9609 · 9.3.3
Enterprise Resource Planning (ERP) flashcards
Revision flashcards for Cambridge 9609 Enterprise Resource Planning (ERP) (syllabus 9.3.3). Flip, recall, then mark a real past-paper question.
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ERP?
Software integrating core business processes on one database.
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Main modules?
Finance, HR/payroll, inventory, production planning, CRM.
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Key benefit?
Real-time data — fewer silos, better decisions (7.2.3).
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Implementation cost?
Licences, consultants, hardware, training, downtime.
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Common failure reason?
Staff resist change; processes not redesigned to fit system.
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Link to JIT?
Accurate live data essential for JIT scheduling (4.2.2).
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SME suitability?
Cloud ERP cheaper; may be overkill for very small firms.
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Vendor examples?
SAP, Oracle, Microsoft Dynamics — case may name one.
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What is Enterprise Resource Planning (ERP)?
A business management software that integrates all core functions of a company, such as finance, HR, manufacturing, and supply chain, into a single system with a central database.
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What is meant by 'data integration' in the context of ERP?
The process of combining data from different business functions into a single, unified view. An ERP's central database ensures that when data is updated in one module (e.g., Sales), it is instantly and accurately reflected across all other relevant modules (e.g., Inventory, Finance).
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Define a 'legacy system'.
An old method, technology, computer system, or application program that continues to be used, typically because it still functions for the users' needs, even though newer systems are available. ERP systems are implemented to replace multiple, often incompatible, legacy systems.
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What is 'change management' during an ERP implementation?
The structured approach to managing the people-side of a new system implementation. It involves communication, training, and support to help employees transition from their old ways of working to the new ERP system, minimising resistance and disruption.
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What is a 'business process re-engineering' (BPR) in relation to ERP?
The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements. Often, a business must change its processes to align with the 'best practice' workflows built into an ERP system, rather than customising the software to fit old, inefficient processes.