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Introduction to ERP
ERP is one of the most widely implemented business software systems in a wide variety of industries and organizations. ERP is the acronym of Enterprise Resource Planning. ERP is just not only a software, ERP definition refers to both; ERP software and business strategies that implement ERP systems. ERP implementation utilizes various ERP software applications to improve the performance of organizations for
1) Resource Planning
2) Management Control and
3) Operational Control
ERP software consists of multiple software modules that integrate activities across functional departments - from production planning, parts purchasing, inventory control and product distribution to order tracking. Most ERP software systems include application modules to support common business activities like finance, accounting and human resources.
ERP is much more than just a computer software. An ERP System includes ERP Software, Business Processes, Users and Hardware that run the ERP software. An ERP system is more than the sum of its parts or components. Those components interact together to achieve a common goal - streamline and improve organizations' business processes. Most important factor for ERP system is the users. Successful implementation of any ERP System more depends on intelligent users who are going to use them, because any standard ERP Software would consist hundreds of input information for any particular business activity. Thus good knowledge of each entity of system to the users is most important factor in ERP Software.
History of ERP
Enterprise Resource Planning (ERP) is the evolution of Manufacturing Requirements Planning (MRP) II in 1980s, which was mainly related to Manufacturing Industry and was designed to control manufacturing process and planning the required production with efficient output. Whereas MRP is the evolution of Inventory Management & Control conceived in 1960s, which was mainly designed for management of Stocks in any particular industry. ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes like production planning and scheduling of delivery. In terms of technology, ERP has evolved from legacy implementation to more flexible tiered client-server architecture.
Benefits of ERP
ERP software attempts to integrate business processes across departments into a single enterprise-wide information system. The major benefits of ERP are improved coordination across functional departments and increased efficiencies of doing business. The implementations of ERP systems help to facilitate day-to-day management as well. ERP software systems are originally and ambitiously designed to support resource planning portion of strategic planning. In reality, resource planning has been the weakest link in ERP practice due to the complexity of strategic planning and lack of adequate integration of ERP with Decision Support Systems (DSS). Famous ERP Software
Everyone from IT industry will know the word SAP. SAP is the most successful ERP Software. To name more here are some examples:
The following are the four components of an ERP System
1) ERP software
2) Business Processes that ERP software supports
3) Users of ERP systems and
4) Hardware and Operating Systems that run ERP applications.
Introduction to SAP R/3 system
Almost all the global 500 companies have implemented SAP and some of the small-medium enterprise (SME) has become the customer. ERP systems market is widespread mainly by SAP. SAP has...