Essay On ERP

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 object of this research paper is to describe the implementation challenges of an enterprise system, then to analyze the changes required in its implementation and discuss the advantages of ERP over legacy systems. Some of the informational background will be discussed in this paper regarding enterprise resource planning systems. This paper will construct some examples from my research findings to show why ERP has advantages over legacy systems. This paper will also not only provide strengths of having an enterprise system, but will show weaknesses as well. And to conclude, this paper will explain why and how enterprise systems will be of benefit for organizations and business with decision-making processes.

ERP systems are expected to provide many benefits, including improved business efficiency. However, they are also blamed for several business problems and

Successful implementation of an Enterprise Resource Planning (ERP) is not impossible in real life but for that it must be developed through a proper planning and implementation. ERP are designed to upgrading an organization’s ability to generate more timely and accurate information for its supply chain. Organization must be ready for reengineered before the success of productivity can be realised. Most of the companies have faced heavy problems while trying to implement ERP systems and have led to serious problems.

The success of any business lies in effective communication and proper data exchange within internal departments. Delayed in latest information is a remarkable obstacle in failure of any business. To overcome this problem, a proficient solution "ERP" came into existence. The vast tool, capable of integrating internal business processes of any organization, is so called termed as Enterprise Resource Planning. ERP is an approach of amalgamating the various departments of an enterprise such as Sales, HR, Finance, Marketing, Production, Warehouse, etc. The single source where internal departments can share and access information quickly is ERP. In actual, ERP is a wide centralized database where all the inter-departmental data is stored. It is capable of performing multiple operations in a single time and can be used by various enterprise units at the same time.

[2] To be able to identify and evaluate major advantages and disadvantages of ERP systems [3 Marks] - Advantages of ERP - Reducing raw material and inventory costs. Production costs and time can also be reduced. ERP can impact the organisation by forcing changes that will benefit the organisation. It could also be implemented as a stage for different other applications and also be able to evaluate the performance that ERP has on the company. [5,6,11] (Deutsch, C.H. 1998); (Main, J. 1990); (Schlack, M. 1992)

This cuts down on ordering costs and production costs since all the materials or products can be ordered or produced at one time. With an ERP system, the organization will need to have standard work processes as all users will need to learn to work within the confines required by the ERP system. Also by having standard work, new employees may not need the same amount of training as others who set up the process. Many ERP systems are designed to work with the many different currencies which will provide the corporation with more accurate financial reporting as the system will handle the calculations instead of it being done manually and increasing the chance of errors being made. (Barker, 2012)

Some businesses are apprehensive about the time and costs involved in implementing an ERP system. That’s understandable, as traditional ERP software can be inflexible and take a significant amount of resources to implement.

Enterprise resource planning (ERP) systems attempt to combine data and processes in organizations. The data is centralized as a single database. This database functions as a hub that stores, shares, and circulates data from within the different organizational units and business functions. ERP systems are one of the most adopted information technology (IT) solutions in organizations. Besides the possible cost savings, one of the main drivers for an ERP adoption would be the technical and operation integration of business functions to complement the information stream with the material flow of goods or services. In order for the management and employees to utilize the use of the competitive capabilities of ERP systems, they

ERP is all about the central collection of data for wide distribution. So instead of having several databases for separate departments with an endless inventory of disconnected spreadsheets ERP will bring together everything in order for all users from CEO to accounts payable clerks to create store and use same data derived through common processes.It has a certain level of security and centralized data repository so that everyone knows that the data is correct and complete. Data integrity is assured at a level from a quarterly financial statement to a single outstanding receivables report without deploying error.

In today’s world companies expanding market. This globalization is important factor in bringing suppliers, partners and customers together for supplying product globally. In this case study we will see how to implement an ERP system. This ERP implementation may be successful or unsuccessful but most of the times the reason behind failure will be due to bad management involved during implementation of ERP package. The management involved in implementation part should have proper management skills. In this case study we will examine key dimensions of implementing ERP system in an organization successfully. In this case study we will see about Rolls-Royce Company implementing an ERP package named SAP R/3 successfully. This case study paper deals with the issues involved in implementation of ERP and concentrates mainly on technical, cultural and business issues involved in implementation and also helps in evaluating project benefits.

Information systems play a vital role in improving the competitiveness of a company. There are many types of enterprise information software packages which are available in the market since the year of 90s till today (Mandal & Gunasekaran, 2003). Enterprise Resource Planning (ERP) is one of them. Due to intense competition around the world, many of the manufacturing company had decided to implement ERP. It assures one application, one database and is possible to unified interface across the entire organization. Many companies had not abstained from investing a large amount of money on ERP system, though the ERP implementation had high failure rate and well publicized (Ehie