Introduction to ERP (Enterprise resource planning)
There are many different systems in a large company's including planning, manufacturing, distribution, shipping, and accounting.
Enterprise resource planning (ERP) is a system that integrates all of these functions into a single system, designed to serve the needs of each different department within the enterprise. ERP is more of a methodology than a piece of software, although it does incorporate several software applications, brought together under a single, integrated interface.
Enterprise resource planning (ERP) systems integrate primary business applications; all the applications in an ERP suite share a common set of data that is stored in a central database. A typical ERP system provides applications for accounting and controlling, production and materials management, quality management, plant maintenance, sales and distribution, human resources, and project management.
Why should you be interested? Because, basically, a well-implemented and appropriate ERP system can create significant efficiencies across your business, resulting in timely business information, better customer relationships, a more cost-effective supply chain, improved internal process and, ultimately, increased profitability.
The ERP system goes far beyond being just a simple piece of software. Each implementation is unique and is designed to correspond to the implementer's various business processes. Regardless of how a company approaches it, ERP is sure to bring significant changes to how a company does business. An ERP implementation can cost millions of dollars to create, and may take several years to complete.
Once implemented however, the ERP system brings tremendous advantages. Because all systems are joined together, all departments can more easily share information. The workflow that takes place between departments can become much more automated, and ultimately, customers are better served because the individual using the customer-facing applications will have access to every bit of information regarding each relevant process. For example, someone in sales would easily be able to log into a single system to determine the status of a customer order that is still in manufacturing. All this comes at a cost though; training costs are high because employees must not only learn how to use new software, they must also learn new processes.
ERP Improves Productivity
Before ERP systems, each department in an organization would most likely have their own computer system, data and database. Unfortunately, many of these systems would not be able to communicate with one another or need to store or rewrite data to make it possible for cross computer system communication. For instance, the financials of a company were on a separate computer system than the HR system, making it more intensive and complicated to process certain functions.
Once an ERP system is in place, usually all aspects of an organization can work in harmony instead of every single system needing to be compatible with each other. For large organizations, increased productivity and less types of software are a result.
Implementing Enterprise Resource Planning
ERP software is complex and expensive. Companies must devote significant human resources to ERP projects and often hire consultants or systems integrators to help implement the systems. As a result, the company can spend millions of dollars and several years on ERP projects. This report outlines the challenges companies should expect for ERP implementation and outlines the six main steps of an ERP project:
Vendor Selection
Business Strategy Formation
Application Configuration
Testing and End-user Acceptance
Training
Rollout
Benefits of implementing ERP systems:
Inventory Reduction
Improved Cash Management
Increased Revenue and Profits
Reduced Transportation and Logistics Costs
Reduced Information Technology (IT) Costs
Intangible benefits include unanticipated cost reductions, improved responsiveness to customers, more flexibility, and more effective management of the supply chain.
Advantages of ERP Systems
There are many advantages of implementing an EPR system; here are a few of them:
A totally integrated system
The ability to streamline different processes and workflows
The ability to easily share data across various departments in an organization
Improved efficiency and productivity levels
Better tracking and forecasting
Lower costs
Improved customer service
Disadvantages of ERP Systems
While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:
Usually many obstacles can be prevented if adequate investment is made and adequate training is involved, however, success does depend on skills and the experience of the workforce to quickly adapt to the new system. Customization in many situations is limited
The need to reengineer business processes
ERP systems can be cost prohibitive to install and run
Technical support can be shoddy
ERP's may be too rigid for specific organizations that are either new or want to move in a new direction in the near future.
ERP software packages Available in the Market
Baan from Infor Global Solutions: The Baan Corporation provides the financial and administrative consulting services.
JD Edwards Enterprise One & JD Edwards World from Oracle: JD Edward is into accounting business software development and an ERP system JDE comprises 3 basic areas of expertise, functional-business, and programmer-developer and technical-CNC-system administration.
Oracle e-Business Suite from Oracle : Oracle is into finance applications and Oracle relational database management system technology
PeopleSoft from Oracle: PeopleSoft is into Human resource management systems (HRMS) applications.
SAP R/3 from SAP: The most widely used modules in this ERP are Financials and Controlling (FICO), Human Resources (HR), Materials Management (MM), Sales & Distribution (SD), and Production Planning (PP) and it’s an integration around 25 modules. It’s the biggest ERP package in the Market.
Many more ERP packages are available in the market.
Enterprise:- Organization or Business oriented company.
Resource:- Man, Money, Machines and materials etc.
Planning:-Plans to maximum utilization of resources with cost minimization.
The ultimate aim of using ERP is planning with the available resources of an enterprise to get the maximum output with cost minimization.
There are many different systems in a large company's including planning, manufacturing, distribution, shipping, and accounting.
Enterprise resource planning (ERP) is a system that integrates all of these functions into a single system, designed to serve the needs of each different department within the enterprise. ERP is more of a methodology than a piece of software, although it does incorporate several software applications, brought together under a single, integrated interface.
Enterprise resource planning (ERP) systems integrate primary business applications; all the applications in an ERP suite share a common set of data that is stored in a central database. A typical ERP system provides applications for accounting and controlling, production and materials management, quality management, plant maintenance, sales and distribution, human resources, and project management.
Why should you be interested? Because, basically, a well-implemented and appropriate ERP system can create significant efficiencies across your business, resulting in timely business information, better customer relationships, a more cost-effective supply chain, improved internal process and, ultimately, increased profitability.
The ERP system goes far beyond being just a simple piece of software. Each implementation is unique and is designed to correspond to the implementer's various business processes. Regardless of how a company approaches it, ERP is sure to bring significant changes to how a company does business. An ERP implementation can cost millions of dollars to create, and may take several years to complete.
Once implemented however, the ERP system brings tremendous advantages. Because all systems are joined together, all departments can more easily share information. The workflow that takes place between departments can become much more automated, and ultimately, customers are better served because the individual using the customer-facing applications will have access to every bit of information regarding each relevant process. For example, someone in sales would easily be able to log into a single system to determine the status of a customer order that is still in manufacturing. All this comes at a cost though; training costs are high because employees must not only learn how to use new software, they must also learn new processes.
ERP Improves Productivity
Before ERP systems, each department in an organization would most likely have their own computer system, data and database. Unfortunately, many of these systems would not be able to communicate with one another or need to store or rewrite data to make it possible for cross computer system communication. For instance, the financials of a company were on a separate computer system than the HR system, making it more intensive and complicated to process certain functions.
Once an ERP system is in place, usually all aspects of an organization can work in harmony instead of every single system needing to be compatible with each other. For large organizations, increased productivity and less types of software are a result.
Implementing Enterprise Resource Planning
ERP software is complex and expensive. Companies must devote significant human resources to ERP projects and often hire consultants or systems integrators to help implement the systems. As a result, the company can spend millions of dollars and several years on ERP projects. This report outlines the challenges companies should expect for ERP implementation and outlines the six main steps of an ERP project:
Vendor Selection
Business Strategy Formation
Application Configuration
Testing and End-user Acceptance
Training
Rollout
Benefits of implementing ERP systems:
Inventory Reduction
Improved Cash Management
Increased Revenue and Profits
Reduced Transportation and Logistics Costs
Reduced Information Technology (IT) Costs
Intangible benefits include unanticipated cost reductions, improved responsiveness to customers, more flexibility, and more effective management of the supply chain.
Advantages of ERP Systems
There are many advantages of implementing an EPR system; here are a few of them:
A totally integrated system
The ability to streamline different processes and workflows
The ability to easily share data across various departments in an organization
Improved efficiency and productivity levels
Better tracking and forecasting
Lower costs
Improved customer service
Disadvantages of ERP Systems
While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:
Usually many obstacles can be prevented if adequate investment is made and adequate training is involved, however, success does depend on skills and the experience of the workforce to quickly adapt to the new system. Customization in many situations is limited
The need to reengineer business processes
ERP systems can be cost prohibitive to install and run
Technical support can be shoddy
ERP's may be too rigid for specific organizations that are either new or want to move in a new direction in the near future.
ERP software packages Available in the Market
Baan from Infor Global Solutions: The Baan Corporation provides the financial and administrative consulting services.
JD Edwards Enterprise One & JD Edwards World from Oracle: JD Edward is into accounting business software development and an ERP system JDE comprises 3 basic areas of expertise, functional-business, and programmer-developer and technical-CNC-system administration.
Oracle e-Business Suite from Oracle : Oracle is into finance applications and Oracle relational database management system technology
PeopleSoft from Oracle: PeopleSoft is into Human resource management systems (HRMS) applications.
SAP R/3 from SAP: The most widely used modules in this ERP are Financials and Controlling (FICO), Human Resources (HR), Materials Management (MM), Sales & Distribution (SD), and Production Planning (PP) and it’s an integration around 25 modules. It’s the biggest ERP package in the Market.
Many more ERP packages are available in the market.
Enterprise:- Organization or Business oriented company.
Resource:- Man, Money, Machines and materials etc.
Planning:-Plans to maximum utilization of resources with cost minimization.
The ultimate aim of using ERP is planning with the available resources of an enterprise to get the maximum output with cost minimization.
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