ITPEC IP October 2022 Question 79
The business operations of the entire company, such as production, sale, procurement, accounting, and human resources are to be managed in an integrated manner, and the management resources of the entire enterprise are to be optimized. Which of the following is an appropriate information system for implementing this objective?
Explanation
ERP system — Enterprise Resource Planning integrates production, sales, procurement, accounting and HR to optimise the resources of the whole enterprise.
An ERP package links the core business operations of every department through one shared database, so an order entered in sales is immediately reflected in production plans, purchasing, inventory and accounting. Management sees the whole company's people, goods, money and information in one place and can allocate them where they are most effective, instead of each department optimising on its own.
Answer (b)
Why not others:
- •(a) CRM system — customer relationship management: manages customer information and contact history to build long-term customer relationships, covering sales and marketing only
- •(c) HRM system — human resource management: handles personnel records, evaluation and payroll, one of the functions ERP integrates
- •(d) MRP system — material requirements planning: calculates the parts and materials needed, and when, from the production plan, a manufacturing function only
Key rule: ERP = the whole enterprise's resources in one integrated system; CRM = customers, SCM = the supply chain across companies, MRP = materials for production, HRM = people.
Business Strategy Management · AI-written, may contain errors
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