Erp Systems : An Abbreviation Of The Word Enterprise Resource Planning

Today Enterprise Resource Planning (ERP) is extensively adopted by many organizations regardless of kind and size, mainly because it provides enterprise-wide view of information across all their business operations and help organizations achieve consistency across all their functional departments. The potential benefits of ERP system implementation include improved coordination across functional areas, increased efficiency, reduced operational costs, rapid access to information for decision making, managerial control and support for strategic planning.

Adoption of an ERP system enables an organization to eliminate dozens or even hundreds of separate systems and replace them with a single, integrated set of applications for the entire enterprise.

ERP systems are designed for better longevity and claim to offer numerous options representing best practices. These attributes make an ERP system implementation very desirable but, at the same time, complex and expensive. Unfortunately many large companies rush into ERP system implementation projects, because of competitive pressures (Teltumbde, 2000). Cisco's

Enterprise resource planning enables firms to replace different departmental information systems and database silos with systems that collectively work as a single cross functional database. ERP systems are available for every key business function such as order processing, production control, HR, warehouse, marketing, finance and much more. By having a common technology and database platform throughout the firm, systems and processes from various departments can be integrated that achieve superiority in terms of enhanced cost, operational and productivity benefits. Implementing an ERP system requires careful planning to achieve the targeted benefits and minimize the risk of project failure.

The ERP market is the biggest and full-grown enterprise application segment in the IT sector. The ERP Technology offered organizations with a framework for evaluating the development of their ERP technology. The ERP managers and IT leaders both are responsible for ERP should use the intelligent framework to authorize and modernize their ERP platform technology strategies. The Cloud computing is the key change agents that motivating the demand for new platforms and strategies. “The IT Market Clock for ERP Technology demonstrates the market maturity and commoditization levels for multiple generations of ERP platform technology” (Gartner 's IT Market Clock, 2014).

Enterprise resource planning is a term derived from material resource planning. ERP systems typically handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, and accounting for a company. Enterprise Resource Planning or ERP software can aid in the contro of many business activities, like sales, delivery, billing, production, inventory management, and human resources management.

Enterprise resource planning is a balanced software solution which is used to manage a company’s resources. It includes various modules for the numerous departments in a company. These include HR, Marketing, Sales and Distribution, Material Management, Production Planning and Finance and Controlling. The ERP system provides transaction codes which perform predefined operations on the entered data set. A large number of different operations can be executed using the ERP transaction codes. Thus, this saves time spent in calculations and assimilation of data.

ERP system is a packaged business software system which allows an organization to automate and integrate its business processes and share common data and practices across the entire organization. ERP systems will give several intangible benefits to the companies like it will give improved information and processes, internal integration and provide high level of customer service. Cost effectiveness, high productivity and through ERP system firm can gain high profits are some of the tangible benefits. Therefore many organizations are trying to implement ERP systems for their business. Organizations assigned significant amount of organizational resources for the implementation projects but they had to face for an unexpected challenges. ERP implementation

Various cloud ERPs available in the market were analyzed and compared with on-premise ERP system.

Enterprise Resource Planning (ERP) system, as a software package or one integrated system, is designed to standardize the collection of organizational data resources and to permit these resources can be shared throughout the company, which finally support the management of companies (Klaus et al., 2000; Mabert et al., 2003; Wang et al., 2008; Ifinedo, P., 2011). Since this kind of systems allows inputting and outputting information and the information could be shared across the whole organization in time, companies all over the world are now utilizing the ERP systems to improve operational efficiency (Davenport, 1998; Klaus et al., 2000).

The most common ERP deployment used is either on-premises or cloud-based, which is a standard huge system from one vendor, generally a large legacy vendor. Though there are many organisations now that run multiple ERP systems under one environment, generally known as the two-tier or multi-tier ERP. The reason behind is that it includes geographic variances in the organisation. (SearchERP, 2017)

With the growth and evolution of technology over the past few years, cloud computing has become one of the most rapidly developing and popular area of distributed systems. This has garnered a lot media attention and hype about the potential of cloud technologies. Cloud Computing is essentially a structure for enabling access to a shared pool of configurable computing resources that can be swiftly provisioned and released, to a user at his convenience, on demand ,with minimal management effort or service provider interaction. ERP systems have integrated this by deploying many essential features, service models, deployment models through cloud computing for providing solutions to their customers. The purpose of this research report

The current world is faced with stiff technological advancement and so does the business world. Information and technology must be fully integrated and utilized in order to achieve goals and objectives in any business. Research has shown that companies that have integrated their processes in their businesses have experienced more success in terms of efficiencies in operations(Adam & O’Doherty, 2000). It is important that information and data is efficiently shared between the business organization, customers and suppliers who might be geographically dispersed. Enterprise Resource Planning is a dream comes true for most companies since it helps in integration of all business units.

This paper presents the evolution of the ERP system since time and how firms have been employing it for generating revenues and providing better solutions to customers .It describes the stages of ERP implementations, the obstacles that firms encountered in generating benefits from the system, advantages, limitations and some critical success factors associated with it and points to be noted during the implementation of ERP system.

Communicating between departments is extremely important for many businesses regardless if they are small startup or a fortune 500 company. Different forms of Software are key to this communication. A very specific system that has proven to do this the best is Enterprise Resource Planning, also known as ERP. Enterprise Resource Planning Systems integrate business management along with technology. There are many different areas and functions of an ERP system that include; Manufacturing, Finance, Human Resources, Accounts Payable, and Accounts Receivable. ERP systems have been known to save organizations time and money in many different ways. Although ERP systems have helped businesses integrate their multiple systems into one system there are also many disadvantages of ERP systems that businesses must be known before purchasing.