Enterprise resource planning

process management

Name: Qian Sun

Course code: ISA D17 Email: sun9099@live.cn

1 Introduction :

Enterprise resource planning system is playing a key role in the whole divisional management and resource planning. And as the time goes by, it will become more and more important. During these years, to increase and improve the product efficiency, many companies are making the most use of the enterprise resource planning system, and they could get great profit through it. Enterprise resource planning system is definitely a necessary tool during the process management. Since the enterprise can benefit from the ERP system, it mainly depends on the highlight the process management with the implement of ERP systems. During the process of using this advanced system, the business process modeling was promoted into a new stage. In this paper I aim to analyze the function that ERP system can make during the process management.

2 Enterprise resource planning system :

It is a company-wide computer software system used to manage and coordinate all the resources, information, and functions of a business from shared data stores.

ERP relates to the integrated software infrastructure that supports the entire company business process.

ERP refers to a view of a company and all its parts as connected whole, rather than small silos of activity.

3 Process management:

Process management is a series of techniques, skills, tools, and the methods used to control and manage a business process within a large system or organization. The term I most commonly used in business analysis, productivity studies, and systems engineering. The purpose of process management is to clearly identify and document all the steps and actions taken to complete a process or work flow.

Figure 1

Figure 1 illustrates the coupling that should, ideally, exist between these development areas(boxes)and their business models(arrows)to increase the possibilities of successful business development. The intentions that exist in the other development areas are materialized by the business processes.

Through the analysis of ERP and process management, we could know that great or low profit mostly depend on the process of management and business. According to the definition of the process management above, process management needs a series tools and methods to achieve the required profit. And ERP is just one of the best tools during the process management. The following part is to analyze how ERP system improves the product efficiency during the process management from three aspects.

4 Process management is benefit from ERP system

Integrate- Workshop, production lines, processing equipment, test equipment, transportation tools are enterprise hardware resources while human, management, credit, financing ability, organization structure, employee labor enthusiasm are enterprise software resources. During the enterprise operation developing, these resources affect each other and form the foundation of enterprise production activities, completing customer orders, creating social wealth and realizing enterprise value. All the resources above could reflect the status of enterprise in competition development.

The object of ERP is all kinds of resources and production factors above, through the use of ERP, enterprises can finish the customer’s order in time and efficiently. ERP can maximize the role of these resources and make the adjustment resource decisions according to the customer orders and production conditions.

Optimize –One of the most important symbol for enterprise development is the reasonable adjustment and application in the above resources. During the past time without ERP system, enterprise situation and adjusting direction is not clear. It is difficult to adjust arrangement.. Usually it will take too long time to finish adjusting process. Exchange and communication between two departments are relatively weak. But with the development of information technology and the use of ERP system, ERP is mainly designed to solve these difficult problems before. ERP system has made the successful implementation for enterprises to use the resources better.

Informate- Currently, management information system based on internet technology has become trans-nationalization and trans-enterprises. The maturity of internet technology helps

to improve the information sharing and data transmission between the management information system of enterprises and customers, which strengthens the links between enterprises to form a survival chain of joint development and reflects the supply chain concept which aims to achieve enterprise survival in global competitiveness. ERP system can realize the functions discussed above to achieve the joint operations between decision makers and business units of trans-enterprises.

5 Conclusion

Computer technology, especially database technology, plays an invaluable role for enterprises in establishing management information systems and even in changing management concepts.

There is a circuit of reciprocal causation between the development of management concepts and information technology. Information technology has been proved to play an increasingly important role in the management plane of enterprises. The application of ERP can efficiently promote the modernization and scientific of modern enterprise management to make the enterprise meets the requirements of an increasing competitive market. It can be predicted that the import of ERP has become a trend in global market.

References:

Thomas H. Davenport, Jeanne G. Harris and Susan Cantrell(2004),Enterprise systems and ongoing process change, 16-26.

Marie-Therese Christiansson, Business modeling in interorganizationa co-operation- what to describe, why and how?

Marie-Therese Christiansson. Process orientation and use of process modeling Assistant Professor Information systems.