Scribd
Upload
14 views

Wht is ERP

Enterprise Resource Planning (ERP) is a business software system that integrates data and processes across an organization to enhance resource management and operational efficiency. ERP systems have evolved from MRP systems in the 1970s to multi-module applications that support various business functions, such as finance, human resources, and manufacturing. While ERP offers advantages like real-time information and improved productivity, it also presents challenges, including high costs and the need for extensive training.

Uploaded by

Harshini Akilandan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
14 views

Wht is ERP

Enterprise Resource Planning (ERP) is a business software system that integrates data and processes across an organization to enhance resource management and operational efficiency. ERP systems have evolved from MRP systems in the 1970s to multi-module applications that support various business functions, such as finance, human resources, and manufacturing. While ERP offers advantages like real-time information and improved productivity, it also presents challenges, including high costs and the need for extensive training.

Uploaded by

Harshini Akilandan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 7

What is an ERP – Enterprise Resource

Planning
An ERP stands for Enterprise Resource Planning; it is a business software system
that support entire business or enterprise throughout the project life cycle in
organizing, planning, maintaining, tracking and utilization of resources (Man,
Machine, Material and Money) effectively.
Let discuss briefly about what is ERP software and how it helps in business
achievements.

1. History of ERP systems


2. Why do we need ERP software
3. ERP Advantages and Disadvantages
4. Common ERP modules
5. Why ERP
6. Top ERP Vendors List
7. ERP Software Packages
8.
What is ERP – Enterprise Resource Planning

ERP stands for Enterprise Resource Planning. It is a gateway to integrate


the data and processes of an entire organization into single system with
all modules that supports the core business areas.

 ERP systems cover all basic functions of an organization


 Enterprise Resource Planning is developing into a Multi-Module
Application Software Package that enables business processes across
the supply chain management.
 Allows integrating all the operational units such as financing, human
resources, manufacturing, sales, marketing, finance &
accounting, procurement, inventory management and so on.
 ERP software system allows the business to achieve real time
business process, increase productivity, improves delivery, reduce
cost and increase profits, increase product quality, improve
information and performance management.

In Simple terms, we can explain an ERP as: –


ERP is a business suite with number of applications that are integrated
together between system and assist an organization in collecting,
managing and reporting information on real time throughout the
business process.
History of ERP Systems

ERP System have took years to emerge and is still evolving. These systems are
transformation and ever-changing.

In 1970’s manufacturing chain was the center of business operations. This led to
the development of MRP systems.

The second phase of ERP development occurred in 1980’s which focused more on
quality measures which led to the evolution of MRP II Systems.

In the 1990’s, Enterprise Resource Planning started using multi-module


application to increase organizations process. ERP Systems integrates with all the
modules of organization’s business modules and this led to the evolution of ERP
System.
Why do we need ERP Software

ERP is an integrated systems of different business process for


e.g. if a company has different departments like sales
department, production department, material management,
finance department, etc, so in ERP we have an integration of all
the departments and they all use common database.

We can have standardization of systems across locations. For e.g.


for MNC companies can have different plants in different
locations with standard systems.

ERP systems helps to have a better controlling over the different


process.
An ERP is an integrated systems, it helps to provide the better
reporting.
ERP Software components

The important and major components of ERP systems are


manufacturing, SCM, Financial Accounting management, Human
resources management and Customer relationship management.
ERP Advantages and Disadvantages

Advantages of Implementation of an ERP system :

Reduced redundancy in entering data

ERP system provides the real time information all needs of


the organization in a single system.

It Allow everyone to access same source and share same source of


information

It allow to access, update instantly and saves lot of time.

Integration among different functional areas to ensure proper


communication, productivity and efficiency

The Accounting for all of these tasks, tracking the Revenue, Cost and
Profit on a granular level.

Allow standardization of business processes and enterprise’s information.


It is a single source of systems that can be use through out the
organization.

ERP software enables real time information availability,


reduction in inventory and cycle times.

The benefits of ERP systems are: customer satisfaction, better information,


productivity, increased quality and decreases in time to market, product cost,
delivery time, inventory levels.
Disadvantages of ERP Systems:-

The disadvantages of ERP systems are as follows :-

Takes a lot of effort and time and requires a lot of training

Customization of the ERP software is limited, you may not allowed to design
application as per business requirements.

ERP systems can be very expensive to install.

ERP Systems centralize the data in one place and this can increase the risk of loss
of sensitive information in the event of a security violation.

The usage of ERP system can be difficult for users, so appropriate training is to
required to use the ERP software.

Read more for ERP Advantages and Disadvantages


Common ERP Software Modules

Sales Order (SO)

Purchase Order (PO)

Finance and Accounting

Manufacturing Resource Planning

Customer relationship management (CRM)

Human Resources

Procurement

Marketing
The important modules in ERP SAP Systems are as follows-

Manufacturing – A manufacturing company could use an ERP system to track and


manage virtually every operation in the organization. Requests for Proposal (RFP)
and corresponding quotes can be entered and assigned to any large database of
customers. Quotes can be changed to Sales orders upon receipt of purchase orders,
with line items and corresponding prices that represent goods to be delivered to a
customer.
Why ERP

It is a single application integrated software program.

It is a single database systems.

ERP systems allows to share the information and communicated more


effectively.

It automates customer orders, order fulfilment, billing, shipping and


tracking and so on.

The different between before ERP and After ERP system shows, why ERP
software is important to implement for any business.
Before ERP

After ERP

Top ERP Vendors list


ERP Vendors are classifies based upon clients they service. We have three types of
ERP vendors they are Tier I, Tier II, Tier III. Here we are going to list top ERP
Vendors in the following sectors.

1. Manufacturing and Distribution Industry.


2. Transport, Communication, Energy and Sanitary service.
3. Service Sector and finally
4. Retail Sector.
Top ERP vendors in Manufacturing and Distribution Industry.

SAP OracleMicrosoftInforEpicorIFSLawsonOthers

Market
Share 28%15% 12% 7% 5% 2% 2% 29%

TOP ERP vendors in Transport, Communication, Energy and Sanitary service.

SAP Oracl MicrosoftInforEpicorIFSQADOthers


e

Market
Share 35%23% 15% 4% 2% 1% 1% 19%

Top ERP Vendors in Service Sector.

Microsof Epico lawso


SAP Oraclet Inforr Netsuiten Others

Market
Share 30%21% 15% 2% 3% 2% 2% 25%

Top ERP vendors in Retail Sector.


SAP OracleMicrosoftInforQADSAGElawsonOthers

Market
Share 31%22% 22% 2% 2% 2% 2% 17%

ERP Software Packages


 Baan by Baan corporation.
 Peoplesoft from oracle corporation
 Oracle Application
 JD Edwards from oracle
 Navigen
 SAP from SAP AG (With total 65% market share).

You might also like