Essay Preview: Erp
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DEFINITION
Enterprise Resource Planning (ERP) is the most recent high-end solution which information technology has provided to business application. ERP focuses on trying to join functions and departments throughout an organization. The ERP solutions try to integrate operation processes and information flows in the company, so as to combine the resources of an organization namely men, machine, money, and material through information. Companies use ERP in order to be integrated for greatest performance and effectiveness
Although the implementation of an ERP package was probable only for large Multinational Companies because of the high cost, it is expected that in the near future 60% of the companies will be implementing one of the ERP packages since this will be become a must for achieving competitive advantage.
HISTORY OF ERP SYSTEMS
The concept of Enterprise Resources Planning (ERP) was born in the early 1960s. Case manufacturer of tractors and partner of IBM was the inspiration of ERP. The focus of that inspiration was the design of a system software to intergrade all departments and functions in order to increase profits and strengthen the business. But the cost of that idea was enormous.
Later in 1972, five engineers in Germany, left their positions in IBM and start a company that later would make real the concept of ERP. The name of the company they created is SAP, todays one of the market leaders providing ERP system solution software.
After SAP many companies follow the dream of ERP. Today ERP software market is estimated to have a growth rate of 37% over the next five years. ERP market was growing rapidly over the past years and as we see it still grows dramatically fast. The technical and the design part are changing but the concept has not, because what we know technically today maybe not be the aspect of tomorrow. The ERP dream will never change.
THE VALUE OF AN ERP SYSTEM
The value of an ERP system, when it is properly applied, is not only sharing information between multiple areas such as finance and accounting. It is the driving power of proper resource exploitation and productivity measures. ERP systems match inventory data with financial statements, sales, and human resourced data, allowing organizations to produce financial statements, charge their products and manage the resources of people, materials and money. However, ERP systems have disadvantages also. They need huge storage; they require networks as well as training overheads.
FEATURES OF ERP SYSTEMS
ERP systems have many features:
– They smooth the progress of the business- they are wide Integrated Information
Systems, which wrap up all functional areas like Manufacturing, Account
Receivable area, Inventory, Human Resources etc.
– ERP systems let automatic introduction of most recent technologies like Electronic
Fund Transfer (EFT), Electronic Data Interchange (EDI), Internet, Intranet, Video
Conferencing, E-Commerce etc.
– They reduce most of the problems that businesses have like Material Shortages,
Productivity enhancements, Customer Service, Inventory problems, Prompt
delivery, Quality problems, etc.
– They offer business intelligence tools like Decision Support Systems(DDS),
Executive Information System (EIS) and data mining, which help people, make
better decisions so as to advance their business advancement.
– ERP systems offer full combination of Systems not only between the departments
in a company but also across the companies under the same administration.
– ERP systems execute center Corporate activities and enhance customer service
and thereby adding to the Corporate Image.
– ERP is the only way to improve Project Management.
– They bridge the space between information and the organization.
These are generally the features than an ERP can provide to an organization. However, there are also some features that an ERP system can provide to the user and these are:
Graphical User Interface
Fully integrated into Windows 95/98/2000/xp and very easy to learn
Full screen operation: If the user wants to change the data inputted he/she can do
it by clicking desire items with the mouse and then reenter data.
Infinite Scroll Bar and Multiple-Tap, it puts information of complicated
structure together onto a single screen for better investigation and management purposes.
Client Server
The ERP system uses the Operation of Client Server Structure
The database, index files and data base search engine are located in a server.
The server will select the data in relation to the instructions received and will send the data back to the workstation.
Workstation then processes and shows to the screen the data received.
Image Handling
The system can insert an image into any part of a document, therefore improve the correctness of document communication.
Images of products can be imported with scanner or digital camera.
Data List
Users can give specification on all data stored in the system to retrieve desired data.
Direct Manipulation
In order to satisfy the companys needs, users can fix the products master file and production order completely according to the characteristics of a product.
Multi-level