating
´Gets you complete information about status of your company ´Is open for the third party product
(e-shops, Office, banking and payment systems, POS)
´

Special position of accounting
´It is not just „a next module“
´Accounting plays unique role
´What is it accounting?
´The systematic recording, reporting, and analysis of financial transactions of a business
(http://www.investorwords.com/48/accounting.html)
´Many SME separates accounting and ERP!!!!
´Many big companies underestimate the control role of accounting
´

Separated ERP
Sales Order
Sales Order
Sales
Store / Shipment
Delivery note
Stock card
Invoice
Receipt
Accounting
Internal documents
Costing
Invoicing
Billing
Banking
ERP

Why they do it, if they know
´Accounting Software
´Create documents in Every Department
´Every departments (although it is the same information, duplicate work)
´Generate report in Every department
´Why? It has to wait for Accounting input information into software.
´Delay information e.g.
´Stock balance => Sale, Procurement, Manufacturing
´Account Receivable balance => Credit control, Bad debt
´Cash and Bank management
´Waste time to collect all information
´

Reasons
´People generally
´are afraid of accounting
´think it is better to let it on professionals
´assume they have all necessary information from other records
´do not like taxes
´Why it is wrong
´accounting is here for more than 300 years with unchanged principles
´external professionals will never know your business in detail
´Without accounting you are loosing one of the most important ways of verifying your data
´Taxes are simply here and we need to accept that
´
´

Conclusion
´Critical situation of ERP need
´Value of ERP for the customer
´Special position of accounting
´