Friday, March 21, 2008

An Introduction to ERP

Information technology has transformed the way we live and live in our way of doing the business. Since the last decade, I.T. He drastic a change in our lives. Compared to the earlier stage, when computer was used only as a machine, users today have become smarter and IT literate. Now, the user knows that a computer can do more things instead of just typing a letter in a word processing software or make balance sheets in Excel. They expect more things out of your PC. During this phase of the industry, each of us must have heard the word ERP in one form or another. It may be the title of any magazine or IT can be a point of discussion in any IT Seminar or can be in an ad of the general IT Company. Thus, in any form, we all have been through this word. In this short article, I will try to explain the basis concise yet important concepts relevant to ERP.
What is ERP?
ERP is one of the most widely implemented enterprise software systems for a variety of industries and organizations. ERP is the acronym of Enterprise Resource Planning. ERP is not just a software. ERP definition refers to both; ERP software and business strategies that implement ERP systems.
ERP ERP implementation uses several software applications to improve the performance of organizations for
1) planning of resources,
2) management control and
3) software operating control.
ERP consists of several software modules What integrate activities across functional departments - planning of production, procurement of parts, inventory control and distribution in order tracking. Most ERP software systems include application modules to support common business activities such as finance, accounting and human resources.
ERP Systems
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. These components interact together to achieve a common goal - streamline and improve organizations of business processes. More important factor is the ERP system for users. The successful implementation of any ERP system depends more intelligent users who will use them, because any standard ERP Software consist of hundreds of entry information for any particular business. Thus, a good knowledge of each entity of the system to users is the most important factor in ERP Software.
History of ERP
Enterprise Resource Planning (ERP) is the evolution of Manufacturing Requirements Planning (MRP) II in 1980, which was mainly related the manufacturing industry and was designed to control the manufacturing process and planning with the necessary efficient production output. Where as MRP is the evolution of Inventory Management & Control conceived in 1960, which was mainly designed for management of stocks in a particular industry. ERP rose from coordination of manufacturing processes for the integration of enterprises at backend processes such as production planning and scheduling delivery. In terms of technology, ERP evolved legacy of the application more flexible tiered client-server architecture.
Benefits of ERP
ERP software attempts to integrate business processes across departments ionto a single enterprise-wide information system. The main advantages of ERP is better coordination across functional departments and increased the efficiency of doing business. The implementations of ERP systems help facilitate day-to-day, but also of management. ERP systems are originally designed to support ambitiously and planning of resources in the strategic planning. Indeed, planning for resources has been the weakest link in ERP practice due to the complexity of strategic planning and lack of integration of ERP with Decision Support Systems (DSS).
Famous ERP Software
No an industry of IT will be unknown to SAP word. SAP is the most successful ERP Software. For more name here are some examples:
PeopleSoft www.peoplesoft.com
SysPro www.syspro.com
ORION Enterprise www.3i-infotech.com
Matrix www.matrixinfosystems.com
(In the past, we have implemented Matrix ERP solution for one of our customers)
ERP not Failures
I was able to conclude my brief guide to ERP without mentioning ERP failures. The failures of Crore rupees ERP projects are reported once in a while, even after many years of ERP implementation.
There are four components of a system-
1 ERP) software ERP,
2) Business Processes that ERP software supports,
3) the users of ERP systems, And
4) Hardware and Operating Systems that run ERP applications.
The failures of one or more of those four components could cause the failure of an ERP project. Discussions on each of the four issues require new rule, so they can come up with the same in my next article.
Author: Why Premal Vala Premal Vala is working as a Project Leader for Semaphore Infotech Pvt. Ltd, a famous IT company based in Ahmedabad, India. He has about 10 years experience in the field of Information Technology. Work on ERP is your main area of interest. In addition, he is also fond of video recording and film editing / mixing of Audio / Video. You can contact in the e-mail: premal@semaphore-software.com. argentina junko



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