| Information technology has transformed the way we | | | | Inventory Management & Control conceived in |
| live and the way we do business. ERP, or Enterprise | | | | 1960s. ERP has expanded from coordination of |
| Resource Planning, is one of most widely | | | | manufacturing processes to the integration of |
| implemented business software systems in a wide | | | | enterprise-wide backend processes. In terms of |
| variety of industries and organizations. In this short | | | | technology, ERP has evolved from legacy |
| article, we'll try to concisely explain the basic yet | | | | implementation to more flexible tiered client-server |
| important concepts relevant to ERP. | | | | architecture. |
| What is ERP - ERP is the acronym of Enterprise | | | | Benefits of ERP - ERP software attempts to |
| Resource Planning. ERP definition refers to both ERP | | | | integrate business processes across departments |
| software and business strategies that implement ERP | | | | onto a single enterprise-wide information system. The |
| systems. ERP implementation utilizes various ERP | | | | major benefits of ERP are improved coordination |
| software applications to improve the performance of | | | | across functional departments and increased |
| organizations for 1) resource planning, 2) management | | | | efficiencies of doing business. The implementation of |
| control and 3) operational control. ERP software | | | | ERP systems help facilitate day-to-day management |
| consists of multiple software modules that integrates | | | | as well. ERP software systems is originally and |
| activities across functional departments - from | | | | ambitiously designed to support resource planning |
| product planning, parts purchasing, inventory control, | | | | portion of strategic planning. In reality, resource |
| product distribution, to order tracking. Most ERP | | | | planning has been the weakest link in ERP practice |
| software systems include application modules to | | | | due to the complexity of strategic planning and lack |
| support common business activities - finance, | | | | of adequate integration of ERP with Decision Support |
| accounting and human resources. | | | | Systems (DSS). |
| ERP Systems - ERP is much more than a piece of | | | | ERP Failures - We couldn't conclude our brief guide to |
| computer software. A ERP System includes ERP | | | | ERP without mentioning ERP failures. The failure of |
| Software, Business Processes, Users and Hardware | | | | multi-million dollar ERP projects are reported once in a |
| that run the ERP software. An ERP system is more | | | | while even after 20 years of ERP implementation. |
| than the sum of its parts or components. Those | | | | We have identified the four components of an ERP |
| components interact together to achieve a common | | | | System - 1) ERP software, 2) Business Processes |
| goal - streamline and improve organizations' business | | | | that ERP software supports, 3) Users of ERP |
| processes. | | | | systems, and 4) Hardware and Operating Systems |
| History of ERP - Enterprise Resource Planning (ERP) is | | | | that run ERP applications. The failures in one or more |
| the evolution of Manufacturing Requirements Planning | | | | of those four components could cause the failure of |
| (MRP) II in 1980s, while MRP is the evolution of | | | | an ERP project. |