Enterprise Resource Planning (ERP) integrates core business areas such as manufacturing, distribution, financials and human resources. ERP is often implemented in companies together with process-oriented organization or Supply Chain Management (SCM). In order to manage the information-flow of such structures, new IT-systems are generated - known as ERP-Systems. IT-systems of this kind allow managers from all departments to look vertically and horizontally across the organization to see what others are accomplishing or not. It attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different department's particular needs. ERP-systems also implement and automate business processes, putting them into a useful format that is standardized across the corporation and between their suppliers and customers. ERP-systems capture data about historical activity, current operations and future plans and organize it into information people can use to help develop business strategies.
In the ERP industry, the systems are often referred to as the 4M's. Man, Money, Materials and Machines. This type of system brings all four aspects of business together, giving them a synergistic value. ERP is an enabling technology that can give corporations a strong competitive edge. In addition, this technology is as close to virtual enterprises as business today has ever seen.
Evolution of ERP.
The history of ERP can be traced back to the 1960's, when the focus of systems was mainly towards inventory control. Most of the systems software were designed to handle inventory based in traditional inventory concepts. The 1970's witnessed a shift of focus towards MRP (Material Requirement Planning). This system helped in translating the master production schedule into requirements for individual units like sub assemblies, components and other raw material planning and procurement.
This is ERP's true ambition. ... This means that ERP customers must find ways to engage top-notch ERP experts while controlling costs and still be able to implement and maintain a strategic ERP system. ... ERP though is much more. ... An ERP vendor provides the software. ... Within the power ERP has over business, it is imp to see who the key vendors of the ERP software are. ...
ERP Issues When we talk of issues related to ERP, we find that in regard of India, there are many things that we need to be concerned about. ... Is ERP expensive for Indians: ERP decisions are a "high-risk high reward" decision. ... It must be realized that the ERP is an enabler. ... ERP helps in pursuing such goals often successfully. ... ERP consultants operate in the "high risk high reward" area. ...
Implementing ERP is a hard task " maybe the hardest one you will do in your profession. ... The steps to ERP accomplishment fall into the second group. ... Upgrade Business Structures It makes no logic for new ERP software to be fitted when a firm's administrative structure and corporate processes are part of the problem that provoked the move to a new ERP system in the principal place. In some instances, the new ERP system may require modifications to the organizational structure. ... Go beyond the ERP uses. ...
The first ERP systems ran on mainframe computers. ... The need to operate more efficiently than the competition will continue to drive the development of ERP systems and ERP software for years to come. ... There was also a shift in the way ERP was identified. ... In addition, by going with the top ERP vendors, the companies placed themselves in danger of being limited to transitioning to other ERP vendors if their system proved not compatible because they only used a small number of ERP vendors. Organizations have options before investing into an ERP system. ...
Cisco was highly successful with its enterprise resource planning (ERP) effort. ... Although Cisco's ERP implementation was ultimately very successful, they did make a few mistakes along the way. ... This only served to exacerbate the previously undiscovered capacity issues and the failures that it caused after the Oracle ERP was launched. ... Unquestionably, Cisco's ERP implementation would not have been such a success story if it were not for the support of their senior management. ... Cisco went lives with ERP in a big bang fashion, which is inherently risky. ...
An ERP (enterprise resource planning) system is, in essence, an integrative mechanism, connecting diverse departments through a shared database and compatible software. It is impossible to get the full benefits of an ERP system without having integrated work processes. Far too frequently ERP solutions are installed and process redesign is an after-thought. ...
These are the internal issues that have to be dealt with in a company and they are not often as promoted or praised as a company's ERP system. ... Activity 3:ERP The definition of Enterprise Resource Planning (ERP) is an attempt to integrate all departments and functions across a company onto a single computer system that can serve all those different departments' particular needs. ... This is a form of ERP because the open integration quality of this software integrates all associated departments thus planning for all enterprises resources. ... Saratoga systems employ an ERP...
A supply chain is the network of vendors, distributors, manufacturers, retailers and other entities that are directly and indirectly linked for the purpose of serving the same customer. This interconnected and synchronized chain allows services and products to reach a large number of consumers, both...
