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Enterprise Resource

Planning

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Typical Business

Employes

Assets

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What is ERP

Enterprise resource planning (ERP)

integrates internal and external management informationacross an entire organization

manage the connections to outside stakeholders

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Characteristics

Serves as a crossfunctionalenterprise backbonethat integrates &automatesmany internal businessprocesses and information systems

Operates in real time

Common database

Has data from various business functions such as Finance

and Accounting, Human Resources, Manufacturing, SupplyChain Management, Customer Relationship Management,etc.

Management of user privileges for various processes

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Origin of ERP

In 1990 Gartner Group first employed the acronym ERP asan extension of material requirements planning (MRP),later manufacturing resource planning (MRP II) andcomputer-integrated manufacturing.

ERP came to represent a larger whole, reflecting the

evolution of application integration with accounting,maintenance and human resources.

By the mid1990s ERP systems addressed all corefunctions of an enterprise. Beyond corporations,governments and nonprofit organizations also began to

employ ERP systems.

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Expansion

Rapid growth in the 1990s because of the year 2000problem and introduction of the Euro disrupted legacysystems.

CRM, Supplier relationship management (SRM) becameintegrated later, when the Internet simplifiedcommunicating with external parties

"ERP II" was coined in the early 2000s. It describes web

based software that allows both employees and partners(such as suppliers and customers) realtime access to thesystems.

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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

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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 realtime information available to management

anywhere, any time to make proper decisions

They protect sensitive data by consolidating multiplesecurity systems into a single structure

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Disadvantages

ERP can cost more than less integrated and/or lesscomprehensive solutions.

High switching costs increase vendor negotiating powervis-a-vis support, maintenance and upgrade expenses.

Overcoming resistance to sharing sensitive informationbetween departments can divert management attention.

Integration of truly independent businesses can createunnecessary dependencies.

Extensive training requirements

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Some Leading ERP Vendors/products

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Thank You