GROUP MEMBERS:

Julianna Marie Estilloso

Christy Puentespina
Mariya Rovic Salvan Maquilan
Andrea Villaruel
Renna Eloro
Methusaila Sumog-oy

ERP CONCEPT ACTIVITY

 1.

ERP (Enterprise Resource Planning) systems provide for a company:

 Integrated Data Management: ERP systems centralize data across departments,

ensuring that everyone has access to accurate and up-to-date information,
which improves decision-making and collaboration.
 Streamlined Processes: By automating and standardizing business processes,
ERP helps reduce manual tasks, minimize errors, and increase efficiency in
operations like inventory management, order processing, and financial reporting.
 Improved Reporting and Analytics: ERP systems offer robust reporting tools that
enable companies to analyze data in real-time, providing insights into
performance metrics and facilitating better strategic planning.
 Enhanced Financial Management: ERP solutions help manage accounting,
budgeting, and financial reporting, ensuring compliance with regulations and
improving financial visibility across the organization.
 Scalability and Flexibility: As a company grows, ERP systems can scale to
accommodate increased complexity, allowing for the addition of new
functionalities or modules to support changing business needs.

2.HOW DO ERP SYSTEM WORK

Description of Flowchart Steps:

 Data Input (Sales Orders): This is where data is initially entered into the system,
typically by the sales team.

Sales Module (Order Processing): The sales module processes the sales order and
communicates with other departments to ensure fulfillment.

Inventory Management: This module checks inventory levels and updates them based
on the sales order. If stock is low, it triggers procurement actions.

Procurement (Purchasing): If new stock is needed, the procurement module places

orders with suppliers and manages purchase orders.

Finance (Invoicing): Once the order is fulfilled, the finance module generates invoices
and updates financial records, ensuring that all transactions are recorded.

Reporting & Analytics: The ERP system aggregates data from all departments to provide
insights and analytics, facilitating informed decision-making across the organization.

3. ORGANIZATION BEFORE ERP

Before implementing an ERP system, organizations often face several challenges, including:

 Data Silos: Information is typically scattered across different departments and

systems, leading to inconsistencies, duplicated efforts, and difficulties in
accessing comprehensive data.
 Inefficient Processes: Many organizations rely on manual processes, which can
be time-consuming, error-prone, and less responsive to changing business
needs.
 Limited Visibility: Without a unified system, organizations struggle to gain a
holistic view of operations, making it difficult to monitor performance and
identify areas for improvement.
 Poor Decision-Making: Inconsistent data and lack of real-time information
hinder effective decision-making, as leaders may not have access to the insights
needed to make informed choices.
 High Operational Costs: Maintaining multiple disparate systems can lead to
higher operational costs, as organizations spend more on IT support, training,
and integration efforts.

4. COMMON MYTHS BEFORE ERP

Why Enterprise Resource Planning (ERP) is only for large companies

 -ERP systems are often associated with large companies because they handle complex,
integrated business processes across various departments like finance, HR, and supply chain.

 ERPs often require customization, which is time-consuming and costly.

-Implementation demands significant internal resources, such as IT staff and training.

-Large firms need ERP systems to manage high volumes of data efficiently.

Why is ERP too complex

-It's complexity arises from the need to customize the system to fit unique workflows

-Manages large volumes of data across departments, demanding accuracy and security.

-Complicated implementation process with data migration from legacy systems.

-Requires comprehensive employee training for system adoption.

-Needs continuous maintenance, updates, and IT support.

Why is it expensive and not give enough value

-ERP systems are expensive due to high licensing fees, consulting, implementation, training,
and ongoing maintenance. While the costs are substantial, large companies typically see value
through increased efficiency, better data management, and improved decision-making. For
smaller businesses, the complexity and cost may outweigh the immediate benefits, making
ERPs seem less valuable to them.

5. HISTORY OF ERP

History of ERP 1960s - 1970s: Early Beginnings Materials Requirement Planning (MRP): The
roots of ERP can be traced to MRP systems developed in the 1960s, which focused on inventory
management and production planning. These systems helped manufacturers schedule
production and manage stock levels efficiently.

1980s: Expansion of Functionality MRP II: In the 1980s, MRP evolved into MRP II
(Manufacturing Resource Planning), which integrated additional functions such as finance,
sales, and human resources. This expansion allowed businesses to manage more aspects of
their operations in a coordinated manner.

1990s: The Birth of ERP ERP Emergence: The term "ERP" was coined in the early 1990s. ERP
systems began to encompass a wider range of business processes, integrating functions like
supply chain management, customer relationship management (CRM), and project
management into a single system. Software Companies: Companies like SAP, Oracle, and
PeopleSoft began to dominate the market, offering comprehensive ERP solutions that could be
tailored to various industries.

2000s: Growth and Adoption Web-Based Solutions: The rise of the internet led to the
development of web-based ERP solutions, making them more accessible to businesses of all
sizes. Customization and Flexibility: ERP systems became more customizable, allowing
organizations to tailor the software to meet their specific needs.

2010s: Cloud Computing Revolution Cloud ERP: The advent of cloud computing transformed
ERP systems. Many organizations began to adopt cloud-based ERP solutions, which reduced the
need for on-premises infrastructure and allowed for easier updates and scalability. Focus on
User Experience: Improved user interfaces and mobile access became a priority, making ERP
systems more user-friendly.

2020s: Modern Trends AI and Automation: Contemporary ERP systems are increasingly
incorporating artificial intelligence, machine learning, and automation to enhance decision-
making and operational efficiency. Integration and Interoperability: There’s a greater emphasis
on integrating ERP with other technologies like IoT and data analytics to provide real-time
insights across the organization. Sustainability and Ethics: Modern ERP solutions are also
focusing on sustainability and ethical practices, enabling businesses to track their
environmental impact.

6. ADVANTAGES OF ERP

Real-Time Data

 Informed Decision-Making: Access to up-to-the-minute information allows managers to

make quick, informed decisions. For example, if sales data shows a sudden drop, teams
can investigate and address issues immediately.
 Enhanced Customer Service: Real-time access to inventory and order status enables
customer service representatives to provide accurate updates to customers, improving
satisfaction and loyalty.
 Proactive Management: With real-time insights, businesses can identify trends and
potential problems before they escalate, leading to more proactive management.

Efficiency
  Streamlined Processes: Automating routine tasks reduces time spent on manual
processes, allowing employees to focus on higher-value activities. For instance,
automated invoicing speeds up the billing cycle.
 Collaboration: Integrated systems enhance collaboration across departments, reducing
delays and miscommunication. Teams can easily share information, leading to quicker
project completions.
 Resource Optimization: Efficient resource allocation ensures that staff and materials are
used effectively, maximizing productivity and minimizing waste.

Cost Savings

 Reduced Operational Costs: By eliminating inefficiencies and streamlining processes,

organizations can lower operational costs. For example, less time spent on
administrative tasks means lower labor costs.
 Improved Inventory Management: Better inventory control reduces excess stock and
associated carrying costs, leading to significant savings.
 Lower IT Expenses: With a unified ERP system, companies often reduce the need for
multiple software solutions, leading to lower IT maintenance and support costs.

Overall Benefits

Implementing these advantages can lead to a more agile, responsive, and financially healthy
organization. Employees are likely to feel more empowered and engaged, knowing they have
the tools to make impactful contributions. This creates a positive feedback loop, enhancing
workplace culture and driving long-term success.

7. CONCLUSION AND WRAP-UP DESCUSSION

ERP (Enterprise Resource Planning) systems underscores their critical role in enhancing
organizational efficiency and integration. We explored how ERP systems streamline processes,
improve data accuracy, and facilitate better decision-making across various departments.
However, the ERP system faces challenges to the organization such as implementation costs,
user resistance, and the need for continuous updates cannot be overlooked. Successful ERP
adoption requires careful planning, training, and ongoing support to maximize benefits to fix
the problem and to find a way that the ERP system has a solution. Organization increasingly rely
on data-driven strategies and ERP systems help organizations assess supplier performance,
maintain better communication, and stronger relationships with suppliers that make it a better
way that the ERP system achieve greater things to thier business and to improve the
performance of ERP to the organization.