Question

The modern enterprise resource management IS provides “core” and “extended” modules. (1) List two core modules and two extended ERP modules . (2) What is the fundamental organisational characteristic that differentiates “core” and “extended” modules (1 mark)?

Answer 1

1.

Core ERP Components

Accounting and finance ERP components handles the accounting data and financial process functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management.

Production and materials management ERP components deals with the various aspects in production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control.

Human resources ERP components monitor employee information such as payroll, benefits, compensation, and performance assessment, and assure compliance with the legal requirements of multiple jurisdictions and tax authorities.

Extended ERP Components

Business Intelligence ERP component collects information that are being used by the whole organization, organize it, and applies analytical tools to assists managers in making decisions.

Customer Relationship Management ERP components provides an overall information regarding customer data and interactions with customer so that organizations can be more responsive to their needs. These components typically include contact centers, sales force automation, and marketing functions.

Supply Chain Management ERP components assists organization’s supply chain from its acquisition of raw materials to receipt of finished goods by customer by organizing a plan, scheduling control, and optimization.

2.Core ERP component –traditional components included in most ERP systems and they primarily focus on internal operations

Extended ERP component –extra components that meet the organizational needs not covered by the core components and primarily focus on external operations

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