Slides # 8 Erp 35g4d

Introduction to Enterprise Resource Planning

Enterprise resource planning (ERP) History: (Detail) The term ERP was coined in 1990 by Gartner group (is an American information technology research and advisory firm), but its roots date to the 1960s. The concept ERP applied to inventory management and control in the manufacturing sector. Software engineers create different programs or softwares to monitor inventory, reconcile balances, and report on status. By the 1970s, this had evolved into Material Requirements Planning (MRP) systems for scheduling production processes. In the 1980s, MRP grew to encom more manufacturing processes, prompting many to call it MRP-II or Manufacturing Resource Planning.

Enterprise resource planning (ERP) History: (Detail)

Enterprise resource planning (ERP) History: (Detail) By 1990, these systems had expanded beyond inventory control and other operational processes (MRP, MRP II etc) to other functions like ing and human resources, setting the stage for ERP as we have come to know it. Today, ERP has expanded even more to encom business intelligence (BI) while also handling sales force automation (SFA), marketing automation etc. With these advancements and the success stories coming out of these software systems, companies in a broad range of industries—from wholesale distribution to ecommerce—use ERP solutions.

Enterprise resource planning (ERP) History: (Detail) Moreover, even though the "e" in ERP stands for "enterprise," high-growth and mid-size companies are now rapidly adopting ERP systems. Software-as-a-Service (SaaS) solutions—also referred to as "cloud computing"—have helped fuel this growth. Cloud-based solutions not only make ERP software more affordable, they also make these systems easier to implement and manage. Perhaps even more importantly, cloud ERP enables real-time reporting and BI, making them even valuable to executives, management and staff. As a result, companies of all sizes and a wide range of industries are transitioning to cloud ERP systems. In fact, IT community predicts that SaaSbased ERP adoption will rise 21 percent annually

Enterprise resource planning (ERP) Summing Up History: In 1990 Gartner Group first use the word ERP as an extension of material requirements planning (MRP), later for manufacturing resource planning. However ERP came to represent a larger thing than MRP and its now far beyond manufacturing. Not all ERP packages were just developed from a manufacturing core. Vendors might began (or go just) with ing, maintenance and human resources. By the mid–1990s ERP systems addressed all core functions of an enterprise. Enterprises that is corporations, governments bodies and non–profit organizations also began to employ (purchase) ERP systems. ERP systems are now also available as a service.

Enterprise resource planning (ERP) Definitions: “Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization, ERP systems actually automate different activities with an integrated software application.” The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

Enterprise resource planning (ERP) Definition: “Enterprise resource planning (ERP) is business management software that allows an organization to use a system of integrated applications to manage the business. ERP software integrates all parts of an operation, including development, manufacturing, sales and marketing.” “An integrated information system that serves all departments within an enterprise.”

Enterprise resource planning:(ERP) Definition: “A process by which a company (often a manufacturer) manages and integrates the important parts of its business. An ERP management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance, human resources, etc.”

It provides the business management executives with a comprehensive overview of the complete business execution which in turn influences their decisions in a productive way.

Enterprise resource planning (ERP) Explanation:

At the core of ERP is a well managed centralized data repository (Database) which acquires information from and supply information into the applications (ERP). Information in large business organizations is accumulated on various servers across many functional units and sometimes separated by geographical boundaries. Such information can possibly service individual organizational units. ERP System gather and streamline distributed information at a centralized database.

Enterprise resource planning (ERP) Explanation:

The term ERP originally referred to the way a large organization planned to use its organizational wide resources. Formerly, ERP systems were used in larger and more industrial types of companies. However, the use of ERP has changed drastically over a period of few years. Today the term can be applied to any type of company, operating in any kind of field and of any magnitude (Size).

Enterprise resource planning (ERP) Explanation:

Today’s ERP software architecture can possibly envelop a broad range of enterprise wide functions and integrate them into a single unified database repository. For example, functions such as Human Resources, Supply Chain Management, Customer Relationship Management, Finance and Manufacturing Warehouse Management, etc were all previously stand alone software applications, generally housed with their own applications, database and network, but today, they can all work under a single umbrella – the ERP architecture.

Enterprise resource planning (ERP) ERP Architecture:

Enterprise resource planning (ERP) Summing Up:Definition: “ Enterprise resource planning (ERP) is business management software that allows an organization to use the system of integrated applications to manage the business by integrating all modules of an enterprise. ” ERP software consists of many enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization. Each ERP module is focused on one area of business processes, such as product development or marketing. Some of the more common ERP modules include product planning, material purchasing, inventory control, distribution,

Enterprise resource planning (ERP) Summing up:As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP in other business activities and may also incorporate modules for CRM and business intelligence -- and present them as a single unified package.

As a result one central repository i.e. database for all information that is shared by the various ERP modules in order to smooth the flow of data across the organization.

Enterprise resource planning (ERP)

Enterprise resource planning (ERP) Integration is Key to ERP Systems Integration is an exceptionally significant ingredient to ERP systems. The integration between business processes helps develop communication and information distribution, leading to remarkable increase in productivity, speed and performance. The key objective of an ERP system is to integrate information and processes from all functional divisions of an organization and merge it for effortless access. The integration is typically accomplished by constructing a single database repository that communicates with ERP software/ applications providing different divisions of an organization with various business statistics and information.

Enterprise resource planning (ERP) Many larger organizations usually deploy a single functional system and slowly interface it with other functional divisions. This type of deployment of ERP can really be timeconsuming and expensive.

An ERP system integrates/chains all the below organizational processes together with a central database repository.

Enterprise resource planning (ERP) Advantages: There are many advantages of implementing an EPR system. A few of them are listed below: • A perfectly integrated system chaining all the functional areas together • The capability to streamline different organizational processes and workflows • Sales forecasting, which allows inventory optimization • Order tracking, from acceptance through fulfillment • Revenue tracking, from invoice through cash receipt

Enterprise resource planning (ERP) Advantages: • Matching Purchase order (what was ordered), inventory receipts (what arrived), and Costing (what the vendor or seller invoiced) • Provides comprehensive enterprise view. Makes real–time information available to management anywhere, anytime to make proper decisions across various departments • Improved efficiency, performance and productivity levels • Protects sensitive data by consolidating data into a single database structure • Improved customer service and satisfaction

Enterprise resource planning (ERP) Disadvantages:

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While advantages outweigh disadvantages for most organizations implementing an ERP system, Here are some of the most common obstacles experienced while developing or implementing an ERP. The scope of customization is limited in several circumstances. The present business processes have to be rethought to make them synchronize with the ERP . ERP systems can be extremely expensive to implement. Extensive training requirements take resources from daily operations.

Enterprise resource planning (ERP) Disadvantages: • There could be lack of continuous technical . • ERP can cost more than less integrated and/or less comprehensive solutions. • ERP systems may be too rigid for specific organizations that are either new or want to move in a new direction in near future.

Enterprise resource planning (ERP) • SAP stands for “Systems Applications and Products.” SAP is the 4th largest software company in the world. It ranks after Microsoft, IBM and Oracle. • SAP Head quarters are in Walldorf, . SAP was founded in 1972 by five former IBM engineers. • SAP offers ERP solution for various industries to integrate information from various functions of that industry under one system. SAP ERP is an integrated software solution that incorporates the key business functions of the organization. • There are over 100,800 installations at more than 28,000 companies. SAP products are used by 12 million people in more than 120 countries.

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