Rationale Of An Enterprise Resource Planning Essay

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.

Making decision of what to select between “best of breed” and Enterprise Resource Planning (ERP) systems are never easy. There are many controversy or chaos issues surrounds this thought and debate. Which one is better? What factors need to be considered? This paper will address the difference between “best of breed” and ERP System that needs to be considered, such as the definition, advantages and disadvantages each of them.

Deploying an ERP system can help transform different aspects of business processes and cope with the challenges of growth. By reducing inconsistencies in administration, streamlining processes, ERP systems enable staff to concentrate on the core tasks. By enabling and equipping employees with business tools, ERP systems enable the firms to make a greater contribution to the efficiency and profitability of the organization. Implementing an ERP system carries significant risk. A firm wide deployment represents a major investment in time, effort and capital. The cost of a complete ERP system may be beyond the means of a growing business. Although one can deploy individual modules for different departments as funds are available, one would not reap the full benefits of a firms-wide system for some time. Deployment also can lead to disruption as employees go through a learning and readjustment process of

An ERP is basically integrated business management software that helps assist companies store, manage and interpret data from all the different departments in the business.

This report is the analysis and commendation of Pete’s business and how and where ERP system can be implemented to reduce the business complications. The company with 113 outlets and multiple sales channels, supplies both homegrown and off-the-shelf system to its customers. With 1,500 grocery stores, corporate offices, a website, and delivery trucks, the company was able to increase its revenue by 23% over a year which is remarkable. However, the outdated system which used to handle core business functions such as financial, order management, inventory management, fulfillment procurement and manufacturing was unable to cope with the ever growing business demand, which in result was effecting both the sales 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.

In this regard, (Hunton et al 2002) state that the ERP implementation enhances value to organizations. In the same line, (Poston and Garbksi 2000) explored a number of organizations implementing the ERP systems where as a result they found a decrease in employees’ ratio and cost of goods transferred in revenues.

[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)

There are two basic types of ERP research, implementation-oriented and performance-oriented. The first type studies what factors foster success in implementing ERP, while the second investigates factors in ERP that affect performance. Research has shown that companies that use ERP outperform those that do not in functional efficiency, productivity, stock market, and financial metrics. Interestingly, ERP is found to have a neutral or negative effect on customer satisfaction and operating expenses. More predictably, general performance dips

Information technologies are becoming an inseparable part of today’s business world.ERP systems is one such example as they have become an important instrument without which the majority of enterprises could no longer function(Pabedinskait,2010).Successfully implemented ERP systems generate organisational synergy, which provides a motivation for the improvement of particularly efficient processes necessary for the success of an organisation. ERP implementation systems have become more popular within the last 15 years. They are now a common way of implementing organisational changes today. Organisations that successfully employ ERP systems, such as software and industry processes have enormous benefits such as greater efficiency. Companies that have succeeded in their respective ERP implementation include Cisco, Tektronix and Harley Davidson Motor Company.

ERP can be a difficult task, it takes more than months to setup and it costs more than software and hardware, but if everything is prepared with proper resources than implementation of ERP system can be completed with in budget in a proper or required time frame

ERP is an abbreviation of the word Enterprise Resource Planning; this is a software designed to offer assistance in business management. It a collection of integrated applications used by a company to collect, manage, store, and interpret business data sourced from different business activities carried out by our company. These business activities include data collected from service delivery or product planning. This software is designed to allow flexibility that helps in quick decision making and business management. ERP systems are integrated software packages, meaning they are built to cover all functions in a business setup (Gefen & Ragowsky, 2005).

Implementation of an enterprise resource planning (ERP) system is a complex undertaking that requires meticulous planning and forward vision to see risks and making amends to mitigate these risks. The Hershey Chocolate Company (Hershey) had previously used a legacy system to manage its logistics and daily operations. However, due to the system’s anticipated date related software issues with the coming Y2K, the company felt that it was time for a new enterprise resource system. This paper will examine the Hershey Chocolate Company, its journey to the new ERP implementation, determine the root causes for its implementation failure, and provide lessons learned based on their experience.

There are many different types of software that can help an organization communicate data back and forth through their various departments. One certain system that does this is the Enterprise Resource Planning System, also known as ERP. Enterprise Resource Planning Systems integrate business management along with technology. There are many parts of an ERP system, including Manufacturing, Finance, Human Resources, and many more. The system has saved organizations time and money in various ways. Although ERP Systems have helped businesses in integrating various data information between organizations, there are a number of disadvantages that individuals working with the system should be aware of.