Information technology has transformed the way we live and the way we do business. ERP, or Enterprise Resource Planning, is one of the most widely implemented enterprise software systems across a wide variety of industries and organizations. In this short article, we will try to concisely explain the basic but important concepts related to ERP.
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Information technologies have transformed the way we live and the way we do business. ERP, or Enterprise Resource Planning, is one of the most widely implemented enterprise software systems across a wide variety of industries and organizations. In this short article, we will try to concisely explain the basic but important concepts related to ERP.
What is ERP ERP stands for Enterprise Resource Planning.The ERP definition refers to ERP strategies and business strategies that implement ERP Systems.erp Implementation uses various ERP software applications to improve organizations for 1) Resource Planning, 2) Management Control and 3)An ERP system is more than the sum of its parts or components. These components interact with each other to achieve a common goal, to simplify and improve the business processes of organizations.
History of ERP Enterprise Resource Planning (ERP) is the evolution of Manufacturing Requirements Planning (MRP) II in the 1980s, while MRP is the evolution of Management and inventory control designed in the 1960s. ERP has extended from the coordination of production processes to the integration of back-end processes at the enterprise level. In terms of technology, ERP has moved from a legacy implementation to a more flexible tiered client-server architecture.
Advantages of ERP ERP software attempts to integrate the business processes of all departments into a single business information system. The main benefits of ERP are better coordination between functional departments and greater efficiency in conducting business.The implementation of ERP systems also facilitates day-to-day management. ERP software systems are originally and ambitiously designed to support the resource planning part of strategic planning. In fact, resource planning has been the weakest link in ERP practice due to the complexity of strategic planning and the lack of proper ERP integration with decision support systems (DSS).
ERP Errors We couldn’t end our little ERP guide without mentioning ERP errors. Multi-million dollar ERP project failures are reported from time to time, even after 20 years of ERP implementation. We have identified the four components of an ERP system 1) ERP software, 2) Business processes supported by the ERP software, 3) Users of the ERP system and 4) Hardware and operating systems running ERP applications.Failures in one or more of these four components can cause an ERP project to fail.