ERP points Essay

Submitted By mosalirc
Words: 1302
Pages: 6

1. To create tight supply chains that provide the right products and services at exactly and in time, to know what customers want and when they need the products, ERP implemented.

2. An ERP is a collection of integrated software for business management, accounting, finance, human resources management, project management, inventory management, services and maintenance, transportation, e-business and SRM, CRM and e-collaboration.

3. The central notation behind an ERP system is that it includes all technology systems and software in organization.

4. ERP systems are big business; the U.S. federal government spent about $7.7 billion on ERP products and services in 2009.

5. More than 60 percent of the organizations have installed in the process of implementing ERP systems to support business activities.

6. ERP vendors has specialty like SAP in logistics, oracle/people soft in financials, Infor in manufacturing and Microsoft (Great Plains) in retail management.

7. Microsoft dynamics ERP software gives small, mid-sized or enterprise the tools to manage the entire organization, from supply chain, procurement, human resource, financials and collaborative projects.

8. The six categories of ERP systems are implementation, optimization of ERP, management through ERP, the ERP software, ERP supply chain management and case studies.

9. Evolution of ERP systems closely followed the spectacular developments in the field of computer hardware and software systems. During 1960s, most organizations designed, developed and implemented centralized computing systems, mostly automating their inventory control systems using inventory control packages (IC). These were legacy systems based on programming languages such as COBOL, ALGOL and FORTRAN.

10. About MRP and MRPII

11. During the 1990s ERP vendors added more modules and functions as “add-ons” to the core modules giving birth to the extended ERPs. These extensions include advanced planning and scheduling, e-business solutions such as CRM and SCM.

12. An ERP system expected to improve both backbone and front end functions. Organizations choose and deploy systems for many tangible and strategic reasons. The ROI is weighted against the many intangible and strategic benefits

13. The estimated spending on ERP systems in 1998 was about US $17 billion following annual growth rates ranging from 30% to 50%. The worldwide license and maintenance revenue for ERP systems was US $21.5 billion in 2000, which is represented a growth of 13.1% from the 1999 market value of US $19 billion (Broatch, 2001).

Advantages :
Reliable information access: common DBMS, consistent and accurate data, improved reports.
Avoid data and operations redundancy: modules access same data from the central database, avoids multiple data input and update operations.
Delivery and cycle time reductions, cost reductions, easy adaptability, improved scalability, maintenance, global outreach, e-commerce, e-business.


Time consuming: we can overcome by minimize sensitive issues, internal politics and rise consensus.

Expensive: cost may vary in millions. Business process reengineering cost may be extremely high.

Conformity of the modules: to overcome this issue the architecture and components of the selected system should conform and strategic goals of the organization.

Vendor dependence: single vs multiple vendors consideration, options for best of breeds, long term committed support.

Features and complexity: ERP has may features and modules so the user needs to consider carefully and implement the needful only.

Scalability and global outreach: look for vendor investment in R&D. long-term commitment to product and services, consider internet-enabled systems.

Extended ERP capability: consider middle-ware “add-on” facilities and extended modules such as ERM and SCM.

The wheels of a cloud based ERP systems have stated turning and it is expected that by the year 2015 global expenditure on cloud based ERP