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Enterprise Resource Planning

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Typical Business Employes Assets .

What is ERP Enterprise resource planning (ERP) integrates internal and external management information across an entire organization manage the connections to outside stakeholders .

Characteristics  Serves 
 s 
 
ross‐functional
enterprise 
 ackbone a ac b that 
 integrates 
 
 utomates
many 
 &a internal 
 usiness
 b processes 
 nd 
 a information 
ystems
 s Operates in real time Common database Has data from various business functions such as Finance and Accounting. Customer Relationship Management. Human Resources. Supply Chain Management. Manufacturing. etc. Management of user privileges for various processes     .

By the mid–1990s ERP systems addressed all core functions of an enterprise. . reflecting the evolution of application integration with accounting. Beyond corporations. maintenance and human resources. ERP came to represent a larger whole. governments and non–profit organizations also began to employ ERP systems.Origin of ERP    In 1990 Gartner Group first employed the acronym ERP as an extension of material requirements planning (MRP). later manufacturing resource planning (MRP II) and computer-integrated manufacturing.

It describes web– based software that allows both employees and partners (such as suppliers and customers) real–time access to the systems.Expansion  Rapid growth in the 1990s because of the year 2000 problem and introduction of the Euro disrupted legacy systems.   . when the Internet simplified communicating with external parties "ERP II" was coined in the early 2000s. CRM. Supplier relationship management (SRM) became integrated later.

Components          Transactional database Management portal/dashboard Business intelligence system Customizable reporting External access via technology such as web services Search Document management Messaging/chat/wiki Workflow management .

Advantages      Integration saves time and expense Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization No need to synchronize changes between multiple systems Make real–time information available to management anywhere. any time to make proper decisions They protect sensitive data by consolidating multiple security systems into a single structure  .

Overcoming resistance to sharing sensitive information between departments can divert management attention.Disadvantages  ERP can cost more than less integrated and/or less comprehensive solutions.     Extensive training requirements . High switching costs increase vendor negotiating power vis-a-vis support. Integration of truly independent businesses can create unnecessary dependencies. maintenance and upgrade expenses.

Some Leading ERP Vendors/products .

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