| Information technology has transformed the way we | | | | Enterprise Resource Planning (ERP) is the evolution of |
| live live in and the way we do business. Since last | | | | Manufacturing Requirements Planning (MRP) II in |
| decade, I.T. has made a drastic change in our life. As | | | | 1980s, which was mainly related to Manufacturing |
| compared to earlier stage, when computer was used | | | | Industry and was designed to control manufacturing |
| just as a typewriter, nowadays users have become | | | | process and planning the required production with |
| more intelligent and IT literate. Now the user knows | | | | efficient output. Where as MRP is the evolution of |
| that a PC can do many more things rather then just | | | | Inventory Management & Control conceived in 1960s, |
| typing a letter in a word processing software or | | | | which was mainly designed for management of |
| making balance sheets in excel. They expect more | | | | Stocks in any particular industry. ERP has expanded |
| things out of their PC. During this phase of industry, | | | | from coordination of manufacturing processes to the |
| every one of us must have heard the word ERP in | | | | integration of enterprise-wide backend processes like |
| one or the other form. It may be in title of any IT | | | | production planning and scheduling of delivery. In |
| magazine or may be a point of discussion in any IT | | | | terms of technology, ERP has evolved from legacy |
| Seminar or may be in an advertisement of big IT | | | | implementation to more flexible tiered client-server |
| Company. Thus in any form, we all have been | | | | architecture. |
| through this word. In this short article, I'll try to | | | | Benefits of ERP |
| concisely explain the basic yet important concepts | | | | ERP software attempts to integrate business |
| relevant to ERP. | | | | processes across departments ionto a single |
| What is ERP ? | | | | enterprise-wide information system. The major |
| ERP is one of the most widely implemented business | | | | benefits of ERP are improved coordination across |
| software systems in a wide variety of industries and | | | | functional departments and increased efficiencies of |
| organizations. ERP is the acronym of Enterprise | | | | doing business. The implementations of ERP systems |
| Resource Planning. ERP is just not only a software. | | | | help to facilitate day-to-day management as well. ERP |
| ERP definition refers to both; ERP software and | | | | software systems are originally and ambitiously |
| business strategies that implement ERP systems. | | | | designed to support resource planning portion of |
| ERP implementation utilizes various ERP software | | | | strategic planning. In reality, resource planning has |
| applications to improve the performance of | | | | been the weakest link in ERP practice due to the |
| organizations for | | | | complexity of strategic planning and lack of adequate |
| 1) resource planning, | | | | integration of ERP with Decision Support Systems |
| 2) management control and | | | | (DSS). |
| 3) operational control. | | | | Famous ERP Software |
| ERP software consists of multiple software modules | | | | No one from IT industry will be unknown from the |
| that integrate activities across functional departments | | | | word SAP. SAP is the most successful ERP Software. |
| - from production planning, parts purchasing, | | | | To name more here are some examples: |
| inventory control and product distribution to order | | | | PeopleSoft |
| tracking. Most ERP software systems include | | | | SysPro |
| application modules to support common business | | | | ORION Enterprise |
| activities like finance, accounting and human | | | | Matrix |
| resources. | | | | (In the past, we have implemented Matrix ERP |
| ERP Systems | | | | solution for one of our clients) |
| ERP is much more than just a computer software. | | | | ERP Failures |
| An ERP System includes ERP Software, Business | | | | I couldn't conclude my brief guide to ERP without |
| Processes, Users and Hardware that run the ERP | | | | mentioning ERP failures. The failures of Crore rupees |
| software. An ERP system is more than the sum of | | | | ERP projects are reported once in a while even after |
| its parts or components. Those components interact | | | | many years of ERP implementation. |
| together to achieve a common goal - streamline and | | | | There are four components of an ERP System - |
| improve organizations' business processes. Most | | | | 1) ERP software, |
| important factor for ERP system is the users. | | | | 2) Business Processes that ERP software supports, |
| Successful implementation of any ERP System more | | | | 3) Users of ERP systems, and |
| depends on intelligent users who are going to use | | | | 4) Hardware and Operating Systems that run ERP |
| them, because any standard ERP Software would | | | | applications. |
| consist hundreds of input information for any | | | | The failures in one or more of those four |
| particular business activity. Thus good knowledge of | | | | components can cause the failure of an ERP project. |
| each entity of system to the users is most | | | | Discussions on each of the four topics will require |
| important factor in ERP Software. | | | | new article, so I may come up with same in my next |
| History of ERP | | | | article. |